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HomeMy WebLinkAbout03311975Regular Meeting March 31, 1975 ITEM PAGE Minutes of March 10, 1975 1 0 5 9 0ra]. Communications - Non Agenda items 1 (.) 5 9 Consent Calendar - Action Items 1 0 5 9 Foothills Park Fire Protection Storage Facility - Contract 1 0 6 0 Jurisdiction of Architectural Review Board and the Plan- ning Commission 1 0 6 0 Piggyback Program: Amendment to Agreement with Santa Clara County 1 0 6 0 2800 'nest Bayshore - Change of P -C District Development Plan - ONC Freight Systems 1 0 6 0 2650 East Bayshore Sign Approval - Viachrome 1 0 6 0 State of the City i 06 0 County -Wide l iergency Communications System 1 0 6 7 Housing Landbank and Mini Park - North County Courthouse 1 0 6 8 925 Forest Avenue - Miscellaneous Division of Land, Application of Paul E. Nowack 1 0 7 5 Award Council's Hearing on the Refuse Disposal EIR to be held on April. 28, 1975 1 0 7 6 Second Phase Study of the Santa Clara County Rapid Traattt Development Project 1 0 7 6 Request to Continue Several Agenda Items to April 7, 1975 1 0 7 8 Compensation Plan - Dire Department 1 0 7 9 Project Mobility 1 0 7 9 Long -Term Power Supply Proposals 1 0 8 2 Proposed Santa Clara County Transportation Improvement Program 1 0 8 5 Proposed Postal Facility: Joint Resolution with East Palo Alto 1 0 8 7 1975-76 Annual Budget (deferral to Finance and Public Works Committee) 1 0 8 8 Curb Rase for the Handicapped: Award of Constructio=i Contract Project No. 74-99 1 0 8 8 Adoption of State EIR Guidelines 1 0 8 9 Barron Park Annexation 1 0 8 9 Request of Councilman Clay that Council Consider Narconon Palo Alto Proposal for City Purchase of Services to Combat Drug Abuse 1 0 9 0 Oral Communications 1 0 9 4 Adjournment 1 0 9 4 1 0 5 8 3/31/75 March 31, 1975 The City Council of the City of Pala Alto met on this date at 7:30 p.m. in a regular meeting with Mayor Sher presiding. Present: Ceaiatock, Henderson, Pearson, Rosenbaum, Sher, Beahrs (arrived 7:33 p.m,), Clay (arrived 7:34 p.m.), Norton (arrived 8:15 Berwald (arrived 8:17 p.m.) Absent: None Minutes of March 10r 1975 Vice Mayor Henderson stated his preference for "effluents" rather than "effluence" as shown in the corrections for the February 10 minutes on page 988, :;arch 10 minutes. Mayor. Sher requested that the words "or abstention" be added after the word "vote" in the last lire of the sixth paragraph on page 989. He also asked that the extra word "special" be deleted from the end of the second line, third paragraph from the bottom, page 1014. MOTION: Councilman Constock moved, seconded by Henderton, that the minutes of March 10 be approved as corrected. The notion passed on a unanimous vote. Oral Ci cat ions -- :ion- enda Item 1. John D. Snow, 105 Lowell Avenue, stated that the Veteran's Building needed to be brought up to city standards. Re reported that, in particular, the roof was still leaking. Mayor Sher asked if Council were ready to vote on the Consent Calendar I t ass . Councilwoman Pearson requested that Items 6, 7, 9 and 12 be removed from the Consent Calendar. Councilman Clay requested that 3, 4 and 5 be removed from the Consent Calendar. Mayor Sher stated that Item 3, 4, 5, 6 and 7 would appear at the end of Reports of City Manager as Items 25-A, B, C, D and E. Item 9 would be 25P, and Item 12 would be 16-A. Mayor Sher asked for the vote on the remaining items on the Consent Calendar. p.m.), 1059 3/31/75 Items i, 2, 8, 10 and 11 were left for approval on the consent calendar. PoothillS ]Park Fire Protection Storage Facility Contract Award ORDINANCE NO. 2846 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING: AND ADOPTING A PLAN FOR FIRE PROTECTION STORAGE FACILITY AT FOOTHILLS PARK (ALSO KNOWN AS PALO ALTO FOOTHILLS PARK) Jurisdiction of Architectural Review Board and tine Plannin Cum tssion ORDINANCE NO. 2847 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 16.48.020 OF THE PALO ALTO MUNICIPAL CODE RELATING TO THE JURISDICTION OF THE ARCHITECTURAL REVIEW BOARD AND THE PLANNING COMMISSION" Piggyback Pr rata: Amendment to ,grg Ant w!tn 5anLl Clara Count RESOLUTION NO. 5072 entitled ``RESOLUTION OF THE COUNCIL OF THE CI T i OF PALO ALTO OF IN"TEN"TION TO AMEND T" r COOPERATION AGREEMENT WITH HOUSING AUTHORIT1 OF THE COUNTY OF SANTA CLARA (APPROVED BY RESO- LUTION NO. 4879) 2800 West Bayahore Change of P -C District 1)evelapment Plan ONC Freight Systems RESOLUTION NO. 5073 entitled. "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING ORDINANCE NO. 1889 TO MODIFY TUE DEVELOP PLAN FOR THE P -C DISTRICT KNOWN AS 2800 WEST BAYSHORE ROAD, SUBJECT TO CONDITIONS, AND TO EXTEND THE DEVELOPMINT SCHEDULE APPLYING THERETO" 2650 East Bayshore Sign A roval Viachrome Council upheld the recommendation of the Planning Commission to approve the application t f Viachro a for sign approval at 2650 East Bayshore Road, Zone District L -M -D. The consent calendar was adopted on a unanimous vote. fiats: gf ttr City George Sipel, City Manager, said that moat of this year's State of the City Report was an update of last year's reFort. Mr. Sipel presented his "State of the City" message was as follows: 1 0 6 0 3/31/75 "My objective, as last year, is to give you a perspective as you embark upon review of the 1975-76 preliminary budget which will be presented to you tonight. Last year 1 outlined five key areas which the City of Palo Alto needed to address in 1974-75. They were: Comprehensive Planning, Traffic and Transportation, Housing, Social Needs, and intergovernmental Relations. I would like to review our accomplishments in these areas. First, with respect to the Comprehensive Plan, much has been accomplished. The Planning Commission, City Council, community and staff initiated a process of ctudying various planning options. There have been nineteen public meetings on the Comprehensive Plan since April 1 of last year. The staff has expended approximately 10,000 person -hours during that period in helping to define options and analyze impacts on thecommunity. In mid -May or June at the latest, the staff will present the Planning Commission with a draft Comprehensive Plan covering six areas: employment, trans- portation, housing, urban design, parks and schools, and environmental resources, Then the work will really begin. I am proud of what we have accomplished to date and an confident that sometime in the next year a final plan will be adopted. Traffic and transportation has been an area of considerable activity and controversy in the past year. Dial--a-ride began, and with it case a torrent of criticism about the system's inadequacies. If we have learned nothing else from the dial -a --ride experiment, we have found that a lot of people want to use buses. That is encouraging. We must continue to be vigilant and constructively critical of this new system in order to make it responsive to the needs of the public. On a broader plane, efforts were intensified during the past year to plan on a long-range basis for regional transportation needs. In addition to study efforts mounted by MTC and the Santa Clara County Transit District, our own policy -makers and staff have been working on the transportation element of the Comprehensive Plan. Fully, in the area of traffic, Ted Noguchi and his 54,000 unpaid expert assistants have been hard at work. Neighborhood traffic problems continued to plague ,the city. We have been able to tackle (and to some degree alleviate) traffic problems in College Terrace, on Louis Road, and on Newell Road. Other neighborhood problem areas will receive priority attention in the next year. A consultant study has identified a number of hazardous intersections in the community and next year, we will eiubark upon a systematic program to correct these problems in order to prevent traffic accidents. Lest we forget Willow Road, 1 think it is fair to say we have focused on the problem and we have begun to deal with both the need for the road and an evaluation of its impacts. While the housing problem continues to worsen with inflation, the Palo Alto community should be modestly proud of our accomplishments in providing low/moderate income housing. Sines April 1, 1974, 117 new units of low/ moderate housing have been occupied. in addition, construction of the 220 1 0 6 1 3/31/75 unit Lytton Gardens project is nearing completion. A formalized housing landbank program hao been adopted by the City Council, and an initial purchase under this new program is imminent. Conceptual planning of the Webster site was completed. Finally, a long --discussed housing rehabilitation program was adopted by the Council and will be funded with Federal Community Development Block Grant funds. However, even with these tangible accomplishments, 1 can not help but observe with respect to housings that the faster we run -- the behinder we get. Human needs have been an area of intensive study during the year. A community task force has been hard at work and is about to make recommendations on additional programs to meet neede of senior citizens. The Human Relations Commission has been developing a process by which human service needs can be reviewed on a cciprehensive basis. Such a plan is needed in order to define the City's role in social service delivery. The efforts of the Community Child Care Corporation should not go unmentioned. During the year, threw: child care centers have been established in Palo Alto, another part- time center will open in April, and additional spaces haue been developed in family day care homes. Progress has also been made in intergovernmental relations even though much remains to be done. Several cooperative efforts have been undertaken with the City of Mountain View; City/School District relationships have improved, and communication with Stanford is more frequent and productive. Several weeks ago, the Council met with East Palo Alto to discuss mutual problems and out of that meeting came a number of suggestions which show promise. The areas I just reviewed for you tend to be those that receive public attention --- they are in the limelight There is much more to our City government. I would like to tell you some of the things we have accomplished in the past year which do not receive headlines but never- theless are significant factors in making Palo Alto the quality community it is. 1. In order to improve our capability to protect human life, we established a Paramedic program during the year. Twelve firefighters have been trained and certified, end since the end of January, have been on duty around the clock and have responded to sixty emergency calls. 2. We are committed to improving the environment through energy conservation. Since November 1973, by working with the Chamber of Commerce, 1ocel business and industry, and residential customers, electrical energy consumption was reduced by 17.62 and natural gas consumption by 9.62. Within our own organization, in 1974, consumption of electricity has been reduced 20Z, and gasoline consumption 15.72. 3. Productivity in government is stns increasingly talked about subject. Over the pact two years, this organization has established a comprehensive framework which we are using to deal with productivity, Departments set objectives, measure results, and report progress to the City mar, 1062 3/31/75 on a quarterly basis. For the first time in my memory, we have made available to the Council a performance report on City operation: for the first half of the fiscal year. 4. In the last nine months, we have made significant advances in our Affirmative Action program. We now have two women managers in the Police Department, almost twice as many mrinorit,iea in the Fire Department, a woman in management in the Utilities Department, and a woman park maintenance assistant -W just to nave a few. We have made a major effort to review job requirements and our recruitment and selection process to assure that we open the organization. completely to minorities and women in all jobs. We have developed a trainee program that will further open access to women and minorities in non-traditional jobs. I am happy to report that we now have our first female firefighter trainee and three minority trainees on the job as of today. Though statistical progress comes slowly, I am encouraged by the substantive changes we have made in our personnel structure and employee attitudes in the last year and .look forward to increased success in this most important program. 5. We are now in the second year of a highly successful crime prevention program. For the first six months of Fiscal 1975, the Police Z)e.partsnent has made contact with over 175 people in commercial areas and nearly 1,000 people in residential areas. It is interesting to note that the rate of burglaries in areas where we have promoted crime prevention is one per twenty-nine households. This pa;ogram is important i-t light of the continued increase in the burglary rate in Palo Alto. 6: We have added to the capital plant of the City. Perhaps the most noteworthy accomplishment is the Downtown Beautifica- tion project. In addition, however, between July and January we completed eleven capital improvement projects with a value of slightly over $1 million. We anticipate chat by June 30, 1975, an additional fifteen projects, with a value of almost $2 million will be completed. These achievements have been possible in part through an improved project management system. 