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HomeMy WebLinkAbout08041969City Hall Palo Alto, California August 4, 1969 The Council of the City of Palo Alto met on this date at 7:33 p. m. with Mayor Arnold presiding. Present: Arnold, Beahrs, Berwald, Clark, Dias, Gallagher, Norton, Pearson, Wheatley Absent: Comstock, Spaeth Hearin - Miscellaneous Streets Improvement Pra`ect No. 7-3 Mayor Arnold declarec open the public hearing concerning changes and modifications to the Miscellaneous Streets Improvement Project No. 67-3. Bond Counsel Jones advised that the purpose of the public hearing is for the making of a determination by the Council as to whether the maximum interest rate on the Project bonds should be changed from six percent to seven percent in accordance with Resolution Noe 4276 adopted July 7, 1969 which states that intention. City Clerk Klamrn reported no written protests had been received from affected property owners. Victor Buenzle, 470 Monroe Drive, stated he had received a letter from the City concerning the Project some time ago which stated among other things that the interest rate on the bonds would not ex- ceed six percent. Mr. Buenzle opposed the proposed increase in the maximum interest rate. Emmett Gerrity, 143 Monroe Drive, also referred to the letter from the City mentioning the six percent maximum and opposed any in- crease in the interest rate. Mr. Davick, 375 Monroe Drive, stated he was initially opposed to the entire Project and presently opposes the increase in the maximum interest rate. Henry Jay, 460 Monroe Drive, referred to the City's letter mentioning the six percent maximum and asked why the maximum should be raised now. There being no one else present wishing to speak, Mayor Arnold de- clared the public hearing closed. Lengthy discussion followed and Mr. Jones replied to questions con- cerning the state of the bond market at present; the fact that bids are, as expected, close to seven percent, the fact that the City's letter was written at the tirue when the six percent figure was set and was a rea- sorsable maximum; the Council's power to change the maximum interest ' rate as market conditions may dictate with notice, publication and 30 8/4/69 public hearing in accordance with law, such as has been done in this instance; in the Council's lack of any power or authority to determine what bids will be; whether the City could permit t'ae ?top&.rty owners to pay only a six percent interest rate on the bones 1,:-? have the City pay for some or all of the difference for the property owners; whether delays might result in higher interest rates; the actuz 1 cash differ- ence between the six percent interest rate and the amo.0 t bid; the impact on the individual property owners; and what the City's alter- natives might be if the proposed increase in the maximum interest rate is not adopted. City Manager Morgan and City Attorney Hilde- brand also replied to cplestions concerning the proposed interest rate, the power of the Council to make such changes and the seven percent maximum interest rate in effect for other property owners in con- nection with concurrent projects in the City. MOTION. Mayor Arnold introduced the following resolution and moved, seconded by Beahre, its adoption: Resolution No. 4287 entitles; "Resolution Ordering Changes and Modifications, Misc&laneous St: Bets Improvement Project No. 67-3". AMENDMENT: Councilman Pearson asked Mr. Jones to state for her an amendment which would have the effect of permitting the prop- erty owners to pay only a six percent maximum interest rate with the City to pay any difference. Upon advice of Mr. Jones that such an amendment to the proposed resolution is impossible, Mayor Arnold ruled he amendment out of order. The resolution was adopted on the following roll call vote: Ayes: Arnold, Beahre, Berwald, Clark, Dias, Gallagher, Norton, Wheatley Noes: Pearson MOTION: Mayor Arnold introduced the following resolution and moved, seconded;by Beaters, its adoption: Resolution No. 4288 entitled "Resolution Determining Unpaid Assessments and Providing for Issuance of Bonds, Miscellaneous Streets Improvement Project No. 67-3" The resolution was adopted unanimously by voice vote. Northern California Power Agency MOTION: Councilman Dias moved, seconded by Beahrs, that the Council approve the expenditure of $13, 169 as its cash assessment of the total Northern California Power Agency/HUD project. 31 8/4/69 Discussion followed and City Manager Morgan replied to questions concerning Palo Alto's role in the NCPA. The motion carried unanimously by voice vote. Diamond Anniversary Committee - Country Fair Councilman Dias, Chairman of the Diamond Anniversary Committee, reported that lack of sufficient time has caused the Diamond Anni- versary Committee to cancel plans for a Country Fair on October 4, 1969. Councilman Dias expressed the appreciation of the Committee for Council support of the event. Old Trace Road, et al, Project No. 64-4 MOTION: Councilman Gallagher introduced the foiiowiiig resolution and moved, seconded by Beahrs, its adoption: Resolution No. 4289 entitled "Resolution Determining Unpaid Assessments and Providing for Issuance of Bonds, Old Trace Rc :td, et al, Project No. 64-4" The resolution was adopted unanimously by voice vote. Foothills Gas S stem Project No. 68-82 MOTION: Councilman :Gallagher introduced the following resolution and moved, seconded by Beahrs, its adoption: Resolution No. 4290 entitled '`Resolution Determining Unpaid Assessments and Providing for Issuance of Bonds, Foothills Gas System Project No. 68-82" The resolution was adopted unanimously by voice vote. Financing of Utiiity Service Connection (CM R:283:9) i.�.�ri�r�����r�..�r��r�re��w�w�ei��w��sa ®ems MOTION: Councilman Norton introduced the following ordinance and moved, seconded by Beahrs, its approval for first reading: "Ordinance of the Council of the City of Palo Alto Amending Title 12 of 'the Palo Alto Municipal Code to Add Sections 12. 16. 091 to 12.16.097, inclusive, to Chapter 12. 16 Thereof, Relating to the Financing of the Conversion of Electrical Service Connections to Underground Locations" The ordinance was approved for first reading unanimously by voice vote. 32 8/4/69 Stop Intersection System (CMR:237:9) MOTION: Councilman Clark introduced the following resolution and moved, seconded by Dias, its adoption: Resolution No. 4291 entitled "Resolution, of the Council of the City of Palo Alto Atopting Citywide Stop Intersection System and Map and Rescinding Sections 3, 4 and 5 of Resolution No. 2971" CLARIFICATION: City Attorney Hildebrand advised that adoption of the proposed resolution contemplates approval of Exhibit B entitled "Proposed Modifications to Stop Intersection System", dated April 15, 1969 with staff to be authorized to change Exhibit A to reflect these rnodif^,cations, resulting in one composite traffic -nap. The resolution was adopted unanimously by voice vote. Administrative Chan es +- Municipal Code (CMR:284:9) MOTION: Councilman Beahrs u troduced the following ordinance and moved, seconded b Gallagher, its approval for first reading: "Ordinance of the Council of the City of Palo Alto Amending Cer- tain Sections of the Palo Alto Municipal Code to Reflect Admini- strative Changes in Various City Departments and Divisions" The ordinance was approved for first reading unanimously by voice vote. Reeort of Bids for Sale of Bonds - Pro'ect Nos. C7-3, 4-4 an 2 - ---- ----- --MO' ION: Councilman Beahrs introduced the following resolution and moved, seconded by Wheatley, its adoption with the bid to be awarded to Stone & Youngberg at an average interest rate of 6. 8821%: Resolution No. 422 entitled "Resolution Awarding Sale of Bonds, Miscellaneous Streets Improvement Project No. 67-3" Discussion followed and Bond Counsel Jones responded to question as to how it might be possible to permit the property owners to pay only a maximum of six percent interest on the bonds. See Page 48. AMENDMENT: Councilman Pearson moved, that the matter be con- tinued until an adjourned meeting at 7:30 p. m. tomorrow night (August 5, 1969) and that the bonds be renegotiated with the bidder so that the maximum interest rate would be six percent, contemplating that the City would make up the. balance. The amendment faii"d for lack of a second. 33 814/69 SUBSTITUTE MOTION: Councilman Berwald moved, seconded by Wheatley, to reject all buds and call for new bids at a maximum of six and one-half percent interest and leave the discount factor open with the understanding that the City will contribute to the project the sum necessary to make up the difference. The substitust;;,-motion fair: nn the following roll call vote: Ayes: Berwald, Pearson Noes: Arnold, Ueahrs, Clark, Dias, Gallagher, Norton, Wheatley The resolution was adopted on the following roll call vote: Ayes: Arnold, Beahrs, Clark, Rise, Gallagher, Norton Wheatley Noes: Berwald, Pearson MOTION: Councilrnan Dias introduced the following resolution and moved, seconded by Arnold, its adoption with the bid to be awarded to Stone & Youngberg at an average interest rate of 6. 8867%: Resolution No. 4293 entitled "Revolution Awarding Sale of Bonds, Old Trace Road, et a1, Project No. 64-4" The resolution was adopted unanimously by voice vote. MOTION:, Councilman Dias introduced the following resolution and removed, seconded by Gallagher, its adoption: Resolution No. 4294 entitled "'Resolution Authorizing Purchase of Bonds by City, Foothills Gas System Project No. 68.82E" City onager organ -advised that no bida had been received for the $19,068.78 Foothills Gas System Project No. 68-82, and it is rec- ommended that the City purchase the bonds at an interest rate of six and three-quarters percent as proposed in the resolution before the Council at this time. The resolution was adopted unanimously by voice vote. Cancellation of August 25, 1969 Council Meeti MOTION: Councilman Dias moved, seconded by Beahrs, to cancel the regularly scheduled Council meeting set for August 25, 1969. The motion carried unanimously by voice vote. 34 8/4/69 Comprehensive Trans.portation Planning ProLram - Final Reporta(CMR:289:9) MOTION: Councilman Dias moved, seconded by Beahrs, that staff be directed to arrange with the traffic consultant, DeLeuw, Cather & Company, to set up a study session for presentation of the Com- prehensive Transportation Planning Program - Final Report to a joint meeting of the City Council and the Planning Commission for August 25, 1969. CHANGE OF MOTION: At the suggestion of City Manager Morgan that he will have to consult with DeLeuw, Gather in order to deter- mine when their representative might be available for such a study session, Councilman Dias, with the consent of her second, withdrew the date of August 25, 1969 and asked that the City Manager report back on available dates at the next Council meeting (August 11, 1969). The motion carried unanimously by voice vote. Adjournment There being no further business, the Council adjourned 3t 10:27 p. rn. APPROVED: