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HomeMy WebLinkAbout1980-04-14 City Council Summary MinutesCITY COUNCIL MINUTES ITEM Minutes of March 24, 1980 Regularl ting April 14, 1980 Oral Communications 1. Robert Johnson, Palo Alto Coop Stores 2. Harvard' Morehead, 323 Curtner 3. Or. Nancy Jewell Cross Consent Calendar Items Ordinance Approving and Adopting Plan for Construction of New Railings at Byxbee Park Sale of Surplus Property Barron Creek at Park Boulevard - Charles Wunder, et ux Rincor .da Pool Renovation - Award of Construction Contract - H. P. Hansen & Sons Crescent Park I Underground Conversion Award of Contract for Substructure - Power -Anderson, Inc. Cogeneration Feasibility Study Agreement - City of Palo Alto and CM2M Hill Resolution Expressing Sympathy - To the Family of Kijl Angus Foss Resolution of Appreciation - Louis 8. 0n Downtown Parkin Management Plan - California Energy Commission Grant and Budget Amendment Ordinance Rental Housing Ordinance Golf Course Coffee Shop Rent Control Initiative - Request of Cancilemeaber Roue) Re Pro position tit1#4 IO Liquor License Regulations (A8 1960) - Request of Councilmesber Fletcher Conversion of Surplus School Buildings to mortal Mousing - Request of Cos ncilaer Bar & Vice Mayor Sher Human Relations Commission Interview's of Applicants Adjournment to Executive Session Final Adjournment a -K.t ok • • w A i w OS •• CITY OF PALO ALTO PAGE 556 556 5 5 6 556 5 5 •7 557 557 557 557 558 558 558 S r 9 5 6 1 569 570 570 571 571 . 571 _ _..._ .. 4/14/80-- 5 5 5 Regular Meeting April 14, 1980 The City Council of the City of Palo Alto met on this date in a regular meeting in the Councilchamber at 250 Hamilton Avenue at 7:40 p.m., Mayor Henderson presiding. PRESENT: Brenner, Fyerly, Fletcher, Henderson, Levy, Renzel, Sher, Witherspoon ABSENT: Fazzino MINUTES OF MARCH 24 1980 Councilor Renzel asked that on page 513, the correction for the minutes of February 19, 1980, page 455 (sixth paragraph) read instead: "...she thought any density bonus should be connected to affordable housing.': Councilmember Renzel asked that on page 514, the minutes of March 3, 1980, 7th paragraph, line 12, the typographical error "comp" be corrected to read "dump," and the typographical error on line 20, the word "neutral" be corrected to "natural," Councjlmernber Renzel asked that the sixth paragraph on page 517 read instead: "Councilmember- Renzel said she was pleased to see actual below- maret-rate (8MR) units in this project. She expressed concern however about the poor design that results when multi -family housing is built to mimic single-family. She also opposed the narrow private street. Therefore, she would vote °no" on the matter." Councilrember Renzel asked that the motion related to 2955 Cowper Avenue be corrected to read: "MOTION: Councilrre ber Renzel moved, seconded by Levy, that Council approve the Planning Commission recommendation (by a vote of 5-0-1, Commissioner Gordon abstaining) including the condition that no variance be granted, for the appo cation of Gary Cockrell, for approval of a preliminary parcel map for property located at 2955 Cowper. The motion passed on a unanimous vote, Mayor Henderson and Council ber Witherspoon absent." Councilmember Renzel asked that on page 528 the following sentence be added to the third paragraph: "Mr. Hanna said the residential association is responsible for the ref." Councilmember Brenner asked that on page 518, paragraph 8, fourth line, that the sentence read, 'She asked staff to check that Council could revise the z i; 3+_ ordinance, .. if =Id MOTION: Counc i lr Fletcher: moved, seconded by Levy, that - _the minutes of March 24, 1980, be approved i corrected. The motion passed on a unanimous vote, Camncitmember Fazzino absent. ORAL COMM ICAT1# 1. Robert Johnson, represeting Palo Alto Coop stores, received a resolution issued by the City of Palo Alto in recognition of Coop's having been in business for 45 years. 2. Harvard Morehead, 323 Curtner, spoke on the Transit Informa- tion Center, listing route changes and additions, along with various locations at which a table old be set up to dissmsinate information to the general public on trash#it alternatives. 556 4 V14/88 3. Dr. Nancy Jewell Cross, 1902 Palo Alto Way, Committee for Safe and Sensible Sari Francisqulto Creek Area Routing, submitted a letter to the City Council regarding Dumbarton Bridge corridor and the problems of air pollution. She urged support of an Energy Independence Day Resolution and submitted a copy for Council's consideration. She noted that she also had a petition asking for specific routings relative to the Dumbarton Corridor. Vice Mayor Sher questioned who the petition was directed toward. He asked if those operating the Dumbarton Bridge would receive a copy. Dr. Cross replied that the petition would be directed to all those who have a say in the Dumbarton Corridor matter. CONSENT CALENDAR BAYLANDS INTERPRETIVE CENTER BOARDWALK :0) Staff recommends that Council approve the Park Improvement ordinance for first reading, for modifications to the Baylands Interpretive Center boardwalk, ORDINANCE OF, THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING A PLAN FOR THE CONSTRUCTION OF NEW RAILINGS ON THE BOARDWALK AND TWO OVERLOOKS WITH BENCHES IN BYXBEE PARK SALE OF SURPLUS PROPERTY WROMETR7T7M77EMEsno This City -owned parcel of 1000 square feet 4 cannot be developed. The estimated market value is $2100, The Wunders who own the adjacent property have expressed interest in owning it. Staff recommends that Council authorize the mayor to execute a quitclaim deed in consideration for the $2100 already received from the adjacent owner. RINCOi4ADA POOL RENOVATION `' RACT (CMR: 214 : 0) Staff recommends that Council award the bid and authorize the Mayor to execute a construction contract with H. P. Hansen and Sons for $37,425 for Rtnconada Pool renovation, chemical feed and control, CONTRACT: H. P. Hansen & Sons CRESCENT PARK I UNDERGROUND CONVERSION spy eays` e►n i.i ~soiVnf.. !.205:0) Staff reco e+nds that the bid by Power -Anderson for $315,399 be accepted, and that the Mayor be authorized to execute the contract. AGREEMENT--IHSTALLAT1ON OF ELECTRIC UTILITY MANHOLES AND CONDUIT SYSTEM Power -Anderson, Inc. COGENERATION STUDY Staff recommends that Council authorize execution of the contract with the California Energy Commission and approve the agreement with CH2N Hill. AGENT --PROFESSIONAL CONSULTANT SERVICES BETWEEN CITY OF PALO ALTO AND CH2N HILL Cogeneration feasibility study 4/14/80 557 RESOLUTION OF SYMPATHY XIJL ANGUS FOSS RESOLUTION 5785 entitled "RESOLUTION OF THECOURCIL OF THE CITY OF PALO ALTO EXPRESSING SYMPATHY TO ThE FAMILY OF KIJL ANGUS FOSS." MOTION: Counci member Renzel moved, seconded by Eyerly, that Council approve the consent calendar. The motion passed on a unanimous voice votes Council ber Fazzino absent. RESOLUTION OF APPRECIATION TO W115 B. lunAr 4WOTION : Counc i l r ber Renzel moved, seconded by Sher, that Council approve the resolution expressing appreciation to Louis R. Green, Senior Assistant Attorney for the City, on the occasion of his leavetaking. RESOLUTION 5786 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO COMMENDING LOUIS S. GREEN FOR HIS SERVICE TO THE CITY OF PALO ALTO." The motion passed on a unanimous voice vote, Councilmerber Fazzino absent. Louis Green said that during the years he has been with the City, he has had the privilege of working with two outstanding City Attorneys, as well as with any qualified and dedicated Councilmembers. He also com nded the City staff membees with whom he has worked and noted the high caliber of people who work for the City. He said that he is looking forward to his new position as City Attorney for the City of Davis, and he will also miss his colleagues at the City of Palo Alto. He said he has enjoyed and appreciated being with the City. Mayor Henderson said he thought he spoke for all of the Councilmembers when he said that Mr. Green had made a significant contribution to the City and he wished him continued success at the City of Davis, California. D0WNTO11N PARKING MANAGEMENT PLAN :• DMINIA INANCE (CMR:198:0) Cuuncilmember Fletcher asked about the expense_ for the shuttle bus. Did the revenue from parking cover the cost? She was advised that it did. Councilm ier Eyerly asked the City Attorneyif he could participate in this agenda item. Mr. Abrams responded that he could. Councilmember Renzel said she was delighted with the progress of the project. MOTION: Councilor Fletcher introduced the following staff recommendations and budget amendment ordinance and, seconded by Refuel, moved their approval by Council: Staff recommends that Council approve the budget amendment, to provide for acceptance of a $9,929 supplemental grant appropriation from the California Energy Commission (CEC) with the underst4ading that staff. will return to the Finance and Public Works Committee for review of the preliminary version of the Urban Mass Transportation Administration (UMTA) grant application prior to preparation of the final version for submittal to and approval by the Council, along with the following budget ame dment ordinance: ORDINANCE 3196 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1979-80 TO PROVIDE FUNDS FOR DEVELOPMENT OF GRANT APPLICATION TO PARTIALLY IMPLEMENT THE DOWNTOWN PARKING MANAGEMENT PLAN AND TO PROVIDE FOR THE RECEIPT OF GRANT FUNDS FROM THE CALIFORNIA ENERGY COMMISSION (CEC)." The motion passed on a unanimous vote, Councilmember Faazino absent. RENTAL HOUSING ORDINANCE .ee�.�.. ...imp.. Mayor Henderson spoke of his personal inquiry into several complaints of rent increases he had received from tenants. He said he had concluded that, with sole exceptions, the rent increases generally were a result of inflation rather than of the onerous principle of "rent gouging." He thought a rental mediation board would be a definite deterrent to gouging, perhaps to be established by the Rental Housing Mediation Task Force, and one of the stipulations to landlords would be that appearance before the board, when requested, would be mandatory. MOTION: Mayor Henderson introduced the following ordinance for first reading and moved its adoption by Council: ORDINANCE or THE COUNCIL OF THE CITY OF PALO ALTO ADDING CHAPTER 9.68 TO iieE PALO ALTO MUNICIPAL CODE REGARDING A PROCEDURE FOR THE MEDIATION OF RENTAL HOUSING INCREASES Motion died for lack of a second. C,uncilmember Brenner said she favored another approach. She would like th to require a one year lease with 60 -day notice and a just -cause provision for eviction. This would reduce the fear of evictions end aright be more effective than rent control measures. this approach would deal with the most critical aspects of tenant/landlord relationships. MOTION: Gounciia er Brenner moved, seconded by Levy, that Council r st City attoeney to ..r1 �.. op..et1 ,... ,.. .t aye Include ►e -`-� the City .iwdN. eCL� i.t! write an omit +~i which would i�it,fL�M a lust -cause - provision for eviction - and reeuiN j__ �� provision .o. eviction, anti tc.yata ing a-one-'"2redr lease provision and 6O -day notice, either for eviction or rent increase. Councilor Brenner said she thought the Rental Housing Mediation Task Force was the appropriate body to take care of preliminary hearings regarding just cause for eviction, although she would like the City Attorney's opinion on that. Vice Mayor Sher referred to Mayor i erson's motion and said that while he didn't favor it at this point, he would like to hear from renters on the proposal. He feared that the 10 percent increase in rent allowed by the ordinance eight serve to putlandlords on a '"program" of annual increases. He wondered about how the board's activities would be i l nted; he thought a showing of support from renters was needed, since there would be start up costs of $25,000 for its establishment. He did favor a provision that landlords offer a one-year lease and also the 60 -day notice of rent increase. A just -cause provision would eliminate need for a rental board, he fit, though i t would not be effective with a rent incase problem. 