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HomeMy WebLinkAbout1976-06-28 City Council Summary MinutesCITY COUNCIL MINIJTEs Regular Meeting June 28, 1976 ITEM Minutes of May 20, 1976 and May 240 1976 Consent Calendar. - Action Items Ordinance Amending Chapter 2.22 re Human Relations Commission Ordinance ,mending Chapter 2,20 re Planning Commission Ordinance Amending Chapter 2.18 re Visual Arts Jury Ordinance Providing for Administrative Approval of Minor Changes in Projects PUBLIC HEARING; 1976-77 ANNUAL BUDGET Reduction of $8,765 from Palo Alto Co unity Child Care Budget - Total Budget to he $219,235 Reduction- of $9,320 from the City Clerk's Budget and That Council Meeting Minutes be Action kathsr Than Sense ?Minutes Reduction of $27,072 in Funding of Coffee House Initiative (CHI) And Outreach to $15,720.00 Adjournment CITY of PALO ALTO) PAGE 1 2 8 8 1 2 8 8 1 2 8 9 1 2 8 9 1 2 8 9 1 2 8 9 1 3 0 4 1 3 1 1 1 3 1 3 1 3 1 5 12$7 4/211/711 0 June 28, 1976 The City Council of the City of Palo Alto met on this date at 7:30 p.m. in a regular meeting with Mayor Norton presiding. Present: Mehra (arrived 9:30 p.m.), Serwald, Carey, Clay, Comstock, Eyeriy, Norton, Sher, Witherspoon. Absent: None MINUTES OF HAY 20 1'9; 6 MOTION: Councilwoman Witherspoon aaoyed, seconded by Norton, that the minutes of May 20 be approved as submitted. The motion passed on a unanimous vote. MLNUTES OP MAY 24 s 1976 IO1I0N: Mayor Norton mo\red, seconded by Berwald, that the minutes of May 24 be approved as submitted. The Motion passed on a unanimous vote. ORAL COMMUNICATIONS Nona. SENT ........,.C.ALEMDAR ACfl0N mats Mayor Norton asked if there were any requests to remove items from the Consent Calendar. There being non, the following its were left for voting on the Consent Calendar A Ac tl on Items: ORDINANCE AMENDING CHAPTER 2.22 ORDINANCE NO. 2+124 entitled "ORDINANCE OF THE AMENDING COUNCIL OF T71 CITY Ofd PALO ALTO CHAPTER 2.22 Of THE PALO ALTO MUNICIPAL fops TO PROVIDE SPECIFIC AMORITY TO THE HUMAN RELATIONS COMMISSION TO MOM - MEND OR OPPOSE CERTAIN LEGISLATION AND TO - PROVIDE FOR APPOINTMENT OF MMUS OF THE HUMAN RELATIONS COMMISSION SY THE CITY COUNCIL" I 2 8 8 6/28/76 Councilman Berwald requested that the record show his vote as being "no" on that part of the ordinance giving the human Relations Commission authority to recommend or oppose certain legislation, and Vice Mayor Clay requested that the record show his vote as being "no" for the entire ordinance. ORDINANCE AMENDING CHAPTER 2.20 ORDINANCE N0. 2925 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 2.20.010 OF THE PALO ALTO MUNICIPAL COD TO PROVIDE THAT MEMBERS OF THE PLANNING COMMISSION BE RESIDENTS OF THE CITY OF PALO ALTO AND BE APPOINTED BY THE CITY COUNCIL" ORDINANCE AMENDING CHAPTER 2.15 ORDINANCE NO. 2926 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 2.18.010 OF THE PALO ALTO MUNICIPAL CODE TO PROVIDE FOR APPOINTMENT OF MEMBERS OF THE VISUAL ARTS JURY BY THE CITY COUNCIL" ORDINANCE PROVIDING FOR ADMINISTRATIVE ORDINANCE NO. 2927 entitled "ORDINANCE OF THE COUNCIL OF THE CITY oe PALO ALTO ADDING A CHAPTER TO, AND AMENDING VARIOUS SECTIONS 4F, THE PALO ALTO MUNICIPAL CODE TO PROVIDE FOR ADMINISTRATIVE APPROVAL OF MINOR CHANGES 114 PROJECTS" MOT10 : Mayor Norton sowed, seconded by Comstock, that Items 1 through 4 on the consent calendar be adopted. The motion peeved on ee unanimous vote with the two exceptions noted after the first ordinance. LIC BRING: 1976-77 BUDGET hayor Norton noted that John J. B rwald, Chairman of the Finances And Public Works Committee, and the member, of the Coaeairases, Co cil'embers Baehre, Eyerl.y,. and Sher had fifteen meetings dealing with the budget in this particularly difficult year. 4* felt they had been very thorough in their deliberations, sad the Committee had heard t ivsly from the public with regard to all of the . its under consideration. MSayor Norton /Added that the minutes of all of - those meetings had been distributed to the entire Council, and the members of Council were acutely aware of the main issues of concern to the public. Since members of the public- were heard at the Committee meetings and Council had read the minutes of those meetings, Mayor Norton requested that statements from the eitisens at this meeting be kept to a minimum. He called upon Councilman b+ermee'id to summarize the dsliberatioes of the Pena and 12e9 Public Works Committee and place the subject before the Council. Councilman Berwald, Chairman of the Finance and Public Works Committee, stated that the work done in the Committee had been the joint efforts of four people,while he served as moderator of very open kinds of discussions. He said this because he believed that Councilmembere Beahrs, Byerly, and Sher shared equally with him the responsibility for the budget that was before Council and also shared equally in the hard work that had gone into it. Councilman Berwald commented that the ambers of the Committee gave not only a tremendous amount of effort in the discussion of the budget, but also approached every item - even if it affected only one person in the community - with just as much sensitivity as they did when reviewing items which entailed large expenditure© of money. He noted that it was not easy to present the budget since this van a year when financial demands are extremely high; and as a result, a number of reductions in the budget were made even before the original draft budget was presented to the Council. The preliminary budget represented what Councilman Berwald believed was a consensus of the Council that it wanted to have as conservative a budget as possible while at the sae time providing for community services. In Councilman Berwald's opinion, the budget is a reasonable one; and it was reasonable because it had been prepared thoroughly an4 thoughtfully by the City Manager and key management of the city. Also, employees participated in the preparation of the budget in that a great number of them were members of task forces which resulted in excellent short and long term suggestions. A call for public input brought many other valuable ideas which were considered by the staff and the Committee in the review process. In that process, the Committee devoted well over fifty hours of actual meeting time in fifteen public meetings. The public was invited to be heard at those meetings, and every opportunity was given to the to make their desires and feelings known. That amount of time was in addition to the many hours of study devoted to the budget outside of the actual meetings. Councilman Berwald noted that there were many reasons for the meticulous budget assessment by staff and the Committee. First of all, the City Manager has been advising Council over the past years that service demands continue to mount. Also, Council has approved new projects and services, which results in mere staff being required to administer those programs. Inflation naturally results in rising demands for wages and benefits, and the costs of outside coneulting services have steadily gone up. And of course the effects of inflation have been feat on the coat of materiels, services, equipment, etc. Further, Councilman gerwald'indicated that the increasing difficulty of assuring revenues was compounded by the Arastra settlement, and the possibilities are ahead for additional costs to the city se it pursues the defense of cases of a similar nature. His guess vas, in viewing other cities, that the opportunities for public hearings and input are such greater in Palo Alto. Examination of the budget, explained Councilman Unsaid, resulted in a financial plasm which is necessary. No natter what the circuaotances and no matter how the Committee would home approached the budget, both from the expenditure and the revenue sides, the vet, painful actions that had to be taken to reduce expenditures and increase 1290 6/28/76 revenues were bound to have some negative effect on certain members of the community. If utility ox property taxes had to be increased, that would hurt everyone - including members of the Council. Even though Councilman Berwald was aware that ;members of the public would speak to what were injustices from their standpoint in terms of programa that were very vsluable to these, he hoped that by the end of the evening, there would be a general consensus that what the Committee has recommended and what the Council would decide on was necessary and had been accomplished with fairness, sensitivity, and skill. In the light of recent events, the city's cash and revenue possiticti has suffered, The city would forego about $500,000 in earned interest income; and that is very hard to replace, if not impossible, Councilmae Berwald added that a number of positions were slated for elimination. In addition, the Capital budget is down drastically. Many very important community projects have been deferred. Additional revenues will, no doubt, come from Palsy Alto residents, businesses, and visitors through the imposition of various taxes if those tastes were approved at this sleeting. Increased fees for comity services and for the use of community facilities will add to the burden of already rising property tax assessments and inflation. Some reduction in the quality of municipal services would be seen; and a number of people who support specific human service projects will be unable - if the Committee's recommendations are followed - to secure financial assistance from the city. Personally, Councilman Berwald had some concerns over the level of expenditures l r certain services; and he was eure that was true with other members of the Committee. It wsa his hope that thoae would be expressed at the appropriate tire. Nonetheless, the members of the Committee, essentially, view the budget document as a necessary and acceptable one; and Councilman Berwald did not believe the Committee had any hesitance in presenting it to Council and asking for approval of it. Councilman Berwald thought it would be appropriate to comment an some of the suggestions and comments tade in Committee regarding Long -terse exploration of the budget. He said he took responsibility for some of the suggestions because they were his ova, but many of them were made by members of the Committee. It seemed to Councilman Berwald that immediately following approval of the budget, the Committee should be charged with the responsibility to explore with the City Manager strategy for 1977-78 and beyond,whicb would thus assure the sccc aplishment