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HomeMy WebLinkAbout1980-06-09 City Council Summary MinutesRegular Meeting June 9, 1980 ITEM PAGE Minutes of May 12, 1980 6 8 1 Oral Communications 6 8 1 Consent Calandar - Referral Items Refferal to F&P'W Com, ittee-- Transporatation/Housing Specialist Contract 1980-81 Budget Consent Calandar - Action Items 631 Federally Funded Housing Improvement 6 8 2 Program (HIP) Stanford Industrial Park/ 6 8 2 California Avenue S.P. Station Shuttle Park improvement Ordinance FUT 6 8 2 Sculpture In The Baylands Agreement For Legal Services-- 6 8 2 Self -Insurance Program Award Of Bid And Approval Of 6 8 2 Construction Contract For Golf Course Irrigation Services Veterans` Memorial Building.- 6 8 2 Satisfaction of Option Conditions- William Cox, Jr. Public Hearing: Amendment To The Comprehensive Plan 6 8 3 t`.4!4widr.w<.ti= Of tl....o..a •..d... n,«d-1 nr ftce 4t t. rut: rwu tiii Public Hearing: University Avenue Area Civic Center Offstreet Parking_ Assessments-4roject 66-08 Attd PrAje ct 7 :-6; Furs • . vJc.vY . �+VJ Public Hearing: California Avenue Area Offstieet Parking Assessments Projects bb -9 and 71-63 Public Hearing: Requests For Certificates Of Public Convenience And Necessity--Mid-Peninsula Cab Co., Inc., And Peninsula Cab Leasing C any, Inc. Contract Change Order With Cckbo-Kay & Associates 685 686 687 692 6 7" 9 . 6/9/80 ITEM Request of Councilmember Fletcher Re :tem Pricing Councilmetnber Witherspoon Re Veterans' Building Committee Oral Communications PA( 692 694 694 Adjournment to Executive Session 6 Q 4 660 6/9/80 Regular Meeting June 9, 1980 The City Council of the City of Palo Alto met on this date in the Councilchaniber at 7:30 p.m., at 250 Hamilton Avenue, Mayor Henderson presiding. PRESENT: Eyerly, Fazzino, Fletcher, Henderson, Levy, Renzel, Sher ABSENT: Brenner, Witherspoon Mayor Henderson announced there would be a brief executive session following the meeting. MINUTES OF MAY 14 10 era.m.rr:..raa...cr.�or.�■Q..er�.�n Councilmember Fletcher asked that on page 638, second paragraph, from the second sentence on read instead: "The reason the Ordinance had not been a problem up to now was that the method for gaining tenant consent in the Oak Creek proposal was new, but she thought it would gradually become a problem and the total rental housing stock in Palo Alto would diminish. For example, the 759 units at Oak Creek were a considerable number. She had heard that only about 5 percent of the population could afford to purchase housing, but jobs in the area were increasing in nor every year." Councilmcr►ber Fletcher asked that the motion on page 639 read instead: "MOTION: Counc i lmember Fazzino moved, seconded by Hen,lerscn, that Council go on record as opposing Proposition 9. motion passed on a uranir cus vote, Counci members Levy and Witherspoon and Vice Mayor Sher absent. (Vice Mayor Sher had recorded his support of the motion earlier in the meeting.)'° Councilmemer Witherspoon asked that on page 627, the first line read instead: "MOTION: Councilmember Witherspoon moved, seconded by Sher, that Council. . . ." Counci ]member Witherspoon asked that on page 627, the third sentence in the first paragraph read instead: "The only construction to bring route C up to standard would be about $2000 for mowing, and monitoring time estimated at about $7000, for a total cost for the six-month period of about $9000." Mayor Henderson asked that on page 637, the second sentence read as follows: "Hr. Carey said Mr. Lewis had suggested in a letter to other tenants that they hold out "for a larger piece of the pie," mTT04: d ^unc{ l..■t...i...r Wilk. ri _ - _ _... .�,_..., ....R�. � t ����� i moved, seconded by f 1 eteher: that__ ---- -- Council approve the minutes at -corrected. The motion passed on a unanimous voice vote. ORAL COMMUNICATIONS, e CONSENT CALENDAR Referral items Referral to F&PW Committee -- 1 ST CONTRACT Staff requests, contingent on approval by ACTION's national director, th t Council approve Kr. Horan's IPA assignment for second year and that the City pay one-half of Hr. Horan's salary, and recommends that Council 1) authorize the City Manager to certify and sign the assignment agreement fora period of one year; 2) amend the 1900-11 Transportation 681 6/9/80 Corrected See Pg. 00 7/7/80 Oi%_,ion budget in the amount of $17,179 to pay the City's share of Mr. Koran's IPA assignment, the ratter to be assigned to the Finance and Public Works Committee for consideration. Action Items FEDERALLY FUNDED HOUSING IMPROVEMENT riTIMUTrtrPrtnrnrtr Staff recommends that Council authorize the City Manager or his designated representative to sign and submit the appropriate application form to the State of California for its Community Development Deferred Payment Rehabilitation Loan Funds and approve the following resolution: RESOLUTION 5801 entitled "RESOLUTION OF THE CECIL OF TNT CITY OF PALO ALTO APPROVING AN APPLICATION TO THE STATE OF CALIFORNIA FOR HOUSING AND COMMUNITY DEVELOPMENT DEFERRED PAYMENT REHABILITATION LOAN FUNDS TO SUPPLEMENT THE HOUSING IMPROVEMENT PROGRAM'S COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS . " STANFORD INDUSTRIAL PAR ON SHUTTLE (CMR:291:0) u et R ;ent nt UrrT1nance Staff recommends that Council approve tie budget amendment for fiscal year 1979-80 in the amount of $38,339, funds to be used to reimburse the City for payments ride to the Shuttle contractor. ORDINANCE 3207 entitled "ORDINANCE OF THE CO€NtIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 1979-80 TO PROVIDE FUNDS FOR THE OPERATION OF THE STANFORD INDUSTRIAL PARK SHUTTLE SERVICE." PARK IMPROVEMENT ORDINANCE FOR ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING A PLAN FOR THE ERECTION OF A SCULPTURE AT SAND POINT IN BYXBEE PARK (1st reading) AGREEMENT FOR LEGAL SERVICES AG .s~.' .1 --LEGAL SERVICES/SELF-INSURANCE PROGRAM Ropers, Majeski, Kohn; Bentley, Wagner A Kane AWARD OF BID AND APPROVAL Of Gua. met YNNTErtrbWrsTkvIcEs (CMR t&Es:0) Staff recommends that Cou i l to.4rd a construction ca;t =ai. L to Coi l i shag.. Corporation in the amount of $4,395 and authorize the Mayor to execute the construction contract. AGREEMENT ---Col l i shave Corporation VETERANS' MEMORIAL BUILDING -- Staff recomends that Council 11 adopt the resolution authorizing cancellation of a portion of an agricultural preserve to permit restoration of the 682 6/900 Veterans' Memorial Building and 2) authorize the Mayor to execute the fourth amendment to the lease (El Camino Park) and the sublease (Veterans' Memorial Building) upon notice from the Real Property Administrator that all of the conditions of the May 4, 1979 option agreement between the City and William Cox, Jr., have been satisfied. RESOLUTION 5802 entitled "RESOLUTION OF THE CIUNCT1L OF THt CITY OF PALO ALTO AUTHORIZING CANCELLATION OF A PORTION OF AN AGRICULTURAL PRESERVE WITHIN THE CITY OF PALO ALTO TO PERMIT RESTORATION OF THE VETERANS' MEMORIAL BUILDING (LELAND STANFORD JUNIOR UNIVERSITY)." MOTION: Councilmember Renzel moved, seconded by Witherspoon, that Couuncil approve the consent calendar. The motion passed on a unanimous voice vote. PUBLIC HEARING: AMENDMENT TO THE COMPREHENSIVE PLAN 31 TES FWU5INg 1 : z9d: o) Mayor Henderson said that this was the time and place for the topic to be heard, and that the public had been duly notified. He declared the public hearing open. Mayor Henderson said two of the five sites had been recommended for multi -family residential; no change had been recommended for the other three. He said the topic was covered in the Planning Commission minutes of May 14. Chairman of the Planning Commission, Michael Cobb, said the three sites, #4, 5,and 6, (a)(b) and (c), had been rejected for possible residential because they were small and completely inappropriate for residential. Site #8, (APN 147-90-046) on the south side of San Antonio Road, was unanimously voted to be suitable for housing --some comment on the isolation of the site from the Palo Alto community was balanced because there are ways to deter that isolation, Commissioner Cobb said. Site #11, (APN 142-03-035), 1100 Welch Road, passed as being suitable by a 5-2 vote for re -designation for MUltiple Family Residential, with consent that perhaps there should be some commercial on the property as well. Andy Doty, 4072 Scripps Avenue, Office of Public Affairs, Stanford University, underlined the point Phil Hand had made at the Planning Commission hearings that use of the Welch Road parcel, Site #11, should be planned in conjunction with possible uses of the 46 -acre site north of Willow Road, which was now zoned R-4, with potential for hundreds of units of new housing, and so the Welch Road lot could have a related use --perhaps a convenience center to serve that 46 -acre parcel, thus re w 1 ng commuter $dpi r a q f the Welrh Road site retained Present ,� :in�4 its zoning that would meet the purpose. Leonard Ware, appeared on behalf of Edward Rosenbaum, owner of the pr=operty on San Antonio Road, Site tB, which had a shopping center on one side and an office complex on the other, with suitable access, assuring San Antonio Road was too heavily traveled, through Mountain View. No letters of intention had been sent to Mountain View, and Mr. Ware thought tout s a q is t_ t i__ed housing i pale_. .. ........ ..:..s W prerequisite � a �iiv�'s-tt �e�tvt�z*�i �i'i�a��� i�. He noted also the isolation of the site from Palo Alto proper% He said the consequent environmental problems of developing that property residential were undeniable, particularly for families with children attending Palo Alto schools. Mayor Henderson pointed out to Mr. are that there were now two condominium Corrected complexes adjacent to the subject parcel, and they had worked out quite well .See Pg. 7/7/80 Ken Schreiber, Assistant Director of Planning and Community Environment, said the environmental assessment on the parcel had been completed --it 683 6/9/80 was the last page of the Planning Commission staff report aid stated no significant environmental impact would result. The zoning on the subject parcel had been changed in the Comprehensive Plan, and it permitted office park as well as residential uses. When the property was developed an environmental assessment would have to be clone again. Mr. Ware said he did not think that a private party who wished to develop the property could "...get away with that negative declaration. I don't think you would in a hundred years." MOTION: Councilmember Renzel moved, seconded by Fletcher, that Council approve the Planning Commission recommendation that Council find the project had no environmental impact and approve the Comprehensive Plan Land Use Map changes to Multiple Family Residential for 400 San Antonio Road and 1100 Welch Road, and adopt the following resolution: RESOLUTION 5803 entitled "RESOLUTION OF THE C C l CrTv OF PALO ALTO AMENDING THE PALO ALTO COMPREHENSIVE PLAN FOR THE DEVELOPMENT OF THE CITY OF PALO ALTO." Vice Mayor Sher asked that the record show that he would not participate because Stanford University was his employer. Roy Abrams, City Attorney, said that as in the past he advised non - participation for Councilmember Witherspoon also. Mayor Henderson said he would divide the motion into two parts: 400 San Antonio