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HomeMy WebLinkAbout1978-02-21 City Council Summary MinutesRegular Meeting February 21, 1978 ITEM PAGE Agjouraed ?ieetina of Februarz13, 1578 7 0 8 Home Wea Cheri za tiori Program 7 0 8 Request of Councilmember Fletcher re 8P 844 ('Holmda.1) Truck Weight Fees (Continued from 1/23/78) 7 1 4 Request of Councilmember Witherspoon re Palo Alto Unified School District (PAUSD) Drug Program Proposal (Continued from 1/23/78) 7 1 Request of Councilmember Eyerly re flouting 7 1 6 Pecess 7 2 1 Request of Councilmember Eyerly re Stanford Hospital 7 2 1 Request of Councilmember Care?;, Clay, Eyerly, Farzino and Witherspoon re Reporting of Costs and Tours for City Staff Reports 7 2 2 Request of Councilmember Clay re Tree Trimming Services 7 2 4 Oral Communications 7 2 4 Adjournment 7 2 4 Regular Meeting of February 21, 1978 7 2 5 Oral Communications 7 2 5 Execu i va Session 7 2 5 Request of Councilmember Carey re Jarvis -Gann Initiative 7 2 5 Tax Forums--Neoting on Jarvis -Gwen initiative 7 2 5 Request of Counoilmember Witherspoon re Guidelines for Considering Proposals from Private, Non -Profit Corporations 7 2 6 Request of Mayor Sher re Review of Travel Ssp nse Policy 7 2 7 Cont3nuaanco of Agenda Items, Five, Six and Seven 7 2 9 Adjournment to Smisoutive SO48100 7 2 9 Adjournment 729 707 2/21/78 February 21, 1978 Adjourned Meeting of Feb uary 13,( 1978 The City Council of the Ci February 13, on this date, ty of Palo Alto met in the adjourned meee ti ng of t 7:35 p.m., with Mayor Sher presiding. PRESENT: Brenner, Carey Clay, Eyerly, Fazzino (arrived at 10:35 p.m.). Fletcher, Henderson, Sher, Witherspoon HOM WEATHERI ZATZON PROGRAM (CM: 141 :8) Ed Agbjayaan, Director of Utilities, said three motivations led to interest in a hie weatherization program: 1) Governmental and regulatory agents, through the National Energy Act (?EA), required utilities with annual sales in excess of 750 million kilowatt hours (kvh) to prove;:de, residential custemers with a retrofit home weatherization program, The General Accounting Office (CAO) was conducting a study in the Western Area Power Administration to review various policies to recommend to the President, Congress and Secretary of Energy toward conservation: one of GAO's principal areas of interest was a program to "penalize" or charge higher rates to suppliers of energy that did not have a conservation program; State Public Utilities Cammlzsion (Pt1C), which regulates the wholesale: price paid for natural ga., stated that imme- diate efforts toward conservation were necessary and in the public interest. PVC also promised they intend to make vigor and effectiveness of utilities conservation efforts a key question in future rata proceedings. 2) Weather.i- za;ion is a good investment, the casts of which are subatantia&ly offset by lower utility bills, the single most effective conservation tool available, both from the etaandpoint of the City being able to obtain maze favorable rates and the consumer achieving more comfort. 3) Over the past two years both community end Council had indicated their support of such a conserva- tion program. In 1976 the ei ti tens' C i ttee on Longterm Power Supply Alternatives, said the City should develop and execute an aggressive and comprehensive conservation program with a possibility of the City advancing c&pitai hard equipment modifications to provide appreciable energy s�sv�ings, Following that recommendation in June, 1976, Council approved in concept the outlining of a hose weatherization program with a utility pay -back mechanism as ono of the components of that program. Staff had dorm so, and was s enthusiastic and ready to go on the prosy,: aara. He .i: tro- duced Connie hex, Resource Conservation Program mtnaager, to give more detai is . Connie SMyser, manager of Resource Conservation PTP2Talte, sand "ma meant inamlating ceilings, along with caulking and other :elated to increase efficiency. Her depart had assessed need of such i ng among homes in Palo Alto. ,fit homes, she said, had ,bin bw i t pre -energy -conscious days. A surer showed 40 percent of such: homes at present aninsulated, but insulate/ale, savings from which would be significant enough to aestivate homeowners. Some insulating ccmpenios were too opportunistic in their urges, and some loans charged too high an interest, Palo Alto's weatherization had many positive aspe `ts, from insuring grIlity of materials to combining all the beet aspects of weatherising programs, along with insuring g that weatherising 1i ed building oodles. Palo Alto's program provided for longterm payback, a do- i t-yoarz.l f Progratgi And base consul to t;1 on service covering pot only method e of insulation but &Leo possible financing methods. The mart to the City of the vea.►therimation program for staff and materials was 884,000 . Of that; $21,000 hod already been budgeted, with a possibility of obtaining a grant from the state or federal goer of $14,000 a year; about $25,000 tO $18,000 could also he rated if the City added two gets per therisine AS LIMO e aaaatheri z = In were 7 0 8 2/21/78 square foot to the contractors' prices. She gave estimates on the number of homes which would be weatherized, for an estimated savings of 1 rtt.illion therms, resulting in ?nnual dollar savings of about $200,000 per year. Sharon Kruse of the Resource Conservation Program listed the steps to be covered in the program: 1) home consultation; 2) do-it-yourself packet; 3) option involving utility bill payback; and 4) certification f weatherized homes. Requests were initiated by customers, a City consultant would explain the program and its options, with the customer to contact the City when and if ready to embark or the program. Calculations would be made regarding savings on individual customer utility bills. The final step was certification. The process she had described, she said, was given on a flowchart Council mbers had in their packets. Corrected see page 836 Councilrmeber Clay praised the concept of the home weatherization program but he w•.as concerned that public agencies became involved in the private sector interests, that is, lending institutions and contraccors for w eetherization materials and services. In the matter of contractors, selection by the City of some contractors over others would be disruptive. MOTION 2'b REFS_?: Counci1neiiber Clay moved, seconded by Carey, that consi dera ti on of the home we a Cheri za t : on program be referred to the Policy and Procedures Committee for is consideration. Gordon Gill of the State Energy Co riission, Sacramento, complimented Palo Alto on its energy program, which, in relation to other cities, was forerost for its size, in the country. The state, through the Northern California Power Agency (NCPA) had a grant, which enabled the conservation program to .be paid for. in the beginning, Leith federal money. A National Energy Act (NE4) was pending passage, and it mandated both gas and electric utilities companies to be in the insulation business. The federal grant, then, was seed money. The cencezn about possibly harming local contractors was not likely to cave about for experience had shown t at•aii contractors' businesses profited from the program in general. If Palo Alto did not avail themvelves of the grant moneq, it would be offered to Santa Clara. Palo Alto's competent staff, and the Citg's awareness of current problems, made it the favorite for receiving grant money. Patric* Ryon, 1200 Dale Avenue, owner of Alpine insulation, said that as a contractor he liked the City's program for choice of contractors "eliminates the rip -of, artists" and would not hurt contractors. Mr. Aghjayan gave reasons for "going with the program ►." Delay would sin fewer his would be winterized by the winter to ; another. reason to move on the proposed City program would be to avoid having the National Energy Act (NEA ate their own program, for the City's program would be "grandfa then ,d" in when the MBA was put in forces PG&E was ready to offer its own program, and Palo Alto wanted to offer its resident s a better program than PG&Zs. If Palo Alto. were the f1 st M PM city to implement a program they would receive $5000 start-up costs. Ths City Utilities Department had bon developing the proposed program for 21 months and it was a good one. Connie Sayser acid the City's bidding process mould bring contractors in to bid on_ R-11 and R-29 rock trawl, fiberglass and cellulose materials. It had been planned so that contractors would be able to work to their capacity, those who could effici ntl y do tan insulations and those who could do 200 would receive jobs accordingly, in a fair man=ner. Mr. Aghjayan said it 'Y?ss expected that the City would work with between six and nine, contractors, , and they would follow specific procedures on bidding and ttlike. 