The URL can be used to link to this page

Home My WebLink About1976-05-24 City Council Summary Minutes1 CITY COUNCIL MINUTES ITEM Regular Meeting May 24, 1976 Presentation of Bicentennial. Program by Children from Keys Family Day School Oral Communications Consent Calendar -- Action Items Setting of Time/Place for Public Hearing for the Vacation of a Public Utility Easement - 3239 El Camino Real 1 1 4 0 Request of Lakin -Spears, Attorneys at Law, on Behalf of Bata Wells Cochran to Remove Parking Restrictions on Property Known ea 455 Lambert Street 1 1 4 1 Ordinance of the Council of the City of Palo Alto re Portion of Scott Street :'Mini --Park Zoning 1 1 4 1 Ordinance of the Council of the City of Palo Alto re 1040 Colorado Avenue (Colorado Avenue Switching Station) Zoning 1 1 4 1 Ordinance of the Council of the City of Palo Alto re Roble Ridge Property Zoning Consent Calendar - Referral Item Human Services Study: Final Report Transmitting Recommendations for 1976-77 1 1 4 2 Mayor Norton re Palo Alto Bicentennial Redwood Grove 1 1 4 2 Retirement of John R. Woodward 1 1 4 2 Finance end Public Works Committee Recommendations re Gas Rate deductions 1 1 4 3 Policy and Procedures Committee Recommendation re Massage Parlor EetablisInts and Other Adult -Oriented Activities 1 1 4 3 Executive Session Action re Appointment to PACCC 1 1 6 4 Transfer of Webster Property requested by PARC 1 1 6 4 Policy and Procedures Committee Recommendetion re Message Parlor Eatablishmemta end Other Adult -Mated Activities+ Bequest to Move Item 12 Forward -on the Agenda Request of Councilwoman Witherspoon ire Uses Permitted in 1,--V Zone Districts 1 1 6 6 Veterans' Building Xeso1utiors 1 1 9 6 Mayor Morton re Executive &mete on May 27, 1976 to Conaiser Drat Agreement for Settlement of £rastra Lawsuit 1 1 9 9 Councilmen derwa1d re Structure Adjacent to Colorado Rousing Complex 1 1 9 9 Adjournment 1 '00 CITY or PASO ALTO PAGE s 1 4 0 1140 1 1 4 1 1 1:7 6 1186 1 Hay 24: 1976 The City Council of the City of Palo Alto met on this date at 7:38 p.m. in a regular meeting with Mayor Norton presiding. PRESENT: Bestirs, Bawa1d, Comstock (7:40 p.m.), Eyerly, Norton, Sher, Witherspoon ABSENT: Carey, Clay PRESENTATION OF EICENTEHHIAL PROGRAM BY CE I DRR4 FROM KEYS ?WILY DAY SCHOOL Mayor Norton announced the presence of a group from the Keys F i1y Day School who had planned a short entertainment program. The Keys Family Day Schfloi is a non-profit preparatory institution for Grades Kindergarten through Seven, and is located at 2S90S Middlefield Road, Palo Alto. The children this evening numbered a total of 280 representing grades Kindergarten through Six and their program was to honor the Bicentennial. Mts. Elizabeth Danon, Principal, and four teachers of Keys Family Day School, accompanied the children. The program consisted of the pledge of allegiance to the flag, in which everyone present was asked to join, followed by a medley of songs. The children spade a presentation of a 1776 flag, which had been made by the students. On completion of the program, Mayor Norton expressed his delight and appreciation to the group, personally, and on behalf of Councilmembers. ORAL CCMMUNICATIONS CONS C4 - ,A 1C44 Councilman Sher requested that It 3 be removed from the Consent Calendar. It was so removed, and Mayor Norton stated this would appear as Item 10a on the agenda. Councilman Rerweld rested that this vote on Items 4 and 3 be recorded as "no" votes. The following items rosined for voting on the Consent Calendar: LC REARING . +0i T1 1 oT A PUBLIC UT EAS - 3239 EL CAMINO REAL 1161:20:6) RESOLUTION No. 5212 entitlod "RESOLUTION of TIE COUNCIL OP TEE CITY 011 PALO ALTO INC ITS INTENTION TO OEM T*E VACATION OF A ?MAC DTI.0 I SWIM A PUBLIC KAMM MINOR (323? ilT. Ci SAL)" 1 1 4 0 5/34/76 REQUEST OF LAKIN-SPEARS ATTORNEYS AT ON R ELLS COCHRAN TO MOVE PARK1 G T (CMR:283:6) Staff recommends approval of the resolution so that the grant application deadline of June 1, 1976, can be asst. RESOLUTION NO. 5213 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING RESCISSION OF A DECLARATION OF RESTRICTIONS AND COVENANTS FOR CERTAIN PROPERTY IN THE CITY OF PALO ALTO" ORDINANCE OP TEiE COUNCIL OF �, OF PALO ALTO RE PORTION OF SCOTT SMUT ORDINANCE NO. 2916 entitled "ORDINANCE OF TEE COUNCIL OF aE CITY OF PALO ALTO AMENDING SECTION 18.08.040 (THE ZONING ;MAP) OF THE PALO ALTO MUNICIPAL CODE TO CHANGE THE CLASSIFICATION OF PROPERTY KNOWN AS A PORTION OF SCOTT STREET MINI -PARK FROM R-4 TO F >F" (first reading May 10, 1976) ORDINANCE 07 THE COUNCIL OF THE CITY ORDINANCE N0, 2.917 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 18.08.040 (THE ZONING MAP) OF THE PALO ALTO MUNICIPAL CODE TO CHANGE THE CLASSIFICATION OF PROPERTY KNOWN AS 1040 COLORADO AVENUE (T'UE COLORADO AVENUE TWITCHING STATION) FROM P -F TO R--1" (first reading May 10, 1976) ORDINANCE OF THE COUNCIL OF THE CITY, OF PALO AI. LE RIDGE ORDINANCE NO. 2918 entitled "ORDINANCE OF THE COUNCIL OF TEE CITY OF PALO ALTO AMENDING SEC'T'ION 18.08.040 (THE ZONING MAP) OF THE PALO ALTO MUN IC IPAI. CODE TO CHANGE THE CLASSIFICATION OF PROPERTY ENOWN AS ROBLE RIDGE FROM R-1 TO R --E" (first reeding May 10, 1976) MOTION: Councilwoman Witherspoon moved, seconded by Baabrs, that the Consent Calendar be approved, The motion was approved on unanimous vote, Councilman Bervm.td voting "no" as recorded, on Ordinances 2916 a,pd 2917, and Councilman Carey and Vice Mayor Clay absent. 1 1.4 1 5/24/76 CONSENT CALENDAR - REFERRAL ITEM Btu SERVICES_ STUDY FINAL REPORT CMR;2 1; MOTION; Councilwoman Witherspoon moved, seconded by Norton, that this mette.r be referred to Finance and Public Works Committee. The motion was approved on unanimous vote, Councilman Carat' and Vice Mayor Clay absent. MAYOR NORTON RE P Mayor Norton stated that some time ago, Palo Alto indorsed the creation of the Palo Alto Bicentennial Redwood Grove ea the City'a gift to the nations for its 100th birthday. The grova waa additionally endorsed as a Bicentennial project by the American Bicentennial Committee of Palo Alto, The citizens of Palo Alto have contributed generously to the establishment of the grove, and the fundtmg of the grove has now been completed. In light of those facts, Mayor Norton has signed a proclamation stating that Saturday, ,Juan S, 1976, is the day of the formal dedication of the Palo Alto Bicentennial Redwood Grove, and he vas taking this opportunity to make that proclamation public and to indicate the dedication will take place at 1;O0 p,m, on Saturday, June 5, at the amphitheater near park headquarters at Big Basin Redwood State Park, Transportation wIll be provided, and arrangements can be made in this regard by phoning 968-4509. Mayor Norton hoped that many .people present or listening to tonight's meeting on the radio, and any other citizens wishing to attend, will plan to do so, either by using the public transportation just mentioned, or by driving their own cuss to Big Basin, and participate in the ceremony of the Palo Alto Bicentanuiai Redwood Grove. RETIREMENT OF 30Th E. WDODWARD Edward R. Aghjmya n, Director of Utilities, stated that John Woodyard has ben with the Rlaactrtc+ti Utility Department for twenty-four years, first are an electrician, then as a lead man in underground distribution, and more recently, ea Electrical Utility Supervisor in charge of uadergrounding. Mr. Aghjayan continued that in the 1Semontbas►' period be personally has been with the Department, ha has been impressed with the high degree of respect that otte;srs i h the organisation have for John and, in particular, for the respect that everyone has for Mt. Woodward's knowledge of the underground system. Mr. Aghjaayan eeprsssed some co+acors about letting people like Mt. Ord retire, because they seen to have a nap in their Heitds as to where everything is located, and he hoped they could call upon him in his retirement. Mayor iicrton called forward Mr. Woodward for presentation of a pla►cquae, acknowledging his many years of service, and a raeaolution of appreciation. 1 1 4 2 S/24/76 MOTION: Councilman Beahrs moved, seconded by Berwald, adoption of the following resolution: RESOLUTION NO. 5211 entitled ' SQLUTION OP. .. THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO JOHN E. WOODWA.RD UPON HIS RETIRF:AMT ." The resolution was adopted or: unanimous vote, Councilman Carey and Vice Mayor Clay absent. Mayor Norton commented that the City was not pleased that Mr. Woodward was here tonight on retiring and leaving the employ of the City, but all were pleased v#.th, than y yet. _ . Mr. Woodward spurt with the City, Furthcxe the City. -ware ,proud _ of and expressed thanks to Mr. Woodward. He concluded that when the staff runs into an underground pipe, Mr. Woodward might be called in as a consultant, observing he was probably the only person he knows the location of all such pipes. FINANCE AND PUBLIC WORKS COMMITTEE eONs ( :252:6) Councilman Berwald, Chairman of the Firar<ce aid Public Works Committee, commented this was one of the very pleasant recommendations he would present on behalf of the Committee, because it is one for reducing the gas rates to consumers in Palo Alto by approximately 10,7%, mounting to about $800,000 per year. Notwithstanding the fact that there have been previous increases, he remarked this vas a step in the right direction and will enable City to serve customers at a cost comparative to communities surrounding Palo Alto. MOTION:- Councilman Berwald, Chairman of the Finance and Public Works Committee, introduced the following resolution for adoption by the City Council: RESOLUTION NO. 5214 entitled "RESOLUTION OF THE COUNCIL OF TUE CITY OF PALO ALTO, AWYDING SCHEDULE Gel OF THE PALO ALTO UTILITIES RATES AND CHARGES PERTAINING TO GENERAL NATURAL GAS SERVICE" Councils Berwald said that the recommendation to Council in that this proposed resolution be acted in order to effect these reduced rates on June 1, 1976. The resolution was adopted on unanimous vote, Councilman Carey and Vice Mayor Clay absent, On announcing the unanimous vote, Mayor Norton stated he hoped the City could do this again at see time. 1 1 4 3 5/24/76 POLICY AND PROCEDURES COMMITTEE 1 1 Councilwoman Witherspoon, a member of the Policy and Procedures Committee presented the Committees recommendations in the absence of Vice Mayor Clay, Chairman of that Committee. MOTION: Councilwoman Witherspoon moved, on behalf of the Policy and Procedures Committee, the following Council action: a) that the M-1 and M-2 districts be modified so that the permitted uses will not include mseeagee establishments end other adult -related activities; b) to provide, within those zones permitting the uses of massage parlors and other adult related activities, except bookstores and theaters, which should not be Included in this /imitation, that the following distance limitations be imposed: no two such businesses shall be within 1,200 feet of one another, and within some reasonable distance from reesidential areas or schools; c) that Council mend the existing ordinance to provide that the operating hours of such establishments be restricted from the hours of 9:00 a.m. to 11:00 p.m.; d) that a ono -year time limit on technician permits be imposed, but that license fees not be increased; e) that the matter of garish sidewalk activities be continued in the Policy and Procedures Committee, pending further information, prior to recommendation to Council; f) the institution of a Council use permit procedure for adult - oriented businesses; g) that applications for licensing of massage parlors as well as massage technicians go directly to the Police Department, rether than the City Treasurer; and that thirty (30) days be the period in which the Polices Department se -ay grant or deny a technician permit; h) that to insure that card room operations remain legitimate, the current ordinance be amended as follows: 1) bcckground investigations to be conducted by the Police Department for all owners and those employees involved in the gaming operation; 2) any past conviction for violation of gambling or vice laws to be grounds for denial of ownership or employment; 3) all dealers and employees directly related to the gaming portion of the business to be licensed by the City and such licenses to be prominently displayed, non-tranafereeble and renewable annually 4) violetioee of any statd or federal gambling or vice laws to be grounds fer revocation; end, further, that the following- ordinances be adopted: ORDINANCE OF THE CECIL OF THE CITY OP PALO ALTO AMENDING G CERTAIN SECTIONS OF TITLE 1e OF ::HE PALO ALTO MUNICIPAL CODE (ZONING) TO REQUIRE USE PERMITS FOR ADULT NNTERTAINIGUIT ENTERPRISESAND-TO PROHIBIT ADULT ENTERTAINNOT ENTERPRISES FROM CERTAIN DISTRICTS ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER 4.54 OF THE PALO ALTO MUNICIPAL CODE (SAGE ESTABLISHMENTS) TO PROVIDE FOR CLOSING HOURS AND CERTAIN MODIFICATIONS IN LICENSE AND PERMIT APPLI- CATION PROS 1144 S/24/7 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER 4.52 OF THE PALO ALTO YITNICIPAL CODE (BILLIARD AND POOL ROOMS, CARD ROOMS AND BOWLING ALLEYS) TO REQUIRE PER- MITS FOR CERTAIN CARD ROOK T WY ES Councilwoman Witherspoon stated that Policy and Procedures Committee did not have a aecretary present at their meeting of April 20, 1976; her own notes on the motion to remove the M-1 end M-2 districts from the areas in which usage parlors can be located show the motion failed on a 2-2 crate. She did not think this important, adding somebody can take it out, if desired. Councilman %hrs stated that in timen past, this City has become accustomed to litigation and may well experleace mart- en this change in the ordinance. He asked for the'City Attorney's opinion if there is better than as outside chance of auateining this, particularly as regards the time portion, which in a sense seems diocriminatory, although he personally was the firs: to say that massage parlors are not supposed to be places of entertainment, normally permitted to be open until. 2:00 a.m. He cO mented on the term "garish sidewalk activities" and wondered if that term is not weak from the standpoint of definition. Robert K Booth, Jr., City Attorney, said the "garish sidewalk activitea" matter is still in Committee for further consideration and will be dealt with separately. As to Councilman Beahra' other query, the Committee's recommendations for items "out" either- have already been tested or have been upheld --= which applies to moat -- and with respect to the others they ere fully defensible. He pointed out that Palo Alto as well as many other cities have closing hours for a large number of businesses, i.e., drive-in restaurants, ca:drooms, etc. The State puts closing hours on places that serve alcoholic beverages; and there is at least one case with which he is familiar in California which required a Seven -Eleven Food Store to in fact close after 11:00 p.m. He believed the hours recommended for this perticuler business are veil within what the courts are apt to approve. Councilman Beahra asked the reasonable distance [rose eeside tial areas or schools, adding he could not Rey Lira miles, himself. Mt. Booth said staff has recommended 200 feet, and Councilmen Beehre responded he thought thet was unreasonable. Councilwoman Witherspoon referred to page 2 of the staff report of May 20, 1976 in which it is stated the Committee feels any amortisation period would have to be lengthy and that existing businesees should be exempt from use requirements provided for in the ordinance. She asked what would happen in the case of a change of ownership. Mr. Booth responded that normally the City's use pert ordinance, which applies to ail types, including this type, *nova these to be transferable unless the issuing party makes the permits non -transferable. This Council could add that provision in the ordinance; or the Zoning Administrator, in dealing with these permits et tbs first level, assuming be might grant same -- or the Council --if they ultimately get that far, 1 1 4 3 5e24/76 can always condition the issuance of the use permit by making it non -transferable, Councilwomen Witherspoon said she wits talking, in this case, about the "grandfather' clause; cap the City_require, even though they are -now in business, that if the ownership changes, that owner will have to come in for a use permit, even though the use does not change. Mt. Booth replied that would be reasonable, in his view. Councilman Berwald, pursuing the matter of transferability, asked the kinds of requirements involved when an on -sass restaurant, selling on -sale liquor, or an off -sale liquor store changes ownership, proprietorship, or the nature of the business. Mr. Booth responded that State lawn require that the license be transferred, which is very similar to the process of obtaining a new license, insofar as posting, investigation of background, and an opportunity for interested persons to file protest with Alcoholic Beverage Control. Councilman Bt rwald assumed from Mr., Booth's remarks that it would be in order to sdd to the ordinance the requirement that the transfer and application for new permits be similar to those Mr. Booth described. Mr. Booth explained City's procedures are somewhat similar but not identical, and he thought the City could come up with comet}ling close to the State's requirements. Councilman Berwald asked if the 1209 feet was measured along the frontage line of the property, or across the block wan it "as the crow flies" or otherwise. Mt. Booth said it is believed the distance was ensured "as the crow flies," Councilman Sher asked City Attorney for a brief explanation of the effect of the recommendation with regard to the use permit -procedure, i.e., where the application is made procedures thereto, who may appeal (and to what body), end the extent to which City Council might become involved in passing on these use permits. } r. booth explained that tba procedure, which is applicable to all use permits in the City, is that an application is filed in the Planning Departeeent, and a notice of public hearing is prepared, peblisbec., end mailed by the Zoning Administrator, who than bolds such a hearing and either grants or denies, or indicates his intention to do so, the use permit requested. Within fifteen days, any party con file an appeal with the Planning Commission, who than will again hear the wetter; gad their recommendation is forwarded to the City Council for action. Any int rested citizen or the applicant (if the permit is to be denied) can appeal. Cowcilman Sher understood that either party, then. can appeal, and if the permit has been denied, the applicant can bring his cause to the Council. He had an oba.rveticn to rake, in this cation, saki would bring it op at a later point. Me 1146 5/24/76 raised another question about the proposed amendments'. as applied to card rooms, on which Committee minutes indicated very littler discussion took place. At the time this was mentioned when Council was considering the moratorium, there was quece+tion raised on identifying problems, and Mr. Sipel indicated he did not want to discuss the problems at that particular time; however, Councilman Sher was awaiting discussion of those problems and wondered if some member of staff was ready to elaborate on justification of the proposed amendments regarding licensing of card rooms. James C. Zurcher, Chief, Police Department, stated that although there was very little to report in the way of illegal activities regarding card rooms in Palo Alto, it is staff's opinion that from research and data gathered from other communities that. have card rooms, the potential for illegal activities, as it relates to organized crime and to violation of the gambling statutes, can occur when there is no provision of control of the ordinance, They current card room ordinance is very minimal, and the recommendations in the staff report, as prepared by the City Attorney, will address those problems. Councilman Sher surmised from Chief Zurcher's comments that no particular problems have comae up; but in reviewing the entire subject area staff saw gaps or deficiencies in Palo Alto's ordinance, as compared to other cities, and simply thought this was a good time to close any gaps. Chief Zurcher explained the Police Department does have information to share with Council and that Captain Tatum would elaborate. Gary Tatum, Captain, Police Department, stated it might be somewhat inappropriate to discuss, at this time, any investigations taking place in the card rooms. But, as Chief Zurcher mentioned, the patenttal is there and staff believes there possibly east some activities which are currently being investigated by the Department. Their research has shown that such activity would increase without some regulatory procedures, in all probability, and an amendment to the City's current ordinance. The activities would involve illegal gambling, as well as bookmaking* loan shark activities, and the ptrong-arm tactics. and extortion that may accompany such activities. Councilman Eyerly asked if there was an offense and conviction, involving a massage parlor, would the use permit automatically be looked at. ?r. Booth responded the use permit would be automatically looked at, along with consideration of the massage parlor license. Robert K. Lancefield, 189 Walter Hays Drive, said he was a long-suffering, silent citizen but was here to say "hooray, and at last" and urged Councilzszaabers to support and adopt the ordinance. He acknowledged the incredibly lon$ ordeal en tees of trying to work out so9sesthine that would be sustained by - the courts and believed it has been done in what was before Coueci k, He waai dismayed when massage parlors first came to Palo Alto, and if be could think of a simple ordinance, it would be to the effect that there, be no ewssate parlors. 