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HomeMy WebLinkAbout1977-10-03 City Council Summary MinutesCITY COUNCIL Minutes Regular Meeting October 3, 1977 CITY o� PALO Alt© ITS PACE Discussion of Ti.ae to Schedule Executive Session 1 9 5 Oral Communications 1 9 5 Consent Calendar -- Action Items 1 9 5 2425 Faebarcadero Way--- Reclassification From L -M -D To P -C (Planned Community) Ratification of PACCC Appointments Shared Cataloging Cooperative Contract+ for Solid Waste —Joint Powels Agreement Coif Course Improvement ---Method of Financing and Lase to Non -Profit Corporation Retirement of Jaws O. Glenville Retirement of Dorothy E. Uyeno Resolutions of Appreciation: Rental Sousing Mediation Task Force Public Rearing; Reprogramming 1977-78 City Development Funds Adoa wed Waste Treatment Facility --Sits and Design Approval Adjournment to Executive Session Finance and Public Yorks Committee-LNIeting Rescheduled Consideration of * plat Rate for the Electric Utility Draft Surface off met Plan for Santa Clara County —Review and Comment Request of ComacileembersTessin* sad Mesderscra to Amend the cba& f al Aas*eet Devices Ordinance Adjournment to 3:00 p.a.s October.. 4, 1977 1 9 5 1 9 5 1 9 5 1 9 6 1 9 6 1 9 6 1 9 7 1 9 7 1 9 8 2 0 2 2 0 S 2 0 9 2 0 9 2 1 6 2 1 9 221 194 10/3/77 Regular Meeting October 3, 1977 The City Council of the City of Palo Alto eat on this date at 7:30 p.m. in a regular meeting, with Mayor Sher presiding. PRESENT: Brenner, Carey, Clay (arrived 7:55 p.n.), Eyeerly, Pazaino, Pletcher, Henderson, Sher, Witherspoon DISCUSSION OF TIME TO SCHEDULE FIFE SESSION Mayor Sher suggested Council schedule a somewhat lengthy Executive Session regarding a personnel matter, for the following eweaiag. A discussion ensued, and the final decision for a time and date cons left open until the last part of the meeting.i ORAL COMMUNICATIONS None CONSENT CA MAR Counalienber Pazzini, piked that Items Z of tbe Consent Csleadar, concerning an agreement for professional services fox the Water Quality Control Plant, be removed. Councilne ber Witherspoon asked t` at Item 5, regarding tax anticipation notes for fiscal year 1977-78, be removed. The following itens remained on the Consent Calendar: Referral items NOUS Action Its ORDINANCE 3020 entitled "ORDINANCE OF THE COUNCIL pH!' THE CITY OF PALO ALTO AMENDING SECTION 18.04.040 OF THE PALO ALTO MUNICIPAL CODE RECLASSIFYING CERTAIN PPROPERTI' C 1 E*LT KNOW AS 2425 RICSARCADRIO WAY PROM L -M -i3 TO P -C (PLANNED C TY) . Drina reading 9/6177) RATIFICATION OF PACCC Ratification of Joan Haller, Ann Lockett, and Anne Bailey to fill vacancies on the Palo Alto Community Child Cara board of directors. INC COOPERATIVE (CNR:46$:7) Staff favors Itilatographic Auto atioa. of..Large Library Operations using a Tim -shares System (BALLOTS) though its cost is somewhat highs than Ohio Coles Library Center (0 .C). More potential cost 9 5 10/3/77 1 savings are inherent in BALLOTS, and as conditions change BALLOTS cpn expand or contract without incurring additional costs. Staff recommends that Council authorize the Mayor to sign a contract with BALLOTS not to e:xeed $13,779.90 for the remainder of the fiscal year. CONTRACTS FOR SOLID WASTE --Joint Powers Agreement (CMF:476:7) Two agreements regard study efforts to find interim landfill sites. Palo Alto, as administrator of the Joint Powers Agency, hes the respon- sibility to concur in the selection of the proposed two consultants. Staff recommends approval of the agreements. AGREEMENT ---PROFESSIONAL SERVICES - EMCON ASSOCIATES (Geotectraical and Hydrological Analyses Consultant .for Sanitary Landfill Study) AGREEMENT —PROFESSIONAL SERVICES RUTH, GOING AND CURTIS, INC. (Environmental Impact Analysis Consultant for Sanitery Landfill Study) GOLF COURSE IMPROVEMENT ---METHOD OF FINANCING • Staff recommends Council adopt the following resolution expressing approval for the construction of Improvements to the Palo Alto Municipal Golf Course to be 'financed by{ issuance of tax-exempt obligations of the City of Palo Alto Golf Course Corporation: RESOMION NO. 5456 entitled "A RESOLUTION EXPRESSING APPROVAL OF A PROPOSAL FOR THE CONSTRUCTION OF IMPROVE - TS TO in PALO ALTO MUNICIPAL GOLF COURSE TO BE FINANCED BY ISSUANCE OF TAX EYSMPT OBLIGATIONS OF THE CITY OF PALO ALTO GOLF COURSE CORPORATION" Staff recommends Council approve for first reading the following ordinance of the City of Palo Alto approving, and authorizing execution of the lease of the golf course facility with the City of Palo Alto Golf Course Corporation:. AN ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND AUTHORIZING EXECUTION OF LEASE OF GOLF COURSE FACILITY WITH THE CITY OF _PALO ALTO GOLF COURSE CORPORATION NOTION: Councilnember Fazzino moved, seconded by Henderson, that Council approve the ordinance and resolution , make the ratification, and authorize the contract and agreements on the Consent Calendar. The aotioaa passed on a unanimous nimous vote, Counalmember Clay absent. RETIREMENT OF JAMES O. GLANVILLE (O(R:45?:7) Naphtali. Knox, Director of Planning and Community Environment, said he had had a very valuable five years' association with Mx. Glanville, since he himself had costa to work for the City of Pao Alto. Mr. Glanville had worked with the City for nearly 30 years, and for the present be and his wife planned to take a few months to decide how their retirement years would be spent. Anne Steinberg, Chairman of the ?1a nning Coam.i.eeioa, added Ts"t Mr. Glanville had worked closely with the Planning Commission iu his work As Zoning Administrator, And his work had always been helpful and 1 9 6 10/3/77 accurate. She wished him and his wife: many good years of retirement. MOTION: Councilmember Henderson moved, seconded by Fazzino, the following resolution; RESOLUTION 5457 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EVRESSING APPRECIATION TO JAMES 0. GLANVILLE UPON HIS RETIREMENT." MOTION PASSED: The motion passed on a unanimous vote, Councilmember Clay absent. RETIREMENT OF DOROTHY L UYE:`i0 (CNR:45S:7) Charles Walker, Assistant City Manager, said that Ms. Uyeno had worked with the City of Palo Alto for 17 years. She planned to use her early retirement years for traveling and pursuing her varied personal interests. MOTION: Councilmember Fazzino moved, seconded by Witherspoon, that Council approve the following resolution: RESOLUTION 5458 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING -APPRECIATION TO -DOROTHY H. UYEN'O--UPON HER RETIREMENT." Councilmember Clay arrived 7:55 p.m. MOTION PASSED: The motion passers on a unanimous vote. RESOLUTIONS OF APPRECIATION: CMR:44a:7) Mayor Sher. introduced Douglas Winslow of the Human Relations Commission who handed resolutions of appreciation to retiring, members of the Rental HOuaing Mediation Task Force. MOTION: Councilmember Fazzino moved, seconded by Henderson, that Council approve the following resolutions for members who had served on the task force: ,RESOLUTION 5459 entitled "RESOLUTION OF TUZ COMM OF T E C I T r or PALO ALTO COPSMENDING LAWRENCE W. SMITH OF THE RENTAL HOUSING MEDIATION TASK FORCE FOR~ HIS CONSCIENTIOUS AND OUTSTANDING PUBLIC SERVICE." RESOLUTION 5460 entitled "RESOLUTION OF THE COUNCIL OF THE cm OF PALO ALTO COMMENDING CHOSEN T. CMENC OF THE RENTAL HOUSING MEDIATIO TASK FOKC.'E FOR HIS C0 SCIENTIOUS AND OUTSTANDING. PUBLIC SERVICE." RESOLUTION 5461 entitled "RESOLUTION OF THE C *JNC1L OF .T CITY OF PALO ousa..catammo ROBERT K. tdJLGU4 OF THE RENTAL HOUSING MEDIATION TASK FORCE FOR HIS CONSCIENTIOUS AND OUTSTANDING PUBLIC SERVICE." 197 10/3177 7 RESOLUTION 5462 entitled "RESOLUTION OF THE COUNCIL Or THE CITY OF PALO ALTO C0MMLNDING LINDA BRICKMAN OF THE RENTAL HOUSING MEDIATION TASK FORCE FOR HER CONSCIENTIOUS AND OUTSTANDING PUBLIC SERVICE." RESOLUTION 5463 entitled "RESOLUTION OF THE ' COUNCIL OF THE CITY OF PALO ALTO COMMENDING ELLEN COWLEY OF THE RENTAL HOUSING MEDIATION TASK FORCE FOR HER CONSCIENTIOUS AND OUTSTANDING PUBLIC SERVICE." RESOLUTION 5464 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO COMM2NDING CAULK BAIRD OF THE RENTAL HOUSING MEDIATION TASK FORE FOR HER CONSCIENTIOUS A D' OU STANDING PUBLIC SERVICE." The motion passe{ on a unanimous vote. 1 PUBLIC HEARING: REPROGRAMING 1977-73 tOMUATT DEVEM (CMR:471:7) MOTION: Scott Carey, Chairman of the Finance and Public Works Committee, said that the Committee unanimously recommended that Council approve the allocation of remaining Community Development Funds to be made as follow: (1) lousing land bank for expansion of Lytton Gardens $ 15,000 (2) Appraisal and relocation costs for Lytton Gardens land banking 25,800 (3) Senior Center renovation 25.000 (4) Removal of architectural barriers for Community_ Association for Retarded, Inc. (5) Ventura Child Care Center 31,20} 28 000 $225,000 Farther, that Council make a relocation of tenants on Webster Block ($4,500) and a contingency ($11,500); finding that the proposed uses of 1977-78 reprogrammed CD funds will not have a significant environ- mental impact. He said that item (5) for Ventura Child Care Center would be allocated on the condition that the Ventura Child Care Center staff work through Palo Alto Child Care Center, and that the contract provide for approval by PACCC, as to budget and standards, except for those standards regarding fee schedule. Also, the allocation was dependent on Council's finding that the program funds would nut rest in uses that would have a'significsnt environmental impact. Further, staff was to submit to Housing and Urban Development the appropriate amendment forms, including committee -recommended projects, and staff was to prepare the appropriate resolution and budget amendment, to be submitted to Couacil before the public hearing. Chairman Carey observed that the Finance and Public Works recommendation varied somewhat from the staff recommendation which had not included the Ventura Child Care center. The funds had become available due to a reduction in other staff reco datirnas- for funding --such as architectural barriers at C.A.R., which had freed $6,000; Lytton Gardena allocation by $16,000, and the like. The reductions had been grade for they appeared not to have substantial effect on specific programs and improvements, azd they could be re -fumed should specific need arise. • 198 10/3/77 .Councilmember Eyerly asked asked what the maximum figure was for funds ,to be left in a contingency fund. 