7 0 9 2/22/70 Mayor Sher observed that President Carter would be pleased if the National Energy Act were adopted as soon as Mr. Aghjayan anticipated. Cotncilrrrember Witherspoon asked about provisions for bad debts and people who had contracted for insulation and then moved from the home before payment was completed. Ms. Smyser said that less than one percent of bad debts were expected; Should someone who had ordered the insulation move, a provision in the contract required that payment be made in full with the final bill. Eichler homes were not at the present time considered insulatable under the present program; they might be included later. Vice Mayor Brenner said that since the City was in the utility business it was wise to undertake the weatherization program. Would consumers be able to choose their contractor and in that way avoid possible personality oonfl i ct? Ms. $myser said the City's low bid process acrd the wind of ins'siation used would limit which contractor was used. Council. ember Henderson said he thought the report was very complete —he foresaw no benefit from referring it to committee. The program'benefited citizens and also saved energy resources and he thought Council should vote in favor of it that evening. Cauncilmewber Eyerly said he understood NCPA was going to give grant money to four cities ---the first city that adopted an energy conservation program was to receive an award of $5000. Mr. Gill said the first city would be a recipient of training, recorputerixing the billing process, and a few other such start-up costs which would lead to the program becoming self --sustaining. Subsequent cities entering the program would not have their start-up costs paid for by the program. The Federal Governament intended to develop a staff to serve all cities and the condition Was that there be a wrea t he ri xa tion program; for of ti es were to be discouraged from working "wi l l y ni l l y for new generating plants unless they absolutely needed thee." It Palo Alto elected to adopt the program there would be a $14,000 grant, for about one-half a person year. It was not yet known if that would be available to other cities, for it was a matter of negotiation --the $14,000 that might go to Palo Alto would establish a precedent thai. might or might not prevail for others. Co unciJ*r M3erly caid that Mt. Gill had sail' at the MCPA conference at Lompoc that four cities would rive befits --hie felt Palo Alto was perhaps being swba t stameded--the matter, ter, ► thought, probably should have gone to committee originally, for the Council had already spent an hour on it and he himself still had questions. What was the deadline? Mr. Gill said the dead1Ls was arrived at when the National Energy Act was passed, that was pr,'_lictv"d to be in one month. Councilmember syerly raised the question of liability --e newspaper article had said that it was not known whoaae maternal was fireproof; on the r a t tear of granting loans, he had formed that banks were "only too eager to finance small amounts* and ha favored working the program through . private institutions rather than through the City; he said he wanted to see the specifics on the City's; method of qualifying and selecting contractors; he wanted more information on the operating costs of the program, was it to be a City service or was it to be added to the consumer's mot? AS would favor, in view of his questions, sending the proposed weetherisatiom program to oommdttes. 7 1 0 2/21/78 Mr. Gill said that a condition of NCPA was that there be 8 percent financing. PG&E had just been ordered by PVC to go to 8 percent financing, for that was about what SMUD was receiving in interest in the short-term money market, an interest less than most banks required. Council meber Carey asked about the term "mandatory," and what was meant when the PVC "required" private utilities to develop an energy conservation program. What happened if there was :lc compliance? iance? Was the 8 percent limit on loans a requirement also? Mr, Aghjayan answered that under the conference version of the conserv- ation bill of the National Energy Act, utilities would be called on to promote energy conservation. Utility companies who sold 750 million kwh were required to inform customers on energy saving metasures, offer to inspect homes; and offer to arrange insulation and other improvements. The final wording on the proposed bill could not yet be known. 9e read a passage of the proposed bill, listing soeae of the mandated provisions which would apply to Palo Alto whose .sales stood just at 750 Brillion kwh. Councilne.mber Carey concluded that much of what was mandatory was only regarding the giving out of information. Mr. Aghjayan said it was not yet known how the mandatory aspects would be administered, but he thought it would be of a different nature from what Palo Alto would want to do. One aspect of "grandfat Bring" was a $340 limitation on .Loan guarantees -'Palo Alto had planned to set the limit at $500. Council mbar Carey asked how the federal government had the right to tell a charter city how to use its general funds, which could go for financing insulation loans, should it so elect, Polert Booth, City Attorney, replied that, as with other matters :such as unemployment insurance, major litigation was needed to test such assumptions. However, with the NCPA plan, there appeared to be an opportunity to avoid such federal reseric-tions altogether. Councilmember Carey said he asked his questions so he could decide if he s'aould vote for referral to committee, or in favor of the program at that present time. The time posed the most pressure as to whether or not Palo Alto had anything to lose by taking more time to consider by referring the weatherixation program to commdttee. Could PVC mandate Palo Alto into r particular program? At. Aghjayan : explained that the AEA in its proposed form had not yet passed, and so no firm information on its provisions existed. PVC cold refuge rate relief to Palo Alto if it had a bad r amervation program. The statement was that tboy (PVC) intended to maw vigor, ieaa nation and effort expended on conservation programs by utilities a key question in setting future rate schedules. Palo Alto had,, in the pest, when asking for a favorable, rate structure, emphasized its effor:.s for nervation, specifically for natural gas —though PVC could not force its programs, It could fa70r cities which had them, Council ex Crag said he did not like the idea of hevianypayment in full for insulating ' fall due on the final huf fling should the contracting homeowner final billings were not always paid, as experience had shown. He said thatthere was some paradox involved in the City allocating $.100,000 for the weatherizing program, which would tend to reduce the City's revenues, which could mean bunting new revenue or perhaps raising energy rates. Me' taught that though the goal wan admirable the facts presented thug fax were somewhat of an over-siaplificatian. AO favored sending it to committee. 