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HomeMy WebLinkAbout07311972MINUTES city of Salo alto July 31, 1972 The City Council of the City of Palo Alto met on this date at 7:34 p.m. in a special meeting to consider regular Council business, with Mayor Comstock presiding. Present: Beahrs (arrived 7:40 p.m.), Berwald (arrived 7:35 p.m.), Clark, Comstock, Henderson, Norton (arrived 7:40 p.m.), Pearson, Rosenbaum, Semen Absent: None Minutes of Ju1 17 1472 Co'. ncUman Henderson requested a correction be made on Page 218, next-tc-last paragraph, fifth line from the bottcm, where the word several should be changed to read "seven." MOTION: Mayor Comstock moved, seconded by Pearson, that the minutes of July 17 be approved as corrected. The motion passed on a unanimous voice vote. Child�Care St (CMR:385:2) MOTION: Mayor Comstock coved, duly seconded, that agenda item #5 be considered out of order at this time. The motion passed on a unanimous voice vote. MOTION: Councilman Henderson moved, seconded by Comstock, that the report on a study of child care in Palo Alto be referred to the Policy and Procedures Committee and that the committee be requested to develop a recommended policy position for the Council's consideration, along with an appropriate plan. Councilwoman Semen expressed the hope that a full-scale presentation of the item could be heard at Council level prior to its being referred to committee. Councilwoman Pearson eonmaented that she felt that .t would be better to have a hearing in committee. She said that the committee meeting is more informal, and she promised everyone concerned that it would be a full. -scale hearing. Councilman Clark stated that he would prefer to see a motion of referral to the committee only without any prior instructions to the committee. AMENDMENT: Councilman Henderson moved, seconded by Comstock, to amend the motion to state simply that the subject of child care study be referred to the Policy and Procedures Committee. The motion as amended passed on a tmaniuous voice vote. 2 4 0 7/31/72 Zone Chan e --Lands Above anc Below oot s 'Par -_p en ace--Pu'��+die Fa_ilit 'Verbatim Transcript on file in the City Clerk's Office) Mayor Comstock advised that the Planning Commission recommendation for reclassification of all property south of Route 280 above and below Foothills Park, with certain exceptions, to Open Space and Public Facility is before the Council. He noted that the Council is in receipt of the verbatim minutes of the Planning Commission meeting of July 19 when it considered this matter, a staff report and the Planning Commis - pion Resolution No. 151 which outlines in detail the background of the area under consideration. Council is also in receipt of letters from 3. Terrass and Fedio and Barbara Mousalam in support of the rezoning; and letters protesting the rezoning from Frank B. Cliff for Donald Eldridge, Land Resources Corporation signed by Brett La Shelle, and from Carroll, Burdick & McDonough for Philip Walter and Lee Yee. A letter was also received protesting the inclusion zone. He referred again and requested that those expressed their position marize their position in Chairman of the Planning from Thomas A. Tisch for Los Trancos Properties of their property within the proposed open space to the verbatim Planning Commission minutes people wishing to address the Council, who had at the Planning Cornissi.on meeting, might sr rIi- a short statement. He asked Mrs. Mary Cordon, or`misson, to comment. Mrs. Gordon commented chat the Planning Commission has had extensive hearings and discussions on the open space element, the open space zone, and the rezoning of lands to open space and feels in forwarding this recommendation to Council that it is a logical implementation of the open space element of the Comprehensive Plan as mandated by the state legislature. Mayor Comstock stated that the Council would now hear from members of the audience wishing to speak on this matter. Brett La Shelle, Vice President of Land Resources Corporation, -17201 Sunset Blvd., Pacific Palisades, read a letter dated_iuly 31, 1972, Addressed to the Council, and already received by Council, setting forth their objections to the rezoning of their land into an Open Space District. He submitted a copy to the City Clerk. In response to questions from Councilman Henderson, Mr. La Shelle stated that Land Resources' original development proposal, which was submitted to the City about a year and a half ago, covered 530 acres and was submitted on the basis of 1775 dwelling units, approximately 3.3 units per acre, at a price range from about $35,000 up. Frank Crist, Jr., 1400 Byron Street, representing Harry Beyer who owns 22 acres of property in the foothills, reviewed Council action in 1958 regarding this property. He atated that if the citizens of Palo Alto feel open space is to their benefit, then they should pay for it rather than expecting 17 property owners to bear the cost. He reviewed the costs to these property owners in the way of taxes and assessments. He suggested that before making a decision, the City should hire an appraiser to determine -what this zoning will cost the property owners and what the decrease in land value will be. Dwain N. Fullerton, 829 Forest Avenue, Conservation Chairman of the North Valley Regional Group of the Sierra Club, expressed majority support by their group for favorable action by the Council. 2 4 1 7/31/72 Geoffrey Steel, representing Los Trancos Properties, 188 Mill Creek Road, Fremont, a partnership owning a parcel of land in the foothills, concurred with Mr. Crisis remarks. He reviewed the ownership and location of this property and requested that it be excluded from the open space zoning, since it does not meet any of the criteria established for the open space eleeient. J. 0. Burdick, attorney, 301 Coleridge Avenue, spoke on behalf of Messrs. Phil Yee, Walter Yee, and Lee Yee, owners of certain nursery property in the foothills. He spoke against this property's being included in the open space zoning, reviewed previous action regarding annexation of the property, and suggested formation of a board of arbitration consisting of skilled property appraisers to determine the cost to property owners. In response to a question from Councilman Clark, he stated that access to this property is on Los Tr:.ncos Road with no connection to Page Mill Road. Robert Girard, a law professor at Stanford University, speaking for the Co4mittee for Green Foothills, stated that they strongly support appli- cation of One Open Space Zoning District to the property in question. Re spoke against development in the foothills and in favor of government's power to limit development of private land in the public interest. City Attorney Stone, in response to Councilman Beahrs and comments regarding actions of previous councils and managements, referred to the "Black Letter Hornbrook Law," and that is, under no circumstances, is zoning inviolate. He pointed out that zoning can always be changed in the public ;ntarest as time goes on and as the planning process proceeds. Councilman Beahrs asked the position of individual council members if a taxpayer's suit eventuates. Mr. Stone replied it was his belief that individual council members acting in a legislative matter do not expose themselves to liability. Nina S. Kulgein, 711 Gallen Avenue, speaking for the Palo Alto branch of the American Association of University Women, spoke in favor of adoption of the Foothills Environmental Design Study and of the specific zone changes recommended by the Planning Commission. Betsy Bechtel, 946 Shauna Lane, speaking for the League of Women Voters of Palo Alto, spoke in support of the Planning Commission's recommendation. Frank Crist brought up the point that basically Livingston and Btayney had recommended to the Council that if the City wanted open space, it would pay for it. He expressed the feeling that Palo Alto citizens would be willing to pay their fair share for oper. space. There being no one else from the audience wishing to speak, Mayor Comstock. returned the .natter to the Council. Councilwoman Seman read a prepared statement on the matter, noting that Palo Alto is not alone in recognizing the need for:correcting past zoning mistakes and that no legislature is bound by the errors of the past. She referred to ABAG's nine -county plan for park and open space and their consultant's, Overview Corporation, definition of "nonpark open space." She commente.' that Palo Alto is attempting to +.use the traditional regulatory tool of zoning for orderly growth of the city, and this zoning will provide for a range of economical users pyjshe landowners, i 1 2 4-2 .. 