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HomeMy WebLinkAbout03051956City Hall, Palo Alto, California March 5, 1956 The:.Council of the City of Palo Alto met in special see- lion on thin date at 7:30 P.M.., pursuant to the following:,cail "As Mayor of the City of Palo Alto, 1 hereby call:a special meeting of the Council of the City of `Palo Alto„ to be"held at the hour of 7:30 P.M. on Monday, March:5,,. 1956,, in the: Council Chamber at the City' Hall, for the purpose of receiving and considering - a report, from'the Capital Improvement Program CO :m.. mittee covering pp:Opaed bond issues totaling *3,- 500,000.00'and a recoiended five-year capital im- provement program. "- Mayor Porter presided and roll call was as follows: Present: Bishop,: Byxbee, Corcoran, Cresap, Cummings, Davis, Drya-dale, aiffin,'Marshall, Mitchell, Mavis, Porter, Rodgers, Ruppenthal, Simpson. Absent: None - Capital ' rovement Pro ram - PronosecY Eond Issues Councilman Mitchell, Chairman of the Mayor's Capital Xm- provement Program Committee which was appointed in November, 1955, reviewed the work of the committee which was assigned the responsi- bility of reviewing the City's`capital requirements for the next` five-year period'and,recommending methods of financing, the program. The members of the Committee were' introduced Councilmen'Byxbee and Nevis, and Messrs. C. R. Antz, Ray Atwater, W. Shepard-Prench, Weldon B. Gibson-, David B. Haight, Raymond C. Kelly, William P.'Rus,. Jr., Kenneth H. Sayre,:Walter C. Smith, G. P. Wailick and Jr. E. ' Wells. The report of the Capital Improvement Program Committee was presented by its chairman; Councilman Mitchell. :The report Otated that, during. the 19561961 period approximately $9,100,000 will be needed to finance the City"s capital projects; -:that offset against this' figure= will, bean estimated $5,600,000 in revenues;. leaving a balance of $3:2500;000 to,be raised from other sources... The Committee unanimously recommended that these fund'$ be: raised by the following proposed bond issues: 1.: Sewer Bond Issue of $600,000.00 to cover the estimated` eett of the expansion of the sewage treatment:plant, trunk lines and outfall lines. 2. Electric Bond Issue of $1,250;000.00 to cover the estimated cost of major long term improve scents ;;to .,the' Electric Distribution System:. 3. Storm S'ewer:.Bond- Issue of $300,000.00 to else- inate known`deticiencies in the City's storm drainage system. 4. Library Improvement Bond Issue of $500,000..00 to. provide; essential improvements to the Ci- ty'a:.library faei11ties. 5. Park and Recreation Improvement Bond issue of $300,000.00 to complete the improvements of the City's park and recreation facilities. 6. Grade` Separation Bond Issue of $550,000.00 to cover a portion :of the estimated construction coat of`a grade separation in South Palo Altos r'� I �Mqy' /r lW� i': 'a•tl .'�L, ;•:�-;*Y e,N ✓:NNP'" . '?'1 ::I.. 288 The report included information on the estimated annual bond:Interest and redemption costs for the proposed bond issues, - with ei statement that revenue from the Sewer Division and from the Electric Department earnings;woulct probably be sufficient to cover these coats in connection:with=the;: Sewer bonds and Electric bonds, but that thebond interest and redemption costs for the other pro: posals`would-require an increase in the tax rate -- approximately a two -cent increase for .the; Stor®Sewer bonds, a three -cent increase for the Library bonds, a:two-,gent increase for the Part. and Recrea- tion bonds, and.:a;three ancd one-half cent increase for the Grade Separation bonds', based on the present assessed valuation. The Capital -Improvement Program Committee recommended, the submission of`'.these six bondproposals to the voters, and further recommended that *hen -they aresubmitted Items 1 and 2 be combined into one proposal and items 3, , 5 and 6 be combined into a second proposal. The Council discussed each of the bond proposals, and ad ditional informations on the,varieus projects was provided by the Ci- ty Manager"and other members of the staff.. i Sewer Bonds It was explained that the proposed Sewer Bond issue of $600,0.00.00 is thought to be adequate to cover the cost of expanding., the sewage, treatment plant in accordance with the study and report made by Harry N. Jenks, and the.;'cost of necessary trunk lines and outfall lines. questions raised -by Mr: E. H. Norback and Mr. R. E. Moakley regarding the Jenks report were answered by the staff. On motion of Drysdale and Mitchell, the Council approved the submission of the $600,000 Sewer Bond issue to the voters. Electric Bonds The proposed bond issue of $1,250,000.00 to cover major long term improvements to the Electric Distribution system was dis- cussed', and a motion was made by Mitchell, seconded by Navis, that this bond proposal be submitted to the voters. The capital requirements of the Electric Division for the next five years were explained, and it was pointed out that approxi- mately half of the estimated cost will be paid for from Electric De- partment earnings. Councilman Cummings stated that he thought the Council should establish a definite policy as to what expenditures should be financed out of current utility revenues and what expenses should be financed from bond money. At this point Mr. Hackley made comments on utility opera- tions and objected that the annual financial report for the last fis- cal year has not been published and made available to taxpayers. After further discussion, the motion to submit the $1,250,- 1000 Electric Bond Issue to the voters was carried. Storm Sewer Bonds I A motion was then ;aade:by'Mitchell seconded by Navis, that the proposed Storm Server Bond issue of $300,000.00 be submitted to the voters:. In2'ormation on. the' to be financed by this bond issue Fwas furnished by the. City Engineer, who pointed out that this is an interior program to -eliminate deficiencies in the City's storm drain- ge system, and has, no--connection.:wit'h ,engineering studies being made t this time by the Santa: Clara County Flood Control District on San rancisquito and.other_creeks. He advised that the figure is a pre- ' liminary-estimate submitted by George S. Nolte, who is presently en - 'gaged in .making' the necessary studies 388 The report included information on the estimated annual bond interest and redemption costs for the proposed bond issues, with a statement that revenue from the Sewer Division and from the Electric Department earnings would probably be sufficient to cover these costs in connection with the'S,ewer.bonds and Electric bonds-, but that the bond interest and'redemption costs for the other pro pose's would require an'increasein the tax rate -- approximately a two -cent increase for the Storm -Sewer bonds, a three -cent increase. - for the Library bonds, a two -.sent increase for the Park and Recrea- tion'bonds, and.a three and one-half cent increase for the Grade Separation bonds',' based on the present assessed valuation. The Capital,Improvement Program Committee recommended the submission of these six bond proposals to the voters, and further recommended that when they are submitted Items l and 2 be combined into one proposal and Items 3, 4, 5 and 6 be combined into a second proposal. The Council discussed each of the bond proposals, and ad- ditional information on the various projects was provided by the Ci- ty Manager and other members of the staff. Sewer Bonds It was explained that the proposed Sewer Bond issue of $600,000.00 is thought to be adequate to cover the cost of expanding; the sewage treatment plant in accordance with the study and report made by Harry N. Jenks, and the cost of necessary trunk lines and outfall lines, Questions raised by Mr. E. H. Norback and Mr. R. E. Beckley regarding the Jerks report were answered by the staff. On motion of.Drysdale and Mitchell, the Council approved the submission of the $600,000 Sewer Bond issue to the voters. Electric Bonds The proposed bond issue.of $1,250,000.00 to cover mw;jor long term improvements to the Electric Distribution system wan dis- cussed, and a motion was'made:by Mitchell, seconded by Nevis, that this bond proposal be submitted to the voters. The capital requirements of the Electric Division for the next five years were explained, and it was pointed out that approxi- mately -half of the estimated cost will be paid for from Electric De- partment earnings. Councilman Cummings stated that he thought the Council should establish a:definite policy as, to what expenditures should be financed out of current utility revenues and what expenses should be. financed from bond money. At this point Mr. Beckley made comments on utility opera- tions -and objected that the annual financial report for the last fis- cal year has not been published and made available to taxpayers. After further discussion, the. motion to submit the $1,250,-= 000 Electric Bond Issue to the voters was carried. Storm Sewer Bonds A motion was then made by':Mitchell seconded by Nevis, that the proposed Storm Sewer Bond issue of $300,000.00 be submitted tc the voters. Information on the work to be financed by this bond issue was furnished by the City Engineer; ,who pointed out that this is an interior program p hi p gram to eliminate defio'iencies in the City's storm drain- !age system, and has no connection with engineering studies being made lat this time by the Santa Clara County Flood Control District on' San aFraneisquito and other creeks; He advised that the figure is a pre= Iliminary:estimate submitted by George S. Nolte, who is presently en- Oged in, making the necessary studies. t,, -' 5y°., ry �nm ryv «,(nt, 389 Several council members asked for more information from Mr. Nolte on the storm drainage work involved and a further report on cost estimates before final action is taken on this proposal. Remarks were>made by Mr. Hackley regarding the storm. drainage problem. In regard to a suggestion of Mr. Hackley that the City should do additional work to correct the situation_instead of making requests for certain work to be done by the Santa Clara County"Flood Control District, it was pointed out by the. City Man- ager that the people of Pala Alto have been paying taxes to the Dis+ trict and that funds are being made available by the District for additional tide, gates at the Palo Alto flood basin and for the open- ing of Mountain View Slough to divert waters from Permanenteand Stevens creeks which now flow into the flood basin. The motion to submit the $300,000.00 Storm Sewer bond is- sue to the voters was carried. (The Council took a recess at this time, 8:50 P.M., and: reconvened at 9:05 P.M.) Library Bonds The proposal of the Capital Improvement Program Committee for a bond issue of $500,000.00 for improvements to the Library sys_ tem was discussed.: The City Manager reported that the.Citizens Li- brary i.Comrmittee which presented its report to the Council in :'August, 1955, recommended the sum of $500,000.00 but also included,in their program the sale of the present main library which might bring', 100,000.00 and the use of these funds to help pay the cost of a new main library and branches.. The City Manager advised that'the-, recently formed Library Action Committee has collected new cost fig- ures which they wish to submit. He pointed out that a'small:area had been :set aside in MitcheXl Park for a branch library to` serve the southeasterly part, of the City but there is a question as ta: whether it is of sufficient size for the purpose. Councilman: Mitchell reported that the Capital Improvement Program Committee recognized the need for better library facilities] and in making their recormendation had in mind a branch 'in the southeast `part. of the, City, a downtown branch, and a new main` 1i brary possibly on land adjacent to the city hall. A motion was. made by Mitchell, seconded by Navis, that a bond issue of -$-500,00040 fort Library improvementsAbe submitted to the voters. I Mr.BHugh�.Enochs,:-Co-chairman of the Citizens' -Library Ac- tion Committee, introduced Mrs. Elizabeth Wright, Co-chairman, and other members to make,:a-presentation for their committee Mrs. Hayes Newby,.Chairman.of the Membership sub -committee, advised that the goals of the Committee are (1) That a bond issue for library `fa -1 cilities be placed.on the next ballot, (2) that the amount of the- ; bond issue for library:`construction, equipment, land and' books be set at $707,000:00, (3) that the money be used for the construction of a new main library: at, the City Hall site and a new branch iibra- ry in the southeastern area -of the City, (4) that construction be started simultaneously on both buildings in 1956, and (5) that the library bonds be the utility bond proposal on the ballot or submitted as a separate item. Other speakers submitting information in support of new library facilities were Mrs. Walter damage, who summarized the find -j ings of previous Library committees, Mr. William Hawley:who present- ed maps showing how the proposed library system will provide better service, Mr. Paul Johnson who submitted charts and figures to shoir the reasons for modernizingthe library system, Mr. Clinton Peck whcl gave information on the'needs of expanding the branch library systeM and recommended.the retention of the South Palo Alto branch in Col- lege Terrace and the Children'.s Library at the Community Center, an ' Mrs. Elizabeth Wright who presented cost figures totaling $707,000. 00. Mrs. Newby closed the presentation urging on behalf of the Coml mittee that,the new -main library, a southeastern branch and'a Unive ,sity Avenue District branch be built simultaneously, offering, to fur- ' 390 nish any additional information desired and stating that the Commit- tee is prepared to follow throughwith publicity and information to, the public. Copies of the talks given by the speakers and report on cost estimates were distributed to council members. It was moved by Drysdale that the motion to submit the Li- brary bond issue to the voters be amended to provide that the amount' of the bond issue be $750,000..00`: The motion was seconded by Mrs Corcoran who asked that the gorid proposal be not specific as to lo- cation and that thought be given tosuggestionsshe made for locat- ing the main library in the Mid -town area. After discussion of the amendment, it was moved by Navis, seconded by Rodgers, that the amendment be amended to place the amount of the proposed bond issue at $700,000.00. The motion was carried by the following vote on roll call: Ayes: Bishop,.Cresap, Marshall, Mitchell, Nevis, Porter, Rodgers, Simpson. Noes: Byxbee, Corcoran, Cummings, Davis, Drysdale, Giffin,; Ruppentha l . The motion as amended, approving the submission of a Li- brary bond issue of $700,000.00 to the voters, was then carried. Park and Recreation Bonds The Park. and Recreation Improvement Bond issue in the sum of $300,000.00, as recommended by the Capital Improvement Program Committee was discussed, and a motion was made by Mitchell and sec- onded that this bond issue be submitted to the voters. It was explained by the staff that the complete park pro- gram is estimated to cost $425,000.00, and includes the improvement of the parks which have; been acquired in the past few years and which are being acquired during the current year, plus improvements in some of the existing_ parks; that it is proposed to use General Fund money to pay for costs in excess of the bond funds. Councilman Cummings stated that he feels the people should vote on the whole nark and recreation program, and moved an amend- ment to change the amount of the bond issue to $425,000,00. The mo- tion was seconded by :Drysdale. After discussion, the amendment was lost by a voice vote. The motion to submit the $300,000 ?ark and Recreation Bond issue to the voters was then carried. Grade Separation Bonds The proposed bond issue of $550,000.00 as recommended by the Capital Improvement Program Committee to pay a portion of the estimated cost of a grade separation in South Palo Alto was dis- cussed. Councilman Mitchell stated;that the plans for the project and details'as to exact location and' financing of the balance of the cost have not yet beep worked:out; that the cost of the whole project is estimated to be between $1,400,,000 and $1,800,000. It was moved 1,-y Mitchell and-seconded.that-the'bond issue of $550,000 be submit- ted to the voters,. Drysdale moved2an amendment to change the amount of the bond issueto"$1,8o0,000 00. He, said in discussing the matter that he thought it would be misleading to ask the people to vote on only a portion: of the cost. TneAmotion was seconded by Mrs. Corcoran, Mr. E. H..:Norback spoke to the Council on this question, stating that a:public:hearing should be held on the grade separation; project and more information made available before any further ac- tion= is taken 1 1 391 After considerable discussion, the amendment .to.submit a bond issue of $1,800,000.00was lost by the following` vote on roll call: Ayes: Corcoran, Cummings, Davis, Drysdale. Noes: Bishop, Byxbee, Giffin, Marshall, Mitchell, Navis, Porter, Rodgers, Simpson. Not Voting: Cresap, Ruppenthal. After further discussion on the original motion to ap- prove the submission of a bond issue of $550,000.00 to cover a por- tion of the cost of a grade separation in South Palo Alto, it was moved by Cresap, seconded by Mrs. Corcoran, that the motion be tabled. This was lost by the following vote on roll call: Ayes: Byxbee, Corcoran, Cresap, Cummings, Giffin, Rodgers, Ruppenthal. Noes: Bishop, Davis, Drysdale, Mitchell, Navis, Porter, Simpson. Not Voting: Marshall. On motion of Navis and Cresap, further consideration of the grade separation bond proposal was postponed until the next meeting. A motion was made by Byxbee, seconded by Mrs. Corcoran, that any further discussion on the bond proposals and the report of the Capital Improvement Program Committee be deferred to another meeting. .44 was lost. Councilman Mitchell asked that members of the Committee be given an opportunity to speak on the matter while they are here if they desire to do so. Dr. Weldon. B. Gibson spoke in support of the committee's recommendations for combining the Sewer Bond Issue and the Electric Bond Issue in one proposal,on the ballot and combining the other four items in a second proposal. Mr. Walter C. Smith also spoke on the matter, stating that he feels unrelated items should not be com-� bined and that each bond issue should stand on its own merits. At this time. Ruppenthal stated that he would like to have more time to study the -matters, and asked that the record show that he voted only on the library issue dud abstained from voting on the. other questions because of lack of sufficient information. (Mrs. Corcoran left at 11:05 P.M. and was absent for the rest of the meeting.) Attention was called to the desirability ofplacing the bond proposals, particularly the first three items, on the June 5th ballot, necessitating early action by the Council to start the for mal bond proceedings in order to comply with the law permitting the consolidation` of the' City's bond election with the Primary Election'a The -motion to defer further discussion to another meeting There was discussion on the recommendation of the Commit- tee to combine the bond issues into two proposals. At this point. the City Attorney advised that under the 1901 Bond Act -'the Council must submit the proposals separately on the ballot or combine all the items into one proposal which would constitute a city, plan; thai two proposals combining the issues could not bA presented'. It:was moved by Rodgers, seconded by Drysdale, that any of these bond.issuessubmitted to the voters be placed separately on the ballot. The vote on roll call was as Billows: Ayes: Byxbee, Cummings, Davis, Drysdale, Marshall, Mitchell, Porter, Rodgers, Ruppenthal, Simpson. No Bish4SL, Cxv1 .4...Q tJj _,Navis . t 444 9�3 � On motion of Drysdale and Rodgers, the Council extended a vote of thanks to: the Capital Improvement Program Committee for the' work they have done. It was decided to weet again on Tuesday, March 13, 1956, at 7:30 P.M. for further: consideration of the proposed bond issues. The meeting was declared adjourned at 11:15 P.M. AP PROVED/L-ItX(2 f (��-; Mayor • Mr Oa