HomeMy WebLinkAbout05131968City Hall
Palo Alto, Caiifornia
May 13, 1968
The Council of the City of Palo Alts, met on this date at 7:30 p. m.
with Mayor Dias presiding.
Present: Arnold, Beahrs (arrived 7:40 p.m.) Berwald,
Clark, Comstock, Cooley, Dias, Gallagher,
Pearson, Spaeth, Wheatley
Absent: None
Architect for Downtown Library
aria-Recrea1ionie er (CMI Z70)
MOTION: Councilman Wheatley moved, on behalf of the Public
Works Committee, that the firrn of Spencer, Lee and Busse
be given the contract for architectural services en the downtown
library and recreation center_
The motion carried unanimously by voice vote.
Charge of Fire Zone - 4176 Mi:idlefield Road
MOTION: Couf.cilman Pearson introduced the following ordinance
and moved, seconded by Comstock, its approval for first reading:
'bn.:iinance of the Council of the City of Palo Alto Amending
the. Official Fire Zone Map of the City of Palo Alto (Section
1601 of the Uniform Building Codd) by changing the fire
zone of the property located at 4176 Middldfie d Road from
Fire Zone 3 to Fire Zone 2?
The ordinance was approved for first reading unanimously by voice
Reptort on Bids - Ba lands
A t efic Center (C
MOTION: Councilman Clark moved, seconded by Comstock, to
award the base bid using alternate one (1) in the amount of $274, 274
to Peterson, Rathbun & Moore for construction of the Baylands
Athletic Center, Project No. 66-18.
The motion carried unanimously by voice vote.
MOTION: Councilman Clark introduced the following ordinance and
moved, seconded by Comstock, its approval:
Ordinance No. 2435 entitled" Ordinance of the Council of the
City of Palo Alto Amending the Budget for the Fiscal Year
1967-68 to Make an Additional Appropriation for the Con-
struction of the Athletic Center, .Project No. 66-18"
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Mayor Dias noted at this time that Dr. Murray K. Walker and
Mr. E. S. Layman requested permission to speak to this item.
MOTION: Councilman Berwald moved, seconded by Gallagher,
to hear Dr. Walker and Mr. Layman.
The motion carried unanimously by voice vote.
Dr, Mul'rni, K. Walker, Vice President of Little League, Inc_
of Palo Alto, stated he had come on behalf of their Board of
Directors to ask Council to take the action they had just taken.
Mr. E. S. Layman, 1Z74 Pitman, Palo Alto, thanked the Council
for their action on the Baylands Athletic Center project.
The motion to adopt the ordinance amending the budget and making
additional appropriation for the construction of the Athletic Center
was approved by unanimous voice vote.
Golf Course Restaurant Contract (CMR 267)
City Manager Morgan presented his report regarding a new five-
year contract with Mr. James J. Saitta covering operation of the
restaurant at the Golf Course. He directed attention toward
the next five-year period during which there could be some changes
in the structure housing the lunchroom and the pro shop, noting
that provisions were made in the contract for renegotiatio:i in the
event these changes take place.
MOTION: Councilman Wheatley moved, seconded by Cooley, that
the Mayor be authorized to execute the contract on behalf of the
City with Mr. James J. Saitta covering operation of the restaurant
at the Golf Course.
The motion carried unanimously by voice vote.
Foothills Park Nature Interpretive
e 1r -I R
City Manager Morgan presented his report regarding final plans and
specifications for the Foothills Park Nature Interpretive Center and
directed attention to a sketch on the wall depicting the lodge and
proposed improvements.
MOTION: Councilman Pearson moved, and it was duly seconded,
to approve final plans and specifications for the Foothills Park
Nature Interpretive Center, and authorizing staff to initiate bidding
procedures.
The motion carried unanimously by voice vote.