4/14/80 559 Doug Winslow, 630 Los Trancos Road, said that the Renters' Protection ordinance he had brought before Council in December, 1979, had been defeated by a narrow margin. He said that public testimony at that time on the part of renters had helped him overcome his objections to more government control. Mr. Winslow said he thought the proposed ordnance was the appropriate direction for Council to take. Mayor Henderson said tenants and representatives of other nearby municipalities had praised the proposed ordinance. He noted that the 10 percent figure could be changed. Councilmember Witherspoon said that Mayor Henderson's report on his personal contacts with renters had been helpful to her. In respect to the motion, she thought the one-year lease offered the most questions, in this university town, where visits and leaves were of indeterminate times. She ascertained that under California law tenants were required to receive 30 days' notice. Mr. Abrams said that was a 30 -day notice with no cause and assuming no lease. Councilm ember Eyerly said he thought the just -cause provision would require some bureaucratic function to determine whether or not the cause was indeed just. Roy Abrams, City Attorney, said that just -cause would be that which could be defended in court. Councilrember Levy said that rental payments had stringency --they could not be delayed, and ways to 'save' on rent were not possible, as was the case with food, gasoline and the like. He thought the one-year lease and the 60 -day notice helped take away some of the vulnerability of the renter. Mr. Abrams clarified that Councilme ber Brenner wanted further information aboet a possible one-year lease provision, a -just-cause provision, and 60 -day notice for rent increases or eviction, with provisions for increases being written in the lease, if increases were to be made. Councilmember Pletcher explained that she had opposed the formation of a rental mediation board because it called for mandatory eepearances, and many landlords lived out of town, axed a smell fine for non-appearance could be recovered by raising the rent. Pressure from publicity on the landlord was to be a key element, yet there was no structured way to publicize the hearing. She noted that no renters were present that evening to support the ordi once She supported the i poeai E of having Re -year Lease off r� d _.. a f' d_. ham _._ just -cause provision. - Thee _ a one-year - 3.��5._�.i[ 3L�! �� _:_�. ....� y.��rv- wtsa�' - 14`1�r� was not a free market in housing, and renters wed some protection, she thought. Council seer Renzel said she thought some renters might have thought tree proposed ordinance helpful because there was no other help for them, yet the pram would have been expensive and taken much time, and there was no real means of enforcement. She said that many were in desperate straits when they were notified that their rent payment would go up and so the 60 -day notice would soften that blow somewhat. She noted that the one-year lease idea did not limit landlords' options to offer a lease, and that afforded some security to renters. Council ber Witherspoon spoke of some rental units maintained by Stanford for patients at Children's Hospital, but said they were a special case. 4/14180 560 Mayor Henderson said tenants did not have to sign a lease; he thought that if a lease were required rent increases would be the result. He thought the just -cause provision would not be helpful because most tenants could not afford to take a landlord to court. He did think public notoriety would deter landlords. He said that neither landlords nor tenants had opposed the ordinance. Vice Mayor Sher said he was glad to have clarified that the 60 -day notice applied to rent increases to take place during the term of a lease; he said he did not think passage of the motion would require establishment of a board because problems would be taken to the court to settle. He thought an ordinance should have some provision for special cases. Councilmember Brenner observed that the 60 -day notice also protected a renter who had not signed a lease. MOTION PASSED: The motion, that Council write an ordinance which would include a and requiring a one-year lease provision for 60 -day notice either for eviction or following vote: request the City Attorney to just -cause provision for eviction, when desired, and a provision rent increase, passed on the AYES: Brenner, Fletcher, }iende; son, Levy, Renzel, Sher, Witherspoon TOES: Eyerly ABSENT: Fazzino GOLy COURSE COFFEE SHOP (CMR:228:0) Mayor Henderson said he thought Council was, in considering the matter, considering the magnitude of the coffee shop operation. it had been established for convenience of golfers, with the operator instructed not to advertise for outside business. Up to r►aw the operation had not been a success, owing in major part to limitations placed on the operator. Larry Kramer, operator of Harry's Hofbrap in Redwood City, had bid on the operation of the Palo Alto golf course coffee shop, on the basis of being allowed to expand the operation from just coffee shop to full steamtable restaurant. Mr. Kramer also asked for use of the meeting rooms during the lunch period. Mr.Kramer did not want to give financial information to the City, nor accept pricing approval by the City, and those stipulations provided difficulties. Mayor Henderson thought Council should first consider the type of operation, then, if Council_ approved, it co d c.., .,i.i_._ . � could K,lbrta �ut►� the illWnCia l and pricing issues. Carleen €edwell, Director of Social and Commenity Services, said the lease attache to the staff report was outdated in that it represented staff's understanding of Council's action of February 19. Courrcilmember Renzel said that a definite request for meeting rooms had been made when the new golf course club house was being discussed --•a fullti full-fledged restaurant had not been contemplated. She thought it would be wise to require that the golf course meeting rooaas be available on 48 -hour notice. Pis, 8edwell said that she thought Mr. Kramer would be happy to give golfers priority for use of the meeting rooms if the activity was meal - related. POTION: Coun ;i l ber Renzel moved, seconded by Brenner, to require that the smell meeting room be available on 48 -hour notice (non -meal) to golfing groups aryd that that provision be included in any lease agreement. 