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1994/06/21City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly COUNCIL MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANT CITY CLERK: Ann M. Sauvageau UTILITIES GENERAL MANAGER: Edward Aghjayan PARKS, RECREATION & COMMUNITY SERVICES DIR: C. Jarvi PARK SUPERINTENDENT: Jack Kudron PLANNING DIRECTOR: Joel Fick A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 3:15 p.m. on June 17, 1994 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the meeting to order at 3:00 p.m. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session noting first that there are no additions to Closed Session items. PUBLIC COMMENTS - CLOSED SESSION ITEMS: There were no public comments relative to Closed Session items. The following items are to be considered at the Closed Session: 1. CONFERENCE WITH REDEVELOPMENT AGENCY LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: Proposed Relocation Settlement - Agrigold Juice Products, Inc. 2. CONFERENCE WITH REDEVELOPMENT AGENCY LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: Anaheim Stadium (new Redevelopment Project) CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: Marquez vs. City of Anaheim Grievance proceedings. By general consent, the Council recessed into Closed Session. (3:01 p.m.) 325 City Hallt Anaheimt California - COUNCIL MINUTES - June 21t 1994 - 5:00 P.M. AFTER RECESS.' The Mayor called the meeting to order, all Council Members being present, and welcomed those in attendance to the Council meeting. (5:20 p.m.). INVOCATION: Reverend Bryan Crow, The Garden Church gave the invocation. FLAG SALUTE: Council Member Fred Hunter led the assembly in the Pledge of Allegiance to the Flag. PRESENTATIONS: PROCLAMATION recognizing Airtouch Cellular Samaritan supporting Wipe Out Graffiti Paint Out June 25, 1994 - Melissa May and Glenn Wilke accepted the proclamation. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $4,556,336.74 in accordance with the 1993-94 Budget, were approved. By General Consent the City Council recessed until after Redevelopment and Housing meetings. (5:25 P.M.) City Council meeting reconvened at 5:28 P.M. ADDITIONS TO THE AGENDA: There were no additions to agenda items. ITEMS OF PUBLIC INTEREST: Input was received on a number of items which are listed under the items involved. Marilyn Hauck representing Anaheim Municipal Employees Association and a resident in Anaheim. She expressed concern over the situation that will arise in the forthcoming November election. The way the Charter was previously changed regarding term limits and the fact that there will be three (3) vacancies but only two council seats filled and a mayoral seat, it will put the City in a position where the Council may have to appoint to fill a potential vacancy or if they do not do so within a certain period, to call for a special election to fill the seat which will cost approximately $100,000. She asked if there was a way to place an issue on the ballot in November to correct the problem because this situation will occur again in 1998. The measure should state that the third highest vote getter for a council seat automatically moves into that seat rather than having to appoint or have a special election. She would like it to be retroactive for the November 1994 election. Mayor Daly. He will ask the City Attorney to evaluate the Charter issues involved and report back to the Council by the next meeting. Council Member Simpson asked the City Attorney if he could pay particular attention to the possibility that the situation could occur again and again. It was his understanding that was not going to be the case. City Attorney Jack White. The Charter could be changed to provide that, with regard to any future elections, that the person who receives the next highest amount of votes would move into that seat. It is possible that situation could occur not only this November, but also in future years. Since the Mayor's position is separately elected, an incumbent Council Member in the middle of a term who runs for Mayor and is elected, that Council seat would become vacant. It could happen not only this November, but every four years. In order to avoid this special election provision, it would be necessary to 326 City Hallr Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. amend the Charter. Since a charter amendment is required, it is not possible to make that provision apply to this November; however, the Council could put a provision on the ballot to amend the Charter to allow that to be the way it happens in all future elections. He clarified for Council member Pickler it was not possible for the change to occur in November. The only way would be a special election between today and November 8th to amend the Charter. Council Member Hunter. He feels they still should have it written up so that it can be puton-the-ballot.. It.might not be applicable.to.the election coming up, but it will be a practical way to proceed. PUBLIC COMMENTS - AGENDA ITEMS: Extensive input was received on items B3 and C2. See discussion under those items. MOTION: Council Member Daly moved to waive reading in full of all ordinances and resolutions to be acted upon for the Council meeting of June 21, 1994. Council Member Simpson seconded the motion. MOTION CARRIED. Mr. Ruth read the titles of the ordinances and resolutions on the Consent Calendar. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member Hunter, seconded by Council Member Simpson, 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 Hunter offered Resolution Nos. 94R-101 through 94R-110, both inclusive, for adoption. Council Member Hunter offered Ordinance Nos. 5429 and 5430 for adoption. Refer to Resolution/Ordinance Book. Al. 118: The following claims were filed against the City and action taken as recommended: Claims rejected and referred to Risk Managements a. Claim submitted by Mary Ashbaugh for property damage sustained purportedly due to actions of the City on or about March 25, 1994. b. .Claim submitted by Maria Herlinda Franco for bodily injury sustained purportedly due to actions of the City on or about March 21, 1994. c. Claim submitted by F. Matin for property damage sustained purportedly due to actions of the City on or about April 15, 1994. d. Claim submitted by Andres Fernandez for property damage sustained purportedly due to actions of the City on or about March 24, 1994. e. Claim submitted by Century National Insurance Co. as Subrogee for Arturo Figueroa for property damage sustained purportedly due to actions of the City on or about March 4, 1994. f. Claim submitted by Rita Lowy for property damage sustained purportedly due to actions of the City on or about May 11, 1994. Claim submitted by Gina Marie Shuy for bodily injury and property damage sustained purportedly due to actions of the City on or about March 12, 1994. 327 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5=00 P.M. h. Claim submitted by Farmers Insurance Group, Attn: Russell E. Baker for property damage sustained purportedly due to actions of the City on or about March 12, 1994. (Gina Schuy) A2. 117: Receiving and filing a Summary of Investment Transactions for May, 1994, as submitted by the City Treasurer. 175: Receiving and filing a Notice of Filing for the United States of America Federal Energy Regulatory Commission regarding the filing of a supplement (Docket No. ER94-1295-000) by Portland General Electric Company regarding Service Agreements under FERC Electric Tariff, Original Volume No. 1 (PCE-1) with Enron Power Marketing, Inc., and Electric Clearinghouse, Inc. 105: Receiving and filing minutes of the Senior Citizens Commission meeting held May 12, 1994. 