Road first, 1100 Welch Road second. Then another motion would have to be made to send the matter back to the Planning Commission for the appropriate change in the Comprehensive Plan. Councilmember Renzel asked if small commercial elements were still permitted in RM-4 and 5. Mr. Schrieber replied that was su--a maximum of 2500+ feet were allowed. Councilmember Renzel said she supported the idea of having commercial with residential at the Welch Road site --it had been tried at Oak Creek and had not been used, however. She acknowledged that the access to the proposed San Antonio site was from a very busy road, but she thought residential would place less stress than another commercial development would. Councilmember Fletcher said she was pleased with the Planning Commission recommendations. She advised that some of the children in the area from the southernmost part of Palo Alto north to Charleston Road attended Los Altos -Mountain View schools; she supposed that Arrangpmpat coi1d b mode for the San Antonio_ site. That lave s ilkine access to schools. Councilmember Levy added that he thought the site was not in the Palo Alto School District and was in the Mountain View School District. He commended the work of the Planning Commission. Councilmember Witherspoon said she favored some of the sites that the Planning Commission had held in committee more than the San Antonio Road site. She thought it oeld be ode into combined use; she would vote against the San Antonio portion of the recommendation. FIRST PART OF MOTION PASSED: The motion that Council approve the Planning Commission recommendation on 400 San Antonio Road site passed on the following vote: AYESt Eyer l y, Fl etcher , Henderson, NOES: Witherspoon ASSENT: Brenner, Fazzino Levy, Renzel, Sher 6 8.4 6/900 SECOND PART OF MOTION PASSED: The motion that Council approve the Planning Commission recommendation on 1100 Welch Road site, passed on the following vote: AYES: Eyerly, Henderson, Fletcher, Levy, Renzel NOT PARTICIPATING: Sher, Witherspoon ABSENT: Brenner, Fazzino MOTION ON FIRST PART OF RESOLUTION PASSED: The motion that council approve that portion of the resolution related to 400 San Antonio Road amending the Palo Alto Comprehensive Plan passed or; the following vote: AYES: Eyerly, Fletcher, Henderson, Levy, Renzel, Sher NOES: Witherspoon ABSENT: Brenner, Fazzino MOTION ON SECOND PART OF RESOLUTION PASSED: The motion that Council approve that portion of the resolution related to 1100 Welch Road amending the Palo Alto Comprehensive Plan, passed on the following vote: AYES: Eyerly, Fletcher, Henderson, Levy, Renzel NOT PARTICIPATING: Sher, Witherspoon ABSENT: Brenner, Fazzino 1 MOTION: Councilmember Renzel moved, seconded by Fletcher, that Council refer the matter of change in the Comprehensive Plan related to 400 San Antonio Road back to the Planning Commission. The motion passed on the following voice vote: AYES: Eyerly, Fletcher, Henderson, Levy, Renzel, Sher NOES: Witherspoon ABSENT: Brenner, Fazzino MOTION: Councilmember Renzel moved, seconded by Fletcher, that Council refer the matter of change in the Comprehensive Plan related to 1100 Welch Road back to the Planning Commission. The motion passed on the following voice vote: AYES: Eyerly, Fletcher, Henderson, Levy, Renzel NOT PARTICIPATING: Sher, Witherspoon ABSENT: Brenner, Fazzino PUBLIC TEARING: UNIVERSITY AVENUE Mayor Henderson said this was the time and place for the annual assessment levies necessary for the pmt of principal and interest on the bonds issues on Universty Avenue and Civic Center areas. The purpose of the public hoeing was to afford property owners the opportunity to object to the mathematical c utations of the assessment and whether er not tt was correctly applied to the property as related to building square footage, the number~ of private spaces provided and computation of parking spaces required. Since the bonds have already been issued Council must -685 6/9/80 levy the assessment. Protests against the levy as such are not legally significant. Councilmember Eyerly asked that the record show he did not participate in the matter since he is a oropertyowner in the district. Dave Adams, Director of Public Works, said that parcel 120-15.046 has added eight additional spaces therefore the assessment was 599.63, in lieu of the $156.58. Parcel 120-15-072 had a zero assessment since the owner supplied all of the parking, rather than $690.55. Those would be adjusted in next year's computations. Both parcels also had adjustments of $129.05, instead of $202.83, and zero instead of 5844.97, respectively. Councilmernber Levy ascertained with staff that costs for parking assessments were about $10 per square foot, with the costs .loubled when two bond issuances had taken place. Howard Crittenden, 201 University Avenue, said he did not plan to pay the assessment to him for parcel 12-26-021, because no part of the revenue was to be credited to either of the two assessment districts, and he thought it was illegal not to use the revenue to pay off the bonds. Cheryl Jensen, Public Works, said maintenance was paid through the bond issue and revenges went toward beautification. Roy Abrams, City Attorney, said that the law required that the extent to which revenues were pledged under the bond issue to retire the bonds and service the debt, then it .mist be credited. He thought that periaps the issuance of the bonds did not reouire that the revenues be pledged to retire the debt, and so the revenues could be used for other purposes. Mr. Crittenden said the assessments on both districts did not total the amount of t':?e estimated revenues that