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HomeMy WebLinkAbout1980-09-15 City Council Summary MinutesCITY COUNCIL Minutes ITEM Minutes of August 4, 1980 Oral Communications 1) Enid Pearson, 1019 Forest Court 2) Louis Fein, 1540 Oak Creek Drive 3) David Midlo, 420 James Road Consent Calendar Action Items liWgirarrmployee Benefit Claims Administration Contract 1 California Avenue Commercial Area Underground Conversion Contracts And Contracts Between City And Pacific Telephone Agreement For Joint Participation Installation of Underground Facilities System --iii l lview Avenue Award OF Bids And Authorization Of Contracts For Tree Trimming 365 Forest Avenue - Final Subdivision Map Amendment Public Utility Regulatory Policies Act (PURPA) Hearing Process Cable Television Recommendation 0f Finance M Public Vorks Committee Re Phase III For Lytton Garden Request Of Mayor Henderson derson Re Industry Sort For Child Care Councilieember Fletcher *e Santa Clara County Transportation Commission: Meeting To Discuss Proposed Train Schedule Revisions Resignation Of Don Wady From Haman Re l at ions Corr i ss ion University Land Use Mayor Heron Re October Ca c i l Ming Schedu l e City Manager Zane Re Assistant City Manager Position Oral Communications 1) aim Gregg, 2513 Alma Adjournment CITY o� Pe4Lo ALTO Regular Meeting September IS, 1980 PAGE 1 7 6 176 1 76 176 177 1 7 7 177 177 178 1 7 8 1 7 8 1 8 3 1 8 .6 187 18 7 187 188 188 '2.8 8 188 Regular Meeting September 15, 1980 The City Council of the City of Palo Alto met on this date in the Councilchamber at 250 Hamilton Avenue at 7:30 p.m., Mayor Henderson presiding. PRESENT: Brenner, Eyerly, Fletcher, Henderson, Levy, Renzel, Witherspoon (Sher arrived at 8:15 p.m.) ABSENT: Fazzino MINUTES OF AUGUST 4, 3980 Mayor Henderson asked that on page 97, the third paragraph, the word "thing" read instead "think." MOTION: Counci)nember Fletcher moved, seconded by Witherspoon, that Council mpprovee the minutes as corrected. The motion passed on a unanimous voice vote, Couincilm+ er Fazzino and Vice Mayor Sher absent. ORAL C0MUNICATIONS 1. Enid Pearson, 1019 Forest Court, spoke as a giber of the Peninsula Conservation Center (PCC). She read a statement from that organization on the topic of "University Lands Designation, Santa Clara County General Plan." PCC had found "several flaws" in the proposed designation on which hearings were being held. PCC, Ms. Pearson said, asked that Council sena a statement to the Board of Supervisors clearly giving its stand on University Lands Designation, and asking that no certain decision be made until the Planning Co scission and Council of Palo Alto had had opportunity to review the proposed designation. She asked Council if staff could request that no decision be made by the County at its hearing tomorrow, September 16. Mayor Henderson said he thought Council would address that under New Business that evening. Ms. Pearson continued. She asked that Council also delay decision at its own meeting on the Comprehensive Plan revisions scheduled for September 16 until it had reviewed Santa Clara County's proposed plan. She also suggested that use permits applied for by Stanford University be placed on the consent calendar so that anyone of the public could ask that such applications be discussed further. 2. Louis Fein, 1540 Oak Creek Drive, asked that Council reconsider its action of August 4 re the condominium conversion ord i nencee . He said the statement Counc i l had wade, "that the conveers i sour may require the tenants to find other housing and to relocate outside the City, was a substantial change, which he held, therefore, required recos i derat i on of second reading of the cones i n i um conversion matter. He asked that it be placed on the next agenda. He discussed his interpretation of a statement on acceptance of the conversion by tenants sad by the developer, and his irate rprttation of a statement on the same topic wade by Council, saying, he interpreted Council's statement as affording the developer "another loop ole.° 3. David Midi°, 420 James Road, asked that the proposed new bail violations be published to citizens of Palo Alto before they went into effect the first of the year. He also expressed concern about _ the • loss of retail store space downtown, saying some of it was going to office space; he observed that the same thing hard happeoed in Menlo Park, acrd it had upset the busin ss climate in Menlo Park. He did not want it to happen in Palo Alto. He asked if there were some ,way that the Comprehensive Plan could contain provision to stun that tendency. Mayor Henderson said that matter was to be discussed Alen revisions to the Comprehensive Plan were being discussed. 176 9/15/80 1 1 CONSENT CALENDAR - Referral None Action RENEWAL OF EMPLOYEE BENEFIT CLAIMS ') Staff recommends that Council authorize the Mayor to sign the agreement for professsional services management and administration of the City of Palo Alto employee health and dental plan, and approve Lhe employees' dental plan, health plan and retired employees' health plan documents. AGREEMENT: PROFESSIONAL SERVICES MANAGEMENT AND ADMINISTRATION OF CITY OF PALO ALTO EMPLOYEES' HEALTH AND DENTAL PLANS R.L. Kautz & Company CALIFORNIA AVENUE COMMERCIAL AREA - AND LEPHONE (CMR:415:0) Staff recommends that Council accept the low bid of Power -Anderson, Inc., and approve the California Avenue Commercial Area joint construction agreement with Pacific Telephone and Telegraphy and authorize the Mayor to execute these documents on behalf of the City AGREEMENT FOR JOINT PARTICIPATION IN INSTALLATION OF UNDERGROUND FACILITIES SYSTEM IN CALIFORNIA AVENUE COMMERCIAL AREA Pacific Telephone and Telegraph Company AGREEMENT