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HomeMy WebLinkAbout1978-05-22 City Council Summary MinutesCITY coUIIcIL MI1UT€s CITY OF PALO ALTO Regular Meeting May 22, 1978 ITEM PAGE Minutes of April 17, 24, and May 1, 1978 9 3 0 Oral Communications Gordoii Tillson, of Jones, Tillson & Associates 9 3 Q Consent Calendar - Action Items 9 3 1 Policy and Procedures Committee Recommends 9 3 1 Re Confidential Labelled Information Finance and Public Works Committee Recommends Re Electric Utility Rate Schedules E-1, E-2, and E-41 Recommended Proposed Rate Increase Finance and Public Works Committee Recommends Re Lifeline Utility Rates --Study for Non -Profit Housing Service Employees International Union (SEIU) Memorandum of Agreement Proposition 2, Clean Water and Water Conservation Bond Act of 1978 Change in Order of Agenda Proposed Construction Tax Ordinance (Continued from May 15, 1978) Recess to Executive Session Executive Session --Ordinance Adopted 931 931 932 932 111 932. 9322 941 941 Copre"*nsive Plan .Onnual ,Review and Update (Continued From May 15, 1978) 9 4 1 Report of Planning Commission re Downtown Parking Feasibiliy Study 9 4 2 California Avenue Beatification Project 9 4 3 Palo Alto Housing Corporation Management Assessment 9 4 3 Golf Pro Contract (Continued from May 1, 1978) 9 4 5 Request of Councilmember Fletcher re A9 2442 9 4 7 Request of Counci lmembers Clay, Eyerl y, and F4;21 ,00 re Management Audit 9 4 7 Oral Communications 9 5 1 Meeting of May 29, 1978 Cancelled 9 5 1 Adjournment 9 5 1 929 5/22/78 e i 9=J May 22, 1978 Regular Meeting The City Council of the City of Palo Alto met on this cjate at 7:40 p.m. in a regular meeting with, Mayor Sher presi4ipg, PRESENT: Brenner, Carey, Clay, Eyerly, Fazzino, Fletcher, Henderson, Sher, Witherspoon ABSENT: None Mayor Sher announced that an Executive Session would take place at some appropriate time during the evening. Mayor Sher said that permission had been asked to film the disculiVoft concerning the Construction Tax, and he had been assured that the filming would not intrude itself upon the procedure. MINUTES OFD A►PRi 3 1978 Courscilme ber Clay pointed out that the vote on the motion to refer the matter of requiring a housing contribution_on page .75, should correctly read as follows: AYES: Carey, Clay NOES: t Brenner, Eyerly, Fletcher, Henderson ABSTAIN: Sher, Fazzino ABSENT: Witherspoon (out of chambers) Vice Mayor Brenner asked that the 1lth line, 9th paragraph, on page 868 read instead ". . . and the parkway grounds f Gunn High School... MOTION: Vico Mayor Brenner moved, seconded by Henderson, that Council approve the missies of April 17, 1978, as corrected. The motion passed on a unanimous vote. MUTES OF SPECIE.. EXECUTIVE SESSION it�7s 6°?y' I ,14/ NOTION; CouncilmonW Eyerly moved, seconded by Carey, that Corunc i i a `.ire the *lanes of April 24, 1978 Special Executive Session. The motes passed , `a unanimous vote. �kllil ' OF NAY 10 1978 Vice Mayor Brenner ash that line 3 in paragraph 10 on page .893 reed instead, `...had returned to cities to ask ambers of City Councils what they thought, confidentially " NOTI9C Council semi, seconded by Fletcher, that Council approve the minutes of 1, 1978, as corrected.. The notion passed on a unanimous vote. ORAL COMMUNICATIONS 1, Gores Ti l 1 fin, of Mess Tillman A Associates, � � [ tsd;%, a _. copy of W R the United States, copyright 1975, which commemorated in print so many of the fine public works undertaken and com- pleted from 1776 to 1976. The volume had been commissioned by the American Public Works Association. Mr. Tillson was making the presentation on behalf of the Association. Mayor Sher received the volume with appreciation, saying that it would be a fine addition to the City's library. He read a proclamation setting the week of May 21 to May 27, 1978, as Public Works Week, and presented it to Mr. Tiltson. CONSENT CALENDAR Councilor Eyerly asked that the matter of Palo Alto Housing Corpora- tion management assessment be removed from the Consent -Calendar. Councila ber Henderson asked that the matter of the Golf Pro contract and the California Avenue Beautification project be removed from the Consent Calendar. The following items remained on the Consent Calendar: Action Items POLICY AND PROCEDURES COMMITTEE RECOMMENDS The Policy and Procedures Committee recommends to the City Council, by a unanimous vote, that no changes be made in the mann;r in which staff distributes confidential labeled inform=ation, and that it b at staff +ccretion to distribute same; should any Counci1rne ber be cor:erned about staff use of the "confidential" label, then that Councilmember should contact staff to clarify the matter and to so make the infor- mation public, if that seems appropriate. FINANCE AND PUBLIC WORKS LO44ITTEE `l'xi~l i E SCHEDULES u 3:8) The Finance and Public Works Committee recommends, by unanimous vote, that Council adopt the resolution revising Electric Utility Rate Schedules E-1„ f-2, and E-4, effective May 25, 1978, for a 29.2 percept, lI se in revenues. rate schedules E-1 and E-2'"6ut�'lne "ass recomrae _ imposed rate" on Exhibit 8 of Appendix A, would: 1) not increase lifeline consumer ram; 2) apply ap increase of 12 percent to the average'residential rates and 24 percent to 34 percent .increase to larger residential ; and 3) increase commercial and industrial rates between 17 percent and 41 percent with :the larger increases being placed on the large consumers. RESOLUTION 5547 entitled *RESOLUTION OF THE COUNCIt orturenrwpAL0 ALTO SING SCHEDULES E-1, E-2, AND E-4 OF THE CITY OF PALO ALTO. UTILITIES RATES AND CHARGES PERTAINING TO DOMESTIC, COMMERCIAL. AND STET AND HIGHWAY LIGHTING RATES. Pm, Finance and Public Wrks Committee recommendse by unanimous vote,... that Council direct staff to study lifeline rates within the commercial 9 3 I 5/22/78 • structure for non-profit housing on vaster suer complexes and to bring back to the Finance and Public Works Committee a report, with the Committee to discuss it again .and make a recommendation to Council. SERVICE EMPLOYEES INTERN14iI01U11 UNION SEIU In order to complete the implementation of the 1978-80 City-SEIU memorandum of agreement staff recommends that Council approve the resolution and the ordinance . for first reads rig . aaa ends ng the Merit System Rules and _Regulations and the Administrative Code, and that Council adopt by motion action the Coverage Provisions Document of the City of Palo Alto Employees' Health Plan. RESOLUTION 5548 entitled "RESOLUTION OF THE COM OF THE CITY OF PALO ALTO DING SECTION 519 AND SECTION 1401 OF THE s ;ER IT SYSTEM RULES AND RELATIONS ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 2.08.100(a) OF THE PALO ALTO PUNICI PAL CODE TO CHANGE THE DAY UPON WHICH VETERANS' DAY IS CELEBRATED (First Reading) PROPOSITION 2 CLEAN WATER AND WATER RESOLUTION 5549 entitled "A RESOLUTION OF THE NUNCIL OF THE CITY OF PALO ALTO ENDORSING PROPOSITION 2, CLEAN WATER AND WATER CONSERVATION ,. - _ ' _0F MOTION: Cowncllmewher Fa.zzino Moved* seconded by Carey, that Council approve the ordinance for first reacting, 114,0.the rocolutions and approve <a0e reccatnendatlona. The motion passed on a unanimous vote. CHANGE IN ORDER OF AGENDA MOT ION : Councilmember Eyeriy moved, slatofthtd by Witherspoon* that the matter of the Comprehensive Plan review, Itmm 1O„ and the Construction Tax, I t m 11, be . brought forward* with di mss 1 ode to take Place on the matte rof the copstruction tax first. The motion passed on a unanimous vote. PROPOSED C 5 (roniinued fr ION T T9, i 3 275:8) Councllaeembers Clay and Fazzino left. the.a bers and.did not participate in discussionon this item. Danny Fred, Planning ORPArtmest act Assistaet, reviewed the. baaground of -t the pied cons en tax, �ng that ceps ideratios of the construction tax had gathered 1#patws .f owi a the . Council's active of up'olding the granting of a variance to Mewlett-Psehard by the Zoning Administrator. Mr. Fred pointed out that the tax would be for the purpose of raising memos only, and that St wasnota regulatory enactment. The proposed or inonce.'