appeared in the controller's office. Mr. Abrams suggest that the public hearing could be c f.;sed and the matter continued until the following Monday, and in that time it could be ascertained whether or not revenues had been pledged. Mayor Henderson declared the public hearing closed. MOTION: Mayor Henderson moved, seconded by Witherspoon, that Council continue discussion of Projects 66-08 and 75-63 to June 16. The notion passed on a unanimmrous voice vote, Councilor Eyerly not participating and Council rs'8renner and Fazzino absent. WIC KARMA: rim IFORM A4e .E w es. s. as.sae a n n v T C: 1UW Mayor Henderson said this was the time and place for discussion of the annual assessment levies necessary for the pant of principal and interest on -t ,e bonds issue on California Avenue area. The purpose of the public hearing was to afford property owners the opportunity to. object to the mathematical computation of the assessment, as to whether ornot it was correctly applied to their property as related to building square footage, the number of private spaces provided, and commutation of parting spaces required. Since the bonds have already been issued Coil must levy the assessment. Protests against the levy as such are not legally significant, Ted Thompson, 410 Cambridge Avenue, representing California Avenue r t Association, said he had not received a requested statement from the City on the costs for maintenance. He noted that estimated costs had risen almost 100 percent sire 1977, and he thought that 686 6/9/80 should be inquired into. He objected to what seemed to be an override of 30 percent on engineering costs that Mr. Noguchi had spoken of. Ms. Jensen said she had notified the District, but riot individual owners, of estimated costs. A discussion ensued on what percentage of engineering costs and the like would rightfully be charged against property owners' assessments. Dave Adams, Director of Public storks, explained that a portion of his salary and those of others in the department, would be included in the charges. Mayor Henderson said he thought Mr. Johnson could expect to receive information regarding breakdown of costs for the levy. He declared the public hearing closed. MOTION: Councilrr ber Witherspoon introduced the following resolutions and, seconded by Renzel, roved their adoption by Council: RESOLUTION 5804 entitled "RESOLUTION CONFIRMING ENGINEER'S REPORT MO ASSESSMENT ROLL --CALIFORNIA AVENUE AREA OFFSTREET PARKING PROJECT 65-09." RESOLUTION 5805 entitled "A RESOLUTION CONFIRMING ERTNUFTREPORT AND ASSESSMENT ROLL --CALIFORNIA AVENUE AREA OFFSTREET PARKING PROJECT 71-63." RESOLUTION 6806 entitled "A RESOLUTION CONFIRMING ENGINEEER'S REPORT AND ASSESSMENT ROLL --CALIFORNIA AVENUE AREA OFFSTREET PARKING MAINTENANCE DISTRICT." The motion passed on a unanimous vote, Councilmembers Brenner and Fazaino absent. PUBLIC HEARING: RENESTS FOR ENCI ml11i M INC. Mayor Henderson said that the matters concerning the two companies would be considered separately. The Council had before it applications for certificates of public convenience and necessity submitted by Mid - Peninsula Cab Company, Incorporated. and Peninsula Cab Leasing many, Incorporated. Council old open and close hearings on each application separately and, at the close of both sessions, would determine the action it wild take on certificate issuance. __Maverr was..o.. s iii ÷hltt r..._w'.3 .0:! the MidPeninsula Cab C o rariy, Incorporated, and that this was the time and puce for the public hearing to consider issuance of a certificate of public convenience and necessity for Mid -Peninsula Cab Company, Incorporated. Mice of the public hearing was advertised in the Peninsula Tie seTribune _on Ma 29!1 0.y . _ _Criteria _ for the issuance ce of the -certificate --- are set forth in the Palo Alto Municipal Code, Section 4.42.050, and stipulate that the applicant shall have the burden of proving to Council l) that there is a public Oemand for -additional service; 2) that the existing service is inadequate; 3) that the applicant has sufficient financial responsibility and experience to conduct properly such a business; 4) that traffic conditions or hazards will not be appreciably increased or parking problems made worse. Counc i l had before it the application and supporting data submitted by the Mid -Peninsula Cab Company, Incorporated, and this is the time for the applicant to mako a statement, if he so desires. 6 8 7_ 6/9/80 Oliver Nordby, 81 Fairoaks Lane, Atherton, said he had owned the Mid - Peninsula Cab Company since July 1, 1958. He thought his company could serve Palo Alto well; he was the manager and oversaw all aspects of the operation. His cabs had both propane and natural gas, and did not use gasoline. Profit in the cab business grew smaller as costs for wages, gas, insurance, and the like, rose. There were 15 cabs that could serve Palo Alto. His company had been for sale, but he had not had the right offer and he did not think it would be forthcoming. He did not mind competition --he wanted to retain the "Yellow Cab" name.. Though his name would not be listed in the phone book, were he to get the certificate, he would have the number 321-1234, and the phone company would transfer calls when he got responses to planned advertising. He spoke of ways he would get the word around were he to obtain tIna certificate. He thought the taxicab business in Palo Alto had been hurt, and he would like the opportunity to build it back up again. He owned his own cabs and building, with refueling facilities in San Mateo and Redwood City, with three fulltime mechanics and ten dispatchers. He had meters in