1 147 5/24/76 He did not think that to be a viable solution, with the law as it is now,, This, he continued, is a good start; there are areas, such as garish sidewalk activities, still in Committee, of which he is aware,_his office being near California Avenue, which has more than its share of massage parlors. Overall, he urged adoption of the ordinance, adding Palo Alto needs it. Susan Selig, co-owner with her husband of Des Alpee at 201 California Avenue and a Palo Alto resident, hoped that the more than two-year battle with these activities is coming to a head and that Council will vote for a very tight ordinance. She believed residents have seen the products of an ordinance that has been weakened and hoped for the changes recommended and some -others, as well. She stated she represented not only herself and husband, but other people who have given her letters of endorsement, unsolicited. The whole City, she continued, is irate about the matter and the citizens want action, including a number of people who are not present. She expressed unhappiness with the reduction in space between adult enterprises and any school or district wherein dwellings are permitted,. The present 200 feet, for instance, in a residential district could mean that every third or fourth house could be a massage parlor, pin pong palace, nude dancing studio or a nude sketching studio. She would like to see a minimum of 1200 feet. She expressed concern about existing facilities. The only effective change Council has discussed has been hours of operation. The neighbors are of the opinion that existing use permits should not be sold with businesses and that new applications must be made by the new owners. She cited a problem ethich has not yet been solved in the first ordinance, where it was decided that s massage technician must be in possession of records, showing a minimum of fifty hours of training at a recognfzed school of massage; she felt that when this was put in the ordinance, many massage parlor owners immediately set themselves up as schools of massage, •o that anybody who worked for that establishment got the hours of onethe-job training. Referring to Section 4,54.01© of the ordinance, she called for an increase in the fees, believing that the suggestion sent to the Committee of $150 for massage parlors and $50 for a massage technician were not excessive fees; she said that a restaurant pays a grease deal more than that for a use permit, despite the Committee's concern for small businesses, in particular the legitimate massage operator. She spoke of the moving about among establishssts of massage technicians and the Police Department's difficulty in locating these people. Referring to tha Policy and Procedures Committee minute* of April 20, 1976, she noted it was suggested that massage parlor employers should be responsible for reporting to the City on to nation of any employees and felt it should not only be the responsibility of the owner, *Inc* the .license sus tweed with the understanding that the employee vas employed as a massage technician, but it should also be the reesponeibility of tha massage technician to notify the Police Department of any -chest of employment; and further, that there be sufficient recourse for taking action if this is not ea -implied with. She eontinued that since adult entertainment enterprises now join other facilities in the sale of alcoholic bevermies 'Oder on, -sale licenses in the State of California and under many of the existing City ordinances, she woodered why the City 1 t 4 $ 5/24/76 could not limit the number' of licenses available for adult entertainment enterprises in Palo Alto, just as the State limits the number of alcoholic beverage licenses issued per county. She suggested when the number established has run out, no more may be issued, and the only way anyone may set up a business or get a use permit 13 by purchasing an existing one. She was concerned there was no evident way of controlling the number, as the matter now etande, explaining there were some 20 adult entertainment enterprises in existence and wondered where it would end, were more allowed in. She mentioned that one Councilmember had pointed out that three or four legitimate massage operations would certainly be enough for Palo Alto. Mrs. Selig said the City has not yet successfully closed down a massage parlor, adding she krtev they were close to doing so, despite her hopes something would happen on May 19 or 20 but did not, and the matter was continued to June. She asked why the ordinance could not have included the right of City to immediately padlock or close down any adult entertainment enterprise that circumvented administrative procedures and opened without proper licenses and use permits for a period of :;ix months or one year, She claimed the City Attorney's office has told her there is no law enabling them to close down these establishments. She said the businesses without licenses which hove opened in the moratorium are still operating. She continued that she understands the concern for First Amendment rights expressed in Committee and why bookstores and movie theaters were not included in the adult entertainment enterprises. She questioned the exclusion of business activity wherein sexual paraphernalia, with the exception of contraceptives, are exhibited, displayed, or sold, from the group of adult entertainment enterprises. Hrs. Selig said she visited a bookstore located next door to Royal Massage on Birch Street and Lev entire glass counters containing sexual paraphernalia. Outside advertisements indicate these are gifts, she remarked. The adult bookstore on El Camino Way advertises these items as novelties. She spoke of hearing from a friend about the large amounts of pornographic literature left in hotel rooms, following certain conventions held in the area. This kind of publication, ehe said, is not only available in adult bookstores, indicating a five- year old child of a friend had come home with a graphic description of something he had seen on a magazine cover in ata Seven -Elevate, store. Mts. Selig checked for herself and reported that the current issue of "Hustler Magazine" is available at the Seven -- Eleven, which she purchased and presented to members of the City staff sitting nearest to the speaker's microphone. Mt. Selig, in the course of growing up in Europe, saw a lot of pornographic literature and told his wife this was one of the crudest magazines he had ever seen. Pars. Selig urged that the City profit from mistakes of the past two years and paves a tight ordinance. She said her wish is never to put a legitimate usage parlor out of busineee but to ewe ware that the manage parlors which exist Are truly massage parlors. Steve Myltoie, 415 Fernando Avenue, thanked Council..members and staff for all of the many bourn of work on their part, working with interested citizens, in trying to find a solution to the problems at hand. Re strongly emphasised the two points of hours of restriction basing included, which mainly mold affect 1 14 9 5/24/76 those who were using massage for fast -buck sexual operations; and to include a requirement that any transfer of businesses require new use permits. His neighborhood is heavily afflicted by this blight, and if the grandfather clause is not included, they will be stuck with them forever. Joyce Anderson, 3881 Magnolia Drive, said that throughout the hearings on adult -oriented businesses, rhea* has continually been a smoke screen and the issue has become very clouded. She asked Council to keep the air clear this evening and not fall into that trap. The talk of Pirat Amendment end constitutional rights, victimless crimes, consenting adults,is only a smoke screen, in her view, to the real issue. The State hoe decided that activities under discussion hers, are illegal, and that eliminates consenting adults. She continued that victimless crime ie nonsense. The neighborhood adjacent to the area, residential and commercial, is the victim. Chief Zurcher has stated at public meetings that when adult businesses are allowed to proliferate, adjacent arise deteriorate. First Amendment and constitutionaal rights are rights of everyone and should not be allowed to be exercised by a select few. She voiced her support of the specifics which would be given by David Jeong later this evening. Regarding the recommendation on institution of a Council use permit procedure for adult - oriented businesses, M. Anderson assumed the Committee was including theaters, booketoree, and card rooms. When Council gets down to voting on each issue tonight, First Amendment rights have eothing to do with requiring a use permit, according to Me Aode.rson, nor does it prevent the City froti requiring a use permit. The City requires permits for nurser schools but has never seen fit to require permits for these establishments under discussion this evening. She said she was bothered about several facets of the City's procedures, such as use permits being transferable, and was opposed to any use permit being transferable which she felt should be for "that operator at that address," and should be renewed annually, as is done in the County. She cleimed the City's present use permit system protects the owners of property, but not the occupants of the property and she felt the City had responaibil ity to protect the general welfare of the occapanta. South El Camino is predominantly abaentee landowners who, from the looks of it, could care rasa about the character or function of the El Camino. The notification system does not notify the individuals who are most directly effected, and these are the occupants, whether it be a commercial business or the apartment building, and the home which is rented. She called for a better way to supervise the. 250 -foot notification, or pe.rhspa David Jeoag's suggestion will be a possible alternative. Notice is being paid for by the applicant. Ma. Anderson asked Council to continue tie moratorium for six months. Chief &archer has stated in public meetings that he does not have the staff to handle the eeesaw,, parlors, and they are not charged for the investigative work required. Ms. A ndercon said she was asked to attend a broad --based concerned group comprised of business people end residents with Capt. Tate and Mt. Thatcher of the City Attorney's office. The question vas asked why aces it the City taking action, one at * tine, to which Mt. Thatcher responded 'manpower." NA. Anderson did not tuner where the City was from 1967 to 1973, when Meade Park, Mountain View, the County, and other cities* nearby adopted their ordinances to control these kinds of businesses. Because 1150 5/24/76 of the absence of any precautions at that time, the problem now is very expensive and tune -consuming. It the City does not have the manpower to effectively enforce its own ordinances, she suggested the Council continua the moratorium until the problem gets to the level where it can be handled. In February, Mr. Booth said that the City could justify the moratorium to protect public safety and welfare; that still holds true, Ms. Anderson stated. The numbers of these establishments have not decreased in her area but, in fact, establiehraents are thumbing their noses at the City and operating without any permits or Architectural Review Board apptovalj and some are even located in zones where they are not allowed. Thin means more manpower, more court costs. She referred to A meeting attended by Mayor Norton and the City Attorney last October in which she said Mayor Norton asked staff why Palo Alto has all of the massage parlors; she asked if Mayor Norton had told the Council that the response was either the City's ordinance is not any good, or it is not enforced. M8. Anderson said the people want a good ordinance which will be strictly enforced. Chief Zurcher has said in public meetings there are two massage parlors that do not have some history of illegal activities. The Committee went to tremendous lengths to protect those two establishments. She pointed out there is a commercial district and a residential area that also need protection. Barron Park has a deep feeling about being part of Palo Alto, and there are many worthwhile things under way there. But the past three years may be compared to fixing up the house and letting the front porch fail off, She celled for the matter to be handled properly this time for the good of the entire community. She asked that all adult -oriented businesses, theaters, bookstores, and card rooms, be included under a new use permit system or a Council use permit system, not transferable but issued for the particular operator at the specified location and renewable annually; a more effective system for notification for hearings; and continuation of the avoraator'ium. Jane Crubge1d, 3746 La Celle, said she has appeared before the Policy and Procedures Committee, and at that time requested that permits be granted in public hearings. Appealing to the Finance and Public Works Committee, she stated she was cost conscious and reads the minutes of the Committee carefully and thus sees she must leer her expectations. She would ask that these specific permits be given at Council level, or at least the final portion of the permits, which mould enable Council to handle certain financial problems. Council could deny permits which exceed the number City police and legal staff can handle. If City is currently pest that point, her suggestion would mean that no further permits would be given for some time. If all of these operations are operating legally, she was sure Chief Zurcher would so report to the Council, more of those businesses would be allowed to operate. She felt that if permits previously had been greeted in public hearings, the City would not have 27 such establishments. She recalled en earlier Council meeting in which a Council or expressed surprise when a map showing the number of such institutions located in a certain area was shown to him; had he helped to give such pera►lte, be would not have been surprised. She vented remewal of permits as a requirement. Her feeling was that times and the character Of a particular neighborhood chaicngae, affecting the desirability of establishments in a given area. Annual renewal, 1 1 5 1 5/24/76 she suggested, could be a routine matter for the Council, perhaps a Conaer,t Calendar item. Ms. Grubgeld was especially concerned that the establishments now in existence cannot be brought under the program and wondered about the possibility of every establiehment being given a permit, which would be renewable within a set period of time, following passage of tonight's ordinance. At the end of the year, the operations in existence would have to join the new procedure, ,just as aayon. else, applying for the first time. Mayor Norton returned the matter to Council and asked if Council wished to take up the recummendi tions as a body, then make changes in individual sections; or tilts each provision up, nne at a tine. Re w&e inclined to consider the recommendation as a whole, then entertain changee.or corrections. Councilman Beahrs felt, in consideration of time and. appropriate changes, it might be a worthehi..le proposal for Council to debate some of the problem each Councilmmemasbsr sees, then give staff instructions that changes be male in the ordinance so that Council does not labor over trying to write the ordiw nce, which would be impractical, in his view. Mayor Norton agreed, stating any changes to be made can be given in sense form to Mr. Booth for his indication of whether changes of such magnitude would delay the introduction tonight of the ordinance, as revised, and Council can be guided accordingly. AMENDMENT: Councilwoman Witherspoon moved, seconded by Comstock, that existing businesses shall be exempt from use permit requirement unless ownership changes. Mayor Norton's interpretation of Councilwoman Witherspoon's intent was to include every conceivable type of Chen a of ownership, such as a change of corporates control. Councilwoman Witherepoon indicated she would Like City Attorney to make this provision us tight as possible. She took the wording from City Attorney's letter of May 20, 1976, second paragraph of page 2, with reference to section 18.90.036. For the audience's. benefit, ebe stated tnet according to City Attorney, a use permit would be required for any type of cieuge occurring in the asnaer of business. Her rsferente in this amendment was only to ownership change to be drawn as strictly as legally possible. Mr. Booth's understanding of the proposed amt wee that use permits would be mad* non -transferable oe change of ownership/management. Councilman Bcrcwald &awned that it would satisfy Councilwoman Witherspoon to require new use permits end new licenses for people in the establishment upon ownership ch,s. Mx. loath explained that licenses are already required; while the use permit is not with respect to the instances mentioned. Councilman Witherspoon's amendment would ssska it a requirement that e new use permit be obtained on cheese of ownership, than reining the use permit sue -transferable. Mayor Horton *eked if a new massage parlor license would also be required. X132 3/24176 Inc. Booth responded affirmatively and that the new license was a present requirement. Use permits would be affected by the amendment and operators would have to get a new use permit on any change of ownership. Massage parlor licensees are required at the present time on any change of ownership. Councilman Sher referred to his earlier comment that he is somewhat concerned about the number of matters that are going to be before this Council, because Council con be assured that every use permit that is granted will be appealed by the people who opposed the permit at the lower level, before the Zoning Administrator. On the other hand, every use permit denied is going to be appealed to the City Council by the applicant for the permit; so Council could expect to see many sppeeal& from the granting and denying of use permits. He was prepared to have those matters come before Council, because as apeeskera have pointed out, there ere a number of other types of activities thet require use permits where the same procedure is applied, But Council must recognize what they were inviting, and what would happen, these matters being of a nature that cannot be dealt with on the Consent Calendar. Natters involving application and appeal are full-fledged agenda items which take some time. As long as Council.membera have their eyes open to this fact, it was fine with Councilman Sher. Councilman Sher also agreed with the speakers who said if .it has all right to permit certain types of activities, Council ought not to be discriminatory about this one kind of troublesome activity, thus it would be approptiate to institute the use permit. However, he felt the City should have uniform procedures aua asked Mr. Booth to explain those procedures of requiring new use permits, 'here there is change of ownership in nursery schools, places selling alcoholic beverages, etc. -- in otherwords, to provide a review of some of those activities requiring use permits. Mr. Booth did not believe there are any activitieee that are non- tranaferable, although these could easily be made so, if there was a particular problem. The procedure would be the same se obtaining the permit the first time. application, notice, and haaring, with the right of appeal of anybody who does not like the proposed decision of the Zoning Administrator. Councilman Sher assumed from this response that use permits may setae be transferred, without application, in other types of activities. Mr. Booth said that was correct. Councilman Sher understood Mr. Booth's memorendum to say that anything that affected zoning and uses would have to go to the P1snniug Coemeni..ion; end what Council is deciding now is what they want to refer to the Commission for its review. Mr. Booth said that was so; this pesrticular ordinance was the first of three under toneideeretioe now; and it must go to the Planning Commission because it =etude the zoning ordinance, Councilmen Sher suggested that perhaps Counci/ look at these setters first, because they wars not in a position - tonight to take ectiou on the zoning matters in the ordinances or Municipal Code, which must go to the Pla.rening Commission. Hs asked the City Attorney. if Council does {,make a change in regard to message parlors awe: related adult activit isms, requiring a new use permit whenever ownership is transferred, could this be doss without making the 1153 5/24/76 same requirement for other types of use permits. Mt. Booth thought this could be dons, because most of the other use permits required .by City are not really effected by the quality of ownership or management. For simple, a well -run nursery school is all right no matter who owns it; and likewise, gas stations, churches, and the few other uses permit activities the City covers, 'these are not generally a function of who is running thecae activities, but, rather, the impact on the neighborhood, which generally stays the sane. Many of these have turned over innumerable time over the years without any noticeable problems. Councilman Sher pronounced this as being a good, concrete, solid bit of legal advice. But obviously, its passing this ordinance, the Council does not want to pass one that is subject to attack on the grounds it is discriminatory. It was his view that if Council is sending this to the Planning Commission, they should also be eent the question of whether the whole use permit structure ought not to be locked at, at least, to investigate this point about transfer of use pertaita without a new application, If this is just a formality, perhaps the City should require it for all activities. In that way, there would be even-handed treatment for all activities. When this becomes a motion for referral to Fla►n5.ng Commission, Councilman Sher's intent would be that the Commission look at the whole question. Mayor Norton did not believe that .just because this matter has to be referred to the Planning Commission that Council is disabled from acting tonight on any amendments they might wish to include ia the referral. Councilman Sher indicated he felt Council is in a position to refer the action they desire to take but not in a position to actually put the auction in effect, Mayor Norton concurred and added, for the audience's understanding, that the first of the three ordinances hes the effect of changing the tuning ordinance, and under City lint, hat to be referred to the Planning Commission before Councilcantake final action. Be was suggesting that this ordinance may go to the Commission "as armed" rather than es it sits before Council tonight. Council wee tot giving that ordinance first reading tonight or taking final eftios;, pending return of the natter from the Planning Commission, Councilman She asked if this would be the appropriate time to move au amendment. Mayor Norton suggested that once Council gate all of the desired changes in the body of the ordinance, this could be tagged on at the very end, prior to taking up the second ordinance, if acceptable to Councilman Sher. Councilman $.weld felt. as did Councilman Sher, that Council should have more information on equity and uniformity with other use permits in einilar types of establishments. - - Mayor Norton said that this was going to be brought up at tire" appropriate time by Councilman Sher. The amendment area approved on unanimous vote, Councilman Carey and Vice Mayor Clay *begot. I 1 5 4 - 5/24/76 _ Councilwoman Witherspoon wanted to make a change made with respect to the M-1 zone In the ordinance before Council ehich would preclude the adult entertainment therein. She referred to Councilman Carey's comments on pg. 47 of the Policy and Procedure Committee minutes of April 20, 1976. Ns thought that since one had to assume these were legitimate businesses, they were inappropriate for an M-1 industrial zone. Councilwoman Witherspoon said she approached this from a completely different angle and was trying to find what zones were far removed from any residential area; then, in consulting the zoning map, discovered only the M-3. zones were not adjacent to a residential area. It occurred to her that when the zoning map to considered next year, it may be found that massage parlors should be put in the Mel zone. She was thus reluctant to exclude this zone. AMENDMENT: Councilwoman Witherspoon moved that Section 10, subsection (a) of Section 16.55.020 which mentions "uses permitted in M- 1 districts except adult entertainment and enterp.isee" be stricken. Mayor Norton said that the effect of this motion, if there is a second, is to allow these eatablishmeeta to be in M-1 and M- 2 districts, as well as any other zones in which they would be permitted. AMENDMENT RESTATED: Councilwoman Witherspoon moved that part a) of the Policy and Procedures Committee's reco=endation regarding H-1 and M-2 districts be stricken. Mayor Norton asked Councilwoman Witherspoon why she felt that this action would be desirable. Councilwoman Witherspoon 4:explained Chat when she was trying to find a district in town to allow the location of adult enterprises that was not adjacent to residential areas, this was virtually the only zone fitting that description. Mayor Norton felt that this was broadening the area in Palo Alto in which adult enterprises could be established. Councilwoman Witherspoon responded bar point was to try to get tbeee away from the residential area and the reeidential/commercial zone. If the M-1 and ?4-2 districts are taken out, that possibility le precluded. Donna Gerry, 235 R►ei oaa Street, asked, in Council's considering restricting adult entertainment to the industrial area -- Bch seemed like a good idea a- if a message place that is not restricted as an adult establishment would be restricted to that area too, in the future. She referred to Paul la -marten's idea, expressed at the April 20, 1976 Policy and Procedures Committee meeting, of distinguishing between different kinds of massage businesses, and asked if that was being kept in mind. Councilwoman Witherspoon explained she was not sayiu$ that massage establishments could only be in those particular zones. It was a reverse process, somewhat difficult to explain, and shat was leaving that cone in as a possible location for usage parlors, which did not mean this was vhare they had to be located. Ms. Cowry said she was simply wondering if that was a future plan, which seemed to maks epee sense. 