7. We have responsibilities to our employees that extend beyond the provision of continuous employment, fair salaries, and equitable fringe benefits. We have a responsibility to provide challenging and enjoyable work opportunities; to establish a positime climate within which people can be creative & ad develop in their jobs. During 1974-75, more organizational resources have been devoted to improve- ment in this important area. 8. in a somewhat different area of accomplishment, the staff has collaborated with the City Council in an interesting endurance contest. During the past nine months, the City Council has met as a body thirty-six tines for a cumulative total of one hundred and sixty-three hours. I am not certain whether congratulations or condolences are in order. So much for our peat accomplishments. I would like to take the remainder of my time to discuss the future, a period which I believe will be fraught with tough decisions and say well be the most difficult and challenging period an Palo Alto's history. 1053 3/31/75 Problem number one. Can we maintain present service levels in the face of inflation and in light of limited -real growth in the City's revenue sources? This is a very significant question because the essence of Palo Alto is its park system, its library system, its commitment to first-rate service. People are attracted to Palo Alto in part because of the quality of municipal services. A brief review of our financial condition may be helpful to illustrate the problem. Government, like everyone else, is affected by inflation. The City of Palo Alto is paying r;ore than two and one-half times what it did in 1970 for gasoline. It will cost $15,000 to put a police officer on the street in 1975. The same officer cost $12,000 in 1970. Vehicle costs have sky- rocketed. A pickup truck in the Utility Department cost $3,350 in 1970 and $4,940 in 1975. In past years, General Fund revenues have increased at approximately six percent per year. Expenditures increased as well, but at a rate which continued to a11csw a surplus of revenues over expenditures. Utility consumption, particularly electric, was increasing. There was real growth in sales tax and property tax yields. Several new revenue sources became available J-- transient occupancy tax, cigarette :ax, and federal revenue sharing block grants. At this time, we can no longer expect utility revenues to increase in the same manner as they previously did -- particu- larly now that there is a heavy emphasis on growth management and energy conservation. Sales tax is not likely to increase in a real sense unless there is new commercial development. With only 458 acres of vacant land (excluding the Foothills) available for intensive development, major increases in assessed valuation are not foreseen. Most other revenue sources appear to be peaking out. After reducing operating costs as much as possible without reducing service levels, the 1975-76 Budget recommends General Fund expenditures of $15.7 million, an increase of 3.6%. There are sufficient revenues to finance expenditures. In other words, the budget is balanced as of April 1 However, it should be stressed that several variables exist --- particularly on the expenditure side of the .ledger. Nee, or expanded programs added during the budget review process will have to be funded; and funds set aside for employee salary increases may be insufficient. If this occurs, additional revenue or expenditure cuts will be necessary in order to provide funding for salaries. in order to finance the operating program in 1975-76, it will be necessary to nearly eliminate the sales tax transfer to the Capital Improvement Fund and the Gas Tax transfer to the Street Improvement Fund unless additional revenues are raised. Assuming inflation will continue at eight to nine percent next year, and revenues will increase at roughly five to six percent, an operating revenue deficit can be anticipated. Without capital improvement funds to divert for operating purposes, we will clearly have a problem in 19:6-77. row can we deal with this problem? 1 0 6 4 3/3i/75 First, let me say that I precipitoua actions to re unless major changes in exp now and budget as ptiona program of service which ha time, and, I believe, repres cuts in.that budget will have levels. We do have tine to p do not believe we need to take duce the operating budget this year enditures are introduced between The 1975-76 budget provides a evolved over a long period of ents what people want. Drastic similar effects on service an on a rational basis. As an initial step, we must examine current service levels to determine if some ought to be altered, This is a delicate process because Palo Alto citizens have high service expecta- tions, and, if anything, their appetites are increasing. To assist the Council in this regard, the staff is presently preparing a report which will indicate the effect of a five percent budget cut. For the mast part, these cuts can only be grade by reducing service levels. The purpose of this report will be to stimulate discussion on service level reduction rather than to recommend specific expenditure reductions. Second, we must not increase any servic any new program in 19'5-76 without caref impact of these changes on the City's tot Ve must determine where the dollars are co approving new programs. level or take on ully studying the al financial picture. :ling from before Third, we should refrain from building new c which will require ongoing operating costs w what these costs will be and how tt+ey will be apital facilities ithout knowing met. Fourth, we ought to review existing revenue sou determine whether increases should be. wade. On area where an increase might be considered as ea July is the Electric Utility. A special report i prepared on this subject. rces to particular rly as s being Fifth, as painful and unpopular as this might be, I believe the Council, during the next year, should begin to consider a property tax increase. The present tax of 74a per hundred is the lowest in the state fcr a city.providing the variety and levels of service that Palo Alto does. In addition, we should look at other revenue sources. Sixth, the Council should insist that the staff intensif efforts to be more productive -- to be more efficient an effective in the delivery of municipal services. In orde to do that, however, department managers should be freed f heretofore heavy responsibilities to implement new program and respond to unanticipated fire --fighting expeditions originated by the Council or the community. In this whole ?rocees, I eee the need for heavy citizen input to get opinions on service levels, whether new programs ought to be initiated or old one* dropped and, most significantly, to lower public expectations that we can continue to do everything we have in the pent without increased cost. A second major problem ---- related to the first --- is how to finance needed capital improvement*, In the past two decades, the City .%s funded capital projects for both general 1045 3/31/75 y its d r reel 1 government and utilities on a pay-as-you-go basis with one exception: the Water Quality Control Plant. With the likelihood that little new money will be available for capital purposes, some change in policy will be necessary. First, I would suggest that the Council take ' hard look at what capital improvements ought to be funded. Many of the projects in the program were conceived in a period when funding was not a problem, and, quite frankly, are icing on a very substantial cake. Second, the pros and cons of bond financing for general government and utility projects ought to be studied carefully before that alternative is pursued. The Council has an opportunity to work on this problem in the immediate term becauee the Capital Improvement Program is presently being reviewed by the Finance and Public Works Committee. A third major problem relates to the Electric Utility. This enterprise is Palo Alto's largest. The operating budget will be $10.3 million In 1975-76. A significant revenue producer, the Electric Utility will provide $3.7 million to the General Fund, or. 23.5' of that Fund's requirements. A major reason for the financial success of the Electric Utility is the availability of low --cost power from the Bureau of Reclamation. In approximately eight years we will have reached the 11 1t of the power that is available from the Central Valey Project. Therefore, we must intensify our efforts to find supplementary sources of low-cost power. Recent discussions with other cities in the Northern California Power Agency have led us to consider three alternatives: geothermal steam, participation with the Sacramento Municipal Utility District in construction of a nuclear plant, and participation in a similar facility being planned by the Los Angeles Department of Water and Power. In the near future it will be necess aby to decide whether to pursue any or all of these possibilities in order to insure a long --tern low-cost power source. Solutions to this problem and others aaisociated with the utilities will require a heavy commitment in time and effort by the Council and staff. The fourth problem relates to solid waste and has both immediate and long-term implications. The immediate term problem is where will the City deposit roughly 100,000 tons of refuse annually over the next six years? This problem was precipitated by the Army Corps of Engineers' requirement that we apply for a permit to fill land in the Baylands. Basically, we have three alternatives: 1) Continue to till at the current location. If this alternative is selected and the Corps grants the permit, it will be necessary to provide a mitigation measure. 2) Establish a second lift; that is, construct a sanitary landfill operation on land previously filled. This eliminates the need for a Corps permit and accompanying mitigation measures, but will create environmental and aesthetic problems. 3) Abandon all fill operations in Palo Alto and enter into a contract with Hountiiin View or Menlo Park to deposit refuse at their diepootal sites. All of these alternatives have one thing in common. They cost at least $120,000, or 60% more, annually than the present operation. Each alternative has its favorable and undesirable features which will make any action controversial. At leant ten federal, state, and local agencies will have an interest in this issue. In April, the Council will be,asked to 'aka a decision from among these three alternatives. 1066 3/31/75 With that decision made, we must then focus on the long-term solution to solid waste disposal which could require capital investment on the order of $10 million. For the past year the staff has been working on this problem and is analyzing the possibility of a comprehensive system of resource recovery and power generation. Unfortunately, while published information about successful, sophisticated refuse disposal systems is abundant, the reality is that much of the technology is still in the development stage. Solid waste disposal lends itself to regional solution. Therefore, as we begin to assimilate information on the subject, it would behoove us to develop some dialogue with adjoining communities. In the past twenty-five minutes, I have tries; to identify some major problems with which we will have to deal in the next several years. Add to them such problems as, growth management, traffic and transportation, housing, meeting the needs of senior citizens, and it adds up to a tall order for the Council, staff, and community. We will make a positive impact on these problems if we allocate substantial time and use it wisely - listen to each other -- and work together in a constructive fashion." County -Wide 'rs�er a Comunicatios S eaten (CMR:232:5) Corrected See pg. 1157 Vice. Mayor Henderson, Chairman of the Finance & Public Works Committee, noted that the minutes of the Committee meeting in regard to this matter raised a number of questions, and more questions were raised by staff reports. Since Robert Sorensen, Director of the County General Services Agency, and T. I. Dayharsh of Stanford Research institute had no opportunity to see those questions, they were unable to make responses. Vice Mayor Henderson said that the Committee questioned whether the county would provide the high: level of service that the city now enjoys; therefore, it decided to hold the subject in Committee pending answers to staff questions and receipt of a more detailed analysis of the matter. According to Vice Mayor Henderson, a joint communications effort should be made with neighboring cities. It is necessary to eliminate the present situation whereby a city providing its own communications system would also have to pay for a county sysste. Palo Alto operates its own system, and county funding should be made available for that. Vice Mayor Henderson commented that San Jose operates its own communications system, and the county bears the cost. MOTION: Vice Mayor Henderson introduced the following resolution and moved, on behalf of the Finance and Public Works Department, its adoption: RESOLUTION NO. 5074 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO REQUESTING THE BOARD OF SUPERVISORS OF SANTA CLARA COUNTY TO PROVIDE COUNTY FUNDING FOR EMERGENCY COMMUNICATIONS AND DISPATCH SERVICES OPERATED BY THE CITY OF PALO ALTO" AMENDMENT: Mayor Sher moved, seconded by Pearson, that language be added to the second "whereas" in the resolution to make reference to the fact that the city uses its communications systems for more than the emergency services contemplated in the county -wide system, for example, utility services and animal control. 