#ndicates,' hewevvr, the manner in which funds raised by the tax ars to be. expended. -le etsemce, the construction tax would increase the total General Fund,available for various City projects, thus ;iaking.the increased amount available for hitherto unfunded housing projects. Mr. Fred said the ordinance set a tax rate of 66 per square foot of gross floor area, and included a provision for annual increase or decrease, based on changes in the San Francisco area Revised Consumer Price Index (CPI). He reported on the conformance of the proposed construction tax with local, regional and state objectives, and gave some experiences with construction tax levied in other cities in Santa Clara County: In his' detailed report he spoke of the uses to be taxed, and tax base alternatives, as well as tax rate alternatives. He referred to tables which showed estimates of land currently vacant, and he gave some uses'for the construction tax revenues. His report included consideration of the in -lieu housing concept, with procedures for and.restrictions on in -lieu housing. Mayor Sher praised the quality and detail of Mr. Fred's report. Councilmember Eyerly said he thought there was .see confusion about the parameters of his support of the housing tax. He referred to the job/ housing imbalance, saying he had supported the formation of a regional task force to gather facts related to that unbalance. In relation to the Hewlett-Packard expansion, he had suggested mitigation measures concerning traffic and housing, and similar measures had been placed in the building permit. He thought that the construction tax itself was not the wisest course of action. He thought the best way to handle the impact of large construction was on an individual basis, rather than making it dependent on the new ordinance, which is what Council had done on the Wheatley -Dillingham building permit. It was due to staff that Council had the ordinance before it that evening. The tax, regardless of what it was called, was a new tax, and the proceeds went into the general fund, to be disseminated to other uses as desired. He said he thought the proposed ordinance was too stringent on seller construction. He thought the section in the staff report on building in -lieu housing was non -workable. He thought Council did nothave the needed infor- mation to proceed on the ordinance at this time. He thought that the reports on housing he had requested some months ago, would give Council the needed information in order to make a wise decision. He thought that to structure further loam and moderate -income housing would mean Council had to first come to grips with the density problem, which, he said, Council had not yet been willing to address. He thought the construction tax should be viewed as a stew tax, and he thought that, in view of Jarvis -Gann, the Council should not use the job/ housing imbalance as an excuse for levying a new tax. Richard Kiuzak, Executive Vice -President and manage' of the Palo Alto Chamber of Commerce, said that the Chamber of Commerce had asked to have. a two -wank .delay on the construction tax natter, because it was so complex and presented so many considerations for thought. He said the Chamber of Commerce urged rejection of the proposed tax, -which they felt was coueterproductive as well as puettive; the Chamber had asked.for such rejection during discussions of the Comprehensive ; Plan, and it maintained its opposition up to the present. The fact that there wore two tax -cut proposals on the June ballot already indicated the tax- payers' feeling about governmental spending. If citizens determined that subsidized housing was needed, then the citizens should also participate in its funding. The Chaffer, he said, did not view the job/housing imbalance in Palo Alto ",..as necessarily a bad thing." He said the high cost of housing was a result of a simplex set. of factors, including the cost of land, labor and the like. He said community businesses provided about two-thirds of the City's annual.revenue, tint went for community services. Palo Alto's desirability, as much or wore than job opportunities, made for the housing shortage. He cited some disadvan- tages that c,uld result from subsidized housing. He objected to the 933 5/22/78 construction tax being tied in with.Hewlett=Packard!s.building variance. He criticized the City staff for what he called "improper handling", that resulted in purported conflicts of interest forsome. Councilmembers. Harold Justman, 3213 Ramona, thanked.Counci1merber Eyerly for his. "constant availability over the phone to all-the-concernedresidents of -Palo Alto." Mr. Justman said.that a construction tax on non-residential 'construction was included as Program 22 in -the'1976.Comprehensive Plan, and Program 22 had been removed from the 1977-199© Comprehensive Plan, -which removal, he assumed, had been well thought-out. He -hoped -that the return to consideration of the matter of the construction tax did not mean there was going to.be an acceleration of -office building; he.said the tax -was not supported by all Palo Alto -businesses, -for few could afford to pay. the amount of the tax reeutred, -particularly since the -tax - had to-be.paid prior to issuance of the building permit. Some busi- nesses, bunt to service residents-, such . as _ a- t aurrdro t, - waul d not add to job/housing.imbalance yet would have to pay' the tax. Though an ordinance which took such differences Into --consideration might.be difficult to_ draft,.administrative convenience should not exclude fair treatment. Carol Yanofsky, 725 Mayfield Avenue, Stanford, speaking.for M#d-peninsula Citizens for Fair Housing, read a letter from oMFH uraing..adaption of the construction tax; the letter listen some benefits that had resulted from landbanking and "piggyback" programs in the ;past. New citizens had not had to pay the costs -far isseence of•City bonds to build its.amen- i ti es : and. s t was right to have newcomers help to pay for -their main- tenance.. MCFH favored a tax based on -the number of new employees, rather than on square footage, but agreed that administration of such a tax was too difficult. MCFN did not support- the- in -lieu housing alter -- native in the draft ordinance, and wanted that- to: have separate .con- sideration-. One ordinance could institute the -construction -tax, giving new revenues for housing; another--ordinance-could provide tax credit incentives to meet certain housing goals in -the -Comprehensive Plan. Frank Koch, 1065 Greenwood, Vice President at Syntex, agreed -with Councilmember Eyerly that the construction- tax matter .needed- further study. The staff report, he said,- stated thatthe' construction tax was expected to produce $1.65 million; according. -to -that, Syntex cauld.be required to payup to $556,000, or 34 percent of that amount, if it completed the development of its site. He thought that was unreasonable, for Syntex had not changed its purpose',or.scope; tt had.io t.employee.. density ire- the City :He said that- any" developer #n -Palo. Alto paid a very high price for land, which reflected the amount the City had invested, but when Syntex '...agreed to lease- our: site from Stanford the tinsversite.paid the entire. Oest.of putting in'Hi1tviaar A' ie along. with uttlity' instal lation, and so -Palo A. to had- obtatnedt over• $4O0,O00 of improvements. without. cost to .ltealf,- though .Stanford. passed on- the .lease cost to Syntex, and other Hi llview Avenue ftr ms: Sya►tex-had .alrudy paid $4 million in prepaid leasehold fees to $tanfordl..al©ng-with about $6.5 pillion in property taxes on Syntex's-Htltview site. Syntex.had not gotten a free ride, he-meintained, and it. had. provided coammunity services, with conference facilities, art displays', and Common Grognd community garden lots, Among the ills.of inflation; -he said, were -- rapidly escalating taxes -and regulatory costs. -Palo-Alto had to deal with higher.deneities t4 solve its housing problem;. he. thought Palo Altans should be able to vote on -that issue. Lillian Godbee, 130 Cowper, . said .she -was on.. of. thousand;, of• Pa'to4iltans who -were forgotten, as political actinict: groups made -themselves heard. She objected to in -lieu payments as seeming - to r be s' .form . of political blackmail. She .said not Hewlett Pazkard, -but the..City, :had created the. housing shortage through down zoning...'She. fe t that # tett-Packard would do.. a better service for. the City ty if their money from the proposed 934 5/22/78 construction tax went into a job -training program,.which, she folt, weula mitigate the crime, of which her area was:a'victim. She thought the job/housing imbalance was desirable, -and might be useful.if there. were a general'recession. She said in-lieupayments contributed to inflation. She pointed to New York City and England es being fore- runners in the field of social innovation, as Palo Alto seemed to aspire to be; she noted those social innovators' "sad -demise." She -said that adequate public transportation should be Palc'Alto's first priority, and a mobile home park on the City Arastra propertywould do more .o solve Palo Alto's housing problem than construction tax or.in-lieu payments.. She felt that if Councilmember Clay was -to be unable.tosvote because of conflict of interest, he should be able to choose an alfiernate, or, perhaps, vice councilporsons ehould be elected. Sue MacPherson, 376 Diablo Court, spoke for-therPalo.Aito Housing. Corporation (PAHC). PAHC had worked with staff.on the housing element.. of the -Comprehensive Plan. The job/housing' imbalance- grew worse, and PAHC urged adoption of -a policy that "...housing-orpayrnents in lieu of housing should be provided in conjunction -with new offica..retail_and. industrial construction," as described .in' "i", ' L" and "k" in the proposed: resolution amending the -Comprehensive Plan, -along with recom- mended passage of the proposed construction tax ordinance. Though the housing problem was regional, that did not.preclude Palo Alto taking steps loc:ily to attack the problem. Unlike' staff- PAHC thought