1155 5/24/76 Councilwoman Witherspoon felt that was a long way down the road; she aaeu:aed City would be doing the ' soning map this next year with the Coucpreheneive Plan. Mss. Gerry naked if there has been any consideration given in doing this. Councilwoman Witherspoon did not know of any formal consideration of the matter. David Jeong, 4056 Park Souslvard, arrived at the meeting later than anticipated and said he was with the Ventura Neighborhood Association, vbich group is deeply concerned about the blight visited upon the South Palo Alto area. Members were present tonight to observe City Council action to'see if some effective ordinance's will be passed to control these adult -oriented businesses or if something watered-down and ineffective is passed. The problem is defined, motions are being proposed tonight, and the residents are ready for Council to take action. If each member cf hie group were to speak, this would be a long, repetitious evening; although of one voice, he was expressing opinionn of r ny. Referring to the Policy a end Procedures Committee meeting of April 20, 1916, Its. Jeong said that most of the public left prior to this matter having been addreaeed, since it vas past midnight when action started to be taken; therefore, the residents feel that the lateness of the hour discouraged the attention these issues fully deserved and it seemed that the recommendations were made by Policy and Procedures Committee out of expediency. Conaeque ►tl.y, the people were proposing their own Ordinance amending Title 16 of the Palo Alto Municipal Code, Section 11, Section 18.90.086: (a), 1) remove the words "two hundred" and replace with the words "two hundred fifty"; (a) , 2) remove the words "two hundred" and replace with "two hundered fifty"; (b) add words "ownership or proprietorship" after the word "manner." Add a atatemeut that the use permit is not appurtenant to the property. Add another paragraph (c) , Public notice will be given as in section 18.90.060 of the Palo Alto Municipal Code and this notice will also be published in a newspaper of general circulation printed in this city and roust be published once a week for twenty days not a►ore than seven days apart. The notice newt be posted for the same period in at legit one public place in this city and also in sweet conspicuous piece on the property. Ordinance (sending Chapter 4.54 of the Palo Alto Municipal Code - Section 1, Section 4.54.070, after the words "non-refundable" add the words "first time" and remove the word "ten" and replace with the word "fifty;!' add'"The renewal fee will be twenty-five dollars," as the third sentence; amend section 4.54.040 to include • first-time fire of one hundred fifty dollars and au annual renewal foe of fifty dollars; Section 4.54.110 (16) remove the word "eleven" and replace with the word "tam." Councilman Herwald said in thinking of an M-1 sone as being an allowable zone for these establishments in any M-1 some vbsYe not iese t 209 feet from a school or hors, he would rather take the 200 -feet issue first, then take a look at the sone, Regardless of what the se.idential zap is now, the establishment can be within 200 feet., as the ordinance now exists. Councilwoman Witherspoon explained that there ate no schools or residences anywhere near the W1 end IW-2 *ones, which is why they were attractive to her. 1 1 5 6 5/24/76 Councilman Berwald stated there were schools or residences near such zones, mentioning the zone Along Alma and Forest as being M-1 or M-2, to his knowledge. Mr. Booth said there were some such zones its the downtown area. Councilman Berwald said that on Perk Boulevard, there is an M -zone with a wrecking yard which he thought might recently have been rezoned, and there is possibly another nearby. He cited an Me zone further up on Park Boulevard with some manufacturing establish- ments; so he would rather look et the 200 feet. It was ironical to ht.e that one can put a massage parlor within 1200 feet of another massage parlor and within 200 feet cf the Sharp's house on the corner of Charleston and Nelson Drive, because that would be at the service station, and it is more then 200 feet. He supposed you could put a massage parlor in the service a station. He therefore repeated he would like to look at the footage first before approving this amendment. He would like to restrict rather than toenlarge the number of places these businesses may be established. Mayor Norton asked if there was a second to the motion. There being none, the amendment failed. Councilman 8eahrs said he had earlier raised the question to City Attorney about the reasonableness of 200 feet from a residence. Councilman Berwald has now raised the same question again, and he wondered why there could not be other criteria involved here, in addition to distance. It seemed to him that 200 feet may be absolutely and obviously unreasonable, or even 1,000-2,000 feet may be unreasonable, depending on other criteria that might be employed. He did not see that this possibility is discussed in the proposals; yet, too, he was hopeful that Council can come up with something that can be handled at the administrative level, or, as suggested by Councilman Sher, Council will be sitting as a committee on use permits and licensee regularly every Monday night, Why, he asked, can't some other factors be built in which are enforceable, reasonable, and which give a greater flexibility for good, honest judgement in giving use permits. Mr. Booth responded there ere a large number of criteria already. Public concern with the matter is one; the activities of the proposed licensee is another. Traffic is always a consideration. Those criteria are taken into account by whoever issues the use permit. Somebody has suggested 250 feet, and Mr. loath had no problem with that limitation. Staff selected 200 feet in this proposal 'imply because there in one case in the Alcoholic Beverage Bill that upholds that distance. But that is not to nay that 200 feet is the only distance that would be upheld. Councilman Beaters said he had wor :tared where the 200 feet came from. Appareptly apse court staid it was reasonable in certain circemstences. It might not bs reasonable to the City of Palo Alto in other circumstances. Mr. Booth said that Councilman &Wars was right — Council could change this figure to some greater or lessor limitation, so low as it ,is not so groom as to completely exclude the businesses from town. That is ons of the problems many of the City's commented sons* have in that they are in relatively close proximity to residential neighborhoods, and that is particularly true along the 'B1 Camino Real. 1157 5/24/76- Councilman Beahrs asked if the City must establish a standard Linimum distance. He wondered why the need to say anything -- if the City is going to be exa.ning every nee permft that comes along, which is more then probable, it occurred to him they would be hanging themselves on that particular dietetics... Mt. Booth thought this is because it provides a better measure for the hearing officer to determine whether or not the application can be granted or ought to be denied or retuned. It also is,a tstat dard by which the court can assure itself that everyone ham been treated equally in the adminittration of the program. Councilman Beahre understood staff's problem but said he was still not satisfied. Ate: Mayor Dorton moved, seconded by Witherspoon, that the words "two hundred" be changed to read "two hundred fifty" in Section 18.90.086 of the ordinance. Councilman Eyaerly observed that Policy and Procedurem Committee had discussed the footage distance at length and had left the matter open, with the comment that if it is put at too great a distance from residential areas, as Hr Booth has just pointed out, these eatabliahments might be excluded from a large part of, and pose legal problems for the City, While Mr. Booth had indicated that there was no problem with 250 feet, if it went any further, there could be a problem; he wondered if such a provision would exclude these businesses from the El. Camino area, south of California Avenue, thereby forcing some of the businesses out. Mt. Booth was of the opinion that a provision for 200 feet would make west of the businesses along El Camino Real non -conforming. He would have to check the location of each one and how far back the commercial zoning goes; although, in general, these are not more than 150 feet except in rare exceptions, such as the Cabana. Mt, Eyerly said that if the Council adds this amendment, calling for 250 feet, to the ordinance and studs the matter to the Planning Commission for investigation, the Council would apparently be on the safe side. Mr. Booth responded that would be in order. Councilman Bervald asked if Council, in referring the matter to Planning Commiseion, would be akin$ them, in effect, to make judgement end a recommendation as to what the ex act footage should be. Mayor Morton''se interpretation of such referral wee tit the Planning Commission v' uld respond to the ordinance before Council Weight, as Council proposes to amend the ',r ti a e. They can then comet and make recommendations for changes. Co mcilmen Dervald stated that there are sixteen adult *sten/pimento an El Canino heal between the 2200 to the 4200 blocks, with such interesting names as The Streaker, Pleslsure Palace, Bs s� hi the Green Door, Royal Jester, etc. R; asked about the concentration of message and adult entertainment establishments in Menlo Park and Mountain View. 1 1 3 8 5/24/76 Chief Zurcher responded he believed in Menlo Park there were none; in Mountain View, there are two, both of which are licensed and receive adequate enforcement, Councilman Berweld asked if staff would want to venture to say why Palo Alto is afflicted with these kinds of establishments. Chief Zurcher expected there were two reasons, one being that the City did not have an ordiivance which prohibits massage parlors until about a year ago; the other reason is that there is a significant demand in Palo Alto, especially along the South El Camino Real. Councilman Berweid asked Chief Zurcher if he was talking about the motels. Chief Zurcher responded a ffirmttively. Councilman Berwald commented that Menlo Park has a few motels and that Mountain View has & considerable number of motels. He wondered if there were more than the two stated reasons, in Chief Zurcher' a estimation. Chief Zurcher knew Qf AO other reasons. Councilman Berwald asked the effect on the distance li°itation on the sixteen establishments. it. Booth stated that over time, the result will be a substantial reduction, because as these establishments close, or go out of business, or their licenses are revoked -- which has occurred in something close to half of the aumtbers the City had over a year ago -- these businesses will not be entitled to be replaced. Councilman Berwald surmised the buainessea would be non --conforming. If there is a change in cinzerahip, the new owner is required to come in for a raring. He *skied if he was correct in assuming if there was a change in ownership, the license and permit would be denied because Of the/ass-than-200 feet, or whatever is set by Council as the distance from a residential zone. Mr. Booth confirmed that that would be correct. basis. Councilman berwa1d wanted legally deny the license. if Council so changes the ordinance, The City would deny the license on that to assure himself that the City could Mr. Booth believed so; this has mot been tested in the court, so far as he is aware, but his opinion vas that this is within the limits of a city's powers. Councilman Berwald was concerned about a grandfather type of clause and wondered about existing establishments biting "grandfethered'' into the other proeieione of the ordinance, so that all of the provisions would apply to existing, es well as to new establish sues. Mr. booth responded that if he understood the question, the answer is yes. Councilman berieaid assumed there were no provisions, then, in 1159 5/24/76 the new ordinances, as revised, that would exempt existing establishments from any provision. Mr. Booth taid that was right, with the exception of the use permit requirement, which is being referred to Planning Commission. Mayor Norton stated the amendment before Council is to change the 200 -foot limit to a 254 -foot limit from residential, etc., area*. He referred to page 3 of the first ordinance in section (b) mending "The provisions of this section shall not be applicable to adult entertainment enterprises legally doing business before the effective date of this section..." and asked Mr. Booth if this wan still in the ordinance, or was it implied this VIA out by some of the actions Council either has taken tonight, or might be taking before the completion of this agenda item. Mr. Booth said this has not been takers out, but of course, with the insertion of a non -transferable provision, it would tend to lock in only those operators who, by operating in a legitimate manner, do not come afoul of the City and thereby lose their licenses. Mayor Norton assumed City Attorney night be wanting no charge of the language of that statement. Mr. Booth felt no charge would be necessary, except to :add Councilwoman Witherspoon's amendment. Councilman Berwald :suggested adding "except when there is a trensfer of ownership." Mr. Booth responded that has been done; he did not think any other Jaange& would be necessary. The amendment was approved on unanimous vote, Councilmen Carey aid Vice ► ayor Clay absent. Mayor Norton referred to a statement in City Attorney's report, indicating staff would prefer to leave bookstores and theaters alone on the ground that there may be a First Amendment consideration; no that those establishments would not be affected, for example, by the 12O() -toot: r1ele. Thera appears to be an additional fact that there are "sexual paraphernalia" sold or given away at such operations, and share that activity is a significant part of the enterprise, was it a possibility that these would then be removed from so -celled First Amendment areas, and that at places including that activity, the City night treat them as ordinary business enterprises. Mr. Booth replied that that portion of the bmrinass certainly could be so treated and therefore be made subject to this ordinane, if Couac i 1 wished. Mayor Norton asked which specific ordinance would be applicable -in this in.tencs. ` tkr. Booth was of the view that at lama the first ordinance, which requires use psrsdta, would be applicable. The second ordinance would not necessarily be applicable. Me suggested the question be left open, and if the Council is interested in that item, staff 1160 5/24/76 can put it in or not, as it looks appropriate after the fact. AMENDMENT: Mayor Norton moved, seconded by Beahrs, that establishments whose activities, in substantial part, consist of the sale or dissemination of "asexual paraphernalia" be included within both the 250 -foot and 1200 -foot limitations. The motion was approved on unanimous vote, Councilman Carey and Vice Mayor Clay absent. Councilman Beahrs'a understanding is that use permits are issued for an indefinite term. Council has qualified that tonight in just two respects. He asked about the policy underlying this distinction between a license and a use permit and why as one person in the audience suggested, the City cannot require a renewal of the use permit annually. M.r. Booth responded that in some circumstances, this could be a requirement, where it is clearly shown that there is a highly volatile character to the type of business. However, there is a significant administrative burden involved, not only in hearings before the Zoning Administrator, but on appeal before the Planning Commission and City Council. He suspected that over time, it would probably be more trouble than it is worth, since the process of revocation for those premises which are operating in an improper manner is an equally effective remedy and can be applied even sooner without having to watch the calendar, Councilman Eeahrs asked if staff has any problem with that particular situation in a discriminatory sense, assuming the City requires adult entertainment businesses to secure a use permit annually. Would this have a discriminatory effect which would cause the City Attorney trouble in litigation. Mr. Booth knee of no case dealing with that question directly but pointed out that the more special provisions that are made applicable to this particular class of businesses, the more suspect they look to the court that has to view them:. Councilman Beahrs commented qtr. Booth suggests the administrative problem; it was his feeling the City already has that problem. The Council and staff have gone through this particular exercise on the ordinance at least three or four tines in the last six months and have given hews to the matter, If it has an inhibiting effect, Councilman Eeahrs would be glad to have a Council meeting every other month to deal - ►pith the problem at hand until it is wiped out. In otherwords, the City could put an annual limit on a use permit. )fr. Booth said it could be done although it has not yet been tested in court. Councilman Baahrs said before he Bads a motion, he wonld like to hear counts from other Councilaembers. Be personally was disposed to trying such a limitation, but if there its no Council sa'pport for the limitation, he would not meaka the motion. AMENDMENT: Councilman Eyeerly eovsd, seconded by Beeahrs, that usa per tte be required for adult entertainment enterprises already in operation. 