of the essential municipal scission in a aver which would assure maintaining the quality of the lives of the residents of Palo Alto, taking advantage of the creative use of rich human resources, and bringing about the conservative use of tha city's liaised financial resources. To do this, it Is nscsesa_y to view the budgeting process as a contiArwus process rather than as an annual exercise. Perhaps a five to ten year forecasting system could be developed to match the long --range cosaprehenaiva_ plan which the city has. In his eemerendum, Councilman Berwald used the terse "inexorable" vitb regard to the demands for community servieess; and this wag not to say that all of the demands were tact equally meritorious. This year's budget was evidence that continued growth in espenditureai was net "inexorable"; for despite the fact of tha tremendous additional burden placed ore Palo Alto by the Arartra asttlemeut, in 1 2 9 1 6/28/76 )1" dia budget can be seen a reversal of the trend that has gone on for ten to twelve years of continually increasing expenditures. This was seen by Councilman Berwald to be a great breakthrough, and he thought that reflected a most conscientious review of the budget by the members of the Committee. More than that, the budget reflects a general commitment on the part of the City Manager, staff, city employees, and the Committee to look honestly and objectively at increasing productivity, improving efficiency, and priority and goal setting not only for this year, but in the years ahead. If this can be one, the responsibilities would be discharged in a better way to provide the human needs of all of the residents of the city. In summary, Councilman Berwald stated that the 1976- 77 budget consists of a total fora General Fund budget of $15,645,996.00. The amount presented in the preliminary budget was nineteen million dollars, and the Committee added almost $300,000 to that because of the CETA► program -- $278,919 to be exact. So the actual preliminary budget had been $19,320,000; and the budget now recommended is $18,646,000 for a decrease of $674,000. That means a 3.5% reduction of the preliminary budget as it had been presented to Council. Councilman Berwald continued that approximately $150,000 in new revenues was proposed in addition to the general increased tax revenues. These would be generated primarily from entrance fees to Foothill Park, an increase in Golf Course fees, and an increase in animal control fees. Councilman Berwald was certain there would be some discussion of the specific dollars and specific its. MOTION: Councilman Berwald introduced the following ordinance and moved, on beah1f of the Finance and Public Works Committee, its adoption: ORDINANCE NO. 2929 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A BUDGET FOR FISCAL YEAR 1976-77 AND AUTHORIZING THE CLOSING OF THE BUDGET FOR FISCAL YEAR 1975-76" He pointed out that once the ordinance was adopted, the reveuut side of the proposal would also be adopted; but the authority for actually imposing the revenues mould be part of a separate motion. So when._the budget is adopted, Councilmbers would not be foreclosed from amending it by action with respect to the ordinance concerned with revenues, Further, there were a number of item* on the agenda for review which, in effect, would be amendments to the budget which Councilman Berwald had just moved. The amendments were those ride by staff, or Committee, or by a combination of actions by both of those groups. Mayor Norton deciaxed that this wee the tiros and place set for a public hearing on the city's budget for the period July 1, 1976 through Jue 30, 1977. Be asked that the record sir that the City Clerk has on file an affidavit of publications of this hearing and that due notice of this hearing has been give. Mayor Norton further declared the public hearing open aced called upon members of the public to speak, admonishing each speaker to attempt to limit his remarks to three minutes if possible. 1292 6/21/76 !et" J. Bert Rose, President, Palo Alto Chamber of Commerce, made the following statement: "I appear before the Council tonight not to aek for any favors. We, instead, appeal to your sense of fairness to the total community as you consider and establish the 197577 budget for the City of Palo Alto and impose the necessary funding vehicles to finance these budgets. In our letter of May 14th to you, and in our latter of June 22nd, and in our open letter tonight in the Palo Alto Times, we expressed the Chamber's viers on matters relating to the city's budget, the impact of acquiring the Arastra Limited property, and upon suggested methods of taxation proposed by the City Manager's Office as well as those recommended to you tonight by the Finance and Public Works Committee. In the interest of time, we respectfully request that the complete text of our letter of June 22nd be included in the minutes of this meeting as if it were read to you now. 4n frequent occasions we have suggested to the City Council that the Palo Alto residents must bear a more fair share of the cost of municipal programa and capital assets they demand and expect and from which business derives little, if any, tangible benefits. We honestly and earnestly question the real need for any new or increased taxes at this time. If such a need can be justified beyond any doubt, then we can oriy support an increase in general taxation upon all sectors - a one year, one time increase in the property tax rate. The buck must atop here and now. The Council should not attempt to pass on raunicipai costs acgeired through its own discretion and without a vote of the electorate by assigning devious and disproportionate taxes upon certain selected industries :in the form of a utility users tax and transient occupancy taxes, and then, adding insult to injury by expecting those firma to also be the collector of such taxes, if there is to be A new taxation, put it out in front where all taxpayers can see and share the impact and let government bear full responsibility for collecting the taxes it chooses to impose. Thank you for your attention." The following is the text of the June. 22nd letter from the Palo Alto Chamber of Commerce, included in the record at the request of Mr. Rose: "On May 10, 1976 the Palo Alto Chamber of Commerce eommunicated its concern for the current financial condition of the city and your Council's attempts to bring revenues in line with expenditures for the year Ahead. We further commented on the extraordinary cost involved in the impending settlement of the foothills lands litigation which would impose_ an additional multimillion dollar obligation far which additional revenue must be found. In our message to you, we urged a generally stringent posture of austerity to bring expenditures is line with present income levels, and further suggested that residents must bear an increasingly larger share of costs of the municipal programs and assets they deiced end expect, and from which business receives minimal, if any, tangible benefit. We cannot support the proposition that the business sector be expected to continually pay for t a nonessential or special privileges that have caws to be expected by same of the residents of the community as a result of the previously affluent financial position of the municipal government. Now, we believe, circa tacos dictate thet spending marsh bit curbed and new approaches considered. 1293 6/25/76 In this regard, we respectfully suggest that before any taxes are increased, or new taxes imposed, as recommended by the City Manager, every effort be made to cut nonessential expenditures in both operations and capital improvements. Next, we would expect the City Council to examine the assets of the City of Palo Alto to determine which might- be liquidated or sold to provide substantial revenues. Such properties that come to mind are the old police/fire building on Bryant Street, the Squire House, the Webster Street site acquired for housing purposes - surely there must also be others for consideration. This involves selection and establishment of priorities for the community, a procesa.which we have always considered important to maintenance of financial responsibility and stability. After such judgements have been made, if the Council still believes additional tax revenues are needed to retire the Araetra Ltd. settlement obligation, we recommend and urge the imposition of a one-year, ozseetime increase in the property tax rate to race the burden of this coat fully known and felt by the residential sector as well as the business community. This method of taxation would, if needed, preserve the traditional ratio of tax payment between business and residential sources at approximately 65%/35%. We strenuously object to the suggestion that a 6% user tax be imposed upon electrical and telephone utilities. This would deviously hide the tax or its alleged purpose from the view of those who pay it, and transfer the burden of collecting the suggested telephone tax to the telephone company. The result of the application of such tax is disproportionately unfair to business in general, Business would be carrying 75% of the :toad vs. 25Z from residential customers as a group. The utility user tax wouLd impose inequities between various elements of the business sector. Some firms require large electrical usage for industrial processes, others substantially leas. Some businesses rely heavily on telephone usage in their daily operations, others have minimal telephone usage. Further, we are fearful that a utility user tax, once imposed, will become a "forever tax" never removed, yet frequently increased. We oppose any increase in the "transient occupancy" tax of 5Z now imposed, end object to the present procedure of allocating the total present revenues of $350,000 annually to the general fund. 11 this rate were to be increased a portion of the additional revenues raised should be used to benefit the conference end visitor service industry which attracts this e.anosie boon to Palo Alto. We do not agree that the philosophy of a "roo tax" should be to charge short-term visitors to the community for city services, since such usage is insignificant, and the hotel/motel industry and similar visitor service businesses already bear their share of general taxation. The suggestion of a general business ;license tax 1* not received with enthcueieem either, since business sources already generate approximately two -thirds of all revenues received by the - C3ty of Palo Alto.- In the absence of specific business license fee proposals, va are not in a position to count further, except to suggest any such proposals affecting business should 129-4 6/26/76 be thorcughly discuesed in advance with the Chamber of Commerce to assure maximum equity of application and prevent excessive or unusually punitive burdens on either individual operations or certein categories within the general business sector. Throughout the history of Palo Alto's existence the business sector has generously and enthusiastically borne the majority of municipal, educational, and charitable expenses for the community. Often business and its owners, onagers and employees have provided most of the leadership and financialmeans to assure that community needs have been met, and that the highest possible quality standards of community development and municipal amenities are maintained, in order that Palo Alto remain an exceptionally fine city in which to enjoy the good life, In recent years, it seems business contributions to the good of the community have not only been ignored, but actually held in contempt by some of those who benefit most. If such attitudes; are allowed to prevail, it is only a matter of time before business investments in this community will seek other locations. To prevent such a disasters business must once again be considered a participating partner with local government. Taxes and rs gulaions on business must not become coo excessive that Palo Alto business can no longer compete in the market place. We are generally appreciative of the efforts of the Finance and Public Works Committee to amend the budget proposals put forth by the City Manager's office. We trust the Council will objectively consider our recommendations as you adopt the 1976-77 budgets for the City of Palo Alto and establish the funding vehicles es necessary to finance city acquisitions and operations." John Young, 526 Center Drive, spoke against the proposed itmposition of the utility ts.x. Mr. Young, Executive Vice President of Hewlett-Packard, stated that, in particular, he was opposed to the idea of a telephone tax; and he explained to Council the complicated and various methods of telephone usage which existed within Hewlett-Packard. Speaking to equity, six. Young thought that Hewlett-Packard's proportion of tba total tax to be raised would be somewhere between eleven and fifteen percent if the six percept tax were applied to the overall electrical and telephone bills in the Palo Alto are*. Hewlett-Packard would be willing to pay a fair share, but this kind of percentage did not appear to be equitable. Mr. Young stated that a property tax would be a more equitable approach, or perhaps a split between the property tax and levy on the electric utility bill. Robert J. Dabs, 3145 Flowers Lune, spoke against the reduction of $9,310 from the City Clerk's budget and specifically against the Council meeting minutes being action mrinu tea rather than see ones. In ?4r. Debi)' opinion, the adoption of action minutes would be as cut is the comMunications between Council and the citizens; and he asked Couneil to not let that haeppen.- Secosadly, !1r. Debi) said has agreed with the C'ihaaber of Commerce and Mr. Yom's statements against a utility _tax. Once a tax is imposed, it is never gotten rid of because the governing body begins to depend upon it; and Mt. Dabs felt that the sales tax was a good example of that. He suggested that i 2 9 5 6/28/76 the city equalize the difference in utility rates for businesses atd residences. It was his understanding that the industrial rates were lower than the residential rates. David Murphy, 575 Byron Street, member of the Board of Directors for the Palo Alto Area Information Referral Service, asked Council to consider amending the budget to include a $9,000 contract for PAALRS. He pointed out that the $9,000 would juat partially support PAAIP.S since the county absorbs the primary costs of the organization. However, the $9,000 was essential for maintaining updated resource files which are the foundation of an effective information and referral service. The money from the city would pay for a half-time counselor and a one-fourth clerical position. Jean Ramacciotti, 1063 Lincoln Avenue, asked Council to renew the city's contract with Narconon. In her opinion, Narconon has the knowledge and techniques that will help curb increasing drug problems in Palo Alto; and the organization deserved to have city fending. Tom Cahill, 2701 Waverley Street, spoke in favor of the city funding Palo Alto Community Child Care. After ech discussion among themselves and with the city staff, a budget was arrived aZ of $231,000.00. Mr. Cahill noted that at the fir€t meeting of the finance and Public Works Committee, there was a split vote on thin issue; and the result of that was that PACCC's funding vas at a $228,000.00 level. At a subsequent session of the Finance Committee, a recommendation was made that the organization be funded at a $219,000.00 level. Mr. Cahill pointed out that the budget for PACCC had been reduced $12,000 from the first stated budget rather than the $8,000 reflected in the agenda. It was Mr. Cahill's feeling that an excellent child care program could be provided at the $231,000 level of funding, but it could not be done with less financial support. Vice Mayor Clay referred to the idea of raving the private sector contribute to the child care program that had been discussed at earlier meetings, and he said ha noticed there had been very few substantive responses. He asked how this could be accounted for and what could be done about it. Mr. Cahill commented that PACCC felt that it had received a substantial amount of community support but not in terms of dollars. Industrial response had been minimal in that a small amount had been received from very fawn organ.iaatione. The main feeling of those in ladustry is that they support Palo Alto's services through the taxes which they are presently graying. Vice Mayor Clay saw this program es one that was of benefit to industry, and he wondered if there were any chance that in the coming year industry sight offer some support Mr. Cahill thought there was no reason to be hopeful in this area, but there were other possibilities such as foundation greats and !state fending. Douglas Barry, resident of Paco Alto, and father of two children 1 2 9 6 6/28/76 1.8-40 involved with the PACCC programs, spoke in favor of the city continuing the funding necessary to provide this service. Councilmen Carey asked Mr. Berry how much he paid to PACCC for the care of his children and how that compared to a similar private service. Mr. Barry responded that he paid $175.00 per month for full time care at College Terrace and $100.00 per month for the afternoon center. When he checked private facilities six montho ago, he found them to be a little leas expensive; however, they did not offer the fine care given by PACCC. Connie Skillman, 3417 South Court, read the following letter which she had written to Councilman Beahrrs: f0I attended the Finance Committee's meeting when the agenda item was the PACCC budget request. I applaud your position on child care, and I am gratified that you supported the program so wholeheartedly. I was the woman who testified and in my statement said that my children were under strict custody arrangements with a hearing for custody set in another county. My husband makes three times the salary 1 do and can easily afford to have a woman live in as a housekeeper/baby sitter. Unless 1 can prove to the judge's satisfaction that cry children will be receiving equally goad care during my abs:nce at work, I face the possibility of losing both daughters. I cannot urge you strongly enough to talk to your fellow Councilmembens and convince them of the necessity of full funding for the PACCC budget : The anxiety I feel i3 very strong, and I aaot`etimes despair of winning custody of my children. if I knew that PACCC would be in full operation next year, much of my anxiety would be alleviated. I have written other Councilmembers concerning the PACCC budget, and I will be attending the hearings of the Council on the 28th and 29th. Thanks again for your support during the Finance Committee meetings for this most important program." Mrs. Skillman added that what she said to Councilman Be,ahrz she meant also for each CouncLI a b_r, and she asked that Council fuzed the PACCC budget completely. Michael Lewis, Palo Alto resident, pointed out that Approximately one-half of the children at Sojourner of hope Day Care Center represented single parent his and were from low income, subsidized families. Mr. Lewis wanted to stress that the well-educated teachers employed by PACCC were earning about $400 per month, and that ant the teachers themselves were subsidising the PACCC program since they obviously could fired better jobs elseehere. It was his request that the city find funds to subsidize this child care system. Virginia Stafford, resident of Palo Alto, asked Council to continue to support the PACCC program in a way that would make it possible for the organization to continue its high standards. Paula Price, Palo Alto resident, explained that without the PACCC program she would not be able to work and would be on welfare. Since a number of the mothers were in that same situation, Mrs. Prices 'Baked Cowscil to continue funding the. Child Care Progreso. Miry Leee MacDouald, 1501 Stanford £ve ute, .said she has been a 1 1 3 9 7 626/76 widow for five years and has four children. Mrs. MacDonald explained her financial situation and asked the Council to not cut out funding for a program that was so desperately needed by single parents. Nancy Gordon stated that parents who used the PACCC program depended upon it because their livelihoods demanded uninterrupted child care throughout the year. Most of the private programs are not open during the summer and provide care for just a few hours per day. Mrs. Gordan expressed the concern that if the funding were cut, the quality of the program would be reduced. She urged that Council continue the PACCC funding at its current level. Warren Kaltenbach, 1232 Harriet Street, spoke as Chairperson of Palo Alto's Standing Committee on the Arts. He read some of the major points from a resolution which was unanimously approved by the Standing Coe;tnittee at its meeting of June 22, 1976, copies of which had been distributed to the Members of Council. 1'x. Kaltenbach stated that the Standing Committee on the Arts was concerned that short-sighted cost cutting will undercut future arts programs in Palo Alto, and said that the city's strong base of support is needed for an effective community arts program. Alioon Lee, 1241 Harker Avenue, seconded the points made by Mr. Kaltenbach; and she expressed the concern that this was just the first step in a cutback on the arts program. Ma. Lee urged Council to restore funding that it has considered cutting from the program. Andy Martinson, 290 bleat Charleston Avenue, said he wanted to speak in support of the Coffee House :and Outreach Program; but he voiced his support for the child care program also. The Coffee House and the Outreach Program offer very special recreational opportunities, and Hr. Martinson urged Council to continue the present funding. Joel Davidson, 2131? Harvard Avenue, gave a short history of The Colleecti,ve from the day it began until the Council voted not to continue the program.- He said an issue used by some of she new City Couuci1as bars was the Alternative Recreation Program's philosophy of advocating with the youth in taking responsibility for their own recreation programs. When these Councilmembers were unable to coerce the City Manager into firing the Outreach Staff last July and Augu.t, some Councilmembers held on to their grudge for r: whole year and choose now to rid the city of :.he three Outreach workers, of which Hr. Devidso,i is on.s. He added that Councilaaembers Eyerly, Eerweld, Beehrs and Clay, without any involvement in the programs o although invited to participate -- continued to be against alternative* or differences in the Palo Alto community. Mk. Davidson said that et the same time, theme is a part of thee .community that is open to differences and that invites growth. Linda Murphy, 271 Everett Street, seconded the cots me by Mr. Davidson. She said there wore a lot of people who supported him and felt the seem way, and it wee really difficult to get up and speak to Council time after time about programs serving lean needs which should haaa a higher priority than 1.298 6/28/76 /09 some of the things the Council wanted to spend money on. Specifically, Ms. Murphy spoke in favor of the city refunding Our Health Center. She felt that the Human Services Study spoke for itself with regard to the validity of the program. Ma. Murphy requested that Council fund the program to the beat of its ability. Dave Leonard, 750 Stierlin Road, Mountain View, Chairperson of the Palo Alto Community Players, spoke to the arts budget. Specifically, he was concerned about the reduction of the Technical Director's job on the staff. It was his opinion that a reduction in staff time of the Technical Director would result in an effect on the safety of all of the participants at the theater. It would also result in a lack of supervision. for the many volunteers who are involved in theater work. Mk. Leonard asked the Coancii to share the Community Players' vision of a quality future in this area. Councilman Sher said that the question of a safety problem, developing if the Technical Director's time was reduced had been discussed in Committee, sad tins staff had responded that that would not be the case.. He added that this would be looked into further. Councilman Sher commented that there had been discussion at the meetings about the fees charged for productions. His own position was that he would like to see the fees for youth and senior citizens remain at the same level, and his motion to that effect did not pees. Councilman Sher asked Mr. Leonard for his view on that question. Mr. Leonard felt that a raise from $1.50 to $2.00 for youth and sealer citizens would be in line with the current economical situation, and the Ce munity Playere needed the money for support. Robert Noss, 4010 Orme Street, spoke against the city producing action minutes rather than sense minutes of the Council meetings. :t was his feeling that the money necessary for full minutes was well justified and a good investment in participatory democracy. Secondly, Mr. Moss spoke in favor of funding the Child Cere Program at a level of at le&,t $225,000.00. Thirdly, Mr. Noss noted that the reduction in funding of the Coffee Rose Initiative and the Outreach Program was in excess of sixty percent and was one of the deepest cuts recommended in the budget. He felt the youth were being asked to take a disproportionate cut compared to other areas in the budget, and his own hope was that Counc i 1 would fund these two programs in the amount of $30,000.00. Lastly, Hr. Moss pointed out that the $50,000 suggested for repairs for the Veterans Building would do a lot_more good if spent in human service erase. He hoped that the cuts in the budget for child care and youth Were not swiss because those citizens were too young to be politically active. Mr. )loss observed that the senior citizens had not had their budget cut very much, and they were persons who could vote, contribute, and work In campaigns. Thomas J. filen., 342 Kellogg Avenue, President of the Palo Alto Chamber Orchestra, spoke in_opposition to the proposed. cut in contract services which would directly affect the operating budget of the orchestra. He noted that the contribution 1299 3/26/76 of the city was vital in that it was used to provide funds for soloista, often professionals. This greatly enhanced the musical training experience of the young people who played in the orchestra, and it elevated the quality of the musical performance provided to the citizens of Palo Alto. Mr. Fiene said the reduction of the funds would significantly reduce the quality of the program. Albert Bradley, 3373 Cork Oak Way, thought it was rather easy for Council to decide to phase out the Coffee House Initiative because they were not involved with the youth in the program. Michael Wandlingg, 4353 Park Boulevard, mentioned the golf course improvements which were in the amount of $148,000.04. Mrr. Wandling was in favor of the Coffee House Initiative and the Outreach Program; and to him, this amount of money being used at the golf course showed clearly where the Council put its priorities. Crystal D. Gamage, 1568 Channing Avenue, stated that the proposal to raise additional revenues from a users tax on electric and telephone bills was not something that she would personally support She pointed out that property taxes would generate additional income because the assessed value has gone up, and that amount could offset the proposed tax on at least one of the utilities. Also, sales and property taxee were generating more revenue than had been anticipated for this year. Mrs. Gaxaage ccaemented that if the city transfers additional net income from utilities, then the operating budget could be offset to a greater degree. The needed balance could be made up with just a slight increase in the property tax. Instead of putting current revenues into a Capital Improvement Fund, Mts. Gauge suggested bonding for some and taking a look at others to determine if Palo Alto residents really want the improvements to they extent that they have been projected. It would be well for an outside group to do this kind of determination, and the same approach might be wise in regard to the compeueetion schedule. Mfrs. Carnage felt the Finance and Public Works Committee made reasonable changes to the City Manager's already reduced budget from Last year. Fred Cohn, 2635 Louis Road, spoke in favor of the alternative recreation progesme- lie. Coleman explained that through the Coffee House Initiative and the Outreach program, time was spent with the young people in Palo Alto; and in the process, all of the participants learned to cane about themselves and about each other. If Council did not want to fund this kind of activity, he wondered whet it was they valued. In his own life Mr. Coleman valued the caring relationships ha had developed with people, and be had spoken with a lot of senior citizens who felt the same way. The program has been s successful one for two years, and it bad been one through which a lot of young people had shared happy and positive erpotiences. Mt. Ca1mat% urged Council to fund the program at $42,000 eo there will be people in the community doing Outreach work which helped young people create their own recreational activities. Stan Shelly, 501 Greer Road, called Council's attention to 1300 6/20/76 the fact that in the budget, the elimination of the city's environmental specialist's position was being proposed without being specifically identified in any document of which he was aware. Mr. Shelly felt that a decision each as this should be made with full knowledge and in open discussion. He explained that the position had bean in existence for five years and had been in the Planning Department for the past two years to expedite the completion of the environmental resources section of the Comprehensive Plan. Nr. Shelly commented that the proposed Comprehensive Plan had been completed, but the implementation of the recommended programs and the administration of present environmental programs were still before the city. Because of the existence of this unique position, Palo Alto has been able to pioneer in areas of municipal noise control, air quality, recycling, and energy conservation. Mr. Shelly said he did not dispute the need to reduce the city budget, but there was no reason to believe that the citizens of Palo Alto felt that their environment was now a superfluous concern or an extravagance. He wondered about the nature of a crisis so serious as to make protection of the environment in Palo Alto the city's lowest priority. As over seven hundred city staff positions are surveyed for potential reductions, eliminating the one position which provides expertise and coordination for all city environmental progra a to save '3ne-tenth of one percent of the budget appeared extremely ill advised. Kr, Shelly asked if the city's environmental programs would continue without a director. He felt that no direction would mean no program. The second question was whether the city would survive without its environmental programs. He thought it probably would; but if survival was the eubjact of discussion, then eighty percent of other city staff positions could also be cut and survival would also be possible. What was being coc idesreed was the relative importance, impact, benefits and costs of each program; and Mr. Shelly thought that one staff positioe in the environmental area could be justified many times over. Frank Manfredi, 219 Addison Avenue, congratulated the youth of the city for participating in civic affairs; but he suggested that if they wanted to brave any impact in fighting City Hall that they hod better form an organisation. He thought it would be a good idea if members of Council would appear before the Supervisors of the county and before the legislators in Sacramento to appeal to these to reduce taxes. Mr. Manfredi thought a lot of money could be saved for the city if meters were rear and utility bills sent out on a bi-monthly bssis. Hie aa.th point was that the Council should not delete from the budget a anything that was good for the young people. Alan Henderson, 1935 Emerson Street, expressed amazement that the Finance and Public Works Committee vas once again reecommondieg elimination of sstass minutes of the Council meetings. When Councilmen Eersald put forth this proposal Last year, weary citizens and orgaa*isetions spoke out against it; and the Council finally voted unanimously to continue with near verbatim minutes. Ht. Henderson expressed the hope that the Council would vote to give the citizens of Palo Alto full public knowledge of its proceedings. Secondly, 11*. Henderson spoke against a utility users tax - once m tax is initiated, it stays. Thirdly, ha recalled that be bad questioned several meek, ago the mad to repleaisb iamedietely 1301 6/2$/76 the unappropriated Capital Improvement Fund following the use of the existing balance for the Arastra land purchase. Since Council made the decision to buy the land rather than appeal the lower court's decision, available funds would have to be used, Mr. Henderson pointed out that the funds couid be built up over several years rather than in just one year. He noted that just a few years ago, Council put out six and one-half million dollars for a new City Hall and over two million dollars for a Municipal Services Center large enough to serve a city with a population over 250,000. W. Henderson asked where the outcries were at that time. He submitted that the city gained far more benefits for more people by buying the foothills land than through building the Civic Center and the Municipal Services Center. Finally, he stated that it was disturbing to see a concentration on human services as a place where Council chose to do its budget rutting. To him, child care and a senior center were far more important than cutting willow Road through the trees to El Camino or pouring money into the Squire Houoe or the Veterans' Building. Mr. Henderson remarked that he was proud of the fact that he had been on the Council which instituted the child care program. Further, he was proud of the paramedics program, Project Mobility for senior citizens, curb ramping for the handicapped, the Coffee House Initiative and Outreach programs for youth, etc, He said he felt good about those programs; and altogether, they totaled about three percent of the total operating budget. Mr. Henderson asked that if Council had to wake cuts in human services programs, that it would take any funds it had in mind for Narconon - an obviously religiously backed program - and put them into child care, which has no strings attached. Joseph Nanevicz, 3865 Mumford Place, spoke with respect to the arts budget. In particular, he was interested in how the proposed budge would affect the Palo Alto Chamber Orchestra, which provides training for the young musicians and good music for the community. With the Palo Alto Contract Services Program, the orchestra had been able to seek out au appropriate artist and pay him a reasonable fee for soloing with the orchestra. Mr, Nanevicg urged Council to hold any cuts in the contract services area to the barest minimum. Ethel Anderson, 360 Colorado Avenue, spoke to the senior citizens' program. She expressed appreciation for all that the city had done aso far. Someone had ,uggeeted that the youth was for tomorrow and the senior citizens mere a part of the past. If this ware true, Mrs. Anderson thought the names of the senior citizens should be removed from the tax rolls; and they would just fade away inks old generals. Mate Jessup, 3838 La Salve Drive, spoke about the Nercunon program. Be stated that the emphasis of Narconon over the past five Months had been exclusively placed on attempting to meet the requirements placed on the group by the contract With the city, and be felt that a study of the Compliance Report would show that the performance had been more than adequate. Mt. Jessup reportod that Narconon, in several different ways, had sevsd the city vast ewes of money. For one thtrtg, the organization bad raised its assn funds over a period of years to provide the city with bensfite. Mr. Jessup told Council that a c ity-baaod Board of Directors 1302 6/28/76 +fill' was well underway, and Narconon was beginning to work with school districts. The use of heroin is at the epidemic level; and since Narconon could be effective in working with that kind of a problem, Mr. Jessup did not think this was the time to cut funding of an effective and inexpensive solution. Gerry McQueen, 275 Ventura Avenue, stated that as a citizen she was not asking for anything; and she was willing to pay her share. She thanked everyone who was involved in planning the budget for their hard work and all their time. *Although Ms. McQueen did not find it possible to attend every Council meeting, she always went through the packet items at the library and was aware of the amount of work that had gone ineo the budget. Laura Negronida, 301 Bryant Street, counted that she was disappointed to see the rather small part that human services seemed to play in the budget. Her epecific concern was Our Health Center, and she commended that organization for the quality of its treatment. Ms. Negronida hoped that a motion would be made in support of Out Health Center. Roger Mansell, 550 Santa Rita Avenue, stated that Council needed Lo keep in mind that 3t was easy for it to spend a lot of money; but it was difficult for the community to create the wealth necessary for the spending. Mr. Mansell spoke against the utility tax since it was inequitable in his opinion, and he was more in favor of a property tax Further, he asked that Council minutes not be cut to a briefer fore. Mr. Mansell concluded his remarks by commending the Council for its desire to make the city fiscally sound. George Crane, 1852 Bret Harte Street, spoke to the arts budget; and asked that it not be changed in order that safety can be maintained at the theater. Mr. Crane noted that the cost would be cheap compared to an accident. David Jeong, 4056 .Park boulevard, stated that he was opposed to having the Council minutes changed from sense minutes to action minutes. The sense minutes were useful to organizations or citizens who any not be able to attend a Council meeting or listen on the radio because of . other commitments. With regard to possible new taxes, Mr. Jeeng thought that they would soots become an indispensable source of revenue. Re suggested that if new revenues were needed it would be better to increase old taxes rather than impose new ones. John Fredrich, 698 Chinning Avenue, thought it :ran a waste of time to have to talk again about sue* minutes becsusae that had been settled, presumably, last year. He attted that he vas bothered by the fact that a number of citizens express concerns or ask direct questions and then receive no response from Council, staff or anyone. Mr. Fredricb thought the moot apparent item in this category on tonight's agenda vas the Coffee House Initiative. He felt that Council, detach was entrusted with the public good and general welfare, should take a more discerning look at expenditures that relate to the future and co youth. For ono thing, The Collective way men interesting example in that all reports indicated that thin wee a good human services program; and yet the 1 3 0 3 6/28/76 Council chose to discontinue it. *fr. Fredrich could not see what procedures were followed by Council in making this kind of a decision. It was Mr. Fredrich's opinion that the budget for City Council travel and meetings should not be reduced. Finally, considering the housing problems in Palo Alto, Mr, .Fredrich feared that the Palo Alto Housing Corporation might not be funded adequately enough Susan Richardson, 745 Middlefield Road, speaking to the Outreach and Coffee House Initiative, said the recreational opportunities for young people growing up in Palo Alto had increased immeasurably becauee of these programs. These organizations provided the means for young human beings to develop their potential through responsibility for programs where they could share what was the best in each of theta and gain and give mutual guidance. Mrs. Richardson entreated Council to not drop the program or to cut the funding so severely that they will not be able to function in their usual successful manner. Joan A. Fidler, 4729 Saginaw Circle, Pleasanton, stated that her son was benefiting very much from the Narconon program in Palo Alto, and she requested that Council saepport it with fending. Mayor Norton asked if there were any other members of the audience who wished to address Council about the budget. Since there were none, Mayor Norton declared the public hearing closed and returned consideration of the budget to the Council. REDUCTION OF B 765 FROM PALO ALTO Councilman Sher, speaking to the Palo Alto Community. Child Care budget, stated that during deliberations in the Finance and Public Works Committee, it vas his view that the program should be funded at the negotiated level; and he recalled that amount to be $231,300.00. At the final meeting of the Committee, a motion was made at the $219,235.00 figure which appears in the ordinance; and Councilman Sher had voted against that motion. MONUMENT: Councilman Sher moved, seconded by Comstock, that funding level for PACCC be $231,300.470. Councilman Sher said there had boon some difference to the figures that were show in the budget at various theses for PACCC, and he thought it would be well if that could be explained before voting took place. Csrleen Bedwell, Director of Community and Social Services, reported that the figurea on child core had been developed through a series of events which rook place over the last month or so. When the budget was put together, the figure of $240,000.00 was indicated in the Preliminary Budget. Staff, in its May 27th memo, suggested a reduction of five percent of existing contractors; and that brought the amended budget recommendation to $228,000.00. Mrs. Baedwell explained that was the figure that would have rem/tined in the budget if there had been no actions from the Finance Committee. 13044 6/28/76 She adder: that parallel with that, the Human Services Study ended up with a recommendation for the corporation of $231,300.00. Staff then applied ite five percent budget reduction figure to that amount ar:d arrived at $219,000.00. The action of the Finance Committee was to approve the $219,000.00, and the figure en the agenda places PACCC at that level. Councilman Sher asked if the staff recommendation before Committee action had been $228,00000 or $231,300.00. Pins. Bedwell responded that if there were to be no reduction applied to the contractors, the staff recommendation was $231,300,00. Staff felt that it WAS appropriate to apply the five percent reduction figure to the figure of $231,300.00. That would not constitute the sane: program that has been going on, but it would cause eoae reduction; and the corporation would be faced with making a decision as to how to reduce its program. Staff concluded that the proposed reduction would not dramatically affect the nature of the program. Councilman Carey suggested this might be the appropriate time to get same response to the line of thinking that James Wright, owner and director of one of Palo Alto's nursery schools, had attempted to preeent earlier under oral communications. Evidently, Mr. Wright was indicating that it was less expensive for parents t_ send children to a private nursery school than it was to make use of PACCC. Councilman Sher understood that one question was how much moray was paid in user feea by the people who use the child care service, and that :.mould be money over and above the city's budgeted amount. According to the evaluation report, that mount was $84,900.00 last year; and the proposed mount for the coming year was 5125,390.00, In the finance and Public Works Committee meetings, a lot of observations and counts were heard as to the kind of program the Palo Alto Community Child Care was trying to provide, the ratio of teachers to children, etc,, and a reflection of the determination made in ti%e Task Force report and by the Council of wanting a firet-class child caret program in Palo Alto. Councilman Sher etsteiac that be vae committed to the idea of a first- rate program, which costs mousy. That is what the city presently has, and that is what he gated to see continued. Councilesao Carey remarked that this it on the budget had generated a lot of public interest, and be did not want to rush through it, He added that the commas made by Councilman Sher answered part of hie question, but he wanted to know hew s privets, profit -asking child cern operation could provide a full day service for less money than PACCC. The other quaation be had was whether a publicly funded child care center was adversely competing with the private sector. Based on the numbers, he thought that was not the case; but be ranted to know if there bad been any discussion on that aspect of the subjeett. Councilman Habra' recollection was that the average hourly rate of the Palo Alto service ves very favorable compared to the national figures. He added that children in their formative years urgently heed rather substantial attention and interest. 1 3 0 5 6/2$/76 Councilman Berwald read the following from page. 42 of the staff report: "In an effort to draw some cost comparisons, the literature on coat studies of day care programs was reviewed. In a 1974 Legislative Analyst Report on publicly subsidized child care in Californip, it was indicated that the average operating cost of publicly subsidized day care centers was $1.16 per child hour. The estimated 1975-76 cost included an inflationary adjustment of approximately twenty-five cents." Councilman Berwald said that was how the projection of $1,45 per hour had been arrived et, aixd this compared favorably with the $1.41 average cost per child hour attending PACCC cente_ra. The report went on to say that median child care costs in nonsubsidized centers were fifty-five percent less than a PACCC center. Councilman Berwald read the conclusion of the report which noted that the reader should be cautioned that the validity of the cost comparisons was limited by the degree to which they could be verified. He thought the moet critics:l point was the staff to child ratio, and another determinant that was not in the report was the amount of overhead, supervision, etc. There had been articles in the press as to the effectiveness of public institutions spending money compared to private institutions, and his personal view was that private institutions were a lot more affective. Councilman Berwald thought someone had asked how ziany children the PACCC program provided for, and he said that number was 904, Councilman Carey said he was satisfied for the tine being, and he would support the Sher amendment. Councilman Beahrs was interested in knowing what had happened the discussion which concerned income levels of parents who were using the services of PACCC. He wanted to be sure that persons who were able to pay for the service were, in fact, doing that; and that the general taxpayers went not paying for child care for children of parents who could afford to pay themselvee. On the other Z -.end, a publicly supported program should be able to be used by anyone so long as those who were able to pay did .eo, speaking, to an earlier point made regarding the reluctance of induatry to support PACCC, Councilman Beahrs pointed cut that business intersects contributed sixty-five percent of the incase[ enjoyed by Palo Alto; and most citizens had the false outlook that they were paying for city services themselves. Vice Mayor Clay thought it was hopeless for anyone to imagine that Council _ would get through the agenda at this meeting and do justice to the a►attex in question. He was concerned about the manner in which Council was proceeding. Vice Xayos Clay said that if amendments ware wade and voted on seperately, then Council would be escalating into a composite budget; and no one would kuov what that would be until the end of the procedure.. He preferred that all of the amendments that would have impact on the budget be made, followed by nd j ournment with the understanding Council would return the following evening to finish the agenda. Vice Mayor Clay asked that all of the budget amendments be placed on the floor before voting took place for any individual amendment. Mayor Norton respotcded that he would lif e to continue the amendment by amendment approach and ee* how far Cecil could 1346 6/21/76 Lek get with it, and he did not feel that after all of the amendments had been voted on that there would be any drastic change in the total of the budget. Councilman Eyerly pointed out that what was before Council right now with regard to PACCC was the amount of money that would be appropriated, and there would be a time later in the agenda for answering questions about this complex program. If you. take five percent from the Human Services Study figure of $231,000.00, you arrive at $219,000.40. Councilman Eyerly noted that human services would have to take cuts as well a$ everything else if the budget were going to be balanced. The Finance and Public Works Committee voted to bring the $219,000.00 amount to Council for approval. In the past year PACCC operated oh $240,000.00, and they are going to return $17,000.00 to the city which they have not used. Therefore, Councilman Eyerly did not see the necessity of increasing the level of funding above $219,©00.00. Councilman Carey counted that he as well sus other Councilmembere had questions about the child care program, but this was not the time to go into then. At the same time, the experts are saying they need a certain amount of mosey; and it appeared that Council would arbitrarily reduce that by $12,000.04 to meet a five percent reduction. He said he was net willing to reduce the budget by $32,000,00 if it meant some children were going to find out they could not go back to school next year. Councilman Comstock asked Mars. Bedwell haw many other studies were done on similar programs, resulting in the $231,000.00 amount for the child care program. Mrs. Bedwell replied that staff studied twelve programs in depth; however, the PACCC program received the greatest scrutiny. One reason was that this was the second year of PACCC9s existence, and so there was some comparative material. Also, staff did not feel it had a good eenee of what the need in the community wets; so it contracted with a firm to do a needs survey in Palo Alto. Further, staff was concerned about the point mentioned by Councilman Carey about private providers; and an inventory vas done in the community of child care eervicea, including private providers. ?ire. Bedwell offered to provide that information in detail to Council. if It so desired. PACCC did a survey of the users of their programs and staff received some state and national information which was used for comparative purposes. Councilmen Comstock asked if it were true that staff did, however, take a look at eleven or so other programsa. Nis. _Bechtel" responded that a standard font vas used to study the programs and to reach conclusions. -Councilman Comstock asked if, upon completion of those studies, staff applied a five percent reduction on each and every one of them. rs. Bedwell replied thet in staff's memo of May 27th, they recommeaded an across -the --board cut on cottrsctora. With the Committee action ou the Senior Coordinating Council, 1 307 6/28/76 there was no cult on that Councilman Comstock said vaentt of this amount, and some other amount. program. the May 27th memo preceded the develop - the five percent was applied to Mrs, Bedwell etated that ways correct, but the other amount was somewhat fictitious in the sense that it was not PACCC's final recommended proposal to staff. Councilman Comstock asked if staff were going to suggest - some changes in the schedule of fees for the program, if Council approved a program for the coming year. Mrs, Bedwell explained that PACCC continues to modify its fee atructure as circumstances merit that. The proposal and dollar figure before Council contains the elimination of any support that the city rata, providing to those people who are: able to pay the full fees. In the present contract, the city has been paying the overhead costs for the full fee people. The full fee people will now be paying full costs, so their fears have gone up considerably. Councilman Comstock commented that if Council approved the $231,000,00, there would be some related actions occurricag in terms of the fee schedule so there would be more money coming in, Mrs. Bedwell .agreed. She said the $231,OOO.00 amount had been arrived at including all of the changes in fee to date, although the corporation would continue to modify its fees during the year as needed. Councilman Comstock concluded than that the possibility exists that there may be some additional offsets as modifications continue to occur during the year. Mrs. Bedwell thought there was that potential, although the impact upon the budget is unknown at this time. Councilman Comstock thought the amount m en►gioned in the amendment has the distinct advantage of representing some very assiduous study and investigation. If Palo Alto had a bigger staff, the city could ore thoroughly and in a similar manner investigate a lot of other non-social programs which are conducted by the city. FACCC hem been studied wat eahau.atively, and one thing it ,mays is that the recommended amount is the money that reflects current Council policy and represents, in Councilman Comstock's view, what everyone had been talking about some time aso. And that was how cold an amount be rationally found for a< project that would reflect Council polity, and that is what has octurrsd in this case. Council hat not particularly enshrined the five percent number. That weber is not a part of the Rumen Services Study or anything else. It is simply a number applied to the budget number that resulted from Eons place else. Councilman. Comstock brought all of this out to show that a case could be wade just as strongly for the amount of money made in the motion as to take some lower number and apply a five percent factor to that. He thought the city had a program operated by reputable ! 308 6/28/76 people in a creditable manner, and the daylights had been studied out of it. Out of that cane a finely calibrated answer, and he thought it had a lot of value and € erit, Councilman Comstock stated he would support the amendment. Vice Mayor Clay voiced discontent again over the procedure being followed. He felt that those items coming up ,Later in the agenda would be at a disadvantage if amendments were made to early items for budget restoration and were passed. Vice Maayor Clay reiterated that, in hia opinion, it would be well to have all of the amendraeuts made so that t they could be given equal consideration before voting. Councilman Sher thought the Human Services budget items here in a slightly different category because there was au adopted Council poll y that instructed staff that the amount this year should be the same percentage of the total budget as last year. That was done, and the figure produced waa on the order of $853,000.00. That was the preliminary budget. Then there was the budget modification report which reflected are approximately five percent decrease against the preliminary budget. Whe' that five percent was applied, the ceiling for human services was reduced to about $816,000.00, Councilman Sher noted that the recommendations from the Finance and Public Works Committee added up to a total considerably below $816,000.00. There was no magic number that the Finance and Public Works Committee came up with. In a sense, the Committee prodeced a composite recommendation as it went through all of the items one by one; and there was no magic figure at the end of the road: Vice Mayor Clay said he could take Councilman Eyerly's argument that the budget, in effect, for PACCC last year was $223,000,00. If the five percent budget reduction is taken on that, you would be getting down to S210,000.0O or so. Vice Mayor Clay thought all of the arguments could sake some kind of sense, but he was not willing to restore funds simply because the programs were funded at a certain level last year. Councilmen Comstock stated that he would not want to see Vice Mayor Clay vote: even on the amendment that was on the floor in the frame of mind he was in. He suggested that two things be done. One was that the mewing be broken eff with the intention of averting again Tuesday evening; and, secondly, at each Councilaeraber's place there would be a copy of the amendments Councilman Comstock proposed to make. MOTION: Councilman Comstock armed, eecoaded by Vice Mayor Clay, that the meeting be adjourned until 7:30 p.!. Tuesday evening, June 29, 1976. Councilman terweld remarked that the Committee had worked long and hard over the budget, end he was somewhat disturbed at comments being made to indicate that the final budget amount had been pitted out of a bat. Re molly thought there would not, be too many ire of this type of disco esi.oa. Councilman gerwatd felt this particular discussion had bean generated because the first vote on this was a result of a motion made by him to fund at $200,000.00. At that time, the Committee wee celking &bout $223,0O0.00, with the $23,000 to be held in trust rather than actually being put into the budget. That felled on a two —to —two vote, and the motion before Council — 1 3 0 9 6/2g/T6 based on a staff recommendation - passed on a two -to -one vote. Councilman Betv.id said he did not want to adjourn and have everyone write down his own shipping list with regard to the budget since the time for that had long since pest. He understood that Councilmembers would be milking their own notions; but considering all that the Finance and Public Works Committee had done, he did not think there had to be two or three hours of discussion on any item. Everyone had read the Human Services Study which indicated funding of $856,000.00 including both first and second priority funding, not just first priority funding. The current funding is $697,000.04, which is a considerable reduction in first priority funding. The Human Services Report states that when compared to the adjusted 1915-76 budget of $217,000.00, the Eyerly motion and the Finance Committee recommendation and the staff recommendation will give PACCC an increase of four percent. Councilman berwald commented that he could have made a motion to fund PACCC at $200,000.00 or $150,000.00, but what he was trying to say was you cannot really do that. He stated that he would vote against the motion to adjourn so that something could be accomplished at this meeting. Mayor Norton noted that first of all, there is a Committee recommendation. It could be changed in four or five material respects, but he thought it was defeating the Committc.e system to rehash every iter. Beyond that, he hoped that Council would vote tonight oe the amendment that was made re funding of PACCC for the benefit of about half of the audience who were present to find out what was going to be done on this item. It needed no further debating, so Mayer Norton would prefer to not adjourn at this time. Councilman Beahre thought the Committee had done its work well, and perhaps the time for detailed discussion was in the past. The Comstock notion to adjourn failed on the following vote: AYES: B ahra, Clay, Co stock NOES: Bervaid, Carey, Witherspoon The Sher amendment to fund PACCC failed on the following vote: AYES: 8eahrs, Carey, Comstock, Sher ROES: Berweld, Clay, Eyerly, Norton, Witherspoon Eyerly, Norton, Sher, at the level of $231,300.00 AMENDMENT: Councilman Carey moved, seconded by Comstock, to restore $8,765.04 to the PACCC budget, making a total budget of $223,000.00. The amendment failed on the following vote: AYES: Beahrs, Carey, Comstock, Sher NOES: berwa►ld, Clay, Eyerly, Norton, Witherspoon 1 3 1 0 6/28/76 Ina AMENDMENT: Councilman Beahrs moved that $12,065 he transferred eut of the Coffee House initiative budget into the PACCC budget. The amendment failed for lack of a second. EDUCTION .0 $ r9, =„T. ... ? BUDGET AND THAT COUNCIL MEETING MINUTES AMENDMENT: Councilman Sher moved, seconded by Clay, that $9,310 be restored to the City Clerk's Budget for "sense" minutes of the Council meetings. Councilman Sher said that in addition to all of the persuasive remarks made by the public and the letter from the Leaue of Women Voters as to how important it is to have minutes which reflect positions, he wanted to point out that it "action„ minutes were prepared there would be the worst kind of maneuvering by Councilmembera. Councilmembers who could not explain their "yes" or "no" votes would simply abstain, disappear from the Chamber when it was time to vote, or perhaps not attend a meeting if they were not going to be recorded in the minutes as explaining a vote they would ultimately make. If it is necessary to gave that amount of money, Councilman Sher suggested that even more be taken out of the Council travel funds It seemed to him Palo Alto had built up an enviable record of communicating with the public. This City was one of the first to advertise its agenda, and reducing the minutes to "action" ones would definitely be a move backwards. Councilman Sher thought it was clear that the minutes should continue in their present form. Mayor Norton agreedessentially, but he said he did not like verbatim minutes. He would prefer a better editing job. He knew that was a tough thing to do, but he really felt that was the answer. The essence of what was said needed to be preserved, but it should be done at less than a verbatim level. Council.mau Beahrs stated that as a taxpayer, he felt no particular moral obligation to subsidize than petty political interests of certain groups in the community. If they are interested in the actions of the Council, they should be in the Chambers regularly. Anyone could get an inexpensive tape recorder and keep a running record of everything that is said in the Chambers by the Council and the public. Staff has dcne a good job in late years on the minutes; but despite their best efforts, Councilman Beahrs said he bad been misquoted on occasion. He saw no reason why the general taxpayer should subsidize all those people who were interested in political. maneuvers, Councilman Comstock responded that fortunately, there was no ,sharp dividing line between the audience end the Council as far as political maneuvers were concerned, nor should there be. The important thing, was that Council bad done the right thing in taking an enormous amount of effort and trouble to not take any actions tbet would give the citizens the feeling that anything that was being done by Council vas 1311 6/28/76 something it was trying to be secretive about. Councilman Comstock thought that was commendable. One of the reasons some colleagues had fallen into disrepute was for the very reason of too much secretiveness, or they had at least given the appearance that things were being done out of the public eye. This Council has continued to support the broadcast of the meetings, the publication of the agendas, the distribution in the libraries of everything that goes into the packet, and so forth. Councilman Comstock believed Council had a very high degree of trust and understanding in this community for that very reason. He just did not think Council wanted to put itself in the position of saying to citizens who were interested in following the proceedings that they had to assume some sort of a burden because of that interest. It took a lot of time for Councilmembers to come and participate in the meetingo, and the same thing was true of persons in the audience. 