the construction tax ordinance should include the'tax credit -sections to permit developers to provide housing in lieuoof the construction tax) with a tax credit for in -lieu housing to be given only if such housing. is provided at the same site and in conjunction with the project subject to the tax. She corrected any possible-misunderstand°ing:that PAHC's spokesperson at the May 15 meeting, Mr. Goldsmith, may. have spoken critically of the construction tax, for suer was not the case. Ms. MacPherson said.PAHC favored Prograra.i8 in' the Compr=ehensive Plan, that individuals and families unable to afford market rates should have some portion of multiple housing units, so that there-would.be economic mix. It had been decided, however, not to burden the' proposed twelve units of housing.Hewlett-Packard was to build with that request, so as not to encumber the innovative housing plan in its' infancy. Hans Sorensen, 360 Leland Avenue, raised .some matters which he thought made the construction tax inequitable; be thought,the.ordinance .was a wrong being. generated to .right . another. wrongg: Mr. - Sorensen. said that. the real problem was too many people; he' proposed that a tax be levied on those employees who did not live in Pala Alto. lie favored Council, member Eyerly°s idea of levying taxes on an individual' case bads. Stan Duke, 412 College Avenue, said he .was -confused, ,and he .rhetorically asked the purpose of the construction tax: Atit was for public housing,.. other sources of .revenue should be explored; i ftt was to .retard comrner- cial development in Palc Alto that wish for retardation should be stated openly. He was a tenant in the California Avenue business district, he said, where builders constructed bui:dings, -then leered th n end.walked away, .leaving others to solve problems created' by' those buildings. It was to.that environmental impact that he would like to see the construc- tion tax applied --such matters as -carpools', p'arking.problems, .strain.on . City streets and the like. Mr. Duke said his proposed tax would be lessened Insofar as the builder had, in his° project, .mitigated. the ills his project gave rise to. He thought -more had to bey done by the City and builder than just seeing that the building' comptied-with -the zoning ordinance. MOTION: _Councilmember Eyerly movade seconded by: Witherspoon, that Cotencil .continue discussion on, the housing tax- until the requested reports were before Ct unci T. 935 5/22/78 Councilrrembar Eyerly said those requeeted.reports included.those.re- quested regarding the Palo Alto Housing Corporation, plus the reports of the Regional Housing Task Force. Nice Mayor Brenner said she thought it inappropriate to continue dis- cussion of the item to another time. She wanted to.have the present discussion go on. MOTION TO CONTINUE FAILS: The motion to continue failed on the following vote: AYES: Carey, Eyerly, Witherspoon NOES: Brenner, Fletcher, Henderson, Sher NOT PARTICIPATING: Clay, Fazzino Counci 1me ber Henderson said .that he w s surpri sed' that' Counci lmember Eyerly had wanted more information, for he had appeared, in quotations by him in.the Palo Alto Times, to have had definite thoughts on the issue. Councilmember Henderson said that all studies on job/housing imbalance shos+ed. a serious imbalance. The most important factor was a . . two -and -one --half to one imbalance of jobs to housing in Palo Alto, with extremes in relation to moderate -income families. School enrollment in Palo Alto was dropping faster than in other cities in the area, for young families "...simply can:- t afford to live here." Some innovative landbanking and housing programs had -been undertakentocorrect the imbalance and supported by taxpayers; now there was discussion of having business.and commercial con Tribute to solutions of that unbalance, with a ore -ti e.contribution. Only four of more than'200 cities. in California did not have a business license tax, with Palo Aito'beirg.one of four; electric rates were 66 percent below other rates in the area, therefore it was fair for Palo Alto to levy this one-time tax. MOTION: Councilr€aember Henderson roved, seconded by Brenner, that Council adopt an ordinance adding Chapter 2.35 -to the Palo -Alto Municipal Code imposing a construction tax, after deleting subsection 2.35.080, 2.35.09O.and.2.35.100 and any other references to.tax credit. Council r Carey said he opposed the motion for -it -led .toward a. discriminatory, regulatory tax. He thought the issue' e job/housing imbalance and. the. issue of housing .were not connected. Hz held that the job/housing .imbalance did not relate to the cost' of housing; -the imbalance had existed for many years. Was the proposed tax awed. at .lowering . the cost of housing.or to provide a partial solution to.the-job/housing imbalance within the City limits? He thought i t' a faulty premise, to say that within the boundaries of the City there should be job/housing balance. Boundaries had not been set on the-basts.of.predicting.housing.. needs within the area. The real problem was transportation to end from wort, and the proposed tax did not address -that problem. Those who agreed with him would also agree the money raised.frcm the proposed tax should go for public transportation. If the money from the proposed tax was to reduce . the cost of housing the money thus obtained would be a drop- i r .the bucket, having a detrimental effect on a small number of Palo Alto businessmen, with, as one speaker had saki, .one business winding up .paying one-third of the tax. He held" it was not -fair; the tax wes.discrlminatory in that way, and regulatory -in -motivation, in that it reduced the number of job opportunities in' the City .by making. it ore expansive to provide facilities for jobs. Gftcoursa, that was one way to reduce the job/ housing imbalance, but it did not get at the cause of the problem. A recent controversia7 report by Housing and Urban Development (HUD) said that localities should allowosmaller houses and lot sues, .add zoning for higher density building, with.requirement for 936 5/22/78 Corrected see page 1019 garages.to.be eltminated;.the.article said trailer parks should be permitted, .with the community, . not .the developer, to pay for sewer, schools, water and parks and.other community am+eeitits. - -Councilmember Carey said he thought HUD's proposal was totally unacceptable to the City of Palo Alto. He said he himself was not in favor of high rise development --he did think that -to lower the cost of housing, densities . had to.be increased. He did not think that-would'be a solution that was acceptable to.the City. He would oppose the motion;lhe'would vote for a continuance.so.that all elements of the problem could.be considered Councilmemeer Fletcher said she -would -welcome putting .the construction tax proposal .on the ballot, along with the matter ofepoesibie re -zoning of some industrial land to residential. She said heusing.costs rose -in Palo Alto before they rose elsewhere because the:zoning.for industry was. top-heavy compared to zoning for resi dental al . -She sai d-. that Palo Alto was trapped so far as the proposed construction tax' was'.concerned, because approval of the Hewlett-Packard variance was -tied -to -the ordinalce. She thought that opened the door for litigation because the City would d not have required mitigating measures against the impact created by the project. She .did .not -see haw the City could now make the construction tax appiy.oniy.to individual projects. 5he.asked Mfr: Booth if it would be.possible.tc.wrlte into the ordinance a -provision whereby an .applicant could make .are .application fnr a _varsiance i f .there were elements of the proposed.projeect.that.would i pose.an unfair burden (on -the community). Mr. Booth said such a provisioncould be.created but-it.would take some tine to develop one based on anything other than .o . e€tive criteria. Councllr ber.Fletcher said she wouldsupport the motion and at a later ti .ask.for.sucb a provision. Vice Mayor Brenner said that.Hew)ett-Packerd._bad-helped-Council focus -or, a problem many had recognized for years, and put -the City -on the spot to establish a more specific housing policy. Discussion for mitigation for the Hewlett-Packard project also set a time frame. She:. said she had an entire.shelf .of housing studies, county, regional and local. Associa- tion of Bay Area Governments (ABAG) was a conservative organization. An ABAG 1955 study said "A prune example of thin 1r balance is industrial land area. Itost.plans appear to provide -for industa ial'-.areas .beyond the. needs of.projected resident population.u-•Vice-Mayor Brenner cited the., passage as a .sample of conservative regional thinking, among the reams of studies by the county and Palo Alto es -well: -In the matter of one land developer paying more than his share, she referred to page 861 of the -Council minutes of April 17, 1978, which said -Chet the zoning for the 65 -acre .corner at Arastrad ro and ._Foot i i l Exprre sway .was changed from Hoo€1rAg, -to LM -5, Industrial. According' to* t