4/14/8d 561 Councilmember Renzel said she thought the flexibility to have non -meal related use of the small meeting room between 11:30 and 2 was •mportant. She ascertained that the 90 days' notice to the operator would mean that Council had to, within nine months, notify the operator if the City wanted to have the lease for four more years. Ms. Bedwell said that was correct. Mr. Kramer would have to give the City 60 days' notice after he had heard from the City. He would then be committed to four years of operation. Councilmember Renzel said she thought that the small meeting room should be available to golfers between 11:30 and 2 on 48 hours' notice, without requirement that meals be ordered; the large meeting room would be made available on 48 hours' request also but meals had to be ordered. Councilmember Renzel said she would like to make a series of motions, including her previous one, and then Council could vote on them separately, or as one motion. MOTION: Councilmember Renzel moved, seconded by Bremner, that Council approve Section 4 related to the term of the lease, with Mr. Kramer to have a one-year lease, a four-year option, and an additional five-year option at the choice of the City and Mr. Kramer. The City, however, could terminate Mr. Kramer's rights at the end of the first year. If the City chose to terminate the lease at the end of one year, the City must give 90 days' notice. The City will reimburse 90 percent of actual capital costs incurred in starting up the restaurant, not to exceed $18,000, and 100 percent of the liquor license cost ($6000). The large capital cost ($18,000) is occasioned by Mr. Kramer's desire to make substantial changes in the character of the operation, that is, removal of the counter service and installation of a large steam table. If Mr. Kraemer chooses not to exercise his option at the end of the first year notice must be given 60 days prior to the end of the year. Mr. Kramer will absorb all start-up costs. Any existing equipment which is removed from the coffee shop will be removed and reinstalled at Mr. Kramer's expense and storage will be the responsibility of the City. CouncilmemberRenzel said that in Section o, she would tie the rent to Section 5 under Exhibit A, "Control of Hcurs, Procedures and Prices." In that circumstance she would be willing to move approval of the rents. She thought Council had to have control of pricing to make sure that what was offered was suitable for the wide range of users of a public facility, She thought that if the facility was to be rented as a restaurant the City should receive restaurant rent. MOTION Counrilmomber Renzel mcved, seconded by S erea d, Ue c.othination �..erents -- shown; r $300 per wa th; Year Two: $500 �...�� �� �;�-.�' '-�.s'i��-�S, Year 'tom, per month; years Three through Ten: Annual rent increase based upon, agreed -upon index of preceding year. The rent, then, has to be tied to Exhibit A, Section 5, control of Hours, Procedures and Prices. C*ancilmember Renzel said that since rent was not tied to receipts Council would have some notion of whether or not the City was getting what it needed out of the operation, if the pricing control passed. Mayor Henderson asked if the City had the right to see the financial statements of other contractors, Ms. X11 said that the City had access to the financial records of the Palo Alto Sanitation Company and the golf course golf pro. 4/14/80 5.6 2 Mayor Henderson noted that if the restaurant operator did not have to show his financial records the other contractors might want to witrhold theirs. Councilmember Renzel asked what the City did with information about receipts of contractors, and what it expected to do. Ms. Bedwell replied that information about finances gave the City some base for planning expenditures and also profits that could be made from a City facility, in which, if beyond a reasonable return, the City might wish to share when a lease was renegotiated. Councilmember Renzel said she preferred to control profits through price control; she did not think the facility should make a profit so much as provide a service. Mayor Henderson pointed out that it was necessary to know profit in order to negotiate price. MOTION: Councilmember Brenner moved, seconded by Henderson, the staff recommendation on Section 9, that an annual financial statement prepared or audited by a certified public accountant be provided, with books and records available to the City and subject to audit. Councilmember Brenner agreed that correct pricing depended upon information about profits. She thought the proposed $300 monthly rental for 4500 square feet was very low —in Downtown Palo Alto the same space would cost about $1 a square foot monthly. Vice Mayor Sher said he assumed the group of foregoing motions were single features that the proposing Councilmembers wanted to see included in a lease. Vice Mayor Sher said that Mr. Kramer's attorneys had said Mr. Kramer would not agree to disclosing his financial statement, and so Council could also move that staff try to execute the agreement with fir. Enyon, staff's second recommendation for an operator. Mayor Henderson renewed his first suggestion --Council should consider if it was willing to have the coffee shop operation become instead d larger - meal, steamtable kind of restaurant, bringing with it some pressure to advertise, Ms. Bedwell said Mr. Kramer was aware of the restriction against advertising, and accepted that, saying that he thought that was one justification for low rent. Charles A. Arnold. 