FOR INSTALLATION OF ELECTRIC UTILITY MANHOLES AND CONDUIT SYSTEM -- CALIFORNIA AVENUE COMMERCIAL AREA Power -Anderson, Incorporated AGREEMENT FOR JOINT PARTICIPATION IES Staff recommends that Counc i l approve the Hi 1 l v i ew Avenue joint construction agreement and authorize the Mayor to execute the document. AGREEMENT FOR JOINT PARTICIPATION IN INSTALLATION OF UNDERGROUND FACILITIES SYSTEM ON HILLY IEW AVENVE FROM DOVER STREET TO. ARASTRADERO ROAD The Pacific Telephone amd Telegraph Company ARD OF BIDS AND AUTHORIZATION 1rS" (MCi::412 :0) Staff recces that Council authorize the Mayor to execute contracts with St. Claire Tree Service and Pied Piper Exterminators, Inc,, for tree trimming services. AGREEMENT - -St. Claire Tree Service AGREEMENT --Pied Piper Exterminatees, Inc. 177 9/15/80 365 FOREST AVENUE e (1(L Svt5ulvlS1tN MAP AMENDMENT (CMR:411:0) Staff recommends that Council approve the final amended map. PUBLIC UTILITY RESULATORY POLICIES Don Maynor, Senior Assistant Attorney, recommends regarding hearing procedures to be followed by the Finance and Public Works Committee on Ocotber 14, 1980, at a public hearing to consider adoption and implementation of certain rate melting and utility practice standards for the City's electric utility as set forth in the PURPA act of 1978. MOTION: Counc i lin er Renzel moved, seconded by Witherspoon, that Council adopt the Consent Calendar. The notion passed on a unanimous voice vote, Vice Mayor Sher and Counc i lmenber Fazz i no absent. Mayor Henderson said Vice Mayor Sher would arrive soon to introduce the matter concerning Lytton 'ardens. MOTION: Mayor Henderson moved, seconded by Fletcher, that Council bring the matter concerning cable television forward for discussion at the present time. The motion passed on a unanimous voice vote, Counci lmember Fazzino and Vice Mayor Sher absent. CABLE TELEVISION (CMR:406:0) Mayor Henderson referred to the 6 -page report on the subject of cable television written by Charles McNeely, Assistant to the City Manager, and asked if he had anything further to add. Mr. McNeely said he did not have; he introduced Jack Macuska whose company had perfared the CATV survey. Coon i lr Renzel asked the size of the sample of the population capon which conclusions had been drawn. She noted that the survey results snowed that costs were the most negative factor, and costs could be reduced through effective marketing of desired programs. Ear. Macuska replied that people had so -cad led °free television ue to now, and had some hesitance about paying for programs; about 25 percent of respondents had mentioned cost. Counc i leeaber Renzel ascertained that the survey indicated the nuaber of hours per day a television set was on and did .rot state that it was being watched all that time, given as a national averap.. ;,f 6.2 hours daily. Councibmember Levy asked wh►o had determined that amount of time nationally, and if the average daily number of hours of viewing in Palo Alto of about 3 hours had been determined by asking people. Mr. Macuska confirmed that the national average amount of viewing time had been drawn from a number of sources; the Palo Alto figure had been arrived at by direct perm -to -person questioning. He did not try to determine what the average viewing time ►mss for other unities since service was proposed for Palo Alto only. Usage was not dictated by whether or not charges were more or less. That had been checked by a "completely random" stele. His survey indicated that about 40.94 percent of Palo Altars would subscribe to CATV. He described the method he had used to give at that figure. Councilor Witherspoon asked if the 4 steps toward acquiring CATV would cost the. City may. Mir". McNeely replied that it was proposed that the City retain a consultant for completion of step 1, granting a license to a CATY may„ and step 2, approving licensing !processes.. Step 1 entailed formulating Ira ordineace, , and that required 178 9115/80 someone who had helped with such work elsewhere. That cost was estimated at awout $12,000; it was customary for the CATV company receiving the award to pay that cost. Councilmember Brenner ascertained that the survey had been made by telephone. Was there any guarantee that there would be no commercials? Mr. Macuska said those --being surveyed had not been told there would be no commercials but when questioned people had felt that the possibility that there would be no commercials was a favorable factor. There was no guarantee, however, that commercials would not be used. Councilmember Brenner said she thought that as soon as there were enough ueors of CATV commercial time would be sold. Mr. Macuska said he could not answer that. Vice Mayor Sher arrived at 8:15 p.m. Councilmember Eyerly referred to the following paragraph in the staff report: °Council, will authorize staff, in the event of passage of SB 2827 (that prohibits local control at CATV) to suspend the licensing process and to bring to Council within 30 days a recommendation for alternative courses of action including the possibility of municipal ownership and operation." He asked if, should Council . adopt CATV and should S8 2827 pass, the City's adoption of CATY would be 'grandfathered' in? Also, he asked, if for some reason the City decided to revoke the license and either of the actions had taken place would the City have lost the opportunity for a municipal utility? William 2aner, City Manager, said SS 2827 was pending; it had gone to comittee. Councilmember Eyerly's question had been raised by the National League of Cities, and and the language making the proposed legislation retroactive with all cities that now had CATV throughout the United States, removing the