105: Receiving and filing minutes of the Community Services Board meeting held May 12, 1994. A3. 175: Awarding the contract to the lowest responsible bidder, Valverde Construction, in the amount of $235,500 for Water Valve Replacement Phase VIII; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A4. 167: Awarding the contract to the lowest responsible bidder, De La Cruz Construction, Inc., in the amount of $36,550 for Traffic Signal Improvements at Weir Canyon Road and Santa Ana Canyon Road; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A5. 170: Approving the Final Map of Tract No. 12685, and the Subdivision Agreement with The Presley Companies; and authorizing the Mayor and City Clerk to execute said Subdivision Agreement. Tract No. 12685 is located on the west side of Sunset Ridge Road of the Highlands, and is filed in conjunction with Specific Plan No. 87-1. A6. 170: Approving the Final Map of Tract No. 12687, and the Subdivision Agreement with The Presley Companies; and authorizing the Mayor and City Clerk to execute said Subdivision Agreement. Tract No. 12687 is located on the south side of Hollow Oak Road of the Highlands, and is filed in conjunction with Specific Plan No. 87-1. A7. 123: Approving an Agreement with P & D Technologies, in an amount not to exceed $~,000 ~or engineering design services ~or the Anaheim Boulevard and Ball Road intersection improvement. A8. 101: Approving Contract Change Order No. 1, in the amount of $659,150 in favor of Parr Construction Company for the construction of Phase II work items. A9. 172: ORDINANCE NO. 5429 - (ADOPTION): AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING CHAPTER 14.40 OF TITLE 14 OF THE ANAHEIM MUNICIPAL CODE RELATING TO SPEED LIMITS. 328 City Hall, Anaheim, California - COUNCIL MIN13TES - June 21, 1994 - 5:00 P.M. Al0. 173: RESOLUTION NO. 94R-101: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE ORANGE COUNTY TRANSPORTATION AUTHORITY TO ALLOCATE COMBINED TRANSPORTATION PROGRAM FUNDS FOR HARBOR/LEMON/SR-91 FREEWAY INTERCHANGE PROJECT. Ail. 173: RESOLUTION NO. 94R-102: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE ORANGE COUNTY TRANSPORTATION AUTHORITY TO ALLOCATE COMBINED TRANSPORTATION PROGRAM FUNDS FOR ORANGEWOOD AVENUE AT THE I- 5 FREEWAY. Al2. 123: Approving a Second Amendment to Agreement with Austin-Foust Associates to perform a traffic study for the Anaheim Resort Area at a cost not to exceed $5,400. A13. 123: Approving an Agreement with South Coast Air Quality Management District to receive funding, in the amount of $112,000 for the Downtown Anaheim Telecenter. Council Member Feldhaus abstained. 106: Amending the FY 93/94 Budget by increasing revenues and expenditures in Program 3246, Commuter Services, by $112,000. Council Member Feldhaus abstained. A14. 128: Receiving and filing the Monthly Financial Analysis presented by the Director of Finance for eight months ended February 28, 1994. Al5. 160: Accepting the bids of (1) Microage Computermart, (2) DST Express PC Service, (3) World Wise, Inc., and (4) Automated Office Products, in an aggregate amount not-to-exceed $80,051 for micro-computer hardware maintenance, for a period of one year, commencing July 1, 1994, in accordance with Bid ~5265. Jeff Kirsch, 2661 West Palais. He noted that there was nothing in the background material regarding the previous history of requirements for maintenance. A16. 160: Accepting the bid of Petrochem Marketing, Inc., in the amount of $113,150 for an estimated 73,000 gallons of polymer modified asphalt sealer, including transportation charges, in accordance with Bid #5272. Al7. 160: Accepting the bid of Uniform Center, in an amount not to exceed $210,000 for Police uniforms and equipment as required for the period of July 1, 1994 through June 30, 1995, in accordance with bid $5288. Al8. 160: Waiving Council Policy 306, and authorizing the Purchasing Agent to issue a Purchase Order to Southwest Power, Inc., in an amount not to exceed $30,000 for 46 types of pole line hardware for Warehouse inventory stock. A19. 160: Waiving Council Policy 306 and authorizing the Purchasing Agent to issue a purchase order to Xerox Corporation, in an amount not to exceed $332,797 for the lease of one Model 5390 copy machine for a period of five years and the month-to-month rental of one Model 5385 copy machine for the Reprographics program. A20. 123: Approving a First Amendment to Agreement with Landscape West, Inc., in an amount not to exceed $21,500 for landscape maintenance at City Library facilities, in accordance with bid #5055. 329 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. A21. 184: Reviewing the need for continuing the Fourth Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services on April 5, 1994, concerning the Santiago Landslide and Pegasus Landslide in the City of Anaheim; and taking no action to terminate the local emergency at this time. A22. 184: Reviewing the need for continuing the Second Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services on April 5, 1994,-.concerning.damage within the City of Anaheim resulting from the Northridge Earthquake occurring on January 17, 1994; and taking no action to terminate the local emergency at this time. A23. 153: ORDINANCE NO. 5430 (ADOPTION): AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTIONS 1.04.110, 1.04.120 and 1.04.140, AND REPEALING SECTION 1.04.155 OF CHAPTER 1.04 OF TITLE I OF THE ANAHEIM MUNICIPAL CODE RELATING TO DEPARTMENTS OF THE CITY. A24. 153: RESOLUTION NO. 94R-103: A 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. (Amending Article 58 - Insurance, Section 58.064). A25. 153: RESOLUTION NO. 94R-104: A 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. (Amending Article 42 - Sick Leave). A26. 123: Authorizing the Human Resources Director to execute a new Agreement with Administrative Business Services, Inc., dba ABS T/A Temporaries to replace Tempaid's Agreement with the City of Anaheim. A27. 153: RESOLUTION NO. 94R-105: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A MEMORANDUM OF UNDERSTANDING ESTABLISHING TERMS AND CONDITIONS OF EMPLOYMENT FOR EMPLOYEES IN CLASSIFICATIONS ASSIGNED TO THE FIREFIGHTERS UNIT REPRESENTED BY THE ANAHEIM FIREFIGHTERS ASSOCIATION. Jeff Kirsch. He posed questions relative to this item specifically asking where the money is going. A28. 153: RESOLUTION NO. 94R-106: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM IMPLEMENTING THE "EMPLOYER PICK UP" PROVISIONS OF SECTION 414(h)(2) OF THE INTERNAL REVENUE CODE. (Tax-deferred PERS employee contributions). A29. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTIONS NO. 92R-18, 92R-19, 92R-20, 92R-21 and 92R-22 WHICH ESTABLISHED RATES OF COMPENSATION AND MANAGEMENT PAY POLICIES FOR EXECUTIVE, ADMINISTRATIVE, MIDDLE MANAGEMENT, SUPERVISORY AND PROFESSIONAL CLASSIFICATIONS. Paul Bostwick, 1411 S. Anaheim Blvd. In the budget transmittal letter, it was noted all bargaining unit salaries were frozen for the past 18 months and management had not received any increase since 1991. However, the Anaheim Police Department recently received a 6% increase and under Item A27 of today's agenda, the Firefighters are receiving a 6% increase. Items A29-A33 propose pay increases to all management employees in the City. That needs to have some definition to the public and the taxpayer as to who gets paid what, where and why. Relative to the $8.8 million dollar deficit, he questioned how much of that is in the new proposed salaries - is it included in the budget, 330 City Hall, ~-,heim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. or in addition to. (Later in the meeting, City Manager Ruth stated that the proposed management salary increases are in the proposed 1994/95 budget.) He then questioned some of the services that have been lost in the City such as funding to social services agencies, and the deterioration in City streets. He noted the City recently received a PERS refund of approximately $13 million dollars of which $9 million comes back in cash. He recommended that they fund the new downtown Community Center with that $9 million. $7 million is already funded of the $14 million. The Community Center will help the youth of the community, the seniora,~the.art .council, etc. .It will make the City a better place. Phil Knypstra. The Council knows his position on raises as expressed many times before. The Council so far has unanimously approved all the raises that have come before them. They are now in the awkward position, having given raises to some, of justifying not giving raises to others. In his opinion, if they vote for raises, they are voting for a tax increase. He feels those who are saying they have not had a raise in two years is not relevant. What is relevant is how much could they make in the private sector today and other government agencies. (He thereupon submitted sheet entitled - Proposed 6% raise for Anaheim Firefighters - made a part of the record). Mayor Daly. He posed questions relative to cost of Items A29 through A33 noting that in some instances, they were identified and in others they were not. 153: RESOLUTION NO. - ..... = A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING PAY POLICIES FOR CLASSIFICATIONS ASSIGNED TO THE EXECUTIVE, ADMINISTRATIVE, MIDDLE MANAGEMENT, SUPERVISORY AND PROFESSIONAL GROUPS. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 91R-125 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS UNREPRESENTED PART-TIME. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-17 ADOPTING PERSONNEL RULES APPLICABLE TO EMPLOYEES IN MANAGEMENT, CONFIDENTIAL, AND NON-REPRESENTED PART-TIME CLASSIFICATIONS. A30. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 93R-151 WHICH ESTABLISHED A VACATION/PAID LEAVE BUY BACK PROGRAM FOR CERTAIN CITY EMPLOYEES. Dave Hill, Human Resources Director. On Item A30, the cost is dependant upon whether or not people take advantage of the Vacation Buyback Program. In Anaheim, vacation leave is funded at the time it is accrued and it is put in the benefits fund so the money paid under the Vacation Cash Out Program is already prefunded and would not represent a new expense to the City. On Item A32, each one of those changes has been put into the individual program budgets throughout the City. He does not have the total available tonight for Council review. Again relative to the additional vacation hours, those hours are in addition to what people have already accrued. The recommendation is that managerial employees be given vacation equal to the $1,000 lump sum paid provided to a number of the City's bargaining units in recent labor agreements. It is a new cost which totals $408,000. He confirmed the recommendation adds an additional year to the Buyback Program. The two together increase the City's 331 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. cost by more than $408,000 because in extending the Program it allows management employee to buy back hours beyond the $1,000 equivalent. In his opinion, it does not increase actual cost because the existing hours have been prefunded at the time they are accrued. A31. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM PROVIDING FOR ADDITIONAL VACATION HOURS FOR ALL EMPLOYEES IN THE EXECUTIVE, ADMINISTRATIVE, MIDDLE MANAGEMENT, SUPERVISORY AND PROFESSIONAL GROUPS. Jeff Kirsch. He commented it was unusual to be providing additional vacation hours since it was not certain that employees in other parts of the pay scale were going to keep a job. A32. 153: RESOLUTION NO. - .... ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-22 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS ADMINISTRATIVE MANAGEMENT. (Implement FY 1994/95 budget, effective July 1, 1994.) Council Member Feldhaus. He has a problem with Item A29 because he does not believe in percentage pay increases across the board but in pay for performance. He is going to vote no on that item and on Item A32. He would rather address those individually on each of the classifications rather than the use of a blanket resolution. Mayor Daly asked if there was a cost associated with Item A32; Dave Hill answered "yes." All of the organizational changes represented by the new classifications have been included in each program's resource plan. The total cost of that has not been accumulated and is not available for him to put in his report. Each one of the new job classes and cost for organizational change for each City program and department has been incorporated in the department budgets of each department and the total is within the total submitted by the City Manager. City Manager Ruth. It is important to note that some of those were not just increases in classification but a decrease. Dave Hill. A lot of the organizational change continues to reflect the organization's downsizing, consolidation and cross-training of people. net increment of increase is very small. The 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-21 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS MIDDLE MANAGEMENT. (Implement FY 1994/95 Budget, effective July 1, 1994.) 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-20 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS SUPERVISORY. (Implement FY 1994/95 Budget, effective July 1, 1994.) 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-18 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS PROFESSIONAL. (Implement FY 1994/95 Budget, effective July 1, 1994.) 332 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING RATES OF COMPENSATION FOR CLASSIFICATIONS ASSIGNED TO THE CLERICAL UNIT REPRESENTED BY THE ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION. (Implement FY 1994/95 Budget, effective July 1, 1994.) A33. 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-19 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS EXECUTIVE MANAGEMENT. (Adjust salary structure,-.eff~ctive-January 27, 1995.) Mayor Daly also posed questions on item A33. Dave Hill. City staff is recommending adjustment of the structure in order to maintain the relationship between the bargaining units and managerial employees but staff is not recommending any employees except two at the very bottom of the salary structure actually receiving a salary increase or adjustment as a result of this action by the Council. They will stay at their existing salary level and will drop lower in their salary range. The only people that will receive any change are the two people at the bottom. They will be moved up to the new 80% level under the new structure and that is the reason for this small $1200 increased cost. Mayor Daly. The last time the Council approved this type of action was about three years ago having authorized raising the salaries structure but not funding it. He asked if this is the second raising of the salary structure again without funding; City Manager Ruth and Mr. Hill confirmed that was correct. Mayor Daly then asked why raise the structure a second time when they have not funded the first structure increase. Dave Hill. Long range, it is in the City's interest to maintain the structured difference between bargaining units and managerial employees even if they are unable to fund pay increases. It positions the organization to have a sound salary structure and allows at some future date to have employees resume movement within their salary range. Staff does not recommend this as a long term strategy but do feel it