1!e saw Council's obligation to the as one of facilitating an exchange and openness of information. The money spent for it would reap dividends of public trust and understanding many times over. Councilman Berwald saw this particular item as an opportunity to reduce an unnecessary expenditure, and he disagreed with Councilman She r i s fears about what would happen, Those things eight happen if you had people without integrity in public office, but Councilman Lerwald said he would not do all of the things mentioned by Councilcan Sher if there were to be "action" minutes. The Council meetings are broadcast over MU, there is a reporter or two present at each meeting, and the Committee minutes are very detailed. In the Committee, there was a discussion of how to keep the meetings from being any less public; and one way would be to provide cassette tapes to the libraries and make verbatim tapes available. People could avail themselves of those. Councilman Berwald thought one of the side effects would be to shorten meetings because speeches might be reduced, and he would not wane anyone to think that a vote for the reduction meant that a Couucil berwanted to make the procedures any less public. Councilman Carey said he felt very strongly about restoring this amount of money to the budget, Eighteen million dollars was being spent, and this $9,000,00 represented .0012 of the total budget for something that wee a sensitive issue and important to a lot of people, lust of all, it was symbolic of the willingness of a governmental body to be completely open. Full, minutes were concrete evidence that this governmental body is going to operate in ,the public eye with full public participation and give the community members an opportunity to read what this Council says and does. In Councilman Carey's opinion, this particular savings would be foolhardy, Councilman Umbra noted that under the Brown Act in California there must be public disclosure of everything that CaunclI eab rs do, and it was his hope that the citizens would have enough interest in the city government to come to the meetings and populate the Council Chambers. The citizens were seen infrequently, and Council *n Beaters did mat like subsidizing such indifference on the part of the public. Mayor Norton understood the $9, 310 bad been for a CETA employee 1 3 1 2 6/28/76 which had been deleted anyway. His understanding from City Clerk Ann Tanner that doing proper summary minutes or edited minutes was quite a bit more difficult than doing almost verbatim minutes. He asked Miss Tanner how much it would cost to produce edited minutes. ?Miss Tanner explained that the $9,310 was in her office's budget for a permanent, regular employee and was not CETA money. She felt that to produce summarized, edited minutes would require another person in the office, particularly during the six month election period. Mayor Norton asked what the $9,310 would do. Mies Tanner responded that would give the City Clerk's Office what it had a year ago, or aix months ago before the office had the CETA employee. She added that the CETA employee was a luxury the office enjoyed for six months in addition to the regular budget. Mayor Norton asked if the appropriated money would provide for the kind of minutes that he could like to see. Miss Tanner thought that Mayor Norton had in mind a very concise, edited document; and to do that on a weekly basis would require extra help. Mayor Norton concluded that he would vote in favor of the amendment. The amendment passed on the following vote: AYES: Carey, Clay, Comstock, Norton, Sher NOES: Seaahrs, Sermal4, Eyerly, Witherspoon MOTION TO ADJOURN: Councilman Carey moved, seconded by Clay, that the meeting adjourn to 7:30 p.m., Tuesday, June 29th. The motion to adjourn failed on the following vote: AYES: 3eehre, Carey, Clay, Comstock NOES: Eervald, Eyerly, Norton, Sher, Witherspoon ION OF 27 072 IN FUNDING Councilman Sher moved, seconded by Comstock, that the funding for the Coffee Ouse Initiative and Outreach be restored to $27,072.00. Councilman Seer stated this that vet obvia usly a controversial program. People had preconceptions about It based on its history, and there wet a tins when there were some problems that surfaced at the Council level. Those problem were 1313 6/23/76 discussed in the evaluation, and recommendations were shade and implemented for same changes. Councilman Sher thought it was important to put behind those earlier discussions and not let them influence the voting. ila.ther, Councilmetabera should look at the program now. He said that if all the Counci1c>ser hers had been present at the Finance Committee meeting when many young people spoke about the value of the program and What they were getting out of it, they would have seen the program was not for just a handful of people. This is an important part of the recreation program provided by Palo Alto. Staff is very supportive of it, and they see it as a good and valuable progra?a. Couuciiman Sher pointed out that the budgeted amount recommended by staff had already been cut from same $64,000 to $42,000. The amount reflected in the motion does preserve a portion of that, but the tvo parts of the program feed each other. It seemed to Councilman Sher that a lot of value was gotten from a small amount of money which provided a different facet of a recre tioe program. He urged his colleagues to support the motion. Councilmen 1?erwald had had some negative feelings about this program, but many of them had been awl iorated when he saw the enthusiasm of the young people who were involved, That, however, would not change his vote too much. Councilman Berwald had compromised his feeling that this program should not be budgeted but be absorbed into the recreation program except for a partial budget of ,almoat $16,000 CO z3ecause a group of people like and applaud a carca.in program does not actually mean that the programs is necessary or that it is an appropriate municipal function. Huck of the program was good in Councilman Berwald's opinion; and because of some of the present ativittes there such asp the restaurant, he would not like to see it wiped out immediately, However, if the youth who preaently use the Coffee House coat to the end of their iutereet, and a new group of young people did not show a lot of interest in it, then it would be better to involve the youth in the standard recreational program in the city, Alpo, Councilman Bervald felt that some of the work being done, pe€ticularly by Outreach, was duplicated in the educational system. Further, if one looks at all of the recreation ptograms in the survey, one finds adverse comments about the admi aistration of the program. Until those things were cleared up, cou citmen Berwsld did not want to spend forty to sixty thousand dollars on the program. Aleo, the survey shows that almost all of the progress in term's of cost/benefits are very well attended on small budgets, but with the Coffee NOVA. and Outreach tha dollare spent are three times the ucaaber of participants rather than the other way around. So from the standpoint of numbers, it is not as cost effective as the other programs. Another point Councilman gervatd made was that the budget for recreation was $650,920.00 as proposed, and the budget before Council is $593,000,00 which is a very mass reduction. In his opinion, there wee plenty of room within the recreation programs to accommodate traditional and noontredttional recreational services. Councilman Serwald was in favor of the recommendation made by the Timm* and Public 'corks Committee; but he would accept Council's decision with a great deal of grace and would not be coo unhappy if it decided to fund the mole thing. 1314 6/28/76 Councilman Eyerly stated he would vote against the Sher amendment; and if the amendment failed, he would move to delete the $15,720 for the Outreach program. The Human Services Study showed definitely that the administration of the Outreach and Coffee House program had been very poor. He did not see how the program would improve unless that administration were corrected. There are good things in the Coffee House and Outreach program, but Councilman Eyerly thought the program as it was now known should be done away with. Staff should restructure it this year and bring it back in next year's budget. He pointed out that there were plenty of facilities in the city that could be used in the ensuing year until the restructuring was accomplished. Councilman Beahrs felt that if Council planned to cut the program by two-thirds, it may es well cut the whole thing. He noted that the city was filled with tax-exempt organizations such as churches and the YMCA which provided all kinds of activities for young people. There was no reason for tha taxpayer to provide still further facilities for a group of youth just because they wanted to develop a recreation program in their way. The Sher amendment failed on the following vote: AYES: Comstock, Sher NOES: Beahrs, Berwald, Carey, Clay, Eyerly, Norton, Witherspoon AMENDMENT: Councilman Eyerly moved, seconded by Beahrs, that the $15,720.00 be deleted from the Outreach budget. The amendment failed on the foilowing vote: AYES: Seaters, Eyerly, Witherspoon NOES: Eerwal.d, Carey, Clay, Comstock, Norton, Sher MOTION: Councilman Comstock moved, seconded by Norton, that the meeting adjourn to 7:30 p.m., Tuesday, June 29th. The motion passed on the following vote: AYES: Beshre, Grey, Comstock, Norton, Sher, Witherspoon NOES: Barmaid, Clay, Eyerly ATTEST: 1 3 1 5 6/28/76 APPROVE: Mayor i 1