7 1 2/22/78 Councilmember Fletcher asked for Mr. Aghjayan's response to Councilmember Carey's misgivings. Nr. Aghjayan said the short-term result of the weatherization program would be that sales hence profits would decline. A policy decision on how that would be handled would have to be made, to keep the rate of revenue return constant. The energy crisis in 1973-74 had led to a one- half million drop in revenues, and there had been "rapidly declining revenues in gas" this year. Mr. Aghjayan said that the long-term view was bast, however; cost of future energy was going to be very high, power mw costing four to six mills might cost forty or fifty mills. Natural gas would double or triple in cost; Alaskan gas would cost 30 or 40 cents at the border, and probably double before it got to customers. Councilor Fletcher said there would be immediate gain in the fact chat the community would be paying lower hills. She recalled one citizen's delight" at the fact of having her utility bill cut in half because the City had insulated a rehab house. Councilmember Fletcher said she thought the benefits were unquestionable, she did not want: to debate it in committee yet another night. If there were bugs in the program they could be ironed out as the need arose. She wanted to go ahead with it. Mr. Aghjayan said staff enthusiasm for the program was very high and that might seem like pressure to Council. If the program could be considered at the Policy and Procedures Committee meeting the following Tuesday and then be retrzrned to Council, that would be best. Mayor Sher said that if the wea theri zati on program went to coo. u i t tee it could return to Council March 13 at the earliest. Mr. Aghjayan said he would try to have answers to Councilmember Fyerly's questions on Tuesday. So far as safety of materials, if such materials did not have Underrwrieers' Laboratories listing they could be oli inated fr.:az the program. Mayor Sher said the staff report and answers to questions had been thorough and satisfying. He was aware of the NCPA benefits which would result if Pala Alto went ahead, and he also liked the consvmer protection features of the program to forestall sharp practise. Finally, he wanted Palo Alto to be one of the first cities not merely to talk about the energy crisis but ale* to do something about it. ACTON 11t? OPER PAILBD: The motion that considerstion of the home meatherisation'program be referred to the Policy and Procedures Committee for its consideration failed on the following vote: A2349: Carey, Clay, Swig g , . Witherspoon BSS: fir, Pletcher Sanderson, Sher ASSae1?: fazziro LION: Mayor Sher intzodnaed the following ostinance and staff reocastmedations zad, seconded bj Sanderson, moved their adoption -Loy Coll: 1) Approve the establishment ©f s w Bathe rizaticna program as described which would include home -consultation serVic , r "Do-gt-ronr7elf" packet, Insulation inetallations by qualified contractors, low-cost City financing for insulation jobs with utility hill payback, and ixspcction and certification of 1.Ui4tad *mu. 2) A rise the establishment meat of a $1000000 coneervetiaa account in the utilities fUnds to be appropereted from the Electric Fund Rreseaw for Plant Inprovement. This ntaoccant ;UMW btr wad tom the insulation ca tx for the lainUtion lartoliation *We allowing braspoontirs to nom *r Cleg ramrt tthe account) Wm. ter, Wilt* MIL 7 Y -2 2/24/711- 3) Approve a budget amendment of $13,000 to cover the program start-up costs and first s.ix months of operation costs. ORDINANCE NO. 3040 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING TIME BUDGET FOR THE FISCAL YEAR 1977-7b TO PROVIDE FUNDS FOR A HOME WEATHFRIZATION SUBPROGRAM! IN THE RESOURRf CONSERVATION P.+OGRAM AND TO PROVIDE FOR TYE RECEIPT OF A GRANT FROM THE NORTHERN CALIFORNIA POWER AGENCY" Mayor Sher said that the budget amendment and subsequent budget ordinance, which required six votes, would be voted on separately. AMENDMENT: Councilmember Carey moved, seconded by Witherspoon, that the indemnity provisions contained in Exhibit E, on agreement between the contractor and the City (page 5) , be incorporated into an agreement between homeowners/borrowers and the City (Exhibit D) . Mayor Sher ascertained that the effect of the motion would be to give the City protection from liability to the homeowner. AMENDMENT PASSED: The motion passed on a una.rriaaous vote, Councilmember Fazzino absent. Counci lmesber Carey confirmed that the $100,000 would be set aside for an unlimited time. Mr. Ahgjayan said that cueto.ver's interest would go into the account to help build it, and help to affset the 1 percent bad debts. It was felt the $100,000 would meet cash -flow needs for about one year. For the second and third years ax additional $100,000 would be needed to assure cash flow, fer the money would go out faster than it came in. It was anticipat..eee that by the fifth year the full $200,000 plus interest and less bad debts would have can returned to the account. A£eDMRYT: Cauncilmember Carey moved, seconded by Witherspoon, that provision be added that the program aed the funding mrould expire January 1, 1979. unless renewed by Council at a review to take place early December, 1978. Councilmember Carey said he wanted that "sunset provision to allay some of his concerns about the program. He wanted review of the program to come 1 efore Council on an automatic basis. Mayor Sher Wired if enough would be known about the program iz nine months. Mr. Aghjayan said he meoald be glad to do that, staff migh-t have modifications for the programer, or the program might not work out at all. Acting City Manager Walker said another ordinance aright be needed toput a limitation on the program to legally work out the "smanset° Provision` Coca ....i1ae z Cazey said his motion had the effect of terminating the $100,000 in nine months. If citimans had not signed up by then, "something's Dating• Mayor Sher asked if the MBA grant would be jeopardized .if the Cart cation passed. Mr. Aghjagan sat: he did not know. 7 1 3 2/21/78 Councilmember Witherspoon suggested reviewing the program in the coming budget process, due a year from the present time. Councilmember Carey said that would be July, 1979 --he was not willing to wait that long --the state and federal programs would be known in nine months. At. Aghjayan asked to have the time for review moved to January 1, 1979. Councilmember Carey said his motion terminated the program by January 1, then, and that termination would force the matter back to Council. AMENDMENT PASSED: The amendment that provision be added that the program and the funding would expire January 1, 1979, unless renewed by Council at a review to take place in early December, 7978, passed on the following vote: AYES: Brenner, Carey, Clay, Eyerl y, Henderson, Witherspoon NOES: Fletcher, Sher ABSENT: Fazzino. Councilmember Witherspoon referred to page 3 of the contract, and asked why the City was guaranteeing workrr nship and raterials. Mr. Booth said the contract was between the City and the contractor. ore bona wo Sul d also be required. Councilmember Clay said he still had questions about the program: he wanted to hear from more than one contractor; the matter of loss of utilities revenue had not been taJ.ked about enough --if, to take care of lost revenues the rates on utilities were inczeaseri those hoaxes which were not i sul a tabl a would be penalized. He wanted more answers before being asked to vote for the weatberization program, He would vote against the program. NAYN meee0O AS ADD PASSED: The eaaln motion, adopting staff recommendations and the ordinance amending the budget, in order to initiate a home weatherizatien program, with the amendment concerning review on January 1, 197P, passed on the following vote: AYES: Brener, Carey, Fletcher, Henderson, Sher, Witherspoon NOES: Clay, Eger: y ABSENT: Fazzino Mayor Sher remanded Counciliembera that they were was still dealing with setters from the adjourned meeting of February 13, 1978. Councilmen -bier Fletcher said that since January 23, 1978, when she had first rained the matter, the bill bed died in legislature. SE 844 would have benefited teed cities, including Palo Alto ♦ on financing road repair due to damaegac from heavy trucks. fho League of California Cities (LCC) had Indicated they scold take to setter gp again,, at which time she would ask COunoi1 to X 's bill. 714 2/21/76 REQUEST OF COUNCILMEMBER WIT?ERSPOON �RgE PALO ALTO UNIFIED SCHOOL DISTRICT (PAUSD1 DRUG PROGRAM PROPOSAL (Ccntinued from 1/23/ 8) Mayor Sher relayed the information from Councilmember Witherspoon's memo and noted that the school board was meeting that evening and therefore Mrs. Witherspoon requested that the matter be continued to a time 'den beard members could appear before Council. He said March 13 would be a suitable time. Councilmenz er Witherspoon said the item had been "around four months already" and had been delayed because Council had full agendas. She said the issue was philosophical --should there be collaboration and cooperation between the school board and the City Council? The proposal, asking the City to take up, and over a three-year period assume payment for, a drug preventive program, with City tax money to be used to pay PAUSD personnel, eras one she found herself opposed to. If Council wished to refer the ratter to the City -School liaison committee she mould find it appropriate. MOTION: Councilmember Witherspoon moved, seconded by Clay, that in reply to PAUSD's January 17 requeet, that Council refer the matter of Drug Prevention Program proposal to the City/School Liaison Committee for consideration, the Council go on record as stating that tht! Clty feels that that would be inappropriate, since the proposal calls for City tar money to be used to pay PAUSD personnel. Counci2member Fletcher said that fli:scvssicn with several school board mewbeis disclosed that PAUSD no long considered their proposal valid; there was no urgency on considering the matter. She =_ranted PAUSD represent- atives to have the consideration of being ablo to speak an anj of their proposals, and so she opposed the motion. Councilmember Carey said he did not think Council would approve the program ---to mislead PAUSD members bi having them come and steal; on the notion would not be considerate. He had thought a policy setting up a review process on social service prograas had been edopted two years back, and the action before therm did not fit within that prod. He urged Counci: r b .: to support the motion. Coancilmember Henderson said that while he did not think Council would Corrected support the proposed program, he would oppose the present motion. see page 836 Councileembee Witherspoon explained that PAUSD's motioe that the e and had approved the concept of the prop el , and they asked that the City considerr it. - Councilmember Eyerle agreed that the propose/ asked that the City t&1.k about: it, but since it asked for money, and he was not willing to sperm any tax .fey on a drug abuse prevention program, he would support the motion. If PAUSD wanted 4.o put the matter before the City board of supezviaors, where it should be, he would be glad to cooperate. Mayor Sher said he was in ag-seenent with the thought of the motion. He would probably vote for it. Reepoeding to the Board of ed'u tioa'a resat that no action be taken by Ccx cil that wooing he would like to defer to their request. NOTION 4i -7 COMTISM Mayor Sher moved, seconded by fir, that Council continue the natter of PAUSD's rat for cooperation of a - proposed drug prevention program to .larch 13, j978. Me motion failed on the following voter: - .. 715 - 2/21178 AYES: Brenner, Fletcher, Henderson, Sher NOES: Carey, Clay, Eyerly, Witherspoon ABSENT: Fazzino MOTION PASSED: The motion that in reply to PAUSD's January 17 motion that CouncilCouncil-refe7 the Drug Prevention Program proposal to the City/School Liaison Committee for cons:dera tion, the Council go on record as stating that the City feels that it would be inappropriate, since the proposal calls for City tax money to be used to pay School District personnel, passed on the following vrte: AYES: Brenner, Carey, Clay, Eyerly, Henderson, Sher, Witherspoon NOES: Fletcher ABSENT: Fazzino RE(VEST OF COUNCILNENEER EYERLY ROUSING (CKR:1.52:8) Councilmen er Eyerly acknowledged the detailed work Naphtali Kno , Director of Planning and Comity Environment, had done in response to Councilz .b-er- Eyerly's memo of January 23, 1978. He said his concern arose from the amount of money the City had been spending in recent tines for housing: $380,000 for the Housing Corporation to purchase rental housing; the City guarantee of $400,006 for the Lytton Gardens expansion, an amount that wou la be tied up until payments were met; $250,000 for Jansib inking in the Capital improvements Fund to the two past successive years. While .e had no dissatisfaction with the projects, he did want the City to have ongoing information so that it would knew that what it was doing in regard to housing was right. To that end, of assuring that City funds were icing efficiently handled, he had suggested a complete audit on one project, Colorado Park. Nr. Kno 's response contained a proposal for a complete audit of the Palo Alto Housing Corp- oration. The cost of such an audit was the only deterrent. NOTION: Councilmember Eyerly moved, seconded by Witherspoon that Council authorize a nariagement assessment of the Palo Al to Housing Corporation. Councilmember Henderson said he agreed that any agency funded by public money should be audited regylarly, but he suggested a different kind of audit. The need for love- send grate -ire housing hard been prom), and that kind ofproof need not be given *gain as part of the $10,000 cost. The budget for PAW this yea is $27,350, and he contrasted that arrant with the $10,000 cost of audit. PA gave a quarterly report, tbs Corporation held open meetings, and so what was needed was a full Corrected ;im iax audit with Colorado Park to be rrviewed, and also Webster see page *Pod. That combination financial and management audit should r{ia around 336 $2,000--a straight financial audit should cost about $200. Councilmember lP,itherspoon agreed with COuncilmember Henderson, ' adding that in from two to five yeere PARC should be looking at hoer it could function in a less scostly, more efficient way. - Knox raid he was not stare tire! Was a clear statement of PARC objectives. The City's objectives were given in the Coalgulithammive Plan, along with a statement of what the City was asking the Blousing Corporation to do- -the two were not exactly the same. Staff, as well, WM8 accorded certain 7 1 5 2/22/78 Mr. Knox said he was not sure there was a cleae statement of PARC objectives. The City's objectives were given in the Comprehensive Plan, along with a statement of what the City was asking the Housing Corporation to do --the two were not exactly the same. Staff, as well, was accorded certain responsibilities. Some of the City's policies and objectives might not be impleeented by anyone, and some might be duplicated. A eanagement audit could find that out. $10,000 was not a lot of money, he said, in light of the fact that the Housing Corporation was spending millions of dollars. He cited Parkinson's Law, as a parallel, so far as suitable placement of interest was concerned. - PARC also had millions from California Housing Finance Agency (CHPA). The $10,000 covered about thirty days' effort, at $300 per day-- the going rate for a good consultant. Staff would go through the consultant selection process and establish the scope of services. Councilmember Carey said he was interested in the kind of audit described by arr. Knox, which would assess the accomplishments of PAR and their relationship to goals of the Comprehensive Plan, the zoning ordinance and other ,:elated policy decisions which Council had made. Councilmember Clay said he favored the kind of evaluation Mr. Knox described which would give Council a grasp of what had been done and methods of proceeding. The PARC had been set up in 1969, and it was time for another look at i t . Louis Goldsmith, Pals Alto Housing Corporation, said PARC would welcome inquiry or review or audit of finances or implementation of goals. Colorado Park and Webster Wood would be separately audited, as required by Housing and Urban Development (HUD) and CHFA rules. PAHC performance of objectives were spelled out by contract; Project Mzanager Naphtali Knox attended most meetings to give direction. He, himself, was a ra3ne.vezaent consultant, and he was skeptical that anyone from outside could do very much in thirty days, for familiarity with various programs and cross -currents among state, federal and city authority -on `xsusing programs would )e neodec3. An expert in that field would be welcomed. Though march would be done, he doubted that. "a nice crystal clear document, telling us where we ought to be" would come from it.' Ceuneileaee r Hyeri y said he did not think that any of the staff .report suggested rethinking the housing market or the philosophy involved. He had thought a management rather then a financial audit was needed. He was ready to go ahead, with the hope that Mr, Knox could negotiate a less than $20,000 figure. Councilmeeber Henderson said he agroed with Lou Goldstein about the management audit, in that an auditor would just get a smattering i.n thirty days' time. For example, how would a management consultant determine whether or not the money given to landbank for Lytton Gardens Wits a succosefue expenditure? Re did not see hex ► such questions could be answexed in thirty days. Councilmember Clay asked if a member of PARC would sit on the chittie for selection of a consultant. Mr-. Knox said norral selection process would bring the a t ter to the ?Anew, and Public 'kirks Committee after €staff had .reviewed a number of consultants and selected a few. Staff had said it would return to Council with a precise scope of servicesto be p9rrform ed by a consultant, which had not yet been drawn. Re said that item id) on his report (04Rt15203) of February 9, Pelevelop recommendations for furtker inquiry regarding the execution of - specific projects, such as Webster Mood and the Below - Market -Rate ( ) program,* was a key matter. The BUR program had produced about 40 units since 1974 --how much time, effort and money had 71 7 2/22/78 been spent on that program? what were the returns, what families were being served that were not being served elsewhere --is it worth it on a cost -benefit basis? A consultant could, for example, contrast the BMA program with the Piggyback Program, in which the City provided $60,000 to the Santa Clara County Housii g Authority --that authority had come up with sixty-six Section 23 units in Palo Alto at the present time, twenty- five of ,phi ch were Piggyback. Perhaps the BKR program should be revised. MOTION PASSED: The motion, that Council authorize a management assessment of the Palo Alto Housing Corporation (PARC) , passed on the following vote: AYES: Brenner, Carey, Clay, Eyerly,, Fletcher, Sher, Witherspoon NOSS: Henderson ABSENT: Fazzino Councilmember Xvexly said Council had a March 13, 1975 staff report on the cost to the City of Webster Wood; he would like to see an update. MOTION: Councilmember Eyerly moved, seconded by Clay, that staff draw up a current report on costs of Webster Wood. Vice Nagar Brenner asked if there were any way of assessing the benefit from that program to the entire neighborhood, for as she recalled, that program had been based on a neighborhood study Mr. Knox replied that the motion asked for a cost analysis. The kind of evaluation she spoke of would be more time-consuming. MOTION PASSED: The motion passed on a unanimous vote, Councilmember F'a: tine absent. Counoi lmemb ►r Egerl y said he had asked for an in --City staff report showing where landbanking funds had been used, along with comments about their success. He did not think that was the best use of funds and he wanted to part the report cn Webster Block in proper perspective. MOTION: Councilmemher Eyerly moved, seconded by Carey, that Council recAluP , staff report showing where a g and all landbanking funds have bean used, to what dollar amount, along with staff comments about their success, as, (to include Lytton Gardens, Power Property, etc.) SUBSTITUTE' MOTION: Councilmember Carey moved, seconded by Clay, that items 3, 4, and 5 of Councilmember Syer.Zy'sa memo of January 23, 1978, convex ag Land/honking, bow and AOderate income Housing and Density, be incorporated into the matters to be audited by the c nssu.itant who was to inquire into Palo Alto Rousing Corporation concerns. Councileember Clay asked that implicit in the motion be the consideration that Lbw inquiry be to an extant that would be reasonable. Councilmember Beaderecn said he did not sere a consultant doing all of what the discussion dad mentioned for $10,000. Councilmemher 2yesrly said he feared the substitute seaotion would defeat the possibility of getting sufficient information on the first motion. Mr. Owe had said reports on iandbankiny and low and gate income housing could be handled by staff. The matter on Density possibly could be handled by a Stanford cleat. Be did not want to overload a consultant, and he would vote against the substitute motion. 7 1 B 2/21/78 SUBSTITUTE LION REYNRASED Councilmember Carey rephrased his substitute motion, with agreement of the seconder, Mr. Clay, to say that staff shall prepare the raw data involved in landbanking and low and moderate income hous_ng and submit it to the consultant for incorporation into the report, The judgment of "success" or "failure" was the kind of judgment the consultant should make. Councilmember Nither."pot.s asked what was show density Impact on land costs. . . . " meant by the phrase "A study to Councilmember Eyerl y said he would go along motion in the'r'atter of density he wanted to cost of housing! perhaps the cti+asacrdi ty would not have both low density and low-income housi with the rephrased substitute know how densi t}• affected understand that it could ng. PART THREE OF M'TIO(q CONCERNING LI J1DMNK.TYG PASSED: The motion that staff prepare the rev date involved in landbanking, with the consultant to judge whether or not the .)andbank program was a success, passed on a unanimous vote, Councilmember Fazzino .absent. Mayor Sher asked that specific incomes not be menti of low- and erata-in✓:cee ?sousing. .sec= in cons. dera tion Mr, Knox said t <: at the time of the 1975 Santa Clara ceneus the City had ordered census tabulation cards froz the county offices computing cost tabulations. In the report before Councilmembers was raw data. Cross cabu1atioris could be obtain-ed giving income by family size and ownership vc. rental. He agreed, therefore, chat the specific amounts could be eliminated. PART FOUR OF AUCTION CONCERNING LOW- AND MODERATE--INCCea HOUSING PASSED: The motion that staff prepare the raw data on Low.- and Moderate -Income housing, with the consultant to incorporate in his report a judgment of whether or not the low -and moderate -income it easing program was a success, passed on a unanimous vote, Councilmember Fazzino absent. Councilmember Fletcher observed that a study an density impact on land cost would warrant a $14,000 study on its own, for data on the topic was not easily gathered. Councilmember Carey said he had the data available, and also a Stanford study having to do with density bcnuaes and how density generated additional housing had been mode. Counci I r Henderson said that since the City had just approved projects with sow- an ► moderate -income housing included he did not know how there; could be data available concerning its impact. Councils bee: Eyerly said Mr-. Knox has' said Stanford students could do the data gathering. At. Knox commented that he had said the City would have to get a Stanford class to collect the date. Perbape a combination of the Stanford study on density bonuses with data on sops of the new projects would serve. Abet was to be studied would have to be quit* specific. C'ouncilmamber Carey emphasized that the impoltancm of this question cold not be exaggerated: Palo Alto and other ci ► hrn had to resolve the dilemma that low-cost housing, even with mmseive subsidies, could not be provided without increased densities. Many mere opposed to increased d& s i ty, and the question had to be answered by a consultant. tant. Goals had been sat up, and if density had to be increased to roach tom, many alight want to change the goal. The question Nes very asigaaifioanti any study that did not .include it would be inoompdete. 1 719 2/21/7* it \( PART FIVE OF MOTION CONCERNING DENSITY IMPACTON LAND COS':t. FAILED: The motion that staff paepere the raw data on density impact on land costs with the consultant to incorporate in his report a judgment of whether or not the current program is a success, failed on the following rote: AYES: Carey, Clay, Eyerly, Witherspoon NOES: Brenner, Fletcher, Henderson, Sher ASSENT: Fazzino Councileember Eyerly said his nett motion concerned housing on Stanford land, and it tied .in with other reports on housing. This Matter was for the Stamford Liaison Committee, and was not to be a report or to require consultants. MOTION: Councilmen -ibex Eyerly moved, seconded by Fletcher, that Council direct staff to agendize for discussion by the City/Stanford Liaison Committee, the subject of the housing impact on Palo Alto from further development of Stanford Industrial Perk: the discussion to .include, but not be limited to, opening of farther Stanford land for housing develop- ment: and also the possibility of re -zoning pe=t of the Industrial Park, as a solution for housing. Mayor Sher asked City Attorney 9eoth if Ccwncilneebers who were Stanford employees could vote on the nation before them. Mr. Booth replied that the study itself did pot have a material effect on anyone on the Council who was a Stanford employee, and they could participate. Counc=lmember Carey said he did not want to vote for a restudy of a o/icy decision Council had made eighteen months ago. Council had spent much time on Stanford industrial Park and the LW zone in ge►ners1, aid as a result the LM potential, thxo,gh wording, had been downzoned, as had that in ezcial /iaaduetrial . He did not want to re-examine matters which had been settled in adoption of the Comprehensive nen. He would support the balance of the motion. MOTION TO CONTINUE: Councilor Clay moved, seconded b!z Carew, that discussion of the action concerning impact on Palo Alto housing result- ing from development of Stanford IndUstriai Park be continued to March 13, 1978. Councilmember Clay explained he was reluctant to vote on the motion without having a Stanford zepreeeataet pr present. Courci3e Eyar1y said the idea behind hie motion had not been considered in ta►1ke conceraaIng the Ccmptitheneive Plan. $tanforc{ had placed the ajpp2Jcatioa for Hewlett-Packard expansion plat later, and Couneilmember Eyerly said he had she thaw aware of his concerns by letter. Palo Alto needed further land for housing, and Stanford would not talk about that unless Palo alto said it would talk about re -zoning part of the industrial Park. Councilor tuber Henderson said he did not want to ask Stanford if it was all right eo pct the matter on the agenda to talk about it —the City should aea rely go ahead and place It on the agenda. MOTION TP CONTINUE FAILED: The motion to continuo to 'larch 13, discus- sion of the aarrtion earwarning impact resulting ng from ffrttha development of Stanford industrial Park on Palo Alto housing failed on time following VOta: 7 2 0 2/21/78 AYES: Carey, Clay, Witherspoon NO'S: Brenner, Eyerly, Fletcher, Henderson, Sher ABSENT: Fazzino NOTION PASSED: The motion that Council direct staff to agendize for discussion by the City/Stanford Liaison Committee, the subject of the housing impact on Palo Alto from further development of Stintcrd Indus- trial Park --the discussion to include, but not be limned to, opening of further Stanford land for housing development: and also the possibility of re -zoning part of Industrial Park, as a solution for housing, passed on the following vote: AYES: Brenner, Clay, Eyerly, Fl etcher, Henderson, Sher NOES: Carey, Witherspoon ABS : Fazzino RECESS Council recessed from 10:18 t' 40:35 p.m. Cotanci1a nber Fazzir,o arrived at 10:35 p.m. REQUEST OF COUNCILME BE.R EYERLY RE STANFORD HOSPITAL Councilmembea: Eyerly said Councilmembexs had at their places a letter from Dr. Rich, School of I dicine, Stanford University Hospital, tl° t gave further information on a contract between the City and Stanford University concerning the hospital. He refereed also to the August 29, 1977 "confidential" meO from City Attorney Booth coe'earning that contract. In the light of recent events concerning the contract, Council s Eyerly thought that some discussion was needed about changing acceptance procedures for members of the staff. MOTION: Councilmember Eyerly moved, seconded by Henderson, that staff be directed to agmnalze for discus tiosa by members of the City/tLanford Liaison Committee the subject of the hospital contract Stanford has with the City, along with discussion about acceptance procedures for prac- tising community doctors. Councilsembex Eyerly said that Dr. Rich lead written that the medical staff was larger than that called for, And that Stanfordhad be "very generoue in accept egg peop.i,* to the staff out there," and so Cou c11 r eyerly said be would 211.0 to seat included 1n the discuasion the possibility of miring en amt to the contract that would 'tie down" a permanent number of positions on the Stenfoxd emdical staff fps practising community physicians. Since Dr. Rich said that Stanford was already doing that, Couocilmember Nyarly, saw no reason vhg tyre should not he an amendment to that effect in the contract. Cataci2aiber Byer1y said he thought "`it would be we21 for our City staff to Invite a person from the Council, appointed by the Maayor" to be In attendance at the meeting with the Stanford Liaison Committee. Mayor Sher confirved that Coupcilema0er Eyearly's last tin comments were for inforaation of etaf, and not pew o“he. sein aeot ton. Councilmember Senders said that during tlao campaign last pear, citizens had raised th matter of the arrangement betaeeea Stanford and 721 2/21/11. the City regarding facilities for local doctors. Some of the questioners had assumed that Stanford Hospital had a bed shortage, whereas the true state of affairs was that there sits exclusion of the some of the doctors. Councilmember Witherspoon said she had read that Stanford Hospital was below capacity. She added she thought she would abstain on the vote since she was a Stanford employee. Mayor.Sher assured her that since there was no significant material effect she could participate in the vote. Charles Walker, Acting City Manager, said he understood Stanford was developing a more detailed process for reviewing applications. Staff would give Council details when that process had been completed. He said he assumed the motion asked for Stanford'a :section to the possi- bility of proposing an ant that gave the minimum number of community doctors who would be permi t ted to use the hospital fact l i ti es . Councilmember Eyerly said Mr. Walker's aeerumpt.oe was correct. Councilmember Carey said he did not want his vote on the motion to be construed as his acceptance of the contexts of Dr. Rich's letter, particulazly that part that wrote of the rights of community physicians as being granted voluntarily by Stanford Hospital. He .himself did not accept that. Mayor Sher said he, aaleos was not ready to accede to the pro ositton that the hospital had the right to reduce the number of community physicians, for he thought that the point should be clearly made that that was a matter of contract. Co:wci 1 . Wi t herspoon a cod if the Ci t y; Stanford Lia .son Committee was not formerly a planning cou,Ai ttoe. Was so Bone from they hospital l to be present at the meeting? Mr. Walker said the committee diseessed things such as police exrangements for The Big Gases Minutes of the City/Stanford Committee meetings were customarily placed in Councilmembexel packets --the most recent meeting had been February 9. Notice of the forthcoming meeting would be given well in advance so that Stanford Hospital could have a representative at the meeting if 1t liked. counc17,r., bes Syerly asked if It wake passible for the committee ttee to meet earlier than May. Kr. Walker rep Mod that he hoped to be able to aet an earlier date. : IOWACTIOW PASSED: The motion that staff be diroc ed to agendiae discussion Among members of the City/Staieford,Lielaion Committee concerning the bo : pi tel contract Stanford lams : w * h the City, along withetliscussion about acceptance procedure for practising community doctors, passed on a =ominous vote. curt SURLY, PASSIM AM Wes, ASPOITIMU AND ami ParElfirrar,RPM= MUTTON: : Councilmember Fassinc.seved, seconded by . Witherspoon, that the reporting of civet and hours for city staff Vies . iii t.ia ted" by Council - members be adopted se official City policy. Councilmember Fassino said this nem Maass Item eras pried by a memo from ilr. Wilms- which said, "U3J4 5 otherwise directed by the Council, 7 2 2 2/21/78 we are ceasing the practise of including the time and cost involved to proper* staff reports; because 1) time andcostass often incomplete and misleaeding since it is difficult to include the time of all employees who might have a hand in preparing it; 2) staff estimates of time and cost occasionally places the staff in the middle of a political debate and otherwise provokes reactions that sometimes detract from the body of the report itself; and 3) the primary point is dividing the time and cost figurer, that is, that staff reports cost money and take time, which would otherwise go to other assignments, hes now been well made." CounctlIeember Fazx.ino said that a report of what information requested by Councilmeembera cost the City in hours and dollars would be helpful in setting priorities, and that such reports of costs aright deter Coenci3mamberr from asking staff for work in particular areas. Couucileember Henderson said the real aaosts came on the big projects, and on those time card/tine cost acoountin t would be required for good records. The months spent on the Sorge Weatberization report was a cas:7 in point. Me himself did not ; -_ "that much vaelue° from seeing what the coats were on a report. I wondered why ter-. Walker had proposed dis-- cant!nuing reporting them. Vice ,11Wrr {s Ye., rted costs were to be only on matters requested try Council. For cost accounting.to be useful it would have to cover all reports, not just those initilted by Council. She said the phrase "...might deter Ccuncilns tubers" caught. her attention --she was not scare the Council should be deterxeri, for it should fsel fres to ask for information based on policy decisions so that it. would not be merely in the position of responding to staff -initiated proposals. AMENDMVAFT: Vice Mayor Brenner mooed, seconded by Fazzir:o, that all reports, whether initiated by staff of by Council, carry a report on time and costs involved. Co:incil . r Ayo ly said be did not agree with Vice Mayor Brenner's amendment. Staff reports included informations from many departments and those costs could not realistically be broken down. Be did not think Councileembert should feel constrained to ask for staff.. reports which had high costs, he thought. eats should be given only on Council -initiated reports. Counci.lemeh r Fletcher said figuring out eta of the reports also took ties. She added that seeing costs after the lect scree not a det erreen t . An involved s.i trace tion like willow Road required innumerable con taects . Cauecilimeetber Fa xalno said be would eapaxaate the notion From the &mead- amt for the vote. Ammommur PAZ : The emendurnt, that all reports, whether initiated by *tiff or by Council ceerrre ate report on time and costs ievol ved , failed on the following vote: AVSS: Brenner, lac : e MO S: Carey, Cry', Sj:Ii Fletcher, Be rson, Sher, Ni rrpoon 723 2/21/78 Mayor Sher recalled that the matter of costs involved drawing up staff reports had arisen when he was once a member of the Finance and Public Works Committee, to remind Councilmembers there were such costs. He agreed that the purpose had been served and he would vote against the motion. MOTION PASSED: The motion that the reporting of cost and hours spent on City staff reports initiated by Councilmembers be adopted a, City policy passed on the `allowing vote: AYES: Carey, Clay, Eyerly, Fazzino, Witherspoon NOBS: Brenner, Fletcher, Henderson, Sher REQUEST OF COW CITAEKBRR CLAY RE TREE TRIMMING SERVICES Councilmember Clay seed he had received some phone calls about desiring tree trimming service; inquiry had shown the City was seventeen months behind in providing such service. W TION: Counncilmembe.r Clay moved, seconded by Henderson, that staff be directed to prepare a report for Council giving the current stetus along with associated problems of providing tree maintenaece service, and the practicality of contracting this service, at least to the point of catching ►.gyp. Mr. Walker suggested that along with the staff report there was an alternative of referring the matter to the Finance and Public Works Committee, who could ascertain a level of service to bring abeut current maintenance, and the cost it would involve, Mrs. Lanvendell, 2669 era r Road, said she had resided in Palo Alto for seventeen years. Two Modesto ash trees with heavy surface root systems and veer -round leaf shedding were ruining her yard. The tree was :.o troublesome het only alternative was to cement over the front yard, she said. She felt other trees which were not in such, stringent need of maintenance were receiving care, and she asked that need dictate priorities. MOTION PASSED: The motion that .staff be directed to prepare a report for Council giving the current status along with associated problems of providing tree maintenance service, and the practicality Of contracting this service, at leaSt to the point of catching up, past ed oil a unania ous rote. ORAL COPINUNICATIONS ADOOURMMENT marrow: Councilmember Carey moved, wed by .Fazeiro, that Council adjourn. The motion passed on a unanimous vote+. Mr. adjourned meeting of February 13, 1978, adjourned At 11:10 p. +n. on Fetamary 21, 1970. 7 2 4 2/21/78 • Regular Meeting February 21, 1978 The City Council of the City of Palo Alto met on this date, at 11:10 p.m., in a regular meeting, with Mayor Sher presiding. PRESENT: Brenner, Carey, Clay, Eyerly, Fazzino, Fletcher, Henderson, Sher, Witherspoon ABSENT: None ORAL COMMUNICATIONS None: EXECUTIVE SESSION IRONIMEMIWINGIMMIMMOIMIEMEIMOMP ,r�ycr Sher announced that Mr. Aubrey, bonding counsel with Nilson, Jones, would meet with Council on litigation matters at the end of the meeting. IJEST OF CG Ci NCIII4E1 ' R CAREY RE JARVIS- I iTIATIVt' Counciiaeriber. Carey said he had talked about staff preparing two budgets, cne uarvx s --Gann initiative passed, and one to Mr. Walker, City Manager, an alternative in the event the for the customary circ. nstances. Mayor Sher said in his own talks with Mr. Walker he had learned that staff preferred to call the Jarvis -Gann budget a contingency budget. Counailm uber Carey said he would treat "alternative' a.s synonymous. As chairman of the Finance and Public thought the City ought to be prepared should the bill would certainly be less .money. and 'contingency" Woxks Cc i t tee he pass, for there Manor Sher asked if there would not be so.re other available funds, or if fees for services could not be increased to fill needs should the bill pass. C,uncil:aember Carey said there were not other available funds, and that he did not wish to maintain the customary level of services by increasing fees for other services. Re thought the City should cut services. MOTION: Councilmeaaber Carey moved, seconded by Henderson, that staff prepare an alternative budget on the assumption that Jarvis -Gann initiative will peas and that budget shall indicate reduced services and alternative sources of revenue. Councilmember Fazz the said he thought the motion she to a two --step process: to show what kinds of services would be cut if the bill passed; what kinds of additional revenue could be found to maintain services. He added thee he thought Council should perbar0 not vote any new expenditures until it was known if the bill passed ex not. MOTION PASSED: The motion that staff prepare an alternative budget on the assumption that Jarvis -Gann initiative will pas and that budget shall indicate reduce services and alternative sources of revenue, passed on a unanimous vote. TAX FO H- ^?ING ON J& VIS-GAAi1 IH?TIATIVB Mayor Sher announced that a meeting, in this case called n Tax Forum, weld be held in the Board of Supervisors ors in San Joao on February 25 to discuss elements of the Jaxv s-Ganf Initiative/ this spiting was 725 2/21/70 r • Corrected see page 836 i 1 co -sponsored by the Board of Supervisors, representatives to Sacramento of various unions, and the Inter -Governmental Council. REQUEST OF COUNCILMEMBER WITHERSPOON RE GUIDELINES FOR CONSIDERING Rn O OSAL5 FROM PRIVATE, NON-PROFIT 3'I MOTION: Councilmember Witherspoon moved, seconded by Clay, that it shall be the policy of the Council that all private, non-profit organizations wishing to be considered as contractors to the City shall submit a proposal -- following guidelines and supplying such information as staff shall require -- for consideration during the budget hearings when the Finance and Public Works Committee will consider all present and potential contractors in the social services area at one time and make a recoLmendation to Council as to which shall be contracted with during the coming fiscal year. Staff will not spend time analyzing each proposal in depth until the Council determines that it wishes to contract for the service offered. Mayor Sher said a question had been raised about the last sentence of the motion asking if it were to be done at budget time: the proposals . were to go to the Finance and Public Works Committee and then come to the Council presumably. The question was would it get back to the Finance and Public Works Committee in tune for possible funding that year. The question arose about the time which the motion assumed, should a request come in for 4n organization that had not bcen funded before. Counci1rr#caber Witherspoon said that staff had said it might take as many as 80 hours to analyze the proposal from the Palo Alto Adolescent Services Corporation, before they were sure that the City wanted to contract with them„ She had talked to Mr. Andrus about it, and perhaps Acting City Manager Walker could amplify. She had thought that if staff can develop guidelines similar to those now in use, and require the needed information to do a study, the Finance and Public felt r:vs Co and ttee and the Council would have some idea of whether or not .'t was a reliable service with which to contract. As she recalled, most of the "thrashing out" cars when the contract was written and the money had been avpropriated in the budget --about six to eight weeks later. She used child care as an example: when such a service was decided on as being app:.opriate, and funds for it were budgeted; did not the major part of the discussion take placer when the contract was brought back to the City Council six or eight weeks after the budget was passed? That was when some of the finer details of what was wanted were hammered out. Acting Ci td Manager Walker replied that some contracts were handled in the manner she had described. Re thought, however, that basic decisions about the contract took place in the Finance Committee, when they were idering the proposal. ile said that he read the motion it asked staff not to spend time analyzing proposalo until specifically told to do to by either the Council as a whole or the Finance Committee. Councilmember Witherspoon said that would b.S her intent. mayor .her revised thi proposed process; the guidelines would help the applicant draw up a proposal which would than go to the Finance and Public *arks Committee, and the Committee would make a recommendation to Comte /. Council would then act on the reocammndation and the proposal would he returned to the finance and Public Mbrks Committee to be incorporated with the budget. Mr, Walker said that if a propel from Prelo Alto Adolescent Services, for example, came in, it would be lent to .the Finance and Public Works Committee. Unless the Committee directed staff - to provide some furor information, staff would leave the proposal in the Committee, so that it oould be reviewed with its proponents. 7'2 6 2/21/78 -20)6 Mayor Sher asked if staff normally would analyze and comment on a proposal, and was Councilmember Witherspoon's motion intended to eliminate that step? Or did the motion mean that staff was not to get into the actual contract terms? Councilmember Witherspoon said staff had entered into discussion of contract terms only when the Committee wanted to contract with the applicant. She thought staff should not analyse each proposal, because many of them were ultimately not going to be considered for fundi. g. Councilmember Henderson said some analysis by staff would be needed to verify the cost proposal; perhaps analysis of community need or the like was to be eliminated, but some cost analysis had to be done. MOT ON TO ADJOURN TO EXECUTIVE SESSION: Councilmember Carey moved to adjourn to Execu ti ve Session. Councilmember Carey recalled the Policy and Procedures Committee meeting of two years ago having spent three meetings on the question now before them. There had been a one-year interim program. He also thought Council had set a policy that no midyear requests for funds would be considered. He asked that staff return to Council with an account of what steps had been taken two years ago, and whether or not the motion made by Councilmember Witherspoon was consistent with that earlier Council action, 4OT1O'i FAILED: The ^ -tion: to adjourn died for lack of a second. MOTION TO CONTINUE: CourW i1r.;ember Carey moved, seconded by Brera e.r, that Council continue the matter of analyzing proposals until staff returned with a report on what policy on social services proposals had been set. NOTION DO CONTINUE PAS. ED: The motion, that Council continue the matter of analyzing social service proposals until staff returned to Council with a report on what policy Council had set, passed on the following vote: AYES: Brenner, Carey, Clay, Eyerly, Pa zzino, Pletcher, Henderson, Sher NOES: Witherspoon &WEST Of MAYOR SHEA RE REVIEW 4P TRAVi =PEWS POLICY Mayor Sher said that the Council policy concerning reimbursable travel had been adopted in July, 1975. Mayor Sher said a number of Councilmembers had asked for a review because the per diets expense allowance had become i n ideq►ua to . He sei d he had asked Ann Tanner, City Clerk, and Al Mitchell, City Controller how best to bring the policy in line with current tiavel expenditures. Two suggestions which would be easily administered were 1) raise the per dim allowance to perhaps $75 a day, for each night of the City --r edited travel, along with a miscellenotou.s sun for taxicabs and the lire to the amount of $35 per trip, 2) the City to pay for the betel bill: roam only, with a per ,diem of perhaps $30 for meals and other living expenses. Mayor Sher said he thought either of those suggestions afforded a fair way to treat such expanses. Sven with the present polio, he continued, Councilsembers were lot restricted to the per diem allow , and receipts mould be presented for reimbursement of otter necessary expense —that circumstance Would stay the same. 7 2 7 2/21/78 MOTION: Prayer Sher moved, seconded by Fazzino, that Council approve a travel expense policy of having the City pay hotel room plus $30 per diem expen:e, plus $35 as miscellaneous allowance per trip. Councilmember Carey objected to discussing details of the plan owing to the lateness of the hour and the executive session to follow. Though the current 1975 policy was outdated and did not adequately cover expenses, the extra expenses incurred in the trip to Washington, D. C., which was to take place in four days, could be covered b;...ubmitting isceipfs. MOTION TV CONTINUE: Councilmember Carey moved, seconded by Eyerly, that the matter of Council travel expenses be continued to March 13. Councilor Fazzino said he was ready to discuss the plan at the present time. He would vote against the motion to continue, for, though the hour was late, Council had already spent time on the proposed new travel allowance. NOTION TO TABLE: Councilmember Eyerly moved, seconded by Henderson, to table the ac tion to continue MOTION TO TAHLE FAILS: The motion to table the motion to continue failed on the folloa•in vote: AYES: Carey, Eyerly, Henderson NOES: Brenner, Fletcher, Clay, Fazzino, Shez, Witherspoon MOTION TO CONTINUE FAILED: The motion to continue the discussion on travel allowance expenses to March 23 failed on the following vote: AYES: Carey, Clay, Eyerly NOES: Brenner, Fozz i r,o, Fletcher, Henderson, Sher, Witherspoon Arnow: Mayor Sher moved, seconded by Faerino, that Council approve a travel expense policy of having the City pay hotel room at a conference listed hotel, plus $30 per diem, plus $35 as miscellaneous allowance per trip. Couneilmenber Henderson said he thought the present policy of $50 per (lie s plus turning in slips to prove other related expense was adequate. He would vote against the motion. Cc.u�..iL er Eyerly said that the motion seemed to have come about in relation to the KZC meeting to be held in Washington, D•C. On the few trips he had taken he had not needed the $ 50 per diem, and he listed some California cities to which he had travelleeeion Cecil business. Though it was a rarity, travel to Washington, P.C. or Mew York City alight require $50 per diem. The pz sent policy took care of ordinary needs. He would vote against the motion. Councils -amber Clay asked hear hotel paynent would be arranged. Mayor Sher said many conferences 'fisted hotels and arranged a favorable rata for delegates. A San Diego hotel would be less than Washington, D.C. Conditions of the conference i toe i f could set up arrangements for payment. Council/member Pletcher asked if receipts mould be required even though the alloome took care of expenses. Mayor Sber said no receipts had been required on per dime in the past and would not now., 7 ? 8 2/21/78 Co:zncilmember Fletcher said she would vote against the nation. She felt it encouraged spending. She related that, ironically, councilmembers in !Jew York C ty received $6,000 travel expense, and were not called upon to travel, but received the expense allowance anyway. Mayor Sher emphasized that the hotel was to be one listed by those who arranged the conference, so that there would be the opportunity to receive the favorable rates. MOTION PASSED: The motion, that Council approve a travel expense policy of having the City pay hotel room at a conference -listed hotel, plus $30 per diem, plus $35 as miscellaneous allowance per trip, passed on the following vote: AYES: Brenner, Clay, Perrino, Sher, Witherspoon NOES: Carey, ,Eyerly, Fletcher, Henderson Counci1raeaber Henderson asked whether or not alcoholic beverages would be included among per diem expenses. Mayor Sher pointed ou. that the flat allowance mould not differentiate on what that money had been spent for. CONTINUANCE OF AGENDA ITEMS FIVE, SIX AND SEVEN MOTION: Mayor Sher moved, seconded by Fazzino, that new business items s 5.7 concerning drive -up service facilities, brilding numbering, and bicycle weer bra continued to March 13, 1978. Thp motion passed on a unanimous vote. ADOOVR 1I4ENT TO EXECUTIVE SESSION CCIMMOMENOWEIONNOMP Mayor Sher adjourned the Council meting of February 21, 1978, to Executive Session, at 11:45 p.m. ADJOURAMENT The Xxecu ti ve Session and the meeting of February 21, were adjourned at 12:30 a.m. C . y Clerk d Mayor i f 7 2 9 2/21%1