'banny Fred of the Planning and Community Environment Department advised Council that staff had reviewed with HUD the Finance and Public Works Committee recommendations. HUD showed concern over the Ventura child care item for they had not favored public service items being included in the Community Development Program. Public Se;vice.items, HUD noted, must be associated with a physical development program, which, in the case of the Ventural Child Care program, would be a housing development program in a neighborhood. At the present time no such program existed, and so, under those guidelines, Ventura Child Care would not be eligible. Staff felt that a $11,500 contingency fund was appropriate, and $4,500 was maintained for the Webster Block relocation. HUD guidelines maintained that up to 10 percent of the total allocation, in Palo Alto's case, $595,000, could go into contingency which iould be programed for current redevelopment programs, over the period of ithe fiscal year. Mayor Sher declared the public hearing open. Karen Hathaway, 290 Ventura Avenue, said she was a single parent with a ten -yeas old son who, because she was unable to have him admitted to a child care program, stayed at home after school by himself until she returned from work. The proposed Ventura Child Care Center would be a great help to her. Elizabeth Rappa, 468 W. Charleston, said s'e.was a single parent with two daughters, the oldest_nine years old. Ile proposed.Center would be a definite help to he'. Denny Petros{an, 443 Ventura, thanked the Finance and Public Works Committee for recommending the allocation for the Ventura Child Care center.,She thought the City of Palo Alto could meet HUD guidelines by - moving up in time some projects scheduled for the Ventura Neighborhood within the Capital Improvement Program (CIP). Street improvements for the ha.ndfcapped as necessary, proposed noise barrier construction, and Alma Street beautification planned now for 1979) , could perhaps coalesce at the present time, rather than later. Crosswalk demarcations needed to be emphasized through painting, along with "Caution ---school." signs. Other Ventura School parents had been unable to appear, she said,, because of "Back to school") nights conflicting with the Council meeting. /avid Jeong, 4056 Park Boulevard, president of the Ventura Neighborhood Association, stated that while the HUD guidelines might not include child care, such a fertility "...surely fulfills the intent of the program" (of Community Block Grant Funds for low-income neighborhoods) . He felt that funde until July would help thew, other funding might well be found: after the start-up funds had been put to use. He asked for help with sud a great need. i yor Sher declared the public hearing closed. Councilmember Witherspoon asked if the Ventura Association was eligible to re4,eive funds. Did they have taut --exempt status? Mt. 'red said..that the Ventura Neighborhood Association old gain their eligibility through FACCC, who would go through iUD. Two classrooms were available at the school, so the money could be reserved for operating and equipment costs; the requested funds would see the Association through July. Council/camber Carey confirwse•i that NUD guidelines could only be Wei -- through July of 1978; other coc:+aaunity development and local physical development would be needed after that or further funding could not be granted. 1 9 9 1013177 Mr. Fred said that HUD had said that the concentrated re -development plan was not only on paper but also had to be implemented in the 1977-78 fiscal year. HUD would monitor the program; neighborhood development would be one condition, and a concentrated redevelopment plan would be another condition. The first condition, neighborhood development, was the only condition being met at the present. HUD said that in a concentrated code enforcement area or re -habilitation area, more.than just a re-hab program such as streets, curbs and gutters, and the like, was required. Councilmember Carey quoted from the last -paragraph of.page 1 of the staff letter: "At the present time, the Housing Improvement program is operating in the Ventura (Pepper -West Meadow) neighborhood, thus meeting HUD's criteria outlined in number 1 above." He asked if that were now not the case. Mr. Fred said that HUD guidelines required that there be a comprehensive plan for physical changes in the area iniaddition to the re-hab program, and that the physical changes had to be but into place before July 1, 1978; if that was not done HUD would take back the money. Mayor Sher affirmed that Mr. Fred's information was new, and had been learned after the proposal in the staff letter had been written. Councilmember Carey said that the requirement that the City commit funds for Capital Improvements was "...a whole different ballgame.°'He faulted staff for not having consulted HUD before writing the report, for such information would have been helpful befqe the Committee hearing. N'aphtali Knox, Director of Planning and Community Environment, said that MUD was somewhat al fault as well: if the City sent in the plan shown in the middle column in the chart HUD would simply accept the first five items, the first items, Webster relocation, being zero, then they would declare the Ventura Child Care item ineligible and the City would have $28,000 to re --program. Then the City would be back to a series of advertisements and re -programming and public hearings to re -program the money —or, perhaps, not spend it at all. If the City went ahead with the program and met their criteria the City would have created a crisis for itself. They would have to cone up with a comprehensive program in two weeks which included some dollar amount of improvements, and also have some certainty that they could get started within the current fiscal year, with HUD monitoring and withdrawing the funds if the City did not actually start the programs. The child care program did not fit the HUD financing requirements, though it was a worthwhile child care program. That was the reason staff had recommended, in the third column, no mosey for the Ventura Child Care programs. SUBSTITUTE MOTION: Councilmember Carey moved, seconded by Eyerly, that Council adopt the staff recommendations as follows: P#tOJECT 1) Relocation -- Webster Mock 2) Housing land bank -- Lytton Gardens 3) Relocation -- Lytton Gardens 4) senior Center (continued) PRESENT STS RECOMMENDATION (9/29/77) $ 4,500 15,000 31,800 25,000 2 0 0 10/3/77 saa • PROJECT' 5) Remove Architectural Barriers---C.A.R 6) Ventura Child Care 7) Contingency TOTAL PRESENT STAFF RECOMMENTATION (9/29/77) $ 37,200 11,500 $125,000 Councilme ber Henderson expressed regret that the child care center could not be achieved with Community Development funds. He asked if there were other funds that could be used. Charles Walker, Assistant City Manager, said treat revenue sharing funds .for the current fiscal year had ,all been allocated-- he could not think of any general revenue state or federal funds other than the Comprehensive Education and Training Act (CETA) program which primarily was staff assistance. Councilmember Henderson said he thought the next opportunity would be for the following z S scat year of 1378 -79« ---perhaps it would he well to try to get CETA funds to carry the child care program through to the next budget program. Vice Mayor Brenner asked if there would be a comprehensive physical plan for neighborhood improvements, and if so how much money would it take to justify inclusion of the Ventura child care center. Mrs Fred said there was no dollar amount for capital improvements, and that that would be up to Council discretion, and HUD could accept or reject. Vice Mayor Brenner said she thought it was the general feeling that the. Ventura Association proposed child care center was a prime candidate for Community Development Block Grant funds. If it were to qualify for CDBG fins at a later date through a package including other neighborhood improvements, could the contingency fund be applied to it as well? She explained that she was trying to think of what the constituents of such a package might be ---she gathered that such a package could not be assembled - quickly. She gathered that local funds would have to be used in order to justify the child care program. Mr. Fred said it would have to be a catch of community development and local funds. Mr. Knox replied that school demarcations and noise barriers and the like were items that should be included but some of them were simply ongoing maintenance item and not capital improvement items. Re -striping was maintenance, and the structural forma of a noise barrier was not likely to be agreed upon in two weeka. The City had no pro j ec k in hand at the present time that would qualify the Ventura Child Care program. Csrrsc-Councilmmember Fazzino observed that answers C.ouncilmemiaers wanted were tad; not being given. He thought Council had .moved beyond the Community see Development: process in terms of the specific proposal. He approved the pg, child care proposal and he thought it was beat included along with the 272 general iaaue iii` child care. 2 0 1 10/3/77 Councilmember Eyerly said that child care was ma available to the Ventura area --about eighteen children were now using it. With PACCC's program children who needed the program could be bussed to the Center, end for the younger children there were a few home -type centers already in the area. Ile said PACCC was already budgeted for oer $200,000 for the City which Ventura people could apply for on the voucher system. He did not want staff to spend time trying to come up With an extra program. The time to talk about it was during budget sessions in the coming year. SUBSTITUTE MOTION PASSED: The substitute motion, that Council adopt the staff recommendations presented to Council on October 3, passed unanimously. MOTION TO REFER: Counciimember Fazzino moved, seconded by Brenner, that the staff report to the Policy and Procedures Committee within two months, to determine possible sources of funding for the Ventura Child Care program for either this year or fiscal year 1978-79. Counceimeleher Fazzino explained that he wanted to send the matter to the Policy and Procedures Committee to have them look at the question of need. If the need were established the matter would then go to the Finance and Public Works Committee. Council ber Henderson said he thought that sending the matter to the Policy and Procedures Committee merely involved an unnecessary extra step, for part of the budget hearing involved the question of need, and so it rightfully belonged to -the Finance and Public Works Committee. Counciiiember Fazzino said he would agree: *to having-ihe clatter go.to the Finance and Public Works Committee, and that such wording go into his motion to refer. Mayor Sher agreed with Councilmeuber Eyerly that Ventura. Child Care concerns should go through PACCC, who should.determine need and priorities, then cos:: to Council with recommendations. MOTION TO REFER PASSED: The Motion that the matter of the Ventura Child Care program go to the Finance and Public Works Committee to determine possible sources of funding for this year or fiscal year 1978-79 passed on the fQ11oi'ing vote: AYES: Brenner, Clay, Henderson, Fazzino, Fletcher NOES: Carey, Eyerly, Sher, Witherspoon SING COMMISSION . FAILED TO RECOMMEND kND Anne Steinberg, Chairwoman for the Planning Commission, reported that the Commission had failed to agree on a recommendation for the City Council. When the Environmental Impact Report had been under consideration in 1976 the: Commission had not been involved. Vow, she said, the Commission had difficulty in finding that two tanks, of 90 -foot diameter each, and 40 -foot height, "...are not unsightly or obnoxious in character," when placed in the Baylands, as area the City was trying to protect. The Commission had felt that site and design alternatives had not been sufficiently explored with an eye to reducing the unsightliness of the structures. Since the project had already gone out to bid, the matter seed beyond the point of returns and so the Commission had failed to agree on a rec dation. 2 0 2 10/3/77 c-4 • 1 I • Councilmember Fazzino commented that time seemed an important element in relation to this particular matter —he asked how much time there actually vas before the City was faced with logs of federal and state funds. Mr. Knox answered that there was no firm cutoff date so far as funding, but that the City had until October 31 of that year to award bids. The specifics were usually a matter of uncertainty with federal funds, he said, and there was the danger that if the present plans did not go ahead the City would wind up with less or no federal money, with costs escalating, in the meantime, to perhape 100 to 150 percent increase on a $10 million plant. Councilmember Fazzino asked Mr. Remme1 of Mater--Ca►s-Sewer what other site he had considered for the towers. Mr. Remmel replied that if the site lout easterly of the plant, toward the dump area, were used, the coat of plpeing the towers would be about $250,000 more, with higher annual operating costs of $4000. T'volarge conduits at the suggested site would have to be -extended to and from the suggested site. Councilmember Bendersan referred to the air photo and located compass points, Mt. Knox offered a diagram of the area giving compass points. Fmbarcadero Road was the north side of the plant, anti the road to the refuse site was east, of the plant. _It was ascertained that the proposed site for the towers was on the east side of the plant. Mr. Reel said that the sedimentation tanks discharge to the east and so that was where it was proposed to place the filtering towers. Should the towers be placed on the -lest side, the discharge would have to be pumped there. Vice Mayor Brenner asked about the rectangular addition proposed on the southerly side. She continued, saying it was her understanding tbare would ultimately he four towers capable of filtering a total of 55 million gallons per day, Mr. Remuel said that capacity would be weeded by 1987. Considerable additional development within the area would make that capacity necessary. One million gallons capacity was needed for industrial. Vice Mayor Brenner asked what course the proposal for the towers would take if Council approved the recommendation. Mt. Remeree1 said the project t would not go to the ARIL Mayor Sher explained that the project would not go to the ARE, because the Ping Commission had made no recommhndation it came directly to Council. Even if the matter went to the ARB it was questionable if that body could make recommendations that vn►uld not affect the bidding process. Vice Mayor Brenner asked if the matter had been to the Airport Land Use cowmaissloi ,, for it csarremtly fell within that category. Mt. Renal said that the proposed site was not within the area that the Lend Use Commission reviewed. Vice Mayor Brenner asked about the time schedule. f Reawel replied that the time schedule was set by the Regional Water Quality Control Board. 203 10/3/77 3 Vice Mayor Brenner asked if costs for plumbing, energy and materials were available for the optional location. Mr. Remmel said that the capital costs for relocation were about $250,000, with a cost of about $4,000 for pumping. He pointed out that the space between the two clarifiers which would handle about 55 million gallons a day was quite cramped --about 90 feet only to the back property line from the proposed clarifiers, that would take from 130 to 150 feet in depth. Vice Mayor Brenner asked what type of lighting was planned for the towers, and if it could be subdued. Mr. Remmel said the lighting would be subdued ---perhaps reflective lighting against the structure. Councilmember Clay asked if the effluent had to originate in an easterly direction. Mr. Remmel said that the flow of the long, rectangular tanks vas in an easterly direction. The flow had to go east. Councilmember Clay asked if the $250,000 cost was entirely for setting Corrected piping to accommodate if the towers were built on the southerly side. See pg. 273 Councilmember Carey asked what the cost would be to locate on the west side. Mr. Revel replied the cost might.be about double. Counciimember Carey asked who would pay -the cost. Mr: Remmel said he thought the state would not pay for moving the amenities around —the area users would probably have to pay for that. Councilmember Carey said that since the state had already approved the plan, and staff based the stated refusal to pay on a change in plans, be thought that uncooperative. He ascertained that federal and state funds would pay about 85 percent of the costs at the present time. Mr. Reel said Los Altos Hills paid about 3.66 percent, Stanford about 10 percent, and East Palo Alto paid about 11 percent. CouncilmeMber Carey estimated that Palo Alto would bear about 50 percent of the $250,000. He asked if Mr. Remmel foresaw any problem in having See the other subscribers pay the other 50 percent. 273 Mr. Remmel said he thought there might be some problems. Councilmember Carey asked about the consequences to other users if they did not pay their share. Mr. Remmel said that letting out the project for bids and the like was up to the City of Palo Alto, so he thought it would be possible for the City to sake the change. If a disagreement about aesthetics did occur Palo Alto would have to meet with the other users and talk it out. Counciimember Carey asked if Mr. Remmel had knowledge of when state aid federal commitments for funding were no longer commitments. Mr. Rommel said he did not have an answer for that. George Sipel, City Manager, interjected that the best way to get the answer to that-tritical question was ter ik the Water Quality Control Board if they would release Palo Alto from the time commitment. Palo Alto, PS, 204 10/3/77 Alto could not answer that question because it was not Palo Alto's decision. WQCB set the time schedule --the bids had to be let hy October 30 --Palo Alto would have to get an extension of the time schedule and then re -design the project and put it out for bid again. Councilmember Carey asked what would happen if WQCB would not grant an extension in time, Mr. Remmel said Palo Alto would then be subject to fine; building permit cessation within the service area, or other alternatives which the Regional board had imposed on cities in the past. He added that con- struction was scheduled to be completed and the plant in operation by December, 1979, giving about 22 months of construction time, which meant that time was rapidly running out. Mayor Sher asked how the requirements imposed on Palo Alto compared with requirements imposed on other sewage treatment plants around the bar -- was Palo Alto behind or ahead in fulfillment. Mr. Resmse1 said Palo Alto's schedule was behind the other two plants in the South Bay --San Jose and Sunnyvale had almost completed their con- struction, and Palo Alto lagged about one and one-half or two years. However, Palo Alto was "way ahead of San Franciaco." Mayor Sher asked if Palo Al.to's partners in the project paid only for capital costs and annual service charges -were any payments made to Palo Alto for use of the land? Mr. Remmel replied that cost for the land was added into the cost for the initial Tri-City agreement. It was a 25 -acre site, and Pale Alto had been careful to stay within the bounds. Councilmember Eyerly referred to Extension E, the landscaping plan. He expressed the wish that the plans should call for foliage that would grow as high as the proposed towers. ?Mr. Rgaw 1 said that the City was working closely with landscape architect Helen Proctor, who had been very thorough in her planting. Councilm er Eyerly spoke of the desirability of having berms so as not to increase salinity of the soil, and he asked what had been planned for the area toward the ITT property. -Mr. Remmel said that plantings in that portion had already been made and were in place and growing. Councilmesiber Pletcher confirmed that the other users of the plant also paid for operating Costs. Don Overall, 1200 Hamilton, expressed concern at