cities' control, was being considered. If language removing control from cities were to be included staff wanted to bring the matter before Council. City Attorney Abrams said that if the license had been issued and if construction of the facility had commenced the City would not then be in a favorable position to rescind the license. Mayor Henderson said that a purchase option could be written into the agreement with the CATY many, however if legislation so dictated the City could buy the business. Councilmember ember Renee' ascertained with * . Abrams that rates for CATV had been deregulated. The City would retain the power" of condsemantion and with that was included the smatter of the fair value of the business, She asked Mr. Macuska where he had drawn names for his random sample. lira I4acuska said that had been contracted out to a local research firm who had used the most recent copy of the telephone book. Councilmember i enze:i noted that Macuska's report had said the average giber of peeple per household was 3.0, somewhat higher than the rational average. She noted that it was a higher average than the City's Planning Department had been using, of 1.6 people per household in Palo Alto. She thought the difference significant since there was thought to be a strong correlation of members per household and likelihood of subscribing. Ken Schreiber, Assistant Director of Planning and Community Environment, said the 1980 census shy ed about 2.3 members per household in Palo Alto. The 1970 cn,sus had shown between 2.6 -and 2.76 members per household. Some discussion ensued on the correlation between likelihood of subscription and whether or not respondents in the survey had heard of CATV and what CATV afforded subscribers. Some conjecture was made from replies to the survey that the higher the income the less likelihood of subscription. Also indicated was that the higher the percentage of males in a household the more likelihood of subscription —respondents in 179 9115/80 the random sample, however, had not been "selected" through choosing male or female names from the phone book. Vice Mayor Sher noted that voter approval was needed to grant a franchise, and the staff had recommended granting a license that did not require voter approval. He asked where the differences were, and also advantages of granting a license. City Attorney Abrams recalled, regarding differences between franchise and license, that in ,3anuary of 1979 he had given Council a memo on the case -law differences, demonstrating there was no clear line of demarcation between the two. The crucial elements were that in most cases a franchise was exclusive whereas a license was granted through an ordinance and public hearing and regulating procedure, and was not exclusive. He continued. A franchise is assignable in nose cases and a license is not. The law generally saw a franchise as a sole permit to do business. Of course CATV needed authorization from the federal government to do business. If Council wished to give a license, the City Attorney's office would have to work closely with administrative staff to use license rather than franchise. Vice Mayor Sher concluded there was some advantage to granting a license in that it gave the City more control; some similar control could be written into a franchise contract as well, however. Vice Mayor Sher asked if Council would make policy decisions concerning shape and structure of CATV in Palo Alto within the context of the proposed ordinance so that negotiable and non-negotiable items would be built into the ordinance. For example, if Council were to decide now many hours of the day CATY would be operating or how many lieeseholds or what percentage of the City would have to be covered —were those to be built into the CATV ordinance? Mr. Abrams replied that those matters were within the discretion of Council and could be considered by way of ordinance or by way of contract adopted pursuant to the ordinance. For example, a portion of a consideration could be in the ordinance yet the detail would be in the actual contract: the ordinance could say all of Palo Alto had to be served by CATV yet the contract would set forth a construction schedule with certain porti=.rts to be constructed within a certain time frame. The adoption of the ordinance wrss an important portion of the adoption process; adoption of the ordinance would beondertaken independent of specific proposals. Vice Mayor Sher asked if Palo Alto would "go it alone" on developing an ordinance, since staff had stated there were tso advantages or disadvantages to working with other communities; he noted that Menlo Park -San Mateo group had already developed its ordinance --if Palo Alto bought into that group it would also have to agree to policy d ec i s i ons already made by t hemr . Alison Lee, 1241 Harker, spoke as a citizen in support of CATV. She said Palo Alto fostered its utilities system, and she thought a municipally supported CATY systems might be more economical in the long run. She saw that the City could to a leader in community oriented TV, televising, for example, school board meetings and the like. David Harris, 2121 Sterling Avenue, Menlo Park, expressed interest in the computr'r aspect of CATY. He thought that a suitable medium could be found for liberal citizens to give direction to a new kind of technological influence for goad; as a computer hobbyist he foresaw creation by entrepreneurs of methods of sending mail --e message-switch'ng system, he called it, now donee rather slowly and expensively by telephone. He had asked that such a possibility, through reeer et1on ef a channel, be provided for in the forthcoming Menlo Park system. He thought highly educated Palo Altans, for example, could make use of an on -demand news channel and one giving information about products. Such provisions would make possible a software explosion comparable to the hardware explosion of past decades. Mayor Henderson asked for confirmation of the statement in the report of the survey !