is appropriate at this time. The structured change recommended will be in January 1995 and will affect two employees at that time. Mayor Daly. Until they have approved next year's budget and discussed all the ramifications, he is recommending that they not act on the foregoing items A29-A33 at this time, but in three weeks. He is also including Item A28. MOTION: Council Member Daly moved to continue Items A28-A33 for three weeks. Council Member Feldhaus seconded the Motion. Before a vote was taken, City Manager Ruth asked Mr. Hill if on Item A28 there are any legal implications delaying a decision beyond July 1, 1994. Mr. Hill answered yes. It is necessary this evening to act on Item A28 in order to implement the provisions agreed to with the Anaheim Fire Association and Anaheim Police Association relative to changing the 2% PERS contribution from an employer paid employee-contribution to an employee paid employee contribution. It is the enabling resolution that enables staff to do that for the employees of the city. It is necessary in order to implement the provisions of the Fire Memorandum of Understanding and Police Letter of Understanding. He also confirmed it is necessary to adopt the Resolution in 333 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5200 P.M. order to implement the provisions of the other agreements which they have agreed to be effective June 17, 1994. He would recommend adopting Item A28 and/or amending it if they choose to exclude provisions other than the AFA and APA Provisions. Council Member Daly amended his motion to exclude A28 but to continue for three weeks those parts which they were not bound to do at this time by the terms of the two labor agreements with Fire and Police. Again before a vote was taken, Mr. Hill stated that he was advised by his staff that Item A28 is an action that they must take as an employer in order to identify that the City as an employer is choosing to use Section 414H2 of the Internal Revenue Code. It is necessary in order to implement the Fire and Police Agreement. It is an all or nothing situation. The employer must declare they are going to use it - the employer may later determine how they are going to use it for each employee group within the organization. Mayor Daly, after the explanation, excluded Item A28 in its entirety. A vote was then taken on the Motion by Council Member Daly which now excluded Item A28 but included the continuation of Items A29 through A33 for three weeks. Vote was taken on the Motion to continue items A29 through A33. 1532 RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-22 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS ADMINISTRATIVE MANAGEMENT. (Adjust salary structure, effective January 27, 1995.) 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-21 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS MIDDLE MANAGEMENT. (Adjust salary structure effective January 27, 1995.) 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-20 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS SUPERVISORY MANAGEMENT. (Adjust salary structure, effective January 27, 1995.) 153: RESOLUTION NO. - .... : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 92R-18 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS PROFESSIONAL MANAGEMENT. (Adjust salary structure, effective January 27, 1995.) A34. 101. Approving the FY 1993/94 write-off of uncollectible tenant accounts receivable totalling $15,477.60 for Anaheim Stadium. A35. 124. Approving the FY 1993/94 write-off of uncollectible tenant accounts receivable totalling $2,455.20 for Anaheim Convention Center. A36. 129. Approving the FY 1993/94 write-off of uncollectible miscellaneous and paramedics accounts receivable totalling $673,510.46. A37. 175. Approving the FY 1993/94 write-off of uncollectible Utility accounts totalling $1,781,316 as recommended by the Public Utilities Board at their meeting of June 2, 1994. Jeff Kirsch. He commented on the increase in write-offs again this year. He thereupon made some recommendations which he felt might mitigate the problem. 334 City Hall, Anaheim, California - COUNCIL MINUTES - J~-e 21, 1994 - 5:00 P.M. City Manager Ruth. One of the problems in collecting commercial accounts is there have been so many bankruptcies. They have done much better collecting on residential bills. A38. 177. Authorizing the Mayor to execute a letter of endorsement for an application for 100 vouchers under the FY 1994 Section 8 Rental Vouchers Set- Aside for Homeless Persons With Disabilities Program submitted by the Anaheim Housing Authority Staff. A39. 123. Approving an Agreement with the County of Orange in the amount of $81,650 for Gang Suppression Services, and authorizing the Chief of Police to execute said Agreement. A40. 137. RESOLUTION NO. 94R-107: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA (I) APPROVING A PROGRAM AGREEMENT AND AN INDENTURE OF TRUST; (II) AUTHORIZING THE EXECUTION AND DELIVERY OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT; AND (III) AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH. A41. 137: RESOLUTION NO. 94R-108: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, AUTHORIZING CERTAIN EXPENDITURES WITH RESPECT TO THE CITY'S ELECTRIC UTILITY SYSTEM TO BE REIMBURSED FROM FUTURE FINANCING. A42. 123: RESOLUTION NO. 94R-109: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AF~ENDMENT NO. 2 TO REVOLVING CREDIT AGREEMENT AND CERTAIN ACTIONS IN CONNECTION THEREWITH. A43. 130: RESOLUTION NO. 94R-110: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING ITS INTENTION TO GRANT AN EXCLUSIVE FRANCHISE TO TAORMINA INDUSTRIES, INC., FOR THE COLLECTION, HANDLING, PROCESSING, RECYCLING, TRANSPORTATION AND DISPOSAL OF SOLID WASTE WITHIN THE CITY LIMITS OF THE CITY OF ANAHEIM. Jeff Kirsch. The Council intends to grant an exclusive franchise to the City's waste hauler which seems to be in contrast with other City departments who are being faced with the alternative of privatization. In this case, the City is going in the opposite direction. City Manager Ruth. This item is scheduled for a public hearing on July 19, 1994, and there will be ample opportunity for input at that time. A44. 114. Approving minutes of the City Council meeting held May 24, 1994, and minutes of the adjourned regular meeting of May 17, 1994, held May 24, 1994. Roll Call Vote on Resolution Nos. 94R-101 throuqh 94R-110, both inclusive, for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly None None The Mayor declared Resolution Nos. 94R-101 through 94R-110, both inclusive, duly passed and adopted. 335 City Ha11~ Anaheim~ California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. Council Member Feldhaus abstained on Item Al3. continued to the meeting of July 12, 1994. END OF CONSENT CALENDAR. MOTIONS CARRIED. Items A29 through A33 A45. 105. APPOINTMENTS TO THE ANAHEIM PRIVATE INDUSTRY COUNCIL: Appointments to the Private Industry Council to fill the two listed vacancies (one member for the-private-sector - for-a term of three years, and one member for the public sector category for a term of four years.) Submitted was report dated June 21, 1994, from Marge Pritchard, JTP Manager recommending that the Council fill the subject vacancies. Council Member Feldhaus nominated Charles Kurtz. There being no further nominations, Mr. Kurtz was unanimously appointed to the Private Industry Council for three years in the private sector category. Mayor Daly. The next proposed appointment is labeled Public Sector but the individual recommended is a Chamber of Commerce person. He wants to make sure the material is current. Marge Pritchard, JTP Manager. According to the JTPA regulations, an Economic Development Agency, the Chamber of Commerce, is an appropriate Agency to be representing that particular category. Within the confines of the Legislation, the Economic Development category falls under the public sector. Mayor Daly nominated Dick Clark. There being no further nominations, Dick Clark was unanimously appointed to the Private Industry Council for a term of four years in the public sector category. A46. 