3779 Middlefield; s 1d he gas president of the Palo Alto Golf Advisory Ommittee. He said he had participetedin three extensive meetings with Ms. Bedwell and M_ t. Klein, attorney for Mr. Kramer, Mr. Arnold said that his; committee would be talking to other candidates should Mr. Kramer not rat Council's requirements. In the discussions one suggestion had been to link rental paid for the facility to some percentage of fair market value, perhaps up to 70 percent --not 100 percent because of restrictions on advertising and the location itself. Mt. Arnold said he thought the 900 golfers wanted a good eating place, after 20 years of a mediocre coffee shop, and many thought Mr. Kramer would provide such a place. The rentals, he said, had been proposed by staff. If the rent were tied to fair market value, lit. Arnold said, it would negate the need for financial disclosure or control of prices. He did not think surveillance of prices and profits was the business of the City. A look at the finances would be appropriate if Mr. Kramer chose not to renew his lease. He said he was spokesperson for the group; the group had added that one person talking for it would be enough. He thought Council would be doing a disservice to the golfing community if it acted to prevent the signing of the contract. 4/14/80 563 Mayor Henderson made it clear that only finances concerned with the restaurant operation were required. Larry Klein, attorney for Mr. Kramer, pointed out that unlike the monopoly of the Palo Alto Sanitation Company there were many, many restaurants in Palo Alto. Figures on costs and profits were proprietary and if disclosure of them were the price of having the restaurant facility Mr. Kramer would rather forego it. Regarding the operation of the small meeting groom, Mr. Kramer was a successful restaurateur and had to have access to the room to operate the place profitably. On the matter of rentals, there had been some understanding that after two years of operation rental payment would be determined by negotiation and, failing that, appointment of an independent appraiser to fix fair market value at some percentage of comparable properties, with that to be the rent for ensuing years, to be renegotiated yearly. Staff had said it preferred straight formulas, and he and his client had agreed to that. In response to a question from Councilor Witherspoon he said that agreement to withdraw the facilities of the small meeting room from trade in response to a request for a meeting room would diminish profit margin significantly. He supposed that could be worked out --meetings at that time would probably include some hers who would be eating. Councilr ber Witherspoon asked how the golfing group felt about that. Mr. Arnold said two warren's groups that played nine holes would be most affected, but both had indicated they would go along with limited availability of the room because they wanted a good restaurant there. A discussion ensued about what conditions might be acceptable in relation to usage of tables for those not having meals. Hr. Arnold said the golfers expected to use both back rooms for awards cere3 nies and the like at hours other than meal hours. The women's groups were much smal'er and use of a table or two of the small meeting room would not present a problem. The 150 or so men golfers expected to have use of the large meeting rooms when they wished, and they would probably be ordering meals. He said that usage of the room was perhaps being given up during specific meal times, so that golfers could have available to them some good food. Counc i lmeeher Renzel asked if the mom might be made available for a nominal fee. Mr. Klein replied that central to his reply was the economics of the system, and keeping customers happy. Councileember Renzel asked if arrangements had been made for regularly scheduled aieetios, such as first -Tuesday meting: Ms. 8edwel i replied that she recal i eo that manager's approval was requ i red for non -golf related meetings —that would be an optional use; golf - related activities would have a priority. The public would riot be precluded from using the facility during the lunch hour, Counciluember Renzel asked if Mr. Kramer's figures contemplated using the coffee shop portion as well as the dining room portion with the same kind of food service. Mr. Klein said that was true. Manor Nenderson asked Mr. Zaner, City Manager, if staff would recommend that sang rooms should be retained for use by the golfers. Mr. Zaner replied that staff had attempted to negotiate the lease within the constraints of the policy statement Council had adopted about making rooms available to golfers, letting the restaurant get on its feet with 4/14/60 a low rental to begin. He said he did think it was inportant for a private firm leasing a public facility to give some indication of its finances in that operation. The City would inspect the figures but they would not be available for publication. He said that he thought Mr. Kramer was the most experienced and qualified applicant so far. SUBSTITUTE MOTION: Councilmember Witherspoon moved, seconeed by Henderson, that Council authorize the City Manager to continue to negotiate with Mr, Kramer as outlined in the April 10 staff report, and that the Mayor be authorized to execute the lease subject to City Attorney's review. Councilmember Levy said that the reason the year's lease was being offered ,Was so that the golf course food operation could be studied. He ascertained.that p vision on page 2 of the staff report gave the City flexibility to do that. He noted that Exhibit A, section 5 gave the City the right to control prices. What were to be the City's criteria for proper pricing? Ms. Bedwell said that point four of the list of General Conditions gave those criteria, and she read a statement that said that if the situation was not in the interest of the general public it could be terminated; that would not be exercised if things were going well —only upon