*. $acuska had caused to be taken that 49.1 percent of Palo Altans"had expressed strong interest in the activities of their elected City Council. Mr. Micuska said those respondents had expressed interest --he did not know if they wanted to watch Council meetings on television; the interest, for ample' could manifest itself through attendance at !ti , rather than staying home and watching the proceedings. 180 9/15/80 MOTION: Councilmember Levy moved, seconded by Sher, that Council approve the following staff recommendations: 1) Council direct staff to begin the process of granting a license to a CATV company or municipal ownership of CATV to be approved by Council; 2) Council approve the licensing process. if approved staff will submit to Council time schedule for completion of the project; 3) Council authorize staff, in the event of passage of S8 2827 (that prohibits local control of CATV) to suspend the licensing process and to bring to Council within 30 days a recommendation far alternative courses of action including the possibility of municipal ownership/operation; 4) Council direct staff to retain an external consultant experienced in the CATV field to assist in theeoss?ble licensing process. Specific duties of the consultant would include assisting in developing a CATV ordinance and request for proposals, then reviewing requests for proposals and making recommendations to Council and staff on proposals submitted by CATV companies. Further, it is recommended that Council authorize the retention of a part-time temporary assistant to coordinate the CATV project for the City Manager's office. Specific duties will be to work directly with the CATV consultant and other staff members in developing the ordinance, coordinating development of requests for proposals, assuring interested citizens, groups and institutions (Stanford, Foothill College, etc.) a means of participation in the foundation of the CATV system and keeping abreast of legislative changes with respect to CATV, Step 1 A. City Ordinance --An important step in the licensing process would be the deveTopmen of a CATV ordinance. (Palo Alto currently has no CATV ordinance.) the CATV ordinance would delineate the rights and responsibilities of the CATV company and set forth the regulatory procedures the City would follow during the life of the license. The ordinance also would include regulations imposed by the FCC (Federal Communications Commission) and the state. A copy of the ordinance would then be sent out with requests for proposals (RFP's) to allow competing companies to have full knowledge cf the provisions that may affect their proposals. TIME: 1-2 months. B. Develo ent and solicitation of a CATV Pro osal - Once a CATV ordinance has been drawn up an unc as ma ec s ons on po cy ssues, the City can prepare and send out Requests for Proposals (PFP's). RFP's would consist ofaapplication forams, instructions to applicants, the City's CATV ordinance, all policy decisions by the Council, negotiable and non-negotiable features of the license, and the criteria for proposal evaluation. One of the key components of the RFP would be the pro forma financial data which allows the City to evaluate the competing CATV companies' financial.commitments to the proposed project. TIME: 4.6 months. Step III C. Evaluation of Pro sals--After all proposals are received by the City they are them gv a a se one CATV company. The evaluation process would lo* at: 1) Completeness of proposal. 2) Compliance with policy determination by Council and CATV ordinance requ i r rts 3) Financial soundness. 4) Evaluative of the proposed system design and engineering. This process rill serve to pinpoint the bids which exceed, equal) or fail, to meet City standards. Further information or clarification may be requested from applicants. This process will probably take 4-6 weeks. O. Council approval (or rot -approval) of recommended CATV company. TIME: 1 month. Counci somber Levy said that if companies decided Palo Alto's request for proposal were worth their tae, Council would have offered Palo Altans another use for their leisure time; it would be a positive service available to them. Ne acknowledged that the technology was cbau g i ng, but he thought Council should move ahead nonetheless. 181 9/15/80 Vice Mayor Sher said he thought CATV had arrived, though it was always improving and though some jurisdictions had had trouble with franchises or licensees. Palo Alto would try to guard against those problems. He emphasized that the consultant should be aware that Council wanted him or her to review the entire range of possibilities such as provision of civic and cultural events message -sending capacity, and the like. — Counci lmember Brenner said she did not think the survey represented real demand by Palo Altans. She favored having a public vote and that would be required for a public owned system The service would cost money --it might fail and the City might have to buy it out. The public should know those things. She pointed out that legislation on CATV was pending and that should lead Council away from being in a hurry. The City's utility system would be used for the cable installation and Council would be held responsible for associated problems. Though she was indifferent to CATV personally she was willing to support it if she thought people wanted it --she had interpreted results of the survey as being very