106/140/000. CONTINUED 5:00 P.M. PUBLIC HEARINGS PROPOSED 1994/95 BUDGET: This a continued Public Hearing on the 1994/95 Budget. The Public Hearing was continued from the meeting of June 14, 1994 to June 21, 1994 to 2:00 P.M. and subsequently from the 2:00 P.M. hearing to 5:00 P.M. City Manager Ruth. This is a continued Public Hearing to review and adopt the City's 1994/95 Budget pursuant to City Charter Sections 1202, 1203 and 1204. The City Council has been provided the proposed Budget Document and supporting documents and information which has been available since May 10, 1994 for public inspection. The first Public Hearing on the Budget was held June 7, 1994 and continued to June 14, 1994 and subsequently continued to this date. There were some adjustments to 1994/95 Budget as follows: Due to the Public Employee Retirement System (PERS) reductions expected in 1994/95, the following budget adjustments will be recommended to account for reduced public safety PERS rates. The recommendation is to reduce Police burden accounts by $615,338 and the Fire burden accounts by $360,537. Recommend elimination of the $2,290,885, from the Convention Center, 1% Capital Reserves and replace it with $2,290,885 of PERS Surplus Money. 336 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. 3. Recommend Reserve of the balance of the PERS surplus in the General Fund Reserves. It would be appropriate at this time to consider additional public input on the budget. Rick Connor, 2017 E. Turin, Anaheim, CA, representing Orange County Congregation of Community Organizations (OCCCO). In Anaheim, OCCCO represents about 20,000-families. -They-have.reached out and listened to about 15,000 families with one-on-one home visits. Many of the Members who are present tonight remember four years ago when they asked then Mayor Hunter to develop a comprehensive plan to address gang and drug problems. Since that time, a great deal has been done to develop an effective enforcement strategy. They applaud the City for the accomplishment but believe there is an even more important part of that plan - prevention and intervention. Last night, there was a meeting attended by about 500 people in which he asked Mayor Daly to co~ent on several things the community asked for. He then outlined the requests which were previously submitted in writing geared toward the youth of the community. The City will benefit financially in the long run if the programs are implemented and at the same time show that the youth and families of Anaheim are a priority. He urged that the Council support and implement their programs to help make central Anaheim the vibrant and productive place it once was. Father John Lenihan, Pastor, Saint Bonafice Church, 120 N. Janss, Anaheim. He is present on behalf of OCCCO. He has also been on the City's Gang/Drug Task force since its inception. He is present to let the Council know that all is not well. As a personal witness over the past year, he has buried 10 young people from his church alone as a result of gang warfare, drive-by shootings or drug overdoses. The number of deaths due to gang violence has doubled each of the last two to three years. Tonight he brings a sense of urgency and concern. Many good things have been done over the past two years but he is asking that creative possibilities be explored which will involve the City Budget. Budgets are an expression of priorities. It is a matter of partnership with the community, with private industry and with the churches. There is a wonderful opportunity with the possibility of a new downtown community center and before the center is even built to have a number of programs in place which will be the most productive and result in the best use of the facility. He is making an emotional appeal for the Council to look at what is working and not working and to set as the first priority the safety, sanctity and salvation of all the families. Norma Rodriguez. She is speaking against the budget cuts in the Parks and Recreation programs. She represents a small active youth group at Saint Bonafice who are committed to living a drug-free life style. They need the help of the City and the community to provide a safe place for their youths to go. A community center would provide that. She is also interested in knowing how to let the Hispanic Community know that they too have the power to make a difference. (Portions of Mrs. Rodriguez presentation were also given in Spanish) 337 City Hallt Anaheim, Callfornia - COUNCIL MINUTES - June 21t 1994 - 5=00 P.M. Mayor Daly. The City Manager has been briefed by Staff as to the list of suggested programs for the City's youth. The list has been created by the OCCCO group and he is asking that the City Manager return to the City Council with a report, analysis and recommendation for implementing the various programs. Council Member Pickler. The Parks and Recreation budget has continually decreased. He would like to see the Council find $200,000 - $250,000 to put back into theParks and-Recreation budget and about $30,000 to the Library Department for new books. Parks and Recreation programs and Libraries keep kids off the streets. Another area of concern is relative to Senior Citizens and he would like to maintain the same level of service they have previously been getting which will cost about $25,000. Those are the areas that he would like to see restored. Jeff Kirsch, 2661 W. Palais Road. He posed questions relative to Item E - Establishing right-of-way fees for the City owned electric utility and water utility and Item J - Adopting a new fee schedule of sanitation charges and repealing Resolution No. 93R-196. Sharon Ericson, President, Anaheim Municipal Employees Association (AMEA). They are going to lose another 10 employees in the Parks Department, totaling 57 in three years while at the same time more park acreage has been added. It is turning the parks over to the drug dealer. She feels the priorities are definitely wrong. She then elaborated on all the programs there were in the Parks and Recreation Department when she came to work for the Department 20 years ago compared to what there is now. Another fact not mentioned is that part-time people in Parks and Recreation have not received any increase in pay since 1990. Instead of talk, it is time to do something about the situation. Mayor Daly then closed the Public Hearing on the 1994/95 City Budget. Mayor Daly. The Council has the City Manager's recommended budget package, a series of fee increases for various City Departments and a series of Resolutions which adopt the staff recommended fee increases for a variety of services. They have also heard from the public on three separate occasions. He asked now to hear from Council Members. First, as recommended by the City Manager, Ed Aghjayan, Public Utilities General Manager responded to Mr. Kirsch's inquiries about the right-of-way fee in terms of future impact on rates. At the conclusion of Mr. Aghjayan's presentation, City Manager Ruth confirmed for the Mayor that as proposed, the right-of-way fee would require annual review by the City Council. Council Member Feldhaus. The news received from the State is that the State is going to be coming after Cities again to extract additional revenues. An area of concern he has - last week June Lowry of the Community Services Board came before the Council with a presentation regarding Community Services funding. He does not know the figure they allocated to the Agencies for 1993. City Manager Ruth. The figure for 1994/95 is $109,000, which he believes reflects a reduction from the previous year of $23,500. Council Member Feldhaus. He asked if there is a possibility of getting the Community Services agencies funded equal to or better to the last fiscal year. 338 City Hall. Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. City Manager Ruth. He would suggest that staff include the request by Council Member Feldhaus along with the recommendations relative to Parks and Recreation, Libraries and OCCCO as part of a comprehensive package for Council consideration. It is a matter of policy direction from the Council on how they want to allocate those funds. The Community Services agencies are asking for approximately $23,000 in additional funding for this fiscal year. Council Member Feldhaus. He would like consensus from the Council to incorporate that--requestvas well. Also, on May 24, 1994, he asked questions about the Park Ranger Program and received a follow-up letter from Chris Jarvi. He (Feldhaus) feels they could use some of the Park Ranger people to provide after school recreation Monday through Friday and perhaps Saturday's until 1~00 p.m. Mr. Jarvi told him he could provide Parks and Recreation Supervisors at $4-5 an hour versus Park Rangers at $7-9 an hour and using volunteers. He would like to continue to pursue the possibility and OCCCO is also of the same mind. They need to concentrate on providing some place for kids to go after school hours. Mayor Daly. He asked the City Manager to comment on the State's Budget situation, the word being that possibly $1 million dollars will be taken away from the City. City Manager Ruth. The estimate is approximately $1 million dollars. What has been proposed in the Governor's budget is to possibly come back with further cuts to Cities of about $1.2 million dollars in vehicle license fees. It would affect Anaheim. It is a partisan issue in Sacramento and there is a good chance that proposal will not be carried out. Staff believes there is a possibility they are going to have to come back to the City and identify some source of revenue to take from the Cities to balance the State budget. Those funds will have to be taken from reserves once further cut in services of around $1 million dollars. The latest bulletin said there is only a reasonable chance of that happening. The State will not have their budget adopted by July 1. Mayor Daly. The City Manager is projecting if the City Council adopts the budget proposed that on June 30, 1995, there will be $17.8 million dollars projected as a reserve account for the City General Fund which includes PERS rebate which in the coming fiscal year would be $9 million dollars. He also asked the City Manager to comment on the ebb and flow of the City's reserves over the last couple of years as well as other questions for clarification which were answered by the City Manager. Council Member Pickler offered Items A-O - Resolution No. 94R-111 through Resolution No. 94R-125, both inclusive, for adoption. A. 106: RESOLUTION NO. 94R-111: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE ANNUAL APPROPRIATIONS LIMIT THE FISCAL YEAR 1994/95. B. 106: RESOLUTION NO. 94R-112: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-1 (SYCAMORE CANYON) ANNUAL APPROPRIATIONS LIMIT OF FOR THE FISCAL YEAR 1994/95. C. 106: RESOLUTION NO. 94R-113: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-2 (THE HIGHLANDS) ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 1994/95. 339 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5=00 P.M. D. 106: RESOLUTION NO. 94R-114: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-3 (THE SUMMIT) ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1994/95. E. 000: RESOLUTION NO. 94R-115: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING RIGHT-OF-WAY FEES FOR THE CITY-OWNED ELECTRIC UTILITY AND WATER UTILITY. F. 000: RESOLUTION-NO. ~4R-116~ A RESOLUTION OF.THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING FEES FOR PLANNING, ZONING AND LAND USE PETITIONS, PERMITS, APPROVALS AND APPEALS. G. 000: RESOLUTION NO. 94R-117: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADJUSTING DEVELOPMENT FEES ESTABLISHED PURSUANT TO CHAPTER 17.30 OF THE ANAHEIM MUNICIPAL CODE (INTERIM DEVELOPMENT FEES - ANAHEIM STADIUM BUSINESS CENTER). H. 000: RESOLUTION NO. 94R-118: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES TO BE CHARGED BY THE PUBLIC WORKS DEPARTMENT OF THE CITY OF ANAHEIM. I. 000: RESOLUTION NO. 94R-119: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADJUSTING THE AMOUNT OF THE ADDITIONAL DEVELOPMENT FEE FOR THE ANAHEIM STADIUM BUSINESS CENTER AREA. J. 000: RESOLUTION NO. 94R-120: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING A NEW FEE SCHEDULE OF SANITATION CHARGES AND REPEALING RESOLUTION NO. 93R-196. K. 140: RESOLUTION NO. 94R-121: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADJUSTING THE AMOUNT OF THE FEE FOR THE PUBLIC LIBRARIES FACILITY PLAN FOR THE EAST SANTA ANA CANYON AREA. L. 000: RESOLUTION NO. 94R-122: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING A SCHEDULE OF RATES TO BE CHARGED FOR RENTAL OF SPACE AT THE ANAHEIM CONVENTION CENTER. M. 000:. RESOLUTION NO. 94R-123: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING THE AMOUNT OF THE PARK IN-LIEU FEE AND RESCINDING RESOLUTION NO. 93R-135. N. 000: RESOLUTION NO. 94R-124~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES TO BE CHARGED FOR PARK AND RECREATION PROGRAMS AND SERVICES COMMENCING ON SEPTEMBER 1, 1994. O. 000: RESOLUTION NO. 94R-125: A 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 ANAHEIM STADIUM COMMENCING ON JULY 1, 1994. The Mayor declared Resolution Nos. 94R-111 through 94R-125, both inclusive, duly passed and adopted. Before a vote was taken, Mayor Daly stated that he would like to continue Item E for separate discussion on next Tuesday and asked the City Manager to report back on the implication of not adopting that item. 340 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. Council Member Pickler. His feeling is if they are going to adopt the budget, then they should do so. He questioned how they were going to balance the budget without the right-of-way fees, hire 22 new policemen and do the things they want to do. Council Member Simpson. He voted for the Utilities Users Tax as did Council Member Pickler. If taxes are levied, the amount should be enough to cover the needs. When they instituted the 2% Utilities Users Tax, he received a total of five phone calls. That~tax raises_S9 million dollars a year and if they ear marked a penny of that they could come closer to hiring the 50 police officers the City so desperately needs as opposed to the right-of-way tax which everybody has already said would be reviewed on a yearly basis. It is funding an ongoing program with a one-of-a-kind tax. If they want to put the Utilities Users Tax on the Agenda for discussion, he will do that but he will not vote to put it on the ballot. People are not going to vote to tax themselves. It is the job of the people elected to the Council. That is why he is going to record his "No" vote on the right-of-way fee. It is more than symbolic, it a good business decision. There are times when politics should be set aside in favor of moving the City forward in a dignified and business like manner. He would support a motion to put the Utilities Users Tax on the Agenda for discussion and at the same time bringing back the right-of-way tax. After further discussions, City