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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" 110 S/13/68 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 111 5/13/68 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. 11 5/13/68 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 113 5/13168 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. 114 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. 115 5/13/58 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. 116 3/13/68 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 118 3/13/68 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. 1.1 9 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 120 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: 121 5/13/68