lukewarm. Councilmember Eyerly said he asserted the consultant would, early -on, give Council advantages and disadvantages of a municipal utility -purveyance of desired services. Could that be done? William Zaner, City Manager, replied that a consultant would not be asked to do an analysis of a municipal system; however, if what was desired from CATV could not be obtained through a commercial system Council would be told so that it could pursue other directions. He asked that in Step IV the word "possible" be inserted, so the phrase would read°possible licensing process," and also included in Step I so that it would read "process of granting a license to a CATV company or municipal ownership of CATV to be approved by the City Council." Mr: Zaner said staff mould work with the consultant on that and the general question and return to Council with status reports. Mayor Henderson said he accepted the proposed additions if they were not asking a consultant to initiate a study of municipally owned vs. privately owned CATV. Counci lmember Fletcher said sht was surprised the number of people in the community interested in CATY was as high as 40 percent, though she knew a significant number of residents did wish to have it. She thought Palo Alto had the benefit of the esperience of other communities with CATV. Mayor Henderson agreed with Counci lme er Fletcher. H added that television was not a utility and it was instead a communication media. Couniber Renzel said she found flaws in the survey, one of which was the purported number of people per household. She observed that residents wanting CATV would be spread throughout the City, and wiring would have to be widespread to serve the stated 40 percent of residents who eight subscribe. It would be a gigantic undertaking, and the market was, she thought, weak. Coun 11ber Fletcher ascertained that 20 percent of the City's utilities were underground most of them had capacity for CATV; existing above ground system could be used as i s. NOTION PASSED: The motion, as added to, passed on the following vote: AYES: Eyerly, Fletcher, Henderson, Levy, Sher, Witherspoon IDES: Brenner, Menzel ABSENT: Fazzino 1 1 1 1 RECOMMENDATION OF FINANCE AND PUBLIC WORKS COMMITTEE Kt vw t I A I rUR TT TUN ' Vice Mayor Shers Chairman of the Finance and Public Works Committees said it had been proposed that Council facilitate the issuance of $9 million in hospital revenue bonds, proceeds of which to be used by Community Housing Corporation to build 120 -bed skilled nursing facility at Lytton Gardens; the proposal was known as Phase III. The City had already guaranteed a loan made by Community Housing Corporation, so the first recommended action was to permit Community Housing Corporation to draw down the remaining $58,000+ from the lender, and then that Council authorize an expansion of the City guarantee in the amount of $350,000 to enable the corporation to borrow that amount to make the next interest payment at a favorable interest rate by expanding the guarantee of the loan. Finally, Council was asked to authorize the sale of $9 million of special obligation revenue bonds for construction of the nursing facility. This last action gave rise to :a member of questions. It was the first time the City had been involved in the issuance of such bonds. His committee had been concerned about the role of the City --would the fact that its name was on the bonds affect the City's bonding capacity in the future? Was there a chance that the facility might be sold by the present non-profit Community Housing Corporation to a profit -making corporation? What might the effect of the Gann initiative, limiting goverment spending, have on possible issuance of the bonds. Vice Mayor Sher said that in Councilmembers' packets was a letter addressing those questions written by Community Housing Corporation attorneys --the City Attorney had also addressed the questions, and the answers had been satisfactory: the Gann Initiative, for example, did not affect bond issuance; the City had no potential liability on the bonds even though it was designated as issuer of the bonds. There was one mote possibility that if the project should fail and have to be liquidated and trustees should try to realize on the assets there would be a process to be gone through of looking for a buyer. But if Phase III went through as contemplated the resulting facility could not be sold to a profit -making corporation because the Internal Revenue code requires that to take advantage of the benefits of the procedure the facility had to be operated by a non-profit corporation, Vice Mayor Sher said he concluded risk to the City was minimal and he thought the City had an opportunity to participate with the non-profit corporation to provided additional benefits for seniors with much -needed health care on site. MOTION: Vice Mayor Sher, an behalf of the Finance and Public Works Committee, introduced the following committee recommendations, and moved their adoption by Council: The Finance and Public Works Committee, on a unanimous vote, Brenner and Eyrerly absent, Sher, Levy and Henderson making a quorum, recommends to Council r, ga'ding Lytton Gardens, Phase IIi, that Council: 1) Authorize Community Housing, Incorporated to draw down the remaining $58,703 of the December 1977 loan from Security Pacific Bank; 2) Authorize an expansion of the City guarantee of that loan by $350,000 under terms stated in the staff report; and 3) The Finance a i Public Works Committee approves of the concept of selling $9 million of City of Palo Alto Social Obligation revenue bonds for the construction of a 120 -bed skilled nursing facility and recommends that Council authorize staff to begin the legal process to sell the bonds. RES LUTIO# 5835 entitled *RESOLUTION OF THE COUNCIL OF THE CITY Of PALO ALTO AUTHORIZING A GUARANTY AGREEMENT COVERING CERTAIN OBLIGATIONS OF COMMUNITY HOUSING, INCORPORATED.* GUARANTY AGREEMENT —COMMUNITY HOUSING I NC . , Security Pacific Nationa"i Bank and Community Housing, Inc. RESOLUTION 5836 entitled "RESOLUTION OF THE ' r"T'!CITV OF PALO ALTO CONCERNING I5SUAACE OF REVENUE BONOS TO FINANCE EXPANSION MD RENOVATION PROGRAN OF LYTTON GARDENS. INC.* 183 9/15/80 VRDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO PROVIDING FOR THE CITY OF PALO ALTO HEALTH FACILITY FINANCING LAW INCLUDING GENERAL PROVISIONS AND DEFINITIONS, POWERS AND PROCEDURES TO ISSUE REVENUE BONDS FOR THE PURPOSE OF PROVIDING FINANCING TO PARTICIPATING HEALTH INSTITUTIONS FOR SPECIFIED PURPOSES, ANO CERTAIN OTHER SUPPLEMENTAL PROVISIONS Mayor Henderson noted that Ken Schreiber, Assistant Director of Planning and Community Environment, had been the staff member who had worked on this project with others. Mr. Schreiber said staff was quite sure the proposal would have minimal effect, if any, on the City; he thought the needed facility was very worthwhile. Councilmember Renzel asked if the property hed been zoned P -C as Lytton Gardens was at present. Mr. Schreiber replied that the zoning at present was RM 5, there had been no change in the zoning. With convalescent facilities there was conditional else. The project had had Architectural Review Board approval and had received a use permit in the spring of 1980. There were to be 66 underground parking spaces, somewhat above the number required by code. Councilmeber Renzel said the projected cost sea=red very high for convalescent facilities. W. Schreiber replied that the facility was planned to provide a continuation of the health care Lytton Gardens had been providing. Twenty-four hour skilled nursing care would be provided. The facility would not function as a hospital. Counci member Renzel asked if it were still contemplated that the facility would afford opportunity for residencies and training of paraprofessionals. Horace Nealey, executive director of Lytton Gardens, said the planned facility as definitely not a hospital facility; it would be licensed with the State of California as a skilled nursing facility, the classification being almost synonymous with "convalescent facility" with the state. The term "skilled nursing* came into being with the Medicare Act and the federal health insurance program. Councilor Renzel noted the high costs, about $90,000 per bed. Mr. Nealey replied that a major determinant of cost had ben that the site to be built on was restr°icted--underground parking required excavation; also, the multi -level building required Type 1 construction, and added to that were earthquake requirements. Palo Alto was an expensive plane to build, he said. The land had been expensive. One helpful factor was the possibility of obtaining taxeexempt bonding through issuance by the City. Mr. Nealey said a►+other factor that increased the cost was that more than just a skilled -nursing facility was planned; the second use of the building was to be as an adult daycare health center, with about 5000 square feet devoted to chat program on the first floes of the planned facility. That space would accommodate about 30 petients daily. Full meal service would be provided at noon. Quite an extensive therapy center was to be built for rehabilitative work, audiology, social services, physical therapy. Usually such services were not afforded by a typical nursing #. People to be served by the therapy center would be from the community. Only about 'O beds would be rewired, at the most, by L,httof Garden residents --the other 100 beds would be available to the community; that was also true with the aduZ daycare program. Some space was to he used for students --the space could afford a teaching environment, for it was anticipated that a relationship would be developed with Stanford Medical School and hospital to offer multi -disciplinary programs for nurses, physical therapists, and the like. Counci 1member Renzel ascertained that those proposed educational uses had been included in the use permit; that had been one of the reasons for having additional perking spaces --they thought the parking would be adequate for all uses. 1 8 4 9/15/80 Councilmember Brenner said the minutes for the finance and Public Works meeting on the subject had been very helpful. She noted the high cost per bed, and she wondered what costs would be to patients at Lytton Gardens and how the difference from cost paid by Medical and the actual costs were to be made up. Since the facility served the entire community would the cost be borne by the community? She said she had investigated per diem costs in nursing facilities in the last year, and she had found significant differences among them. Mr. Nealey said a financial feasibility was in the process of being developed. Booz, Allen and Hamilton were doing the work. An earlier survey had shown that good -to -excellent convalescent services in thie area ran about $65-$80 per day for skilled nursing beds; semi -private ran about $45-$50 daily. MediCal currently reimbursed charges at $36,83 per day. If Lytton Gardens had the proposed facility available for use ,at this present time it could operate on those rates, with approximately 15-20 percent MediCal mix, the rest to be private and semi -private patients. Since the facility would not be operating until 1983 those present-day rates could be raised by about 10 percent per year. Depending upon the feasibility study, as many MediCal beds would be provided as costs would permit, however, many costs, such as mortgage payments, were fixed. He thought that kind of fee structure would assure that the $9 million could be paid off. Coenci !member Brenner said she thought the costs of $65-$80 were higher than those she had found being charged hereabouts. Councilmember r Renzel asked staff if a provision had been made that once the bond had been paid off the facility would be made available to low and moderate -income people. Mr. Abrams replied that inclusion of that provision had not been discussed. He also did not know what obligations there were to the State of California, which acted as guarantor of the loan. He thought those kinds of questions should be addressed before raking inquiry as to what kind of limitations right be available after retirement of the bonds. Councilmember Renzel said she felt that if the Council were to place the credit of the City behind the proposed project it should be for something other than just a market -rate project. It should be of benefit to low -and -moderate -income people. The elaborate facility, the way it sounded now, was goig to be occupied by only about 15 percent low -and -moderate -income people. She thought there ought to be ultimate, if not imaediate, benefit to low -and -moderate -income people. Mr. Abrams said that the step Council was being asked to take was preliminary, the City had the right to evaluate its position again, after giving this preliminary approval, prior to actual issuance of the bonds. He thought it was understood clearly between Lytton Gardens and City staff that the City reserved the right to evaluate its position as the time for actual issuance of the bonds drew near. Councilmember Renzel said she thought it was good to have suggested, even at this preliminary step, that the City wanted .woe ultimate public benefit. AMENDMENT: Counc i !member Renzel moved, seconded by manner, that Co nc i 1 make its approval of the issuance of the bondS conditional upon the ultimate use of the f aci 1 i tyto be primarily for low -and -moderate -home people. She explained that by 'ultimate°, she meant when the bonds were paid off. Mr. Nealey said the bonds would be issued payable within a 30 -year periods he thought he could safely speak for the board in saying that the board's desire was to provide to the maximum extent feasible for the care of low -and -moderate -income people. That was the whole purpose behind Lytton, Gardens, hesaid. He said it was an unfortunate fact of life that mechanises for paying for health care were entirely different from those for subsidizing housing. Some snafi'nursing hones could break even on the Med i Cal reimbursement rate with 100 percent lied i Cal patients, but they were old and substandard facilities atose mortgages were now paid off, and provided the minimum healthcare required by state licensing --,provisions, Lytton Gardens wanted to provide better care and it would certainly provide a better facility. A basic desire was to provide more than custodial care; it was hoped that rehabilitative cue could be provided and patients returned. to their own _ 1 i fe styles and lames rather than becoming permanently institutionalized. - If inflation continued a larger proportion of beds 185 9/15/80 . could be given to low -and -moderate -income use; he knew the board intended that after the mortgage was retired. Counci1member Witherspoon said she felt the amendment was well meant, however she did not want to impede an organization that had a very good track record and very good intentions. She thought that intent had to be trusted. Counci lmember Eyerly said he was reassured because he knew what kind of an organization it was and that it would provide low -and -moderate -income facilities after the bond was paid off. He also thought board action would be required and the board could not respond if the amendment were made that evening. For those reasons he would vote against the amendment. Counci lnanber Brenner said she thought the amendment represented the goal of the City —she thought the board agreed with that goal and she saw no harm in re -stating it; in 30 years it would not bind anyone. The reason for purchasing the old Lytton School had been toward fulfilling the intent of providing healthcare for low -and -moderate -income care for elderly. Councilmember Fletcher observed that with the high per diem cost some of the group for whim such a facility had been inteded would be unable to afford it. She would like to see the amendment read "...as many low -and -moderate -income people as was financially feasible." Vice Mayor Sher said he would like to see in the documentation on the bonds a statement that Mr, Nealey hzod made about the goal of the Cor unity Housing Board was, then Council could take a look at that wizen it returned. He did not want to make Council's vote that evening conditional< Vice Mayor Sher said he would like to see in the documentation on the bonds a statement that Mr. Healey had made about the goal of the Community Housing board then Council could take a look at that when it returned. He did not want to make Council's vote that evening conditional. Mayor Henderson said he did not want to say now what should take place in 30 years yet he favored having a statement included such as that made by Mr. Nealey about community goals. AMENDMENT FAILED: The amendment failed on the following vote; AYES: Brenner, Fletcher, Renzel !NOES: Eyerly, Henderson, Levy, Sher, Witherspoon ABSENT: Fazzina Councilmember Renzel expressed her concern about the high market -rate costs to be made for the many activities proposed for the facility. She would abstain frcm voting on the pre 1 im i nary approval of the bonds and see what the next course of action was - to be. MOTION PASSED: The motion that Council