e -master- pisn . book et which Syntex band furnished Courrc11.at .that time„ -the zoning -change had been in .about 1966, .and the aarrsa -nearby. had been zoned for housing until - about 14as3.. _She . de monstretad that, .therefor. the -entire piece of land had not been . a part of -the earlier l trial -Park .plan_ .She said that the rre-zonings .bad _coontrlbuted . to _ the . housi nr by .taking . away res 1 dents a 1- dense i op nt land while at- the s ame's crees i n .the number of jobs. Stanford, with the use of Syntax's' wel l 'presented master plan, .had.trisd to have the City change the General Plan desig- . nation.from lousing to Industrial -and to - proem*, e, . as. Induatrial , land which bad-. been .zoned by the County for - heusiq: - The Plannieeg Ceaeeaei ss i on had turned down -the changes . but the Counci 1 ' hsd accepted - i t, which, though legal and proper, paved the way for" tbae housing shortage, in that. a potential of 250-340 homes with R-1 density -bed been :lost, concurrent with a significant expansion in the needlor hags. The ftgures.giveen by Syntex , at _ tattier' tieee for .its total - project, were 590,000square feet of floor space.. The-City.Bullding Department -sherd 542,270 square 937 5/22/78 feet were.now built; 140,130.square-feet.were.yet.to.be..bujlt,.when and if Syntex -completes its master.plane-with the tax,.at the.proposed rate, to be about.. $92,000; .not -the .$0.5 .rai l l ion as .earlier _mentioned. She felt.her wdords.demonstrated-that industrial.building did exacerbate the housing problem. Councilmeaaber. Witherspoon .said the matter -of ,the construction tax had. started out . as . an agreement between - the- developer and . the Planning Director.that happened to fit a policy in -the Comprehensive Plan. She felt Council sbould.not make_e hasty.decision because the.tax was, first . of . all , . to create . bousi ng, .yeti t had to -be ackuowledged.that .the money raised.would not be enough; also, with' the' election -.coming up, it • was -not a.good time to think about new sources ref taxes: She -recalled a former -concern of Council's on Article 34, -in the-State.constitution, about the matter.of using.city tax money to construct -housing-- she thought. that warranted another look. Sbe .pointed soot' that .one _of .the . . . few -places it was okay .to .spend.Coraaunity Development -Block Grant funds was on -housing, .and .there also were other sources- ofemoney _for housing. Council . had shade . a _ rather hasty decision on' granttnge the . He►wlett-Packard variance; .there was still a year .to rectify.that, w -she -understood. She favored having the matter continued. Counci lraember £yerly said las s. thought :that waat .was -- to - be -done .wi tah .the tax money.bad-to be closely examined. The reports -he shad asked for would-show.how much low- and. derate-income .using. there was; also, it should be.known-what.segment.of. the.coi wnity:wowld.benefit fr n the incoeeJrom.the construction tax, and whether or not .that could be accomplished. .1f.it had.to be done with higher density, a community which could_suppor°t the density -should be found. Staff was-reestudying the Hewlett-Packard coatiagency, . and also,staff.comments. were needed on Syntex's .development plans, as well as- cots- from -Syntex. itself. He wauld.vote.against the ordinance now before` Council -she favored a continuance, as he had before so moved. Vice. Mlayor.Brenner said she had used Syntex as. an example. of -same points she had wanted to make; she did appreciate- Syntex's. cordiality to the public. Hayor 4her .said .that .he .thought-that-wbtchever ..way.be ,voted -the -ordi- nance- would not be adopted. He . lad Abeen . helped-• by= heeri argu sits - pro . and con..He .bad been surprised that' scw speakers had -not -felt the joblbousing .1ebalanca was a problem, for studies' byr reliable agencies. shared- there _was . a serioes imbalance„.which-led to' transportation and compute problems. .He had never held -the -view that' Palo'Alto could provide.a.bouse.for every job. The difficulty wtth.working.out.a construction _tax .1 n an ad hoc war .etas thin to :the- recent -past appl icants - had baen unwi 111 g to worm. i r3 . that way; - t,'hey - wanted a general i red policy. applicable to,.atl future commercialiindustriatconstruction. The staff report •bad .said, . so far as equi tabs l ty- was - concerned, that sweat l projects -.would -not be. stringently taxed —if -that were.to-be.a problem a floor could be set for taxing, square footage a unts below _which . tex could be -reduced or not ever -levied, .. He- felt- Counci tuber . benderson'. s rrwtiors .wduld.sw►ake. tin: in-itev housing .tax edit: plan..work. Mayor Sher cold . be did .not .thiok .Council . was !rushing'- t nto the- construction . tax matter. r.. -The .staff .report .was -excellent and well . thowgbt _out; the matter had been . around -for a . couple -of - waeeks. See' -other- Cowl l _actions had been .fans more . rush d . As had _been proposed ion the :Ce mprebens i ve Plan,.. ta.x: r_of.ssea.source should go- to ard' alleviattng the -ts portatio and.coaeete.proble+e; the transportation section'ofethcCompoehensive Plan,- he had said at' the- time oft .adoption.of .tbe:Plan, was the key element. of the Plan, yet .the tbunfii l , ' on•.a7 di i ! =vats, ..bad .taken that • saction .out.of .the ,Flom. Hs hoped that-the'taatter w s - nat'.dead and that it could -find -application in.this.context.. He_ssid.he,.htmself, was influenced. by.Hewlett-Packard'.s .wi'lliegnsss.to-respoed.to- the -problem of job/housing.tmbalance,.in-the context of wantiag'a-general.poltcy; their willingness.to.do it.showed that it was regarded-.as-a'rational-approach. Many communities had the tax. He thought that revenue from the proposed construction .tax -in Pa1o.Alto .should.go-.into-the General.Fund with the recognition .that.it.would be.spent-on the'Ctty's housing.program. He said he' supported the motion before them. Counci lme'mber . Carey .said . that..be .wanted: to.respond, - so. that .when .the matter of a . transportation tax . came ' before Counci 1 ` i t soul d = not be said that . he. had -tacitly supported it. He thought his' earl ier cements may .have been misunderstood: .he-had.said. that if the tax was. a posed.for the purpose of.helping to solve a problem of job/housing'imbalance, the. Ctty. was better off marking the revenue' so - rai sed' for -transportation rather than for housinn. He said the purpose. toward -which _the .construc- tion tax money was to go was not yet known, and that -was what he ob- jected to at present. Counci 3r ber Witherspoon corrected _one -of :Mayor Sber.'.s .state ants, saying -that in other cities the construction tax was - on -al l new construc- tion. The inoney_went .for the general purpose-ofpublic' Improvement. In Palo Alto it would be a segregated tax for aavery. smallpartof the commuraity,.and.for_a special purpose, though.that'was'.unstated, for that would.raake.it.a.regulatory tax. Counci lmember .Henderson read .lose excerpts .from:the Palo Alto Times. which quoted .Counci imember Eye -1y as saying -that there was a housing problem and, a. job/housing imbalance. Coeacilmember Eyerly.said that.the-Palo Alto Times,.had.asked.hir what he thought was good ablaut a housing construction tax; -the' ►'imes had not asked him what he thought was bad about the tax, nor tf .he.was going -to vote_for.it,.and.so.on. All the facts had-not-appeared.in the article from which Councilmember Henderson had quoted. Mayor.Sher pointed out tbat.a majority -of -the Coueci1,-that.is, five votes, -were. needed for passage, since the measure before them was an ordinance. MOTION - FAILED: The Chapter 2.36 to the tax, after deleting other references to motion that Council adopt an.ordinance adding_ Palo Alto Munfcipal- Code, ,impasing_a:construction .subsections 2.35.080; 2.35. Cam` arid .2.35.100 and . eny tax credit, .f31le'd-one the folleeeing vote: AYES: Brenner, .Fletcher, Henderson, Sher NOES: Carey, Eyerly, Witherspoon NOT.PARTICIPATING: Clay, Fazzino MOTION .TO RECONSIDER:. Mayor Sher..oved, - t.coaded .by -Fletcher, that the motion to.cantonue be reconsidered. Mayor -Sher pointed .out . thathe had .been one of - the-wWo had voted on the prevailing side of the prior motion', and was .therefore in .a position to make the foregoing motion. !f3'IlON . TO . RECONSIDER .-PASSED: - The notion . to rscons i der -passed on the following vote: AXES: Brenner,-Eyerly, Fletcher, Heed.non,.Sher, .Witherspoon NOES: Carey NOT PARTICIPATING: Clay, Fazzino gag 5/22/78 29 MOTION: -Mayor Sher. moved, . seconded by . bendersan, - tbat .the .matter of the construction tax.be-continued to a•daterindefinite. Mayor Sher .said. he -intended that -after .Council ber. Eyerly-received .his i nfor matton . i t .+soul d be .appropriate. to- place' the- matter on' the agenda again. Counci lmsmber Carey .said he would .support: the .m tion -to -continue with the -understanding that staff was to come back' with" those. reports that.... Councilmember Eyerly had asked for, along -with -those broader analyses of the job/housing _imbalance factors, . (really the : negative effect of a' job/housing.imbalance) and the separate -issue -of the cast of housing. Councilmember Carey emphasized that the' job/housing:.imbalance and the cost of housing.were separate. issues,. and he asked: that .staff .treat tier- . as .such. He anted .that in the information -staff roturned to Council with be the ount - of money.that Palo Alto has -spentover .the .years on each of -the issues , (job/housing imbalance and - cost- of • housing) , and .the effect of the .Comprehensive Plan or,- job/housingeirabat'tance. He asked that the funding proposed . for. fi scal .year 1978479, * al ong with the l andbanki ng , be included In that -effect. He . also .asked - for the recant aerndations .of.the "8lue.Ribbon" committees that.HUD-hed.put together. Reports on .those matters he had listed, he said,- should be . before Council before the proposed ordinance was voted on. Counei lmember Witherspoon asked . that .added to .those- reques is . be some discussion on aow Article S4.in-the.State Ccnstitution=would.affect the construction.tax matter. Mayor Sher.said-he thought -Councils zber * Fletcherwould-also-like some. information on .the possibility- of re -wing* some- property tu.provide more housing.. -The matter could.be. placed:on=the:agenda .then staff was. ready . w•i th t e .1 nforuation, or .Council bars e_ under hew Business, could ask that.it-be.placed.on the agenda.* He* said: that, in .his'view, .staff had no.farther assignment -other than, if the motion passed, to return to Council .►pith the information. The matter was being- left- indefinite, but also being -kept: alive. Councilmember. letcher expressed-concern-thmt staff.-was-bein .asked. to-.. undertake a massive. study. Ehe--asked Nr. Knox if-awch'staff- time would be required. $aphtal1 k ox,.Pirector.of Planning, said -that hweeould.like to.have... tiota.to-.ttu4y. t e requests to change. -the -ordinance. Itiff7had.some deadlines.on.some projects, . such = as * 1 ett, P ackard . deadl l ne , . that .. . Cs ci l , bad . eooroved .with respect .,to : the = rlett-Packard =variance , and . upholding the.Zoning.Administratar's decision and atso=t deadline for the Loma-Verde/West Bayshore . fstage. r oad of De er= 3l; .1978. He said.. he thought .staff had from six months to ome year to -afoul ate -.the information -relating to .all . the . s rgges ti ens'- ors- nature .o f-. the' construe tine tax, -ago* .with the use of the revenucthat'would,result. He would give Cord i j:progress report of a few paragraphs in.a*few weeks. Countilmember.Carey said that,,tied-into the- r3ett-Packard variance - was . a wtl gati on .measure of the housing._ taxi=Goad 1wmber: tetch er and $r. -Kmox -had . just made that - tie-in.. ' Coimri r Carey -stressed -that Camel itself .hard not mad..that .tie-tn: last: week's discussion on the. idheatimy- acobson . proposal . had had a.aAngative.declaratiOvescaraendatioo made: on the . assumption . that. Counci 1. wou d pass a - businsss l l cense ttax . _ That.was . differeat from. e . "....ful l4lown onviroaeieatal . fact report, that. oog.o er.things,.discussers. the.possib1llty-of-,.housing tax and . a pay st. The nitigation .treasure. that'.t#ris Couwril - pat .into ,thin'-Egv1mental 94 OT 5/22/78 Impact.Report.ceXtlfication had.nothing'to do.with.housing. It had to do.with the land coverage --the buildirg.coverage'of.the lot.which is now limfted.to.21.percent. That.was.put•in as•a mtti•gstion.measure, and I hopewe don't.confuse those.issues-*they are separate,.end.at no time did this Council say as a condition to certification of the..EIR or.as-a condition to approval that there.mandatorily, absolutely, i+ust be housing .connected with that approval. That was not' the case." MOTION TO CONTIN!lE.PASSED: The notion that the matter of .the .construc-- tion tax.be continued to a date'indefinite'passed.unaaimously, Council- members- Clay and.Fazzino not participating. RECESS.TO.EXECUTIVE SESSION Mayor.Sher.said.recess .to.Executive Session.would:take.about fifteen minutes. Council.recessed.at.9:40 to 10:05 p.m. EXECUT IVE . SESS ION --ORDINANCE ADOPTED Mayor Sher_ aawouaced.that.the following ordinance had been adopted in Executive Session: .ORDINANCE 3058 entitled "ORDINANCE OF THE 'CIL OF TiPI CITY.OF.PALO ALTO AMENDING .THE 1577-78 8UDSET.TO PROVIDE FUNDS FOR .OUTSIDE LEGAL SERVICES. The budget.amenchent .or=dinance passed -on a unanimous vote. CO PRE NSIVE . PLRN .ANNUAL REVIEW .AND (CMR:268:8) Mayor .Sher . reari nded .Council that . he Comlarehersive Plan update had been. continued.from.the May 15 meeting, with specific items I, J, and K now before them. . MOTION:. .Cour.cilmeeber Henderson.introdh ced. -f4.l?.e iog.res►olution, and, .seconded .by .Fletcher: cowed .its-ado.tian by Council: RESOLUTION .OF THE COUNCIL OF THE CITY OF PALO ALTO ACTING AMENWENTS TO THE COMPREHENSIVE PLAN.FOR THE DEVELOPMENT OF THE CITY Of `PALO ALTO . . RELATING TO INDUSTRIAL .AND COMMERCIAL DEVELOPMENT Couocilmember _Henderson .said the natter .befog thew was closely related to the matter -of .the _construction tax. Councilmember Carey said he would vote against tip motion. .1f -it failed he wouid_vote . to . have the amendment co tiatd, -forit directly related to ,the tt.r . of .the construction . tan s whin .had already been continued. MOTION.FAILED: The motion to adopt the resolutioe-aaeandin . the Comprehensive Plan failed . on . the f of l owl ng .vote (needs' fi ie• votes to pass) : AYES: Brenner, Fletcher, Henderson, Sher NOES: Carey, Eyerlys Witherspoon ABSTAIN: Clay NOT.PARTICIPATING: Fazzino 941 5/22/78 9 t ) f MOTION '.TO.CONTINUE:..Counc1lmember-Carey moved-that.the matter of adoption .cf.the .amenduent.to.the Compeehensive' Pien;: specifically items I, J, and .K, .be .contlnuedto.a.date incefinite. MOTION .TO.CQNYTINUE . PASSED: The .motion .passed .on' -the following vote : AYES:. Brenner, Carey, Eyerly, Fletcher, Henderson, Sher, . Witherspoon ABSTAIN: Clay .NOT.PARTICIPATING: Fazzino Mayor•Sher.told Assistant City•Clerk,.Sbirley.Pottras,.that Council! weber Fazziuo had wanted .to .be -on record -ac -pot participating on the. matter of .adoption .of .the .amendment .to the- Cauprehensive .Plan, nor was he present..during -the discussion on the tter •_ i n • the Council -chambers. REPORT-.0E-.PLANNING.COMISSION RE. MiarrtfirraINrr EAtlIttiT' S710Y Councilmeaber-Carey said.he owned property. located'.1,v the Downtowm Assessment District; one of the .proposed solutions .to -parking- prob1e s could -well result in a further assessment' in'theAceentown area, and t!iough;,.unor.current.conf11ct-of,inter st'. taw, there eras' no.con lict for'him$ he would limit his_participation to-sto-stAe general comrents, . Anne' Steinberg,.Cha.irwoman.a.the Planning_Ccr isston, said that the Planning -Con n1ssion .supported.tha--recoa ndations- Wttre .staff report, finding .that-. the recommendations -mere consis ent-w th four of the Pr`'ogra s 1n the.transportattton section -of the -Comprehensive Plan: progr?ms _28-31. A multi -parking structure would el so' he consistent wi th - Comprehens i ve .Plan Housing program 11, whi ch read Foci 1 i tate the develo nt.of residential units on_air-righ s--on•pubtic and private. Parking lots in copmercial and i ndustr•i al . un1 is .The Planning Com- mission, in response to concern about the size.of.a structure, recom- mends a complex of -structures; the CommiSsion's' co cer ns .about.bulk of Corrected structures. Was. reflected .in its minutes . of- Apr11' 12, 1978. see page 1019 Ted Nogucbi , -C1 ty Ergi near, said .the . l976 CapitalImprovements Program (CIP} ,had given rise to the parka stt dy, .and- the-_st r had beer_ _ approved _ by the Finance and Public .works : Comrrrrtttee .11arn<h . 30, 1976. Council approved the Finance .aertd-.Public•-kiorirs`Gar -recommendation on . May•.10,-.197C, .and _the . study . had _proceeded'. according' to- recover= - ti *as _The -study's long-range -aspects _ were'. ipg:presented .t4 Council that evening, . along with . irmediate and'-raid;,re ac ts _of the study. $cause the .study was so detailed, and became' t Finahce.arad.Pub11c Works . C.omeittse _ryas . original ly : iQvai eed_ f p : recommit : the': stsrdy to. the Counci1-, •. it • seed - appropriate. to refer the study back .t3 . the Corti ttee for review. and rec datioo, rich he .so recomroeoxled: .If the Cecil wanted to take up the study that evening both staff and .the consultant were- prepared.to.answer questions. 1 MOTION.TO.REEER Cauncilmemb rr.Eyerrly.moved, .seconded _by.Fa ziDo* that Cr cii.refer-the .parking feasibility-s.udy.a :#a.Planniag Commission r eeodati .ta.t a F.ivapc+e.acrd.Pub 1c-.i orks•Ca ittee. L 11 t an &od'se, 130 . Cowp e, said - t!rat . a %s boob -1ri -the report.that .fees .could be. charged . for -non-resident parting might' have .questionable legality. Counci limber Henderson complimented- those :-had Aram _up -the tart ®n its -4011 thought .out r cce aadati ors. Counci lmember .Carey .said .be .would .vote..for..the-refsrral_to .Conaaittee.. He noted that the report .sa-td : they.sbortage'.wovl dheet -be:eradicated, . but only amelior.ated:..had .any- consideration. been' givan-.to perhaps -providing a .shuttle .service _for .long-term parkers? Mr. Pierce, consultant.forti.the-propperty, .'