7/31/72 and this is not confiscatory. She reviewed the area and the evaluation of the appropriateness of the ter -acre lot alternative, noting the statement in the staff report "that the property owner be allowed a reasonable use of his land." She stated that in the public interest, the City cannot purmit overdevelopment of the foothills in one -acre - lot density; however, the property owners want the City to ;archase their property at the one -acre density value as if one -acre' 7 .r.6ing . would be permitted. She concluded by stating that in her ostei n the City has been fair and equitably considerate of all interests in this matter. The zoning proposals preserve the inherent rights of the owners; the Williamson Act and scenic easement techniques will permit reduction of property taxes, and the foothills utilitiers reassessment plan will provide substantial economic benefits to the andowners. MOTION: Councilwoman Semen introduced the following ordinance and moved, seconded by Henderson, its approval for first reading: "ORDINANCE OF THE COUNCIL OF TEE CITY OF PALO ALTO AMENDING SECTION 18.08.030 OF THE PALO ALTO MUNICIPAL CODE (TEE ZONING MAP) TO CHANGE THE CLASSIFICATION OF CERTAIN PFOPERTY LOCATED 1N THE CITY OF PALO ALTO SOLTbERLY OF ROUTE 280 FROM P -C, R -E -A AND A -C TO O -S AND FROM R -E -A TO P -F" Councilman Beahrs stated that he is in favor of the preservation of open space but still ',relieves in his original position that the people should vote a bond issue to cover this unique and ultimately costly program 'In this vote the people should express their opinion on the City's purchasing only all lands necessary to preserve the visual aspects of the foothills for the people in the lowlands with other lands allowed controlled development on the basis of expert opinion. He spoke of the short supply of residential land, the increasing land values and taxes. and the increasing pressures to develop moderate - or low-cost housing. He concluded that, in his opinion, the Council should reconsider the whole proposition and provide for legitimate, well - programmed needs of the communities of the future, and with all this, have the courage to provide for preservation of the beauty of the environ- ment. Councilman Henderson spoke to comments from the Planning Commission minutes and statements this evening that the landowner should receive the maximum value for the land. He raised the questions of whether government should guarantee certain maximum values on corporate stocks and pay the difference between that value and actual proceeds from the sale of stock; guarantee certain percentage return of profits for each business:organization and protect investments by paying the difference between actual profit and the guaranteed amount; and - if not, then catty should a landowner he guaranteed maximum profit potential on his holdings? He referred to the skyline from Millbrae to San Francisco and asked what is more important to the citizens of Palo Alto --retaining open space for the eventual enjoyment of Millions of people, or covering the last undeveloped land with ho'tses for the -benefit, of a very few persons. He pointed out that the city is trying to find other solutions to the housing problem, and the new county tax of $.10 per $100 assessed valuation is for the purpose of buying land for the Regional Park at fair value. He noted the tremendous amount of attention and study the City has given to the foothills open space preservation and stated that all efforts are pointed toward preservation of these lands and at the same time retaining values for the owners well above their original cost. 243 7/31/72 Councilman Berwald commented that the question comes down to: In wins-- sideration of the public interest, not only in Palo Alto but regionally, to what extent is there any validity to the comments stated that the City`s rezoning of this land constitutes a taking of -land without just remuneration. Does it deprive the property owner of his reasonable property right3, and does it really preclude his development to thepoint that he would really lose a substantial value of the land? He said that, in his opinion, there had been some hardship on the property owners due to the uncertainty during the eighteen months or so of the Livingston and Blayney study and during the moratorium period. However, this was for an eventual good purpose, and the proposed rezoning leaves many avenues open For development of the property which would remunerate the owners for :he value they have in the land. He asked Mr. Stone to comment. City Attorney Stone stated that first he would like to disabuse anyone's mind of the City's being estopped scmehow from entering into this change of zoning because of deals that some landowners might or might not have entered into some twelve years ago. It is a fundamental legal precept that the City may not be estopped from legislative action by the oct of any of its agents. With respect to the rezoning's being a taking without just compensation, if staff believed that were a fact, they would not be recommending rezoning to Council. He noted that the uses permitted under the proposed zoning are broader and more varied than w:he uses under the existing zoning on any of :these pieces of property. There is a major difference in terms of lot size which might, to some degree and with respect to some properties, enhance the property, and it is staff's conclusion that the proposed zoning is not a taking with- out just compensation. With respect to this type of zoning's denigrating the advances of low -moderate income housing, he stated that from a legal standpoint, he finds this a particularly ludicrous argument, since the City of Palo Alto in the last eighteen to twenty-four months has done more in terms of the researching and implementing of techniques for putting lour --moderate income housing in what is essentially an extremely high land cost area than any other single city in the state. He noted that planning professionals have told the City that the foothills simply are not appropriate, from a physical, economic, or municipal. -service standpoint, for low --moderate income housing. - Louie Fourcroy, Special Projects -Director, responded ..to. -ea question from - Councilman Berwald regarding the basis used by -Staff and stated that the question more properly is within the context of the ordinance does the property owner have a reasonable possibility for a reasonable use of his property? Staff has come to the conclusion that he does. Mayor Ci'asteck summarized that staff is saying that in their planning and legal professional judgment, based onconeiderable research, there is a professional and legal basis foe supporting the zoning as ori- ginaily established by the Council and in addition, supporting the Council's action this evening. Mr. Stcne commented that soave people are under the misapprehension that it is a question of loge of profitability that is important and stated that the question of profit doesn't enter into thia. In.legal terms, what is important is whether or not a landowner -has reasonable ese of his land and not whether he can make=a re&soneble profit. The question is: "Can the land -.h2 used reasonably for the benefit of the owner?" This does not_rean for resale; it means reasonable present nee, and he stated that in his opinion the answer -had to be a clear and -resound ing "yea" under the term 2f the ord/pance_..before, Council... Councilman Berwald questioned what will happen under the ordinance with respect to the buildings, including the greenhouses and homes, an the Yee property. Planning Director Knox replied that the.Yees can continue indefinitely in the current use. Councilman Berwald spoke of his hope that the Livingston and Blayney study would have come up with a set of criteria for the development of an urban area, selectively addressing itself to the various properties with a maximum amount of open space and optimum amount of aesthetic protection. This has not been achieeed, but the City is heading in that direction. He expressed regret that some people who had spent a lifetime working and saving to put their money into this property, not for speculation but for investment, were being accused of trying to make some gross profits, Councilman 8eahrs spoke to the subject of law -moderate income housing, stating that he never did consider the hills as being the appropriate locale for this type of housing hut pointing out that his argument was that if you restrict the supply of land available for residential C?ev L 1op_:ent , you are increasing the s ,arcs ty of housing. The cost of 1Lnd is the controlling factor in the City's ability to obtain reason- ably moderate- and low-cost housing, and as the cost goes up, the taxpayer is forced to subsidize the cost. The ordinance was approved for first reading on the following roll call vote: Ayes: Berwald, Clark, Comstock, Henderson, Norton, Pearson, Rosenbaum, SeiLn Noes: Beahrs Duration of Variances MOTION: Mayor Comstock introduced the following ordinance and moved, seconded by Pearson, its epproval for fi t reading: ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING SECTION 18.90. 160 TO TdE PANC TO PROVIDE FOR THE DURATION OF VARIANCE S . The ordinance was approved for first reading on a unanimous voice vote. Re uest of Youth Adviso Council -That Its s arter Resoluation Be men d Mayor Comstock recognized Greg McAtleater, acting chairman, Youth Advisory Council. Greg McAllester referred to his memo to Council sated July 26, out- lining the four changes recommended to Council for consideration and approval which would amend the present resolution No. 4406 and the amended resolution No. 4586. The most important of these recommmenda- bona has to do with the official correspondence of YAC, which at the present tie is required to be sent to the City's staff liaison - for approval' as to form and content. He said this has been a sensitive area with past as well as present YAC members, and it is s t rongl.y requested that the YAC not be subjected to this type of censorship. 2 4 S 7/31/72 Councilman Beahrs commented that since there has apparently been no cause ! < concern over YAC's correspondence for some time, he would be willing to approve this change. MOTION: Councilman Henderson moved, seconded by Berwa.ld, that staff be directed to prepare an amandding resolution to the YAC Charter Resolution to cover the changes recommended by the YAC in their letter to the City Council dated July 26, 1972. The motion passed on a unanimous voice vote. Dlu Abuse {'ortrol Program: Contract Approval (CMR:388:2) Mayor Comstock stated that the City Council has received a report from the City Manager which describes details of the proposed agreement hetereen the City of P:i1c Alto and the Palo Alto Comulenity Druz Abuse Board. The report also details some of the negotiations that have occurred and brings out salient features of the proposed contract. It also points out several areas in which the staff and the board cannot come to total agreement. Ma; .r Comstock said that it would be neces- sary for the Council to respond to some of the issues that are rasied and deal with them. He then asked the City Manager to give a surmary report. City Manager Sipel stated that the contract is consistent with Council policy established over the past year, and particularly in March, on this particular subject. The agreement is unlike anything the City has been a party to in his experience, because it provides for a program where measuring effeceiveness is difficult. Trying to define the program in precise terms is difficult to aecoaaplis`a. This agreement represents the best efforts of staff and the drug board in that regard. He out- lined several areas where agreement was not reached: 1. Right of the City to unilaterally terminate the agreement during the first year for material breach. This clause represents the only significant authority the City Manager or City has to exercise during the first year. 2. Indemnity. City Manager Sipel said he felt it necessary to minimize exposure or loss. 3. Extension of services in the event of termination. The staff has agreed to,a 60 -day phaseout from the Residential Treatment Center uuL not for the Community Treatment Center, which would be 30 days. In eummar , City Manager Sipel said the proposed agreement represents a new direction for the City. He thinks that the agreement emphasizes the need for mutual trust. Mr. Walker represented the City in dis- cussions with PACDAB and can respond to specific questions. Assistant City Manager Walker stated that the contract was communi- cated to Council as hastily as the staff and the board could put it together. The Dist meeting that the board held concerning this was Wednesday, the day before the contract was sent to Council. Thus there were some things that needed clarification or correction that could only be communicated to Council at this time, and these are: 2 4 6 7/31/72 On Page 2, 4. SCOPE OF SERVICES (b) change " ..and students in the Palo Alto Unified School District" to read "...and/or enrollees of Palo Alto Unified School District." On Page 3, 5. TERN OF AGREEMENT (b) Right to Suspend or Terminate, change to Right to Terminate. On Page 3, 5. TERM OF AGREEMENT (d) Extension of Services, delete the words "basic personal, medical and psychiatric" from the fifth line of this paragraph. (In Page 5, 8. RECORDS OF CORPORATION (b) Financial Records, delete the words "or suspension" f-om the last line of this ,aragraph. On Page 7, 12. MEETINGS OF CORPORATION, delete the words "or any part of" from the last line of this paragraph. On Page 8, 20. EMPLOYEES AND LIKE PERSONS, ad6 the words „connected with the program" after the word "acts" on the last line of this section, On Page 9, 22. PROPERTY (d) Disposition of 'roperty, delete the words "or suspension" from the first line of this paragraph. Finally, Mr. Walker noted a typographical error on Page 1 of Exhibit A, where on the second -to -last line "O.Y.C.W." should read "O.I.C.W,:" Mayor Comstock summarized the staff concerns: namely, the matter of indemnity, which is included in the proposed agreement, although it is a,point of contention between staff and the board, and the matter of extension of services, which relates to language included in the contract which staff feels is desirable, even though there is dis- agreement about it, Mayor Comstock then discussed the issue of nondiscrimination with Attorney Charles Schulz who referred to Page 11, paragraph 29, of the contract which contains extensive language having to do with nondis- ..(i�L crimination and affirmative action requirements. He said the only issue is whether or not in any subcontracting the board might enter into, they should be obliged to execute City policies regarding sub- contractors the board might hire and the feeling of the board was that this was an area not primary to the activity PACDA3 wishes to engage in. However it could be added to the terms of the contract if Council feels it is appropriate and desirable. Responding to Mayor Comstock's etatement-that the board proposes that there be no prohibition on any members of PACDAE being employees, and 1~e personally has misgivings about that, Charles Schulz said this is a very important point. It, goes to an issue of trust. We are here to establish a basis for a relationship for a new venture in Palo Alto. There is going to be extensive cooperation between a public and a private area. There is going to be a legitimate use of p blic revenues to -relieve a public epidemic. The corporation represents 14 members of a task force appointed by the Council last year, plus 7 other people added to that board a month ago, to make the board representative of the community. When'the Council took action on March 13, it decided 2 4 7 7/31/72 the City would not try to conduct this program by itself. It decided an independent group should try to do the work in the area of drug abuse. The document in front of Council tonight is supposed to set terms and spirit of this cooperation and not frustrate the performance by either party. Many provisions in the contract explain, explore, exparLd on, and identify the cooperation that is to exist. PACDAB feels there'are areas of trust, independence, and internal affairs that they must handle them- selves. The point about members of the"board and persons who 'sight be employees was discussed before Council on March 13, and PACDAB decided that it wanted to be free to hire the best people for any ,fob that might be available. it turns out that a number of people on the board have qualifications which may be what are: needed. It is on these bases (1) qualifications and (2) models already around to be considered, that PACDAB wants to have the reedon► to hire a board member as a staff person. The bylaws state that"that person shall not vote in matters of salary or appointment or discipline with regard to his particular position. Mayor Comstock asked Mr. Schulz to comment on the three najor points that are in the City Manager's report ---suspension, indemnity, and extension of services --and explain the basic reasons why PACDAB cannot accept what is being proposed. Mr. Schulz said in reference to the breach provision, the contract, as written, could be terminated for a material breach of a substantial provision if uncorrected for twenty days or more. PACDAB is a unique venture for the board, the City, and everyone in Palo Alto. There is going to be a period of time of making mistakes. It is extremely important as an article of faith and trust that all parties involved agree with one another that they will not allow anything that arises in the first year to break down this contract or this relationship. City Attorney Stone 'responded to a question from Councilman Clark that decision on a breach of contract would be made by the project manager. in the first inatance and probably ultimately by the Council, if uncorrected. City°Manager Sipel responded further chat if in his considered judgment there were a material breach, Council action would not be required to cancel the contract,. We are really talking about funding, he said: However, he considered this probably one of the most important programs that the City Council has this year, and couldn't conceive of a situation in which he would terminate a program of this magnitude without coaxing back to the Council. Responding to a suggestion made by Councilwoman Pearson, City Attorney Stone said if it is the Council's desire to have only the Council have the power to terminate, it should be in the contract. He suggested adding this to 5 (b). Councilman Berwald asked if this would be an unusual clause. Is it different from the clause that is generally in other Contracts and if it is, shat is there in this contract that is not present in other contracts? City Attorney Stone stated that the terms of this particular agreement with respect to termination are substantially different from the normal provisions. Noraally it states that the City Manager- or the Project Manager has unilateral opportunity and responsibility to accept the services of the contracting agent, and if these services aren't accept- able, he can terminate the contract, usually with 30 days' notice. Councilman Berwald said that was the point of his question. Certainly mutual trust is necessary. What is unusual about this contract that would make it different from other contracts the City has and would cause us to change the termination provisions? Why is there a different termination clause? Mr. Stone replied that it is true that the proposed termination clause is substantially different from other City contracts. The reasons are as articulated by the Manager in his report and some of Mr. Schulz's comments, going toward the nature of the contract, the nature of the problem being attacked, and the fact that many of the services to be rendered are experimental and have to be evaluated later. It is that kind of situation which makes this contract substantially iifferent. Those are matters of policy, not legality. Councilman Berwald then asked: If we attempt to terminate and the contractor does not want to terminate, what happens? Under the normal contract, the City can terminate, period. Why not under this onei City Attorney Stone said the contract may be terminated as stipulated under paragraph 5 (b) . if the contractor refuses to quit, the answer is that he isn't going to have any money unless there is some other funding source. Mr. Schulz said he wished to point out that the words "substantial violation of material provision" are words that may mean something different tc everyone on this Council and in this room. After you have said that, how far do you go before you start wondering what is material and what is substantial? PACDAB`and the City should operate in the area of trust for this first year. 4r. Schulz continued that the -60 -day provir3ion is Very important for Council to consider as the normal consequence of a termination. That 30 -day notice provision will not operate in the first -;ear. In the first year there will only be a notification ' of a material breach, a 20 -day period for correction, and then the door is claied. Another way in which that could operate even more abruptly would be a budget deadlock on the 'problem of the next yeaCs budget. The issue is the services PACDAB will be rendering to_people who may have committed a good bit of their lives to the program we are trying to work out, and the board feels it is not simple enough to say that those people who have committed them- selves to a residential facility need special concern but anybody else will find someplace else to go. Counselling relationships and referrals art going to require a great deal of consideration for the people the program will 'serve, and for that reason, the board feels that a single standard of a 60 -day phaseout for all provisions of the services would be appropriate in the event of termination. Councilwoman Pearson said 60 days would be agreeable to :per for both the CPC and the RTC. City Manager Sipel confirmed that the first year there is no automatic provision for 30 -day termination of. the CPC, but in the second year there is. 2 4.9 7/31/72 Further discussion ensued regarding 30 days' termination reriod for the CPC during the first year, and Mr. Schulz said he thought it would result in a shifting of people from one place to another and that 30 days for CPC and 60 for RTC would lead to problems. Councilman Beahrs referred to Paragraph 6, Budgets, Section (b), and said he wondered why it shouldn't be "The budget subsidized by the City for the fiscal year shall not exceed $205,000." It would be his hope that over the years there miht be other financing available to PACDAB with less restrictions on what the board ,right: -wish to do. In fact, this might be an inducement to the board to get away from the father. Mr. Schulz replied that if the interpretation of the word "budget" is as restrictive as indicated, Councilman Beahrs is correct. He had _nterpreted the word "budget" to mean the services the City is providing in this contract. Nr. Sipel said the way Mr. Schulz has explained it is the way staff understands it. There is no way the City can control the budget except with respect to the funds it provides. Councilman Beahrs questioned the availability of the insurance stipulated for in Paragraph 5 and suggested that some people might be less than enthusiastic about insuring this operation. In response, Mr. Schulz said John Johnson has checked these coverages and has not found any to be unobtainable. Price, deductible, exclusions, etc. may be a different thing. If PACDAB cannot obtain the insuran e, they will have to come back to Council and ask what the City wishes the to provide instead. Speaking of indemnity, he said this is an area best referred to in trust. PACDAB is supposed to hold the City harmless with the City's own money. It has been suggested that this means that money from other sources will be available to indemnify the City. Foundations are not going to be eager to give money to PACDAB for it to hold the City harmless in another contract. This provision is traditionalj.y applied to profitmaking ventures. PACDAB is not that kind of organization. It consists of 21 people working in a nonprofit corporation for the benefit of the City of Palo Alto, and there is no proprietary interest here. It may be a matter of cost. Insurance would be more costly if an indemnity must be provided to the City. Full exchange cf information will be available to the City for it to find out what is going on. It would seem that this would be the area where the City would Se best protected, coupled with insurance. Councilman Beahrs said he agreed with the concern and feltit is import- ant for people to realize that this is a serious problem and will hinge to a large degree on how the affairs of the corporation are conducted. Councilman Henderson suggested since "ot suspension" is being deleted all the way through, 5(b) ehould merely read "Right to Terminate." On 5 (c) Payment, the last part of that says, "...the total compensation to be paid during any partial year of service shall not exceed the pro- portionate share of time elapsed during the fiscal year to the date of termination." He could see some real problems with large outlays made during the early part of the year. What would happen if more than half the woney were spent on expenses in less than half of the year? Assistant City Manager Walker said this simply represents -sway of limiting the City's financial liability during any year. Mr. -Stone`,. 2 5 0 7/31/72 points out that probably the hest way of expressing it if you don't want to limit it to the proportionate share is to say that the compensa- tion to be paid during any partial year of service shall be limited to money actually expended. It is simply a policy matter. Councilman Henderson said he would prefer that. Page 4, Section 6 (d), Payments, speaks of the payment by the City as expenses are incurred by the corporation. What if the full City budget for the fiscal year has not been expended by the end of the fiscal year? What happens to the .leftover funds? Also there is no incentive to keep the costs below the budget. Mr. Sipel replied that the funds would go to the same place that any other unexpended funds would go, and that is to the General Fund and hence to the Capital Improvements Fund. The funds would not be held over to the next year. Councilman Henderson referred to 8 (a) at the bottom of Page 4 and said as one who has to prepare reports at the end of each month, he ffnda the fifth day a tight schedule. He wondered ii they should con- sider changing this to the fifth "business" day. On #10: EVALUATION OF SERVICES, Councilman Henderson said this is quite a major evaluation program, and he recalls the original proposed budget's speaking of $35,200 as part of the original program. This appears to be a cost that the City bears beyond the $205,000 funding. He believed the federal grant that was considered here recently is to be applied against this expense. It would seem to him to be a sizable outlay, and it seems to go beyond the original thinking of the Drug Task Force. Assistant City Manager Walker respondeo"that staff thinks that to accomplish this section the vay it is written would require the supple- mental federal funding, and staff hopes to be able to report to Council shortly that it looks favorable that we will receive that. If not, staff is confident that the major part of this can be accomplished with the $35,000 that we would anticipate spending for evaluation during the coming year using City funds alone. Councilman Henderson;asked if that would be in addition to the $200,000 going to the corporation or as part of it The section in question seems to be worded in terms of the City. This will be borne by the.. City, it says. Assistant City Manager Walker said this agreement does not contemplate the $35,000 being part of the $200,000. It is an additional expense. Funds aren't specifically budgeted for this. Staff's hope is that a s'ibstantial.part of this will he provided through federal funding. If not, Council would have to consider an adri`ticnal appropriation or the application of contingency funds. Responding further to Councilman Henderson, Mr. Walker explained that Section 14 as worded gives tha project representative the reaponst.bility to get the minutes to the liaison. Councilwoman Pearson raised a question regarding the cost of indemnity and insurance. Ur. Schulz replied that he could not say bow much, but Mr. Johnson has investigated costs carefully. Cicy Attorney Stone reminded Council that before the contract is effective, the budget must be approved by Council. That weight be the appropriate ti ,ie to reconsider indecnn ty if it does turn out that there is a substantial increase in cost. However, staff feels that indemnity should remain in the contract, certainly at this point. Councilman Rosenbaum said he had the impression that the $205,000 figure was to include evaluation, in accordance with the policy set in March. Was that impression wrong? City tanager Sipel agreed with Councilman Rosenbaum's impression and said that is the way he had recalled it. Thee came the discussion of an evaluation to be performed by the City and substantially more costs than anticipated in the original Task Force report. He said his feeling is that the $205,000 program provides for an evaluation phase. If that is done by a grant, then the $205,000 figure should be reduced by that $35,000 amount or something near to it. Councilman Rcsenbaum's recol- lection jibes with the way he remembers it. The budget would be the controlling factor. Dr. Allan Seid stated there is a substantial difference of understanding between the board and Mr. Sipel's statement. With regard to funding that might be received for evaluation from the federal government, that would not reduce the $35,000. This is the understanding of the board. lie said he feels strongly about that understanding, because he rent to check on this issue based on the understanding that If the federal grant application being submitted by the City is successful, that the $35,000 ;s not reduced. It was on that basis that he went lobbying for the City for federal funding, and he wants to make it clear that there i3 a difference of communication at this point. City Manager Sipel said perhaps the answer is that the proposed evaluation phase that is being suggested new was not contemplated when the Couacii made its original policy decision in March. We are perhaps talking about additional funds. That decision should perhaps be made at the time we have more idea about the federal funding and at the time we receive a budget from the board. Dr. Seid continued that this item is of crucial importance because of the fact that back in March when Cpuncil voted on allocating $200,000, the Task Force made it quite clear then that the evaluation component of this program was an essential part of the program, and it WAS on that basis that Council would allocate $200,000 instead of the $240,000 requested --that the additional $40,000 might be forthcoming should the RTC be able to be started on time, but at no point was there any mention that the $35,000 for evaluation would ,in any way be deleted. He would say clearly that if there is a change of position in term of the City staff about how the federal grant money will affect the money that was allocated for evaluation of this program, he could not in good conscience continue to lobby at the CCCJ level for federal funding for evaluation. He was able to do so with the understanding that should the federal application be successful the $35,000 would not be deleted. PACDAB's program of evaluation calls for that $35,000 which is part of the $200,000. The idea of asking for additional funds for evaluation was not initiated by P CDAB. It was initiated by City staff, and it is a separate rn tter and should not be construed.in any way to be altering the original understanding which Council passed in March. Mayor Comstock summarized that he understood Dr. Seid's statement to say that $205,000 includes $35,000 which he would call the scaled -down evaluation program. The evaluation referred to in the proposed contract is not what he considered as "scaled -down." It is an expanded pro- gram, he said. 2.5 2 -7/31/72 A.sistant City Manager Walker clarified his earlier statement. If the federal grant is obtained, the $35,000 that the City has set aside would be used as matching funds and would be used in addition to the federal funding. Ve said he misled the Council earlier in suggesting that the $35,000 should not be considered-- part of the $200,000. He was thinking in terns of the budget limitations spelled out in the proposed agreement which sets a ceiling on the City's contribution to the actual program, not including evaluations, and that is an expense reserved to the City. The $200,000 contemplated includes whatever evaluatioi;.expenses would be incurred during the fiscal year. _ Councilman Rosenbaum asked if the City gets a federal grant, wilt it be for purposes of expareion of the program beyond what the City is already supporting, or will ic'be allocated in terms of attempting to support the present program and relieve the City of the burden. Dr. Seid responded that he thought that would be contingent upon speci- fically what kinds of things they wished to apply for, and this would be done in collaboration between the board and the City staff where appropriate. Hopefully, whatever monies can be received from; state or federal level will expand the program. City Manager Sipet commented that this is a question that is difficult to answer, because the program isn't yet in effect. He thought the position of Dr. Seid as articulated would be one alternative and is probably hew it would be. Additionai funds would be used to supplement but not supplant City funds. At the same time, staff would hope for a gradual elimination of the City as a major sponsor, assuming other funds are available. It is a question that can't be answered at this time. There is a variety of alternatives. Councilman -Rosenbaum said the question really is would PACDAB be willing to cooperate with the City if the City saw a way to -apply for a gracnc that would relieve the City of the burden of this. Dr. Seid replied there wouldn't be any lack of cooperation. In terms of priority with regard to PACDAB, the Vj priority is to have a quality program. Councilman Henderson said since he raised the question of evaluation of services, he personally wanted to assure the corporation of the $200,000 budget for the year, and -tie would not think of cutting that back because some federal money came in. His question was whether Paragraph 10 (a) was committing the City to something beyond $200,000 if the federal granc did not come through. Assistant City Manager Walker responded that if the federal grant is not approved and forthcoming, then the staff would.anticipate staying within the. $35,000 allocated previously for evaluation. There is no intent of using.money that would otherwi3e be available for treatment ar'i prevention _ to expand evaluation. - Councilman Henderson asked Dr. Seid if his understanding is that if the -grant does not cons; +or the evaluation of services, then the cost of that evaluation would`be a part of the contract with the corporation as originally designed. Dr. Seid confirmed that is his understanding. 2 5 3 7131/72 Mayor Comstock called for comments from members of the audience who wished to speak. Mike Fox, 3381 Park Boulevard, said that his perception of "cooperation" is that if both parties were working in a spirit of complete cooperation and trust, it wouldn't be necessary to have a contract. One has to start with the premise that there are same different ideas, and this contract is another issue around which differences of opinion are focalized about the program. Regarding termination and hoard people being on the staff at the same time, it is a question of autonomy. Autonomy is an essential factor. The whole thing of material breach has to he defined. The program should be guaranteed for at least a year, and the board should be able to make the decision about staff. He would be opposed to using federal funds to get the City out of the program. He felt termination shouldn't be written in the contract, and the CPC should have 60 -day termination. MOTION: Mayor Comstock moved, seconded by Pearson, approval of the agreement as proposed by the staff and attached to agenda, including the corrections read by Mr. Walker earlier this evening. AMENDMENT: Councilwoman Pearson moved, seconded by Henderson, that Page 3, 5 (b) Right to Terminate be amended to add a final senten.:e: "Termination by City of this agreement shall be by Council action only." The amendment passed on a unanimous voice vote. AMENDMENT: Councilwoman Pearson moved, seconded by berwald, that Page 3, 5. _ TERM OF AGREEMENT (d) Extension of Services be amended to add on the third line, after "...Residential Treatment Center", "and clients of the Community Prevention Center." _-- Councilman Henderson commented thae if he CPC remains open for 60 days prior to termination, there will be new people coming in, and he wondered how a phasing out point would ever be reached. Councilwoman Pearson said this is the kind of question it is up to the center to determine. City Manager Sipel said he wished to point out that while some goad reasons have been articulated for making the -termination periods uniform, if Council passes this amendment, the CPC will have a 60eday termination clause rather than a 30 -day termination cause. amendment passed on a unanimous voice vote. Councilwoman Semen said she would like to see included additional wording about nondiscrimination. Problems of drug abuse certainly have high, priority in this City -but no higher than problems of discrimination, she added. AMENDMENT: CounciLeoman Seman moved, seconded by Beehrs, that the agreement be emended to' require the corporation to include an Additional nondiscrimination clause in its contracts with other agencies (subcon tractors) and staff be instructed to prepare appropriate 'cording to be added to Section 29. NONDISCRIMINATION on Page 11. City Attorney Stone said staff had prepared a_statement to be included after the first paragraph of Se^t1on 29. Such statement is reproduced below. 2 5 4 7/31/72 "CORPORATION Fgrees that each of its contracts for services from independent contractors shall contain a provision sub- stantially as follows: 'CONTRACTOR shall provide CORPORATION with a certifi- cate stating that he is currently in compliance with all Federal and State of California laws covering nondiscrimination in employment; that he will pursue an affirmative coarse of action as required by a Affirmative Action Guidelines of the City of Palo Alto; and that he will not discriminate in the employ- ment of any person undei this contract because of race, color, stational origin, ancestry, or religion of such. person. CONTRACTOR shall also complete a question- naire, submit the information required to formulate a Minority Employment Program, post notices, and rake progress reports to CORPORATION for filing with the City of Palo Alto, all substantially as required by the A f f; rive Action Guidelines of CITY. The :,znority employment pia _r formulated will be subject to analysis by the City Manager with the objective of determining if the program represents a reasonable effort to further minority employment. If the City Manager determines that the program does not repre- sent such a reasonable effort, CONTRACTOR agrees to cooperate and consult with the City Manager to pro- duce a reasonable program. If the CONTRACTOR and the City Manager cannot agree, CORPORATION and CONTRACTOR, agree to submit the matter to arbitration, in accordance with the rules of the American Arbitra- tion Association.'" The amendment passed on a unanimous voice vote. City Manager Sipel responded to a question from Councilwoman Seman regarding definition of "material breach of contract." He said it is pretty hard to say what it . wotsl.d be. The chances Of invoking this - t clause are remote. Councilman Rosenbaum said it is important to remember,that this is a City program, and the City is going to he held accountable, regardless of the fact that a separate board has been set up, He 4id not think it reasonable to have board Members and employees serving together. The board's function of evaluating the work of an organization is an important concept. He would like to have it clearly stated that a present member of the board would not be eligible to be an employee without resigning from the board. AMENDMENT: Councilman Rosenbaum moved, seconded by Beahrs, that Paragraph 20. EMPLOYEES AND LIKE PERSONS, be amended to state that no one shall simultaneoualy serve on the board of the.corporatton and be an employee of the organization. Clarence glow, 742 Komar, speaking to the proposed amendment, stated the original intent as set by the Council was to have an independent board to deal with the problem of drug abuse in Palo Alto. One of the tr,ique phases of this program had to do with the board's being independent - and the programs not being centrally controlled by central government; yet what is happening tonight is that the -board will be a rubber stamp 255 7/31/72 for the City Council; that indeed this is a City program. He said he would hate to see Council put any stipulations on the board with respect to who they do and do not hire as well as other contractors. It would be difficult to assure this audience that members of independent corpora- tions and partners in business are not doing some of the work under the contract. Mr. Blow said if he were not assured that it is an independent board, he did not think he wanted to serve. Phil Troustine, 7?.0 Waverley Street, suggested looking at this question another way. Instead of asking, "Can directors be employees?", turn it around and ask, "Can employees be direetors?" That is a very important question, because that means that people who work in the program also have abii"y to snake policy decisions. He would want to see all of the employees be directors of the program and have a real say in what goes on in the program. It should be a working body. Councilman Berwald said he was going to encourage Council to approve this contract this evening. Ccmmenting on the amendment under con- sideration, he said he could understand Mr. Rosenbaum's proposal, Earlier in the evening, perhaps he would have made the motion himself, At the present time, he felt this to be a fairly minor point. Council must realize it is signing a blank check for drug abuse with the assurance that this grotto is going to perform, and the only control the City has 33 at the erd of the year when deciding whether or not the program will be budgeted again. He said he is not so sure that it is too bad to have employees on the board. Councilman Clark stated he was fast changing his mind but wanted to toss up some concerns. The City is handing public funds over to a volunteer board of public-spirited citizens who are giving their time to the project. He had some concern about public opinion if several mem- bers of the board turned out to be employees. Mr. Blow feels this would make the board a "rubber stamp." He did not agree. Once the necessary legal document is completed, the board is going to be independent. He was concerned about the board's usage if it is possible for them to hire board members as 'ieployees. Under these circumstances, if there are mistakes, it will be tougher. See Page 262 Councilman H,endersen commented that PACDAB is not a commission or council of the City,:and precedent does met exist to have board members paid by the City. The Housing Corporation is an example. Councilwoman Seman urged a "co" vote on this amendment. The ammoendment failed on a majority voice vote. Charles Schulz raised two additional items discussed earlier this evening. The first had to do with Page 3, Section 5 (c). AMENDMENT: Mayor Comstock moved, seconded by Pearson, that -Page 3, Section 5, TERM OF AGREEMENT, (c) P'ayssr:ut be amended on the -last line to delete "...the proportionate share of time elapsed during the fiscal year to datft of termination" and insert "...monies actually expended to date of termination." City Attorney Stone confirmed that this would mean effective date of tersainetian, ,rather than date that notice of such termination is given. The amendment passed on a unanimous voice vote. 256 7/31/32 Mr. Schulz then referred to Councilman Henderson's earlier suggestion regarding fifth business day, rather than fifth day of the month. AMEN'DMEN'T: Mayor Comstock moved, seconded by Pearson, that Page 4, Section 8, RECORDS OF CORPORATION, (a) Monthly and Quarterly Reports Records be amended to add the word "business" after "fifth" on the last line of the page. The amendment passed on a unanimous voice vote. The motion to approve the agreement between the City of Palo Alto and the Palo Alto Community Drug Abuse Board as amended by Council and including the amendments listed by Assistant City Manager Walker passed on a majority voice vote. Traffic Signal. Improvements --El Camino Real (CMR:385;2) MOTION: Mayor Comstock moved, seconded by Pearson, that staff be (1) authorized to prepare and execute a forma/ agreer:?enr with the California Division of Highways, stipulating that the City will finance the traffic -signal improvements at El Camino Real, and 2) directed to prepare for the Council's approval a budget amendment ordinance_ to the 1972-73 budget to provide an additional allocation of $85,000 for financing of the improvements, such financing to come from c e unappropriated gas tax funds available in the current "Street Improvement Fund," Mayor Comstock recognized Mrs. Corinne Brazier, 264 Fernando Avenue, chairman of the Olive -West Meadow Residents' Association, who urgod Council to approve proceeding with the traffic -signal improvements at E1 Camino Real -Hansen Way -Portage; El Camino Real -Curtner Avenue; El Camino Real -California Avenue. William Chester, 4153 Park Boulevard, spoke of the difficulty of entering and leaving the neighborhood since certain modifications were made; and he noted,that the improvements on El Camino Real were presented as an integral part of the overall plan. It is the recommendation of the Palo Alto Co-op that these modifications be carried out. They are con- sidered to be essential to the safety of the neighborhood. The motion passed on a unanimous voice vote, MOTION: Councilwoman Seman moved, seconded by leara►on, that the Council give this praject the highest priority and recommend to staff that they carry these modifications forth with top priority of all traffic light signalization projects. The motioa passed on a majority voice vote, Animal Services Program: State& Report (C t:387:2) a��+®tin.Mnreea+anvea.�e .,u�.. Mayor Comstock acknowledged receipt of the staff report. MOTION: Mayor Comstock introduced the following ordinance and moved, seconded by Beahrs, its approval for first reading: 2 5 7 7/31/72 See Page 262 (2 additions) ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTIONS OF CHAPTERS 2.08, 4.04, 4.18, 6.0&, 6.08, 6.12, 6.16, 6.20, 6.28 AND 6.32 OF THE PAMC REFLECTING CHANGES REQUIRED BY THE OPERATION OF TILE. NEW ANIMAL SERVICES AND PLACEMENT CENTER, AND ADDING REGULATIONS CONTROLLING DANGEROUS AND WILD ANIMALS INCLUDING DOGS Ted Sorich, 1000 Henderson Avenue, submitted a form announcing a Veterinary Medical Officer II position offered by the State of California and said there is apparently nothing wrong with the location and salary for the position offered by the City of Palo Alto. He ques- tioned whether the conduct of the local Vet Medical Association was proper. The ordinance was approved for first reading on a unanimous voice vote. MOTION: Mayor Comstock moved, seconded by Henderson, that Council approve the agreement between the City of Palo Alto and the Humane Society. The motion passed on a unanimous voice vote. Re9L,rt of City Attorney Re False and Misleadir1c At, Advert ]A MOTION: Mayor Comstock introduced the following resolution and moved, seconded by Beahrs, its adoption: RESOLUTION NO. 4631 ENTITLED "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO SUPPORTING AND URGING ADOPTION OF SENATE BILL 912 PERMITTING CITY A'T'TORNEYS TO BRING INJUNCTIVE ACTION AND SEEK CIVIL PENALTY FOR FALSE AND DECEPTIVE ADVERTISING" Councilman Berwald stated that he would oppose the motion because he was rather wor'-ied. that revenue sharing aspects will encourage cities to go out and bounty hunt for deceptive, advertising cases. 11e "said that many of these take place throughout tbe county, and he felt it best for action to be taken at the county level. He feared the result would be to add to harrassment of business. He felt the City b.as ample opportunities for enforcement at the present time. He said it is his understanding that AB 1763 will take precedence over runny of the provisions in this bill and that the major effect of this bill is to provide revenue sharing to the cities. He feared the self-interest that this approach generates will lead to lack of cooperation between agencies and to decreased effectiveness. City Attorney Stone responded that this legislation would increa,?e the cooperation between the district attorney, the attorney genera!, and the city attorney, whereas right now there is very little. opportunity to cooperate and share information. At the present time the city attorneys generally refer these kirds of items to the district attorney's office. Most prosecution would continue to be done by the district attorney, but adoption of this resolution would give the city attorney more flexibility on obvious problems. 2 5 8 7/31/72 Councilman Berwald stated that in his opinion the city attorney has this option available to him now. He said he did not think it would be easy to prove a case of deceptive and misleading advertising, and the city attorney's office shoi;.ld be employed in carrying out local matters. The resolution was adopted on a majority voice vote, with Councilman Herald. voting "no." G -Owned Ambulance Service Mayor Comstock asked Council whether they wished to continue with discussion of the agenda items or continue them to the next meeting and adjourn to executive session. MOTION: Councilwoman Pearson moved, seconded by Comstock, that the subject of a city -owned ambulance service be referred to staff for a feasibility study, and such study to be returned to Council. After a short discussion, Councilwoman Pearson made the following motion MOTION: Councilwoman Pearson moved, duly seconded, to (_onti.rue the subject of c city -owned ambulance service to the next regular meeting. The motion passed on a majority voice vote. Affirmative Action Programs and ?.endii:g practices � �kl • 0.x.9.. O.�LY IL M.! tutiofs with which Palo Alto Deals MOTION: Councilwoman Pearson moved, seconded by Heaters, to continue the request of Councilwoman Seman for a etaff report regarding affirmative action program and lending practices of financial institutions with which Palo Alto dais to the next regular meeting of the City Council. The motion passed on a unanimous voice vote. Ex ertiti�a Gotmmrait hc�usir� Iuc.'s Fro act MOTION: Councilwoman Pearson moved, seconded by Henderson, to continue the request of Councilwoman Pearson, re method of .assisting Community Housing, Inc. in expediting its project, to the next regular meettlng of the City Council. The motion passed on a Unanimous voice vote. Planni.n Polio Committee -General Fundin Subcommittee Councilman Clark raised a further item of new business concerning the memorandum dated June 5, 1972, addressed to the Planuing Policy Committee from the General Founding Subcommittee, summarizing the findings reached by the subcommittee regarding the possible undertaking of a countywide annual arrangement for HUi) funds, encompassing the fifteen cities and the county through the auspices of the PPC. 259 7/31/72 He said that cities- have been asked to report back to the PPC within four weeks, and he would like to refer this matter to staff this evening. MOTION: Councilman Clark moved, seconded by Comstock, -that the staff report back next week to Council as to how Palo Alto should proceed to --follow up on this request in order to report back to PPC in three weeks' time. Also, that copies of the June 5 memorandum be dis- tributed to the Council. City Manager Sipel said the staff would be pleased to report back on this subject. The motion passed on a unanimous voice vote. Oral Communications No one wished to address Council at this tine. Executive Session Council adjourned to executive session to discuss personrel matters from 12:10 a.m. to 12:45 a.m. Ad;ournient The meeting was adjourned at 12:45 a.m. APPROVE0: ATTEST: City Clerk Ai t 2 6 0 7/31/72 (0)) „./1 A Mayor