approve the recommendations of the Finance and Public Works Committee, and adopt the resolutions and ordinance, for first reading, passed can the following vote: AYES: Brenner, Eyerly, Fletcher, Henderson, Levy, Sher, Witherspoon ABSTAIN: Renzel ABSENT: Faux.iro Mayor Henderson said that at a meeting of representatives of the child care program and representative from local Industry„ ' that he bad hosted„ presentations had beet wide by Christine Doan and Counc4leember Faztino, who is liaison to the child care 186 9/1500 prograer. Frank !loch; Director of Community Affairs at Syntex? had written the City in August to say that Syntex, with a site coverage restriction of 15 percent for buildings, is not eager to provide space for child care or any other social needs Correction facilities. Mayor Henderson should now be referred to the Policy and Procedures See Pg360 committee. He said Sunnyvale had succeeded in establishing city -sponsored centers.1O/27/80 MOTION: Mayor Henderson moved, seconded by Fletcherthat the matter of industry's participation in the Palo Alto -sponsored child care program be referred to the Policy - and Procedures Committee. The motion passed on a unanimous voice vote, Councilmember Fazzino absent. Councilmember Fletcher asked that staff provide the committee with information on what other communities, such as Sunnyvale, were doing on the question. COUNCILMEMBER FLETCHER RE SANTA CLARA SCHEDULE REVISIONS Correction Councilmember Fletcher said that revisions worked out with CalTrans and the three See Pg360 transportation commissions participating were going to be presented. It was a concept 10/27/ known as "the reverse commute." Heretofore scheduling had been for the convenience of $0 commuters to San Francisco in the morning. The reverse commute as proposd would make scheduling equal in both directions with on -the -hour leave times from San Francisco and from San Jose; trains, however, would continue to skip different stations on different runs. Trains would not leave after 8 p.m, if the schedule were approved. A public hearing on the matter was scheduled for September 16 at 7:30 p.m. at the Board of Supervisors meeting room in San Jose. A final hearing would be held in San Francisco sometime in the future, by CalTrans and the Public Utilities Commission. Mayor Henderson said he thought it would be a real disservice to eliminate late trains for those who attended events in San Francisco. Councilmember Witherspoon said she did not want to lose trains on Fridays Saturday and Sunday nights. Councilmember Renzel said she hoped changes made in the train schedule would coordinate with City bus schedules; two -minutes adjustments might only result in great disruption. Correction MOTION: Councilmember Fletcher moved, seconded by Renzel, that Council authorize l g360 Mayor to write a letter to CalTrans giving views on desired scheduling. The ?motion passed can a unanimous vote, Councilmember Fazzino absent. RESIGNATION OF ION WAY Fib ram wEeoura6. clommmatIN Mayor Hendersonm noted that Council had received a letter of resignation from Commissioner Don Way of the Human Relation Commission. MOTION: Mayor tenderson moved, seconded by Levy, that Council accept with regret me. D Way's resignation, and direct. the City Clerk to begin the process of selecting candidates to fill the vacency-created by Mr. Way and other commissioners whose terms end this year. The motion passed on a unanimous voice vote. UM I VERS I TY LAND USE Councilmember Renzel recalled the oral communication concerning adoption by Santa Clara County General Plan of Stanford University Lands use. MOTION: Coins i imember . Renzel moved, seed by Levy, that Course i l commmm>mun i c ate to the County Board of supervisors on September 16 the request that it withhold action on University Land Use designation until the City of Palo Alto has had an opportunity to discuss the issue. The motion passed on the following vote: AYES: Brenner, Eyerly, Fletcher, Henderson, Levy, Renzel NOT PARTICIPATING: Vice l ayor Sher, Councilmember Witherspoon ANT 'mina 187 9/15/80 MAYOR HENDERSON RE OCTOBER COUNCIL i 171Ea J . 11JULt Mayor Henderson noted that several Councilmermbers might be absent for the October 20 meeting and Monday, October 13, was the Columbus birthday holiday. He did not think it wise for Council to miss two consecutive meetings. Hearing no motion to the contrary he said that only the October 14 meeting would be cancelled, due to an F&PW Committee public hearing scheduled for that day. CITY MAR 'AMER RE mrsrprirrriamon POSITION Mr. Zaner said he had placed as an item on the Co+.inc i l ; s next agenda a resolution confirming the appointment of June Flaming as Assistant City Manager. Ms. Fleming would transfer from the library to his office within the next 30 days. Mayor Henderson congratulated both people on the choice. Mr. latter reminded Council that only people now employed by the City had been considered. Any of the seven applicants could have done the job and Ms. Fleming had been chosen. He emphasized that all applicants were highly qualified and ca'npetent. He praised his predecessor for building that kind of staff. ORAL COMMUNICATIONS 1. Jim Gregg, 2513 Alma, said he had much static with his television at the Alma Street location near the railroad tracks. He woedered if that ;arm trouble would occur with cable television. He added that the signal going out from the ITT property at Bay sore also gave a constant beep on the television, AWOURNMENT MOTION: Counci 1mranber Renzel moved, seconded by Fletcher, that Council adjourn. The motin passed on a unanimous voice vote, Councilmember Fazzino absent, Council adjourned at 10;15 p.m. ATTESTr r. 2 y 188 9/15/80 APPROVED: 1