1 1 6 l 5/24/76 Councilman Eyerly assumed that these businesses would then have to apply for a use permit, and community input would be made to the Zoning Administrator, although'this action would not necessarily phase out a buainese. Mr. Booth stated that if the busies -ale required to apply, a denial is as likely as a granting of the permit. Councilman Eyerly asked if there was any problem on defending the legality of such action. Mr. Booth said there was a problem, because in general, under scans, when a class of non -conforming uses is created -- which the ezisting parlors would fall under — there should be a reasonable amortization period, somewhat related to the value of the business and the investment in it. For sxaaepls, signs can be amortized much more quickly than, say, a $190 million industrial concern. Of course, there are various degrees within this, He would have gsrme legal problem. He pointed out, however, that the City, with the proceae requiring massage parlor licenses themselves, then as each one is revoked, requiring the new operator (if there is one) not only to obtain a massage license but also a use permit, may well achieve close to the same effect. Eventually the only reining operators will be those who are conducting their businesses in lawful and acceptable fashion. Councilman Eyerly appreciated this information. In allowing the people to speak before the Zoning Administrator: one assumed the operator is put on notice that there are certain requirements he must live up to and if there are problems, the City is free to revoke the use permit, another way in which an illegal operation can be closed, Were he to add to his motion an amortization period of three years, he asked City Attorney if this would be defensible. Hz. Booth responded three years would be adequate as an amortization period. AMENDMENT RESTATED: Councilman Eyerly need, seconded by Baehr., that use permits be required for adult entertainment enterprises already in operation and that there be an amortization period` of three years. Mayor Norton asked Councilman Eyerly if it wee his intention that the affective date of the ordinance would also commence the three- year period. Dili Comstock, having eat through the Policy and Procedurab Committee, resulting in the detailed minutes, and having listened to some of the ants Council bas adopted to this point and tba -et now before Council, bad given thought to Council's discussion and expressed the following concerns, which echo some of Committee's eoecerns as well, in asking their recommendations to Council. "Wzonea heirs been eliminated, so "C" sons are the current topic. Council ie beginning to draw up a list of requirements ffor enterprises of a particular type in the "C" seems that do not find duplication in other enterprises in "C" ones. ke did not know wheat City Attorney's "break" point was but it appeared to his that the Council was beginning to escalate their exposure to establishing a fairly discriminatory procedure for specific business enterprises that is not being; applied elsewhere, and 1 I 6 2 5024/76 w - -"s7 -F T� 1 -r wIry • 7 • n,_7r "- •- w' r rte'. r' he was going to depend on the httorney to raise his hand along the way, if he feels the point is reached, and inform Council they are there. He felt tonight they have progressed beyond Committes'a recommendations, and he is hearing conversation in the wings about some more ideas. Some of these May be ranked; Council nay go through a list of suggestions, and the City Attorney may suggest Council has gone too far and may want to back up, but perhaps not. He hoped Councilmereber: would think about this possibility and whether some of the actions taken, or which are contemplated, are more important than others. Councilman Comstock said that he, for one, was impressed that in Committee, a fairly useful and effective device was going to be control of the operating hours. Perhaps, he added, his iz*preee ion was reinforced by the fact that subsequent to the Committee meeting, there was an armed robbery that occurred at about 1:00 a.m., resulting in a high- speed chase. He felt that fact justified his support of earlier closing hours, even if that particular problem was armed robbery, which is an endemic commueity problem, in any case. He hoped hie colleagues and members of the public would ask themselvea: are some of these matters more important than others? Re felt acme were of great importance and would be effective --- the use permit procedure of hearings and requirements that occur during changes. He did not know about the amortization period suggested by Councilman Eyerly to the extent of whetter it should be for a three- or five-year period or, in three years, whether perhaps the rest of these requirements would have dealt with the problem more effectively, anyway. As he understood the motion, it was assumed that everyone is goin to cote In and apply for a use permit; if half of them are denied, they will have three years in any case. He hoped members of the public understood this. It was not necessary to argue the motion, but he pointed out that because al; are required to obtain a use permit, they are not going to go away tomrrow, if denied. Councilman Eyeriy's motion suggests three years is a reasonable length of time to avoid or minimize the attack on the ordinance that might occur because of unjustifiable economic hardship. He urged careful consideration be given to the moat important and effective actions. Mayor Norton stated that following the vote or this motion, he would call for a recess io the meeting. He announced to the audience that Item it had been carried over from last week's meeting. This item was continued to tc tght's meeting by specific motion to comeup as the next matter after 9:00 p.m. There were people in attendance to speak to this matter, and Mayor Morton vas inclined to interrupt proceedings related to masisage parlor establishaeeats and adult -oriented enterprises at the end of recess, and try to dispose of the Webster Property matter; than discussions of this agenda item would be picked up and effort would be made to finish the discussions. Councilman Sher understood the motion to be a requirement that existing adult enterprises come in now and apply for a use permit; if the permit is denied, then there is a three-year amortisation period. He beii.eeved Councilman Co stock's point was well taken in noting th et when there is an accumulation of these matters, - there is a risk of establishing that this is discriminatory -ea against other kinds of activities that require use permits and perhaps add ammunition to the litigation that id inovitable. His prediction was that very few businesseees would apply for a use permit, arguing the legality of the requirement, forcing the City to claim it was a legal measure and pursue the matter. -if 1 1 6 3 3/24/76 importantly, the City would have to take the initiative in bringing the lawsuit to try to establish the validity of this new ordinance, if this motion does pane, Councilman Sher would want to ask the Planning Commission (which he proposed to do in connection. With the use permit on transfer' of ownership) to also look at that in the context of the whole use permit question and to Saks sure that this is desirable and neceaaary, in term of even-handed and uniform treatment among use permit* for various kinds of activities. The notion was approved on the following vote: ATRS: B ehrs, Berva3.d, Comstock, Eyerly, Witherspoon NOES; Norton, Sher ABSINT : i . darey,. The Council recessed to Executive Session from 9:3S p.m. to 10:05. Councilman Comstock left the meeting at 10:05 p.m. and did not return. EXECUTIVE SESSION ACTION A. INh' T TO PALO �1, T O Mayor Norton announced that in Executive Session, the Council approved the nomination of Leonard Lvy to the Palo Alto Community Child Care Board of Director,. TRANSFER OF WEBSTER PROPER' B tal AhTO INC CORPOR .T I n Carol Tanofsky, 725 Hayfield Avenue, Stanford, officer at Midpasnisnsula Citizens for Fair Housing MT), rsad the following statement into the records "Mall urges you to endorse the Housing Corporation's proposal for transfer of the Webster Property as outlined in their report dated May 19, 1.976. We have followed closely as Palo Alto has worked continuously over the past several years to put together a family housing development on the Webster block. "During the years since the City initially purchased the Webster property, all the R our ui subsidy programs hsrve swaged and the cost of housing coestructicn bas increased dramatically. The Sousing Corporation has diligently followed all the legislative charges and possibilities in its attempt to put together a housing psckegae for the site. At the same time that costs have been escalating, the need for housing has grown at least as rapidly. Desiring thin time, the City has reaffirmed its commitment to maintaining a diversity of incomes tt Palo Alto and given itre support to the Housing Corporation's pursuit of a development package for esster Usiat. The housing element of the proposed Comprehensive Plan contalia a policy (#9) which otstes3 'Encourage and participate in lo&. and .i.odsrate-income housing programa fined by other levels of government.' Program 18 under that policy states: 'Asaei st developers mho went to use State and federal housing program' (p. 12). Development of Webster would dement berth of the goals. 1 1 6 b 5/24/76 "The result of the cost vs. need dilemma is the proposal before you tonight. In order to have any chance OF SUCCESSFULLY USING CURRENT PROGRAMS, THE PROJECTED RENTS MUST meet certain guidelines. Working back from that point, the dousing Corporation arrived at its land cost and payment figures. We realize that the City is facing a difficult financial future and must carefully evaluate the use of its funds. We ask you to t:on ider, at the same time, the very grave financial plight of many of Palo Alto's lower income reeidente . The goal of achieving Sons low and caoderste income family housing must remain a high priority concern of the City. The Housing Coxporation is facing a time constraint and must have a decision tonight. We recognize the problems and preaeures you are under, but believe you must endorse the Housing Corporation proposal tonight and without additional referrals. Too much time, energy and money hoe been spent to abandon the project at this time. Thank you." Liz Knies, 1983 Cowper Street, stated that the Palo Alto League of Women Voters wants to express its auppert of policies and actions by the City of Palo Alto toward the goal of maintaining an economic range of housing opportunities and increasing the proportion of housing available for low to moderate income families. In order to have the Palo Alto Housing Corporation in a favorable position to apply for California Housing Finance Agency (CHiFA} funding, the League supports their request to Council to hale a motion_ passed, endorsing in principle, the Corporation's proposal for transfer of the Webster property, and the terms and conditions, outlined in their letter of May 194 1976, sent to Council. It has long been the Palo Alto League of Women Voters' position to encourage the private sector to be involved in the development of low and moderate income housing. The Webster purchase was made with the intent of putting this type of housing on the property. The current proposal seems to be the only available method for implementing the original intent for this site. The League urges Council to vote to take the action requested by the Housing Corporation. Louis Goldsmith, 1462 Edgewood Drive, was present to speak for the Palo Alto Housing Corporation. He hoped the presentation in their letter of May 19 is self-explanatory, but wanted to elaborate on several points contained therein. In particular, there seemed to be some confusion about point #9 on page 2. The Housing Corporation was trying to say that all of the arithmetic was done to determine what the mortgage would be for a project which had 100% mortgage, which a non-profit rorporatiou is allowed to have; and, at the same tine, so -long as the State says the mosey will coat 8 i, that fixes the amount of the mortgage. However, snow people, in both the Housirgg Corporation and in the State Agency, finely believe that the money ought to come in cheaper than 84%. If it doss not, it does not say much for tax-free bonds. Misusing the money doee come in at this rate, the mortgage requested by Housing Corporation will cost leas than the amount shown on page 1 of the application, attached to the May 19 letter, $162,496 is shwa as the mortgage payment; that figure is directly related to the rate of interest. If the intereet should go down, say, to 711%, then Housing Carporastioa would be amble to afford payments an additional moray, and having fixed an amount for the mortgage itself, they could add to that the amount of equity capital of scything like 10% of the mortgage, thereby been able to add back into the project the kinds of amenities and facilities they very such want to provide. The project as presented -to Council is a barsebonsa kind of a proposal; it would be an attractive project but nowhere near se good as tine Hosing Corporation want. to make it nor as goad es they feel they can 165 5/24/76 Zr' ' I "R rte.- V"."T V ... -.w v-7 v - make it. He stressed that the Housing Corporation recognizes that the amount of money they are offering for the land is minimal but feels it is the absolute maximum they can offer in the beginning. This was couched in the systeags whereby the Housing Corporation would pay an extra amount for those units that were going to be rented at full market rats, can the expectation these could probably be rented for about 10% more than the Section 8 units which, themselves, art already over what HUD figures now specify. Councilman Sher, referring to mention of a bare-boues project, asked how would the project -- assuming there is no additional money by a greater mortgage -- compare, for example, to Colorado Park in appearance, amenities, etc.; hs also wondered if the Palo Alto Housing Corporation considers the latter a bare -bones project. Mr. Goldsmith said the Webster project wet an altogether different program. From an architectural point of view, he hoped they could do better, with respect to they ' 'Webster project. Councilmen Sher queried in saying was this even better with the smaller mortgage, assuming 81%. Mr. Goldsmith hoped that would be so but emphasized that at this stage, even though a lot of work has been done in the last three months, the Housing Corporation has still done only the minimum aunt needed to satisfy the California Housing Finance Aiiency. He added that none of this work has cost anything, so far; the work has all been done by cooperation of the architect, contractor, and the landscape architect. The Housing Corporation does not have the project far enough defined to be able to fill in all of the fine structure of exactly how it would look. Councilman Sher surmised that Housing Corporation, in asking Council to approve the project and concepts in principle, was not asking Council to make a commitment, and obviously, whatever is finally drawn up on the plans will go to the Architectural. Review Hoard, with no firm Council commitment if the project is too bare bones. !!r. Goldsmith said Councilaeesa Sher was absolutely right. As said previously, Housing Corporation would again emphasise that the agreement as well as the design and tits information would all pass through the normal City ch needs. Councilman Sher referred to the and assumed that was consistent adopting the P -C on., alloying the decision to retain only two 68 unite which were proposed, with previous Council action in 70 units. He asked what wee behind of the existing houses. Mr. Goldsaith replied that as suspected, +each house rmtainsd takes up swore specs than replacement apartaeants would; their reason for being at 68 is @imply because two hotuss have been retained. In keeping with the general spirit of this P -C sone and the Master Plan which was drawn up, the Housing Corporation has tried to keep a kind of siegleefasmily or mall dwelling appearance; in othsrvords, there ere assys.r more than four units in a building, and these are arranged in such a array that they will fit in very weU with tiee neti.ghborheod. It will not be - Ripply a big block of apert.ats. There are about 19 different buildings, plus the two ezimting homes. Housing Corporation thinks this is desirable f reams - the standpoint of the cba*ec ter of the neighborhood and not X166 3/24/74 in any way making it seem like a huge development. Also, because of the large number of beautiful trees on the site, it is almost impossible to build the typical long structure of multiple apartments. Councilman Sher recalled diet when Council approved the original concept drawings, this included up to 70 units, including seven houses; so et leaet at that time, when these plans were prteented, it wan thought that that kind of a development was feasible and did tie in to the neighboring communities. Now, he believed fir. Goldsmith was soling that by preserving only two of the houses, something better is provided in the way of spread —out multiple unite sad more buildings. Council, of course, will certainly hear from the neighborhood on the new proposal. Mr. Goldsmith assured Councilman Sher that everyone will have full opportunity to see exactly what is proposed. Councilman Sher's reason for bringing up this paint is the fact that the neighborhood did have a look at those other plans; this represents something of a change. He would take Mr. Goldsmith's word and hope the neighbors agree with the Housing Corporation when the new plans are brought in. Mr. Goldsmith believed it would be found that the changes are for the better and rather minimal- and that -the project, as a result of having had a great deal more architectural_ study, in detail, than it had before, will be a very fine development. Councilman Beahrs was about to voice somewhat the sae question. Council did, in majority -- and he did not go with them -- wish to preaerve, as Councilmen Sher said, seven buildings. He wondered why the preservation of even the two the Housing Corporation has in mind. Mr. Goldsmith said these have been looked at very carefully. One of the buildings is quite a large house -- four to five bedrooms -- and s very nice place, though about seventy years old. The other is s structure next to the mortuary on Middlefield Road and has a character which the architect recommended preserving; above any other, partly because it was not in the way of anything. Various plans were worked out, including a plan with three houses, which van thought would sacrifice too many units. The Master Plea allowed three stories; in tbie plan, there to nothing over two stories. Housing Corporation thinks this is a betty arrangement. Councilman Beahrs was in agreement with tbs pro .rvation of the last house mentioned and hoped the older and larger hoaos- cou:d be harmonised with the propeeed deval mant. As ha had it in 'rind, he would not think it a matted of arohitacturel merit. He asked lfr. Goldsmith how confident they ars concerning various operetiag expenses detailed on pegs 2 of the epplicstioci. He wail frankly highly skeptical of the proposed insurance cuts of 52,E and felt that figure was shy by at least 0,094• He -raised the question, cognizant of the fact that the oper*ting espear,ses . arse important to the Housing Corporation's general costs. Mt. Goldsmith agreed these costs are important, indeed, adder Councilman Beahrs may be right on the insurance; although what has been done with Colorado Perk, for example, is to take insurance coverage along with three other projects with ilidpeninsula Coalition. 1 1 6 1' 5/24/76 As a result, a group rate is applicable. At Colorado Park, insurance, in the past, has cost only about $1,400-'$1,500 per year. He conceded he was afraid it was going to be increased to about $3,000; so the figure questioned by Councilman Baahrs say well be low. He pointed out, however, that these are only approximations of the details. In reality, the total expenses -- $57,800 -- are figured cut at $350 per unit, which seems to be a pretty good number for various units the Housing Corporation has looked at. Thus, acme of the inner structure shy is not all that accurate, necessarily. Councilman &sabre noted that on page 3 of the letter of May 19, Housing Corporation proposes to make annual payments of $300 per unsubsidised unit,, beginning four years from the date of closing. He asked if any , projections had been cads as to how many un5 ts, from time to time, eight be unsubsidized, and how much money would accrue to the City annually out of that fact. Mr. Goldsmith explained the way in which the suhaidy contract vill work, as the Housing Corporation understands it --a and he did not know of anybody who actually has such a contract yet -- ix that the contract apeecifies one must sign up for certain specific units, eeezd therefore for csrtain specific numbers. This is for a five-year period, which is then renewable at the option of the owner. In the case of projects that are financed by State Housing Finance Agency, this can be renewable for up to forty years; whereas any other kind of financing provides for a maximum of twenty years. Councilman Feahrs asked if wag the intention to apply the accumulated values to the ultimate pay -out on the entire proposition. Hr. Goldsmith responded by offering the supposition that this turned out to be half market rate and half subsidized -- the Rousing Corporation does not know yet, the State and HUD are uncertain, and only when a project is definitely ready to go will they be able to talk "turkey" on it. In any case, if theta were 34 units that were under contract and 34 that were market rate, Housing Corporation would pay $300 times 34, which is $19,200 per year, to the City each year, commencing after the -fourth year, or four years after the date of closiug. The closing, in this case, would be at the rat dousing Corporation took possession of the land; it would than take about a yeeeex to build the unite, and then it 3s figured there Should be about three years of operation, because the early going is the hard time of getting a - project really rolling. Counci3aae Aehrs *Bawled there would be no restrictions on this payment to the City, and it could be placed in the General, Fund with no requirement it be held against purchase, etc. hr. Goldsmith explained this payment would not have anything to do with the project; this was simply a contract between the per And the developer and the City, in regard to the land. As far as the mortgagee is concerned, there is a figure of $40.000 indicated, which represents the down payment to the City. Regarding annual payments of, say, $10,000, in that case, those would be made to the City, and what the City wanted to do with the fends mould, of course, be up to Council. Councilman Boahrea asked if Housing Corporation would request a credit of this amount against the $100,000 payment the City eight get at the end of the entire term. Ht. Goldsmith responded not at all. These sirs additive. 1168 5/24/16 Councilwoman Witherspoon referred to property tax questions -- if Housing Corporation decides to go, not es a limited partnership but as a not -four -profit coroporation, would they still be liable for property taxes. Mr. Goldsmith responded that Housing Corporation has understood that it makes absolutely no difference who owns the property. The question of whether projects such as Colorado Perk should enjoy a loser tax rate has been brought up; and in some cases, apparently, the Assessor has bean persuaded that the tax rate should be related to the amount of income from the unit, which would be about two-thirds of the normal income. However, in the case of Colorado Park, the tenants pay full taxes, which are about $40 a month per unit. In this case, the Housing Corporation is assuming payment of full taxes, not only on the total mortgage amount, but also on the amount of deemed value of the land, on the basis of an assumed $475,000 value. This was so indicated as the way in which taxes are to be determined. Councilwoman Witherspoon asked what would happen if the actual market cost goes up 91) that taxes go up: Aire Goldsmith conceded that mast ce-: tafnly will happen in time, in which case, the rent will have to go up, There is provision for both fair market rent on subsidized units and, of course, as far as the market rare units are concerned, apparently no one cares, These are not under rant control; only the subsidized units would be under Se,tion 8, HUD's, in effect, rent controls. Councilwoman Witherspoon .eked where the money would be obtained if the taxes goo up ,:u the market units. Mr. Goldsmith stated Housing Corporation would then raise the rent of the market ur;its, and on the other unite, as ue'.1, because the fair market rents can be and are raised to recognize increased costs, such as taxes. Mayor Norton -noted the basic pattern here is for the City to sell, a piece of land worth perhaps $500,000 to the Housing Corporation fer, initially, $40,000, which is something over 90Z discount. The City did this on the Lytton site, which mast people agree wee successful. The way he personally was able to support doing so was because of his impression that the City, in that case, 45 years after the loan vas paid off, would have the option to buy the property back for $1. In conversation with members ers of the Housing Corporation cn this particular ratter, Mayor Morton has tried to reassure himself that the same formula would apply in this case. in reading this Lytton proiect, it states essentially that the City would have the option to boxy buck fifty-one years fro the date of escrow, provided that such sale is approved by the California Housing Finance Agency or its successor, if such approval is required by said agency, Mayor Horton said that he had concern over delegating to some third -party agency the decision as to whether the City would have a valid repurchase option or not. He preferred seeing a simple, straightforward statement that the City will have the option to buy back the property fifty- one yews from the date of close of the escrow period, with the additional language (as taken from Page 4 of the Lytton agreement) abet would go on to say that if the City does not, within one year, exercise that option to reperchase, then certain other things 1 1 6 9 5/24/76 happen. What, he asked Mr. Goldsmith, would the problem, if any, bee if the proviso was simply deleted from the agreement. bb4 Mt. Goldsmith responded he would be very happy to see deletion of everything following the comma; in Item 9, explaining that the only reason the wording was included is because the Lytton agreement has some analogous lar guag2 for HUD. mayor Norton suspected if the Housing Corporation offered the option to the State, the State would take it; his propossl was not to offer it. Mr. Goldsmith said he waderstood weat Mayor Norton was saying and that it was fins with the Housing Corporation. The provision was put in the current agreement only because the language in the Lytton agreement bad given HUD a similar privilege, in case they wanted that privilege. Mayor Norton did not like including the provision, pointing to the fact that it has ea potential for making thst repurchase option totally illusory; in due course, he stated he would move that clause be deleted. Mr, Goldsmith indicated he was in accord with Mayor Norton's feelings on the matter. Councilman Sher, pursuing the samP point, asked why the fifty- one years, as against forty-five, on the Lytton agreement. Hr. Goldsmith cited two reasons, one being the Housing Corporation did not want to make a lease; but if they had been leasing the property, as one would do with Stanford, it would be for fifty- one years, presumably. The other reason is that this fifty-one years starts from the day one takes possession and starts construction. Thus, the fifty -.one years was based on one year of building, and fifty years df operating. The rationale for this is the way this actually happens in limited partnerships is that generally, after about twenty years, the first investors sell out, then there is a second lot of investors; if the _ property has, in effect, no value at the and of the second twenty years when the mortgage is paid out, it makes a very difficult situation for the first group to sell out. Thus, if there are another ten years running at the end of when the mortgage payween.ts have been wade, one can anticipate acme cash flow for one's grandchildren, which makes it somewhat more a rac tive to the people who invest, who are ultimately going to have their tnvssta ett reduced to zero value, because of the City'e buying the property back for $1. It is analogous to a lease deal, in which at the end of the fifty-one years, one also in '.affect has the wholes project turned over to the lessor. Councilman Sher wasted clarification on who awns end who sells the property at the end of twenty years, or forty years, Hs could see the analogy in private ownership, . Goldsmith replied that this is a private ownership. Housing Corporation has mentioned several times that thee intend to form a limited partnership, the reason for this bones they can get extra money, and this is the way Housing Corporatism wilt be able to wand this project to pest ba k in the amenities not new possible. 1170 5/24/74 The Housing Corporation wants to earmark a certain amount of mortgage money from the State. Having earmarked that amount as 100% mortgage, it is believed there will be no difficulty in later adding 10% equity money and increasing the quality of develop- ment, Councilman Sher asked if the subsidized unite last forty years. Mr. Goldsmith explained that Housing Corporation's commitment is to go on renewing the option on -the subsidized units for forty years. Councilman Sher inquired into the government's commitment. Mr. Goldsmith said that the goverment, under State regulations for State financed housing, under Section 8, will allow up to forty years of commitment of Section 8 subsidy funds. Councilman Sher assumed Housing Corporation was expecting a forty - year commitment at the outset, and Mr. Goldsmith was saying that under the fifty-one year deal, which is really fifty, because of the year's construction, the limited partners at the end will rent all as market unite, because as far as is known, there will be no subsidies, there being no commitment beyond forty years. Hr. Goldsmith said there is a commitment on Housing Corporation's part. He referred to page 2 of the proposal, item 8, in which it is agreed to sign up for Section S units for a period of forty years. It is then stated "...and to use buyer's beet efforts to extend the period of rental assistance to low and giodarate income renters under such Federal, State, or local housing assistance pr grams as may be or become available after the expiration of the forty -year period." Therefore, the intent is for the entire fifty-one years to have whatever number possible, up to a maximum of 75%, under some kind of su=bsidy program,, if it exists. If it does not exist, there is no alternative but to rent the units et the market value, whatever that may be. Assuming the Housing Corporation is still alive and still a non-profit agency which serves as the managing partner of the limited partnership, it can rent the units at lower levels by virtue of maintaining the ownersh>rp with a fixed mortgage. Councilman Sher surmised the equity owners of the 10% interest, assuming this should cow to pars, do not realize ttte antra rentals. Mr. Goldsmith could not spell this out in detail at this time, because until the financial people have been brought in, who tyre in the business of forming these limited partnerships, securing investors, etc., to look at the whole proposition -- exactly whet kind of language they will want to put in with regard to the last ten years or with regard to the market rates, he could not say. Housing Corporation' a intention is, to long AS thews are subsidy programs, to take advantage of such programs. Councilman Sher raised the point that when Housing Corporation starts exploring the natter with the equity people, if it were possible to get the desired money on a forty -year basis, and not have the extra ten years where there is no commitment, he would just as soon see this coma back to the City at the end of forty- one years or forty-five years than fifty-one. He noted he would 1 1 7 1 5124/76 not be around to see it but could anticipate now the possibility -- in view of government programs changing 511 of the time --of ending up with these units not in City ownership, but controlled by the Housing Corporation, and all of thane being rented et market rates. Hs did not see the point in this for the lest ten years, if Housing Corporation can somehow get the required funds, without that feature. He hoped this would at least be explored. Mr. Goldsmith responded this was the philosophy the Housing Corporation would undertake to continua during the forty-one to fifty-one year period. Councilman Sher said ba understood that this was an endeavor or possibility, but that Mr. Goldsmith, with his expert ekilla, would not be there to handle the matter. He preferred the agreement be put on a forty -year to forty-five year basis, that being the minims time over the point of the actual commitment from the goverment for these units. He felt this to be desirable and that it merited exploration. Mr. Goldsmith fully agreed with Councilman Sher. Councilman Berwald asked Mr. Goldsmith when the limited partnership would be formed. Mr. Goldsmith responded as soon as the Housing Corporation has assurances that the State has the money and that the project meats all requirements in otherworda, when the State makes a commitment. Bonds have to be sold, and this cannot be done until the Supreme Court rules on the constitutionality of the State's selling bonds for this purpose. It is anticipated this will occur any day now; but then assurances were made last September that this might happen by January. Hopefully, the State will have money in hand within the next sixty days. At that time, if Housing Corporation's project sweets all State require to, the State will be able to advise what the mortgage money will cost. The project can than be finalized, and full efforts will be exerted to get outside investors and the natter can be wrapped up in a legal package. Councilman Berwald asked in what manner the outside investors Mr. Goldsmith said inventors are normally found through group., such as Argonaut Capital in the city, and Capital Realty in Washington, D.C. with whom Housing Coroporation is personally acquainted. The latter group, for exempla, has the investors on Homestead Park, which is ram by nth. Coalition. There are any number of these groups that specialize in finding investors for reel estate ventures of this sort. Councilman Serwald asked to whoa the mortgage money, under Section 8, is available, if the bonds are sold. Hr. Goldsmith asked to correct that, explaining tbs mortgage money asses from the State Housing Finance Agency, as they sell. bonds. Section S has to do with subsidise on the rent payments; that would came to the developer, which in this case is the Palo Alto Housing Corporation but, in reality, by that time, would be the limited partnership, which would probably be called something like "Webster Wood Apartments -a Limited Partnership." ship." 1 1 7 2 5/2;/7b Councilman Berwald asked if this group would include any members of the Palo Alto Housing Corporation. Mr. Goldsmith responded that the Housing Corporation would itself be the managing general partner of the limited partnership and would, in that way, have control. There would probably be two other general partners -- one would be the investment firm thet finds the private investor*, and the other might be some person who has enough assets that he might qualify for IRS exemptions on a partnership. Councilman Unsaid &eked if State funds would be available to the Housing Corporation. 14.r. Goldsmith replied the funds would be available to the owner of this project, which could be the Housing Corporation, or the limited partnere. Councilman Ber-waid aaseed the total capitalization to the Houeirg Corporation would be $2,346,000 - mortgage for the improvements and the value of the land or perhaps even more. He commented the Mayor had mentioned a $500,000 value for the /and. Councilman Berwald said he did not know if the land had been appraised recently and might be worth a goad deal more. Mr. Goldsmith was not cure what Councilman Berwald was asking. Councilman Berwald said he was trying to get at the question of what role the limited partnership would play; is the limited partnership necessary; why; how much do they invest; and what is in it for them. Mr. Goldsmith viewed this as a quite broad subject. Limited partnerships are formed all of the time for reel estate ventures. The only reason there was no limited partnership for Colorado Park was because at that time, the Coalition was Housing Corporation's co-sponsor and was concerned the limited partnership might jeopardize their IRS status, for some reason, although Mt. Goldsmith know* of no reason why that might be so. Typically, Homestead Park is Sunnyvale, with. 220 units, of which Coalition Housing Fund is the general managing partner, has investors who invested about 15% of the mortgage amount for the privilege of having a 10% equity in the project. The real attraction in this ie not the ongoing profit, which happens to be limited to 6% in that case, and usually is, in W1) projects, and is relatively small. The real attraction is of course the depeectation an the project, which flaws mostly to the limited partners. As a result of that fact, some of the funds put in flow to the Housing Corporation. !Mayor Norton suggested this part of the conversation be shortened as not being very freitfu3 to the matter et hand, and there was considerable business ahead this evening. >iee asked Councilman n Remold if he had further queeetione of Mr. Goldsmith. CvAloilsa Bez a1d expressed surprise at Mayor Morton's cos3eento saying he would not ask the questions if they were not f rhitful to his and to the entire subject. Mayor Norton said he was sorry but thought Councilman Berwald realized as well as others that Council. hes )mach loft f,o do tonight. 1. 1 73 5;24/76 Councilman Berwald responded that in that case, he wanted more time to study the agreement, or he would vote "no." Mayor Norton said he was.not trying to force Councilman Berwald to de so but it seemed to him the matter was dragging out somewhat. He asked Councilman 8erweld_ if he had further questions. Councilman Eyerly noted a figure of $13,800 listed under annual -operating expenses for management of collection of rents and salary for project manager. There was a statement under supplementary information indicating it was hoped that the management cost allowance of $8,000 for the management agent would be provided by the Palo Alto Housing Corporation. He asked if this was in the meaner of a fee to Palo Alto Housing Corporation, or was it anticipated to be working on voluntary effort, in this instance. Mk. Goldsmith explained that the managing agent, in projects such as this, fully earns his salary; it is not an eaey job, A number of people have spent 5 great deal of time in the last 21 years, managing Colorado Park, there being no managing agent; Mk. Goldsmith could guarantee the work involved is north $5,000 a year, an amount the agent would charge for hie services. In this case, the Webster project being larger, and in consideration of the progress of time, this is a very rough estimate that the amount might be around $7,000'$8,000 a year. The Housing Corporation had in mind that possibly it might itself to in the business of managing on more than just a volunteer basis and would have staff for this purpose. Councilman Eyerly encouraged Councilman Berwald to proceed with his other questions, Councilman Berwald said he had no further questions to ask at this time because his questions would take a good deal longer. Without prejudice to the Mayor or to the applicant, he thought it very inappropriate for Council to receive, in one meeting, a proposal to deal with a property that is worth well over $500,000 and to deal with it in this fashion. He thought there were a number of queations about the manner in which the property is being used, the amount of moony available, the tern of the mortgage, the benefits to the City if the extra $200,000 is obtained, etc. Mayor Norton suggested Coumci1aan 5enreid go ahead with his q•,isstt a. and stated Sa did not want to appear to obstruct him in the matte. Cnuncilaaxt Berwald said he would not and was aware there WAS other busineas to handle tonight. He said ha did not want tai eebartass the Mayor arty further. Councilwomen Witherspoon ailed for clarification of the fact that wheat Council wee being asked to do tonight was to pass a motion endorsing time proposal in principle, The details of the sale and some of the fines points of the contract and further proceedings would comae back to Coim i later, as she understood it, in approximately on loath. Mr. Go1.deaith said that was so, and as to the hieing, how fast the State o crates- would be g 4eeteaarninimg factor. Until something loose definitive from State is forthcoming, the Palo Alto Noosing Corporation cannot put together ea package, ladling the information of how moth the money wrill. cost. Be would estimate this State input would enable the matter to come back to Council within sixty days. 1174 5/24/76 Counc i 'woman Witherspoon assumed that if Council approved the matter tonight in concept, when conditions and problems down the read can be fully reviewed, Council can still make revisions; Mr. Goldsmith said this was definitely the case. Councilwoman Witherspoon expressed williegness to move that Council accept the p'copoetl in concept with the understanding just mentioned. Mayor Norton asked if this was the kind of motion Mr. Goldsmith seed ed . Mt, Goldsmith felt it might be helpful if the motion were to use the language that was put into the first pertgraaph concerning "Desired Action by the Council" on page 3. MOTION: Councilwoman Witherspoon moved, seconded by Norton, that Council endorse in principle the Housing Corporation's proposal for transfer of the Webster Property under the terms and conditions outlined in the documents, and City Attorney be directed to prepare the agreement in due course, AMENDMENT: Mayor Norton moved, seconded by deahrs, the deletion, on page 3, paragraph 9, of all words following the word "agreement," the provision to now read "9. fifty-one (51) years from the date of close of eacraw under this agreement." Councilman Eyerly asked Mr. Goldsmith if he was under any time constraints, if this matter were to be continued for a week. Mr. Goldsmith explained their problem is that they are expected to get this information in by the end of the month, because it is scheduled to be presented at a meeting early in June, the exact date of which he did not believe has been fixed. Housing Corporation feels under pressure tee submit the proposal and are two weeks beyond their own desired date, this fact only because the State postponed one of their board meetings. He thus felt there was a time pressure. Lawrence Fiehkind, 1103 Woodland Avenue, stated it was his impression that the topic of eiscussion was about the finances of the project, and he thought it was the old story of profit and capitalism.. Me said he wakes ,stoney and enjoys doing so sad thus understand, that point of view. He suggested the people should be heard, end he said to heard no discussion of the architecture and exact specifications of the units, and of people's desire to live in the units. He said he had no objection to the project because he did not understand it. Mayor Norton exxpleined that *proximately a year ago, Council approved a so-called master Plan, developed over a period of time, by a committee of staff, coa$ultaatts, and neighbors. A point beyond this has not been reached, belle the Utist g Corporation want' indication, in principle, Wither - the Council is willing to Commit, at least preliminarily, support-, so that the Housing Corporaetioh can go to the State with figures that can be put into the package. Ht. Fishkind asked if there vss a brochure or if anybody know what the places would look lie. 1175 5/24/x`6 Mayor Norton informed Mr. Fishkin4 that Ur. Goldsmith had much written background inform&tion'w€th respect to the site. After getting Council's go --ahead tonight, which is neither final nor irrevocable, the Housing Corporation will get commitment from the State, which, hopefully, would be a meaningful commitment, then would proceed through architects and other people involved. In due course, the_plans would come before the Council, and Council and all interested people will have opportunity to view the plans. Until that point, Council is not obligated to proceed. Mr. Fishkind said such a process sounded excellent to him, He said that until he had this explanation, he had a feeling there wee a kind of filibuster occurring and feared there would be some transaction made very soon. He asked if that was true. Mayor Norton responded if Iir. Fishkind had not followed this matter from month to month, it may have looked that way to him this evening. However, he hastened to add that Council will have opportunity to review this on many occasions before formally committing to the project. The amendment was approved on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay absent. AMENDMENT: Councilman Sher moved, seconded by Mehra, to request the Houaing Corporation to explore the feasibility of reducing the fifty-one year period referred to in the document to forty- one years, or some lesser period than fifty-one yearn. The amendment was approved on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay absent. The main motion, es amended, was approved on the following vote: AYES; Buhr*, Eyerly, Norton, Sher, Witherspoon NOES: 3erwaid ABSENT; Carey, Clay Comstock POLICY AND PROCEDURES cotter= ADULT-- --itlefffrille Returning to this utter, under discussion prior to the recast of the emoting, Mayor Norton said Council west at that time, presumably towards the end of tents to the first of three ordinances. Councilwoman Witherspoon remarked Council had been talking about use permits, and her question would relate to use permits, as well as to licenses. She asked W. Booth if the ordinance provides for penalties in the case of operatin without a use permit. Wes there a fine schedule, for instance. ora process by which somebody could be jailed for operating sn buainsss without a use permit. Mt. Booth responded that violation of any provision of the Municipal Code is punishable by six months in jail, 6504 fins, or both. 1176 5/24/76 Councilwoman Witherspoon asked what process does City have to instigate to inflict the penalties on violators. {r. Booth replied this involves filing a complaint in the Municipal Court, and if the defendant pleads not guilty, he or she is entitled to a jury trial. founcilwot:en Witherspoon asked if City was in the process of any such cases at this point. She raised this question because ehe understood there are some busineeaes operating now without a use permit. Mu. Booth's recollection is that the City does not have any criminal cases pending for that violation at present; however, there are a number of injunction suits pending and in which contempt proceedings will be filed shortly, Mayor Norton asked Councilmembers if there were any other questions for :staff at this time, explaining before Council returned to u.otion€, he would like to call on two more people from the audience. Councilman Eyerly asked Mr, Booth if a severance clause in an ordinance might be usable as protection against having an ordinance thrown out in case of legal implications. Mr. Booth responded there already is a severance clause in the