1 ©6 7 3/31/75 The amendment passed on a unanimous vote. The resolution as amended was adopted on a unanimous vote. 1 Corrected Sec pg.1157 r 8 MOTION: Vice Mayor Henderson moved, on behalf of the Finance and Public Works Committee, that staff preliminarily confer with the cities, relative to a North County center, and determine their interest in a joint powers agreement to operate such a center and communicate with the county at the same time their interest. The motion passed on a unanimous vote. Hottain Landbank and )fini Park -- rt. Count C• + . s �' : 33:5) (CM:243:5) & (CMR 139:5) Vice Mayor Henderson, Chairman of the Finance and Public Works Committee, noted this action was initiated by an offer made by Mr. Dan Power to cell five parcels located within Grant, Ash, Sheridan and Birch Streets, to the city for the development of low/moderate, income housing. Vice Mayor Henderson pointed out that this is ore of the highest density areas in the city, and it also has one of the highest ratings for low/moderate income housing. Contacts made with county administrators and the Board of Supervisors indicate that the county is not willing to sell its land in that area at the present time. However, the county has shown interest in exchanging an equivalent amount of their property at Grant and Ash for city property at Birch and Sherman for the development of a mini -park. Vice Mayor Henderson commented that Council members had copies of the very comprehensive January 30, 1975 staff report, the Finance and Public Works Committee minutes, a letter from Harold C. Hohbach of the Court House Plaza Company, and the staff response to Mr. Hohbach's communicattot . Mr. Hohbach spoke in his letter of the plans to add six stories to the four-story Court Rouse Plaza building and the need for more parking spaces. Vice Mayor Henderson reported that the Committee agreed to purchase the Power property for landbanking with the hope that the county land night become avaiial.le. In Committee, Councilman Berwald added the condition that the low/moderate income housing be used exclusively by the elderly. MOTION: Vice Mayor Henderson moved on behalf of the Finance and Public Works Committee that: Council approve the lendbanking of that property known as Power Parcels and described in the otaff report of January 30, 1975 and that this development be solely for low or moderate income elderly. Ate: Vice Mayor Henderson moved, seconded by Pearson, that the words "and that this development be solely for low or moderate income elderly" be deleted. Councilman geahrs stated opposition to the went since he considered the location completely inappropriate for family housing. He said that traffic congestion, lack of access to recreational facilities, and other factors were all very important. Counci1voaan Pearson commented that this site tied been recommended - by the neighbors as a good one for family type development, and there were already some children living in that area. In her opinion, there were not an intense number of cars in that immediate vicinity, and there were bicycle routes leading to two nearby parka. Councilwoman Pearson felt the Housing Corporation should have as any option open to it as possible. That group can decide whether the development 1 0 6 8 3/31/75 should be a family one, for the elderly, or a mixed situation and come back to Council with its recommendation. In the meantime, Councilwoman Pearson saw no reason to restrict the development to one that would be for the elderly. Councilman Clay asked for an opinion from the Housing Corporation. Kermit M. Knopf, speaking for the Housing Corporation, said the Corporation would like to have the options kept open; but the site appeared to be very appropriate for the elderly. Councilman Berwald observed that both the Housing Corporation and the Planning Co ission considered this site very appropriate for senior citizens housing. Mrs. Steinberg pointed out at the Planning Commission meeting that this site was a good one for the elderly because of its proximity to shopping and transportation facilities. Since the elderly are those who are most penalized by inflationary impacts, limited income, and the inability to find employment, Councilman Berwald felt if staff were going to entertain proposals for this site that they be for housing for senior citizens. This would make the planning assignment and the aims much more clear. The a^endY'ent passed on the following vote: AYES: Clay, Henderson, Pearson, Rosenbaum, Sher NOES: Beahrs, Berwald, Comstock, Norton AMENDMENT: Vice :Mayor Henderson moved, seconded by Beahrs, that the following wording be added, after "January 30, 1975" "and that the staff be authorized to negotiate the purchase price and that the price not be more than the appraised value". The amendment passed on a unanimous vote. Mayor Sher stated that the motion as amended was before Council. Councilman Comstock pointed out that there was a letter from the Midpenin.aula Citizens for Fair Housing which supported the action taken by the Committee. Letters from staff responding to correspondence that had been received clarified the parking issue and the intentions of the Baptist Church at the present time. Councilman Beahrs opposed the motion as amended because there was strong feeling that this parcel of land could not be economically and aesthetically developed unless the city also could acquire the county land. He expressed concern over the city's long delays in taking action on housing projects. Huge bills had been run up in the past; for instance, $140,000 was involved in the Webster Site concept which is a combination of loss of interest on the money and the cost of experts and staff time. Councilman Beahrs felt Council should be discussing having available lands developed as private projects. Councilman Norton referred to the letter from Hr. Hohbach of the Court House Plaza Company and asked if that company had the right to make its building a ten -story one in the future. Further, Councilman Norton seduced from the letter that Mr. Hohbach aspired to using some of the nearby lands. 1 1069 3/31/75 Nephtali Knox, Director of Planning, responded that the Court House Plaza Company has an approved plan which would allow a ten story building contingent upon construction of 371 parking spaces and completed construction of the building by 1976, which is the development schedule for the property. Like all planned community proposals, this one could be subject to modification by application from the developer to the Planning Commission; and Council would have to approve my change. Mr. Knox recalled that the applicant was interested in persu?.ng the completion of the building to its full height. However, the applicant had proposed a modification that would have made the building a few feet over the approved height limit; and that would require a change in the P -C plan. The applicant declined to pursue such a change, Mr. Knox explained thet the ordinance which approved the Court House Plaza requires 311 parking spaces in a seven -story garage; however, there were sume qualifications regarding the future alignment of Page Mill Road. The ordinance was amended to allow only 107 parking spaces staffed by attendants. This parking lot was to be located .across the street from the building; but for various reasons, the attendant parking lot never came into being. The main reason was because the alignment required by the county necessitated the taking of twenty-two spaces that would have been in the lot, so it could not be _ffectuated. Mr. Knox noted that one of the thrusts of the letter from the Court House Plaza Company was that because of these changes that had taken place, it would not be possible for then to proceed with the 371 parking spaces. If the applL:ant .art not meet the number of parking spaces required in the P -C plan, then he cannot construct a ten -story building. The developer of the Court House Plana building has been looking for alternatives to the 371 space parking structure, and that is why he is interested in the Power Parcels - Mayor Sher invited the publi. to addfass Council on this agenda item. Joan Johnston, 613 Cede, Way, Stanford, spoke on behalf of The League of Women Voters of Palo Alto. Ms. Johnston said that the League has always believed that the city should encourage the private sector to be involved in the development of lower income housing. Therefore, if it were feasible, the League hoped that Mr, Power would enter into a joint venture with the Palo Alto Housing Corporation to develop housing on his lots on Grant and Sheridan Avenues. Ms. Johnston added that if a joint venture were not practical, the League would urge Council to approve laadbanking of the Power Parcels. She noted that there is so little land available in Palo Alto for lower income housing that it is imperative for Council to take steps to conserve these parcels offered to the city for housing. Mayor Sher commented that with regard to the landbanking issue generally, he was concerned as to whether there would be any immediate or short term prospects for state or federal program to help finance low/moderate housing developments. Mr. Knox stated that there is no specific federal funding project for development of this or any other property. At the time the Webster property was purchased, the city was counting on the federal 236 programs which subsidized the construction of developments, Then rents were derived from the developments which were theoretically low enough to provide housing for low/moderate income families. That program has been scrapped in favor of a program that subsidizes people rather than developments, Mr. Knox said that staff did not know in which direction the state program might go. The state might decide to do something similar to the 236 program which the federal government utilized, or it could decide on people subsidy program. 1 0 7 0 3/31/75 In the staff's view, the purpose of the landbanking program would be served by the proposed purchase of the lower property since the purpose is to hold such land until a suitable package could be put together. As the result of a Council assignment, Mr. Knox said that staff would be reporting in mid -April on hew the program could be combined with private finances in the Webster block situation. That report might give some guidance as to how to proceed on the Power Parcels. Mayor Sher remarked that he was in favor of the landbanking, program as long as there were some reasonable prospect of the land being put to the use for which it is banked, and that would be housing. Landbanking too many parcels might put the city in the position of selling some of the land in the future for the best price, and the use in such a situation could conceivably be a high density one. Mr. Knox commented that the purchase of the Lytton property and the Webster property occurred before he came to Palo Alto, but it was his understanding that those purchases were made in response to the availability of particular properties. Mr. Knox pointed out that if the Power Parcels were purchased, they would be the first lands purchased under the landbanking program. Mayor Sher responded that his concern was that the land, if purchased, actually be used for housing; but he agreed that the parcel in question was a likely one for this use, Councilman Clay expressed concern about there being an indeterminable amount of time before the city would be able to do something about the land. He asked why a joint agreement between Mr. Power and the Housing Corporation to develop the land was considered to be impractical. Mr. Knox explained that Mr. Power was in the heavy construction business, and his company was not really a building contracting one. Mr. Power's first choice would be to sell the property to the city. If that is not possible, then he would probably be willing to use what construction knowledge he had to put something together-: Councilman Clay felt that Mr. Power would be a suitable partner. He asked whether or not an option on the land had been considered. Mr. Knox recalled that options in general had been _onsidered in the May, 3974 Housing Landbank Report: Anyone giving an option on land had the desire to have a significant measure of control over the land, Mere were discussions about leases and other methods of acquiring development rights, and it was recommended by the Planning Commission and the Finance and Public Works Committee that land for landbanking be purchased on an outright basis. Councilman Clay was concerned about the cost involved over some indefinite period of time on $200,000 at 8s% interest. He commented that the land Colorado Park is on was an option situation; and he said he would feel more comfortable with an option again, assuming that the city would not be able to build anything for at least two years. Mr: Knox said that an option system works well on a short-term basis when the city knows it wants to take an option and deliberate for two to three months. However, the longer the option period, the bigger the cost An option that would cover a two to three year period would require a very high sum of money. 1 0 7 1 3/31/75 Councilman Clay thought perhaps the owner might be willing to develop the land with a mixture of market and below -market value housing if the city gave something in return for such an effort. Councilman Berwald stated that he wanted to have the Power Parcels developed for the elderly, and he was willing to speculate a bit for that purpose. He pointed out there was no assurance in the foreseeable future that there would be funding for the project. Councilman Berwald said he did not know how he would vote on this issue, but he wanted to state some of the things that would weigh on his mind as he made the decision; Hr. Knox's comments prompted Councilman Berwald to recall the development of the Webster House. At the time of the purchase of Webster House, ;.he development was intended to be for a mixture of market and low-priced horsing. Councilman Berwald and Peter Stone, who was City Attorney at that time, determined from representatives of HUD in San Francisco that such a mixture would be feasible. What happened was that the city delayed so long in developing anything that the funds ran out. Another thing on Councilman Berwald's mind was that he felt Council was a bit curt in not seriously ccnsidering the Harrington £ Kulakoff proposal last week. A third aspect that Councilman Berwald would take into consideratirn before he voted was whether or not the funds being poured into HUD programs would result in decent housing for Americans at a price that could be afforded. His own feeling was that this was an area where private enterprise could do better. He noted that the lessee of the Old Police and Fire Building was still having a few problems, and the Webster House was still lying fallow. Councilman Berwald felt there was ,a serious question as to whether the city was being just by proposing to invest public funds in this property at all when there was ne assurance about how the property would be finally used. If Councilman Berwald voted for this motion, it would probably be because he believed the good judgment of the Planning Commission and the Housing Corporation would prevail. Possibly the land would be developed for the elderly, which was Councilman Eerwaid's desire; and federal funds might become available. He asked if the money invested in this development might be recouped and p1aeed back in the Landbank Program. Mr. Sipel answered affirmatively and added that the city would try to follow the same pattern that had been used for the Lytton property. Councilman Berwald asked how staff felt about the availability of funds from the federal government for housing for the elderly or low --income housing in general. Mr. Knox said that answers would be forthcoming, but he could say that there were some funds available exclusively for housing for the elderly. There is no federal money available for family housing. Staff did not know whether the state would go in the direction of subsidizing housing or subsidizing people. Mr. Knox stressed that under the 236 program, the approach was to write down the cost of money so that the building could be constructed for less; and whatever rents were derived from that particular cost of the project presumably accommodated the low/moderate income family. The present system allows the market system, and whatever monies are available in the market, to work It takes a combination of a designer, a builder, an entrepreneur who puts things together and provides some front money, and a management property to build one of these projects. Then the rents are established based on the economics of the market place, and the federal government steps in with the Section 8 program. For example, suppose you build _a market project, and you have good avail- able financing from local banks, and you end up with a rental of $350.00 per month. The federal government has a policy under the 1 0 7 2 3/31/75 Section 8 program that states certain families at 80% of the median income of the community can obtain housing in the project and pay 25% of their income for rent. If a family's qualifying rent under Section 8 were $250.00 per month, the federal government would pay the difference to the developer of the project. The amount of subsidy money varies from family to family depending upon income. Councilman Berwald asked if this program required that the property be owned by the city. Mr. Knox responded negatively and said the implication was that the deal would be between a private developer and the federal government. The city simply provides its good offices in seeing that the project gets under way. Mr. Knox added that things are brighter now in terms of aid programs than they have been in the past two and one-half to three years. He pointed out that the city had owned the Webster property for just six months when the freeze WAS put en 236 funding. It would have been impossible to have had housing constructed before the freeze occurred unless the city had had a detailed plan ready at the time of purchase. Councilman Berwald concluded from Mr. Knox's comments that one of the purposes in purchasing the property is to give the seller the benefit of a quick sale and to .,ubsidize a prospective purchaser, which may not be necessary< What the city was doing was buying the property to hold on to.it until someone came along to _develop it. Mr. Sipel agreed that the main objective was to take the property off the market, hold it until there is a developer, turn the land back over, and consider writing down the value of the land until the subsidy was a reality. Councilman Comstock stated that he would vote for the motion. Given the current state of finances available in terms of programs, this is the most likely development possibility in the short-term future. Also, the proposed type of housing is not the kirtd that has received criticism from residents in the community. Councilman Comstock pointed out that the problem a nose -profit sponsor faces is the lack of resources and the ability to secure land and hold it. The city is ab0.e: to participate in these kinds of projects by providing the land at a feasible cost. Councilman Comstock felt this was important to remember in this case. The city =.ras not just simply relieving somebody of the laced, but the city was buying the land with the understanding that people who sponsor these kinds of projects need time to make their plans and develop their proposals under favorable financing. The very favorable financing, of course, affects the cost to the occupants of the units. Councilman Comstock said there was a tendency to believe that other cost economies were achieved in construction, but that was clearly not the case. Construction standards are specified by the City's housing and building codes not only for these types of buildings but for the entire community. Beyond ehese, the key element is management. Councilman Comstock noted that one could look at Colorado Park and Bayshore Apartments to see exar 1es of good and bad management, respectively. Be streeaed that it would always be important for Council to exercise great efforts to be sure of good management in such projects. Councilman Comstock went on to say that the private sector's problem would be one of money. A private developer could work only with money that would be available, and banks - being another private sector enterprise - will loan money at the highest possible rate. Therefore, it would not be possible for n private developer to come up with the type of housing, that 'hats been set forth as one of the community's objectives. The Webster site was an example of this very thing. The developer had a project in mind that reflected the financial situation they had to deal with, 1 0 7 3 3/31/75 A and they had no choice but to provide expensive town houses. Councilman Comstock encouraged his colleagues to vote for this issue and to think about it as a problem that would be a little easier if the city had the kind of cooperation from the state and federal governments that it used to have and expected to have again. Councilman Comstock felt that Palo Alto, California, and the rest of the nation =ou1d have plenty of problems if the former programs were not reinstated. Councilman Beahrs was less favorably disposed to this proposition now that he heard the arguments. He felt that ovee the months Council had demonstrated a highly inflexible and uncompromising outlook, and now he heard from the Director of Planning that the federal programs will be geared to market developments, Mr. Kulakoff had mentioned that he had to scrap the concepts that this Council had developed in order to have an economically viable project, and Hr. Kulakoff had more experience in these matters than the Council had collectively, It disturbed Councilman Beahrs that the Council refused to be open minded and consider the economic factors in developments of this type. The net result is that unrecoverable expenses are run up, and those expenses are those of the taxpayers in the community. Councilman Beahrs did not think that Council would be ready to cooperate with the developer if he had to operate within the constraints of the market, AMENDMENT: Councilman Clay moved, seconded by Beahrs, that the ultimate use of this land be reconsidered in one year pending availability of funds and development of a proposal for low/moderate income housing. Vice Mayor Henderson asked if Councilman Clay had in ;kind that if he saw nothing an the horizon at that time that the land would be sold. Councilman Clay responded that would be one of the objectives, and he said he was concerned about buying the land and doing nothing. The amendment passed on the following vote: AYLS: Beahrs, Berwald, Clay, Comstock, Henderson, Rosenbaum, Sher NOES: Norton, Pearson The motion as amended passed on the following vote: AYES: Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Beahrs, Berwald, Norton MOTION: Vice Mayor Henderson moved on behalf of the Finance and Public Works Committee that Council authorize the staff to suggest to the Board of Supervisors that it co3nsider an exchange of the property at the corner of Ash and Grant for the city property at Birch and Sherman and that the basis of the exchange be developed by the staff as recommended by the Planning Commission. The motion passed on the following vote: AYES: Berwald, Clay, Comstock, Henderson, Norton, Pearson, Rosenbaum, Sher NOES: Beahrs 1074 3/31/;5 MOTION: Vice Mayor Henderson moved, seconded by Comstock, that Council find that this project will have no significant adverse environmental impact. The motion passed on the following vote: AYES: Berwald, Clay, Comstock, Henderson, Norton, Pearson, Rosenbaum, Sher ABSTAIN: Beahrs nr��r A del eons ivi pion of Land, Application of 'aul . Nowac Anne Steinberg, Member of the Planning Commission, reported that the Commission recom ended denial of Mr. Nowack's application. Paul Nowack stated that he was asking for a slight variance that involved about 450 square feat. He noted that the Planning Cos*t.isaion turned down the owner's request because it was concerned that a precedent would be set for other properties, and Mr. Nowack felt that each property should be considered on its own merits. The Planning Commission alga considered what the granting of the application would do with regard to tax appraisals in the surrounding area, and Mr. Nowack did not think this was a legitimate argument. Appraisals were usually made under the market value, not over it, He asked Council to approve the application. MOTION: Councilman Comstock moved, seconded by Rosenbaum, that Council uphold the recommendation of the Manning Commission and deny the application of Paul E. Nowack for a miscellaneous division of land at 925 Forest Avenue. Vice Mayor Henderson asked what the situation would be if the lot were the full 75 feet x 200 feet; and if that were the case, would special action need to be taken to approve a second house on the lot. Mr. Knox stated that the let would require 100 feet of depth; and, in addition, rear lots me4st have twenty percent more area than front lots. The lot in question is shy by 450 square feet, If the lot met the requirements of 7,200 square feet and had the required depth, there would have to be unusual circumstances for denial of the application. On the other hand, Mfr. Knox pointed out that since the line is drawn at definite figures and the lot under discussion is less than those figures, he had no choice but to recommend denial of the application. Councilman Beahrs felt there wcn..ld be nothing offensive about putting another house en this lot, and he was all for making use of the land in the community. Councilman Berwald thought the fair thing to do would be to get a report from staff on the recent history of how many exceptions had been approved, etc. He asked if it would be possible to continue this item until Council received that hind of information. Mr. Knox said that the figures were readily available as to the number of variances in lot splits, but a problem would arise in finding out how many of these were granted on an appeal basis. He commented that such research might take a month or two. X075 3/31/75 Mayor Sher asked the applicant if he would be willing to have his application continued. Mr. Nowack responded affirmatively. MOTION: Councilman Bervald moved, seconded by Beahrs, that this item be continued for thirty days in order for staff to provide information on former actions on flag lots. Councilman Comstock asked Councilman Berwald to withdraw his motion. He said the issue is whether or not Council wanted to make an exception as described in the report which each Council member had. Councilman Comstock thought it might be a better idea to have the item continued for one week and have interested Council members go look at the property in questions Personally, Councilman Comstock was prepared to draw the line and deny the application. Councilman Beahrs said he would support the motion because he was hopeful that Council would demonstrate a degree of consistency in its attitude on some problems. Vice Mayor Henderson stated he w_ .id be more comfortable if the matte=r were continued for a week or two, and that might be enough time for staff to come up with the action that was taken or; flag lots over the last few years. MOTION RESTATED; Councilman Bers:ald moved, seconded by Beahrs, that this item be continued for two weeks in order for staff to provide a simple report on former actions on flag lots. The motion passed on the following vote: AYES: Beahrs, Berwald, Clay, Henderson, Sher NOES: Comstock, Pearson, Norton, Rosenbaum Council's Hearin on the Refuse samosa LIR to be Held cu Aril i8. 1975 Mrs. Steinberg explained that several members of the Planning Commission would be attending a Planning Convention on April 14, 1925; therefore, the Commission 'recommended that the hearing date for the Refuse Disposal E.1R be changed from April 14 to April 28. MOTION: Mayor Sher moved, seconded by Comstock, that the public hearing on the Refuse Disposal RTR. be set for April 28 instead of April 14. The motion passed on a unanimous vote. Second Phase Stud The reccasaerdaticr* as it came from the Planning Commission was that a second phuse study of the Santa Clara County Rapid Transit Development Project be undertaken which would include the following: a) The analysis and design of both the rapid transit and the collection -distribution systems as an integral project to properly 1076_ 3/31/75 consider system interactions with the understanding that the collection- distribution system would be implemented at an earlier stage than the fixed guideway. Combinations of collection -distribution and rapid transit systems :should be evaluated. Alternatives for the collection -distribution system, other than demand responsive buses, should be considered and cost -benefit analyses should be given for alternate systems. b) Land use impacts for the transit system should be identified, including any growth -- inducement effect, to aid planners in achieving desirable urban development patterns. c) Regional transportation ccnnections should be determined. d) We make no recommendations on corrido.s for fixed guideways at this time since we need to know how the collection --distribution system will perform and how that :system will interact with the guideway system. Councilwoman Pearson counted that she was very glad this matter went to the Planning Commission because it came up with good recommendations. Councilwoman Pearson referred to paragraph b) and said she thought it was important to add the words "shifts plus growth" since that could change the whole complexion of an area around a fixed -guideway system. Referring to paragraph d), Councilwoman Pearson thought language such as the following should be added: "Furthermore, no fixed -guideway system nay be approved by the -transit District without Planning Commission and Council approval of the jurisdiction involved". Also, Councilwoman Pearson felt that Commissioner Peter Carpenter made a good point when he mentioned the 3% maintenance for the system. Probably the maintenance cost would be more like ten percent, and Councilwoman Pearson wanted a review of the projected three percent cost so correct numbers would be available. The impact on the assessed value of land near fixed -guideway routes was talked about rather obliquely with regard to whether the value of such land would go up or down. Councilwoman Pearson said it was very important that the value remain stable or that Council has some control over what happens. Another point was that there should be an EIR on the total system,,and that should be stated very plainly. MOTION: Councilwoman Pearson moved, seconded by Sher, that Council uphold the recommendations of the Planning Commission with the following changes and additions: in paragraph b) "plus shifts and growth" should be added after "growth -inducement effects"; In paragraph d) the words "however, no fixed guideway system may be approved by the Transit District without permission of the City Council of the jurisdiction involved" should be added at the end; There should be a review of the projected 3% operating costs of the system, a method of controlling the assessed value of land over the fixed guideway routes, and an EIR total evaluation of the system. Councilman Rosenbaum stated that he wanted to be sure that all of this information would be sent to the Transit District. 1077 3/31/75 Mayor Sher agreed that this would be done. 1 1 Councilman Beahrs referred to Mr. Knox's comment that notwithstanding the dynamics involved in this matter, there would be a tendency for the whole problem to stabilize. He asked Mr. Knox to reassure him on this point. Mr. Knox responded that his opinion was tha result of attending meetings where he had heard experts on transportation state that the automobile would be around through the year 2,000. He said he did not know how important that particular discussion is in relation to the whole question of the Phase 11 development project. Mr. Knox thought the main issue is the importance of bringing along the planning of the collection -distribution system with the fixed - guideway system. Staff's concern wail that if route decisions were made without the concurrent development of a collection --distribution system and the fixed -route system did not work, you might find that more fixed -guideways were needed. That would not be very satisfactory. Councilman Beahrs commented that at one time Los Angeles County had a good transportation system. It had gotten out of hand, and Santa Clara County was just a smaller Los Angeles County in his opinion; and the probees are much the same. Councilwoman Pearson agreed with Councilman Beahrs that Palo Alto was just about ten years behind Los Angeles. One way that Council could help the situation would be to vote against such projects as the San Felipe project and the Dumbarton Bridge because they are growth inducing. The Planning Commission recommendations with the additions suggested by Councilwoman Pearson passed on the following vote: AYES: Berwald, Clay, Comstock, Henderson, Norton, Pearson, Rosenbaum, Sher ABSTAIN: Beahrs Reouest to Continue Several MOTION: Mayor Sher moved, seconded by Berwald that the following agenda items be continued until April 7,-1975, at which time they will appear on their regular place on the agenda: Item 3 - Ordinence regulating awning and window signs; Item 4 - Award of construction contract for traffic signal installations and modifications; Item 6 - Award of consultant contract for an alternative road system for California Avenue industries; Item 7 - Proposed contract and license agreement for the electric distribution grid coordinate maps; Items 17 -- Human Relations Commisei.oi reeds that Councll suppert AB 891 (Chacon) amending the Rumford Fair Housing Act; Item 20 - Resolution re second year funding for alternative police investigatory procedures for rape. The notion to continue these items to April 7 passed on the following vote: AYES: Beahrs, Berwald, Clay, Henderson, Norton, Pearson, Rosenbaum, Sher NOES: Comstock 1078 3/31/75 t'o ation F'„% -Fire DePa rt� m�e , (CtiR: 235 :5) Jay Rounds, Director of Personnel Services, said he was pleased to bring before Council recommendations about the settlement which has been reached with the International Association of Fire Fighters, Local 1319. Mr. Rounds pointed out that it Would be necessary to mike an amendment to the budget to provide the funding necessary for the program for January -1, 1975 through June 30, 1975, and that sum of money will be between fifty and seventy-five thousand dollars. MOTION: Councilman Comstock introduced the following resolution and moved, seconded by Pearson, its adoption: RESOLUTION NO. 5075 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PA1,O ALTO ADOPTING A COMPENSATION PLAN FOR FIRE DEPARTMENT PERSONNEL (EFFECTIVE DECEMBER 24, 1974) FOR THE BALANCE OF FISCAL YEAR 1975--75 AND A PORTION OF FISCAL YEAR 1975-76, ENDING DECEMBER 20, 1975" Councilman Berwald said he could not recall having discussed raising the lifetime major medical limit from $50,000 to $250,000. A presentation had been made referring to minor changes in the health plan; but if there were ever very many $250,000 claims, the city would be broke. Mr. Rounds explained that this was being handled through an to the contract which provides for insurance, and the amount in the report will be the annual premium figure to purchase additional insurance. The program is a totally insured one of making a move from the level of $50,000 to $250,000, amendment quoted this in terms Councilman Berwald asked if the premiurns would go up sharply if there were several bad experiences. Mr. Rounds responded negatively. He said this is a level that provide a tremendous amount of security for the employees, and it is unlikely that any claims would ever reach $250,000. Mayor Sher noted that the city and the representatives of Local 1319 of the International Association of Fire Fighters met with each other over a long period of time, and everyone was delighted that a settlement had been reached. Frank A. Fiala, President of Local 1319, was in the audience; and Mayor Sher thanked him for his part in the negotiations. The motion passed an a oeauimous vote. j rotect Mobility (Q 8:229:5) Mayor Sher noted that the staff report dated March 27, 1975, indicated that staff had been working with Councilman Rosenbaum on ways to make use of the money budgeted for this purpose. Ted Noguchi, Traffic Engtneer, pointed out that the staff report of February 18, 1975, stated that staff would continue to work with the county and the Yellow Cab Company to develop a project that 1 0 7 9 3/31/75 1 1 would provide implementation of Project Mobility. For a while, there was a stalemate because of Iit.igaticn between the Yellow Cab Company and the Transit District. Mr. Noguchi reported that a number of alternatives had been explored; and of those alternatives, staff felt there were three which deserved attention. Staff studied those three in detail and decide=d that the use of the current cash system could be best utilized for Project Mobility. Coupon books would be used having a face value of $10 each and containing script dernoninations valued at from five cents to fifty cents. The scripts would be purchased by the city and sold to mobility impaired senior citizens at a nominal return to the city, and a key policy question is to what degree the city wants to subsidize Project Mobility. Staff's recommendation was that the $10 coupon books be sold to the user for $1. Mr. Noguchi stated that the staff's recommendations for this project were as listed in the report dated March 27, 1975. Councilman Rosenbaum recalled that the city had agreed to a contract with the Yellow Cab Company, but then the County Transit District was ready to negotiate buying the cab company; and on the advice of their attorney, the cab company decided to not enter into the contract with the c.it.y. It seemed to Councilman Rosenbaum that since the city had the money for this project and the cab company was willing to provide service ii: a contract were not involved, an arrangement could be made to have the mobility impaired senior citizens use the cab service; and the city would reimburse them in some way. Councilman Rosenbaum thanked Mr. Noguchi for working out the specific way in which this could be done. MOTION: Councilman Rosenbaum moved, seconded by Mehra, the staff recommendations as follows: 1. That the Yellow Cab Company's existing script/coupon hooks be utilized for "Project Mobility". 2. That the City cash subsidy for each $I0 coupon book be established at $9. The City's return of $1 per book will permit the City to purchase one additional $10 coupon book for every 10 coupon books sold to mobility - impaired seniors. 3. That each eligible mobility -impaired senior citizen residing in Palo Alto and duly registered with the City be entitled to two $10 coupon books per month. This entitlement will provide approximately 8 one-way trips per month to each user based on an average fate of $2.00 per trip plus a 50c tip needed to encourage the cab driver to provide the necessary physical assistance to the user, This recom- mendaticnais based on recent discussions between the full Council and staff in regard to this program. 4. That the project be financed entirely with the $20,000 previously appropriated by the Council for Project Mobility in the fiscal year 1974-75 budget. 1 0 g 0 3/31%75 5. That funds not expended in 1974-75 be carried over for use in the 1975-76 fiscal year. Vice Mayor Henderson stated support for the program, but he was Interested in knowing the annual anticipated cost. Mr. Noguchi responded that an evaluation would be done on Project Mobility daring its early stages that would enable staff to report to Council as to the needs of the project and the financial aspects that would be related to meeting those needs. The available $20,000 would provide approximately four and one-half months of service under Project Mobility. Co tes Mr. enrol the b unc1lman Berwald asked if there were any financial eligibility t for those who would want to participate in the program Noguchi replied that the only requirement would be that the lee be a mobility impaired senior citizen who could not utilize us system. Council means t not sums city had Tan Berwald's feeling was that if .a person had the financial hive himself transported in some way, then the city should idize that person. He asked how the $1.00 return to the been arrived at. Noguch as possible respect to t and the orig i explained that the staff was trying to meet as closely the points of discussion that occured in February with he kind of subsidy the city was looking forward to, i.nal commitment was about eight -to --one. Councilman Ros a contract, th of length, and is where the ten that the total c under the contrac how much the progr how many people wo enhaum recalled that when the city was talking about e cab company was going to charge $2.70 per trip regardless the customer was going to pay thirty cents. Thit percent idea came from. Councilman Rosenbaum felt st should be very similar to what had been anticipated t. It really was not possible for staff to say am would cost until they were able to determine u)d make use of the service. Councilman P,erwa1d a was measured. sked how the mobility impairment of an individual Diana Steeples, Coord was an enrollment syat the contract. This asks Palo Alto, describe the what form of transportati inator Senior Services, reported that there ea that had been set up in ano:ieipation of the enrollee to prove age, residence in reason for mobility impairment, and to state on he had been using up until the present. Councilman Bervald asked h ova financial eligibility was determined. Mrs. Steeples responded th.a group, it was decided that p required. /his is due to the n, .ed, the very person who nee use it because he does not wan retirement years. upon the advice of the senior citizens roof of financial need would not be fact that when asked for proof of financial de the aid the most will decline to t to be identified as poor in his AMENDMENT: Vice Mayor Henderson Project Mobility be redefined to moved, seconded by Berwald, that include all mobility impaired citizens. 1081 3/31/75 Councilman Rosenbaum spore in favor of waiting to see what the city's experience was with just the senior citizens who were handicapped before expanding the program to include everybody. Councilman Clay stated he would vote against the amendment. The amendment failed an the following vote: AYES: Berwald, Comstock, Henderson, Pearson NOES: Beahrs, Clay, Rosenbaum, Sher ABSENT: Norton (out of chambers) The motion passed on a unanimous vote. (CMR:219:5) Councilman Comstock statei that this was an important report which involved a major policy decision, and he was prepared to refer the matter to a committee. Mayor. Sher said there was a deadline on applying to the Sacramento Municipal Utility D1strint for a portion of the proposed plant. Some of the general aspects of the report would be referred to a committee; but in order to reserve a portion of the power, Council had to take some action at this meeting. Edward K. Aghjayan, Director of Utilities, reported that the city was faced with two deadlines. It was necessary to respond to the Sacramento Municipal Utility District with regard to participation in the nuclear power generation plant, and that deadline was April 1, the NCPA development fund, which is looking at various projects - one of s ich is the SNUB Rancho Seco nuclear plant. Response is expected by NCPA in three to three and one --half weeks, but a decision needed to be made at this meeting regarding the SMUD project. Mayor Sher pointed out that there were two possibilities of participation in the SMUD project. One of thee would be for Palo Alto to participate independently, and the other or. would be to participate through NCPA. Mr. Aghjayan had explained to SMUD that it might not be possible to give them a definite indication as to which for Palo Alto's participation might take. S?4UI)'a response was that as long as they had an indication of strong interest on the part of Palo Alto, they would reserve the city's entitlement. Mayor Sher asked if he understood correctly that the minimum essential action at this meting wan to show strong interest on the part of Palo Alto in participating in the project. Mx. Aghjayan said thia was correct. Councilman Rosenbaum felt he owed Council an apology for bringing something before it on March 31 that needed approval by April 1. 1e explained that the development fund agreement had been very fluid, said it had not been until la.at week that it appeared contingencies would be introduced that would make the utter acceptable to Palo 082 3/31/75 Alto. At the same tiwe, the SMUD deadline was steadily creeping up. The third point was the basic one of Palo Alto's desire to participate in a nuclear project. Councilman Rosenbaum said that Palo Alto wanted to make a commitoent, but there were a number of stages at which the city could withdraw from the commitment. He thought this subject in particular would warrant some committee and public discussions. Councilman Rosenbaum reiterated that the development fund agreement deadline -would be later in April. That matter could be referred to the Finance and Public Works Committee if that Committee hed the time to go through it by the end of the month. It was Councilman Rosenbaum's hope that some time would be spent on the subject at this meeting and have the nuclear matter referred to a committee. Councilman Comstock asked when the Finance and Public Works Committee would be able to agendize this item. Vice Mayor Henderson responded that his committee was booked up through April. He thought this smatter could be considered a policy one; therefore, it could be referred to the Policy and Procedures Committee. - Councilwoman Pearson stated that she would be glad to discuss nuclear power at a future meeting of the Policy and Procedures Committee, Councilman Comstock commented that the thought of making a tentative commitment to the Sacramento Municipal Utilities District made him very uneasy if a thorough study were not made first in committee. He felt the preliminary commitment should be made in an informed and reasoned manner. MOTION: Councilman Comstock moved, seconded by Ferwald, that the staff report on long term power supply be referred to the Policy and Procedures Committee for early agendizing and early return to Council. Councilman Beahrs asked what the effect of this action would be on the Sacramento matter. Lir. Aghjayan responded that it was possible that the city would forego its opportunity to participate. Councilman Beahrs asked what the disadvantages would be if that happened. Mr. Aghjayan replied that the disadvantage was that projects such as this, built on a large scale by the endeavors of a city willing to share with other municipalities, cone along very infrequently. Councilman Beahrs askeil if there were other cities clawing to participate in the project. Mx. Ag jayaxi said that the project was already oversubscribed by about twenty to thirty percent, and it is almost assured that Palo Alto would not get its full entitlement. Councilman Beahrs asked if the situation could be recouped through the NCPA if action were not taken at this meeting. Mr. Aghjayan explained that if Council does not express interest in the Sacramento plant, Palo Alto would be obligated to let NCPA know that; and NCPA would have to remove Palo Alto' a name from the L st of cities who were interested. 1 0 8 3 3/31/75 Councilman Beaters asked what Palo Alto's probable investment in the Sacraments project would be. Mr. Aghjayan indicated that there would be no investment until July i; and at that time, the cost would be about $50,000. The total of the first year's expenses is in the neighborhood of $150,000. Councilman Beahrs asked if the plant had been designed as yet. Mr. Aghjayan said he did not know if it had been designed, but it was in the planning stages. Hr. Sipel stressed that the action proposed for this meeting was not an irrevocable commitment but was the preservation of an option. If the city foregoes that option, Palo Alto will be the loser since this kind of an opportunity does not appear very frequently. Mr. Sipel noted that if the city went ahead and expressed a strong interest in this proposal, then during the next four months Palo Alto would be developing a contract which wculd formalize the relationship between Pals; Alto and SMUD or NCPA and SJWD. During that period, the city could appraise whether it really wanted to get into this project or not, take whatever time is necessary to study the aspects of a nuclear plant, and make a final decision. Mr. Sipel understood Councilman Comstock's concern about making a major policy commitment, but it seemed to him there were enough assurances to behoove the city to go ahead with the project. Councilman Beahrs spoke strongly in favor of taking advantage of the option. Councilman Berwald said it seemed to him that Council ought to be able to study the whole matter before it indicates any desire to go ahead. He felt the staff recommendations were asking Council to approve a lot of very serious policy measures. Councilman Berwald realized the Finance and Public Works Committee was very busy at the present time, but he felt that Committee should assume its proper responsibility and take on this matter. Council was told that this a fine investment, but it is an investment that does not allow withdrawal of funds at an early data if a member city wished to do so. There is still a► need to develop contracts between NCPA member cities and PG6E, and at least one successful project is required or all the money is lost, etc. So it is a great opportunity, but there are some great risks. Councilman Berwald pointed out that this was a Capital Improvement Program and a Public Works Program, and Council should take the same care in addressing its attention to it and have the sans: due process of public hearings as it would if it were spending a couple of million dollsrs on a Palo Alto atonic energy plant. Corrected Nayor Sher stressed that the minimum essential action that needed See pg. 1157 to be taken tonight to preserve the city's position was &i.mpl.y to adopt a motion expressing Palo Alto's strong interest. All the things that Cotincila.an Berwald was referring to were the much broader recommendations. Vice Mayor Henderson agreed that the first step that needed to be taken by April 1 was not involve any dollars, and the city would not be obligated for money until July 1. The SMUD proposal was the most interesting and the most possible in Vice Mayor Henderson's opinion, and he said be would feel derelict in not keeping that option alive. Be saw no problem with baying the whole subject referred to committee, but there should be a motion to express the proper interest to SMUD on April 1. 1084 3/31/75 AMENDMENT: Councilman Rosenbaum moved, se:onded by Beahrs, that a letter be sent to SMUD expressing Palo Alto's strong interest in the Rancho Seco Project and indicating that participation would be either through NCPA or through city participation. The amendment passed on the following vote: AYES: Beahrs, Clay, Henderson, Pearson, Rosenbaum, Sher NOES: Berwald, Comstcck The motion as amended passed on the following vote: AYES: Beahrs, Clay, Comstock, Sher, Henderson, Pearson, Rosenbaum NOES: Beiwald Pro used Santa Clara Couzsty Trensporta-- t on rovament grogram (CHR:227:5)___.. Mr, Noguchi repotted that this item was a reterrai from the County Transportation Commission. He said there were a number of significant implications contained in the proposed Transportation Improvement Program. Staff considered Item 6 of the county report the most significant one, and that relates to the reallocation of funds in the next five years so that more funds would go to transit needs, The plan would be to allocate 730 of all available funds fox transit in the next five years, 25?% for roads, and ii% for airports, These funds would be used to achieve the continuation of the current public transit system and to permit the initial work to proceed on the development of a long-range public- transportation system: Mr. Noguchi pointed out that within the context of the county's report, there was the implication that the previously available federal aid urban gasoline sales tax revenues would be reallocated to a total transportation fund. The current availability of the FAU funds in terms of the city's participation in the pragtam is about $80,000 per year. In the past these funds have been counted on to supplement the funding necessary to provide critical street maintenance. Reallocation of the funds would mean de -programming the funds currently earmarked for the El Camino/Page Mill interchage in Palo Alto. Mr. Noguchi said the staff believed that the reallocation of the FAU funds has significant implications for the street maintenance program and the problem identified in the College Terrace traffic study, notably the need for an El Camino/ Page Mill Expressway interchange. Staff did not address itself to l.oaues in the county's report which it did not have time to evaluate. Mr. Noguchi commented that if Council desired to have the $80,000 per year allocated as the city's share for street maintenance purposes, this should be included in the recommendation back to the Commission. Staff included eight reconamenda- tioas in its repro, and a motion on the part of Council directing staff to forward those re:emendations to the Transportation Commission would be is order Councilwoman Pearson stated that it seemed to her that if Palo Alto supported a one-half cent sales tax prior to the election in the fall, then the county could be able to use the name of Palo Alto as having approved of the whole package. Council just received this report on Thursday, and Councilwoman Pearson found it difficult to respond at this eaely date. She indicated that she -would not be willing to support a one-half cent sales tax increase until she 1085 3/31/75 saw more review of the system than had been presented and until the county reinstated lines 31 and 36 permanently. Further, Councilwoman Pearson said she would not be willing to support the sales tax increase until the Planning Commission reviewed the whole system. Also, the increase would not have her support unless there were an EIR on the whole system, The report from the county indicated they intended to continue dial-a-ra.de and also buy the taxi system. Councilwoman Pearson said her support for dial -a -ride would be forthcoming only if they used taxis or nine-pr:ssenge.c or less vehicles, She expressed her total opposition to an evaluation of the positive and negative impacts of removing the El Camino/Page Mill separation. Councilwoman reatscn believed that the words "and routes" should be added to the end of staff's recommendation No. 3. MOTION: Councilwoman Pearson moved, seccnded by Comstock, that regarding rec:.r ndatian I) cf the staff report, Palo Alto's support would not be forthcoming for the one-half cent sales tax increase until the Planning Commission had the opportunity to review the system, lines 31 end 36 were permanently reinstated, and there was an EIR on the whole system; 2) of the staff report is acceptable; 3) shculd have the words "and routes" added at the end; 4), 5), and 6) are a:.I.ceptabia; 7) should be deleted; 8) is atteptable; and 9) should e -added stating support for dial -a -ride only if smaller vehicles are used. °Ccui :ilnan ae.wald suggested that perhaps this entire subject vhould be referred to the Policy and Procedures Committee and the Planning Commission. He was concerned about a number of things; for instance, the maintenance of city and county roads. Also, Councilman Berwald was not in agreement with deleting Item 7). Council should encourage net ;,y:y a review by the Planning Commission, but it should also encourage public hearings; and there should be more accurate costs regarding items, 3). SUBSTITUTE MOTION: Councilman Berwald moved, seconded by Clay, that the entire tatter be referred to the Planning Commission and the Policy and Proedures Committee and a letter be sent to the Transit Board saying that Palo Alto has not had time to review the matter but hoped the Beard would consider its co ents at such time as they become available. Councilman Rosenbaum suggested that it would be well for Council to indicate co the county Palo Alto's opposition to the reallocation of the PAU gas tax revenue. Councilman 5erwaid, and Councilman Clay as seconder, agreed to include this language in the substitute motion. Vice Mayor Henderson commented that he was much harpier having the entire matter go to Committee. He was not sure at all that he brould support the one-half cent sales tax increase if a few conditions were net. Further, Vice Mayor Henderson was not sure that he supported the early expansion of the 516 buses if that meant keeping buses on dial -a -ride. Earlier in the meeting, Council stated emphasie on first priority for the collection -distribution • system over the fixed -guideway system; and Vice Mayor Henderson felt that staff's_ recommendation No. 4) was saying something different. He agreed with Councilwoman Pea': sot► that recommendation No. 7) should be removed, and he supported the referral motion. The referral motion passed on a unanimcus vote. (Norton put of Chambers.) 1 0 8 6 3/31/75 „Il ,ga Postal Facilij Joint Resolution with East Palo Alto (CMR:225:5) Mayor Sher reported that Albert A. Peter, Jr„ of the U. S. Postal Service said ae would like to have the opportunity to present the Postal Service's case to Council before action was taken. Mayor Sher suggested to Mr. Peter that the matter had already gone beyond that point since action was taken when Council asked staff to prepare a Joint Resolution, and he further advised Mr. Peter that past of the action taken by Council was to send letters to various representatives and to the Postal Service. For the benefit of those who had not seen it, Mayor Sher read the following letter from Mr. Peter: "Thank you for your offer to read the following statement for the Postal Service: We understand that the City Council intends to enact a resolution this evening regarding the proposed new main office in Palo Alto. The site for this facility is located on Loma Verde and Bayshore Frontage Road. We feel that any action taken by the city at this time is premature. Last November, we met with your Planning Director to advise that we were again considering deve_lopesent of the Loma Verde site. We net in the interest of determining the city's requirements and in an attempt to coordinate with your planning requirements. At that time, only tentative plans and operational concepts had been developed. However, we felt it was important to maintain liaison with the local government at the earliest possible point in time. We have continued to refine our plans incorporating suggestions from your /staff toward the preparation of tentative drawings. Out operational staff have also continued to study and to refine their plans for the long range mail handling and customer service in Palo Alto. it is our intention to present these plans at a public meeting to enable the residents and the elected officials of your community to comment and suggest beneficial changes. We have deferred our final decision on design of the project until we could have the public meeting. It seems appropriate for the city to defer any official action until you know our total, operational plan and impact of any changes. It is very important that we have a mutual understanding of problems that may arise in this effort. We therefore believe that it is premature for the city to establish a firm position until we have presented a comprehensive planning picture at a public hearing.” Corrected See pg. 1157 Mayor Sher disagreed with the next to che last paragraph in Mr. Peter's letter suggesting that the city defer any official action. He felt that official action had been taken in Council's meeting with the East Palo Alto Municipal Council, when t:he Council directed the preparation of the resolution, and when che Mayor was authorized to send a lettet communicating the city's position to various members of Congress and to the Postal Service. Mayor Sher commented that the East Palo Alto Municipal Council was considering the same resolution at its meeting tonight. 1 0 8 7 3/31/75 MOTION: Mayor Sher introduced the following resolution and moved, seconded by Comstock, its adoption: RESOLUTION NO. 5076 entitled "A JOINT RESOLUTION OF THE, i iUN1CIPAi., COUNCIL OF EAST PALO ALTO AND THE COUNCIL OF THE CITY OF PALO) ALTO, CALIFORNIA, URGING THE UNTIED STATES POSTAL SERVICE TO LOCATE ITS PROPOSED MAIN POST OFFICE EAST OF BAYSHORE FREEWAY IN OR NEAR EAST PALO ALTO" AMENDMENT: Vice Mayor Henderson moved, seconded by Pearson, that the 7th WHEREAS be amended to read: The residents of Palo Alto who live in the vicinity of the proposed postal facility unanimously support the Council of the City of Palo Alta in its strong stand regarding the negativa enviroatntal impacts that the proposed facility would introduce in that particular Palo Alto neighborhood". Mr. Sigel suggested it might be better to accompany the resolution with a cover letter stating what Vice Mayor Henderson had said. If the resolution were changed, it would have to go to East Palo Alto for that community's approval; and that would require quite some time, Mr. Sigel felt that a letter incorporating some strong language would be read before the resolution anyway. Vice Mayor Henderson withdrew his amendment and agreed to sending the cover letter instead. Councilman 1erwald suggested that along with the resolution, the Mayor ,e authorized to transmit a letter enumerating the specific arguments made in opposition to the facility that had been proposed in 1969. Mayor Sher agreed to send such a letter. Gilbert Eakins, 3493 Greer Road, said that it is clear that the Post Office listens only to the most clear and definitely spelled out instructions from the city. If clear instructions are not stated, Palo Alto's wishes will be isnored. Mr. Eakins considered the letter from Mr. Peter an affront to Palo Alto because it clearly shows that the Postal Officials have ignored the communications from the city. He suggested that a strong cover letter to the Postal Service include the statement that they are ignoring Palo Alto's letters. The resolution was adopted on a ar imou s vote. 5-76 Annual Bud -et 'Referral to Finance and Pu:. is or ee MOTION: Vice Mayor Henderson moved, seconded by Comstock that the 11975-76 budget be referred to the Finance and Public Works Cmasmsittee. The motion passed on a unanimous vote. Curb s for the Handica Award 74-99 (CMR:22:5) MOTION: Councilman Comstock moved, seconded by Henderson, that Council authorize the Mayor to execute a contract with the George 1 0 8 8 3/31/75 Bianchi Construction Company for the curb ramping project (74-99) in the amount of $21,386. Councilman Clay stated that he had this items removed from the Consent Calendar as a matter of principle. He did not like budgetary items to appear under the Consent Calendar. Mr. Sipel commented that it was his view that the Consent Calendar was en appropriate vehicle for approving contracts and other things which have received scrutiny by Council in the budget process. This particular item had received that scrutiny and was adopted in the annual budget, if this was not the sort of approach Council wanted, then such items could be kept off the Consent Calendar in the future. Secondly, Mr. Sipel noted that he had a staff member wait for a couple of h.:urs so that he would be available to answer questions. If there are no questions, then the staff involved on an item should go house. One of the purposes of the Consent Calendar was to cut down on the amount of overtime that staff was spending in meetings. Councilman Comstock stated that he would like the City Manager to continue to place these kinds of items on the Consent Calendar. Mayor Sher said the City Manager could agendize items the way he saw fit, and members of Council had the right to remove any item from the Consent Calendar and have it discussed at the place where it would normally be agendized. Councilman Berwald had seen some quality ramps in Burlingame, San Mateo, and other places; and he thought the ramps in some of these other places were much less steep than the ones Palo Alto had constructed. Also, some of the ramps he had seen included hand rails. Councilman Berwald hoped that the low bid was not indicative of a low --quality kind of ramp. In his opinion, the ramps should be shallow and attractive. The notion passed on a unanimous vote. ratio® g, ��,tat Guid lineess (CMR:23k:5) NOTION: Mayor Sher moved, seconded by Benfold, that Council adopt the new state guidelines for RnvironmezntA Impact Reports. Councilwoman Pearson asked whether when talking about new energy conservation measures, the discussion would concern less use of automobiles, less parking spaces, etc., or whether the talk was about insulation, less heat, and less air conditioning. Mr. Knox responded that ell thing things she mentioned would be under discussion The motion passed on a unanimous vote. Barron Park Ann ( :223:5 S 213:5) MOTION: Councilssaaz, Comstock introduced the following resolution and moved, seconded by Henderson, its adoption: 1 0 8 9 3/31/75 RESOLUTION NO. 5077 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO DECLARING ITS INTENTION TO CALL A SPECIAL ANNEXATION ELECTION FOR THE BARRON PARK ANNEXATION AND FIXING A TIME AND PLACE FOR HEARING ON THE ANNEXATION AND REQUESTED EXCLUSIONS OF PROPERTY" The resolution was adopted on a unanimous vote Re uest of Councilman _Clay that Council_. Consider Narconon Palo Alto Pro veal for Cit Pur^hase of Services to MOTION: Councilman Clay moved, seconded by Berwald, that Council refer the Narconon Proposal to staff for analysis with direction to report to the Finance and Public Works Committee for its review during the 1175-7b budget deliberations proceedings. Vice Mayor (Henderson asked if Councilman Clay were offering this as a replacement to the present drug abuse program or as an addition to it. Councilman Clay responded that this should not be construed as a substitute for the city sponsored drug program but as a request for consideration. Vice Mayor Henderson commented that the Finance and Public Works Committee would have before it the budget for the present drug program, and he did not know if this proposal would be available at chat time. Vice Mayor Henderson did not understand whether Councilman Clay saw this program as one that should be added to the present program, in which case the dollar situation would be a different one. He asked Councilman Clay if this is what he meant or wheeher he saw Narconon undertaking a portion of the program presently being done by the city -funded drug program. Vice Mayor Henderson also asked if Councils Clay wanted staff to stake a recommendation to the Committee in relation to the new program and whether it should be a substitute program or un additional one. Councilman Clay responded that all of those alternatives would be valid for review by the Finance and Public Works Committee. The city has established a policy position that it will support a drug program, and here is a program. While allocating funds for the upcoming fiscal year, it would seem wise to examine the alternatives available. What the Committee recommended to Council would be a result of the deliberation process. Vice Mayor Henderson stated that if he thought Council was to reconsider the drug program, he would have the inclination to state that and request staff to seek proposals from other people who would be interested in operating part of the city's drug program. IIICorrectCouncilman Clay said he did not meansto preclude anyone else from See pg. offering a proposal. It does preclude the city looking at its drug 1157 program in its entirety and saying on one extreme that the city would consider any and all proposals for the entire program. Narconon had presented a proposal. Soon the Finance and Public Works Committee wtil be considering funding for a drug program for this year, and to not consider something of this type would appear that Council was decidfr,g here and now that it did not want to hear about all that may b's' available to the city. 1 0 9 it 3/31/75 Vice Mayor Henderson commented that the Finance and Public Works Committee would be going through the budget process. Figures are presented to the Committee based on hundreds of ongoing programs, and the Committee is not set up to have people come in and make proposals in R y or all areas. Vice Mayor Henderson saw this as a policy question rather than a budget questita, and that was his concern. If this approach were taken, the Finance and Public Works Committee would be tied up with policy meetings and never get the budget done. Councilman Beahrs stated he asked if the contract Carleen Bedwell, Director that the contract expires prior to that for cause. interest in exploring alternatives, and with PACDAB were renewable each year. of Community and Social Services, stated at the end of the fiscal year and is cancelable Councilman Berwald asked who on the staff would review the city - funded drug program. Mrs. Bedwell replied that she would be involved in a review as well as Gary Fazzino, staff liaison to PACDAB, the attorney's office, and possibly someone from Budget and Staff Services. She added that when the city contracted for drug abuse services based on need, its perception of need would come from the John F. Kennedy consultant report. Staff could look at Narconon's proposal and see what services are offered. For instance, would the proposal meet the needs earlier described? Is the city interested in reaching the users of drugs described in the proposal? Is the city interested in the stated philosophy, and what are the costs? Mrs. Bedwell commented that the area difficult to evaluate would be that of the effectiveness of the program. To have someone study that in an in-depth fashion would involve hiring a consultant. Some conclusions could be drawn by silhouette or by external indications of those groups that have had experience with Narconon, discussions with their staff, and if there were time -discussions with their clients, Mrs. Bedwell estimated that it would take about a month to review the program in such a way. A conservative estimate of such an assignment would be fifty or so person hours. Councilwoman Pearson considered that this request by Councilman Clay involved policy decision. Some of the questions in her mind were: Does the city want an additional program? Is there a need for one? How would you separate the two kinds of services that might be offered? She also mentioned that there is a question as to whether the program was related to the church in any way. Those kinds of questions should be C:aken care of at. the Policy and Procedures Committee meetings. Regarding the present drug program, first the decision was made as to whether or not the city wanted the program; and they the matter went to the Finance and Public Works Committee. Councilwoman Pearson added that policy decisions needed to be made before s request was made for funding. SUBSTITUTE MOTION: Councilwoman Peeraon moved, seconded by Henderson that the Narconon proposal be referred to staff for analysis with direction to report directly to the Policy and Procedures Committee for its review in time for the 1975.76 budget deliverastions proceedings. Councilman Clay noted that the city had already established same of the functions and features that staff had mentioned with regard to need. The city established need prior to its funding of PACDAB, and he assumed the need still existed. Councilman Clay considered the contractual matter to be ssoatmthiag that was very straightforward. - 1 0 9 1 3/31/75 Regarding effectiveness, Councilman Clay understood staff to be saying that it needed to determine whether this program would be effective with regard to serving needs. If that were the case, he thought the city should go through the same meaner of evaluating the effectiveness of PACDAB. Prior to accepting the budget recommendation from the Finance and Public Works Committee, staff should go through the same month long process regarding PACDIAB. Councilman Clay saw no reason for this proposal to go to the Policy and Procedures Committee unless that committee intended to look at the entire drug program. Mayor Sher noted that when Council amended the PACDAB contract last year, it did provide for evaluation of PACDAB; and he assumed the report would be received before the funding matter came up. Nathaniel Jessup, 1850 Middlefield Road, stated that Narconon had been in Palo Alto for two years providing services. If the city decided to put any money in Narconon, it would receive back a greater measure than it put in. Mr. Jessup pointed out that the proposal requested reimbursement on a per client successfully served basis. As far as evaluating the past success of the program, the records are all easily available. One of the side benefits of participation in Narconon is promotional since a lot of focus is brought to bear on the program. Mr. Jessup pointed out that Narconon was asking for a fraction of support to enable the organization to continue with its work. He stated his hope that the proposal would be referred to the Finance and Public Works Committee. John Brodie, Preside.it of Narconon, stated the organization was fotnded almost three years ago because of a feeling of obligation and responsibility. Funds raised have been in excess of $80,000, and all of those funds have gone into the development of a product. Mr. Brodie invited members of Council to come and look at what the organization was doing. Narconon would be somewhat invalidated if it were not at least recognized for the product it produced and researched. Mr. Brodie said Narconon would like the city's consideration and validation of the fact that it existed in Palo Alto. He stated that all Narconon was asking for was a little support. Vice Mayor Henderson favored referral of this natter to the Policy and Procedures Committee since it was a policy decision. Regarding evaluation, Vice Mayor Henderson noted that $80,000 was spent through a grant in making a thorough and independent evaluation of the PACDAB program. Council was not willing to evaluate the PaCDAB program by simply discussing it with members of The Collective. Vice Mayor. Henderson felt it would take that kind of an effort to snake an evaluation of the Narconon program. Councilman Beahrs reminded Council that the John F. Kennedy survey cuss anything but unequivocal. Councilman Berwaid asked if it were unacceptable to the maker of the origninal motion to have the item go to the Policy and Procedures Commi t tee . Councilman Clay said this was absolutely unacceptable, and he saw it as an attest to delay and defer. He saidhe would be willing for this proposal to go to the Policy and Procedures Committee providing the total drug program also go to that Committee for evaluation prior to any funding. l 0 9 2 3/31/75 Councilman Berwald stated that the Finance and Public Works Committee would be looking at the annual drug program in terms of PACDAB. Councilman Clay was simply asking why the Committee could not act in such a way that it would be able to consider having some of the dollars go to recognize a group that has been active in the community. Vice Mayor tiendereon responded that The Center hed desired to have funding from the city, and that was taken care of as a policy matter. The Finance and Public Works Committee never at any time considered adding to the budget so the Canter could be put into operation. Councilman Berwald asked if the Policy and Procedures Committee could get to this matter and get a report to the Finance and Public Works Committee before this year's budget is adopted. Councilwoman Pearson thought this subject could be dealt with in May, so it could be looked at before budget approval. (Councilman Comstock left at 12:10 a. m.) Vice ;Mayor Henderson stated that up to the final date in June, the Committee could have such supplemental programs come to it. If Council approved the Naatecnon project, there would have to be an adjustment to the budget. Mayor Sher thought there was a lot to be said for not having programs decided upon during Finance and Ptablic Works budget deliberations and then try to have Council approve it when it is considering the budget. Therefore, he felt there was merit in having this proposal go through the Policy and Procedures Committee. John Fredrich, 157 Bryant Street, asked that if the proposal were sent to the Policy and Procedures Coui§;.ittee, it be sent along with the entire drug program. The sebstitete passed on the following vote: AYES: Berwald, Henderson, Pearson, Rosenbaum, Shar NOES: Beahrs, Clay ABSENT: Comstock, Norton MOTION: Councilman Clay moved, seconded by Berwald, that the entire Palo Alto sponsored drug abuse program be referred to the Policy and Procedures Committee prior to funding of any proagra. . Mayer Sher asked how the evaluation of PACDAB would be handled.__ ?ors. Bedvell responded that the goals and objectives of the contract would be looked at, and the achievements would be measured. She maid it had been staff's intentioa to make the evaluation available when the Finance and Public Works Committee was hearing budget proposals. Vice Mayor Henderson did not have any idea how staff could make an evaluation of the effectiveness of the program, and he did not see how they could do that with the tlarconon Program. The only thing available to staff vas performance measurements. 1 0 9 3 3/31/75 Councilman Clay said that anything staff did to evaluate Narconon could be done to evaluate PACDAB. Mayor Sher noted that the i,:valuation of PACDAB is in accordance with standards. Mrs. Bedwell said that staff would make some kind of statement to the effect that the present contractor was doing certain things in certain ways, and staff would try to compare Narconon to that. The motion passed on a unanimous vote. (Comstock & Norton absent) Councilman Berwald expressed his pleasure at Councilman Clay's putting this item on the agenda. He said he hoped everyone realized what the Narconon people were asking .for. They have been providing services for the c+.ty for two years; and ao far, Councilman Berwald did not hear anyone even say "thank you". Councilman Berwald hoped that staff did not see its job as one of shepherding PACDAB or supervising their program alone, and that they would be evaluating other programs. He further hoped that PACDAB had not lodged itself into the city budget so that Council had come to the conclusion that no one else would ever be cons1dered for the service. Councilwoman Pearson noted that the John F. Kennedy report stated that PACDAB was doing .n outstanding lob, Oral Communications None. The meeting of March 31, 1975 adjourned at 12:25 a.m. ATTEST: APPROVE: 1 0 9 4 3/31/75, ° c`