stock and would get more cars as needed. Mayor Henderson asked Mr. Nordby to compare the ;writs of company ownership of cars versus driver ownership. Mr. Nordby said that drivers who owned cabs made their quota for the day then went home --an employer could not tell a driver -owner when to work. But by hiring a parttime driver and paying him a percentage the driver only had to make the minimum wage. And so part time drivers could be hired to cover times of heavy calls and to supplement the services of the fulltime driving force. He said that was better for the City. S. N. (Sandy) Sanger, 891 Featherstone Way, Mountain View, said he had operated Barron Cab Company from 1958 to 1978 at a profit, and competing against Peninsula Yellow Cab Company. Other cab companies had come and gone. He had grossed about $257,000 in 1974, but by 1978 he had dropped to about $112,000. He said Santa Clara County Transportation, and the "...ill-fated Oi al -a-Ride" had contributed to that loss in revenue, He said the hourly driver could not win, but the owner and the IRS won. He reviewed the tax -withholding situation for a lease driver. He favored the owner -operator system, and he gave reasons for that. He thought an ordinance like that in Los Angeles, without the stipulation of belonging to a radio association, would be good to copy. He said he was converting his trucks to diesel. He said he would apply for the certificate if an owner -operator ordinance were to be adopted in about 90 days. He said he owned the number 3271234, and got many calls asking for service. He said he would use 4 -cylinder Chevrolet'Citations. Councilor Witherspoon ascertained with Mr. Abrams that our present ordinance permitted owner -operated cabs, but did not permit the eieeetien i . Sanger was outilnina, _because .th t: iam1ie -sin +. , at.t emneee Richard Lewis, 906 Addison, said he had been employed by InterTrans for six months and was now an owner -operator with InterTrans; he was one of two, and he thought the system worked very well. He thought InterTrans would have improved service with that system, and he asked Council to give InterTrans a chance. He said Project Mobility passengers rarely tipped, and tips were important when a cabbie worked by the hour. Mayor Henderson ascertained there were no further speakers, and he declared the public hearing on the Mid -Peninsula Cab Corny closed. Mayor Henderson declared the public hearing open on the application of Peninsula Cab. Leasing Cerny. He said it was the time and place for the public hearing to consider issuance of a certificate of public convenience and necessity for the Peninsula Cab Leasing Co ansy. Notice of the public hearing had been advertised in the Peninsula Times -Tribune on May 29, 1980. Criteria for issuance of the certificate are set forth 688 6/9/80 in the Palo Alto Municipal Code, Section 4.42.050, and they stipulate that the applicant shall have the burden of proving to Council 1) that there is a public demand for additional service; 2) that the existing service is inadequate; 3) that the applicant has sufficient financial responsibility and experience to conduct properly such a business; 4) that traffic conditions or hazards will not be appreciably increased or parking problems made worse. Council had before it the application and supporting data submitted by the Peninsula Cab Leasing Company, and this is the time for the applicant to make a statement if he so desires. Vince Maggiore, owner of the Peninsula Cab Leasing Company, said he was applying for the certificate. He has 13 cabs, and his company offers an excellent level of service, he said, in Menlo Park, Mountain View and Los Altos. His rates were lower than the other applicants. He described his building and its facilities, and the mechanical support service, as well as dispatching services. He kept his own fueling tanks on the premises at 120 Calderon, in Mountain View. He said he had bought rights to the Palo Alto -Menlo Park Yellow Cab Company, along with color rights, and he said it had been in business long before Mr. Nordby had Yellow Cab in Redwood City --he had paid Mr. Demeter for the rights. He held that the lease -type operation did give a good level of service --he said he would also like to have the competition afforded by owner -operator cabs. He thought exclusive rights to operate in a community were not good. He selected several items given in the staff report on Mr. Peters' operation, and challenged them. He asked that Palo Alto try the free enterprise system. He thought it would give the best level of service. Mayor Henderson asked about Mr. Maggiore's financial situation; there was no depreciation fund or fund for buying new equipment. He asked about the net earnings figure Mr. Maggiore had given. Mr. Maggiore said he would be buying three cars within two weeks to convert to cabs. He purchased new equipment when accounts receivable paid off. He said he was on the premises and rare the company seven days a week and "...financial sheets do not run taxi compani.s. . . .E" Vice Mayor Sher ascertained with Mr. Maggiore that he would welcome competition in the cab business in Palo Alto. Larry Sleizer, 460 California Avenue, Attorney for Vince Maggione, noted that in striving to get the certificate each applicant said his way of doing business was the best; he thought Council should set the policy and not try to structure the way business was done. He asked for minimum regulations, and permission for as meny cab companies as possible. In response to a question from Vice Mayor Sher he said he had not looked into the question of the legality of nos, i.e., "Yellow" cab company. 3.1+� 81.,...wlnh .+.�.enke!.,..t the ��'.34-. -�! ,J..- .5 .1 _4-.4 xa. s i . e �.heuo,l..- pe hops ehe ewne! a e. 4e ealo 40 Jenies- {,3 eld i 6Ofi6. (.!3316, uu6-. He slas aski4g i.i.t 1 .i`. ip-ant the ust Of i73L name - ei iC3Ws though Mr. Maggiore's application said "dba Yellow Cab Company," Mr, Abrams said that under the ordinance there was the administrative authority to reconcile any color scheme --by way of nave on the side of the cab, or a stripe on the side, or other. - Thep Wolffers, 904 f4atadero Court, said she took a cab to her work in Mountain View, and return, every work day. She spoke in favor of granting the certificate to the Peninsula Cab Leasing Company, establishing free competition, and abolishing the InterTrans monopoly. The service given by AterTrans continued to deteriorate, she said, in spite of having been given every chance by the City. She thought she should be able to cal l the company she chose. Gordon Peters, 155 Montgomery, president of InterTrans, said that it had been difficult for six months to maintain a service level with higher costs. He had told City staff t# at . InterTrans needed a rate increase. He reviewed the circumstances that lay behind the company's inability to convert to owner -operator or to ask for a rate increase. He outlined his regrets at having entered into a fixed -price contract. He acknowledged that the service level was icre, butthat interTrans had at least stuck by its commitment. He said the company had trouble getting paid after submitting invoices and cash flow was critical. He said the company had tried without success to get someone to take over Project Mobility contract. He said owner -operator was the growing 'method of cab business, He said that response time was lessened with the system. He asked Council to give his company only thirty days to prove that service level would go up when InterTrans got into that system. Councilmember Fletcher asked if Mr. Peters would discontinue service in Palo Alto if a certificate were given to an additional operator. Mr. Peters replied that he could not legally do so and also commitments had been given to drivers; "My answer is 'Yellow Cab would continue to exist in Palo Alto, in one form or another.'" Alex Romero, 851 Weeks Avenue, East Palo Alto, said he thought if everybody worked together they could serve the needs of the passengers, whose needs were overlooked. He had dispatched and driven cabs for ten years. He thought the cab companies could help each other out when busy times came. Mayor Henderson ascertained that there were no further speakers, and he declared the public hearing closed. Vice Mayor Sher said that as in the past he still favored having a situation in the City where those who wished to go into the cab business could do so. He did not like having the City grant exclusive rights to one company. MOTION: Vice Mayor Sher moved, seconded by Renzel, that Council approve the staff recommendation that 1) the City issue certificates of public convenience and necessity to Mid -Peninsula Cab Company, Incorporated and to Peninsula Cab Leasing Company, Incorporated; 2) authorize as part of Mid Peninsula Cab Company's certificate that the company be allowed to operate a maximum of 15 taxicabs; 3) authorize as part of Peninsula Cab Leasing Company's certificate that the company be allowed to operate a maximum of 13 taxicabs; 4) issue both certificates subject to the conditions that a) financial statements are to be submitted upton the City's request; b) response to all regular stalls for service will be within a mean of 20 minutes. Advance reservation calls (time calls) are to be excluded from this average; c) other conditions as directed by Council. Councilor Witherspoon observed that Council was about to do a complete about-face and she wondered why the City did control the business even to tie exigent of issuing certificates. she eskodff,Pither nf the_tufo are i en; plarxned so bid on the contract for the shuttle service and Project Mobility. Gayle Likens, Department of Transportation, said the City had advertised for bids on both projects. iiaphtali Knox said a request -for -bid had been sent to the Senior Coordinating Committee for yen service__ The change from a ten-day billing pattern to a mthly billing pattern and fixed price service would give some problems. Councilmember Witherspoon said she gathered it was inappropriate to tie Project Mobility to any issuance of certificate for public convenience. Mr. Abrams said her question on that was not now before Council. He thought, however, that perhaps with competition there aright be a possibility of getting better rates --that remained to be seen. 690 6/9/00 Councilmember Eyerly asked if some requirement to serve Project Mobility could not be written into the two certificates to be issued. Mr. Abrams said that Project Mobility was unrelated to issuance of the certificate; if either cab company failed to negotiate on Project mobility it would not be cause for revocation of the certificate. Councilmember Levy ascertained that the only criteria were those set forth in the code; he asked if there was anything in the code related to the safety of passengers. Valerie Lehrkind, Police Department, said vehicles were inspected for safety when ippiication was made for an owner's permit; the vehicles were checked at intervals throughout the year. The code stipulated the drivers' backgrounds had to be checked and possible traffic violations were checked annually. Councilmember Levy noted that ten of 13 companies listed in the phone book were "Yellow Cab," and two were listed for Palo Alto proper. He recounted an episode in which he had called an out-of-town cab to see if it would overstep its legal boundaries --while the cab dispatcher had said he would pick him up (illegally) the cab did not actually come and pick him up (legally). He thought Council'sand-staff's time would be better spent limiting '...our ordinance to elements of safety and allow the free competitive market to take care of itself." He thought it was wrong that the applicant should have to prove a demand existed, and he thought not financial responsibility but performance was the critical matter. He did think the owner operator system should be reviewed. Councilmember Renzel said she had voted for an exclusive permit, so that an operator could have an opportunity to get started in Palo Alto; that had not worked and now she would support issuing an additional certificate, with the hope that competition would provide better service. Councilmember Fletcher asked what the purpose was of limiting the number of cabs to a specified maximum. Ms. Lehrkind said that each applicant had chosen his number. As business improved, applicants would return to add other cabs. Mr. Abrams said the limiting number balanced off the competition. Councilmember Fletcher ascertained with Ms. Lehrkind that the response time of a mean of 20 minutes was set with an eye to lengthening rather than shortening the rewired response time, since in the past cabs had had trouble making pickups expeditiously. Councilmember Fletcher said she would vote in favor of the motion. Mayor Henderson said that in the past some of the equipment had been poorly painted and often dented. He asked that there be good looking cars. Ms. Lehrkind said that the City could require safety standards, but not appearance standards. MOTION PASSED: The notice that Council approve the staff recoeiendatian �rree4�ahr•A ..B tl�aa. certificates, ..A.. .. with _ .__1fa •_- _ e -- for a.st:uze .e of two certii ica esi wi h eueiditions, passed on a� unanimous vote, Counc$lmembers Brenner and Fazzino absent. MOTION: Councilmember Levy moved, seconded by Sher, that Council request staff to simplify the existing ordinance with the'ob,jective of minimizing the taxi certificating process, with the exception of requirements for safety, and refer to the Policy and Procedures Committee for review. Councilmember Witherspoon said she liked the motion. She spoke of the amount of staff time spent supervising the cab operation. She wondered 691 6/9/80 if his motion spoke to that amount of staff time spent monitoring at present. Councilmember Levy said he thought that when the ordinance was modified there would be less call for staff supervssinn. Mayor Henderson said he thought some attention should be paid to the companies' operations --the cab -using public needed some protection. Councilmember Levy said he thought people would simply stop calling cab companies when they did not provide acceptable service, but if the situation became monopolistic again Council would have to take another look. Mayor Henderson said he did want the public to be protected; he was not sure that things that were wrong would work themselves out through competition. Since Senior Attorney Don Maynor had made a thorough report on the cab company ordinance about a year ago he would vote against having another report on the matter. MOTION PASSED: The motion passed on the following vote: AYES: Eyerly, Fletcher, Levy, Renzel, Sher, Witherspoon NOES: Henderson ABSENT: Brenner, Fazzino CONTRACT CHANGE ORDER WITH A:284:0) MOTION: Councilmember Renzel introduced the following ordinance and moved, seconded by Fletcher, that Council approve the following budget amendment ordinance transferring an additional $16,771 from the Refuse Reserve Fund for system improvements to the Refuse Operating Budget for the Eckbo-Kay Associates landfill/park design contract. ORDINANCE 3208 entitled "ORDINANCE OF 1HE TUORTER THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 1979-80 TO PROVIDE ADDITIONAL FUNDS FOR A CHANGE ORDER TO THE LANDFILL/PARK DESIGN CONTRACT WITH ECOO-KAY ASSOCIATES.' Vice Mayor Sher noted that the staff report explained that the ordinance was needed because an error had been made in calculating the remaining time the present dump could take refuse. Had Eckbo4l ay made the error? Dave id , Director of Public Works, replied that calculations made by Cooper -Clark had been in error: Cooper -Clark was absorbing hart of the cost. MOTION PASSED: The motion passed on a unanimoes vote, Councilmembers Brenner and Fazzino absent. RE EST OF COUNCILMEN8ER FLETCHER Councilmember Fletcher reviewed the past discussion or the matter of item pricing; it was concluded there was not a problem because laser scanners were not being used by Palo Alto stores. Since then, Councilmember Fletcher said: a systems in which a code number was put on the can, then rung up at the cash register after the price had been decoded, had been devised. She recounted an episode illustrating how the pricing method had worked with a six-packof beer. The price charged at the cash register had been more than the price listed on the shelf. 692 6/9/80 MOTION: Councilmember Fletcher moved, seconded by Renzel, that Council direct the City Attorney to draft an ordinance requiring item pricing at grocery stores, with the usual exemptions, such as for produce and the like. Larry Sleizer, 460 California Avenue, opposed having Council directing the City Attorney to prepare the proposed ordinance. He spoke of Safeway's move in San Francisco, where there was an item -pricing ordinance, to ,just placing merchandise out in a 'food barn' and leaving it in its ordginal bulk container, with price marked only on the bulk container and in that way cutting down overhead costs for doing the item pricing. He thought Safeway had appealed to the Board of Supervisors and finally obtained an exemption. Mr. Sleizer thought that rather than having an ordinance, customers should complain to the offending merchandiser when such disparities in shelf price and item price were observed. Berkeley Driessel, 259 O'Connor Street, East Palo Alto, Member, East Palo Alto Municipal Council, said he had had an experience similar to Councilmember Fletcher: though the grocery clerk did not know what price the code number stood for, she said the computer knew the price, and she typed the code number into the cash register which then displayed the corresponding price. He said the store in question served a large number of his constituents --he was a counc i lmenber in East Palo Alto. He said such a system made rational and informed choice impossible --it was denied by the computer -keyed price. He thought government's role related to pricing was that of referee or umpire --the consurer should be protected from misinformation. David Midlo, 420 James Avenue! stated that if item pricing were eliminated customers would get back to the point -of sale method of the item -scanner. He had been an engineer at National Semiconductor on the point -of -sale system. He said that he had been overcharged recently and correcting the error had taken 20 minutes. He said that about eight years ago it had been found that cash registers in some New York City A & P stores had been set to overcharge customers in that final addition, because virtually no one added up their totals. A & P had been fined millions of dollars because the cheating had gone on for years and no one had detected it --customers only checked item prices, not totals. He said that he was a merchandiser in Palo Alto; he objected being told by government, in an assumedly free enterprise system, how merchandisers could run their businesses. Councilmember Witherspoon said she did not want to spend the City Attorney's time on the matter --if people were overcharged they should tell the people who worked at the store. She would oppose the motion. Councilmember Eyerly said he agreed with Mr. Midlo's point of view; etfOrts should 00 -_towed br{min® 40Wn_ cQgtt of taact hie _ t#umtnht did not want to inquire&bout are ordinance that would bring amt further regulation, Vice Mayor Sher pointed out that the first discussion on item pricing had occurred in relation to the expiration of a state ordinance on the subject. The present matter concereed possible deception, with one price being posted on the shelf, and another, unknown until it was rung up at the carp+ register. Councilmember Levy outlined his reasons for not wanting to pass a law against a matter that was self-evident. He thought people could change their patronage to another store if they did not like practises of their present store. He thought that passing laws to protect citizens implied to constituents that their problems had been solved for them. He would oppose the motion. Councilmember Renzel noted that shopper were often either too busy or too tired to follow up of emotions abeam. prices. She thought the 693 6/9/80 public deserved some protection --many assumed, for example, that the computer was always correct. Mayo- Henderson said he thought it was illegal to put a shelf price of $1.99 then charge a higher price that was unknown until it was rung up. He asked about the legality of that. Mr. Abrams said there were laws when prices were set with the intent to defraud, he did not know how it applied to the topic under discussion -- he would inquire and report hack to Council. Councilmember Fletcher said the problem was that with no price on the item deception would not be noticed. She thought other cities must have ordinances on the topic, upon which the City Attorney could pattern one for Palo Alto. The cost for item pricing did not enter into the Question -- a sticker had been placed on the item giving the code number --why not give the price itself? She observed that customers did not have unlimited grocery stores among which to shop, for example, there was only one grocery store left in downtown Palo Alto. Vice Mayor Sher emphasized that what Council had discussed sometime back was a different topic from the one being discussed now. SUBSTITUTE MOTION: Vice Mayor Sher moved, seconded by Henderson, that Council refer the natter to the City Attorney for a brief report on whether the law provides protection to the consumer against the sort of practise described in Counciimember Fletcher's memo Councilrnember Witherspoon said she did not think an ordinance was needed. In her experience all the items except the milk were item priced. SUBSTITUTE MOTION PASSED: The motion passed on the following vote: AYES: Fletcher, Henderson, Renzel, Sher NOES: Eyerly, Levy ABSTAIN: Witherspoon ABSENT: Brenner, Fazzino COUNCILMEMBER WITHERSPOON RE Counci 1a ber said that about five years ago then -Mayor Norton had appointed a _ veterans' _ Ruil iron Advitnry Cpmmitt±e: MOTION: Cou cilmember Withersnoon moved, seconded by Eyerly, that Council authorize the Mayor to write a 'letter to Axel Johnson, chairman of the Veterans' Building Committee, and the members Nanking them and d si,01,sny that c ittee he murian passed on a. unanimous voice vote, Counclimembers Brenner and Fazzino absent. AD t iti a �T TTt uc None ADJOURNMENT TO EXECUTIVE SESSION Council adjourned to executive session at 10:40 p.m. to discuss personnel. v 9 4 6/9/80 APPROVE .d yor