HomeMy WebLinkAbout0177.094,
February 24, 1994
HONORABLE CITY COUNCIL
Palo Alto, california
ADOPTION OF CITY POLICIES REGARDING
puBLIC-PRIVATE PARTNERSHIPS AND FBB WAIVERS
Members of the Council:
REpoRT IN BRl EF
4
This report transmits a December 9. 1993 staff report
(CMR:598:93) that was reviewed by the Policy & Se~rices Committee
on February 1, 1994. The Committee recommended app~oval of the
ordinance attached to the December 9 staff report. Staff has
identified a correction to the ordinance and the corrected
ordinance is attached.
Ordinance Correction
The recorTlro_ended fee waiver pelicy attached to trle Decew.her S
staff report indicates (last bullet item on page 1 of the policy}
that. City Council waiyer of fees can be considered -for
construction of facilities to be owned. or controlled, and
operated by the City (e.g., Childrenis Theater).-The worda -and
operated-were not included in the ordinance considered by the
~olicy and Services Committee. A corrected crdinance is
attached.
. ,
':'-.
/
BECOHMENDATION
It ie recommended that the Council adopt the Public/Private
Partnership Policy attached to the December 9, 1993 staff report
and the ordinance amending Section 1.08.110 [Fees) attached to
this staff report:.
Respectfully submitted,
x;:i.N~K. S~.dA"
KENNETH R. SCHREIBER
Director of Planning and
Community Environment
Attachments: Ordinance
~Jl\\\~~r
BE..~ M. STRQJNI'
Assistant City Manager
Dece~r 9, 1993 Staff Report
C'MR:17i:.94
p:\cmr\feew&lvc.cmr
2/24/94
2
ORD INA..tieR NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING CHAPTER 1.08 [VIOLATIONS) 01' THE PALO
ALTO MUNICIPAL CODE TO PROVIDE AUTHORITY FOR
WAIVERS OF FEES UNDBR THE ~UNICIPAL FEE SCHEDULE
FOR CAPITAL PROJECTS WHICH BENEFIT THE CITY
The Council of the City of Palo Alto does ORDAIN as follows:
S,ECTION 1. Section 1.08.1..10 [Fees] of the Palo AltO'
Municipal Code is hereby amended to read as follows:
1.08.110 Pees for licence., p~t8$ servic9s$ eto.,
use of city facility or serviae.
(a} The city manager shall establish a schedule of fees
and rates fer all types of services ,p~rfonned by city
departments undel." ft4..e ~.h~r:'''~~'. control, excepc
utility rates and chargee, admissions, golf course fees
and nonresident library fees, to be set forth in a
document to be known as the -municipal fee schedule-.
Such document shall list all fees, rates and charges,
except utility rates and charges, charged and collected
by any department of the city and shall be available to
the public for examination by request.
(b) Any change in any fee established by the city
manager shall became effective upon commencement of the
thirty-first day following notice Bent to the council.
except fees established pursuant to aD emerge~cy
ordinance of the city council~ or fees changed by the
city council after such notice. If any fee is changed
by the city council by motion action~ in such case said
cbanged fee shall be effective on the next weekday
following such council action, or at Buch other time
specified by the council.
(e) ~t"':Caa<h~,in1lUbsec:t'cm'(dr:"ot 'i:i\iIi ~r i't!',~~ibO!" uillawful for any persooto u'se""~ <welt.y faciIity' 'or service without paying the
prescribed fee or charge therefor.
1
..fet-ifiQ Th-3 finance &68 IHt~lie weE}tS comnittee D".ay
rev1'ew any fee in the muLicipal fee schedule d\!ring the
annual budget review process.
SBCTION 2.
ordinance is Dot a
Environmental Quality
The City Council hereby finds
project for purposes of the
Act.
that this
California
SECTION 3. This ordinance shall become effective upon the
ccmnencement of the thirty-first day after the date of its passage.
INTRODUCED :
PASSRO:
AYES:
ROBS:
ABSENT:
ABSTENTIONS :
A'I"l'BST:
City Clerk
APPROVBD AS TO PORM:
Senior AaBt. City Attorney
2
APPROVED:
Mayor
City Manager
Director of Finance
Director of Planning and
Ccmmunit'l Bnvironment
Director of Public Works
Director of Community Servi~es
,
December 9, 1993
HONDRABLE CITY COUNCIL
Palo Alto, California
Adoption of City Policies Regaroing
p...!blic/Pri vate Part nershi as and Fee Wa i vers
Members of the Council:
Rf'iPQrt in Brief
This report responds to an April 5, 1992 COQncil aS$ignmenc to
staff to develop a policy regarding facilitation of publici
private partnerships and an ordinance w~iving fees fer certain
projects (Be~ attached 4/2/92 memorandum). A recommended policy
Statement and Fee Waiver Ordinance are attached. Work en this
assignment identified closely related issues involving City co
sponsorship of events and Police t'epartment fees for providing
assistance at private events. Development of proposed policies
regarding these later items is nearing completion and will be the
subject of a forthcoming staff r,eport. Staff recommends that
this report~ along with the forthcoming staff report on a
proposed Co-sponsorship Policy and Police Department fees, be
referred to the Policy and Services Committee for review in ea-rly
1994.
Policy to EncQurage and Facilitate Partner5~
The attached Public/Private Partnerships policy~ if adopted,
would establish a City Council policy to encourage the
development of public-private partnerships. In carrying O-LJt this
policy. the City would actively promote formation of partnerships
rather than the historic pattern of primarily waiting for private
or nonprofit organizations to develop proposals. C~ty promotion
of partnerships could railge from co-sponsorship of activities to
solicitation of ~roposals to facilitation of proposals through
the City review process. The City Manager has established a
staff Public/Private Partnership Co:r.mittee that 'Would facilitate
review and decisi~n making on both propcsals received from
outside the city organization and concepts identified by City
om,s9a,93
9
staff. Formation of the Committee is in response to the need to
'.,mderstand and facilit.ate int.eractior..s bet· .... een the pu.blic and
private sectors. One relevant work area is to eee that potential
partnerships receive a cocrdi~ated multi-department response ru~d
timely decision making.
The attached policy does not address cQ-sponsorship of activities
and Police Department fees. The complexity and irnpol"tance of co
sponsorship has resulted in staff undertaking work on a separat.e
Co-sponsorship Policy statement that, along with recommendations
on Police Department fees, will be for~arded to th~ Council in a
separate staff report.
Waiv~r of Clty Fees
The attached policy identifies an approach to waiyer of City fees
that is based partially on the Children's Theater expansion
project (see attached excerpt of May 28, 19.91 Council minutes) .
Any waiver of fees would need to be approved by the City Council.
The co~~cil would have authority to waive fees only for
constructiQn or capital projects which, upon completion, result
in a ~ew or improved putlic facility, building cr pa~k that would
be solely owned or controlled by the City+ For a project that
would result in a portion of the construction effort becoming a
City facility. the waiver of fees would apply only to the portion
of the project's fees applicable to the :uture City facility.
This fee waiver procedure is contained in the attached ordinance
am~,ding Section 1.06.110 [Fees] of the Municipal Code.
The recommended fee waiver procedure is narrowly drawn, out of
concern that a more flexible approach (e.g .• potentially waiving
fees for ·public services· or 'public facili~iesN} would open the
City to many fee waiver requests from nonprofit and for-profit
organiza~iQns providing what they perceive to be a public service
{e.g.~ recreational, medical or social service providers). This
approach forces Council to made decisions on a more subjective
basis and may have the pctential for conflict of in~erest due to
the n~~er of nonprofit agencies receiving direct and indirect
City assistance+
~nvironmental Review
Adoption of the attached policy and ordin~~ce amending the Fees
section of the ~~icipal Code is not a Project under the
California Er.vironmental ~~ality Act. ahd no environmen~al review
or finding is necessary.
Recommendation
Staff recommends that the City Council refer tr~e attached
Public/Private Partnership Policy and the attached ordinance
CMR, 598,93 12/9/93
Page 2
amending Section 1.OS.110 [Fees] of the Palo Alto Mu~icipal ~ode
to the policy and Services Ccmm.!ttee.
Respectfully submitted,
-j£;t.MY{· '1:7jd:~
KENNETH R. SCHREIBER ,9
Director of Pl~~ing and
Community Environment
~ ~~\ '
(\1J.1.iJ /"j lJ.N.~'jv
.... TuNE FI"EMIN'G
City Manager
I.:
~r),;-I () V./. ~L L<..L,;; . ./·
EMrLY HARRISON "'
Director of Finance"
Attachments: public/Privats Partnership Policy
Ordinance
April 2, 1992 Memorandum
Excerpt of the May 28, 1991 Council Minutes
12/9/93
page 3
... -.
PUJlLIC/Pf3,IVAIE PARTNIRSRIPS
POLl CY STATEMENT
It is the policy of 'the City of Palo Alto to encourage the
development. of public/private partnerships. A public/pri ..... ate
partnership is defined as cooperation between the pri\~ate sector
or nonprofit organizations and the City in providing 5~rvices,
facilities or other capital projects to the coml'l',Unity.
Fublic/priva~e partnErships may take different forms. Two of the
most common include:
• Cooperative partnerships; This approach assumes
cooperation between the public and private or nonprofit
sectors in order to achieve ~Jtually shared objectives.
Examples include construction of the expansion to the
Children's Theatre; the City's relationship with the
Senior Center and the Palo Alto Housing Corpc·ration;
aDd the Economic OUtlook Ccmmi t tee.
• Inducements: In this approach, the City structures
incentives that chang~ the market environment in which
the private sector operates in order to achieve social
goals. Examples include the PARTNERS program in the
Utilities Department; and the 250 University Avenue
development, in which increased s9~are footage and
relaxed height restrictions were exchanged by the City
for public parking and dedicated alley improvements.
CITY ROL£ IN PARTNERSHIP FORMATION
The City has historically acted primarily as a passive recipient
of proposals for public/private partnerships. It is the intent
of this policy, however, to promote the active participation of
the City in the formation of such partnerships. 'Active
participation' could include:
• Facili~ation of proposals through the City's regulatory
process (e.g. 250 University);
• Solicitation of proposals for public/private ventures
(e.g. Towf!r Well site, Chuck Thompson site);
• waiver of fees by the City Council for construction of
facilities to be owned. or ccntrolled~ and operated by
the City (e.g. Children's Theatre);
page 1.
-'
• Use of fa~il.ities/s\Jbsidizec rent (e. g. Cu.bberleyJ.
F"roposals for a public/private partner-ship opportunity are
normally =ec~ived by City staff from private sector or no~profit
organizations. They may also be referred by the City Council te
staff for revie .... · and recommendation.
An impcrtant component for facilitating public/private
partnerships ia the ability of the City to react q'...J.ickly and
comprehensively to a proposal. Also of importance for some
p~"oposals is the impact of City processing fees. The follo ..... ing
procedures establish a mechanism to obtain prompt and co:npI-e
hensive initial City re'ne\li of a p:r-oposal a:ld consideratior.. of
requests for wCiiving City fees.
Public/Privat.e Committee: A Public/PI-i vate Review Commi tt.ee
shall be appointed by t~e City Manager, with representation fro~
the Police, Fire~ Public Works, Community Senrices, Planning ar..d
Fl.nance Departments, as well as the City Attorney's Office. As
appropriate, staff frQm other departments who are involved in a
public/private proposal may also participate on the Committee.
The Committee shall be chaired by the City Manager or his/her
designee. The ~ommittee shall meet as required to review
public/pl."ivate proposals, but no less than quarterly. Pros and
cons of a propcsal will be identified and dis~ussed. A summary
of each private or non-profit sector proposal will be forwarded
to the City Council. accompanied by a recommendation from the
City Manager to the City Council on whether the City should
,participate. The aumrnary and recommendation to the City Council
will be prepared whether or not the City staff support the
proposal as a publIc/private partnership.
Fee Waiver: The Public/private Committee may recommend~ as part
of its review of a proposal~ that any normal City processing or
use fees under t.he MUa"licipal Fee Schedule, not including fees and
charges levied by City of Palo Alto utilities~ be ~aived as a
part of the Cityrs participation in appropriate public/private
partnerships. Waiver of fees shall be by the C~cy Council and
limited to those fees associated with a construction or capital
project which, upon its completion, results in a new or improv~d
public facility, building or park, or some portion thereof, that
will be solely owned or controlled by the City. !n the event
that only some portion of a c~nstruction or capital project will
result in a new or improved City facility, building or park, or
some portion thereof, then the City Council may only waive that
portion of any associated fees directly relating to the
construction, improvement or enhancp.ment of the City facility,
building or park~ If appropriate, the summary and recD~~endation
report to the City Council will include a recommendation on
waiving fees~ and the Council can approve or deny the waiver
recommended by staff.
page 2
ORDINANCE NO.
ORDINANC;;: OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING CHAPTER 1. OS (V!OLATIONS] OF THE r'AloO
ALTO MUNICIPAL CODP' TO PROVIDE AL"rHORITY FOR
WAIVERS OF FEES UNDER TdE Mt~ICIPAL FEE SCHEDULE
FOR CAPITAL PROJECTS WHICH BENEFIT THE CITY
The Council of the City of Palo Altc does ORDAIN as follows:
SECTION 1. Sectioo 1.08.110 (FeE'S] of the Palo Alto
M~nicipal Code is hereby amendsd to read as follows:
1 .. 06.110 Pees for licer;.ses .. permits, services, etc.;
use of city facility or service.
{a) The city manage:r shall establish a s.::::hedule of fees
and rates for all types, of s_eIVices "performed by city
departments under ~ tbe'_ ;:na.nage-~#'s: control, except
utility ra.tes and charges; ad.missidns", golf cou~se fees
and nonresident library fees, to be set forth in a
document to be known as the ·municipal fee scbedule".
Such document S~l list all fees, rates and charges I
except utility rates and charges, charged and collected
by any department of the city and shall be available to
the public for examination by request.
(b) Any change in a.ny fee established by the city
manager shall become effective upon cO'\'l1mencement of the
thirty-first day following notice sent to the council,
except fees established pursuant to an emergency
ordinance of the city council, or fees changed by the
city council af~er euch notice~ If any fee is Changed
by the city council by motion action, in such case said
changed fee sr..a.ll be effective cn the next 'Weekday
follQ1l{ing such council action, or at such ether time
specified by the council.
(c) txCoipt' >'as,o,rtWidedl:il"eubSect:i"i';',{dj 'jOf ,> >this ~i>il';it 'I."'fl'''hall~Unla\ifUl for any "eis;o to use""'arly""·city facility·'''''or'--' service without paying the
prescribed fee or charge therefor.
(d) _ NotwiHista.!idl.n~i,.suiiBecti.on""{c), of: 'this':G£!cf:t6n~ ,the
~_it-y :council may, :;Ii[l;, 'its '-'discretion,: ;"waive ,:9JlY '-of tbe
fees set forth "i.ti,:t:he municipal ,fee ,sch.ed!ll~ 'that, would
'app,ly, ,t:o ,'a-pri1.ra~~",~?ject·' :to,' ~ons,~ct:1 ': ~rove ,,'or
otherwi.se '-e:nhance .. :a _,new "or, :existfng 'pub~i,c::>.facility,
building -or park. A '·construction or ,,'-capital ",project
eligible .for such 'fee "Waiver tmlrst, result,in a new or
imprO'led public ,fa.cilit.y, building -or pa-::k., or 'some _~.~A.JJ)
portion thereof:, that will be solely 'owned or controlled .,..,.J or"""'-
by t.he city upon ,t!le project's completion.' in the event
that on~y sO(ne portion of a 'construction or capital
project will result in a new or improved city facility,
1
"
building or park, or some portion thereof~ then the city
council may only waive those portions of any associated
fees, on a pro rata basis, that directly relate ~o the
cOIlstruction, improvement or enhanceme.ct. of the cit.y
racility. building or park.
-I<i+-(e)
review
an.'"1ual
The finance aHe fHt191ie -we-~ corord ttee
any fee in the municipal fee schedule du:-ing
budget review proces~.
may
tne
.SECTION 2.
ordinance is not a
Environmental Quality
The City
project
Act.
Council hereby
for purposes of
finds
the
that this
California
SECTION J. This or,·:i.inance shall becorr,e ef!ecti ve upon the
commencement of the thirty-first day after the date oE its passage.
INTRODUCED:
PASSlID:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATI"EST:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
2
APFROVED:
Mayor
Ci ty l'I.anager
Director of Finance
Dire-ctor of Planning and
Coaununity Environment
Director of Public Works
Director of Coarnuni ty Se-rvices
.----.--.-~-----_i
DATE: April 2, i 991
Office (If (he Ci!j' Council
M [ M 0 RAN D U ~1
TO. Our Council Co !leagues
FROM: Council Member; McCown, Hub<r, and Cobb
SUBJECf: Public/PrIvate Partnerships and Fee \\;ai .... ers
."
Last year, the City COline;] approved a request from the Frienjs of the Children's Theatre
to waive certain City application/permit fees in (onnection wilh the Children's Theatre
expansiort ..concern was expressed by some Council Members: that poliCY guidelines needed
to be de\'eJo9~d so fholt we would not be fJced with ad hoc requests (and responses).
particulariy given the fact lh;'l! these type~ of ·public/pri .... a!e partnerships· are :something the
City wm want to encouri.lg~ in the future. Rece.,.t correspondence from ttJe Pato AltO
Recreation Foundation re Cubberley and previous correspondence from the Standing
Committee on the Arts (attached] illustrat-es the commun~ly's continued interest in tti1S
subject.
If publ..k/priva1e partnerships are to be a useful part of our City's future, we shQuld try to
avoid unnecessary inJpedimen:s. ;:0 peop!: getting involved, ·",'hether through their rime or
money or both. 1£ we can put in place a process tnaI facilitates these efforts, we mighi also
make them mcr~ like!y !o OCt'llr.
Senior maJ1.age:rnent staff has already begun [0 discuss how such public/prjv2t~ partnership~
CCin be encouraged and f;::cili!aled, and the City Attorney'S office has given thOl.:ght to how
fee waivers mis!ht be accommodated through ordjn:mce cn.anq,es. Accordingly, ~.e. lilirili move
that the Coun;n direct staff-to;'" ...
1. Draft policy guidehnes, to be impiemented in ordinance form as :appropriate.
to permit walver of City" perrnit/.applic<.Jtion re-es far projects whkh meet the
criteri.tl present in the Chrldrer.'sTheatre siw.nior.., i.e., pro\,j~ron of private
fU .... lds/services 10 mike capital Lmproyeme~ts to 3 City facility which wiH
continL!e to be own!!"d and operated ClS p'arl of City prograII1$; and
2. Report to the City Council regarding other approaches the City might take to
er.cour.Jge and fJcilirme community 'Oi1U~blltion. to and pflrricipation in
public-private p:.mnerships to mOlfnlain 3!1d improve: com.munity filcilities,
services and progr:lms.
Attachment
• Council Member Ren~el said based on the number of c~lls, it did not
seem to be a problem which req~ired a ban on alcohol at El Ca~ino
Park. She agreed with the saf~ty conce~ns raised ~ith respect to
the 5k&tQboar~ facility.
JlanO!! nTIWltA1Ill B r I!AJtD. AND SECONDER.
council Member McCown said staff had been instructed to prepare an
ordinance and return to Council. In the future when there was an
issue where research and analysis was required from staff to
evaluate whether to proceed in a certain direction, council should
direct staff to return with the staff report first and then it
Council believed an ordinance was appropriate direct them to
proceed. The amount ot time spent could have been avoided it the
policy intormation 'Was presented first rather than afte.r the
~r4inance process.
Fo action taken.
REPORTS OF OFF!CI!TS
9. Request of Friends
(OIR: 298: 91)
of Children's Theater (1304-01)
Susan Stevart~ 1550 Middlefield Road, Board Member of the Friends
of Children's Theater, clarified the Board was justified in asking
for a ~aiver of the fee because the project w~s different than any
other project the city had done in cooperation with a group. The
waiver was not being asked rOT on beha.l.f of the Friends because the
building t.."as not a building for the Friends or for use by the
Friends" but was a building :tor the City of Palo A,lto. It wa.s
differsnt than a project for the Gamble Garden. The City would be
given a major ~apital improvement which would be controlled by tt,e
city. The Friends would bave no interest in it. The value of the
addition was estimated between $500,000 to $650,000. Since the
project was worth over $500,000, financed with private funds, was
undertaken solely tor the benefit of the city, and would be under
the City's full control upon co~pletion, the fee assessed for the
project should be waived~ The Council should encourage their
efforts.
carl Gillespie, 4142 Amaranta Court, President of Friends of the
Childrents Theater, concurred with Ms. Stewart and was disappointed
in the staff report CCMR.:298:91). The City had been asked to waive
the fee.&-. The orqanization was past the balf-way point in the
amount ot money raised, and the Friends had tried to meet the
requirements of the City. To protect the citizens' interest, they
had obtained liability insurance and were willinq to work with the
City. Many of the volunteers did not have children. actively
involved in the Children's Theater. He urged the Council to
respond positively to the request that the city fees be waived for
a major gift to Palo Alto.
5/28/91 66-227
-------------...,..,
Patty Hoagland McEwen r 753 Garland Drive. ~ember on the Board of
Dir~etors of the Friends of the Children's Theater, had maintaineQ
interest and support of the ChildL'en's Theater for many years. The
program had expanded during that time, but the facili t.y was
:bur~tin9 at the seamS. The Friends had decided to build an
addition to the Children's Theater, which ~ould enable the staff
and the program to accommodate all the children. The ,Friends have
raised approximately $400,000. The approval process was started
becausoe as new grant applications 'Were sent out, it ..... ould be
important to have the City I S approval and .... ai ving of the fees
would show that support. They understood the difficult position
the City was in, but the support would be appreciated by hundreds
of people.
Laura Selznick f 3451 Waverley Street, President-elect of Friends of
the Children's Theater, said the City's fees connected vith the
approval of the plans affected the Children's Theater and would
elso affect the construction of CUbberley, which would be the only
similar policy that might come before the council. The council
could draft ill polley 'Which would be narrow enough to help the
projects the City wanted to heIr and support those partnerships
whiCh Would S4ve ~oney and enhanc~ facilities. The criterion for
the policy could be th-at the city would own the facility -when
completed, steffing and maintenance paid by the city, construction
would be under city guidelines and would cost over $1 million
collars which would be raised by the citizens, and the city WOuld
not pay the cost of construction or the management of co~~truction.
The City was the homeowner of the building and was paying t~ro for
the building. She urged the council not to :focus on the bottom
line.
council Member McCown queried the procedure followed for work being
done on a City buildinq.
City Man.aqer Bill Zaner said if there were charge.s between .funds,
the City did chC!l1;"ge~ In addition, all projects pa.id the usual
overhead charqes which amounted to charges ~etveen departments,
i.e., a project done in the P'.!blir:: Works Department carried a.n
overhead which included time spent by the City Attorney, City
Maneger, and Finance Department.
Council Member McCown queried the pri~r requests to waive fees.
Mr. Zaner said the staff supported the project. His recommenoation
¥as based on what might happen in the future and actions in the
past which had nothing to do with the project and vas a matter of
policy. There had been requests to waiv~ fees from almost every
aqency to whom money was given under Community Development Block
Grant (COBG) for ccnstruction projects which was not qiven. He
recently turned down the req~est from the Y.K.C.A. for reduction of
fees for their environmental i~pact report. Gamble Garden asked
for a waiver of fees on a fluml:ler of items Which 'Was not qiven.
When the storm Drain Utility was approved, there were a number of
organiza.tions who asked for relief which was not granted. The
5/28/91 66-228
skating rink provided an outstanding service t~ the community and
fe~s have not been waived. The waiver of fees was prohibited by
the ballot measure; and the Council has said in order to be fair to
e.veryone in the community, a waiver of tees would not be allowed.
The City had spent enormous amounts of time on the project, and the
City Attorney's office had spent ove.t' loa hOU1:S which 'Was a
substantial investment of city funds. The project was excellent
and valuable for the cQmmunity~ It was inappropriate, irrespective
o! who the group Dlight be, to adopt a policy and then make
distinctions between community groups and waive fees for some and
not for others.
Council MeJI1ber McCown queried the absence of authority in the Palo
Alto Municipal Code {PA.v£) for the guidelines to follow, and ~hat
would be involved if the council wanted to make an amendment.
City Attorney Ariel Calonne said the staff could com~ back vith an
app~opriation to pay the fees out of reserves~ The staff was aware
of the need to develop a ~echanism t~r what the Council has fro~
time to time characterized as public/private partnerships.
Council Member Cobb understood the raquest was unique 'With the
exception of CUbberley, since the difference vas the City would be
the owner and operator of the facility. Neither the City Manager
nor the City Attorney addresse~ that Epecific distinction~
)iI'..r. Zaner said the concern was the larger policy issue. The
Y.M.C.A. collected money trom the community, provided a service,
and assumed all the operational, maintenance, and capital CO$ts.
The City had no cost i::'. beer. The Children's The~ter 'Would be
owned by the city and maintenance and operation would be paid by
the City. There was not a significant distinction between the
project of the Friends of Children's Theater and the Y.M.C.A~
Service vas provided by both to the community and the community vas
willing to pay for it.
council Member Cobb queried whether it was possible to establish a
policy Which could state the City could waive approval fees in
situations where the City acquirea a substantial capital asset.
Mr. Zaner said the Council could set any policy it cbose. He
concurred with the city Attorney ana suggested a budget amendment
as the direction to follow so as not to create a waiver policy.
~x~ calonne vanted to avoid hidden subsidies for th~ project at the
expense of the other applicants wht:l \olould be paying the teas.
council Kamber Cobb queried if Council acted in the direction of
the budget amendment rather than the waiver approach, ~hether it
would still make sense to establish a policy for making trans-ters
so that qroups without a capital asset would not ~ encouraged to
ask for the same kind of exceptions.
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Mr. Zaner recommended the Council not adopt a policy. Staff vas
lookinq at the broad question of how to structure private/public
partnerships and ~ould return to Council with a set of polici~s and
part of tha policies would be fiscal policies. He ~ould discourage
preempting these policies. He suggested the one-time budget
amendment be made.
Mayor Sutor ius clarified there was a fee fer the initial plannin9
p=ocess and queried 'Whp.ther there vO'.lld be additional .fees. It was
i=portant to have an understar.ding of what a single action might
signal.
Mr. Zaner said there·would be additional fees.
HOTION: Council Member Kniss moved: seconded by Fazzino, to
appropriate th~ amount of S2,308 from the General Fund Reserves for
a o-ne-til:1e grant for the fee requirer:I for the initial review
process recognizing that the building will be owned by the City, on
City land, and under the City's operations.
council Kember Kniss believed there was e difference and
public/priva~e partnerships should be encouraged. The Children's
Theater was well established in the community in addition to being
a pUblic/private partnership~ The waiver of the fee 1II'ould be a
one-time opportunity and would not indicate it would be done in the
future..
council MRmber Andersen said the issue went beyond the money. The
group ~as doinq an extraordinary service for the community ~hich
would benefit the public ant! the City~ The project was unique and
wottle! likely be a precede.nt for the activities at the CUbberley
site. He support~d the motion. He was interested in the comments
by council Me=ber Cobb regarding the long-range issue of policies
which might need to be established for public/private partnerships.
Council Member Levy queried if there vas a City project, did the
ci ty pay the fee for the review process or did the City pay the
in~erdepartmental charges which were incurred.
Mr. Zaner said a fee was not paid from one departm~~t to another
except vhen the fee ~as cominq from the Utility O~partmentv there
was a charge~
council Member Levy clarified if the City was building the
facility, the City paid the expenses but not the fee.
~~ Zaner said that was correct.
Council Kember Levy supported the motion. The facility represented
full ownersnip and control by the City upon completion. The City
Manager's comments 1II'ould come back to council because many
worthwhile services in the City asked for a waiver of fees. The
concept of full ownership and control was important. The city had
spent millions or dollars en the Children's Theater. There 1II'ould
5/28/91 66-230
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be more ~ees, ana the Child~en's Tbeater woula come back to Council
and ask for a waiver of fees in the future. It ""~as not :his intent
to do that. He 'Would 'Wait unt.il public/private pat"tnership pial".
and policies were developed before granting any further .aivers.
Council Member Renzel said there ~ere clear distinctions between
the project and the other examples of o~ganizations and projects.
There had been a long process of city policy making before the
building pennit vas submit"t..ad. Other p:-cjects similar to the
Children's Thp..ater lIIould not be plentiful. Cubberley \rr'as a
possibility, but the extent of full ownership and control by the
city 'Was unknown. The proj ect had been through a number. of
app~oval processes. Future projects would be identified through
the needs identification stage be!ore the decision to waive the
fe.as ..
Vice Mayor Fazzino said the pr.oject 'Was qualitatively d.ifferent
from the other examples citea~ The facility ~as most ~~ique and
extraordinary, and one of the most remarkable fundraising efforts
in the city to provide a service to children.. The City owed it to
donors and tundraisers to valve the fees and do whatever possible
to move the project forward and make it become a reality. He
encouraged a policy be Crafted with respect to similar projects.
Council Member Woolley suqqested the addition to the motion of the
words -u.."lder the direct administration of the City upon comple
tion.-
IIAXll!l l\!Il) SECONDI':R AGREE!> '1'0 DlCORPORATI' INTO TIlE HOTIOIl TIlE
AnDXnO. OF nAND DIUei' ADKI:!lISTRJ.TrON UPON COMPLETION,." AnER
UNDER ~ crrr's OPERA~iONS.
Co~il Member McCown concurred with Council Member Woolley
regardinq the distinction between tl1e cxamples~ The City Hana.qer's
role was to point out that the council might not be able to
distinguish requests. She believed it ~ould be better to look at
it as a policy matter and decioe whether something dif~erent would
be done for ether projects rather than on an ad hoc basis. She did
not support the request~
Kr~ Zaner said the wild Life Rescue qroup would be coming before
council wi~~ a proposal to con5t~ct a ~~ilding for the city on
city land and the price would be higher than the amount requested
by the Fr iends.
council Member McCown said a policy might treat all situations in
the same ~ay as the Children's Theater, i.8.~ the city's contribu
tion to the projects would be equal to the valUe of the ~ee3 which
was not done on the Gamble Gardens. The ad hoc basis was the wrong
way to do it.
Mayor Sutorius said the people involved in Gamble Gard2Tjs and the
Rhona Willia~5' home ~ould be watching the process. The process
5/2Sln 66-231
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VBS on an ad hoc basis. He believed a policy should be set first~
Be would not support the motion.
Vice Mayor Fazzino believed there was a difference between the
Rhonda Williams~ house, which might be operated by another qroup,
because it was not a City service or directed by city administra
tors. The project was no different than a group coming forward
vith an offer to bl.!ild a new facility. The City voule! not be
directly responsible for the administration of Wild Life Rescue.
He supported the motion.
Council M~mber Renzel supported the motion because the city would
build the facility if the money was available.
Council Kember Cobb queried how soon the tee had to be paid and
whether the tee could be set aside until the policy questions were
dealt with. He would like to establish a policy aleng the lines
discussed with appropriate constraints and descriptions.
Kr~ Zaner urqed the Council not to postpone the decision. The
policy issue was im~?rtant but net a top priority at the time. If
the Council wanted to make the payment, he suggested not to hold it
up ~or tbe policy issue~ When the work :began on the CUbberley
project" there 'Would be time to work on the policy and then return
to council.
Council Kember Andersen said the appropriate timE to aeal with the
policy _ould be when staff returned to Council with recommendations
an the CUbberley publ':.:./pri-,·ate partnerships~
HtY.l"IOlI' ~ASSED 7-2, McCown, Sutorius "no."
~~SS! 10;00 P.M. TO 10:15 P.H.
10. Greer Park Skateboard Facilit.y (1321-13J (CKR!26S!91.)
Recreation Superintendent Anne Cribbs said staff had been working
with the skaters since February 1991~ She introduced Recreation
Supervi~or Dave Brees, who would be working with the skaters.durinq
the next several months.
Council Member Cobb queried the cost of full-time supervision for
the facility ..
Ms. Cribbs said the cost ~as $175 per day, Monday tr.rough Friday,
and $240 per day, Saturday and Sunaay_
Council Member cobb queried whether the equipment rental concession
would recapture some of the expenditures.
Ms. Cribbs &a.id a minimal aill.ount of the expenditures would be
recaptured.
5/28/91 £6-232
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