conclusive evidence following investigation of complaints. The contract asked that an operator, who was being given exclusive use of a City facility, would be assumed to plan to serve good food at a reasonable price. Councilmember Levy asked if the vendor coup better serve the clientele if the City were to know the finances. Ms. Bedwell said that if there were a large profit it would be appropriate for the citizenry to benefit through increased payments to the City. Councilmember Levy said he did not think the issue of opening the books had anything to do with whether or not the golfing public was well served. He thought there was something to be said for the City having some control over the pricing, but ". . in light of the big picture I'd be willing to forego that at this point, and the big picture is that what we have had out there has been an utter failure and has not served the citizens at all." He approved of the substitute motion. Councilmember Brenner said she thought Council was making a longterm decis►en and the contract was very important; she did not agree with the substitute motion. When golf course renovations were underway a snack bar and lunchroom was wanted, and the building would not have been built had a restaurant been proposed. She thought unorganized golfers were being ignored, the so-called brown hag lonrhers_ Staff hod tried to protect �e and price _ ta�xv_. _.33.rEr"tSl.i"T3-enAi-_£�"e .thought, the ;west rat certainly justified price control. She noted that another applicant was willing to take over on the conditions of the original lease, and he would pay $500 a month. That contract, with Mr. Keith Enyon, wild be for one year --his offer was valid until April 18. She would be willing to go ahead with that lease if Me. Kramer did not agree to financial disclosure. Councilmember Fletcher supported the right of the City to control restaurant prices because of the unusually low rental being charged by the City. She ascertained with Mt. Bedwell that rents l s for Me. Kramer would be based upon an agreed -upon index of the preceding year, such as the food - away -from -home prices of the Consumer Price Index (CPI) . P. Kramer had said he was opposed to a l ea see that conta i ned rental terns that were a percentage of profits. Councilmember Fletcher said she thought rental eecelpts should be a based in part on profits made from the operation. She noted that under Section 4 of the lease the City offered to reimburse 90 pa a it of the capital costs and 100 percent of the liquor license cost. Ms. Bedwell replied that the liquor license would stay with the facility and would be transferable to the next operator. Councilmember Fletcher said she would not support the substitute motion; she said that if, in order to have a good operation it had to be expanded she would agree to making the restaurant available to visitors to the Baylands and employees in the offices nearby, even if some limited publicity were needed to attract them. Councilmember Eyerly said he thought prices were self -policing --he did not think the City should be concerned about that; the City only needed the record of gross receipts, which Mr. Kramer was willing to provide. Mayor Henderson pointed out that gross receipts, in the case of Mr. Kramer's stipulations, would be available only on termination of his lease. AMENDMENT: Councilmember Eyerly moved, seconded by Witherspoon, that the City negotiate on Section 5, under "Rent, a percentage of the gross to be written into the lease, to take place at the start of the second year, if the option is picked up. Mr. Zaner asked if Councilmember Eyerly meant a percentage of the gross sales or a formula which identified a square footage cost for comparable restaurants, and a percentage of that. Councilmember Eyerly said he meant a percentage of the gross. Mr. Klein, attorney for Mr. Kramer, said Mr. .Kramer would not be agreeable to a percentage arrangement. A discussion ensued as to whether or not the Eyerly amendment concerning a percentage of the gross should or should not be a separate amendment in view of Mr. Klein's statement. It was decided to make it a separate amendment. Charles Arnolo, president of the golf advisory committee, urged that the rental be based on a percentage of fair market value, in that way negating need for financial disclosure or price control. Vice Mayor Sher reviewed the present rental schedule; he said he did not know how an appraiser could determine fair market value without knowing how successful the operation had been. He did not know how the formula Councilmember Eyer;ly proposed to put in the lease could be determined. He Said that at the -end of one year, with the proposed financial arrangement, the City would not want - to get out of the lease because it would r_sst the City Its C94 non :tom.,¢ ..., ---*- �_ j,. ., sva.'. V...4+ � tout a. tip+.tla �.� bEt W�v.b. on matter of -price-coon==rs, he noted hat at Candlestick Parrs and Stanford were price controls, though he did not think the City had the. bargaining p er at the yoif coarse to insist on price controls. The City had to have information on which to base a "fair value" for renegotiating the lease. Cobdcil rs were in charge of looking after the City's _interests„i and more ihfor tion was -needed to do that, Councilmember Renzel said she would support the amendment for a percentage basis, because the City taught to at least get some of the profits. She thought it was, however, important to have some price control to offer a range of prices for those who could mot afford to buy $3-$5 lunches. She would propose some amendment nt on price control, she said. 4/14/80 566 Mayor Henderson said that in view of the initial coffee shop idea having failed he would vote for an operation with broader appeal, though he was concerned about having financial information. AMENDMENT FAILED: The amendment that the City negotiate on Section 5, under "Rent," a percentage of the gross to be written into the lease, to take place at the start of