Attorney White clarified for the Mayor that the Council has offered and has before it Resolutions 94R-111 through 94R-125, Items A-O. A motion was made to continue Resolution E for one week but there was no second. Subsequently, Council Member Simpson offered a motion to continue both Item E and to agendize the subject of Utilities Users Tax for next week. He has also not heard a second to that motion. Without a second to either, the Council still has before it Resolutions Items A-O as offered by Council Member Pickler. Mayor Daly. The Motions made as articulated by the City Attorney have died for lack of a second. A vote was then taken on the foregoing resolutions offered by Council Member Pickler Items A-O as listed on the Agenda. Roll Call Vote on Resolution Nos. 94R-111 through 94R-114, 94R-116 through 94R-125, both inclusive, for adoptionl AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, simpson, Pickler, Hunter, Daly None None The Mayor declared Resolution Nos. 94R-111 through 94R-114, 94R-116 through 94R-125, both inclusive, for adoption. Roll Call Vote on Resolution No. 94R-115 for adoptionl AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Pickler, Daly Simpson, Hunter None The Mayor declared Resolution No. 94R-115 duly passed and adopted. MOTION: Mayor Daly moved to adopt the 1994-1995 Budget as proposed, Council Member Pickler second the motion, motion carried unanimously. 341 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. Mayor Daly. He asked if the City Manager could return to the Council earlier regarding the Library, Parks and Recreation and other items as discussed since those items are not entirely dependent on State budget actions; City Manager Ruth stated that he would get back as soon as possible. ITEMS B1 - B14 FROM THE PLANNING COMMISSION MEETING OF JUNE 1, 1994 INFORMATION ONLY - APPEAL PERIOD ENDS JUNE 24, 1994 B1. 179: CONDITIONAL USE-PERMIT NOS. 2905, 3253, AND 3414, CATEGORICALLY EXEMPT, CLASS INITIATED BY: City of Anaheim, 200 S. Anaheim Blvd., Anaheim, CA 92805 OWNERS: So Cal Cinemas, Inc., Attn: Bruce Sanborn, 13 Corporate Plaza, Newport Beach, CA 92660; Debeikes Investment Co., Attn: Richard DeBeikes, 2300 Michelson Drive, #200, Irvine, CA 92715-1336 LOCATION: Cinemapolis - Property is approximately 5.54 acres located on the north side of La Palma Avenue and approximately 300 feet west of the centerline of Imperial Highway (5635 E. La Palma Ave.). Imperial Promenade - Property is approximately 4.4 acres located north of the northwest corner of La Palma Avenue and Imperial Highway (5645-5675 E. La Palma Ave.). Possible revocation or modification to conditions of approval of an existing movie theater complex and commercial retail center. ACTION TAKEN BY THE PLANNING COMMISSION: Conditions of approval modified for CUP NOS. 2905, 3253, and 3414 (CINEMAPOLIS RESOLUTION NO. PC94-64) and (IMPERIAL PROMENADE RESOLUTION NO. PC94-65) (6 yes votes, I absent). B2. 179: RECLASSIFICATION NO. 93-94-08 AND NEGATIVE DECLARATION: OWNER: Living Stream, Attn: Andrew Yu, 1853 W. Ball Road, Anaheim, CA 92804 LOCATION: 1301 S. Empire Street. Property is approximately 2.97 acres located on the west side of Empire Street and approximately 700 feet south of the centerline of Ball Road. For a change in zone from the RS-A-43,000 zone to the RM-3000 or a less intense zone; and to construct a 2-story, 40-unit condominium complex. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 93-94-08 GRANTED, unconditionally, to the RS-5000 .zone (PC94-66) (6 yes votes, 1 absent). Approved Negative Declaration. B3. 155: AMENDMENT TO SPECIFIC PLAN NO. 88-2, THE SUMMIT OF ANAHEIM HILLS, ENVIRONMENTAL IMPACT REPORT NO. 281: OWNER: The Baldwin Company, Attn: Ron Freeman, 16811 Hale Ave., Irvine, CA 92714 LOCATION: Property is approximately 13.67 acres located on the west side of Weir Canyon Road, approximately 1,220 feet north of the centerline of Oak Canyon Drive and further described as The Summit of Anaheim Hills Specific Plan (SP88-2) designated Park Site (Lot No. 12 of Tract No. 14071). Amendment to Exhibit No. 11 (Open Space/Recreation Plan) and to certain text of SP88-2 and the amendment of Condition Nos. 64, 65, and 77 of Resolution No. 88R-395 (adopted by Ordinance No. 4977) pertaining to the redesignation of the previously approved Neighborhood Park (to a Community Park designation) and the modification of conditions regarding the development and completion date for the proposed 13.67 acre park site. 342 City Hall~ Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended approval to City Council of the amended Specific Plan No. 88-2 Open Space/Recreation Plan (Exhibit No. 11) to indicate the park site designation change from a Neighborhood Park to a Community Park. (PC94-67) (6 yes votes, 1 absent). Approved the Previously Certified EIR NO. 281. City Clerk Soht announced.that approximately 76 letters have been received opposing the change and there are also people present who wish to speak as well as representatives from the Baldwin Company. Mark Griffith, 972 S. Silverstar Way, Anaheim, representing the neighborhood communities of Woodcrest, Park Glen Way, Vintage communities and various Summit communities of Anaheim Hills. Many residents are present tonight. Baldwin has requested the park (Toyon) be changed from a neighborhood park to a community park and that construction be delayed for three years. They do not have a concern with change in naming of the park but with a delay of construction. The park is central to their community. It is within walking distance and they have young children. A delay of three years is practically a life time for them. The delay is just a culmination of a lot of problems with Baldwin. Baldwin is shaky financially and the residents understand the reason behind their request. The residents are concerned that Baldwin will not even be around in three years. If that happens, they know there is a bond issue of $1.6 million to cover costs but if goes beyond that, the City will be responsible for picking up the rest of the cost. After explaining what the residents have been doing to protest the situation, Mr. Griffith concluded urging that the Council request a public hearing so the greater community affected will have a chance to give their input as well - East Hills, The Fairmont Project, and the other Kaufman and Broad project. None of those people know about the issue. The residents are present tonight to express their concerns. Gary Sontag. He lives in Summit Court next to where the park is being built. The bottom line is, the 92808 zip code is the only one in Anaheim paying the Mello Roos tax. He does not even know how the money is being allocated. If Baldwin is trying to back out of a park, the land is already there. It does not cost that much to build a park. It is time to make big companies live up to what they say they are going to do. Council Member Hunter requested that a public hearing be set on the Baldwin Company's request to amend Specific Plan No. 88-2 and Environmental Impact Report No. 281; Council Men%bet Simpson concurred in the setting of the matter for a Public Hearing and, therefore, the Public Hearing will be scheduled at a later date. Diana Hoard, Vice President, Baldwin Company. She is present tonight only to know the date for the public hearing. City Clerk Sohl, answering Mayor Daly, stated that the public hearing will be set for July 19, 1994; Ms. Hoard stated that was acceptable to the Baldwin Company. 343 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. B4. 