.said:•thst:the:.tssue.had.been looked.at, .and 1t.bad.been felt that the.size'of-thae- Parking District was quite -small--there .would not be'large usage:of- a shuttle -service. Vice .Mayor .Brenner .asked . i f . Counci lmembers.,f, o -were .not .on . the Finance and Publ is -.Works .Coaaai ttee . hcd to .go to-lhat:ommittee meeting to hear the consultant. Mr..Nogucbi .said_tbat .if .Council.wished.to.bear_tha..consultant .he would appear-.again.st.the.specified.Cauncil. meeting. .Charles .Welker, .Acting .City •Managers .said tt*-consultant .would appear,. aed.elso_Council .would have the minutes 4fro ttae -i inance- end Public Works Committee -meeting. MOTION .TO .REFER .PASSED: The -motion _t _refer the, perking feasibility. study . and . the .Planning Co ission- reor ndatio - to'ttie Finance and Public- Works .Com ittee passed on a unanimous vote. CA�.IF.R CIA BYENUE BEAUTIFICATION PROJECT (CMR:287:8) r1 l.Fi�l rL/.rl i�.dY1 �kY�l.Oi�al.A�� Counci lr ;er Henderson said that a giber of Co-op Grocery had called him to sa. that the Co-op had not heard of the proposed beautification project previous to ;paving seen it on that evening's agenda. He asked staff to tell about what notice procedures had been taken. Ben Pawloki, Director of Public Works, said that the California Avenue Development Association had been working with architects to develop preliminary plans for the area. A member of the Co-op sat on that Board of Directors. That evening's action, however, Mr. Pawloski said, would in no way initiate assessment proceedings staff's request to initiate such proceedings would come the latter part of June. Proceedings that evening were for the purpose of for aal i zi ng Environmental Impact procedures. MOTION: Councileember Henderson introduced the following resolution and, seconded by Eyerly, moved'its adoption by Council: RESOLUTION 5550 entitled "A RESOLUTION APPROVING PJ C1%UI Ioilzi'4G FILING OF NOTICE OF DETERMINATION." MOTION PAS : The motion passed on .the fol l owl ng vote: MI5: Brenner„ Carey, Eyerly, Faeii no, Fletcher, Henderson, Sher, WittersPoCI s WOES: one ABSTAIN: Clay PALO ALTO HOU T �iAfi�1'_ ASSES�i' (CMR:285:8) Counci lmember Eyerly lbservsd that the mommy to pay for than menegaMent assessment of PAHC to to come from the City Council's budget for profess 1 ooal services Since that proposed funding related to the 943 5/22/78 proposed management audit of another item on the agenda, he said, he would move to bring that matter forward. MOTION: Councilmember Eyerly moved, seconded by Witherspoon, to bring the matter of the management audit forward to be discussed along with the PAHC management assessment. Mayor Sher said he would vote against the motion: he thought the two subjects were too different from one another to deal with them together. He wanted to avoid confusion and not talk about them as though they were the same subject. Councilmember Clay agreed with Mayor Sher; he suggested that, funding be by budget amendment, Mayor Sher said funding could be changed when Council discussed the matter of the Palo Alto Housing Corporation management assessment. Corrected see page 1019 1 MOTION WITHDRAWN: Councilmember Eyerly withdrew his notion. Council - member WithorspQgi,,:3a _ttie raker of the second to the motion, agreed. CouncilmeMber Henderson said hi had foreseen that the $9,500 assessment would be made. He likened it to the recently completed county housing study, and said it analyzed files, budgets and would include interviews with staff of PAHC. The amount was over one-third of the PAHC budget, anc took valuable time and did not cover the Colorado Park project, nor Webster Wood, below -market -units, "landbanking aed the like. He would like to know hew much extra it would cost to include them. He thought the proposed assessment was a waste of City funds. Councilmember Fazzino said he had not been present on February 21, 1978, when the proposed assessment was discussed, and he thought it would be "a colossal waste of time." He had had no dissatisfaction with the work PAHC had done. The county housing study by King -Barbour "was in absolute joke." They had been paid to interview Councilmembers, and Council - member Fazzino thought a couple of Stanford students could have done the same task. He asked Naphtali Knox, Director of Planning and Community Environment, if the proposed assessment had been suggested in his department's report of about three months ago. Mr. Knox replied that additional tasks to those mentioned in his report had been assigned. ..."Staff will prepare information on low- and moderate -income housing and landbanking. . . ." Councilmember Carey objected to spending $9500 for interviews conducted by questionnaire directed primarily to those who were already involved in the p rogram . The ques ti on of jobs and hous i ng was being dea l t with in pert by the proposed construction tax —that would best be addressed by a citizens' committee. A study regarding PAHC should address the cost benefit of whet ,PAHC was doing. He would vote against the assess- ment. Mayor Sher said no motion was before Council.. Councilmember Henderson said he thought that what the study proposed to do should be clarified --the contract cover "...the first four tasks. The fifth tas k...wi l l develop recommendations ons for further inquiry in the second phase, and in so doing,...Colorado Park end -belo+w-r arket rates," was not covered. Mr. Knox said that Task Five was in the second phase of the study, and looked at'ire City's goals and the goals of the Comprehensive Plan. He 944 5/22/78 did not know what it would cost to study those individual projects. Task Six said staff was to prepare data on.low- and moderate -income housing --a motion Councilmember Eyerly had made some time back. That data was just about ready. Councilmember Henderson noted that it had been stated that it would not be possible for the consultant to assess the overall success of the program within the scope of the contract. Councilmember Eyerly said the contract gave the scope of services and identification of the PAHC program. Tasks three and four analyzed the PAHC organizational structure and made findings and gave recommendations for implementation. That showed PAHC's effectiveness, and showed if it could well use further money. He felt that effectiveness should be known. An audit should be on hand for spending the taxpayers' money. He thought Task Five, giving information on the City's landbanking program, and its relationship to low` and gyrate -income housing, was very important, before the City went further. He thought a Task Seven should be assigned, and it would spea to an analysis on density and its impact on land costs --that had not been -supported by Council. MOTION: Councilor Eyerly :roved that Council approve the PAHC Management Assessment contract. MOTIO 011EC: The motion died for lack of a second. r � F Pic COT CT (CMR:25a:s) ,on n� a "ray 1, 1978) Councilmember Henderson said that contract, under 2 a), should read "...regulation of play." The -third line on page 5 spoke of "...necessary to learn,:" and Councilmember Henderson expressed confusion on that phrase's meaning Acting City Manager Charles Walker said the words .should read "The golf professional shall devote his entire. work time and personal attention to the operations necessary to conduct a modern and efficient golf course." Th't phrase Councilmember Henderson alluded to had Peen a stenographic error. Councilmember Henderson said that the only termination clause was Section 21, saying the golf pro could terminate the agreement at the end of 12 months. He preferred the two-year contract, and gi ld vote "no" on the four-year contract before Council, though he intended no . reflec- tion about lack of confidence in Mr. Hartley or staff. The contract made no provision for the City to terminate the contract, and that was his objection. Councilmember Carey said he had objected to an earlier proposed contract which had given the City the unilateral right to decrease the golf pro's cceepensati on anti le holding him to a four-year contract. He had thought It gi ld be fair for the City to offer a two-year contract and not have the right to reduce the compensation. This document nod before Council was "entirely different." He would suoport the contract before Council. MOTION: .Courcil,ber Carey moved, seconded by Clair, that Council authorize the Mayor to approve the golf professional . contract before Council. Mayor Sher said there had been discussion about the term of the contract; he reviewed the elements of the contract. He thought the City was being locked in o a four-year contract without the opportunity to re -open or review. He thought the tarry should be shortened. 