having two large towers constructed so close to the water's edge. He asked that Council ser- iously consider a "better location." He feared that no plantings would conceal a structure 40 Peet h#.gh. He favored paying more tax dollars and having resultant benefits. Elizabeth Boyle, 515 Newell, said she did not want to jeopardize the tertiary treatment but she did want to know if even additional cost to move the towers could not be Undertaken. She also a aid she. Nought the towers seoatld be hazardous to air travel. Richard N. Jacobsen, 761 Southampton DT1.vt, said he was concerffed-both as citizen , property holder over the size of the towers in the proposed setting. He cued on the cu+aulative impact on the Baylands by 205 1013177 C:5 public agencies: the golf course 30 -foot high driving range fence, and the 40- to 50 -foot high mounds of garbage. He knew that in a few months there would be discussion of emplacement of mounds of dredged spoils on the ITT property; public input, he said, "always seems to take place 'under the gun and at the end of the road'." He asked that some advance thinking take place in regard to the dredging spoils, so the City would not be caught without alternatives. Council.me aber Henderson noted that the Planning Commission had been unanimous on one point —the tanks would be unsightly and obnoxious. He said he was representative to the South Bay Dischargers and he was aware that there was an urgency on time for the project under discussion: the South Bay Dischargers schedule vas behind also. Re said that other government agencies hold up projects until their requirements are met, and he thought the City had that right as well. The City needed a minimally aesthetic plan. He felt pushed to approve a poor plan for which no alternatives were available. MOTION: Councilmeiber Henderson moved, seconded by Brenner, that staff be directed to develop alternative plans and figures for the placement of thetwo sedimentation tam. Councilaatember Witherspoon said that Council had inherited the consideration of the towers from the Planning Commission. She felt uncertain about finding any location that would not be obnoxious. She anticipated the time when Bay ands would be a lovely park, aed then how the towers would encroach on several vistas. Councilmember Fazzino asked if Cauncilmetnber Henderson's motion contained any time limit, Counclimember Henderson replied that he thought the alternatives should be developed as soon as possible. Counciiwember:azaino said he shared the concerns expressed that evening. Council needed more solid information to make a decision; information on costs and the cost -sharing arrangements. He hoped staff would return with that information within two or three weeks. COuncilmember Eyerly said he opposed the motion foe he thought the towers would show up no matter where they were located, and so relocating them was a poor use of money He thought it would be well if the motion were defeated, and then he proposed part of the plan related to landscaping could return to the AR.3 to assure "cosmetic" effect of plant ings . Vise Mayor Brenner said she favored the motion and that she also had concern about the placement of the hers. She referred to page 20 of the BIg which she thought depicted Embarcadero Road erroneously and that it should be checked more carefully; the safety zone for the airport indicated to her that the southerly location for the towers would be best for they would be better acheened and .less hazardous for airport traffic. Mt. Knox referred to the zap of the airport compared to the map projected on the screen of the council chamber, saying he understood that the sewage treatment facilities were entirely outside the airport safety sane. That safety zoning had been adopted in October, 1973. If there were discrepancy, at the very most the City would , go through a minor permit process. He cited airport r afety height limits, saying the towers were 1 -below them. As for rs, $250,000 was a raw=fT ure estimate based on today's coats; with inflation and possible loss of funding costs could run well over -$1 million. Corrected See pg, .273 Coencilmember Carey said he would vote for the motion because he did not like staff's logic, which took the form of staff drawing a conclusion to which Council's action had to conform. He dismissed the fear that federal and state funding would be withdrawn in 1980 because of two month's delay in 1977. The October 30 date given by staff as a deadline, it had been disclosed, had nothing to do with federal funding. He hoped staff would re -think the project site and design in an objective manner, and withhold subjective arguments. Since federal and state agencies mandated that local governments assess all adverse environmental effects he could seas no way in which the. City could be faulted for giving more time to tine p1aceaeet of the proposed towers. Council.saember Pazeino clarified that though he sopperted the motion Correc- before them he could well, even with adeitional information, decide in tad; favor of the present cite and design. see PS. . Counci1meaber Clay asked the current sta.us of the bidding process. Mr. F.emmel said that bids had been taken August 31, and the City had the right to retain the bid for 60 days. If the bid were not accepted within that time it was lost, unless it could be re -negotiated with the contractor, who had given extremely low bids. Councilmember Clay pointed out that contractors ce;F}.d re -bid on their previous data, with the addition of possible extra piping. tf I emzne1 said that could be done, alsol the contract could be awarded by "cheese order." ?ire, Jenks, the crnSultant, had made the $250,100 estimate. Councilmeiber Clay asked Mr. Remmel if he thought contractors would ask an undue amount of time to re -submit bids, so that they could not make the October 30 date? John Jenks, consultant, replied that he thought it would be possible to re -design the project, so that the towers would be located on the southerly side, by October 30. Co ucilmember Clay said the motion did not designate the site of the pose/hie relocation of the towers; he would want considerations of both aesthetic design and cost of construction to be incorporated when the matter next case before Council. Mayor Sher said he understood the motion to direct staff to develop alternatives and figures. He suggested it might be possible to get the figures informally, without going through the formal bid process. Councilmember Clay said it was possible to' have two low bidders on a project thee could have Alternative A, which had been suggested by staff; Alternative 8, with towers on the wet aide and Alternative C with towers on the south side. There could be varying bids on those alternatives. Mr. Xemael was asked if, wince the City had opened the bide and had a low bid, it would be possible for the City. to negotiate with another bidder before the award process. Be thought it could not be done. City Attorney Booth agreed, it could not be done. Mayor Sher asked aboat the possibility of talking to the lov bidder about the "change -order." 207 10/3/77 i Mr. Booth replied that that was "...not an appropriate activity either, although it can be done after the contract is let." It was not fair to the other bidders. He said that all the bids on the project had been extremely close, with less than $900,000 difference on a $10 million project on all of them, and they would all be entitled to claim that had they known about the change their bids "would have been $10,000 lower," and that put the entire project in jeopardy. Mayor Sher asked if staff could make its own estimates. Mr. Sipel said that if additional information was needed it would be best to have the consultant estimate the cost of the alternatives then, if Council approved a bid with those changes, the bid could be let and a "change order°` could be executed with the hope that the actual amount would be within the amount estimated by the consultant. Mr. Jenks had indicated that he could have his portion of the estimation in time for the October 30 deadline. Mayor Sher said that there was yet another chance to make a final decision during negotiations with the law bidder on the cost for the additional work. Mr. Sipel said that those negotiations were limited to the one contractor who had been awarded the job, which reduced the number of options. Mayor Sher said he did not want to get into trouble with the Regional Water Quality Control Board nor jeopardize funding, yet the design which used'only a small amount of energy, and -about whichethey had been. __ enthusiastic,presented a glaring problem. Since the project would be theme a good long time it was wise to try to ehcose the best location for the towers, He supported the motion. Councilmembe. Carey asked what happened if the contract were let. Were there any penalty provisions if the contract were dropped altogether? Mr. Booth said the City would only have to pay the contractor for the work, if any, which had been done to date. Some bidders would drop off because of that kind of treatment, and then also the cost would be higher on the re -bid because the City had already had "one free ride." Councilmember Carey said he thought that if the "change order" were submitted before any money, time, or effort had been spent by the contractor, and then the contractor was too high en estimating the changes ordered, the City could cancel the contract. he observed that he was interested to learn that all the bids were close, because he had heard earlier that there was only one low, favorable bid. NOTION PASSED: The motion that staff be directed to develop alternative plans and figures for the placement of the two sedimentation tanks passed on the following vote: AYES: Brenner, Carey, Clay, Fazzino, Fletcher, Henderson, Sher NOES: Eyerly„ Vitherspoon ADJOURNMENT TO EXECUTIVE SESSION Mayor Sher said that Couucil would meet in a short executive session on a litigation matter. MESS Council recessed from 9:55 to 10:20 p.m. 2 0 8 10/3/71 Mayor Sher said that he felt that out of consideration to those in the audience who had.come to hear specific items Council should decide which of the lengthy