Municipal Code, which is applicable tc any such ordinance. Councilman Eyerly thought that presumably, if the City had a lawsuit on certain partu of ;he ordinance, those certain parts would be under litigation no would not remove the entire ordinance. Mr. Bcoth said this was not necessarily so; in each case, th,- court has to determine whether or not the invalid portions make the rest of the ordinance unusable, in which case, the court would strike the whole ordinance down, But the clause will protect the ordinance to the extent it is possible to do so. Donna Gerry apologized to Council for not arriving on time earlier, indicating she would have completed a request to :peek earlier. She vented to clarify the point of vier from rich •he was coaling, because a member of the audience had spoken to her and thought she was from one of the places on El Camino, when Me. Gerry had identified herself as being from the Masmage Center, The Massage Center, she continued, inn a straight massage business, Oministering masse*e to releac people who are tense or to relieve soreness to generally help someone feel healthier and better, even if they are feeling all right when they come in for a massage. Ths Massage Center gives classes to groups of people for their private use, including family members coming in to message each other within their own homes, etc. The Center is not strictly adult -oriented. Parents do bring their children in for message. MX. Gerry expressed continuing concern ogee the fact there were many new approaches to solving the problem of people's irritation over commercial massage establishments, bringing up new its end new laws. She saw the problem and •toted *be would not twat to live near the commercial massage establishments, a:proteins complete understanding of people's being offended by these places end wanting restrictive measures applied against having these places in Palo Alta. However, it seemed to her that the sexual moms,, business is surfacing at the present time through massage --- as place where it Le abbe to 1 1 7' 7 S/24/76 wake the money -- and that in a few years, it may be in some entirely different field; and all of these laws, which are being considered and passed at this time, will still be on the bcoks and will still be affecting legitimate massage businesses. She wanted to point out that fact and have Council consider lays affecting massage that will be reasonable and not restrictive in some ways where legitimate operators of massage will have to deal with numerous bits and pieces of laws on the books. She felt there are laws which can be effectively used now, as far as State prostitution laws, the red light abatement laws, etc. It has been pointed out that it costs a great deal of money through court procedures; but Me. Gerry felt that any lave passed now will likewise cost a great deal of money through court procedures, and that there would not be much savings in trying to cone up with some new way to deal with the problem. Ms. Gerry felt that very enthusiastic prosecution, ender existing laws, could discourage new operators from starting the fast -buck businesses and could continue to diminish the numbers of such places in Palo Alto. Ms. Gerry expressed concern about code proviaiona, as far as her business is concerned. She felt that eery few people, especially if they had any idea of what the Massage Center is doing, are concerned over the Massage Center; yet, she continued, they are locates in a residential area, and they like their location where it is. She could see that the Massage Center would be forced to move and felt there was no reason for it. Since somebody has indicated a view that the closing time should be 10:00 p.i ., Ms. Gerry wanted to repeat the fact that Massage Center classes do extend to 10:30 p.m., approximately, and 11:00 p.a+, would be a much more favorable closing hour for the Center. Winston Boone, 164 Creekside Drive, stated that the people of Palo Alto do not want massage parlors and want them out of Palo Alto. He said that unfortunately, many people have been asleep, admitting to being one of those people. He travels daily, back and forth, from Greenmeadov to Varian MO , he sxietence of that appalling .trip, under discussion, on El Camino, has recently come upon him. He sensed the Council is very cautious and careful and, in some way, needs to feel some support. He vented to assure Council that there are a lot of people who are just beginning to wake up who will give Council support in any ray needed, in terns of more people being present at Council meetings and other necessary measures to take the Malian _ender discussion this evening. He.strongly suggested the citizens can provide support to help Council get rid of these establishments. Councilman Sher moved, secoedad by Norton, that in connection with the matter of the necessity of new use permits on the transfer of ownership of adult -oriented enterprises and any other proposed new requirements regaaeding use permits, Council should request that Planning Commission consider whether similar change is desirable or necessary with respect to use permits for other activities. AMINDKENT RESTATED; Councilman Sher moved, seconded by Morten, that Council refer to the Planning Commission those Committee recommendations with the amendmeets that relet* to Title 18 zoning end also request that the Planning Cession consider whether similar change is desirable or necessary for other activities. Meyer Norton indi.cetsd the last part of Councilmen Sher's inquiry to Planning Commission sight take some time; he wondered if Cournci1 1178 %/24/76 would have to await Planning Comzniesio9's input on the limited issue of the message business, when the Planning Commission might have to study the entire question ae a more leisurely pace, unless he misunderstood the way in which the matter might be handled by the Commission. Mayor Norton Asked Mrs. Steinberg if she understood the last part cif Councilman Sher's motion, where he requested Planning Commission's study of the broader question of use permits, as they might relate to other matters. Mrs. Anne Steinberg, Chairwoman of the Planning Commission, responded that she understood the motion but rather wondered whether this night not be something that the Planning Commission would be doing in the course of revision of the zoning ordinance, since the Commission would be looking at all uses permitted in the zones1 This kind of comparison, she thought, would come up At that time. Councilman Sher disc not think the motion related to particular uses in particular zones. What these amendments suggested was that with respect to one kind of activity, where it is being suggested that conditional use permits be required, a new procedure be instituted regarding this one kind of activity; namely: if the business is transferred, the use permit does not go with it but must be renewed. There was as least one other point that does not generally apply to use permits. He was ;limply, in the interests of uniform treatment, if necessaar�yo trying to come up with an ordinance and use permit requirement, the validity of which will be upheld, and thought the matter ought to be reviewed in that context. He had no intention of holding it up; and if Planning Commission could review the specific proposal in regard to use permits for adult -oriented businesses, that would be fine. The one matter could go forward, and the Commission could retain the other matter. He suspected one cannot avoid the question of new procedures, with respect to a use permit for one kin of activity, but would leave that up to the Planning Commission. He repeated there vas no intention on his part to hold up the action of the Planning Commission on use permits for adult -oriented businesses and, indeed, encouraged the Commission to move forward as quickly as possible. The amendment was approved on unanimous vote, Councilmen Carey and Comstock, and Vice Mayor Clay absent. Councilman Berwald stated, as a point of personal privilege, before commenting to this matter, that he would like to. go back to the last item on the agenda; lest some leave Council chambers and' comment that Councilmen Berwald and Mayor N'ortou_ had a big.argument tonight, he assured everyone he recognized 'the Mayor's intent to go on with che program an the agenda, because Council doss have thin present Item. He eaid he was perfectly happy to have voted "nc" on the Webster matter, and thought it VAIO recognised why. He said he would take the time between now and the next vote to find out. the ?wasters and hoped he would be able to vote in favor of the matter. He did not want to leave the impression with anyone that there was any kind of Lasting friction on that point. Mayor t eton told Councilman Berwald hoe felt the same way. Councilkae Berwald did apt know whether the matter before Council should go to the Planning Commission or not. There was tba question of what is a recognised scteool of tstaafsag., He wondered if it involve* a toning matter, or * Planning Commission matter, to make some judge*nt about what is A valid nursery school, what 1 179 5/24/76 is a church, etc. Perhaps this was a question which should be explored. There was n related question of the young lady who just spoke -- are there any exceptions, so that certain types of establishments can be identified which are not, in essence, commercial massage parlors but are private groups of people where there is no profit made. He was not suggesting exceptions be made but wondered if there was merit in sending that type of question to the Planning Commission or merit in discussing in Council such matters. He knew the issue of recognized schools of massage versus massage parlors that set themselves up as schools is one of concern to now residents. He. Booth said he would take a stab at answering Councilman Berwaid's question. As is known, nobody applies for a massage parlor license and indicates they ars going to operate illegally; thus measuring whether cr not somebody is running a legitimate =seeps parlor, as distinguished from an illegitimate one, is difficult and is usually determined after the fact. In general, staff does not believe that the requirements of any of the ordinances -- while they are somewhat lengthy and require some bcolckeeping and other reaponsibilites and payment of fees -- are particularly onerous to legitimately -run businesses, Illegally --run businesses, however, ought to have a good deal of trouble in complying on a regular basis, and he thought that was perhaps the intent. Thus, it was difficult to draw the types of separations Councilman Berwald was referring to. He also pointed out that the term "recognized school of massage" is cne which staff hopes the State will come up with better atanderds on. There is legislation wending its very slow way through the State house in Sacramento, and it is hoped that at some point, schools of massage will be treated in the same fashion us other vocational schools are treated, To date, that is only true, if it is true at all, on a very limited basis; and thus there is easy opportunity for certain persons to evade the ordinance by calling themselves schools of massage. Councilman Beers said that Mr. Booth anticipated his question, in part, and answered it. It was his view that with all of the wisdom this community, this Council, and staff has developed after all of the hearings, a resolution should ultimately be developed to their good friends in Sacramento, telling them to straighten the whole State out, which was rosily needed. Councilman Eysrly assumed that notice is Pent to property owners within 250 feet of were the use permit is being requested and asked if there wee posting or any other vsy for renters to be notified of the proposed use plait. Mr. Booth said notices are sailed by the City to both -the owner and any known occupants et the present time. Speaking on behalf of the Zoning Administrator, who was not present at tonight' e - meting, Mr. Booth said that the pestieg requirement, which used to be in the ordinands, was taken out by the Council at the rsgeuet of the department, because staff ¢Quad that the worth of the requirement was not early enough to justify the very large expense of printing and positing the notices►, then checking to make sure the notices were still in place, there being es tendeety for them to get blown off by the wind or torn off by v sdals. The -wiled notice was used as a subsrtitute, and to far, staff has bused no Gemplaints. The motion to refer the first ordinance, as emended, to the Planning Commission was approved on umenimoue vote, Councilman Carey and Comstock aaad Vies Mayor Clay abosat. 1160 5/24/76 Mayor Norton stated the second ordinance, regarding closing hours and certain modifications in the license and permit application procedures, was before the Council for first reading, as he understood it. Mr. Booth confirmed that this and the next ordinance, regarding permit$ for certain card room employees, were both before Council for first readings. Mayor Norton assumed that neither of these two ordinances required referral to the Planning Commission. Councilman Eyerly, in looking over the proposed ordinance for 1974, noticed there was quits a discrepancy in fees. As a member of the Finance and Public Works Committee, he remarked the Committee has looked at fees throughout the City and has tried to raise these to conform with those in neighboring communities and, at the same time, to cover staff costa. Me was perturbed that fees have been cut back on the message parlor ordinance and could not tell from the Policy and Procedures Committee minutes whether or not the City is subsidizing massage parlors in the writing of the permits, etc., which are within the existing ordinance, He wanted to see the City charge fees that are not representative of a penalty to the massage parlor groups, keeping in mind the fact that this would be harmful to the legal cpe^:aticns; but he felt the fees established should be high enough to pay the City`s costs. Chief Zurchsr stated staff originally proposed $150 for the massage establishment license, and $50 for massage technician permits. Those figures were based on estimated costa for they investigative and administrative work in issuing the permits. If further information was desired, Chief Zurchcr believed staff could provide data on how much staff time is involved in conducting each investigation. Councilman; Eyerly stated he would move for change in the fees, because Chief Zurcher reported he could substantiate the original figures. Councilman Eyerly said he would try to pick up all of the information in the rather lengthy original ordinance. AMENDKENT: Councilman Eyerly moved, seconded by Baehr', the following changes in massage establishment fees: Section 4.54.04, application fee shall be $150; Section 4.54.070, application fee shell be $50 and add that any renewal shell cost $10; Section 4.54.14, change in business location fee shall be $100; Section 4.54.150, fee for sale or transfer of raaessga establishment interests shall be $25, and fee for renewal of usage establishment permits shall be $50. Councilwomen Witherspoon asks4 what the comparison was as related to a business such -see one with a liquor license, or a restaurant, as was mentioned by Mars. Selig, insofar as chsrgas to ouch buainss..s moving, tranaferr:ag licensees, etc. 'Sir. Booth's recollection fits that those licenses end fames would bs somewhat higher, adding that, of course, a liquor license fee has some f ess payable to the State. He did not know what the State foam were but believed these run into several hundred dollars. Cann cilnymen Witherspoon asked Chief Zurcbar if he felt t.be City could justify the proposed increases, insofar as expenses involveed 11.1 5/24/76 on the part of the City. She did not want Council's action to in any way look punitive. Chief Zurcher believed the City could justify the costa, based on staff time it takes to handle the investigation. Councilwoman Witherspoon wondered if such few, could be set with the understanding that if costs cf investigations decrease, a recommeedation could perhaps be made that the fees be lowered. Chief Zurcher responded that such a chants mould take another Council action. Councilwoman Witherspoon responded she was aware of that fact but wanted the Council minutes to reflect Council's action was taken for reasons of recovering City's coots and not as a punitive measure The amendment was approved on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay absent. Councilman Eyerly stated that on the original suggestion relating to required massage technician permits, if the applicant has, within three years preceding application, been convicted of a crime, there is a three-year period to be investigated. The original suggestion was for a five-year period. ;his suggestion also applies to the massage technician trainee, Before moving a change to five years, he wondered if Chief Zurcher saw any problems thereto; i.e., would it provide too much time for the permit fees just approved. Additionally, he wondered if there was any change on Chief Zurcher's part on the original recommendation iu 1974. Chief Zurcher saw no problem, stating it would simply lengthen the time in which ;staff would review the applicant's background. AMENDMENT: Councilman Eyerly moved, seconded by Beahrs, a change from three-year periods to five-year periods in Sections 4.54.060 and 4.54.090. Mayor Norton sued up the change as being an increase from three years to five, with respect to the time the record is reviewed backwards before a license is granted or renewed. The ant was approved ou unanimous vvota, Coencileeu Carey and Comstock and Vice Mayor Clay absent. Councilman Eyerly noticed the original proposal recommended there be a record of all treatments with mass and addresses included, such to be kept by the massage parlor establishment. He understands that similar requirements are *peeped on doctors, etc., and he would think that legitimate massage parlors mould not take offense at such a requirement by the City and, in turn, it would be helpful to the Police Departaoat in enforcing the ordinances. Chief Zurcher said there may be different feelings now, basal oa what happened with respect to the San Diego ordinance. Mr. Booth may wish to comment on the matter, which Chief Zurcher thought was part of their ordinas$ce, and the legality of such record keeping mee be questionable. It appears, at any rate, that th osm who aster au establishment for a massage might not give their true 1 g 2 5/24/76 names, anyway, so it might be some wasted effort. Councilman Eyerly said he would forget that request, in view of the Chief's comments. There was another matter, as per City Attorney's report of April 15, 1976, on page 3, concerniri the outcall prohibition and such a provision in the 'ordinance. From his reading of the minutes of the Policy and Procedures Committee meeting, Councilman Eyerly knouts the feeling that this is a "can of worms" and might not be usable; on the other handy he felt such a provision could be legally defended and might limit some of the outeal' activity, and useful if staff did need to fall back on the provision. AMENDMENT: Councilman Eyerly saved, seconded by Witherspoon, that it shalt be unlawful for any person to act as a massage technician or as a massage technician trainee in any place other than a licensed massage establishment, except because of a physical disability, illness, or injury, verified by a licensed physician, chiropractor, registered nurse, etc. If an individual cannot travel to a aaeaage establishment, the technician may visit the customer at a place designated by the customer. Councilwoman Witherspoon said there was discussion of this issue ir, Policy and Procedures Committee, and there was some feeling that there might be too much paperwork There was also concern that there area number of masseuses who have private practices, in the manner of a practical nurse, where asst of them' recommendations are from doctors to attend patients in their homes. It was a general concern to Couacilwoman Witherspoon that Council not be interfering with this kind of business, Presumably, under the City's ordinance, such masseuses would be required to be licensed. She felt Council should have input from Chief Zurcher on his views on how this system would work and whether he feels it is a necessary adjunct to the ordinance. Chief Zurcher stated staff is in favor of the prohibition of outcalls for several reasons. One: it would reduce the opportunity for criminal activities for those w=oo engage in outcalle; two: it would reduce the vulnerability of those people who respond, from time to time, to the requests for those who want a massage. 8e viewed the paperwork involved as being something the Department could handle. Their investigative techniques would not, of necessiry, main it necessary to check these records as, for instance, a prescription, but other methods would be used to find out who it in the outcall massage business. Councilman Sher asked if there were ordinances in other cities that prohibit outca11s, to air. Booth's knowledge. Mr. Booth said he did not know, offhand, but could check The San Diego ordinance prohibited outcall eeltogethetr, and the Superior Court held that the ordinance was invalid. However, City Attorney's office believes that with addition of the sections for the type of madicel situation here described, prescriptions from M.D.'s, etc., the City can probably make this ordinance stead up. But be would note that not voiy is there an sesy opportunity for the types of things the Chief pointed out to occur, but there hem been et least one rereent inseams in which the masseuse, herself, hos been a victim of a degsneratea. - Councilaan _Sheer assumed the intent of Councilman Eserly's motioe is not to protect the people in the business but rather, in same lla3 5/24/76 way, to diminish the impact of the business on the neighborhood. He saw some problem, and noted the Committee reviewed, at some length, the fact it has been quite traditional for legitimate message technicians to call on people in their homes. The effect of this motion is that before this can happen, a doctor's certificate is required for each cell, so that the person would have to see the doctor and obtain some kind of written certificate, to be turned over to the massage technician, and the massage technician must retain the certificate. Councilman Sher sew problems unless there ie going to be ecis significant affect on dis4aishing the impact of there establishments on the neighborhood. He also wondered if the benefits would outweigh the coats. Councilman Eyerly responded that it cuts both ways. The intention of the motion is to protect the massage technicians as well as to try to cut back on the nuriber of outealle. The Chief's remarks indicate he does not seem to have a concern about the paperwork. As City Attorney's office suggested, there would have to be same written verification given to the technician, when that person arrives to perform the massage. Councilman Eyerly felt this would be another provision which might help staff in eradicating problems, as well as protecting the technician. Councilwoman Witherspoon pointed out to Councilman Sber that at Policy and Procedures Committee, a number of health care officials not just doctors -- were dicc.issed as being authorized to write out a prescription, verification, etc. Although ;.t seems very clumsy, Councilman Witherspoon wee impressed by the fact that the legitimate massage canters, at adverse the technician who works out of her own home, had almost no outcall requests; whereas Chief Zurcher mentioned in Committee that the massage parlors as adverse massage centers had a great deal of their business in outcalla. This was another idea in getting at the problem but she agreed it is complex. The amendment failed on the following vote: AYES: Beaters, Eyerly, Witherspoon NOES: Berwald, Norton, Sher ABSENT:. Carey, Clay, Comstock Councilman berwal.d felt Council rbould have a report from staff on the last motion for consideration at a future time. AMENDMENT: Councilman Servald moored, seconded by Eyerly, to refer the matter of outcaile to staff for a report as to hots the matter can be handled without excessive regulation, Mayor Dorton said that if this motion passes, he would like to include a eimpler say of handling the problem of the parson who presumably has a legitimate requirement for outcall smssags whereby that person can avoid hiving to go to the doctor every three days, just to gat a *lip of pepex that will entitle his to a massage, which seemed ridiculous If that point were dealt with, Mayor Barton indicated he night be persuaded to vie the situation differently. Councilman Bsrwald wee in accord withi Hkyor Norton's request. 1184 S/24/76 The amendment was approved on the following vote: AYES: Berwa!d, Eyerly, Norton, Witherspoon NOES: Beaahra, Sher ABSENT: Carey, Clay. Comstock The ordinance as amended was approved for first reading on unanimoue vote, Councilmen Carey and Comstock and Vice Mayor Clay absent. Mayor Norton stated that the ordinance relating to card rooms, pool rooms, end bowling alleys was before Council.. Councilman Berwald cemented there were some amendments made to the previous ordinances, requiring permits, licenses, transfers, etc. He thought staff should came back with any kinds of amendments that would make provisions uniform, or equitable, in any event, if there are any provisions that would relate to the two ordinances commonly. Mayor Norton asked if staff had understanding of this request or if a motion was required. His interpretation of Council,» -an iserwald" s comments was that to the extent Council, made changes in the previous two ordinances tonight that would seem inconsistent, etaff ought perhaps to come back, on second reading of the ordinances, with any recommendations that mould make these consistent with what has been done in other areas. Staff indicated their understanding and acknowledged the fact that no motion to carry out these directions was required. The ordinance was approved for first reading on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay absent. Councilman Berwald felt the need for Council to knobs siuch more precisely then known presently some of problems that the Chief of Police is most aware cf, such ea problems of eignifica.nt crime and offenses in Palo alto which, in his opinion, are related to these types of establishment@ under discussion. He wanted to gee au enumeration, including rimes of establishments and offenses that have bean related to those particular establishments. Zf any of this report needs to be confidential, Councilman Berwald assumed it would be kept so but thought Co mcil ebould have this kind of information, MOTION: Councilman P.erweld moved, seconded by EyerLy, that City Manager prepare, or cause to have prepared, a ,sport on significant crises and of fsisa in Palo Alto which ars related to the types of establishments that have been under discussion at Council meeting cu May 24, 1976; stud that if such report conta the information for the Council that should be of a confidential nature where litigation aright be imminent, that the information be reported to Council in Enceeutive Session. Mayor Morton *eked Chief Zurcher if he had any questions about the motion, since he would probably be retaponsible for preparing the report. Chief Zurebar indicated his understanding of the motion. 1 1 e S 5/24/16 Councilwoman.,Waitherspoon asked Councilman Berwald if he would include in his motion the possibility of having Chief Zurcher report on expenditures to date related to this matter, as far as the Police Department budget is conterned. Councilman Berwald thought that was a very helpful suggestion. Councilman Beshrs asked if he understood this to be a matter of discussion in Executive Session, adding he did not see how this was possible. Mayor Norton commented the report itself may be confidential in certain aspects, but a discussion of tba report would not be done in Executive Session. Councilman Dealers remarked it was necessary to wash dirty linen in public thews days. Councilman Berwald ;said he wanted as much of the report as possible to be public information; but if there were some legal actions against certain a trbliehr ents, subject to Mr. Booth's interpretation of the Brown Act, he guessed Ccuscii could discuss these matters in Executive Session. Mr, Booth said this was correct, and the Chief would not want to put into a report any public discussion of ongoing investigato:y action. MOTION RESTATED: Councilman Berwald moved, seconded by Eyerly, that staff be directed to prepare a report listing establishments and particular offenses which will include costs and the report, as much as possible, be public information. The motion was approved on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay abet, 1JEB? l'4 W.' VE 1T' 12 FORWARDON T MOTION; Mayor Norton caged, secs ded. b* .E'erly, that Item 12 be wed f orwsrd on the agenda. The motion was approved on unanimous vote, Councilmen Carey and Coves cock and Vice 1luyoz Clay abet. Ampstor CI,ii DI p_? Councilwoman Witherspoon a revision of a flaw cart from item Council originally referred (amendments to the P--7 sone),, with District in facilitating Leasing of weep aagsndixed tonight because of City's invol Council mould have to start none, if they Irish to *treble the School District to proceed to lease by mast fall. tared that as her memorandum and a seed Nir. Knox of Planting indicate, the to Policy and Procedures Committee the ides of accommodating School 1us school sites, was , lengthy process. to arprove this, the school sites 1 1 6 b 3/24/76 Naphtali Knox, Director of Planning and Community Environment, reviewed briefly the current status. The initial idea of the P -F amendment was to make the use permit procedure in the P -F zone similar to that in the R-1 zone. Behind this was the idea of shortening the time for the School District to lease, not to sell, closed schools by obtaining a use permit in the P -F zone. The advantages to the community were that income flow would derive 'sore quickly to the School District, that there would be less chance of vandalism to the schools, and that this would minimize the disruption of neighborhoods that had already been traumatized by the loss of their neighborhood schools through a process thst would make it easier to ,less buildings in place rather than to rezone for sale. The importance of the timing is indicated on the flow chart distributed to Caunci1membera, and the chart is siso projected on the screen in Council chambers. There have been some changes in the ordinance since it was first drafted. This was first patterned with the change to the P -F after the R-1 zone to bring the use permit procedure almost entirely into conformity with the use permit procedure in the R-1 zone, except it was wedded in that community centers could also be provided under usa permit procedures in the P -F zone. The Planning C:mniesion, in their review of this matter, on referral by the Council, deleted the possibility of churches .srd religious institutions, which are allowed in R-1 distri_ts but ate not new being recommended for P -P zone use permits. the Planning Commission also required that the underlying land remain In ownership of a public body; and that has been incorporated in the ordinance which is attached to the May 6, 1976 staff nap: rt t M.r. Knox had one further change, not in the ordinance, to recommend, a matter that came up in the School Liaison meeting this afternoon; and that was based on the Sch:o1 District tailoring its initial leases for one year, with an optlen to renew it seems there was some way needed for the City to retain control over these permit procedures end protect the neighborhood from unforeseen problems, a matter he believed Coun it ae Eyerly had brought up, and those present began to talk about the possibility of one-year use pertain+ if the School District was goin; to be talking about one-year leases, Mr. Steele of the Szhoel ➢ietrict Board thought that a one-year use permit every year would be an onerous scatter to the applicant. The notion wee finally arrived at that the use 'permit might be granted for a period that would not be longer than the lease. lfr. Knox therefore asked the City Attorney this evening for some suggested wording, and thin is a possible clause for addition as a section to this ordinance "Every use permit granted hereunder shall terminate upon the expiration or other termination of the base applicable thereto." Mayor Norton asked Mr. Knox what kind of action is recommended that Counci: take to implemeut this process. Counci1voman Witherspoon **id the action she would move would be the revised ordinance as recommended to Council after review by the Planning Commission, plus the additional language just read to Council by Mr, Knox. Mayor Morton *eked Mr. Booth If he had determined whether s motion to recall this matter from the Policy and Procedures Committee should be included. 1 1 8 1 5/24/76 Councilwoman Witherspoon said she would preface her motion by saying that Council recall the matter from the Policy and Procedures Committee and consider the wetter tonight; and that Council adopt the ordinance with the recommended amendments made by the Planning Commission, adding the lenguage that the City School Liaison Com- mittee recommended today, as repeated just now by Mr. Knox. Mayor Norton asked Councilwoman Witherspoon if ehe did not dean to say the School District rather than the Planning Cowiisseion. Councilwoman Witherspoon :laid there are two amendments to the original ordinance -- several made by the Planning Commission as referenced by Mr. Knox, and the one he just read, which is the recommendation of the City School Liaison Committee that met this afternoon. Mayor Norton asked if the City School Liaison Committee's suggestion would have to go to the Planning Commission. Mr. Knox did not believe so; it seemed to hire this was 8 modification, but he would defer to the Chairman of the Planning Commission. Mrs, Steinberg responded that based upon discussions, she felt this would be acceptable because the Commission was concerned that the property rein with the School District, and they did rot want to approve this ordinance if the property was geoid and the School District no longer owned it. She felt this ordinance was very much in line with that discussion. Mayor Norton wanted to assure himself that Planning Commission would not feel left out of the matter in any way. Mrs. Steinberg said she hoped not. Mr. Knox added that the appropriate place for the additional wording which he read would be under Seecti:an 2 of the Ordinance (o). Mayor Norton assumed this would be Acceptable to Councilwoman Witherspoon. Councilwoman Witherspoon said this wee fully acceptable. She advised Councilsesbers that Bob Lyman fros the School District was avaiiiable to answer questions. Mayor Norton *eked Dr. Lyman if be had questions or problem on what Council was planning to do, and Dr. Lyman responded he did not MOTION: Councilwoman Witherspoon moved, seconded by By.rly, that Council recall the matter from the Policy and Procedure* Committee and consider the sitter tonight end that tha ordinance be adopted as recommended by the Planning eel:mission; and that every use permit granted hereunder shall terminate upon the expiration or other termination of the lease applicable thereto. ORDINANCE OP THE COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER 18.32 OF TEE PALO ALTO MUNICIPAL CODE RELATING TO USES PSEXIT1 D IN P -F ZONE DISTRICTS 11 es 5/24/76 Councilman 8er3aid raised the question of churches in the report now having been taken out of the ordinance, which bothered hiss. If the language is used indicating 'privately eponeoeed community canters, which shall mean a place, structure, area, or other facility used for and providing social and/or recreational progras a generally open to the public deeigned to accommodate and serve the significant ee.tione of the community;" why were churches, or places of worship, removed. Mrs. Steinberg responded that the reasoning behind this aactioft was that churches generate a great deal of traffic, and there have been several occasions when the permit procedure for churches has COMM to the Plaa on ng Commission based mainly on complaints about the amount of traffic. That was the only reason for this elimination. Councilman bervald argued that some churches generate traffic end some do not. Mra. Steinberg concurred. Councilman Berweld argued that some community centers generate traffic; others do not. The Y.4.C.A., he pointed out, generates a tremendous amount of traffic, seven days a week. No one seems to care about that fact, and he could not see why churches would be so invidiously compared. There might be aowe way around this fact, but it seemed to him to be a glaring exception. Mt. Knox said it should be tememberea that churches and religious institutions are allowed as a natter of conditional use permit in all of the R-1 and other residential zones in the city so it is not an if these are being excluded. Community centers, on the ocher hand, are not now allowed by use permit procedure. The nay in which tie language in this amendment developed is that it stated from studies made during the School District reorganisation in the scho le closing proceea late last year in which studies iedicatsd what kind of uses the closed school sites could be put to. Ameng the uses were community centers. In fact, there ways specific mention of the Y.M.C.A. and of the South Peninsula Josh Community Center; ado that the possibility of the School District being able to lease to those entities, rather than goiter to eels and some total' reuse of the site, wee -what wee in mind. Addieie alit', the Zoning Administrator, is conducting the public hearing and lietee.ing to the testimony, would have to decide each cans on its merit. Ha may very well deny a me permit, based on traffic cone1deeation s, or so condition the greeting of the permit that traffic would have to be kept eta certain level, or perking be provided in a certain way, etc. Mr. Knox said it should bis recognized that the use permit procedure !tine worked ter many, many years and has, in his view, worked vary well; and wherever there is an sggrieved citti;eeaawrp pr an asggrievd applicant, the appeal process is open to the Planning Commission eaad the City COuacil. Councilman Berwald &shod what would happen if the word "epiritual" wee put amore the word "social." Alternatively, he ash asst the words "fraternal, racial, and!or rscratationel programs." W. Knox did not think that addition mould be detrimental to _the - t piri,t: of the ordinance, as lone as it 3a additive and not further restrictive. 11$! 3/24/7$ AMENDMENT: Councilman Berwald moved, seconded by Baehrs, that the words "spiritual, fraternal," be placed in front of the ward "social" in Section 2(b)(3). Mrs. Steinberg said she would have sons difficulty in defining "spiritual." However, she believed she understood Councilman Berwald' a meaning. Councilman Berwald said it is in the dictionary along with fraternal, social, and recrea tional . Mts. Steinberg said there were a number of meanings, and she would be more comfortable if this were defined by the City Attorney. Mx. Knox explained the City Attorney's guidance was needed on this point, because the conversation was getting to matters relating to churches end schools, and 't !e vas not sure of the possibilities. He repeated the question for benefit of Mr. Booth, who was out of chambers when it was raised, noting that Councilman Berwald' e thought is that perhaps there is discrimination in removing the words "churches and religious institutions" from uses allowed under the use permit in the ?--F zone. After hearing his own explanation, Councilman Berwald has proposed in subsection (3)(b), at the bottom of page 1, that before the words "social and/or recreational programs" there be added the words "spiritual, fraternal)" followed by "social and/or recreational programs." Mr. Knox explained his initial reaction is that there is no problem with the addition, however, Mrs. Steinberg feels there is a problem with the word "spiritual" and thus the word "religious" is being recommended as a substitute. Mr. Knox wondered if there was sup problem, given the fact that the underlying land remains being owned by a public entity, with adding the words such as suggested by Councilman Berwald. Mr. Booth did not believe this addition would cause any particular problem. He said he would prefer the term "religious" to "spiritual" adding they could split a lot of hairs about it. The word "spirituel" could connote sone thins that eight not be ainticipated, such as card reading, tarot leaves, etc. Councilman Berwald commented ented the reason he used the word "spiritual" is because the word "ra►ltgious" is used so such in religious ds oaina�- tions and sectarianism, which the schools do not like; but the - word "religious" would be satisfactory with hips, or the word 91wership" could bd need. Councilman Zyorly stated his canon for removine this natter from the Consent Calendar at a previous Council meeting was because of his concern about Chs impact in the neighborhood over traffic i such as ssaationsd is conjunction with churches, and also over hours of usage. Thssa could be drastically cad with the use of closed schools. Churches. for example, would have great usage over weekends; whereas schoolgrounds generally have been free of activity then. He dial rapt cars for the impact of such greater usage sad sold be could net support the proposed amendment, hair time view that there sr* location where churches are ea11ownbls in this community. such as Xt. hiaos pointed out. in the k;1 area*, thus there sea no raison to place churches in these school arses. Councilmen hieervaaid reeponded he vas not thinking of charms in the common sensed of the Ors; be wee thinking of perhaps the Y.K.C.A.'s 11$0 5!24/76 starting cut as the young men's or young women's Christian organization. Many organizations have schools, retreat houses, spiritual centers, that ere not churches and do not generate many cars. He said he shared Councilman Eyerly's feeling that he would not want to generate more traffic and could see why the word "churches" was token out. But there is nothing in (b)(3) that says anything about community centers. As he pointed out, -t:he Y.M.C.A.. is a community center, and it generates much traffic and yet could still go into a school site. So it is not traffic at all but simply an omission that should be taken out, in this society, particularly. Councilman Eyerly repeated his concern about putting the words "religious" or "spiritual" in an ordinance, adding this leads directly into churches. He would think that Councilman Berweld could accomplish his purpose by the words "social" and "recreational" which are right in keeping with hie intent. He saw no reason to add to these words. Y. M. C. A. would certainly fit into the category covered by the words "social" or "recreational." Councilman Berwald commented he would say in fun that a massage parlor sight be social, but he would not went any allowed on these sites, Councilman Beahra observed that a play on words was being wade. There was one statement to the effect that churches are not restricted from R-1 districts; 3rd a'hools, essentially are in R-1 areas, so why not have religious institutions in R -1°s. They are permitted, so what is the difference, and why make a big issue of the matter. Councilman Berwa1d suggested that Mr. Booth could use "worship, prayer, spiritual, religious" or whatever he thi•ks is acceptable. Mr. Booth felt he should comment so that there would not be any misunderstanding. He and Mr. Knox had just been discussing the matter, and the addition proposed by Councilman 8erwald would allow the School District to lease the entire site to a church and/or a church -run school. He did not know if that was the intent, but wanted to sake sure this was clear. Councilman. 8ervald *eked whet would happen if somebody `ranted to put a community center at Creendell School, a community center that would have the saw kind of traffic as the "Y" - with dancing, yoga, Jung -Fu, cawing, children meeting there, *dolt entertainment, barbecues, etc., and this was seven-daye-a-meek traffic. He asked if such a canter would be permitted; he believed it would not and the axsa permit would be denied because of the traffic generated. LE a church came in under this sassy basis, to believed the church would be asked the size of its congregation, the church's activities, and would be limited as to the number of care and perking spaces. Be saw no difference at all. Robert Lyman, Assistant Superintendent - Operational Services, 23 Churchill Avenue, conducted the hearings at the closed schools, and the people in the neighborhood who attended the hearings agree with the Planning Coasatiseiou; they support the motioo that churches not be allowed in closed schools. About the time the Planning Commission took this action, the School Administration also wee rgwommending to the School 'card, in their Resolution of Latent, that churches be withdrawn from the proposed use of thee* schools. 1191 5/24/76 The School A,dminiutration sees such usage as a traffic generator is probably not in keeping with the proposed use of that site. Regarding community center activity and the hearings, the neighbors in attendance were sensitive to potential traffic generation also. The actual Reaaolution, the prepoased use, the leesat which the School District has written up, all carry the language that states that the nigh: use and the traffic generated be similar to the present level of the Palo Alto schools, and it is left for the School District to judge` although, of course, the official permit will be through the zoning officer of the City. Councilman Berwald asked Dr. Lyman if a community center, which iar permitted, came in, what kinds of questions would be asked. More specifically, would they be asked how much traffic they would generate. Dr. Lyman responded definitely so. Councilman Berwald wondered if the same question would be asked of a religious institution. Dr. Lyman responded affirmatively. Councilman Berwald asked if there would be any difference in an inclination to lease the site to a religious institution than to a community center, or, for example, to .a religious school, such as a Mormon or otter school. Dr. Lyman explained that the School District's commitment to the neighbors of the two closed schools, in his judgearent, would not aklow either activity, would not allow the traffic that it typical church would generate on a Sunday... Councilman Bereald said he was not asking about a church. Dr. Lynn n completed his reply, that a church would generate cn a Sunday, or a community center similar to the T.M.C.A. would generate. Councilman Berwsld said that in otheacwords, Dr. Lyman's answer was that if this is for the purpose of social or spiritual ox zeligious education or whatever, it w uld not make a any difference. What would rake the difference is the traffic and tb. noise. Dr. Lyman replied that has been the gist of the School District's conversation with the neighbors. Councilman Bsahrs asked Dr. Lyman bow well represented at the hearings were the general neighborhoods act at what distances to the etboo1a. Were there, say, half a doses people, yelling and screaming, or were there 200-300 people present? Dr. Lyman explained that the meetings were not as well attended as 204-300 people. The School Disttict did invit• people through h Friday flyers, tbroUgb announcement* in the Pale Alto Time, through band -carried notices witb the youngsters. The 667 Scouts were given invitations to distribute to the neighbors within a three- to sir --blocks' raadiue of all schools involved. Councilman Bahr*_. inquired into bow many people attended. 1192 5/24/76 Dr. Lyman responded there were thirty-five people at the Bess School hearing, and at Ortega, there was something approaching twenty. Councilman k ahrs asked how many flyers had been sent out, compared to that attendance. Dr. Lyman said that at Greenaell, 300 flyers were sent out. Councilman Beahrs said that was what he feared and that it was typical of the community. A lot of people are very vociferous and claim to represent the general area and :really do not, in his opinion. Dr. Lyman stated there was representation from all groups, from people who typically attend P.T.A. meetings, parents, and neighbors, who are interested in specific use of the school who have not been in the school, in all probabilit', for a number of years. Councilman Beahre eaw this as being very speculative and said it was too bad the School District did not get signatures on a questionnaire and a tabulation. He added that six, twelve, or two or three dozen people out of 300 does not mean anything to hider rbe motion failed on the following vote: AYES: Eeaatrs, Servald NOES: Eyerly, Norton, ;leer, Witherspoon ABSENT: Carey, Clay, Comstock The main motion, requiring five votes for passage, failed on the following vote: AYE: Eyerly, Norton, Sher, Witherspoon NOES: Baehr', r4rvald ABSENT: Carey, Clay, Comstock' Mayor Morton asked if thaw matter could be ressurscted at the not resting or would it have to be put on the agenda. Mr. Booth responded this item would have to be put back on the a age for the neat meeting, which is scheduled for Monday, June 7. Mayor Norton said there wee a probleze to begin with on the timing. He asked W. Booth if this ssatter, could be reagendized, there b.ine nothing else he cold eugigei%:. W. Bootle said the natter could be reagendized. Dr. Lyman said he had been asked to come to speak about thin motion. Be hoped Council recognized the urgency on time part of the School District, as Kr. Kuox had mentioned, in taros of getting some people in thee* butldt gs, which are going to be vacant after June 17, but even more out in terms of the users -y- the type of 1 193. 5/24/74 people that are interested and the School District is trying to get into these facilities in the interests of the community vhio have special education kinds of classes to offer. Those people neel to know, he strssasdt and they need to know now. They are planning for their fall sessions, and it is an urgent latter that the School District gnat a decision concerning the use of these facilities. Councilwoman Witherspoon urdsrstood Pr. Lyman to be ssseying that the use requested was mainly educational in nature. Dr. Lynam responded affirmatively, elaborating that to date, the School District has had *ix bids for the schools, and five of thieve bids ere from educational institutions. One is from a health clinic. f Councilman Bervald said he did not know if this would help the situation; he felt very st congiy about the matter and thought it trenscsnds the dollar value of the schools or anything else. He haa watched for years school districts throughout the country prohibit any kind of spiritual or religious education. There have been prohibitions on that type of education, and he felt that religious institutions should be considered in the same light as non -religious institutions in the leasing of property. He said he has talked about religious schools and diced not mention churches. He did not believe a church, in the traditional sense of the word, should go into areas such as described, if it creates traffic, but he asked Dr. Lyman the question, would the School District consider in the same light a community center, a health center, a religious institution, and a pace for prayer, worship, etc. He said it was kind of a setter of principle with him and he was probably baying slightly .emotional about it. H did not see that it added any damage at all to the wording of the document. He said he was not using the word "churches" and never mentioned it. Dr. Lyman, staff, and other people mentioned the word "churches." He suggested the way to resolve the matter is to give religion its place in the schools and a space on school property and begin to inculcate in see of the children the kinds of ideal° that have come from their pluralistic heritage in this country. Ile thought reseal of the churches wee probably not weed on any feelings that be has espoused, but it did not recognise the fact that someone could come in with a religiously -oriented institution and have just as little traffic and just else little noise and just as little cos motion to the area as a non -religious iustitutio . All he said he had suggested is the words "fraternal, religious, spiritual, worship, religious education" etc., and he had been turned drawn, so he voted no. Dr. Lyman answered they would be measured, aa far as administratively, by the School Board, in the same way. The Board would not rule these out, if they are a part of than ordinance and if the Zoning Administrator would admit them. - The School Board's criteria and commitment to the neighbors were in terms of night uses volume of traffic, and those torts of concerns, and the notion of spiritual., etc. did not enter into their discussions. Councilman Berwald argued Dr. Lys n's response indicated he was dosed to the amendment. He assumed now that Dr. Lyman is not opposed to the amendment. 1194 5/2#/76 Dr. Lyman said he was not opposed to the amendment. Councilman Berwald said he stood corrected, then. Mac. Knox stated he was confused by the discussion also. The matter of religious schools would fell under the section that spells out private schools and seducetiovai institutions, which is where religious schools have always been incorporated in the permit procedure in Palo Alto. Churches and religious institutions refers to something else broader than that, and be aesuaed it includes institutioa:e such as monasteries. Councilman Beahrs thought Council was indulging in much nit-picking. As far as he was concerned, there had been much too such diecrisrination against religious interests, and that goes for the whole spectrum. He acid he is making a protest vote here and would say again that schools' are in an R-1 district, and a church is permitted to be in an R-1 district and why is a distinction made here. Council is discriminating, he felt, once again against religious institutions and he said his view was to consider the whole spectrum, no matter what one's sectarian interest is, They should not be discriminated against, and he thought that in this r,ommunity, particularly, in the last ten years, there has been much too much of what he considered a discriminatory effo t against religious interests. Councilman Eyerly assumed from what he had heard that neither Councilman Een ald nor Councilman Beahrs would change their vote, which he personally found distressing, because he felt church activity is what they are trying to get away from, and other spiritual endeavors are coveted by the ordinance. It appeared to Councilman Eyerly from the discussion and the interpretation of the wording, that if the word "spiritual" is added, and staff understands what Councilman Berwald means by it, there would be enough votes to go on this matter. Councilman Eyerly said he was willing to compromise on that word, ae long as it is understood that it does not mean churches in entirety, He asked if Council could re -word a motion, or bring this matter black - up, following the failure of the motion. Mayor Norton said there Was a question of what was being brought back, and whether it was the failed amendment or the main motion. He indicated he thought Councilman Eyerly could bring either bock, because he had been on the prevailing side of the vote. Councilmen Sher, as a point of order, advanced the thought thet if Council whets to tank any further on this matter, somebody on the prevailing side, which he would tae it is the side where two voted against the latter because tilts motion failed, should move to reconsider. x_,iloving this, Council could play with the amendments, if the motion to reconsider passes. However, Council should not be discussing the matter at all unless it is formally brought back before Council. Mayor Norton agreed with Countilr in Sher that either Councilmen Beahrs or Berwald, being on the p-'evailing side, could move to reconsider. MOTION: Councilman Berweld moved, seconded by R brs, to reconsider both the motion and the amendment. The motion was approved on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay absent. 1195 5/24/76 AMENDMENT: Councilman Beahrs moved, seconded by Eyerly, that in lieu of the word "spiritual", as first proposed by Councilman Berwald, the wards "religious and fraternal" be inserted. Councilwoman Witherspoon asked if this sentence now then reads "For the purpossa of this section, the tarns community center shall mean a place, structure, area, or other facility used for and ' providing religious, social, fraternal, and/or recreational programs generally open to the public", etc. Councilman Bea]ara responded that wee correct. Councilwoman Witherspoon's interpretation was that this would be a recreational program, not mainly a purely religious church. Councilman Beabrs said that depends. Councilman Berwald maid he did not want to prolong the meeting too much but wanted to respond to Councilwoman Witherspoon. He stated the word "church" is probably the most misunderstood word in the dictionary. Most people think it is a building, in his opinion, and it is not. So even if the words "church institution" are used here, it probably would not wean a church building, as such, but it is a commonly used word, and he could see why it should not be used. The aiu ndment was approved on the following vote: AYES: Fieahrs, Berwald, Eyealy, Norton, Witherspoon NOEr: Suer ABSENT: Carey, Clay, Comstock The m.in notion as amended, was approved on unanimous vote, Councilmen Carey and Comstock and Vice Mayor Clay absent, Mayor Norton thanked Dr. Lyman for coming to the meeting and staying all night. VETERANS' BUILDING RESOLUTION _ (2(it:296:6) Mayor Norton stated this matter had been removed from the Consent Calendar earlier this evening by Councilman Sher. Councilman Sher asked staff how much will the application for a grant be to the National Historic Preservation organisation. Clayton E. Brown, Director, Budget and Staff Services Department, responded that City's letter of intent was for from $40,000 to $5G,000, intended to finance off of the priority one items presented by the Cities Advisory Committee. Councilman Sher cabled Council's attention to the fact that if thin grant is mods and 13 accepted, and if it is in an amount of $50,000 or more, thou the City has an obligation to maintain this building for forty years, under the standard agreameent of the National Historic Preservation Act. If the grant its for $10,000 119.6 5/24/75 to $49,999, the City's obligation is only to maintain the building for thirty years. Councilman Sher commented thst when ehi:amatter was first diacuesed, Council was told that the approval of the application for a matching grant-in-aid was purely routine and did not irrevocably commit the City Council to any expenditure of funds. Secondly, in Section 3 of the Resolution, there is a flat, unequivocal statement that all required local catching funds will be provided. Thirdly, as Councilman Sher has said before, the City should not get boxed in on the Veterans Building until three things happen, all of which are in the works: First, a review of the building code to determine if it is possible to saact somewhat lower standards for historical buildings; secondly, a review Cof the Citizens Committee's recoem endetions and cost figureat to see if they are an accurate estimate of what it will coat to awake the Veterans Building reasonably safe in accordance with an amended code for historical buildings; and thirdly, a determination of the City's ability to pay for the necessary work and the source of the funds for the work. Councilman Sher suggested the City is in danger of getting into another Squire House situation. If the Cau .cif accept these funds, if granted, then the City is committed to match them and to fix up the Veterans Building. He supposed that would be true, whatever the cost, that the City has taken this money and must put in matching funds. But obviously, enough money roust be put into the project so that the building can be opened and maintained in accordance with the amended building cute, if that is feasible. Thus, while the Council was told that was routine and not irrevocable, it seemed to him by adopting the proposed resolution, the Council has taken an irrevocable step, representing to the grant -making organization that the City will match the funds, and then all of these other matters will follow. He felt he must vote no unless it was somehow possible -- he did not wish to block this application, because be knew it was not final and there is n point at which City can turn the grant down. However, once Council has adopted the resolution saying the City will match the funds, then the City gets into the same kind of amoral obligation that has been talked about so often in connection with the Squire House: the obligation to the donors, .and in this case, the donor would be the National Historic Preservation Association. Thue, unless it is possible to change Section 3 of the Resolution so that there is no irrevocable obligation on the City's part, and unless that is actually stated in the resolution, CounciIa n. Shear stated he . . .. would have to vote no, and wanted to call Coamci1 *aber°s' et.tention to hie points of condom. Councilwoman Witherspoon thought that Councils Sher had, in s way, answered his own questions Conditions 1, 2, sand 3, which he outlined very clearly ea to what should be donee before Council makes any final decision on the, Vetere Building, are very good. The request for fends would not be answered until perhaps October; but Council certainly ought to have those three conditions solved by thaw. If it is ee go, the City so notifies grantor; and, of vanes, the City does not hove to couch any obligations or the forty years if they are not going. to accept the cony. If the City does accept the money, them the City ought, by October, or . whomever the appropriate tine, to have some idea of bow this is to be handled, if the grant is accepted. The City would not see the money until January, in ell probability. 1 1 9 7 9/24/76 Councilman Beahrs observed that Councilman Sher used the term "moral obligation," and Councilman Beahrs thought that in a different sense, it is very appropriate. This community has accepted the sacrifices of millions of young men over the past 58 years and has not put a rod cent down in support of their needs. Here, he continued, are some of the largest Veterans Hospitals, housing the maimed and others, in the immediate vicinity, and the City does not contribute a thing to their programs or needs. Councilman Beahrs thought that this is a scandal and said in talking about moral obligations, the City has a moral obligation, particularly so when the City has squandered hundreds of thousands of dollars on worthless buses and revolutionaries in this tom. Councilman Sher did not think Councilman Beahrs' remarks were directed to the point that he was trying to make. Re took it Councilman Beahrs would be prepared to spend hundreds of thousands of dollars -- whatever it takes -- to put this building into a condition so that it would meet the codes, whatever they are going to be, so that the building can be opened up. Councilman Sher's own view is that the City is not in the position to put hundreds of thousands of dollars to the project. He was saying that if the Council agrees to the application and accepts the funds, there is a commitment. Although he, himself, was not then a member of the City C-ouncil, he pointed out that the City Council embers who accepted the Squire House did not &grey.: to put hundreds of thousands of dollars in the project. But there are people in the community who raised that money who feel that by accepting the property, for which some $90,000 was paid, there was some commitment on the part of the City. He believed the Council had to take these steps one at a time. Answering Councilwoman Witherspoon's point, Councilman Sher stated that Section 3 of the proposed resolution states flatly that Council agrees that all required local matching funds will be provided for the project. He repeated that if that statement could be reworded, so that Council does not agree these funds will be provided but that they will be provided on the condition that the three points he mentioned occur, then, certainly, he would be happy to support the resolution which permits the application to be made. But that is not the way it is stated in the resolution; the resolution is a representation to a granting organization that the City will provide these stitching funds. Councilwoman Witherepyon id that Councilman Sher was right and the City would provide the matching funds, if the City accepts the grant, Mayor Norton asked Mr. Booth if there was any question that by proceedin g, as indicated tonight, the City would not be able, simply by refusing a grant, to avoid obliging itself to matching these funds. Mk. Booth's understanding of the setter was that if the grant is authorized, the City still has at .-last one more back -out point, and maybe More than that. However, r, it was also his u nderstandiitai that if the City does not agreed, at this point, to commit those funds, if the .grant is trade and accepted, thou the City probably will not get the grant. 1198 3/24/76 AMENDMENT: Councilman Sher moved to add in Section 3 of the Resolution, following the word "project," the statement "If the City should decide to accept the grant," so that the sentence would read "The Council agrees that all required local matching funds would be provided for the project, if the City should decide to accept the grant." The amendment failed, for Lack of a second to the motion. The main motion for approval of the resolution, so that the grant application deadline of June 1, 1976, could be met, was before Council: RESOLUTION NO. 5215 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING THE APPLICATION AND TAE PROJECT AGREEMENT FOR HISTORIC PRESERVATIONS GRANTS-IN-AID FUNDS FOR THE VETERANS BUILDING REHABILITATION AND PRESERVATION PROJECT." The resolution was adopted on the following vote: AYES: Seahrs, Ferws d, Eyerly, Norton, Witherspoon ;NOES: Sher ABSENT: Carey, Clay, Comstock ORAL COMKON1CATIONS None. MAYOR NORTON RE EXECUTIVE werTararimmia rawa UIT Mayor Norton announced that Council intends to meet in Executive Session on Thursday evening, May 27, 1976, at 8:00 p.m. for the purpose of considering whet hopefully might be a final draft agxeesent for settlement of the Araetra lawsuit. On the assumption that out of that greeting will comae a consensus from the Council, the Council is further calling a Special Meeting on Tuesday, June 1, at 7:30 p.m. which will be a public meeting and an opportunity for the public to both determine the main elements of the poaiibls agreement at that time, and to addrea* the Council as to their concerns in the wetter. COUNCiLMAJI B RWALD RE Councils Der'wald stated that serve weeks ago, he brought up the matter of en old building adjacent to Colorado Housing Complex, and staff wrote a letter to the pr perty owner and asked him to 1 1 9 9 5/24/76 abate the nuisance. The nuisance has not been abated and it is a very dangerous situation. There is a refrigerator in the house, and he was mentioning this publicly purposely and hoped the property owner was listening, and it is a refrigerator that could entrap small children and cause a death. There was such a happening reported elsewhere recently in the newspaper; such tragedies happen every day, he continued, and he cannot understand why this individual continues to maintain an attractive nuisance with a building where children are going in and smoking. He did want the utter taken care of, as he felt sure did Councilme:nbers and staff. He informed the City Manager, for his information, that the gentleman in question has not responded to the plea, and perhaps the plea should be made stronger, unless the matter has been corrected tonight. ADJOURNMENT The meting of May 24, 1976 adjourned at 12:45 a.a. on May 25, 1976. ATTEST: APPROVE.: