2001/07/10
ANAHEIM, CALIFORNIA - CITY COUNCIL MEETING
JULY 10, 2001
The City Council of the City of Anaheim met in adjourned regular session.
PRESENT: Mayor Pro Tem Shirley McCracken, Council Members Frank Feldhaus, and Lucille
Kring. Mayor Tom Daly and Council Member Tom Tait were detained in a previous meeting.
STAFF PRESENT: City Manager Jim Ruth, City Attorney Jack White, City Clerk Sheryll
Schroeder. Elisa Stipkovich
A copy of the agenda for the meeting of the Anaheim City Council was posted on July 6, 2001,
at the City Hall inside and outside bulletin boards.
Mayor Pro Tem McCracken called the regular meeting to order at 3:04 P.M. in the Council
Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard wherein applicants for
Board and Commission appointments introduced themselves to Council.
At approximately 3:30 P.M., Mayor Daly and Council Member Tait arrived at the Council
meeting.
AdditionslDeletions to Closed Session: None
Public Comments: None
Mayor Daly moved to recess to Closed Session seconded by Council Member McCracken.
Motion carried unanimously. The Council recessed to Closed Session at 4:01 P.M.
1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT
CODE SECTION 54957.6:
Agency designated representative: David Hill
Employee organization: Anaheim Firefighters Association.
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Section 54956.9 of the Government Code)
Name of case: Kord Group v. The Fieldstone Company, et aI.,
Orange County Superior Court Case No. 76-32-58.
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Section 54956.9 of the Government Code)
Name of case: South Coast Cab Co., et al. v. City of Anaheim. et aI., Orange County
Superior Court Case No. 80-03-59.
4. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Section 54956.8 of the
Government Code)
Property: Public rights-of-way traversing undeveloped property located south of Katella
Avenue and east of Harbor Boulevard concerning extension of Clementine south of
Katella Avenue and extension of Convention Way east of Harbor Boulevard.
Agency negotiators: James Ruth, Tom Wood
Negotiating parties: City of Anaheim and the Wait Disney Company.
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 2
Under negotiation: price and terms
5. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Section 54956.8 ofthe
Government Code)
Property: 320 South Beach Boulevard, Anaheim, California
Agency negotiator: Elisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency and Phillip Borsuk
Under negotiation: price and terms.
6. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Section 54956.8 of the
Government Code)
Property: 425 South Anaheim Boulevard, Anaheim, California
Agency negotiator: Elisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency OKS. T-shirts
Under negotiation: price and terms (tenant relocation).
7. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Section 54956.8 of the
Government Code)
Property: 1561 West Lincoln Avenue, Anaheim, California
Agency negotiator: Elisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency Splinter Investments, Inc.
Under negotiation: price and terms
8. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED
LITIGATION - Significant exposure to litigation pursuant to subdivision (b) of
Section 54956.9 of the Government Code: one potential case
Facts and circumstances: proposed award of taxicab franchises based upon several
proposals submitted to the City; litigation has been threatened by an existing taxicab
permit holder and certain proposers which may not be awarded franchises.
Mayor Daly called the regular Council Meeting of July 10, 2001 to order at 5:47 P.M. and
welcomed those in attendance.
INVOCATION:
David Koll, Anaheim Christian Reformed Church
FLAG SALUTE:
Council Member Tait
PROCLAMATIONS AND DECLARATIONS:
Recognizing the Anaheim Pony League Mustang Mets. Marla Hamblin presented the team
members and Coaches.
Declaration recognizing the Leukemia and Lymphoma Society.
Recognizing Penny Contos as Chairman of the Anaheim Chamber of Commerce.
ADDITIONS/DELETIONS TO THE AGENDA:
There were no additions or deletions to the agenda.
PUBLIC COMMENTS:
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 3
James Robert Reade, 100 W. Midway Dr., Space 124, spoke on concerns regarding the Police
Department.
Mayor Daly addressed Mr. Reade's concerns by stating there is no basis for his accusations.
Steven White, 856 N. Clementine, spoke on Item A46, representing H.O.M.E. expressed
concern over future actions and the availability of public input.
Melvin E. Miller, Westminster, spoke in support of Disney's third theme park.
Andrea Mannes, 1475 W. Wedgewood Dr., spoke in favor of the Planning Departments
process.
Josh Buchannan, 1450 S. Whitegate Road, spoke in favor of Item A49.
Joel Fick explained that the action the Planning Commission took regarding Item A49 merely
initiated the application process for the items noted. He explained that it set in motion the
upcoming public participation process, which would be extensive. He said he anticipated the
EIR to be complete in the next couple of months, dependent on Disney's schedule. He further
explained that upon completion of the draft EIR there would be a 45 day public review process,
responses would then be prepared for every comment that was raised. He added that following
the completion of the responses, there would be public hearings scheduled for the Planning
Commission and a second public hearing before the Council.
Council Member McCracken asked if this was the same process for major projects in the City.
and Mr. Fick responded that it was.
Council Member Tait said that this was not an approval for the project and Mr. Fick answered
that was correct.
MOTION: Mayor Daly moved to waive reading in full of all ordinances and resolutions,
seconded by Council Member McCracken. Motion carried unanimously.
Consent Calendar: Items A 1 - A47: On motion by Mayor Daly, seconded by Council Member
McCracken, the following items were approved in accordance with the reports, certifications and
recommendations furnished each Council Member and as listed on the Consent Calendar.
Council Member Tait voiced a no vote on Item A24.
A1.
Receive and file the minutes of the Anaheim Public Library Board meeting held May 3,
2001; minutes of the Public Utilities Board meeting held May 3, 2001; minutes of the
Anaheim Workforce Investment Board meeting held May 10, 2001; minutes of the Golf
Advisory Commission meeting held May 17, 2001; the Anaheim Police Department's
Crime and Clearance Analysis Report for May 2001; the Southern California Gas
Company's Notice to Customers of proposed rate increases (Application No. 01-06-027);
the Application of Southern California Gas Company regarding year seven (2000 -
2001) under its experimental gas cost incentive mechanism and related gas supply
matters; and the Monthly Financial Analysis Report presented by the Finance Director
for ten months ended April 30, 2001.
'IT
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 4
A2. Reject certain claims filed against the City.
A3. Award the contract to the lowest responsible bidder, Steiny & Co., Inc., in the amount of
$34,504.35 to coordinate the traffic signals on Brookhurst Street between La Palma
Avenue and the SR-91 Freeway and approve and authorize the Finance Director to
execute the Escrow Agreement pertaining to contract retentions.
A4. Award the contract to the lowest responsible bidder, CT&F, Inc., in the amount of
$50,275.03 to coordinate the traffic signals on Brookhurst Street between Katella
Avenue and Catalina Avenue and approve and authorize the Finance Director to
execute the Escrow Agreement pertaining to contract retentions.
A5. Approve Agency-State Agreement for the Federal Aid Projects No. 12-5055, Program
Supplement No. 087-M, for the Santa Ana Canyon Road Improvement Project from Weir
Canyon Road to 870 feet west of Festival Drive.
A6. Award the contract to Transportation Studies, Inc., in an amount not to exceed $70,000
for citywide intersection turning movement counts and on-call traffic count services.
A7. Waive City Council Policy No. 401 and approve an agreement with MuniFinancial for
$45,500 to conduct a feasibility study and formation of the Anaheim Resort
Transportation Assessment District.
A8. Approve Agency-State Agreement for the Federal Aid Projects No. 12-5055, Program
Supplement No. 089-M, for the Orangewood Avenue Street Improvement Project from
State College Boulevard to East City Limit.
A9. Approve and authorize the Mayor and City Clerk to execute the Acquisition Agreement
for 1380 South Harbor Boulevard (R/W 5130-2,3 and 5) for the Anaheim Resort Area
Improvement Project and authorize the acquisition payment of $142,296 to Northwest
Hotel Corp.
A 10. Approve an agreement with the Anaheim Transportation Network for $553,318 for the
Anaheim Resort Transit guest shuttle system and the La Palma Avenue Corridor
Employee Shuttle Program.
A 11. Approve an agreement with the Santa Barbara Electric Transportation Institute for
$49,880 to continue technical assistance services for the City and the Anaheim Resort
Transit Project.
A 12. Approve and authorize the Mayor and City Clerk to execute an agreement, not to exceed
a value of $400,000 with Willdan & Associates, URS Corporation, and RBF Consulting to
provide inspection services for capital improvement projects.
A 13. Authorize an amendment to the agreement with Turner Construction Company, in an
amount not to exceed $74,500, to provide for extended Project Representative Services
to complete construction of the Anaheim Convention Center Enhancement Project.
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ANAHEIM CITY COUNCIL MEETING MINUTES
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PAGE 5
A14. Approve and authorize the Mayor and City Clerk to execute the Acquisition Agreement
for the purchase of real property located at 1200 - 1208 South Euclid Street for the Ball
Road/Euclid Street Intersection Project (R/W 5400-08) and authorize the acquisition
payment of $42,500 to George Novogroder.
A15. RESOLUTION NO. 2001R-167 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving the receipt of a grant award from the California Energy
Commission.
A16. RESOLUTION NO. 2001R-168 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM to continue a disadvantaged business program for all projects
in the City of Anaheim receiving United States Department of Transportation funding and
establishing a disadvantaged business enterprise goal of ten percent for the federal
fiscal year ending September 30, 2002.
A17. RESOLUTION NO. 2001R-169 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the terms and conditions of an agreement with the
County of Orange for the purchase of tax-defaulted properties.
A18. RESOLUTION NO. 2001R-170 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (for public utility purposes).
A19. RESOLUTION NO. 2001R-171 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (City Deed Nos. 10416 and 10417).
A20. RESOLUTION NO. 2001 R-172 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways
and service easements (Abandonment No. ABA2001-00035) (and setting a date and
time to consider the abandonment of a certain irrevocable offer to dedicate to the City an
easement for public utility purposes).
Proposed Public Hearing on August 21, 2001.
A21. Accept the low bids of Waxie Sanitary Supply, in the amount of $46,562.60 (excluding
tax), Unisource Maintenance Supply, in the amount of $36,158.68 (excluding tax), and
Pak West Paper and Chemical, in the amount of $24,441.70 (excluding tax) for janitorial
supplies, as required from July 1, 2001 through June 30, 2002 with three one year
optional renewals and authorize the Purchasing Agent to exercise the renewal options in
accordance with Bid #6167.
A22. Accept the bids of Breezer Equipment and Supply, in the amount of $13,067.70
(excluding tax) and of i Water, in the amount of $11 ,457.51 (excluding tax) for concrete
breaking, breaching, drilling and coring tools and equipment, Fire Department, in
accordance with Bid #6175.
A23. Accept the bid and authorize the execution of an agreement with Sun-Belt Landscape
and Maintenance, Inc., in an amount not to exceed $965,448 for landscape maintenance
of the Anaheim Resort area for a two year period with three one year optional renewals
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ANAHEIM CITY COUNCIL MEETING MINUTES
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PAGE 6
and authorize the Purchasing Agent to execute the renewal options in accordance with
Bid #6177.
A24. Accept the low bid from Academy Tent & Canvas, Inc., in an amount not to exceed
$82,212 (plus applicable taxes) for the lease/rental of tent structures at Anaheim Hills
Golf Course for up to eighteen months, in accordance with Bid #6178.
A25. Accept the bid and authorize the execution of an agreement with TruGreen LandCare, in
an amount not to exceed $89,760.04 for landscape maintenance of the Library
properties for a two year period with three one year optional renewals and authorize the
Purchasing Agent to execute the renewal option in accordance with Bid #6185.
A26. Authorize the issuance of a change order to Kuhlman Electric to increase the amount of
the purchase order by $80,000, thereby bringing the total not to exceed amount of the
purchase order to $245,000 for the purchase of single phase padmount transformers, to
be used by the Utilities Department on an as-required basis for the period ending
November 8, 2001.
A27. Approve the Fiscal Year 2000/01 write-off of uncollectible miscellaneous accounts
receivable totaling $124,723.96.
A28. Waive Council Policy No. 306 and approve an agreement with ASM Enterprises, Inc. for
the operation of the food and beverage services at the Dad Miller Golf Course.
A29. Waive Council Policy No. 306 and approve an agreement with Robert D. Johns to
manage and operate golf professional services at the Dad Miller and Anaheim Hills Golf
Courses.
A30. Approve and authorize the City Librarian to execute an agreement with the Compaq
Computer Corporation for service on library computer equipment at a per month amount
of $4,254.24.
A31. RESOLUTION NO. 2001 R-173 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the destruction of certain city records more than
two years old (Community Services Department, Library Services Division).
A32. Approve and authorize the Mayor to execute the amendment to TANF Cost
Reimbursement Agreement No. A1 with the County of Orange to implement a summer
youth job training program for Anaheim resident youth through September 30, 2001 and
authorize the City Manager to execute the subrecipient agreements with Anaheim Union
High School District in the sum of $480,000 and North Orange County Regional
Occupational Program in the sum of $157,000.
A33. Approve the recommendations from the Anaheim Workforce Investment Board for the
selection of the training agencies for the delivery of occupational skills training to
participants under the Workforce Investment Act and Welfare-to-Work Programs through
June 30, 2002.
A34. RESOLUTION NO. 2001R-174 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the Workforce Investment Act Title I Master
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ANAHEIM CITY COUNCIL MEETING MINUTES
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PAGE 7
Subgrant Agreement between the City of Anaheim and the State of California for the
term of April 1, 2001 through June 30, 2003.
Authorize the City Manager to execute the Master Subgrant Agreement, modifications
thereto and related documents.
A35. Approve and authorize the City Manager to execute the agreements between the City
and North Orange County Occupational Program and Anaheim Union High School
District for $275,340 and $181,580, respectively, to implement a youth development
program for Anaheim resident youth under the Workforce Investment Act.
A36. Approve the Fiscal Year 2000/01 net write-off of uncollectible accounts for the Public
Utilities Department totaling $320,397 which represents 0.103 percent of the current
year's revenue of $311,073.793.
A37. RESOLUTION NO. 2001 R-175 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM agreeing to a redistribution of property taxes of Reorganization
No. RO 01-05, The Serrano/Nohl Ranch Road Reorganization.
A38. ORDINANCE NO. 5773 (INTRODUCTION) ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM amending Chapter 18.73 ofTitle 18 of the
Anaheim Municipal Code relating to Specific Plan No. 88-3 and amending Ordinance
No. 5045, as previously amended, accordingly (The Pacificenter Anaheim Specific Plan,
Adjustment No.1).
A39. Authorize the City Manager to execute agreements with ADT Security Services, Inc., to
alarm various police facilities in a total amount not to exceed $25,500.
MO. RESOLUTION NO. 2001R-176 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the Chief of Police, on behalf of the City of
Anaheim, to file an Electronic Grant Application with the United States Department of
Justice, Bureau of Justice Assistance, to participate in the Fiscal Year 2001 "State
Criminal Alien Assistance Program," and authorizing the Chief to execute all required
grant documents.
M1. RESOLUTION NO. 2001R-177 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM recognizing the Anaheim Resort and the Disneyland Resort as
"Special Resort Districts" and requesting Caltrans to install destination signs therefor.
M2. ORDINANCE NO. 5774 (INTRODUCTION) ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM amending various chapters, sections,
subsections and definitions of Title 1 of the Anaheim Municipal Code.
A43. Award the contract to the lowest responsible bidder, R.J. Noble Company, in the amount
of $175,324.84 for the Orangewood Avenue street improvements from State College
Boulevard to East City limit and approve and authorize the Finance Director to execute
the Escrow Agreement pertaining to contract retention.
M4. RESOLUTION NO. 2001R-178 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending Resolution No. 92R-17 adopting personnel rules
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 8
applicable to employees in management, confidential and non-represent part-time
classifications.
M5. RESOLUTION NO. 2001 R-179 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving a Letter of Understanding between the Anaheim
Police Association and the City of Anaheim.
A46. Deny the appeal filed by H.O.M.E. and allow the applications and the public review
process to proceed for General Plan Amendment No. 2001-00391, Amendment NO.6 to
Disneyland Resort Specific Plan No. 92-1, Amendment NO.4 to the Anaheim Resort
Specific Plan No. 92-2 and an amendment to the Anaheim Resort Public Realm
Landscape Program pertaining to the proposed Anaheim Resort Third Theme Park
Project.
A47. Approve the minutes of the Council meeting held on June 12, 2001.
A48. 5:00 P.M. Public HearinCls:
Continued public hearings on 2001-02 changes in fee schedules (Items E - 0).
Council Member Tait motioned for two-week continuance on Items G, 0 and P seconded by
Council Member Kring. Motion carried unanimously.
Council Member Feldhaus asked if there were concerns on F, J and L, adding that he would
like to defer those fees for one year as an enticement for developers.
Council Member Kring voiced a concern for Item J.
City Attorney White explained that the increase in fees was to cover the cost for services
rendered.
Greg Smith explained that he proposed to raise the parking fee at the Convention Center for
trade shows and conventions only, from $7.00 to $8.00, which would help fund the additional
costs incurred for utilizing the electric tram service.
Council Member Kring asked Mr. Smith if the Convention Center was being used for a smaller
convention and not utilizing the tram service would the parking fees remain the same.
Mr. Smith responded that the way the ordinance was written, the City would establish the higher
fee for all trade shows and conventions and that he anticipated using the tram for all events.
Council Member Kring asked Greg when the last parking fee increase had occurred.
Director Smith answered in 1998. He explained that if the fee increase was approved the
parking would still be less than at Edison Field and the Pond.
Mayor Daly moved to adopt Resolution Nos. 2001 R-180, 2001R-181, 2001 R-182, 2001 R-183,
2001R-184, 2001R-185, 2001R-186. 2001R-187, 2001R-188, 2001R-189. 2001R-190, 2001R-
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ANAHEIM CITY COUNCIL MEETING MINUTES
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PAGE 9
191 and 2001 R-192, and introduction of Ordinance No. 5775, seconded by Council Member
McCracken. Roll call vote: Ayes - 5. Motion carried.
E. RESOLUTION NO. 2001R-180 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM establishing and modifying fees for services and documents
provided by the Anaheim City Clerk's Office [Continued from Council meeting of June
19, 2001, Item A28(E)].
F. RESOLUTION NO. 2001R-181 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing fees to be charged for Community Services
Department Programs and Services commencing on September 1, 2001 [Continued
from Council meeting of June 19, 2001, Item A28(F)].
ORDINANCE NO. 5775 (INTRODUCTION) ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM amending Sections 17.08.250 and 17.08.260 of
Chapter 17.08 of Title 17 of the Anaheim Municipal Code relating to park development
and in-lieu fees.
G. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM establishing the amount of the park in-lieu fee and
rescinding Resolution No. 2000R-116 [Continued from Council meeting of June 19,
2001, Item A28(G)].
H. RESOLUTION NO. 2001R-182 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving and adopting the recommendation of the Library
Board of the Anaheim Public Library to establish, increase and/or decrease certain fines
and fees [Continued from Council meeting of June 19, 2001, Item A28(H)].
I. RESOLUTION NO. 2001 R-183 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adjusting the amount of the fee for the public library facilities
plan for the East Santa Ana Canyon area [Continued from Council meeting of June 19,
2001, Item A28(1)].
J. RESOLUTION NO. 2001 R-184 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing rates to be charged for licensing and for certain
labor, equipment and services at City parking lot events at Edison International Field of
Anaheim commencing July 1, 2001 [Continued from Council meeting of June 19, 2001,
Item A28(J)].
RESOLUTION NO. 2001 R-185 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing a schedule of rates to be charged for rental of
space and for certain labor, equipment and services at the Anaheim Convention Center
[Continued from Council meeting of June 19, 2001, Item A28(J)].
RESOLUTION NO. 2001 R-186 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing fees for parking at the Anaheim Convention
Center to be effective July 1, 2001 [Continued from Council meeting of June 19, 2001,
Item A28(J)].
K. RESOLUTION NO. 2001R-187 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM revising fees for the Underground Storage Tank Program and
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 10
establishing the effective date of fees [Continued from Council meeting of June 19,
2001, Item A28(K)].
RESOLUTION NO. 2001 R-188 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing fees and penalties in connection with the
regulation and enforcement of the Hazardous Materials Disclosure Program [Continued
from Council meeting of June 19, 2001, Item A28(K)].
L. RESOLUTION NO. 2001 R-189 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting new fee schedules for building and construction
[Continued from Council meeting of June 19, 2001, Item A28(L)].
RESOLUTION NO. 2001R-190 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting new fee schedules for planning, zoning and land use
petitions, permits, approvals, appeals, and inspections [Continued from Council meeting
of June 19, 2001, Item A28(L)].
M. RESOLUTION NO. 2001R-191 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing a fee to provide Police clearance letter for other
than employment purposes [Continued from Council meeting of June 19, 2001, Item
A28(M)].
N. RESOLUTION NO. 2001R-192 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending rates, rules and regulations for the sale and
distribution of electricity and water as adopted by Resolution Nos. 71-478 and 72-600
and most recently amended by Resolution Nos. 99R-142 and 2001R-85 [Continued from
Council meeting of June 19, 2001, Item A28(N)].
O. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM adopting new fee schedules for the Public Works
Department of the City [Continued from Council meeting of June 19, 2001, Item A28(O)].
P. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM adopting a new schedule of sanitation charges [Continued
from Council meeting of June 19, 2001, Item A28(P)].
Q. RESOLUTION NO. 2001R-193 RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting the policies established by the Anaheim Library
Board for the use of library community meeting rooms and the fees and charges
required pursuant thereto, amending Resolution No. 66R-286 and rescinding certain
other Resolutions [Continued from Council meeting of June 19, 2001, Item A28(Q).
A49. Application to operate fifteen billiard tables at 912 South Euclid Street.
John Poole, Code Enforcement Manager, presented the staff report, which is available in the
City Clerk's Office. He explained that the property was in a strip mall in a commercial area,
which was located near a high-density residential neighborhood. He explained that Code
Enforcement conducted a survey of the immediate area and the surrounding property owners
indicated that approval of the permit would add to the existing problems in the area, which
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ANAHEIM CITY COUNCIL MEETING MINUTES
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PAGE 11
would be detrimental to the neighborhood. He said he had received a letter of opposition from
the West Anaheim Neighborhood Development Council and that the Police Department had
recommended denial of the permit due to a 42% above average crime rate in the area. He also
stated that the proposed use would contribute to noise and loitering problems in the area. He
quoted the Police Department as saying that poolrooms of this nature attracted illegal gambling
and other related law enforcement problems.
Mayor Daly called for public comments.
David Kim, 303 Center St., introduced Ray Santillan as a spokesperson for Jason Kim.
Mr. Santillan, Panorama City, said he was a consultant for Mr. Kim and he asked what the time
limit was on an applicant replying to a letter received from the City. He explained that he had
recently spoken to Mr. Yourstone in Code Enforcement and was unaware that there were any
objections from the Police Department. He said his concern, from the time he received the
memo from Code Enforcement, was that his client did not have enough time to respond.
City Attorney White explained that this was not a formal notice of a public hearing. He said a
notice was mailed to Mr. Kim from the City Clerk's Office on June 12, 2001. This notice, he
said, was informing Mr. Kim that Council would be hearing his application on July 10, 2001.
Mr. Santillan said that he did not think the pool hall would be a problem. He also said there
would be no liquor allowed at the property.
Council Member Kring asked what type of business was currently being operated at the
address.
Mr. Santillan answered that Mr. Kim currently operated a clothing store and he just wanted a
change.
Council Member Kring inquired as to the future of the property if the application was denied.
Mr. Santillan stated that Mr. Kim would not have a choice if his application was denied, he
would have to continue the clothing store.
Mr. Poole explained that Mr. Yourstone explained to Mr. Kim and Mr. Santillan that this could be
problematic and staff would be conducting a survey in the neighborhood.
Council Member Tait asked the applicant if he would accept a one year limitation on the permit.
Mr. Santillan responded that would be fine.
Council Member Feldhaus asked staff how many pool halls, billiard parlors were currently
operating in the City.
John Poole said he did not have that number. He said the Police Department had informed him
that the City currently had one operating and others located in bowling alleys etc. He said once
a business opens a third pool table that constituted the pool hall permit.
Council Member McCracken asked Mr. Poole what other kinds of businesses are at the
location.
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ANAHEIM CITY COUNCIL MEETING MINUTES
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PAGE 12
Mr. Poole said there were eight businesses at the location, general merchandise stores.
Council Member Kring asked what the hours of business would be for the pool hall.
Mr. Poole said the applicant did not specify hours of operation and there was no requirement for
hours in the Code.
Mayor Daly moved to deny the request of the applicant. Seconded by Council Member
McCracken.
Council Member Tait said that the detriment to the neighborhood depended on the management
of the establishment. He said he would vote to give Mr. Kim a chance to succeed by giving Mr.
Kim a one year permit.
Mayor Daly noted, for the record, that he had received a strong letter of opposition from the
West Anaheim Neighborhood Association.
Roll call on the motion to deny the application to operate fifteen billiard tables at 912 S. Euclid
Street, incorporating the three findings: Ayes - 3; Mayor Daly, Council Members McCracken
and Feldhaus. Noes - 2; Council Members Tait and Kring. Motion carried.
A50. Nominate and appoint a voting delegate and alternate to the League of California Cities
annual conference, September 12, 2001 through September 15, 2001, to be held in
Sacramento.
Mayor Daly said he would de the delegate and Mayor Pro Tem McCracken would
alternate. Motion was carried unanimously.
A51. BOARD/COMMISSION APPOINTMENTS/REAPPOINTMENT TO
TERMS EXPIRING JUNE 30, 2005 (Continued from Council meeting of June 12,
2001, Item A22):
Mayor Daly stated that it was very helpful to hear from all the applicants earlier in the meeting.
Mayor Daly moved to reappointment everyone that had been currently serving, except for the
opening on the Planning Commission, Commissioner Napoles. Motion seconded by Council
Member McCracken.
Council Member said she would not support the automatic reappointment of persons who were
currently serving.
Council Member Feldhaus suggested that in the future the Council look at term limits for Boards
and Commissions.
Roll call on the motion to reappoint persons who had been currently serving except for Planning
Commissioner Napoles, who indicated that he did not wish to continue service: Ayes - 3;
Mayor Daly, Council Members McCracken and Feldhaus. Noes - 2; Council Members Tait and
Kring. Motion carried.
. "IT
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 13
BUDGET ADVISORY COMMISSION FOR NEW TERM EXPIRING
JUNE 30, 2005: (Price, Stoll)
Ralph Price and David Stoll were appointed for new four year terms, to expire June 30, 2005.
COMMUNITY SERVICES BOARD FOR NEW TERMS EXPIRING
JUNE 30, 2005: (Machiaverna, Wallace)
John Machiaverna and Esther Wallace were reappointed for new four year terms, to expire June
30, 2005.
REDEVELOPMENT AND HOUSING COMMISSION FOR NEW TERM
EXPIRING JUNE 30, 2005: (Pinson, Yvaska)
Mary Ruth Pinson and Donald Vyaska were reappointed for new four year terms, to expire June
30, 2005.
PLANNING COMMISSION FOR NEW TERM EXPIRING
JUNE 30, 2005: (Boydstun, Napoles)
Mayor Daly moved to reappoint Phyllis Boydstun to the Planning Commission, seconded by
Council Member Feldhaus. Roll call vote: Ayes - 4; Mayor Daly, Council Members McCracken,
Feldhaus, Tait. Noes - 1; Council Member Kring. Motion carried. Phyllis Boydstun was
reappointed to a new four year term, to expire June 30, 2005.
SENIOR CITIZENS COMMISSION FOR NEW TERMS EXPIRING
JUNE 30, 2005: (Costello, Koenig)
Ronald Costello and Beryl Koenig were reappointed to new four year terms, to expire June 30,
2005.
LIBRARY BOARD FOR NEW TERMS EXPIRING
JUNE 30, 2005: (Flora, Rothrock)
Glenda Lee Flora and Marjorie Rothrock were reappointed to new four year terms, which expire
June 30, 2005.
PUBLIC UTILITIES BOARD FOR NEW TERMS EXPIRING
JUNE 30, 2005: (Kirker, Stanton, Wiseman)
Tomas Kirker, Dale Stanton and L. Ward Wiseman were reappointed to new four year terms,
which will expire June 30, 2005.
Regarding the filling of the vacant Planning Commission seat, Robert Napoles seat, Council
Member Kring nominated Kevin Crampton, Council Member Feldhaus nominated Gail Eastman,
Council Member McCracken nominated Harry Sidhu, Mayor Daly nominated Mark Lopez and
Council Member Tait nominated Patrick Pepper.
"'<'-'''Ji
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 14
Separate votes were taken on the nominations:
Kevin Crampton: Ayes - 1; Council Member Kring. Noes - 3; Council Members Feldhaus,
McCracken, Tait. Abstention - 1; Mayor Daly.
Gail Eastman: Ayes - 3; Council Members Feldhaus, McCracken, Tail. Noes - 1; Council
Member Kring. Abstention - 1; Mayor Daly.
Harry Sidhu: Ayes - 3; Mayor Daly, Council Members McCracken and Tait. Noes - 1; Council
Member Kring. Abstention - 1; Council Member Feldhaus.
Mark Lopez: Ayes - 1; Mayor Daly. Noes - 2; Council Members Kring and Tait. Abstention-
2; Council Members McCracken and Feldhaus.
Patrick Pepper: Ayes - 2; Council Members Kring and Tait. Noes - 1; Mayor Daly. Abstention
- 2; Council Members Feldhaus and McCracken.
The two top candidates that received a tie vote, Gail Eastman and Harry Sidhu, were voted on
again.
Gail Eastman: Ayes - 2; Council Members Feldhaus and Tait. Noes - 1; Council Member
Kring. Abstention - 2; Mayor Daly and Council Member McCracken.
Harry Sidhu: Ayes - 2; Council Members McCracken and Tait. Noes - 1; Council Member
Kring. Abstention - 2; Mayor Daly and Council Member Feldhaus.
Mayor Daly changed his vote for Gail Eastman to a yes, which reflected the following roll call
vote: Ayes - 3; Mayor Daly, Council Members Feldhaus and Tait. Noes - 1; Council Member
Kring. Abstention - 1; Council Member McCracken. Council Members Kring and McCracken
changed their votes to ayes for Gail Eastman, making the appointment unanimous.
Items B1 throuqh B11 From Planninq Commission Meetinq of June 18, 2001: (No action
necessary unless Council desires to set a particular item for public hearing.) APPEAL PERIOD
ENDS JULY 10, 2001:
B1.
CONDITIONAL USE PERMIT NO. 2001-04327
WAIVER OF CODE REQUIREMENT
AND NEGATIVE DECLARATION:
OWNER: The Eparchy of Our Lady of Lebanon
333 South San Vicente Boulevard, Los Angeles, CA 90048
AGENT: St. John Maron Catholic Church, Attn: Reverend Antonie Bakh, 1546 East La
Palma Avenue, Anaheim, CA 92805
LOCATION: 1546 East La Palma Avenue. Property is approximately 1.29 acres
located on the south side of La Palma Avenue, 140 feet east of the centerline of Anna
Drive (Saint John Maron Catholic Church).
To construct an addition to an existing church with waiver of (a) minimum number of, (b)
maximum structural height, (c) minimum front yard setback and (d) minimum rear yard
setback.
'""TT
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 15
ACTION TAKEN BY THE PLANNING COMMISSION:
Conditional Use Permit No. 2001-04327 granted (PC2001-74). (6 yes votes,
Commissioner Bristol absent).
Waiver of Code Requirement approved.
Negative Declaration previously approved.
B2. CONDITIONAL USE PERMIT NO. 931
WAIVER OF CODE REQUIREMENT
CATEGORICALLY EXEMPT - CLASS 1
OWNER: Arnel and Marie Melody Reyes
2270 Ashbourne Drive, San Marino, CA 91108
LOCATION: 1652 West Broadway. Property is approximately 0.42 acres with a
frontage of 90 feet on the south side of Broadway located 815 feet east of the centerline
of Euclid Street (Amaryllis Court).
To modify operational conditions for an existing rest home for the elderly to permit board
and care for disabled adults ages 18 to 59, and to increase the number of clients to 66
persons with waiver of minimum number of parking spaces.
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved modification to Conditional Use Permit No. 931 for two years to expire on June
18,2003 (PC2001-77) (6 yes votes, Commissioner Bristol absent).
Waiver of Code Requirement approved.
B3. CONDITIONAL USE PERMIT NO. 2001-04376
AND CATEGORICALLY EXEMPT - CLASS 14
OWNER: David R. Jackson, 7975 Weirick Road, Corona, CA 92883
AGENT: Daniel W. Jackson, 1575 West Mable Street
Anaheim, CA 92802
LOCATION: 2220 - 2240 West Seauoia Avenue. Property is approximately 5.6 acres
with a frontage of 895 feet on the south and west sides of Sequoia Avenue located 180
feet east of the centerline of Siesta Street (Fairmont Private School).
To permit two temporary modular classrooms for a previously approved private school.
ACTION TAKEN BY THE PLANNING COMMISSION:
Conditionai Use Permit No. 2001-04376 withdrawn (6 yes votes, Commissioner Bristol
absent).
B4. CONDITIONAL USE PERMIT NO. 2001-04373
WAIVER OF CODE REQUIREMENT
CATEGORICALLY EXEMPT - CLASS 11
OWNER: Maris E. Vanags, 1510 North State College Boulevard, Anaheim, CA 92806
AGENT: Patricia Pereyra, 555 North State College Boulevard, Suite #100, Anaheim,
CA 92806
LOCATION: 555 North State Colleae Boulevard. Property is approximately 0.89
acres located at the southwest corner of La Palma Avenue and State College Boulevard.
To permit a mobile magnetic resonance imaging (MRI) unit and generator to be located
in the parking lot of a medical office building with waiver of minimum number of parking
spaces.
ACTION TAKEN BY THE PLANNING COMMISSION:
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 16
Conditional Use Permit granted, in part, for two years to expire on June 18, 2003
(PC2001-78) (6 yes votes, Commissioner Bristol absent).
Waiver of Code Requirement approved.
B5. CONDITIONAL USE PERMIT NO. 4027
CATEGORICALLY EXEMPT - CLASS 1
OWNER: J.D. Gantes Airport Properties, P.O. Box 80340
Rancho Santa Margarita, CA 92668
AGENT: C & R Development, Attn: Rodney Bickle
4298 Yukon Avenue, Simi Valley, CA 93063
LOCATION: 8295 East Santa Ana Canvon Road. Property is approximately 2.33
acres located at the northwest corner of Santa Ana Canyon Road and Weir Canyon
Road (Burger King).
To permit roof-mounted mechanical equipment on top of an existing fast food restaurant.
ACTION TAKEN BY THE PLANNING COMMISSION:
Denied Conditional Use Permit No. 4027 (PC2001-79) (6 yes votes, Commissioner
Bristol absent).
B6. CONDITIONAL USE PERMIT NO. 3860
AND NEGATIVE DECLARATION:
OWNER: Scenic Corridor Industrial Park, ACA General Partnership, 2900-A Bristol
Street, Suite #201, Costa Mesa, CA 92626
AGENT: WFI, Attn: Shannon McDonald
15901 Hawthorne Boulevard, Suite #306, Lawndale, CA 90260
LOCATION: 5620 East La Palma Avenue. Property is approximately 8.78 acres with
a frontage of 520 feet on the south side of La Palma Avenue located 585 feet west of the
centerline of Imperial Highway.
To permit reinstatement of this permit and to delete a condition of approval pertaining to
a time limitation (approved on August 19, 1996 to expire August 19, 2001), to retain a
previously approved telecommunication monopole antenna and accessory ground-
mounted equipment.
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved reinstatement to Conditional Use Permit No. 3860 for five years to expire on
June 18, 2006 (PC2001-80) (5 yes votes, Commissioner Bristol absent, Commissioner
Koos declared a conflict of interest).
Negative Declaration previously approved.
B7. CONDITIONAL USE PERMIT NO. 4140
AND NEGATIVE DECLARATION:
OWNER: John Sewan and Helen H. Kim
2233 Via Puerta, Apartment G, Laguna Hills, CA 92653
AGENT: Reverend Young J. Ko
3321 West Lincoln Avenue, Anaheim, CA 92801
LOCATION: 3321 West Lincoln Avenue. Property is approximately 0.84-acres with a
frontage of 122 feet on the north side of Lincoln Avenue, located 1,118 feet west of the
centerline of Western Avenue (Western Young Nak Church).
Request for reinstatement of this permit by modification or deletion of a condition of
approval pertaining to a time limitation (approved on July 19, 1999 to expire on June 19,
2001), to retain a church within an existing office building.
.""......' .o,_,'_""w',
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 17
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved reinstatement to Conditional Use Permit No. 4140 with deletion of time
limitation (PC2001-81) (6 yes votes, Commissioner Bristol absent).
Negative Declaration previously approved.
Mayor Daly asked if staff was comfortable with deleting the time condition on Item B7 and Mr.
Hastings, Planning Department, responded that they were, that this particular church use was
hidden behind a gate and was considered unmarketable in its present condition.
B8. CONDITIONAL USE PERMIT NO. 2001-04372
CATEGORICALLY EXEMPT - CLASS 11
OWNER: Vineyard Christian Fellowship
5340 East La Palma Avenue, Anaheim, CA 92807
AGENT: Craig A. Pahl, 5340 East La Palma Avenue
Anaheim, CA 92807
LOCATION: 5300 - 5340 East La Palma Avenue. Property is approximately 23.1
acres with a frontage of 1,187 feet on the south side of La Palma Avenue located 2,370
feet west of the centerline of Imperial Highway (Vineyard Christian Fellowship).
To construct two marquee signs.
ACTION TAKEN BY THE PLANNING COMMISSION:
Conditional Use Permit No. 2001-04372 granted, subject to conditions of approval
(PC2001-82) (6 yes votes, Commissioner Bristol absent).
Council Member McCracken Council Member McCracken said she was concerned about the
setting a precedent, indicating that the City had denied this signage for car dealers, shopping
centers and had not allowed it for other churches in the Canyon. She said she was concerned
with the size and type of signage. She requested a hearing be set.
Mayor Daly questioned the number of pole signs and he asked staff if they were going to
recommend similar signs up and down La Palma and Mr. Hastings responded that there were
only certain uses allowed to request marquees under conditional use permit, which included
churches, schools, amusement facilities and community service organizations and auto
dealerships, all by conditional use permits subject to Planning and Council approval. Mayor
Daly said he would support Council Member McCracken's request for a hearing.
Mayor Daly asked if it was consistent with the specific plan for the Anaheim Canyon Business
Center.
Staff said this was a citywide requirement for churches and schools and it was consistent.
Mayor Daly reaffirmed his support to set the item for a hearing.
REPORTS AND RECOMMENDATIONS:
B9. CONDITIONAL USE PERMIT NO. 4084 - REQUEST FOR RETROACTIVE
EXTENSION OF TIME
AND NEGATIVE DECLARATION:
Farano and Kieviet Lawyers, Attn: Jeffrey Farano, 2300 East Katella Avenue, Anaheim,
CA 92806, requests a retroactive extension of time to comply with conditions of approval
(originally approved on January 4, 1999 with an extension to expire January 4, 2001) for
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 18
a previously-approved outdoor recreational vehicle and boat self-storage facility with an
on-site manager's office/living unit. Property is located at 1631 South Euclid Street,
Southern California Edison Easement.
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved Conditional Use Permit No. 4084 for retroactive extension of time for one year
to expire on January 4, 2002 (6 yes votes, Commissioner Bristol absent).
Negative Declaration previously approved.
Mayor Daly asked staff if they were comfortable with the decision.
Mr. Hastings said staff recommend a closer look at the item because it was in the West
Anaheim Redevelopment Area and Planning Commission felt that since there was no exact plan
for the property from a redevelopment point of view, they would allow this final time extension,
they were allowed two and this was the second one.
Mayor Daly asked that since the item was a report and recommendation item and if he
disagreed with the Planning Commission decision, what process would be followed.
City Attorney White said the Council had the right to call up any item on a decision made by the
Planning Commission, that it would not be a public hearing because it was a report and
recommendation, but that it could be scheduled for a future agenda for discussion.
Mayor Daly requested Item B9 be set for discussion on July 24, 2001. Council Member
McCracken seconded motion.
Council Member Feldhaus stated that in six months their extension would be up and he asked if
original entitlements were passed for it.
Mr. Hastings answered that was correct.
Council Member Feldhaus asked if there had been any activity to change or alter them, to which
Mr. Hastings responded no.
Council Member McCracken asked who owned the property and Mr. Hastings answered that
the land was owned by Edison but he did not know if a lease had been entered into.
Council Member McCracken said she recalled that Council had a hearing on the item a couple
of years ago and he said that this was just a time extension.
Mayor Daly said there had been a lot of consideration regarding preserving these easements
and that he did not see enough of a strategy or plan to implement that vision and was troubled
by the statement that redevelopment had no particular vision for the property.
The item was scheduled for discussion on the July 24, 2001 agenda.
B10.
CONDITIONAL USE PERMIT NO. 2000-04201 - RETROACTIVE EXTENSION OF
TIME AND NEGATIVE DECLARATION:
Barry Jacob, 2355 Main Street, Irvine, CA 92614, requests a retroactive extension of
time to comply with conditions of approval (originally approved May 8, 2000 to expire
"..--.
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 19
May 8, 2001) for a previously-approved expansion of an existing car wash facility with an
oil/lube service facility and shade canopy with waivers of (a) permitted freestanding sign,
(b) maximum number of wall signs and (c) required setback adjacent to an arterial
highway. Property is located at 8290 East Crystal Drive (Checkered Flag Carwash).
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved Conditional Use Permit for retroactive extension of time for one year to expire
on May 8, 2002 (6 yes votes, Commissioner Bristol absent).
Negative Declaration previously approved.
B 11. CONDITIONAL USE PERMIT NO. 3935 - REVIEW AND APPROVAL OF FINAL SIGN
PLANS AND NEGATIVE DECLARATION:
Bhikhu Patel, 24351 ReDe Gauguin, Laguna Niguel, CA 92677, requests review of final
sign plans for a previously-approved restaurant banquet facility with on-premises sale
and consumption of alcoholic beverages, with waiver of minimum number of parking
spaces. Property is located at 1125 North Magnolia Avenue.
ACTION TAKEN BY THE PLANNING COMMISSION:
Conditional Use Permit No. 3935 approved, in part, final signage plans subject to
modifications (6 yes votes, commissioner Bristoi absent).
Negative Declaration previously approved.
6:00 P.M. Public Hearinas:
Mayor Daly asked that Public Hearings C2 and C3 be taken out of order.
C2. To consider the abandonment of two electrical utility easements located north of
Lakeview Avenue and northwest of Peralta Hills Drive.
At their meeting held June 5, 2001, the Anaheim City Council adopted Resolution No. 2001 R-
122 declaring its intention to vacate certain public streets, highways and service easements and
setting a date and time to consider the abandonment of two electrical utility easements located
generally north of Lakeview Avenue and northwest of Peralta Hills Drive (Abandonment No.
ABA2001-00033).
REQUESTED BY: Brian Kerr, 34 Balboa Coves, Newport Beach, CA 92663.
Natalie Meeks, Public Works, reported that staff was recommending abandonment of the two
electrical easements. She said the property had a tentative track map approved for
redevelopment of the property and these new easements for electrical service would be
dedicated on that track map.
Mayor Daly opened the public hearing and hearing no testimony, he closed the public hearing.
Mayor Daly moved, seconded by Council Member McCracken, to approved the CEQA
environmental find of Categorically Exempt, Class 5. Motion carried unanimously.
Mayor Daly offered Resolution No. 2001 R-194 for adoption.
. ..,,,.'
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 20
RESOLUTION NO. 2001 R-194 . A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM VACATING CERTAIN PUBLIC STREETS, HIGHWAYS AND SERVICE
EASEMENTS (ABANDONMENT NO. 2001-00033).
Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and
Kring. Noes - O. Motion carried.
C3. To consider the abandonment of various utility easements and facilities located within
Tract No. 11830.
At their meeting held June 5, 2001, Item A 17, the Anaheim City Council adopted Resolution No.
2001 R-123 declaring its intention to vacate certain public utility easements and setting a date
and time to consider the abandonment of various public utility easements and facilities located
within Tract No. 11830 near the northeast corner of Lincoln Avenue and Beach Boulevard
(Abandonment No. 96-6A).
REQUESTED BY: Anaheim Redevelopment Agency, on behalf of Lincoln Beach Associates,
LLC, 14011 Ventura Boulevard, Suite 404, Sherman Oaks, CA 91423
Sheryll Schroeder, City Clerk announced that Staff had requested a continuance on this item to
August 7, 2001.
Council unanimously approved staff's request for a continuance to August 7, 2001.
C1. CONTINUED PUBLIC HEARINGS: To consider the grant of up to three non-exclusive
franchises for the purpose of operating taxicab services in the City pursuant to City Charter
Section 1401 and Anaheim Municipal Code Chapter 4.73.
Mayor Daly requested a brief staff report to focus on any recent details or developments.
City Attorney, Jack White, stated that since the pubic hearing was opened at the June 12, 2001
Council meeting, additional information in the form of documents had been received and was to
be added as exhibits to the record of the four hearings. He said that previously there were 28
exhibits that were marked and an exhibit list was made available at the last meeting. He said
that there were an additional eight items and he read them for the record.
Exhibit 29 was voluntary petition of American Livery Inc., filed in U.S. Bankruptcy Court.
Exhibit 30 was a letter from Callahan and Blaine to Dave Nunley, dated June 11, 2001, entitled
A White and Yellow Cab Inc. vs. Proshield Inc., with attachments.
Exhibit 31was a letter from Farano and Kieviet dated June 22, 2001, entitled "New Information
on American Livery, Inc.", with attachments.
Exhibit 32 was a letter from Farano and Kieviet dated June 22, 2001, entitled "Taxi Franchise
RFP Requirement of Audited Financial Statement".
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 21
Exhibit 33 was a letter from Farano and Kieviet dated July 5, 2001, entitled "Protest to
recommendation of Taxi Franchise to A White and Yellow Cab, Inc., dba A Taxi Co".
Exhibit 34 was a letter from Farano and Kieviet dated July 5, 2001, entitled "Protest to
recommendation of Taxi Franchise to American Livery".
Exhibit 35 was a letter from Farano and Kieviet dated July 5, 2001, entitled "Support for
recommendation of Taxi Franchise to California Yellow Cab".
Exhibit 36 was a letter from Rick Schorling, President of American Livery, Inc., dated July 6,
2001, entitled "Taxicab Franchise Hearing, Ongoing Misstatements", Mr. Farano on behalf of
California Yellow Cab.
City Attorney White stated that the 36 items were deemed exhibits and in the record for each of
the four hearings. He said, as indicated previously, the Council had four applications before
them to award a maximum of up to three taxi franchises for 230 taxi cabs to operate in the City,
pursuant to franchise. As he had indicated at the last meeting, City Attorney White said that he
recommended that these be done sequentially, starting in the order that they were listed on the
agenda, opening each hearing, hearing from the applicant, hearing from anyone else in favor of
that particular franchise, then hearing from anyone in opposition or having an objection, or as
the Charter stated, protesting the award of the franchise and finally, giving the applicant an
opportunity to rebut and sum up and then close the hearing and proceed sequentially with all
four of the hearings, after which it would then be in the hands of Council to make a
determination with regard to the applications.
Mayor Daly asked for the staff report, which was presented by Code Enforcement Manager,
John Poole.
Mr. Poole said that the only thing he would add was that as Code Enforcement received
correspondence from each of the applicants, the information was faxed and sent to all of the
applicants so everyone would get the information as quickly as Code Enforcement had received
it. Code Enforcement would get it out the same day, he said, and he hoped that they had all the
information. If someone needed information that they did not get that was referenced, Mr. Poole
said he had copies available.
Mayor Daly asked if there were any questions of the staff before the publiC hearings were
opened. Since there were no questions, Mayor Daly said that they would go to the first of the
four hearings, on the application of Yellow Cab Company of Northern Orange County.
(A) Public hearing on application of Yellow Cab Company of Northern Orange County for a
non-exclusive franchise for the operation of 130 taxicabs and temporary permits for up to 30
additional taxicabs pursuant to the terms and conditions set forth in the applicant's proposal
(Continued from Council Meetings of April 17, 2001. Item A48 and June 12. 2001, Item C1).
Larry Slagle, representing Yellow Cab of North Orange County, 1619 East Lincoln Avenue, had
a report that he read to Council and said that he understood that everybody had access to the
report and he would like to present a somewhat short and sweet presentation of what Yellow
Cabs' attributes were and where they were at now. He said, as you know, State law required
that cities regulate taxi cabs because they were considered an essential public transportation
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 22
system operating many times where there was no public transportation available. Generally, he
said, those people who need that transportation, were transit dependent, unemployed seniors
and could be visitors. He said that he had worked with staff and attended work sessions to go
through the process of the franchise and he believed that Yellow Cab could accommodate the
request of the City either in the permit process or the franchise process and Yellow Cab was
present and wanted to speak to their proposal. Mr. Slagle said that Yellow Cab had been in
business in the City since 1945 and it was operated by his family exclusively for that period of
time. Currently, he said, his family had over 100 years of experience and came to work
everyday; daily operated that system, participated in the community to get feedback and
participated in the industry. He said that he has been President of the California Taxicab
Association, International Taxicab Association, President of the Chamber, Visitor and
Convention Bureau, YMCA and various organizations where Yellow Cab would participate in
community activities and be represented to the City as an operator or a public transportation
system, fully taking the responsibility for the service given to the residents.
Mr. Slagle said that Yellow Cab went through the process and submitted a fairly intense
proposal and worked with the consultant who dealt with many of the Yellow Cab records
because they had a computerized dispatch system and that was one of the requirements. He
said that as a matter of fact, Yellow Cab had the first system that was fully computerized in the
United States. He said that Yellow Cab had been fairly aggressive in providing innovative
services beginning with special checker automobiles, water bumpers and they had the first 100
percent compressed natural gas system in the United States in 1982. He explained that they
put that in checkers; discontinued that when they discontinued service and went to propane
system. Various numbers of Yellow Cab's automobiles had been outfitted with propane,
installed the teller track system at one point in time, he said, and a vehicle locator service, which
was not integrated with the vehicle dispatch system and Yellow Cab was in the process of
working on that integration with the Gandoff GMSI System. He said that Council had probably
seen the evaluation of the ratings, the summary, the whole proposals. Yellow Cab had been
working with staff in the hearings and had eliminated over 50 top signs on their existing cars at a
substantial financial burden to Yellow Cab, he said. They now had in excess of fifteen luxury
cars in their fleet and had added an additional, or replaced an additional 32 cars this year, he
noted. He believed that Yellow Cab was well on their way to conforming and if Council referred
to the chart, out of 100 points, he said, Yellow Cab scored 93 and they were proud of that score.
The next closest provider, he stated, was at 77 points. He believed that there was a significant
indication that staff and the consultant had recognized that Yellow Cab had spent a lot of time
and money, un-reimbursed money in some cases, to provide quality service. There was an
excess of 30 million guests per year that came to the City in addition to the residents and they
had very few, if any, complaints regarding transportation services. Yellow Cab provided
services 24-hours per day, he said and that money was made in the day time and was lost at
night and money was made on long trips and lost on short trips. He said that the volume that
Yellow Cab has had, and the program that had been implemented, provided that service 24-
hours per day at some significant expense. Yellow Cab had endeavored to keep their cost
down, technology up, personal attention high to maintain that level of service, he said, and
again, came up with the 93 score. Yellow Cab was committed, whether it was a permit or a
franchise system, to provide the best quality service they could, he expressed.
Mayor Daly asked if there were persons who would like to speak in support of the Yellow Cab
application and there were none.
-....,.,..
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 23
Mayor Daly asked if there were persons who would like to speak in opposition of the Yellow Cab
application.
Mary Ann Cazzell, representative of South Coast Cab Company, 2230 West Chapman Avenue,
Suite 200, Orange said she opposed and objected to the franchise procedure and added that
there was a problem with the franchise. She said that in March, the California Supreme Court
effectively approved the 117 permits granted to South Coast Cab. She said the City, four
months later, with no mention even in the preliminary comments about what was going to
happen with South Coast Cabs permits. She said that as she understood it from the staff
recommendation in the proposals, there had been lip service paid to honoring the California
Court's ruling by saying that South Coast Cab could have its 117 permits for one year and then
phase down to 30 permits after one year was over. She said that there was a real problem with
that. She said South Coast Cab now had 58 permits in the City even with what came out in the
Anaheim Bulletin on July 5, 2001. She said that they had South Coast Cab drivers threatening
to not renew their leases because this was a rumor mill of an industry and they had other people
not wanting to come on board. She said that what happened with phasing out permits like this,
it kept South Coast Cab from ever getting its 117 permits. She indicated that rather that going
up from 58 to 117, most likely, by attrition, it would go back down to 30. She said that South
Coast Cab had the edict of the California Supreme Court saying that here were their permits
and go forward with them. Instead, she said, there was a company that was now operating in
the City and doing a good job and had been based in the area for ten years, which really had
better credentials than some of the other proposals. For example, she said that the third seated
one, or the third ranked one, as far as she understood, never submitted audited financial
statements; the fourth one had a ranking in the 50 percentile. South Coast Cab was better
qualified, she believed, and now there were being phased out and purporting to phase other
people in. She believed that it was a situation where if it was not broken, it should not be fixed
and she believed that the taxpayers of the City could be subjected to some serious monetary
damages. She stated that she believed that the City should not perpetuate a mistake already
made and should not go forward with the franchise proposal.
Mayor Daly asked if there were any other persons who wished to speak in opposition of Yellow
Cab of Northern Orange County and there were none. He said that the fourth step was that the
applicant had the opportunity to respond and summarize.
Larry Slagle said that Ms. Cazzell had made a good point and the consultant had worked with
staff and recommended that there was a need for 230 permits in the City. He said if Council
issued those permits through the franchise process, in additional to the 117, there was going to
be a glut on the market. In Mr. Slagle's opinion, that mean that no one could provide the service
that the City was looking for and no one could spend the money because a company could not
make it and would be loosing drivers and unable to replace certain cars. He believed that as
part of the process, Council should look at what that demand was and there was a mechanism
for assessing that demand on a go forward basis. To go too fast, he believed, would be just as
bad as going too slow. He said that he had seen the newspaper articles and Disney was under
achieving and the sky was not falling because the system had not been implemented as they
thought was needed to in January. He said that many people were now going to Downtown
Disney, which was the goal to keep them here and so Yellow Cabs trips were shorter. Many of
the hotels had been built and the trip that normally, in a major convention, would take Yellow
Cab to Irvine or Costa Mesa, took them to Garden Grove or Santa Ana and they were back in
business again and ready to go. He said that whatever the decision that was made, if all of the
permits were issued, he believed that it would be chaos in the City and that there would be
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ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 24
issues with ability to provide an on going business. He said if Council looked at the applications
that were submitted, every company, including Yellow Cab, in that last three years, either broke
even or lost money, and one in the process was in bankruptcy. He believed that those numbers
were an issue in terms of viable ongoing businesses.
Mayor Daly stated that the hearing on the application of Yellow Cab Company of North Orange
County was closed at this time. He suggested that the Council not act on the individual
applications until all the hearings had been conducted and he asked the City Attorney if there
was any motion to be made. City Attorney White said that there was not and that Council could
take all the evidence on all the applications and then sort that out and determine how it wanted
to proceed.
(B) Public hearing on application of American Livery, Inc. d.b.a. American Taxi for a non-
exclusive franchise for the operation of 50 taxicabs and temporary permits for up to 30
additional taxicabs pursuant to the terms and conditions set forth in the applicant's proposal
(Continued from Council Meetings of April 17, 2001, Item A48 and June 12, 2001, Item C1).
Mayor Daly announced that the Council was moving to the second public hearing which was
American Livery dba American Taxi. He said that the same procedure would be followed as
was for the previous hearing and he then opened the hearing and asked for a representative of
the applicant.
Rick Schorling, President of American Taxi, said American Taxi was founded on an
environmental principal of clean air. He said that American Taxi was the first and still the only
100% compressed natural gas taxi operator in the country. He said that his company was
evaluated by City staff and given what he felt was a fair rating. Part of that rating, he noted, had
to do with the fact that everything at American Livery was new, such as new cars and a new
company. He said that because American Taxi did not have a proven track record, as a
company, he understood the points taken away for that. He explained that the company was
two years old and had completed their first year of successful operation at John Wayne Airport.
Staff, the newspapers, John Wayne Airport and the County of Orange had all verified that
American Taxi was in compliance with the contract and that the service had been excellent.
They had achieved the highest approval rating of any taxi company ever operating at John
Wayne Airport, he said, and all of this was well documented. Mr. Schorling said that the
information had been reviewed, investigated, evaluated and audited by American Taxi's
auditors, by John Wayne Airport staff every six months, by the County of Orange and by the
cities of Anaheim and Torrance, by the U.S. Trustees Office and by the Bankruptcy Court. All of
the findings had come back the same, that the company was sound, had an operational
success, was in a Chapter 11 bankruptcy because of a dispute with Ford Commercial Credit, he
said. He explained it dated back to the very beginning of the operation, that he had made
commitments to Ford Credit and Ford Motor Company and they made commitments to him. He
said he fulfilled his end and Ford did not fulfill theirs. He explained that in a normal Chapter 11
bankruptcy, the first thing that happened was that everything was cut to the bone and none of
that happened at American Livery, no one lost their job and no expenses were cut back
because there was a major dispute with Ford Credit who owned all of the cars. Mr. Schorling
stated he had filed with the U.S. Trustees Office and with the Bankruptcy Court new financing
which would remove Ford Credit from their ownership of the vehicles, allow American Livery to
purchase immediately 100 additional vehicles and prove to the Bankruptcy Court that American
Taxi had a plan of reorganization not only to come out of bankruptcy but to come forward on a
. ~"""'
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 25
permanent basis. Mr. Schorling asked that Council consider the staff recommendation and go
ahead with the franchise process as it was designed and recommended by staff.
Mayor Daly asked if there were persons present to speak in support of the application of
American Taxi and hearing none, asked for persons who wished to speak in opposition of the
application of American Taxi.
Jeff Farano, 2300 East Katella Avenue, Suite 235, representative of California Yellow Cab, was
the author of a letter which was one of the exhibits listed. He believed that the staff report did
not come back with any indication of response to any of those. He said that those were the
letters that were submitted of approximately 15 to 20 different exhibits that Mr. Farano had
asked staff to review. Mr. Farano's position was that California Yellow Cab was not one of the
loosing applicants attacking one of the better applicants but one of the better applicants that
was revealing information that should have been revealed in the first place. He believed that no
one else in the process would do that, he said. He believed that American Taxi had highlighted
all the benefits and did not highlight any of the problems. Mr. Farano said that since Council
was being asked to make a decision of the applicants based on the information provided, based
on an evaluation and scoring process of the applicants and he believed that City Attorney White
had made that clear last time. California Yellow Cab believed that it was not fair in that all of the
information was not reviewed, was not before the evaluating committee and not before Council
and he said it was put upon Yellow Cab to reveal some of the information to Council. With
regard to the bankruptcy information, he said, it was understandable that they were in
bankruptcy protection and he understood the necessary procedures of bankruptcy protection.
He believed that the information was not in front of Council at the time the evaluation was made.
That information, he said, included a substantial number of items, which were listed in the letters
and he did not want to go over all of that with Council tonight. He just wanted to summarize
some of the information which was considered to be substantial material which went to two
criteria: financial stability and the ability to perform. The first one, he said, was representation
under application that they would be receiving $110,000 per month in incentives from the South
Coast Air Quality Management District. In review of the information from the Air Quality
Management District and in review of the information in the bankruptcy papers, that money
would not be coming and that would be $110,000 per month that they indicated that they would
be receiving. Mr. Farano submitted in his papers, declarations from representatives in the
bankruptcy court to indicate that it was not coming. Mr. Farano had a copy of the minutes from
South Coast Air Quality Management District in November of 2000 where it was stated that that
money would not be coming. American did not represent that, at that time of their application,
they were six months past due in their car payments, he added. They did not indicate in their
application that they were six months past due in the fleet maintenance of their cars and they
did not indicate in their information that there was substantial litigation among the investors and
partners as to the control and ownership of the company. They had not represented even yet
tonight that Ford Motor Company made a motion last week, still attempting to repossess the
vehicles, he added. American represented in their financial information that they would be
setting aside $40,000 to $100,000 per month, he said, as a method of financing and purchasing
the new vehicles, but yet in the bankruptcy papers that he had reviewed to date, that money
was not being set aside. Their method of being able to acquire these vehicles was suspect, he
felt. Mr. Farano said that tonight was the first time that he had heard that American had
someone sitting in the wings willing to step up and pay the money and that was substantial
information that should be reviewed by the evaluation committee whether they had the means
and the ability to buy the equipment. American was saying tonight, and in the papers that they
submitted, that this was confidential and they would not reveal it, he said. Mr. Farano believed
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ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 26
that in other words, American was saying to trust them and that they would come up with
something. That was not how the evaluation process worked, he explained. He said that
American was being sued by eight different investors of either the existing or the previous
company, but he was not certain who. Mr. Farano said that there was substantial litigation
floating around which went directly to their ability to perform in accordance with the proposal.
American received 21 points out of 25 on the category of ability to perform and this was a
company that was in bankruptcy, substantial litigation and apparently had no means of acquiring
the vehicles, he said, yet they received 21 out of 25 points for the relative category of ability to
perform. Mr. Farano said that was extremely relevant and according to the information that was
given to Council two hearings ago by Mr. White and he believed that these were things that
Council could consider. He said that Council could not reject American because they were in
bankruptcy but that Council could consider relative information as to their financial ability and
whether this information was misrepresented to Council. Mr. Farano submitted to Council that
they knew all the information existed and they had decided to hold it back hoping that they
would eventually get the Anaheim proposal before they had to file bankruptcy. He believed that
the process got delayed and now American was just waiting out time to see which one came
first. Mr. Farano believed that American should be re-scored in several categories, such as
financial stability and ability to perform should be reevaluated down to a much lower score in
relation to their process.
Mayor Daly asked if there were any other persons wishing to speak in opposition to this
application and if not, he said, the applicant had an opportunity to respond and summarize as
the final step.
Rick Schorling said that there was no question that the bottom line of everything having to do
with American Livery was up to the bankruptcy judge. He said that that was something he knew
going in and he knew that that would be the fate. Regardless of what Mr. Farano said, that was
the bottom line that the bankruptcy judge would make the determination if the company was to
go forward, he said. New financing, the ability to payoff one secured creditor who was the only
secured creditor, he believed was reasonable enough for anyone, including the judge to say that
this was what was needed and this was what was required to go forward and they would do
everything necessary to cenfirm that the money was there. Mr. Schorling said that he had
absolutely no problem providing staff with the information that had been submitted to the court
which detailed the financing and an out line of the plan of reorganization and the bottom line
was that it was up to the judge. Mr. Schorling believed that the plan of reorganization was what
he and the Trustee wanted to see. He believed that the final plan of reorganization would be
confirmed and everything financially would be fine. Despite the filing of the Chapter 11,
operationally, nothing changed, said Mr. Schorling and the County of Orange, John Wayne
Airport and staff had verified that and everything had remained the same.
Mayor Daly, hearing no further comments, closed the public hearing.
(C) Public hearing on application of A White and Yellow Cab d.b.a. A Taxi Cab for a non-
exclusive franchise for the operation of 50 taxicabs and temporary permits for up to 30
additional taxicabs pursuant to the terms and conditions set forth in the applicant's proposal
(Continued from Council Meetings of April 17, 2001, Item A48 and June 12, 2001, Item C1).
Phillip Anthony, on behalf of A Taxi Cab, said that Council had had a lot of information about the
evaluation process that had been gone through on the franchise proposal program. He said
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 27
that there was always difficulties with a group of human beings scoring in this kind of a process
and that there would be people who were disappointed. He said that there were a couple of
charges made by Mr. Farano that he wanted to answer and one was the question of the audited
financial statements. He believed that staff clarified at the last meeting that there was no
mandatory requirement for audited financial statements. It was not one of the hard
requirements of the franchise Request For Proposal and it was a factor in scoring. Mr. Anthony
realized that A Taxi Cab did not have them, never had them and did not need to have them and
chose to loose a few points as opposed to wasting time and money creating audited financials.
He believed that Council had seen, with another applicant, that audited financials were no
guarantee of anything. The other thing that Mr. Farano had told Council, said Mr. Anthony, was
that A Taxi Cab had insurance problems. He believed that Council had a large document from
A Taxi Cab that they were the victim of insurance fraud back in May. Within less than 48-hours
of finding out about it, A Taxi Cab corrected it, he said, and in fact, got insurance coverage so
there was no lapse at all. It was unfortunate that it happened, but it was corrected immediately.
He said that the one thing that was real about the situation for A-Taxi Cab was the experience.
A Taxi Cab had been serving the City for fourteen years along with the other providers that
Council had heard from tonight. A Taxi had a record of top service to the City and that was real,
he said. Fourteen years of steady, dependable top quality service, he said, and virtually no
complaints of any kind. In fact, he said, the two incumbents had been serving the City very well
covering the needs of the people, the citizens as well as the needs in the Resort Area. Like it or
not, he said, the court had given Council a third company to serve the City, the one Council just
heard about a few minutes ago. Given the two incumbents, and the one the court gave the City,
he said the City had three companies that were here right now, he said. He said that perhaps
that might be the sensible answer at this point, to keep the two incumbents, the courts had
given the City a third company. He believed that if the two incumbents had at least 100 cabs,
put them on a parity with the court ordered 117 cabs, there would be a fairly sensible situation
where the three companies would be on somewhat equal footing to compete with each other
and a sense of parity, and hopefully keep the quality up. Mr. Anthony said he thought, as was
said earlier, having too many taxis actually available was a threat to the quality of service and
also the profitability of the companies. He said, unfortunately, if the profitability deteriorated,
often the quality of the service deteriorates to try to save cost and to survive. That was an
unfortunate situation, he said, and that was what Council was facing tonight. A Taxi Cab
Company was a top quality company, said Mr. Anthony. He said that they now had fully
operational, the very best, computer aided dispatch system with full Global Positioning Satellite
of any company in Orange County. The system A Taxi had, the digital dispatch systems or so
called taxi track system, was rated best in the country, probably best in the world, he said. That
system was now fully operational and he wished that Council had a chance to see it because it
was truly a remarkable state of the art system. The total location of all cabs at all times, total
tracking of where they had been, going back days, months, weeks if necessary, he said, and the
ability to put the closest driver, the closest cab that was not occupied to the customer as soon
as possible. In fact, he said, since the system had been running, A Taxi was having remarkable
results with minimum dispatch, minimum response times. He said that the City's RFP required
a minimum of twenty minutes for 80 percent of the calls and A Taxi was actually experiencing
five minutes response times. It also required for 96 percent of the calls within 45 minutes, A
Taxi was seeing results within 20 minutes, he said. This was truly a modern remarkable system
and the best that was available, it was fully operational, serving the City at this moment, he
added. Mr. Anthony said that what the cab system divided the City into fourteen different zones,
totally computer controlled. Six of those, he said, were dedicated to the Resort Area. The
system tracked the City in terms of sixteen geographical zones and controlled the cabs to the
customers in the most efficient way in those sixteen zones. He explained that the computer
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ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 28
system was in house but was not operational when the team visited during the evaluations. It
was unfortunate timing but it was operational now, he said. He said that A Taxi also had newer
taxis in its fleet. The ones serving the City were 1999 Windstar vans and 1998 Crown Victoria
sedans, he said. A Taxi was the leader in introducing van service to this area and the vans
were a wonderful feature for particularly the Resort Area with the families, he said. He
explained that six people could travel for the price of one and if there was a family with up to six
people, the van was the answer and they had been extremely well received. He said that the
other companies were now starting to introduce vans. It was a new fleet, 1998's and 1999's
and also all of the drivers, for years, had followed a strict dress code. Every driver had black
shoes, black pants, white shirt and maroon tie, he said. They dress that way by requirement of
the company and it was reflected in their pride and their service and he reported that it has had
very good results and was well received by the customers. The company was run by one of the
top owner/operators around, he said. A Taxi's owner, except for Mr. Slagle, had had the longest
career in Orange County and the last fourteen years in the City, he said. In fact, he noted, of
the three other companies Council had been hearing about tonight, their owners were all former
employees of A Taxi Cab's, all trained by Mr. Nabati, the owner/operator of A Taxi Cab. Mr.
Anthony thought that the real payoff was in the service to the citizens in the Resort Area. A Taxi
had fourteen years of proven record of service to the community and A Taxi sent Council some
testimonials to that effect, he added. Mr. Anthony said Council should have received the 29
written statements from key personnel, in thirteen different hotels and motels in the Resort Area,
personally stating how pleased they were with the efficiency and the quality of service, the
courtesy, the appearance, the reliability, the on-time responses of A Taxi cabs and he urged
Council to keep them serving the community. Mr. Anthony said that it came down to the quality
of service to the citizens and visitors in the Resort Area and he believed that A Taxi had a
record of performing that way and would like to continue with the City and he urged Council to
consider keeping the two incumbents and give them at least 100 cabs each and with the other
company, 117 permits by the court. He said that would at least keep a reasonable number of
companies in the community and gave them all a roughly equal number of cabs to work with
and hopefully they could compete on a sensible basis, keep in business and keep the quality
up. He said that he and Mr. Nabati were present to give any detailed responses requested by
Council.
Council Member Tait said to Mr. Anthony that he had mentioned something early on in the
presentation about the audit that was not a requirement and he asked if that was stated in the
request for proposal, that it was not a requirement. Mr. Anthony said that it was and that the
RFP went through a whole number of requirements and then it got to a section called evaluation
measures and it was asking to provide audited financial statements and the thought was that if
the company did not provide them, they would lose points. That was what the staff had
confirmed, he said. He believed that Mr. Poole had verified that at the last meeting but it was
something to be scored, but it was not an absolute mandatory requirement for the proposal.
Mr. Poole said that a request was sent to A Cab for an audited statement and they gave a
reason why they could not submit that and they were graded lower because of that.
Mr. Anthony said that A Taxi Cab was a closely held family corporation and there was
absolutely no reason to produce these rather expensive audited statements. He said that A
Taxi did have financial records that were submitted that had been prepared by a certified public
accountant. He believed that the proof of financial health and stability was the fact that the
company had been in the community for fourteen years, performing, surviving and getting the
job done day in and day out for fourteen years with no financial problems.
. "'''W
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 29
Mayor Daly asked for persons who wished to speak in support of the A Taxi Cab and hearing
none, asked for persons opposed to this application.
Richard Johnson, 2821 White Star, stated that he had been a cab driver for ten years and had
worked for all of the gentlemen, except for Mr. Slagle. He said that there were two honest cab
companies in Orange County and that was Mr. Slagle and Mr. Casey. He said that he worked
for Mr. Nabati for five years and never had an Anaheim permit and did not know that they
existed. He knew what an Anaheim lease was, which meant that he had to pay more to drive in
the City, which he did. He said that he did not find out about Anaheim permits until a year into
driving and that they were not honest and that was important. He said that if the City wanted 20
more cabs sitting around the hotels, that was fine, but the other companies picked up the
houses and he believed it was important. Mike Casey picked up the residents, he said. Mr.
Johnson said he did a little test last week to see how long it took and he called a couple cabs to
the gallery on White Star, the far side of the City, and Mr. Nabati's cabs never showed up, Mr.
Slagle's cabs showed up in about ten minutes, Mike Casey's cabs showed up pretty quick. Mr.
Johnson expressed his support for Mr. Slagle and Mr. Casey, and against Mr. Nabati.
Jeffrey Farano, 2300 East Katella Avenue, Suite 235, representative of California Yellow Cab,
said that once again his client was in the position to be the bearer of bad news and somewhat of
an attack or there was not an opportunity to speak about the company. He said that what they
were doing was making sure the process was fair. This issue was brought up at the very
beginning and that was about the audited financial statements, he said. He said that when this
process was in place for a whole year, the committee met on a regular basis and one of the
major issues they discussed was whether audited financial statements should be provided. The
end result, he said, was that it should. Audited financial statements were not simple, not cheap
and he believed that everyone knew that, and yet the committee decided that they wanted it.
During the process, California Yellow Cab read the evaluation procedures and it said audited
financial statements. He noted that they did not have audited financial statements at that time
and so they inquired to Mr. Poole's office if they needed to have audited financial statements
and the response was that they must provide what the RFP requested and if they did not, they
would be considered disqualified, he said. So a considerable amount of money was spent to
have the statement audited, he explained. Page 10 of the evaluation measures specifically
stated that paragraph two provided audited balance sheet, cash flow, income statements in the
terms as described as general accepted accounting principles for the most recent three years.
Mr. Farano believed that it could not be anymore clear than that and so again, to go through the
process of fairness. Mr. Farano said that I guess one could say what was the harm if they did
not provide audited financial statements; they had been in process for ten years. He said first of
all, it was a matter of fairness. If you looked at the ratings from the third three applicants, the
score was within seven points, he noted. He said the point was that they simply did not obey
the process and received an advantage because of it. He said the other thing that was brought
up after the proposal was submitted was the question of insurance, which went into the category
of ability to perform. He said A Taxi Cab had over the years been requested to cease operation
due to lack of insurance, due to being caught up in an insurance scam. He also said that they
were now in litigation over that. He exclaimed that the point was that this was not the first time it
had happened and the second point was that they were ordered to cease and desist operations
while they did not have insurance, yet for at least a day and a half after the order was issued,
they continued to have cars on the street. He added that a day later they got insurance. The
old insurance company said they would reinstate them back to the time they were first
cancelled, he explained, asking but what if that were not to happen. He asked, what about the
..-.-.