945 5/22/78 i 1 AMENDMENT: Mayor Sher moved, secohded by Brenner, that the golf pro- fessional's contract term be set at two years. Councilmember Henderson said the contract would then run from July 1, 1978, to June 30, 1980. Mayor Sher and Vice Mayor Brenner agreed to that modification. Councilmember Clay observed that paragraph 4 of the contract said that the golf pro and the golf course -superintendent would cooperate to maintain the course. That had been a point of contention which appeared to have been settled, and he preferred that no substantive change be made in the contract. 'He would oppose the amendment. Co unci lmember Carey said he preferred not to amend something that others had negotiated. In -this case staff might lase credibility with those it negotiated with. Both sides had had to compromise in order to reach this agreement, and he did not want to return to the point of re -opening the discussions. Councilor 'grey reviewed some of the compromiser both had made; he wanted no further changes, and wanted to have the program start with a first-class golf professional. Councilmember Fletcher said she did not think the clause as the contract was now written was in the best interests of the City, and she thought it was Councilmembers` duty to change it. Councilmember Eyerly called attention to section 21, "The golf profes- sional may tenmlnate the agreement at the end of twelve months. . . 1" adding that the golf pro had to give 183 days' notice, which he thought nave the City ample notice. Paragraph 20 gave the City protection should the golf pro default, "...in any of the covenants hereby agreed to be perforated by the golf professional, or if the golf prfessionel violates any of the ordinances of the City of Palo Alto or any of the laws of the State of California (with) negligence, inattention, or irresponsibility, the golf professional shall be adtudged a bankrupt_ the City may terminate this agent. . . ." He urged that Council move forward with the contract. 1 N Mayor Sher recalled that an earlier discussion on the golf pro's con- tract had said the contract should contain a provision for the annual examination of lease pant a unts, and for the City to review the employees of the golf professional with the City to be able to terminate the agreement after the first year with six ,nths' notice. This contract before Council was quite different in those respects. He thought the contract should not run so long a time. AMENDMENT FAILED: The amendment changing the dates of the contract from July 1, 1978, to June 30, 1980, failed on the following vote: AYES: Brenner, Fletcher, Henderson, Sher NOES: Carey, Clay, Eyerly, Fazzino, Witherspoon MOTION PASSED: The motion that Council authorize the Mayor tocpprove the golf professional contract; with -the corrections made per Counci l - member Henderson's moments, passed on the following vote: AYES: Carey, Clay, Eyerly, Fazxino, Witherspoon NOES: Brenner, Fletcher, Henderson, Sher Mayor Sher commented that his negative vote in no war reflected on the i ntegr# ty of the golf pro. REQUEST OF COVNC?LMEMBER FLETCHER RE AB 2442 Councilmember Fletcher recslted the controversy about the state law saying muni; ipalities could not use radar where the speed was different from prevailing speeds. AB 2442 would return to local control the municipalities' ability to set speed limits and use radar to control traffic speeds on residential streets. The League of California Cities (LCC) sponsored AB 2442 to give municipalities those rights, MOTICii: Councilmember Fletcher moved, seconded by Henderson, that Council authorize the Mayor -to -write to the State Senate in support of AB 2442. Mayor Sher said he thought the letter would vest go to Senator Gregorio and other appropriate senators. Councilmember Witherspoon asked' why AB 2442 ran only until 1982. Councilmember Fletcher said she thought the date of expiration represented a compromise. She said it was called the "speed trap" law, implying that cities wanted to impede traffic. Mayor Sher observed that it had been suggested, then, by Council dis- cussion, that the charge brought about by AB 2442 be made permanents not just to 1982. Robert Booth, City Attorneys said truckers and Triple A told horror stories of cities setting up speed traps, and so the three-year sunset provision had been written into the bill: Councilmember Carey spoke of the torn of 9ino e, which exacted enouy't traffic fines "in the old days" to pay for the city's operation. He said Pinole exemplified the kind.of community the "speed trap" law was aimed at, and for that reason he preferred to have a sunset provision. Vice Mayor Brenner confirmed the earlier exi s ten,;e of two other• "speed trap" zi'ties. She would, however, support the motion. MOTION PASSED: The motion that Council authorize the Mayor to write to Senator Gregorio and other appropriate senators in support of AB 2442, with the additional request thet the law be made permanent, passed on the following vote: AYES: Brenner, Clay, Eyerly, Fazzino3 Fletcher, Henderson, Sher, Witherspoon NOES: Carey Councilmember Clay said he thought a management audit had been discussed by Council in 1976, end the funds were still available and had been incorporated into the 1978-79 budget. He thought it a good idea to conduct the audit and assure that the City goverment was being run in the most efficient manner. He left it to Council -to say what questions should be set out for the audit to answer, perhaps duties and responsi- bilities es prescribed by the Municipal Code- and -the manner in which those duties were exercised and their effectiveness. He would also like to see some comparative data on'how other bodies operated, with specific co mpari s on to the private eeitor. 947 5/22/78 Corrected see page 10 9 Councilmember Cyerly said that $15,000 in the 1977-78 budget had not yet been expended; he aught it should be used for the audit. A similar amount for 1978.79 WA to be used to assess the effectiveness of the City Council. In the first audit he thought it would be logical to look at the City Manager's office because the permanency of the current manager, George Sipel, who was committed for only six more months, ws not known. Councilmember Fazzino suggested that "study" might be a more appropriate tern than "audit." It had been -about eight years since the last study of City management. If Jarvis -Gann tax reform passed he might not support continuation of -such studies, however. He would like the study to include some assessment -of Council/manager relations, perhaps to help develop different ways of interacting. He felt it would be too bad if politics were to enter into the study. He supported the proposed motion. Councilmember Henderson said.he did not think that because the money was in the budget it should be spent; he noted that management audits had taken place for many years. An audit of the entire City operation would not be available for $15,000. He wondered what this study was to include, specifically. it.had'to be clearly defined. Vice Mayor Brenner said that an analysis of Council/manager relations indicated the function -of a -resident psychiatrist, as in large cor- porations. She did not know of the City Manager being "...on the verge of leaving us," and until such a decision was made she was not "...interested in digging into that office as a political matter." She thought the City Manager should be present for any discussion. A cost analysis would be a different matter. She d' a not know of a Waited ai ted management study being done for $15,000. She thought it best for Council to work oat its own relationships with staff. Councilmember Fletcher recalled having met with Mr. Sipel and other management. Personnel about 'cix'months ago;- a presentation had been made to Council about in-house services on interpersonal relationships. She did not think outside service for such exploration was needed. Mayor Sher noted that. eomments showed vagueness and uncertainty about what was being proposed.' If -a -judgment was to be made on how well the City Manager's office functioned would it lead to a personnel matter? if an inquiry was to be made into how City government worked It was broader than whet was indicated. Mr. Sipel had, some time ago, suggested a consultant be used to try try facilitate relations between Council and City staff, and the Councilmembers of that time had been very cool toward the idea. '1Kind ea natural tension. exists between Council's policy -making and the City' Manager's implementation of that policy. In his recent visit to Washington-, D.C., Housing and -Urban Development (HUD), wh►ch was designed to produce help for cities in their f,nanclal management: p obi ems',' cow E d not believe that a city as small as Palo Alto had developed objectified performance standards, and had generated reports on cash flow, and had come se close toprojected expenditures of revenue. He knew from -that, he said, how well Palo Alto had been per- forming with the i nc ent C i iy Manager in charge. He did not know, without more specifics, if he could approve the management audit as it now stood. Councilmember Clay said it would be difficult to produce any audit writhout , e1ng seb3act tmr erit#cis 1,. yet running a' city was a business, and not a political issue'.' ' iness- differed in that. it did not have guaranteed i rncoaae, as did government. Some inquiry into Council/manager relations would give Council' feedback and help it perform efficiently. He did not propose ' exami ni ng minor points exhaustively, such ' as purchase 948 5/22/78 of supplies. An.audit.would examine how Council goes about doing the kind of worn which -it firtds'it has to do. Council could set she limits on what the audit would undertake tcedo, along with making comparisons between the way Palo Alto and other cities did their work. MOTION: Councilmember Clay moved, seconded by Eyerly, that Council authorize the implementation of a -management audit of the City Manager's office, to include but not necessarily be limited to duties and -responsi- bilities as described by the` City Charter, and an assessment. ,of the manner in which those duties are carried out, with -regard toeorgaei- zation structure, thatis, personnel, in -comparison with other cities and with the private sector, and -of other parameters such as solvency, .t:nsistent with this kind of activity, and the cost to be limited to the amount allocated in the 1977-78 budget, or 1978-79 budget. Mayor Sher said that as the motion was worded he thought it meant an assessment of how the -City Manager- was' carrying out his duties. Would that become a personnel matter? Counc1 h e ber Clay sald it was' intended to look at ,what now exists and how well it does what it is supposed to do. Councilmember Eyerly said that the funds had -been budgeted so that Council could,audit any department. Me asked if -Acting City Manager Walker had a recollection of how-ithad been structured in'the past. Mr. Walker said he thought the funds had been used for specific depart- mental audits, one on purchasing and' one or data processing. The audits had been provided at the direction of the City Manage'. Council, ,ber Eyerly said he did not recall it in that way; he thought more information should be obtained from -the City Controller as to how the money had been budgeted-. He recalled this present allocation having been asked for by John Berwald, fo ner Councilmember, to inquire as to how policy set by Council was set in motion. Councilmember° Carey said $15,000 had been allocated in the budget for two years, and that' distinguished these funds from funds for -other types of audits. sucn as the financial audit. 'HO was disquieted by the need to question this occasional management audit. In an audit an outsider would look at the $20-$30 million operation, to determine if the- manageme t structure of the operati on was- as- i t should be and if it needed modifi- cation to engender more efficiency. The decision to make such an audit should not be construed as a criticism of the department to be audited. Council had the obligation to ask for the audit --it was a legitimate undertaking. The current method of management was quite .different from some years back. Council had no- effective way of measuring the parlor - mince of Counci 1 appoi rated offi cars , though the system sewed to operate well. He did not know if it was best to use in-house capability or outsiders. He weu l d support the motion before Council; if the budolt amendment was adopted by Council them would be funds for another audit in the coming fiscal year --audits could help take city government more effective. Mayor sheer asked if the assumption was that if the $15,0; presently were to be spent an additional $15, would be put back into the met. Caunc1Mbar Carey replied that budget hearings had to do only -with the. ff sca l year ahead; at present there was a tentative recom endsti sn that $15,000 be allocated for a management audit for the year ahead. The motion before Council, he thought, had to dowith funds for the current fiscal year. 949 5/2418 Corrected see page 1019 1 Councilmember Clay said that he understood that if the management audit were rot initiated in the current year the funds weu1d be moved forward to Fiscal Year 1978-79. Mayor Sher said that he thought that the Finance and Public Works Committee recommendation that Council would be receiving was made on the assumption that if the money currently budgeted were not spent it would be returned to the sameallocation 'or the following year. Cour+cilraeraber Fazzino said r,;; fipt::d to analyze the City Manager function only, and not to assess '.. w -the present incumbent is doing his job." He wanted to know the City i4anagees'speclfic duties, how effective they were, that is, in terms of organizational leadership, and also the City Manager's relationship to the City Council. Three or four years ago there had been an executive assistant ir, the City Manager's office, and for a time the Assistant City Manager had been partial head of the Corrected Personnel Department. He said he recognized that there are two organi- see page zational development people to the City Manager's office --he said he 1019 wont Bred if that cos' the most effective way of operating a city manager's office. He said he thought this was an appropriate time to go forward with the management audit, though he recognized that it was "...somewhat intangible, but that's the nature of the City Manager's position." Counci 1r ber Henderson expressed .surprise that there was demurral on the part of some Councilors to' undertake the audit; the audit had been set up by the City Manager's office in 1973 for the purpose of an annual inquiry as to hoer the City Manager's instructions were .arried out. Councilmember Henderson asked how that could be done without auditing each department. He said he supposed all the department heads could be asked how they carried out the City Manager's instructions. Very little could be learned for $15,000. The idea had no merit at, all. Vice Mayor Brenner asked the method to be used in selecting a consultant. Councilmember Clay said he would recommend having that selection made by the full Council. Vice mayor Brenner asked if the Council would then describe exactly what the City Manager's'job wai. Councilor Clay said he th..ught that the consultant would be instructed to lookat those tuncti ens along the -lines Councilmember Fazzi no had described. The Policy and Procedures Committee could adequately define the scope of services and conduct interviews. Councilmember Fazzi no said are would support holding a brainstorming session at the Pol i cy a i Pr ocedures Committee level, perhaps meeting with one or two consultants and see 1f it was possible to proceed, and at that point return to the Council with recommendations Vice Mayor Brenner suggested that perhaps the sa cter should now be referred to the Pol i cy and Procedures C i ttee, to return to Council more clearly - defined. Cotencilmember Carey stressed. that the $15,000 was Council's ray, allocated to perform an audit of City functions; there was some reaction to.auditiin9.the City,Menager's office that seemed political. He thought it would be .best . to . refer the matter to Comer i ttee , with the hope there could he consensus. MOTION TO REFER: Councilmember Carey moved, seconded by Fanzi no, to refer the matter of a Management'audit of the City Manager's function, to the Pol t cy and Procedures Committee. 950 5/22/78 Counci lmembsr. Witherspoon said .that .thematter would have .to be con- sidered in one of the next two-mtetiegs to be held during .the current fiscal year. Vice Mayor Brenner said she thought the Policy and Procedures Committee schedule was not.particularly crowded. Mayor Sher .said that the mi xed' reaction among Counci lmembers to the proposed City Manager's' audit. demonstrated that same Councilors thought the City Manager's* office ".. is doing a bang-up job, and that the functions, as spelled out in the charter...and in the Code are being well carried out." He mentioned the handling of the strike, and the reduction of $1 million -in the budget, of some years back, as cases in point. The office had dose so- well- that Council had granted the City Manager.six months' leave of absence -at -his request, without pay, because Council wanted him tb continue to operate as'City Manager in Palo Alto.- Therefore soa : Counci l rs were puzzled at the impetus behind the push for an audit of that office. Mayor Sher sai d - he would vote against . t! eoti on- to refer for he did not think a management audit was needed, and he did not want to -spend the $15,0 just because the money had been budgeted. M OT IOM . TO REFER PASSER: The motion to refer the matter of the proposed management audit to the Policy and Procedures -Committee passed on the following vote: AYES:. Brenner, Carey, Clay, Eyerly, FAzzino, Witherspoon NOES: Fletcher, Henderson, Sher OPAL - CQ MhICATIONS None MEETING OF MAY 29, 1978 CANCELLED Mayor Sher announced that the meeting for May 29, 1978, would be cancelled. ADJOURNMENT MOTIO : Councilmember Carey moved, seconded by Fazzlno, that Council adjourn. The motion passed n a unanimous vote. Council - adjourned at 12:45 a.m. ATTEST: APPLE: City Clerk( `�" yor 951 5/22/78,,