items remaining on the agenda it would discuss that evening, which would permit those whose items would not be considered to go home. Councilmember Carey said he thought Council could not finish that evening's agenda, and that was complicated by the fact that the following Monday was a holiday. MOTION: Councilmember Carey moved, seconded -by Henderson, that e71- 1) Finance and Public Mors Committee meeting be postponed from October 4 to October 11; 2) Council go as far as possible that evening and adjourn to 8:00 p.m. Tuesday, October 4, to consider the items on the variance for 300 Hamilton and any other unfinished items, except item 16, which would be continued to become t.e first item on the agenda October 17. Mayor Sher confirmed that, saying he had had a -request that the new business matter concerning the El Palo Alto tree (item 16) be continued to October 17. Counci.imember Eyerly ascertained that the October 17'ageuda appeared to be very heavy. He said he preferred to continue items to 0 tober 17 rather than crowd items into a,proposed October 4 meeting. Councilmember Fazzino said he thought Council could meet on Monday, October' 10, Columbus Day evening. • Councilmember Clay said he preferred to continue the item concerning the flat rate for electricity users. He would•vote against the motion. MOTION PASSED: The motion to continue all unfinished items except the one concerning the El Palo Alto Tree, to Tuesday, October 4, passed on the following vote: AYES: Carey, Fazzino, Fletcher, Henderson, Sher NOES: Brenner, Clay, Eyerly, Witherspoon FINANCE AND PUBLIC WORKS COMMITTEE 1:tat!fl : !4*1' , , Ir a Councilmenber Carey announced that the Finance and Public Works Committee meeting of October 4 would be scheduled for October 11, and asked that staff notify people who had been interested in talking on these items, to the extent possible. s 473:7) Edward Mri ek, Light and Power, said that a request lute; been received by Council that the City consider a flat rate for the electric utility when the cost -and -service analysis had been submitted back in Jam, 1977. Council had requested information and staff had prepared a report pointing out some of the advantages and disadvantages, w!th the recommendation that the fiat rate not be adopted. Councilmember Henderson noted that a staff report said that if" Council was going to change the electric utility rate stature either an Savironaental Impact Asaeasnent (ETA) and Negative Declaration, or a full Environments/ Impact Report (EIR) would be required. .Fie asked if that were true for proposed rate changes in the future, as well. if Connell adopted a policy -of applying rate increases at a fiat cast per kilowatt ho ' ) , or wail it -only if a flat rata were adopted that evening/ ' Mr. Mrizek said that any rate change would require an EIA. He did not think a full EIR would be. required. .Councilmember Henderson asked if it were not true that large industry in Palo Alto had the most favorable rate structure in relation to PG&E rates, that is, about 72 percent below what the PG&E rates would be. Mr. Mrizek said that was correct. Councilmember Henderson confirmed that the lowest lifeline residential rate was the least favorable ratio to PG&E coots. He asked what elements made up the cost -of -service calculations. Was allowance made for the - larger base of required equipment demanded by industry, or was that equipment excepted as existing, with the cost divided on a per -unit basis? i Mr. Mrizek said the cost -aid --service repgrt took into account the facilities the electric utility has, and customers are charged a proportionate share, no that the cost of a larger transformer would be applied to the larger customers. For example, at the Colorado substation, the costs of the transformers were paid bythe users of the resultant power. About 65- or 75 -percent usage was applied to commercial -industrial users. The need for the equipment came largely from commercial -industrial. Though residential bore some of the cost, they also benefitted from the lower cost that resulted from a larger transformer., Councilmember Henderson recalled previous discussions about the need to have hack --up transformer equipment to take -care of industrial need should other sources fail, and also during peak -use hours. He telt the City.h.ad incurred high costs for that equipment, and he asked Mr. Mrizek if that were not true. He asked Mr. Mrizek when a recommendation on time---of--day rates could be expected, and whether or not that would not help to flatten` rates. Mr. Mrizek said time -of -day rates were being introduced into the State of California now. The Public Utility Commission (PUC) had directed PG&E and other large utilities to begin introducing time--of-day rates for very large customers, such as 4000 kw or more, Where Ma presently has the metering equipment to do time -of -day rates, Magnetic tape meters are needed that could be played through a translator to work out billing costs. :Mr. Mrizek said. it was hoped that some results would be wing through as to the effectiveness in reducing demand and conserving energy, and in that way some determination of their usefulness to Palo Alto could be made. Large utility users could also use energy management systems, computerized to stabilize demands and that would help the City on their demands. He said he thought residential users might go to flat rate within a couple of years. The Bureau of Reclamation (1LR) was proposing a substantial rate increaso, the bulk of which would be placed on the larger users. That would lead to a flat rate, and possibly, in three years, to an inverieed rate. As increases came in the rate would continue to flatten. Councilmember Eyerly asked if M. Mrizek had any figures on the conservation efforts the City had urged utility customers to make. Mr. Mrizek said the City had begun its conservation efforts with the oil embargo of 1973._ They had approached larger users first, and had observed, . an immediate decrease in kilowatt hours. At the present time the farsaet: usage had not been reached again. Most of the decrease was among industrial/overt with a slight' increase:, per customer, in residential: 210 10/3/77 had been expected but had not yet come; did Mr. Mrizek have any idea what that would do to the cost of electricity in Palo Atto? )1r. Mrizek said the City had received information that the Bureau of Reclamation was propvsi:ig two rate increases, and they were to become effective on May 1, 1978. One increase would raise the City's rates at which they bought electricity, by 187 percent; the other increase would raise rates by 247 percent. The City presently paid 4 mills ($.004): per kwh, The 187 percent increase would raise the cost to $.0O83;'.:the 247 percent increase would raise the cost to $.0117. Those increases, if applied equally, would be from 20 to 97 percent, the larger percentages being placed on the larger customers. Mayor Sher noted that increases were intended to be applied in such a scanner as to flatten the rates. Mr. Mrizek said that as the electric utility requested rate increases from Council the department would continue to flatten rates. The department would like to use cost -of -service as one of the items in their aualyeis, along with conservation and others. Mayor Sher asked if it was intended to apply the rate increase to all except lifeline users. Mk. Mrizek said chit the City would have to know how the increase: was treated by the Bureau, which might be marginal cost pricing, in order to know how to handle their own rate increase. __� ....�. Mayor Sher referred to page 4 of the staff report and asked how it. was known whether or not the 8 dill increase would result in a 67 percent increase to very large industrial customers, 36 percent to the average commercial customer and 20 percent to the average residential customer? Mr. Mrixek said it would be true only if the increase were applied on an equal ce.nts-per-kwh. increase, with only the lifeline users to be exempted. Previous rate increases had not been on an equal cents-per-kwh basis, though it had been on the 1974 Bureau of -Reclamation increase. That had since been overturned. Two rate increases in the last two years covered internal operating expenses which had not been applied in that fashion, but they had been applied by determining the amount of revenue needed to offset additional costs, which were then applied to larger customers. Loaner consumer ratee had been held fixed, in both residential and industrial class. It was possible the larger anticipated increases would be handled in the sass way. Mayor Sher said that Mr. Mrizek's words suggested that it was justified to move tweard the flat rate, but not all at once. Mr. Mrizek said a cost--of-service study h't been made in 1971 or 1972 said also one had been made recently: between tie times they had tried to place the rata increases on the larger co suzerg with an eye to improving the relationship between the classes of customers. Mayor Sher asked if Palo Alto's customers would still be below the costs of PG&E;s customers in neighboring cities if the Bureau increases came through. Mr. Mrizek said they would, Mayor Sher noted that costs to Palo Alto's users would still be 47 to 53 lamer than Pte's_users. Councilmember Paszino spoke of the gradual improvement between classes of customers aver the past 15 years. Re asked if that gradually increasing burden on industrial users vas related to cost of service itself. Mr. Mrisek replied that vie tree in part. 211 10/3/77 Councilmeaber Fazzi�o `said that he -hail concluded then 't .that h -• e -Cite had `fide a conscious decision to place a greater burden on commercial rather than residential. • Mr. Mrizek responded ::hat.in 1972 the cost -of -service analysis had disclosed that the small residential user was paying more than his fair share, and so, in ticking rate increases, the City had tried to correct tha t . Vice Mayor Brenner asked what the increase by the Bureau of Reclamation was based on —larger consumption of power, or internal bookkeeping in the Bureau, or other costa? She had heard that the rate increase was an aattempt,by them to balance their losses from selling water too cheaply. W. Mrizek answered that the Bureau had made no rate increase since the City had been purchasing power from them though costs had gone up. When • hearings on the proposed rate increase begin the electric utility will be looking at the Bureau's cost analysis, with the hope of justifying a lower rate increase from them. Vice Mayor Brenner asked if the increase was related in any way to the City': larger consumption. Mr. Mrizek replied in the negative ---the Bureau had a certain amount of capacity and so would continue to sell until that capacity was reached. That capacity had not yet been reached. Bruce -Ron€row, 1520 Univetsity Avenue, --spoke as a representative -.of -a small, business for which he worked. The business had been classified as a medium user of utilities. He opposed the flat rate structure. His company, Coherent Radiation, invested about $300,000, which turned out to be abeut 5 years of electrical service, to take the incoming power and distribute it throeeghrut the building. They used about 450,000 kwh per month which gave a clear cost advantage. He thought it specious to say the residential user was at a disadvantage. Palo Alto had a similar rate structure to PG&E's larger users, and it was similar to the City of Santa Clara. He challenged the statement that higher rates would encourage and dictate more conservation an the part of large users, He said he paid about 3 percent of the equivalent rental value of his hole in utility billet on a monthly basis. The rate was favorable, and the amount of conservation they were able to effect was difficult to sleasure on the Monthly bill. Coherent paid about 35 percent Qf'-ifs iaomthiy7 ffac'Lai`t`li tentaly in=utilities, which made conservation a primary consideration. Coherent had worked out a water conservation method, and, at the suggestion of an electrical contractor consultant, they had bought monitoring and control devices. While the monetary returns would be slow Coherent did it as a sincere conservation measure, and they were staking other analyses to reduce power. Jack Reynolds, 1501 page fill Road, chairman for the Utility Task Force in cooperation with the Chaster of Comeerce, commended the staff for a good kapott. He thought industry "...was doing a tremendous job of ce ervation.'b His own co zy's efforts led to the fact that their peek demand had not gone up and conservation measures had led to 20 percent reduction in use since 1973. He said he would be glad to share their methods with other industries. Palo Alto industries- paid about 50 percept of the City's utility bill, and the flat rate would burden the ten largest users unfairly. Joe Perez, 3728 Lindero, urged the City to retain the cost -of -services consideration -when determining rate structure. He praised the -City's ten largest utility consumers for the research efforts they had made toward conservation. He held that employees, not business, were the ones who meted energy. The electrical rate, he said, should be aimed at reducing waste. • 212 10/3/77 701,1 • John Miller, 373E Cass Way, said that Barron Park, contrary to expectation, still paid PG&E for utilities, not Palo Alto, in that way "...still subsidizing larger users of electricity...." Not `lat rate, but cost per unit of electricity, should be the consideration in setting rates, he said, though he thought the flat rate might bring -in enough income to make the purchase of the PG&E facilities by Palo Alto in Barron Park. Richard Jacobsen, 761 Southampton Drive, said he agreed with much of what had been said, but recommended against the flat rate structure because he thought it was inequitable and it did not provide incentive . for conservation. Be calculated the cost inequities, and praised industry for its efforts toward conservation, incentive to conserve even further ,would grow with the Bureau's proposed rate increases. He suggested that, as energy grew more scarce, judgements ' could be made as to whether or not the -materials produced by its use wee of benefit to the public. Palo Alto's lower utility rates were a b9nus which was financed, in good part, by its industrial and residential population, and so he recommended against the, flat rate. Councilmember Fazzino asked staff to comment on the Barron Park utility situation. Mr. Sipel, City Manager, replied that Palo Alto had not promised Barron Park to deliver power at a lower cost immediately. There had been a general understanding that purchase of the PG&E utility would take time. Palo Alto bad been working with PG&E and •when the Public Utilities Commmtissinn agreed on tlse price and the purchase was made the benefits of lower cost power would be available to Barron Park. The exact time was not known, but it would be within a year, perhaps sooner. Mr. ?iri.zek said that it was hoped that the purchase could be made before Jude of 1976. -it was dependent on the Public Utilities Commission and how quickly they acted. Councilmember Fazzino Lamented that he supported much that had been said by the public artd staff, "Flat rate" was a term chat did not fit, he thought. The fact was that it cost the City more to deliver power to the residential user than it did.to the commercial user, since commercial bought the services that delivered power to their eatablishaents. Com *erci.al users had done more to reduce consumption of power than had residential, whose usage had increased since 1974. Further, in time the rate would flatten out, for there would be a 67 percent increase to very large users, 20 percent to average residential users, and no increase to users of less thee 300 kilowatts per hour. MOTION: Councilmember Fazzino moved a sense -of -tine -body resolution, seconded by Witherspoon, that Council support the present pricing structure for the electric utility. error Sher said that a the motion sight not be necessary he thought Mayor Sher explained that the motion was not necessary for maintaining the status quo, but he would entertain it nonetheless for it might give rise to some amrend errata as to what to do about the anticipated Bureau rate increase. Coancier Eyerly observed that the cost to the City per loch was determined to be 1.43? Ile asked If the City would be subsidizing some class of users if a flat rate were used. Mr. Mri.zek said - that single- and multiel7TAIlly rates would be vairlov cvwpare6 to industrial/commercial. 213 10/3/77 Councilmember Eyerly referred to HR8444 which had been passed; one requirement was that rates to consumers reflect the cost of providing electrical service to all consumers; another requirement was that utility .companies were required to inspect residences and provide information to consumers, and perhaps call upon them to install conservation features. He said he would hope that could be done with commercial consumers as well. He concluded saying he favored pricing according to cost -of - service --the federal government also favored that. He did not want to "tinker" with the present rate structure until the rate increase from. the Bureau came through. He favored the motion. Couneilmecaber Henderson said that while commercial users had done much to conserve, more could be. done. He specified lighting of offices and plants at night, which -could be eliminated. ,He said Palo Alto favored commercial users more than PG&E does, so if both suppliers used cost -of - service guidelines one of them was off -base, for firms in Palo Alto paid 72 percent less than firms in neighboring areas. He thought imposing a flat rate would be too big an increase at•the present time, though he favored a continuing move in that direction. The Bureau had not said it would charge on a per -kilowatt-hour basis. SUBSTITUTE MOTION: Counciltaember Henderson moved, seconded by Brenner, that all new electric power rate increases made in the future in Palo Alto be made on the basis of an equal cost -per -kilowatt-hour for all non - lifeline consumption. :. . ayor Sher said it was necessary to determine what was meant by "equal." In the• past there had -be -en a greater charge per kwh forcumwercial than residential. He did :sot know the intent of Councilmembex Henderson°s motion. The substitute mctioct might be more suitable as an amendment, which would say Palo Alto was not locked into a rate structure. Counciime!ber Henderson said he did not accept the main notion because it said Council accepted the report. 'as --is' but he thought a direction for the future was needed. Mayor Sher said he thought the win motion spoke to the present rate structure situation: the substitute motion spoke to the future, which want that it was not a substitute motion. He aeked Counciimember Fazaino the specific intent of his motion. Cvuncilmezber Fazzino said the sense of his motion had been to support the staff direction as related in their report of September 15, which meant cost -of -service rates would stay in effect, with the recognition that changes would be made when the increase: came through from the Corrected Bureau of Reclamation, for that increase, when passed en, would not be See pg a apportioned according to the forcer structure, and that there - would be •272 some flattening out of the rate structe.=_rej : which, by his motion, he accepted. Mayor Sher modified that there would be net "solve flattening out," but "some further flattening out." The motion then, did not state a precise formula but it did recognize that staff was to continue to move in the direction outlined in their report. He said he thought the minutes mould reflect that there vas, id the main motion, app;ovai of the staff report and its suggested direction. Councilmember Henderson read from the staff report, saying that from the examples given, Counci.lmembers might infer that some flattening action in future rate structure should be worked for; the main motion said, "leave it -as it is," and he wante-H to clarify if that was .atended. 2 4 10/3/77 • Mayor Sher proposed that Counciltember Henderson amend the main motion, with the ,cords, "...notwithstanding the foregoing, that if and when Corrected there are additional increases for electric power imposed on the City See pg. by -our- supplier the staff should be free to propose rate increases that 273 seem to cove in the direction of flattening out the rate structure, as they have done in the past." in that way the present rate structure would not be locked in. Councilmember Henderson said, he would like to encourage the move toward flattening out the rate structure. He agreed to use the suggested a endment . SUBSTITUTE NOTION WITHDRAWN: Councilmember Henderson, with the agreement of Vice Mayor Brenner, withdrew his substitute motion. AMENDMENT: Councilmember Henderson moved, seconded by Brenner, that notwiti standing'_thd • foregoing; that when additional increases for electric power are imposed on the City by our suppliers, staff is encouraged to propose rate increases that continue to move in the direction of flattening out the rate structure, as it has in the past. Ceuncilmem.ber Fletcher spoke in favor of the amendment, saying industry had worked to reduce energy consumption. She referred to an SRI International report which said that in Germany industry uses 40 percent less power per unit of production —so she concluded much could be learned from countries where energy conservation had been in practise longer. With increased usage Palo Alto would reach the limit of the amount they could obtain from the Bureau -of Recl;4mation and -so the City -would either -have to buy supplemental power or make heavy investment in its own power producing facility. W=ire there not large users in the City, Palo Alto would not have to undertake the large outlay of money, and cost -of - service, she said, should take that anticipated expenditure into account. Charges for refuse collection were already setting the precedent. She favored the move toward flattening the rate, which, considering the investment Palo Alto would have to make, :could be more economical in the long run. Councilmeaber Carey said that the speculative nature of the amendment bothered him, and he would rather deal with the manner of administering increases when they cue along rather than in advance. "The other alternative," he said, "which is to do nothi.hg, is essentially the swain motion...." MOTION 70 TABLE: Couxscilmember Carey, seconded by Eyerly, saved to table the motion., and a endm mot. Mayor Sher explained that the motion to table was not debatable and he called for the vote. SON TO TABLE PASSES : The motion to table the matter of a flat rate for the electric utility passed on the following vote: AYES: Carey, Clay, Eyerly, Faxzino, Sher, Witherspoon MSS: Pletcher, Brenner, Henderson Councilmember Fazaino said three people were in the audience waiting for the item on the ordinance regarding mechanical amusement devices. He suggested that sight be brought forward. Mayor Sher *Mid that the item concerntng...the Surface Runoff ManagtAient Plan required that word be given to the Hoard of . Supervisors by October 17. and he thought that should be done first. 2 1 5 10/3/77 DRAFT SURFACE RUNOFF MANAGEMENT PLAN (G*MR:464:7) Ben Pawloski, Director of Public Works, said.that.•the draft.plann eet before Council had been very difficult to prepare. One of the problems had been that no data could be collected on actual conditions because there had been no rain, yet the program had to go forward in order to meet• Envtrorzmental Protection Act (EPA) deadlines. The resultant plan represented a middle--of-the--road approach. There were three things the committee which drew up the draft could have done: 1) nothinge-an untenable 'solution'; 2) everything-- on the basis of the belief that a pollution problem existed; and 3) a iddie--of-the-road approaach".which • said there were some problems and some things that needed to be done. Along with the fact of no basic data due to lack of rainfall, was a lack of knowledge about rainfall's assimilation capacity. Also, there are no water quality objectives for inland streams so that there IS a lack of data for control measures. Therefore, tie program was structured to have three components that would exist o er -a five --year period, a period of time mandated by EPA The program recommends that base -data be accumulated on what the situation is and to identify what contaminants iu fact are; the second part of the program would be to determine what the impact would be on San Francisco Say, which would be the receiving water, and oleo to continue activities currently underway which are considered to be mitigating, such as streetsweeping, storm drain cleaning, erosion control practises, and the like. The third part of the program would be addressing the political problem of how a surface runoff management plan would be administered. NOTION: : Councilceniber Fazzino moved, seconded by Fyerly, that Council accept the Draft Plan a :d authorize the ?4ayot to so notify the Board of Supervisors. Gouncilnember Fazzino asked about the "silt and debris" figures in the report listed for Palo Alto, and asked if they were current actual expenditures for street-clea.uing and catch -basin cleaning. Tie asked how those costs would change according to the draft plan, and if they would rise in a few years because of the plan. hr. Pawloeki replied that the costs were actual, There would probably be some change in costs; one finding had shown, for example, that in the case of streetsweeping, it vas found to be effective in a period of time up to 10 days, end lost its effectiveness as the time between sweepings lengthened. That indicated that more frequent sweepings might be undertaken. At the present tine an $80,000 FPA study was underway in San Jose to deteraime the effectiveness of different types of equipment, and their frequency of use. The report oe that study, available, perhaps, within a year, would provide .information but some of the mitigation .work that was done. Councilmember Brenner observed that the Draft Plan had been shitted to Council for coa t, such corne t to go to County Board of Supervisors, to the county Planning Policy Commission (PPC) and to Associated Bay Area Government* (ABAG). She said she had attended several meetings on the topic and she had some points of emphasis she waited to submit to the task force. She said that in this aspect of planning it had to do with appropriate geographic units, and she felt that the divisions so ld 'be by watersheds, rather than by county line. She noted that San Pranciaguito Creek had headwaters originating in San Mateo County which drained through Palo A)to. She asked the extent to which resource cooservati.on• districts had been involved in the plan, Those resource conservation districts were a bit ire -dented toward land use plaaning than the flood control district. U.S. GIA should also be involved, the said, for she thought the Resource Conservation District was a service district and she would like to see it discussed as the appropriate unit • 2 1.6 ~ ' (( 1©/3177 `� to help coordinate and evacuate implementation of the plan. Perhaps this district, in partnership with PPC or the Joint Powers Agency (JPA), would be the appropriate group. Emphasis on upstream land use planning seemed a correct approach in that it had community benefits in conjunction with controlling pollution from surface runoff. Perhaps some help from that approach might involve a model ordinance on grading, a cutoff date on hillside construction activities to reduce downstream siltation, and a floodplain zoning for creekbeds, ail factors for planning that it would be wise to consider. She said she had viewed suggestions regarding the Palo Alto flood basin with caution --- she did not think Palo Alto was ready to indulge free, uncontrolled experimentation.experimentatione She said that what was specifically being proposed in respect to the flood basin was not clear --she referred to page 7 of the report, saying that the flood basin was a part of Phase 11 --a sub - activity of Santa Clara Valley Water Didtrict. Mayor Sher asked if she wanted to put her coats in the form of an amendment, making her summarized comments easier to deal with. Vice Mayor Brenner offered that her foregoing remarka could be sum- marized and included in comments, for example, "hat the Resource Conservation District, being the service district, might be considered as the appropriate governmental unit in conjunction with PPC or JFA, to coordinate and evaluate the implementation of the plan; that there be ;more emphasis on upstream land use planning; that emphasis be placed on a model grading ordinance and floc*I plain zoning for creek beds; that --Council look --with caution at plans relating to proposals for the Palo Alto flood basin." Councilmember Fazzino said he would incorporate those comments as a part of his motion. Counciln +er Eyerly said he was not prepared to incorporate the four - point comments made by Vice Mayor Brenner into the motion of which he had.been theteeconde!. . AMENDMENT: Vice Mayor Brenner moved, seconded by Fletcher, that 1) Council' :tonsider. the resource: conservation district:.es the appropriate agency to evaluate the implementation plan together with PPC; 2) that there should be more emphasis on upstream land use planning; 3) that there should be consideration of the possibility of a model ordinance on grading, along with consideration of flood plain zoning for creek beds, and 4) that the Board should look with caution on suggestions relating to the Palo Alto Flood basin in mitigating surface rueoff. Councilmember Eyerly asked staff if the items in the amendment had not already been included in page 9 of the report, and also page 15. Mr. Pauloski replied that the recommendation concerning the resource conservation district had been touched on, along with the other items on page 15. Various action plans included Vice Mayor Brennwer's comments. The Surface Runoff Management plan had been based oar what was referred to a "non --structural solutions" which eased concerns about development on the Palo Alto Flood Basin. There was to be in investigation of what beneficial results could be obtained from impounding watez in the flood basin. He gave the example that, sine heavy metals are unauspended solids there vas likelihood Chat they would settle out if the waster were impounded --that would have benefit for receiving eater, with an adverse effect on conditions in the flood basin. Counalmelber Eyerly said he would oppose the amendment, for he lacked enough informstLan to critique it or ask for additional search or study. 