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 30
whole attitude and process, that they decide for a day and a half that they would operate their
cars without insurance. He said that was something that should be seriously considered, it was
not mentioned in the evaluation process. He asked, should they be disqualified completely, he
answered, probably not, but should they be downgraded because of that under ability to
perform, he said he thought they should be whacked fairly hard because it gave everyone a
good indication about what they were about. Finally, on the issue of audited versus certified, he
said what Mr. Poole and the City staff submitted was a distinction between audited and certified
financial statements. Audited was a definite process of verifiable third person investigation, on
all statements and back-up information. Certified, as was explained in a memo to Council, was
not really a process, he felt. He said there were no certified financial statements, that was all
whatever the provider, requestor defined. What was defined by the application process was
"audited", he noted and he said they did not do that. He told Council if they also read the
memo, the whole question of validity of the financial statements, those certified statements were
not signed by anyone, no one knew who prepared them. They were simply submitted in the
application by the applicant saying these are certified financial statements, he noted. He asked
if they should be disqualified because of that, answering that was up to Council. He asked if
their financial stability score should be ranked for a zero, because the City did not know what
they were getting, he answered he thought Council should consider that.
Council Member McCracken asked if there were any others who would like to speak in
opposition.
Larry Slagle said, having heard the two presentations, one could make the determination that
there was a big gap between a ninety-three and the other scores on the evaluation rating and
perhaps as the regulation said, that if the City issued up to three it did not mean they had to
issue three. He said the City might be better off with another determination. Secondarily he
said, Mr. Anthony made the point that it would be better if there were three at a hundred apiece.
That would still substantially exceed the number of vehicles determined was an adequate
number and could cause some problems. He offered a better way to do that, which would be to
distribute cars by the number of years in business.
Mayor Daly said that the fourth and final step in the hearing was to hear from the applicant or
his spokesperson to respond to any points and then we will go to the hearing.
Phillip Anthony said he did not want to belabor the part about the audit or the insurance, that he
thought that Council had enough information about that verbally and in writing. He said that the
longevity of the company doing healthy business in the community for fourteen years was much
better than any audit statements would be to prove who was able to run a business. He asked if
he could ask Mr.Nabati to respond to Richard Johnson's accusations.
Mayor Daly asked if there were any questions for Mr. Anthony.
Mr. Nabati said that most of the people in the room had worked for him at one time or another.
He explained that he opened the cab company in 1986, the cab in 1987, he hired quality people
which he could see three of them. the biggest cab companies in Orange County. He said he
hired quality drivers and Mr. Johnson's accusation was wrong because he said he found
marijuana in his car and he terminated him. He noted that he did not let anyone who did not
obey the rules and regulations work for his company. Responding to the California Yellow Cab
accusation about insurance, he said he always had insurance, it had never slipped and they
were the best company in Orange County, a pioneer in ideas about the taxi cab business.
.'-n-
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 31
Mayor Daly closed the public hearing on A Taxi Cab. He said the fourth and last hearing on the
applications was on Cabco Inc. doing business as California Yellow Cab.
(D) Public hearing on application of Cabco, Inc. dba California Yellow Cab for a non-
exclusive franchise for the operation of 50 taxicabs and temporary permits for up to 30
additional taxicabs pursuant to the terms and conditions set forth in the applicant's proposal
(Continued from Council Meetings of April 17, 2001, Item A48 and June 12, 2001, Item C1).
Jeff Ferano spoke as the representative for California Yellow Cab stating that in his letter dated
July 10, 2001, he provided comments regarding California Yellow Cab in regards to positive
things. He informed that California Yellow Cab had been in business since 1986 serving all of
Orange County. Since then they had grown to the fourth largest in Orange County currently
with approximately 75 cabs. Prior to starting California Yellow Cab, its President, Mr. Casey,
worked at A Taxi Cab for four years as the Operating Manager, basically running the operation
in Anaheim. California's proposal, similar to the other companies, proposed to provide 100% of
its fleet as clean air burning vehicles. Brand new vehicles would be cycling every several years
and they also propose to provide a complete computerized dispatch system similar to the other
providers, he informed. This company, he noted, also had stated in the financial statement,
considerable financial backing, sufficient cash financial backing. They were considered a good
quality company, he felt. There were several primary areas which he felt needed to be
addressed, he said, which he had addressed with staff before, but had not heard a response.
The first was under the ability to perform, saying in the evaluation it was stated they were
marked down for the ability to perform because they only had drivers with minimal experience,
some less than three and some with five. He responded that those drivers had the experience
which was listed at the time, were employed by California Yellow Cab which was six years when
in fact, as they pointed out to the evaluation committee, their drivers had substantial experience
very similar to the other applicants. He said they all came from the same pool. It was because
of that they were rated down as stated in the evaluation for not having the experience when
many of them had at least ten years experience in operations, he said. He noted California
Yellow Cab was marked lower than justified in only a few categories. One was the experience,
when in fact, Mike Casey as the operator had more experience than even Rick Shorling
because of his six years experience with California Yellow and four years with Anaheim Yellow.
He said he believed he should be at least equal in experience in that category. Financial
stability, other then Larry Siegal's operation, California Yellow Cab was one of the few that
stated a substantial amount of financial backing and financial ability to buy the equipment. He
said it was not sealed, everyone knew who it was, where it was going to come from and it was
all readily available. And finally, ability to perform, he said California Yellow Cab has indicated
throughout the evaluation that it has the financial ability and experience to perform according to
the Resort style process and Resort style taxicab service that the City would like to see. None
of it was hidden, he explained, it was all out for Council to look at, and all the statements, right
up to the last several months, were audited for Council to review. He felt they followed every
procedure possible and it was unfortunate they had to point out some of the problems of the
other proposals, but it was simply a matter of fairness. He felt they should be treated the same
as every one else. He stated if that were the case, it was all laid on the table everybody treated
fair, they would not have a problem, they would compete fairly with anybody. He finished by
saying they felt the process should be evaluated accordingly.
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ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 32
MaryAnn Cazzell, representing South Coast Cab, said Mr. Ferano's cemments were pot calling
the kettle black, he had put down almost every application, where actually California Yellow Cab
was the one which lacked the financial stability. She said the application that was submitted by
California Yellow Cab showed barely making a profit in the last year and not making a profit in
the two years before that. She said one might pose the question, how was this company going
to now acquire a fleet of all natural gas taxi's, how was it going to get a computerized dispatch
system that all the other three proposers already had, and now somehow make a profit when it
could not do that without all of those problems. She explained that the gentleman who spoke
against A-TaxiCab's application but actually on behalf of California Yellow Cab application, that
said he worked for all of the companies in the County and there were only two honest ones,
never worked for South Coast Cab. She added that she would propose South Coast Cab was
an honest company. Also, she noted in or around 1997, shortly before OCTAC began
operating, California Yellow Cab did not have insurance and there was a fatality in the City of
Huntington Beach. One of the drivers actually hit and killed someone and there was no
insurance, which was a real problem. She finished by saying she would submit that was a
problem with liability the City would not want to face.
Mayor Daly asked if there were any other persons who want to speak in opposition to this
application.
Jeff Ferano responded that in regards to the allegation of an accident where they did not have
insurance and there was a death, that was not this company. OCTAC records would indicate
that it was not this company, he added, a completely different company owned it. California
Yellow Taxi Cab Company for the record, which was not this company. In regards to the
financial situation, he responded that a lot of the companies did operate at a loss. Business
over the last couple of years had not been well around the County until things started picking
up. He said when you look at page 26 of the evaluation process, under the cash balance,
CabCo Inc. had $497,000 in the bank at the time. That was the financial backing, he felt. If you
look at A-White Yellow Cab they had a negative $10,000, American Livery had $319,000, which
was quite curious he noted, because that was a company that was now in bankruptcy and had
not been able to pay their bills. Yellow Cab in North Orange County had $383,000 in the bank.
He said he thought it was all a matter of operations. He said you could operate at a loss for a
year but it depended on what you were doing with your money, were you re-investing it into your
equipment, saving it to buy the equipment you are going to need. He informed that was in fact
what has happened, that was the purpose of the audited financial statement, so that everyone
knew what was going on. With California Yellow, he exclaimed, everyone did know that they
were financially stable and they did have the backing necessary to buy the equipment, there
had been no other information to indicate otherwise.
Mayor Daly asked if there were any questions for Mr. Ferano or for any of the speakers who
spoke at the hearing and hearing none, Mayor Daly closed the public hearing. He asked if
Council had any questions for staff or the City Attorney.
Hearing none, he asked if Council would like to take a week or two to analyze the information
that had been presented.
City Attorney White said that all four hearings had been closed. He said if Council desires to
have an opportunity to reflect on the evidence prior to making a decision, they could certainly
continue all four hearings until their next meeting or some other time. He said that if the
hearings remained closed, there would be no additional testimony taken as part of the hearing
ANAHEIM CITY COUNCIL MEETING MINUTES
JULY 10, 2001
PAGE 33
process. He explained that if they desired to have additional testimony it would be necessary to
re-open the hearings prior to continuing the matter.
Mayor Daly asked if it was the desire to have the hearings remain closed, what action would be
necessary.
Mr. White answered the only action necessary would be to continue the decision on all four
applications to a time certain because the hearings were closed.
Mayor Daly moved to continue the decision on this matter for two weeks. Council Member
McCracken seconded the motion.
Mr. White said that prior to the meeting two weeks from today, it was his understanding that
there was at least one further hearing scheduled in the bankruptcy Court in the American Livery
matter. He said if it was Council's desire to at least have information concerning the results of
that hearing, he believed there was a motion that was continued from last Tuesday to the 23m.
He said it was Ford Motor Credit Companies request for relief from the automatic stay order that
was in effect with regard to their possible repossession of the vehicles. He believed that if the
Council wanted that information he could provide that, it would be a matter of public record, of
those proceedings without the need to re-open the hearings.
Mayor Daly said that would be fine. He said there was a motion and second to continue the
decision for two weeks, motion carried unanimously.
Mayor Daly thanked all of the applicants for their time, effort and patience while Council
endeavored to make the best decision possible.
Report on Closed Session Items: City Attorney White said the Council, acting as the
Anaheim Redevelopment Agency, approved an agreement for re-Iocation to the tenant OKS T-
Shirt Company from its current location. He said the vote was all ayes.
COUNCIL COMMUNICAITONS:
Council Member McCracken announced that July 14, 2001, at 7:30 P.M. Hotel California would
be performing at Pearson Park as presented by the Anaheim Arts Council.
Council Member Kring thanked the City Staff, particularly the Public Works Department for the
beautiful completion of Ninth Street from Katella south to Orangewood.
Council Member Feldhaus requested that a discussion on term limits for Boards and
Commissions be placed on the next agenda.
Mayor Daly asked if a special meeting needed to be scheduled.
City Attorney White suggested to adjourn the meeting and notices would be sent out if a special
meeting was necessary.
ADJOURNMENT:
There being no further business, Mayor Daly adjourned the meeting at 9:11 P.M.
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