MOTION: Councilman Pearson introduced the following ordinance
and moved, seconded by Clark, its approval for first reading:
''Ordinance of the Council a the City of Palo Alto Approving
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and Adopting a Plan for the Remodeling of the Existing
Barn into an Interpretive Center and Constructing a
Maintenance Yard Facility in; Foothills Park, Project
No. 63-9"
Electric Utility Engineering Study
City Manager Morgan briefly reviewed his report Oh the proposed
electric utility engineering study and outlined the scope. He
noted that if approved by Council, past procedures will be fol-
lowed with a recommendation submitted to the Finance Com-
mittee for review and consideration.
MOTION: Councilman Clark moved, seconded by Cooley, that
the staff be authorized to proceed with the selection of an en-
gineering consulting firms,
In answer to questions from Council, Mr. Morgan explained
the scope of the report, noting that in sorne way- it would
be similar to the report of five years ago with more detailed
information with reference to the foothills.
The motion carried unanimously.
Citizens Committee to
Accept Art Objects
Mayor Dias noted that there is ac existing procedure for giving
art objects to the city but it would be her hope that the proposed
committee look at that procedure to refine it; also look at the corn=
rnittees responsibilities, aria ways in which it might act, with their
recommendations returned to the City Manager and City Attorney
for review. She stated $he would also hope this committee could
be alerted to collections being broken up and estates being
handled in the City, to seek out and bring to attention art
treasure:. and those of historical significance. She concluded by
stating that after the basic groundwork has been established
and placed before the City, it would be her hope that this
committee might continue to serve much as Friends of the Library
and Associates to the Junior Museum.
MOTION: .Mayor Dias moved, seconded by Gallagher, that the
Mayor be authorized to appoint a five -man committee to estab-
lish the groundwork for a citizens committee to accept art
objects on behalf of the City.
In answer to questions regardingter ruination of the committee,
Mayor Dias commented tkat other Councils might have other ideas
and future Mayors might want to change the committee at their
pleasure. She stated the important thing is that this committee
establish working rules and procedures as to how they bight beat
serv+i the City.
The motion was carried unanimously by voice vote.
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Southern Pacific Railroad
Parking Lot Fees
City Attorney Hildebrand read his report regarding the status
of the Public Utilities Commission findings on the Southern
Pacific Railroad parking lot fees.
Repeal of Air Travel Tax Exemption
City Attorney Hildebrand presented his report regarding H. R.
16241 - Repeal of Air Travel Tax Exemption. He referred
to the attached letter from the General Counsel of th.e National
Institute of Municipal Law Officers which sets forth in,"detail
the problem and his concern regarding it.
MOTION: Vice Mayor Arnold moved, secorded by Beahrs, that
the Mayor be authorized to address a letter to the appropriate
committee in Wkshington expressing apposition to payment of a
travel tax.
The motion carried or. a majority voice vote.
Foothills Environmental Design Study
Councilman Berwald stated that at the last meeting he had made a
motion which was seconded but not voted upon. He added that
since that time he has modified his request and asked if it
would he proper procedure to withdraw that motion with the consent
of his second in order to use the new language.
The Chair ruled it would be appropriate, if there were no objections,
to so present his motion. There were no obkections and Councilman
Comstock withdrew his second.
--MOTIONS - Counciit an Berwaid moved, seconded by Comstock,
that the Staff be directed to undertake an environmental design
study, eupplermented by the contributions of the Planning Com-
mission, for the development of the Palo Alto Foothills in rea-
sonable consonance with the general concepts, applicable pro-
visions and recommendations of the report of the Citizens Advisory
Committee on Foothills Planning. The staff is to use this report
as a point of departure, but in no way to be limited in their freedom
to use initiative and imagination to achieve the best possible overall
cm, ironmental design plan for the foothills.
',SUBSTITUTE MOTION: Vice Mayor Arnold moved, seconded by
'Pearson, that the Council direct the Planning Commission to
develop design criteria and specifications for a foothill environ-
mental design study and return thee: criteria to the Council for
review.
In answer to question regarding priority, -Planning Officer Four-
croy stated that. the planning Commission is concerned with this
and is directing attention to the total picture of the foothills
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within the total context of the City. Within this context the Planning
Commission recognizes it as a high priority project and believes it
is quite important to continue this kind of complete program that
looks at the whole foothills as well as the whole City in a balanced
program. He suggested that the Council send Mr. Berwald's
letter to the Planning Commission for consideration in context of
the study that is underway.
Discussion continued with members of the Council expressing their
views.
MOTION: Councilman Berwalcl moved, seconded by Beahrs, to
listen to members of the public.
The motion carried unanimously by voice vote,
Nonette Hanko, representing the Palo Alto Civic League, urged
the Council to pass this proposal and give it high priority.
Arthur Ogelsby, 940 Embarcadero, ::poke in favor of Vice Mayor
Arnold's substitute motion.
The substitute motion passed by a majority voice vote.
The Council recessed from 9:05 to 9:15 p. rn.
Re.ort of Hospital Negotiating
tinue. rom-576/68)
• Y„ 6 ` t c e
Mayor Dias noted that neither Councilman Clark nor Councilman
Gallagher would participate in the discussion nor vote in connection
with consideration of the proposed agreement between the city
and Stanford University regarding the hospital.
____Mayor Dias obierved that many letters had been received and all
communications were reproduced and sent to each member of the
Council. She then announced that Dr. Robert Glaser, Vice Presi-
dent for Medical Affairs, Stanford University, has agreed to
comment on the proposed agreement.
Dr. Glaser expressed the University's appreciation to the staff
in development of the agreement, belief that the result is fair
to all concerned and represents an outstanding opportunity for
both the City and University. He summarized the situation as
far as the Universityis concerned, noting that one of the most
important features is that Stanford would assume ownership and
control of all the hospital holdings but immediately turn around
and guarantee to Palo Alto citizens and their physicians the right
to use and enjoy them for 40 years. They also guarantee that costs
of teaching and medical research will not 1 e charged to the patient.
He pointed out that the "status quo" will not be maintained and if
the proposal is rejected by the City, the University will go its
own way.
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5/13/63
In answer to question regarding an arbitration provision, Dr. Glaser
replied that the legal document will include an arbitration clause
which will apply to the City and Stanford. He advised that the
Hospital Board will arbitrate between medical staff and patients
and also if there is disagreement between departments.
When asked to comment on what has changed since the report of
1957, Dr. Glaser briefly reviewed what has transpired and now
this agreement represents a very detailed attempt to come up with
a solution that will not only meet the University's needs but the needs
of the community and community physicians. He added that Stanford
is pleased with the proposal and with the reasticn, noting that this
covers more than has ever been offered by a university hospital
in the United States.
Dr. Glaser answered questions regarding clinical faculty appoint-
ments and iifferent rates, and also listed reasons why the existing
professional relationships could not continue if the Council
rejects the present offer. He stated if the City rejects this pro-
posal, Stanford would have no interest in being other than as
cooperative as possible but added it would be foolish to say they
could continue to work with the same kind of arrangements since
Stanford has some very special plans and would have no intention
of maintaining all the plusses of the present arrangement as far
as the other site concerned. He continued answering questions
from Council members as to clinical faculty staff in the future,
access of courtesy staff as set forth in the agreement, and stated
he did not believe the agreement should be contingent upon develop-
ment of by-laws as he did not consider them a problem.
City Attorney Hildebrand answered questions regarding arbitration,
noting that he would not want the Council to assume that every-
thing having to do with the hospital is subject to arbitration since
one of the terms is that Stanford have_ operating controlof the
hospital. Beyond that there would be an element that would be
subject to arbitration and this can be worked out with no difficultly.
Mayor Dias noted that requests were received from three individuals
to speak at this time. She stated the Chair would not call on these
people without further direction from the Council and noted that
Mrs. Alice Smith has already spoken and written to the Council
and i:as asked to speak again. She commented that the meeting
last week was continued with the understanding the Hospital
Staff would meet on Thursday night and hereafter Dr, Art ns
would be speaking for the Palo Alto Medical Staff on ' that meeting..
Dr. Lawrence Arnstein and Dr. James Bali requested to speak,
independently.
MOTION: Councilman Pearson moved, seconded by Berwald, to
allow the two doctors, Dr. Ar natein and Dr. Ball, to streak.
The motion carried by a majority voice voti.e.
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Dr. Lawrence Arnstein, Welch Road and Pasteur Drive, expressed
the feeling the following questions should be answered prior to
acceptance of the proposal: (1) how an arbitration board will operate
and under what circumstances; (2) the source from which the Hospital
Board will come; and (3) the powers of the Hospital Board.
Dr. James Bali, 1101 Welch Road, stated the Palo Alto staff would
like a little more guarantee that if the present number of clinical
members were reduced, then the 44 -bed limit to courtesy physicians
would be modified.
MOTION: Councilman Berwald moved, seconded by Beahrs, to
hear from Dr. Walter Arons at this time.
The motion carried by a majority voice vote.
Dr. Walter Arons, speaking for the Palo Alta Hospital staff,
observed that when the Council continued the meeting last Monday
it was with the thought the Palo Alto Hospital staff would meet on
Thursday and Council were awaiting the results of staff balloting.
As far as the current proposal is concerned, the staff decided in
the negative. They did not feel the Board would be an equitable
mechanism for settlir..g difference of opinions in the future, they
would be reassured by a guarantee that Hoover Pavilion would
remain open, they are interested in the by-laws, and a little uneasy
about stepping into a situation where they are not sure of the ground
rates. The matter of the courtesy staff and 44 -bed limit they felt
may not be a problem at all. It was the staff feeling that rather
than plan and predict every problem, it would oe extremely reassuring
ii there were, a mechanism for handling problems.
Councilman Pearson read her letter dated May 7, 1968 and noted
her proposed motions had been distributed to Council.
MOTION: Councilman Pearson moved, seconded by Comstock --that
the Council proclaim its determination to retain our leases on all
Stanford land presently leased for hospital purposes, except that
on which the hospital buildings now stand.
Councilman Wheatley asked for clarification of Mrs. Pearson's
intent - whether these motions were amendments to the proposal
or separate motions.
Mayor Dias stated the Chair would recognize Councilman Pearson's
motions as separate since they do do not deal with the negotiated
proposal.
MOTION: Councilman Pearson moved, seconded by Comstock, that
the Council go on record that it is unwilling to accept less than
$3, 000, 000 in cash plus the assumption of the bonded indebtedness
(total $5, 900, 000) as PART of an agreement under which Stanford
accepts the responsibility for a community hospital.
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POINT OF ORDER: Councilman Cooley as ed if Mrs. Pearson was
placing three motions on the floor at one time.
Mayor Dias observed that because Mrs. Pearson had presented
a written document in which she included all three motions and which
she, described as a three: -part motion, the motions are being stated
at this time, however, the Chair has also stated that the motions
will be presented separately for the Council to vote on.
MOTION: Councilman Pearson moved, seconded by Comstock,
that the Council direct its negotiating team to reopen discussion
with Stanford, with respect to those points about which concern
has been expressed, to include:
(a) a modification of the present lease which will allow
the City to sublet based lands now held for hospital
purposes for medical purposes or facilities other
than hospitals, but compatible with the present
improvements;
(b) patient rates, size of hospital board, staff -by-laws,
number of Palo Alto guaranteed beds, Palo Alto
patient priority, grandfather clause, closed
issue re future doctors.
Discussion followed on the proposed motions.
Councilman Pearson's first motion was defeated on a majority
voice vote.
Councilman Pearson's second motion was defeated on a Majority
voice vote. - -
—With-the consent of her-eecond, Councilman Pearson withdrew her
third motion.
MOTION: Vice Mayor Arnold moved, seconded by Cooley that the
Council approve in principle the proposal of the negotiating staff
dated April 1'., 1968.
AMENDMENT: Vice Mayor Arnold moved, seconded by Cooley,
that an arbitration procedure be delineated in the agreement and
that among other considerations these arbitration procedures
embrace the 44 -bed stipulation and possible closing of Hoover
Pavilion.
The Chair asked for clarification of that part of the motion embracing
the 44 -bed stip►ilati.on and the closing of Hoover Pavilion.
Vice Mayor Arnold stated that in setting up an arbitration procedure
he wished to make it clear that these two specifics are included as
being subject to arbitration.
After diseszssion, Vice Mayor Arnold, with the consent of his
second, withdrew his amendment.
AMENDMENT: Councilman Spaeth moved, seconded by Berwald,
that the final document contain a comprehensive arbitration agree-
ment which will provide a forum for final resolution of all disputes
affecting the rights and obligations of all persons and parties named
in the proposal.
The amendment passed on the folletving roll call vote:
Ayes: Arnold, Beahrs, Berwald, Comstock, Cooley,
Pearson, Spaeth, Wheatley
Noes: Dias
Abstain: Clark, Gallagher
AMENDMENT: Councilman Spaeth moved, and it was duly seconded,
that the final contractual document contain a comprehensive defini-
tion of the hospital care that Palo Alto would be receiving -- said
definition at minimum to include a recitation of the assurances as
made by Dr. Glaser this evening.
The amendment passed on the following roll call vote:
Ayes: Arnold, Berwald, Comstock, Pearson, Spaeth
Noes: Beahrs, Cooley, Dias, Wheatley
Abstain: Clark,Gallagher
AMENDMENT: Councilman Spaeth moved, and it was duly seconded,
that the rates charged to Palo Alto shall not be discriminatory and
in no event differ from hospitals throughout the Bay Area in hospitals
of :ieomparable quality.
The amendment was defeated on the following roll call vote:
Ayes: Berwald, Comstock, Pea rron; Spaeth
Noes: Arnold, Beahrs, Cooley, Dias, Wheatley
Abstain: Clark, Gallagher
AMENDMENT: Councilman Spaeth moved, seconded by Comstock,
that there be no drastic decrease in the number of private doctors
from which to choose because of a change in University faculty
policy.
The amendment, was defeated on the follriwing roil call vote:
Ayes: Berwald, Comstock, Pearson, Spaeth
Noes: Arnold, Beahrs, Cooley, Dias, Wheatley
Abstain; Clark. Gallagher
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AMENDMENT: Councilman Comstock moved, seconded by Beahrs,
that page 2 of the draft agreernent, paragraph "b" be amended to
read in part "A11 physicians, whether or not members of the
active or probationary medical staff of the Paio Alto Medical and
Dental Staff of the Palo Alto -Stanford Hospi tal Center as of the
effective date of the agreement shall comprise the 'affinity group'."
1
The amendment passed on a majority voice vote.
sa►MFNDMsNT: Council- __ - Comstock _. v..�auLia[aSa�a t,,omscoctc Moved, seconded by Pearson,
on page 4, (b), 1. (ii) and 2, (ii) to delete the paragraphs referring to
"44 beds".
The amendment was defeated on a majority voice vote.
MOTION: Councilman Comstock *roved, seconded by Berwald,
that at the conclusion of further negotiations the Mayor will call
a Special meeting for the purpose of considering the hospital
agreement docarnents.
The motions carried on the following roll call vote:
Ayes: Arnold, Berwald, Comstock, Cooley, Pearson, Spaeth
Noes; Beahrs: Dias: Wheatley
Abstain: Clark, Gallagher
The Council then continued with amendments to the original motion.
AMENDMENT: Councilman Wheatley moved, and it was duly seconded,
that page 5 of the draft agreement, paragraph "b" subsection (1) be
amended to read, "A payment of $1, 000, 000 in cash to be made on
the date of the transfer to Stanforc.. by City of its leasehold interests,
facilities,--and-other property and assets used in the Palo Alto -
Stanford Hospital Center".
AMENDMENT TO AMENDMENT: Councilman Comstock moved,
seconded by Berwald, that paragraph "b" subsection (1) read,
"A payment of $1.6 million dollars".
The amendment to the amendmerii wap defeated on the following
roll call vote:
Ayes: Berwald, Comstock, Pearson
Noes: Arnold, Beahrs, Cooley, .Dias, Spaeth, Wheatley
Abstain: Clark, Gallagher
The amendment then carried by a majority voice vote.
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5113/68
Discussion followed on the financial aspects and City Manage.r Morgan
was asked to comment. He remarked that the financial aspects were
only one of a series of elements that were considered by the nego-
tiating team. One consideration that conrot be overlooked is what
the buyer is willing to pay and that value was part of the total
package which was weighed with the net result that the figures in
the report speak for themselves. He pointed out one element that
tends to be overlooked and that is that upon closing of Hoover Pavil-
lion, when the University builds new beds, it was the negotiating
team's judgment that those beds would enhance rather than dimish
the siteation.
AMENDMENT: Councilman Pearson moved, seconded by Berwald,
that if the number of members on the Hospital. Board are enlarged
that the Palo Alto members shall be increased at the same ratio
as Stanford members are increased.
The amendment was defeated on the followini; roll call vote:
Ayes: Berwald, Comstock, Pearson
Noes: Arnold, Beahr.s, Cooley, Dias, Spaeth, Wheatley
Abstain: Clark, Gallagher
AMENDMENT: Councilman Berwald moved, and it was duly
seconded, that the patient be allowed to retain the option of being
a teaching patient or not.
The amendment was defeated on a majority voice vote.
AMENDMENT: Councilman Berwald moved, and it was duly seconded,
that a provision be incorporated in the contract to the effecS that the
courtesy staff would be extended privileges to all the hospital services.
The amendment passed on the following roll call vote:
.Ayes: Beahrs, Berwaid, _Cometock-, -D iaaj Pearson
Noes: Arnold, Cooley, Spaeth, Wheatley
Abstain: Clark, Gallagher
AMENDMENT: Councilman Spaeth moved, and it was duly seconded,
to resolve further that thin approval of principle in the agreement
assumes the by-laws, related procedure matters, and courtesy staff
admission to all categories will be achieved.
The amendment was defeated on the following roll call vote:
Ayes: Berwaid, Comstock, Pearson, Spaeth
Noes: Arnold, Beahrs, Cooley, Dias, Wheatley
Abstain: Clark, Gallagher
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5/13/68
The main motion then passed as amended on the following roll call
vote:
Ayes: Arnold, Beahrs, Berwald, Cooley, Dias, Spaeth,
Wheatley
Noes: Comstock, Pearson
Abstain: Clark, Gallagher
Cancellation of Meeting
Mayor Dias noted that several Councilmen will be away on May 20
attending League of California Cities rneeting.
MOTION: Councilman Gallagher moved, seconded by Comstock,
that the regular Council meeting of May 20 be cancelled and the
next regular meeting be held May 27.
The motion passed by unanimous voice vote.
Oral Communications
Councilman Berwald commented that his letter addressed
to the Council regarding the hospital was not included in
the public pact ets.
Discussion followed on the ordinance which requires that
any wri.ten communication addressed to the City Council
shall be reproduced and distributed to the City Council.
Mrs. Alice Smith, 4284 Los Palos Circle, spoke on not
being allowed to speak on the hospital matter.
Adjournment
There being no further business, the Council adjourned at 12:55 a. m.
APPROVED:
Mayor
ATTEST:
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5/13/68