217 10/3/77 Councilmember Carey said he thought there were problems preceding that problem of surface runoff --considerations of jurisdictions and the like seemed premature, for the bulk of the report dealt with what happened to the water before it got to the stream. He would oppose the amendment, for he felt emphasis should be on the fact, at this time, that flood plain control plans should be non-structural. Councilmember Clay said he would vote against both the motion and the amendment for he felt it had not been intended that Council discuss the document in depth. If such details as were included in the amendment were to be considered there should rightfully be many more. He thought it more appropriate to pass the motion approving staff's recommendation to send Council comments to the county. Councilmember Henderson said that the amendment included points of emphasis in the draft, He saw no reason to turn down some suggestions just because there was not time to make All possible suggestions. Councilmember Fletcher said she supported the amendment: it merely asked the Board of Supervisors to -consider the suggestions and did not order their inclusion in the final draft. She knew the runoff problem was serious, for at an Environmental, Management program she had attended Diane Feinstein had exhibited two jars: one jar with water collected prior to a rain, and one collected following a rain. The post -rainwater was a dark brown residue with much suspended utter, and it could be seen that all matter ran into the Bay, and created quite a problem. Vice Mayor Brenner agreed with Councilraetriber Clay that_conznents were - desired. Her feeling, from having attended about two jays' :3cetings on the matter, had been that more emphesis was needed on upstream prevention rather than just, waiting to see what came along at the flood basin itself. One of the natters on which those attending the meetings were asked to comment was the kind of structure government would 112,e to implement the concern. Such comments were in no way a commitment. The matter was to go to the Association of Bay Area Governments (ABA Q with subsequent meetings planned for public hearings. Councilmember Clay repeated that if motions were to be made, rather than comments, more: time ehouid be takene He did not oppose Vice Mayor Brenner's comments, as comments. AMENDMEVT PASSER : The amendment that 1) Council consider the resource conservation district as the appropriate agency to evaluate the implementation plan, together with PPC; 2) that there should be more emphasis on upstream Land use planning; 3) that there should be consideration of the possibility of a model ordinance on grading, along with consideration of flood plain zoning for creek beds, and 4) that the Board should lock with caution on suggestions relating to the Palo Alto Flood basin in mitigating surface runoff. passed on the following vote: AYES: Brenner, Fazzino, Fletcher, Henderson, Sher NOES: Carey, Clay, Eyerly, Witherspoon AMENDMENT: Councilmember Carey Moved, seconded by Brenner, that any comments or forwarding of the report by the Council gi11 be with the understanding that +molutlons will be non-structural in nature, AM 'T PASSED: The amendment passed an the following vote: AYES: Brenner, Carey, Clay, Eyerly, Fazzino, Henderson:, Sher ?TOES: Fletcher, Witherspoon 228 1O/X3/71 MAIN MOTION AS AMENDED PASSED: The main motion, that Council accept the Draft Plan for surface runoff management and authorize the Mayor to so notify the County Board of Supervisors, with amendments, passed on a unanimous vote. MOTION: Councilmember Henderson moved, seconded by Fazzino, that the item concerning Mechanical Amusement Devices ordinance, be brought forward. The motion pasaed on a unanimous vote. REQUEST OF COUNCILMEMBERS FAZLINO CAL Councilmember Henderson observed that people in the audience had sat through some four and one-half hours of public meeting awaiting the item of their concern. He introduced the- matter by reading his and Councilmember Fazzino's note to Council of September 28, 1977 as follows: We note a marked inconsistency between the Mechanical Amusement Device Ordinance and other recent legislation designed to control certain amusement and entertainment activities. In regulating card parlors, welimited the number of tables in an establishment to the existing number, or five, whichever is greater. In the legislation passed last flaring designed to control pinball machine arcades, an absolute limit of five machines was established. This means that some existing establishments must reduce the number of machines they have. Two situations have come to our attention. No doubt there are others. Fiesta Lanes had twelve amusement machines at the time the ordinance was passed. The management appealed to Council to no avail, and seven of the machines have been removed. Toni and Country Billiards has eleven machines, and the owner hna written us requesting a variance to the ordinance in order to continue the present operations. We know of no problems created by these two estebliehments. MOTION: Councilmember Henderson :roved, seconded by Fazzino, that Council direct the City Attorney to amend the Mechanical Amusement Device Ordinance to limit the number of machines to the number existing or, the date of the first reading of the ordinance, or five machines, whichever is greater. Councilmember Fazzino said he thought the City should be consistent in. the matter of mechanical amusement devices with the card parlor ordinance. He said he had played pool and pinball at Torn and Country and he had observed no problems. Councilmember Eyer].y said he had opposed the ordinance which had established pinbak s at the existing number, and he opposed this suggested change se well, for larger numbers of machines posed more potential problems. Councilmember Henderson said that staff had foreseen no problem in permitting the earlier number of machines. Councilmember Witherspoon said that she regretted that matters such as mechanical amusement devices came before Council at midnight. She recalled when a large number of people had wanted to :meek on the item et an earlier Council. meeting, Continuing, she stated that the ordinance had been passed to avoid the establishment of arcades, for there had been much public sentiment against them, and asking that other kinds of businsssee be established in areas where they existed. She thought it inappropriate to raise the matter for a return to earlier conditions three months after the ordinance had passed. 219 10/3/77 Mayor Sher asked that debate be postponed until the public had been heard from. Richard F. Parina, 85 LaLoma Drive, Menlo Park, represented Automatic Merchandising Company of San Jose, who vended automatic devices now being discussed. He said the initial ordinance had been supported by his industry, for it limited pinball machines being installed "by unsavory characters who were operating massage parlors." The language of the ordinance, however, had gone beyond that specific intent and he " spoke to that. The ordinance included, in the definition of "mechanical amusement devices" items not used in so-called pinball arcades, such as coin -operated pool tables and shuffleboards. That inclusion adversely affected one aspect of the business He asked that Council consider exempting operators of such machines from the ordinance. The places were a tavern, a bowling alley, and a billiard hall, and they had been financially burdened by the ordinance; ope location served by Mr. Parina stood to lose $3000 a year or more in revenue. John Bussanick, 401 Lytton, underlined the statements of Mr. Farina. He awned a small business in Palo Alto and had had to get rid of some machines after the passage of the ordinance. He thought it would make a substantial loss for his business, and he asked that Council re -write the ordinance and allow hiss to reinstate the machines he had had to give up. Vic Feldman, 1281 Crestview Drive, San Cprlos, represented J -B Vending and Town and Country Billiards. Town and Country Billiards had been in business- for about f4iir€een years. It had a "fire reputation. as a femi1y recreation center, and did a brisk luncheon business along with making itself available to the Recreation Department of Palo Alto high school, for students to learn the game of billiards." The place had an amusement room with thirteen machines. They were monitored by a closed circuit television system to avoid any problems. He thought consideration should be given as to how a business was operated as well as how many machines were on the premisea. He listed Disneyland and the like as examples of "good clean family fun," all of which had amusement machines. Ralph ?ogler, 357 Reed Street, Santa Clara, represented Temple Sales, which operated Fiesta Lanes. Pinballs at Fiesta Lanes represented only a small amount of their revenue and were kept "as a convenience for their customers ...for certain -age children who play them while their parents bowl." He asked that Council reconsider the ordinance. Councilmember Henderson said that the proposed change would not promote establishment of new arcades; it would only relieve those businesses which had had to cut back due to the ordinace. He said he had not realized that the ordinance did not permit shuffleboard. Iyur Sher said that owing to the lateness of the hour he would not make a speech, and he thought "...it was a step in the right direction." NOTION PASSED: The motion that Council direct the City Attorney to amend the Mechanical Amusement Device ordinance to limit the number of machines to the number existing on the date of the first reading of the ordinance, or five machines, whichever is greater, passed on the following vote: 1 AYES: Brenner, Carey, Clay, Vazziszo, Fletcher, Henderson, Shen NOES: Eyerly, Witherspoon 220 10/3(77 ADJOURNMENT TO 8:00 P.M. OCTOIER 4 MOTION: Councilmember Eyerly moved, sec adjourn until October 4 at C:00 p.m. Th vote. Council adjourned at 12:30 p.m. ATTEST: f a '1/-7) City Clerk jf