the second year if the option is picked up, failed on the following vote: AYES: Brenner, Eyerly, Fletcher, Renzel NOES: Henderson, Levy, Sher, Witherspoon ABSENT: Fazzino AMENDMENT: Vice Mayor Sher moved, seconded by Henderson, that the City rewire„that an annual financial statement be prepared or audited by a Certified Public Accountant, that books and records be available to the City Manager dr'his representatives upon request, and that records need not be taken from Mr. Kramer, or, if they are, that they will not be made public record. Councilm er Levy emphasized that he did not think financial disclosure would do anything to improve the restaurant operation. Mayor Henderson said he thought financial disclosure could be non - informative depending upon the ways in which Mr. Kramer prepared his IRS statement, for example. Vice Mayor Sher repeated that financial disclosure was needed, he thought, so that the City could determine what was "fair market value" of a lease that would run a considerable length of time. AMENDMENT PASSED: The amendment passed on the following vote: AYES: Brenner, Fletcher, Henderson, Renzel, Sher NOES: Eyerly, Levy, Witherspoon ABSENT: Fazzino Vice Mayor Sher noted that the rent schedule for years 3 through 10 was based upon the index of preceding years --he thought, in view of passage of the amendment that the rents stould be negotiated upon results of precediAg years. AMENDMENT: Vice Moo Sher moved seconded by rr ver1 . • that the rent increases for years 3 through 10 be negotiated upon the results of the preceding years. Kr. Abrams saidthat until the terms of the amendment just passed were met it would be best not to set further terms for the contract= CouncilmmoNer Renzel said she would sup port the proposed amendment, but she much preferred seeing a low rent and low prices. Councilmember Eyerly left the meeting at 10:40 p.m. and did not return. Mr. Klein said that he and his client had been planning only up to five years; ten years were not contemplated at this time. His understanding was that the present contract was for a one-year period with a four-year option. 4/14/80 567 Councilmember Levy ascertained that staff's preference was for a percentage of gross receipts; the bid package had contained that as staff's preferred approach. Mr. Kramer had preferred a fixed rent and no percentage of gross. The rent schedule proposed was the compromise. Mr. Zaner said that after the the first two years an index arrangement would be worked out for the next three years, then the contract would be renegotiated with staff using information from the financial records. He said he thought that if Council "sat" on an arrangement in the last three years of the first five years, Mr. Kramer would in all likelihood withdraw his bid. MOTION WITHDRAWN: Vice Mayor Sher said that he would, in view of that information, withdraw his amendment, if Mr. Kramer would agree to making his records available at the end of the first five-year period. Councilor Renzel said she thought it was very important to have a range of prices to suit the variety of clientele at the golf course. AMENDMENT: Councilme tuber Renzel moved, seconded by Fletcher, that Council direct staff to have a provision in the contract to ensure that there be a range of prices. The amendment failed on the following vote: AYES: Brenner, Fletcher, Renzel NOES: Henderson, levy, Sher, Witherspoon ABSENT: Fazzino, Eyerly SUBSTITUTE NOTION AS AMENDED PASSED: The substitute motion, that Council authorize the City Manager to continue to negotiate with Mr. Kramer as outlined in the April 10 staff report, and as amended, and that Mayor be authorized to execute the lease subject to the City Attorney's review, passed on the following vote: AYES: Fletcher, Henderson, Levy, Sher, Witherspoon NOES: Brenner, Renzel ABSENT: Eyerly, Fazzino MOTION: CowCouncilmember Renzel moved, seconded by Fletcher, that if a successful negotiation could not be worked out with Mr. Kramaer that Council proceed with negotiations with Mr. Keith Enyon, and on the terms of the original lease. Vice Mayor Geer asked if Mr. Enyon had ever run a restaurant. Ms. Buell replied that Mr. Enyon had been in charge of golf facilit;es that included food operations; as a golf pro Mr. Enyon had also been responsible for the fool operation. MOTION PASSEO: The motion passed on the following vote: AYES: Brenner, Fletcher, Levy, Renzel, Sher NOES: Henderson ABSTAIN: Witherspoon ABSENT: Eyerly, Fazzino 4/14/80 568 REQUEST OF COUNCILMEMBER RENZEL RE ATIVE Councilmember Renzel said that the Housing Corporation had asked her, as their liaison with Council, to bring the matter before Council with the hope that Council would take a position opposing Proposition 10--a rent control initiative. The Housing Corporation thought the initiative removed local control for rent relief or rent control. Councilmember Renzel said she thought the initiative, if passed, would disenfranchise voters. She thought it would be wise to support the stand in opposition to Proposition 10 taken by the Housing Corporation, MOTION: Councilmember Renzel moved, seconded by Fletcher, that Council go on record as opposing Proposition 10. Herb Borock, 3401 Ross Road, said he supported the Housing Corporation's request that the City oppose Proposition 10; he said the proposition was a fraud. About $1.8 million had been spent to collect signatures with the claim that it provided local control and rent control, whereas it did just the opposite. Nearly one-half million of the signatures had been shown to be invalid. The "Ho on 10" committee had successfully persuaded the court to change the ballot title; the "No on 10" campaign had successfully petitioned the court to change the ballot spry. Even people opposed to rent control were opposing the measure, because of its fraudulent nature. Mr. Borock said the solution to the housing problem required an increase in the housing supply and protection for renters who could not afford to wait for that increase to take place. Mr. crock said Proposition 10 impeded the increase in the housing supply by impeding programs that would supply low- are moderate -income housing. He listed some individuals and groups that opposed the "Nn on 10" campaign. Fred Weiner, 2932 Emerson, said he represented Palo Altans for Affordable Housing, that commended the Palo Alta, Housing Corporation for its position opposing Proposition 10. At present there was local control of housing; Proposition 10 `meat -axed' all rent relief ordinances. With Proposition 10 rent increases would be tied to the Consumer Price Index, and held many provision benefitir:' only the landlord. He outlined some other injustices of the proposition. Councilmember Witherspoon said she had not been convinced by the Housing Corporation's statements that Palo Alto's housing would be affected; she would vote against the action. Councilmember Fletcher agreed with the points speakers had made. She pointed out that the proposition also worked in favor of conversion to condominiums of apartments. Vice Mayor Sher said he did not favor rent control but he did not favor Proposition 10 either because he thought such matters should be fashioned to meet the needs of local communities, He would favor the motion. Mayor Henderson said he agreed w uh the Los Angeles Times and other entities which had tend Proposition 10 a fraud. He would favor the motion. MOTION PASSED. The motion, that Council go on record as opposing Proposition 10, passed on the following vote: AYES: Brenner, Fletcher, Henderson, Renzel, Sher HOES: Witherspoon ABSTAIN: Levy ABSENT: Eyerly, Fazzino 4/14/80 569 RE+UEST OF COUNCILMEMBER FLETCHER RE Councilmember Fletcher said the scope of considerations by the Alcohol and Beverage Control Board (ABC) would have under its surveillance would be limited by the proposed AB 1960. She recalled the application made by Beltran for a location at Bryson and Middlefield Avenues. She said that neighbors' wishes not to have the traffic impact had prevailed. MOTICN: Councilmember Fletcher moved, seconded by Renzel, that Council authorize the Mayor to send a letter opposing AB 1960, to members of the California State Senate. Councilmember Levy said that since he was not sure of what the application of the bill for the City of Palo Alto might be he would abstain. He thought the City had ample power to protect itself from any adverse effects through application of the zoning ordinance, and so he preferred that Council take no stand at present, for by 'affirming' ABC's power the City might, in some way, be limiting its own power. Councilmember Renzel said she thought ABC's power complemented the effectiveness of the City's application of its zoning ordinance, and so she thought it wise to support the motion. MOTION PASSED: The motion passed on the following vote: AYES: Brenner, Fletcher, Henderson, Renzel, Sher ABSTAIN Levy, Witherspoon ABSENT: Eyerly, Fazzino REQUEST OF COUNCILMEl3ER BRENNER AND rTCE Mpg SIER Rt CONAHS101 OV tORVL JS sCROtt eunIns-(7-RENThi HOUSING Vice Mayor Sher said Council had not yet discussed the possibility of converting surplus school buildings to rental housing, and he thought the idea worth exploring. He spoke of the advantages of working with buildings already in place, along with the savings thus involved. If the motion he would make were to pass he and Councilor Brenner favored having staff work with the Housing Corporation on the matter. The proposal was not intended to delay or otherwise change Council's stand on the Ventura and Tenn sites. MOTION: Vice mayor Sher moved, seconded by Brenner, that Council direct staff to identify a particular building on one of the sites declared surplus by the Palo Alto Unified School District (Pi u), and to engage an architect to prepare some sketches showing how that building might be converted to housing units. Count i ider-Witherspoon wondered amehitect; she _thought the Houeing some similar work while drawing yep She did not think it was necessary doing it right now. Mir Henderson said he mould like to have some idea about what costs to convert the buildings to housing might be; he did not favor the project right now. who would pay for the hiring of an_ Corporation might have already done considerations for the Tenn site. for the City to have staff spend time 4/14/80 570 Mr. Zaner said staff had worked with the Housing Corporation on a brief analysis on the Terman site and staff said it would not try to transfer any of that information to another site because all the school sites were different. Staff would work with the Housing Corporation --he thought that if the motion passed what would be attempted would be a feasibility study for a specific site more than a detailed set of plans. Councilmember Renzel said that the possibility expressed h the motion had not been discussed at any of the Housing Corporation meetings at which she had been present. She thought it a good idea --schools were well located for solar potential and could provide below -market -housing at a reasonable cost. Councilor Brenner said that using existing buildings would make low- cost construction possible. MOTION PASSED: The motion, that Council direct staff to identify a particular building on one of the sites declared surplus by the Palo Alto Unified School District (PAUSD), and to engage an architect to prepare some sketches showing how those buildings might be converted to housing units, passed on the following vote: AYES: Brenner, Fletcher, Henderson, Levy, Renzel, Sher NOES: Witherspoon ABSENT: Eyerly, Fa zzi no NTERVIEWS OF APPLICANTS FOR Councilm bers agreed that a special meeting would take place on April 30; Councilmembers should submit their lists of five preferred candidates for interview to the City Clerk. The eight candidates receiving the highest tallies would be interviewed. ORAL COMMUNICATIONS None ADJOURNMENT TO EXECUTIVE SESSION Council adjourned to Executive Session re titigafio• ADJMRNMENT The Council meetiel adjourned at 11:35 p.m. APPROVE: %Lv 13.4.Vi 4/14/80 5.7 1