179: CONDITIONAL USE PERMIT NO. 3554 AND NEGATIVE DECLARATION: OWNER: Edga Enterprises, 1990 Westwood Blvd., Los Angeles, CA 90025 AGENT: Byong Kee Kent Hong, 2801 E. Chestnut Ave., Orange, CA 92667 LOCATION: 1490 South Anaheim Boulevard (Prestigio Towers Bar and Grill). Property is approximately 0.95 acre located at the northeast corner of Cerritos Avenue and Anaheim Boulevard. Request for modification or deletion of a condition of approval pertaining to the limitation of time of an existing restaurant with on-premise sale and consumption of. alcoholicbeverages. ACTION TAKEN BY THE PLANNING COMMISSION: Denied request to modify or delete Condition No. 23 of Decision No. ZA92- 51 adopted in connection CUP NO. 3554 - which expired on March 1, 1994 (PC94-63) (5 yes votes, 1 no vote, and 1 absent). Negative Declaration previously approved. B5. 179: VARIANCE NO. 2676, CATEGORICALLY EXEMPT, CLASS 3: OWNER: Stan Hahne c/o Paul Kott, 1225 W. Lincoln Avenue, Anaheim, CA 92805 AGENT: Diego Barriga c/o Diego's Body Shop, 734 N. Anaheim Blvd., Anaheim, CA 92805 LOCATION: 734 North Anaheim Boulevard (Diego's Body Shop). Property is approximately 0.18 acre located on the east side of Anaheim Boulevard and approximately 337 feet south of the centerline of North Street. Modification or deletion of a condition of approval pertaining to the utilization of a paint spray booth in conjunction with a previously- approved auto repair and body shop. ACTION TAKEN BY TNE PLANNING COMMISSION: Approved amendments to conditions of approval of Variance No. 2676 thereby permitting a paint spray booth. (Deleted Finding No. 4 and Condition No. 4 of Resolution No. PC75-51 (PC94-69) (5 yes votes, 2 absent). B6. 179: RECLASSIFICATION NO. 93-94-10, WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT NO. 3686t TENTATIVE TRACT MAP NO. 14952 AND NEGATIVE DECLARATION: OWNER: S.C. District Council Of Carpenters, c/o Decarlo & Connor, 500 S. Virgil, 4th Floor, Los Angeles, CA 90020 AGENT: Jamboree Housing Corp., Attn: Lila Lieberthal, 17200 Jamboree Blvd.., Ste, O, Irvine, CA 92714 LOCATION: 608 W. Vermont Avenue. Property is approximately 2.78 acres located on the south side of Vermont Avenue and approximately 190 feet east of the centerline of Citron Street. To reclassify subject property from the RS-A-43,000 zone to the RM-2400 zone. To construct a 2-story, 48-unit, affordable RM-2400 condominium complex with waiver of minimum number of required covered parking spaces. TO establish a 1-lot, 48-unit condominium subdivision. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 93-94-10 GRANTED (PC94-70) (6 yes votes, 1 absent) That an un-subordinated 6ovenant shall be recorded with the Office of the Orange County Recorder agreeing to provide the buyer of each dwelling unit with written information obtained from the school district(s) pertaining to possible overcrowded conditions and busing status of the school(s) serving the dwelling unit. A copy of the covenant shall be submitted to and approved by the City Attorney prior to recordation. A copy of the recorded covenant shall be submitted to the Zoning Division. CUP NO. 3686 GRANTED (PC94-71). 344 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5=00 P.M. Approved waiver of code requirement. Tentative Tract Map No. 14952 APPROVED (6 yes votes, 1 absent) -- No Action by City Council on this Tract at their meeting of June 7, 1994, Item El0. Approved Negative Declaration. E7. 179: WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT NO. 3682 AND NEGATIVE DECLARATION: OWNER: Ken G. and Joan.-T.~ Dei, 6971-A Lincoln Avenue, Buena Park, CA 90620 AGENT= Dan Hare, L. A. Cellular, 17785 Center Court Drive North, Cerritos, CA 92701-4514 LOCATION: 2960 West Lincoln Avenue (Unit H). Property is approximately 1.2 acres located on the south side of Lincoln Avenue and the west side of Laxore Street and approximately 325 feet east of the centerline of Beach Boulevard. To permit an unmanned 1,200 square foot cellular telecommunications facility within an existing 15,300 square foot commercial retail center with one 60-foot high monopole with waiver of required screening of roof- mounted equipment. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 2682 GRANTED, IN PART (PC94-72) (6 yes votes, i absent). Waiver of code requirement DENIED because the petitioner agreed at the hearing to screen the roof mounted equipment. Approved Negative Declaration. B8. 179: WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT NO. 3684 AND NEGATIVE DECLARATION: OWNER: Aetna Life Insurance Co., Attn= Julia Viskanta, 1740 Technology Dr., Ste. 600, Attn: San Jose, CA 95110 AGENT: John Thomas c/o Ware & Malcomb Architects, 18002 Cowan, Irvine, CA 92714 LOCATION: Property consists of 2 parcels of land: 525 North Muller Street. Parcel 1: Approximately 2.06 acres located at the northwest corner of Corporate Way and Muller Street. 525 North Muller. Parcel 2: Approximately 2.28 acres located on the north side of Corporate Way and located approximately 368 feet west of the centerline of Muller Street. 1975 West Corporate Way. To permit a private business school, including off-site parking facilities with waiver of minimum number of parking spaces. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3684 GRANTED (PC94-73) (6 yes votes, i absent). Approved waiver of code requirement. Approved Negative Declaration. B9. 134: GENERAL PLAN AMENDMENT NO. 335 AND NEGATIVE DECLARATION: A City-initiated amendment to the land use Element of the Anaheim General Plan redesignating the subject area from Medium Density Residential to General Industrial. LOCATION: Subject area is irregularly-shaped and consists of approximately 3.34 acres, generally bounded on the north by Broadway, on the east by Atchison Street, on the south by the Atchison, Topeka and Santa Fe railroad right-of-way and on the west by Kroeger Street. ACTION TAKEN BY THE PLANNING COMMISSION: GPA NO. 335 GRANTED (PC94-74) (6 yes votes, i absent). Approved Negative Declaration. GPA 335 set for public hearing before City Council July 19, 1994. 345 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. B10. 134: GENERAL PLAN AMENDMENT NO. 337 AND NEGATIVE DECLARATION: A City-initiated amendment to the text of the Land Use Element of the General Plan restating and clarifying existing provisions contained in the General Plan relating to Government Code Section No. 65302, subparagraph (a) ACTION TAKEN BY THE PLANNING COMMISSION: GPA NO. 337 GRANTED (PC94-75) (6 yes votee, i absent). Approved Negative Declaration. GPA 337.set for public.hearing before-City Council July_19, 1994. Bll. 134: PLANNING COMMISSION INITIATED REQUEST TO DISCUSS INITIATING AN AMENDMENT TO THE LAND USE ELEMENT OF THE GENERAL PLANT LOCATION: 1301 South Empire Street. ACTION TAKEN BY THE PLANNING COMMISSION: WITHDRAWN. B12. 179: CONDITIONAL USE PERMIT NO. 3165 - REQUEST FOR AN EXTENSION OF TIME TO COMPLY WITH CONDITIONS OF APPROVAL: REQUESTED BY: Dwight R. Belden, 450 Newport Center Drive, Ste. 304, Newport Beach, CA 92660-7640 LOCATION: 2430 East Katella Avenue. Petitioner requests an extension of time to comply with conditions of approval for Conditional Use Permit No. 3165 (to permit a commercial retail center and "on-sale" alcoholic beverages in two proposed restaurants) to expire June 5, 1995. ACTION TAKEN BY THE PLANNING COMMISSION: Approved extension of time for CUP NO. 3165 to expir® 6/5/95. B13. 179: CONDITIONAL USE PERMIT NO. 3262 - REQUEST FOR AN EXTENSION OF TIME TO COMPLY WITH CONDITIONS OF APPROVAL: REQUESTED BY: Robert Mickelson, P.O. Box 932, Orange, CA 92666-0932 LOCATION: Property is located at the northwest corner of Weir Canyon Road and Monte Vista Road. Petitioner requests an extension of time to comply with conditions of approval for Conditional Use Permit No. 3262 (to permit a carwash facility with gasoline sales in conjunction with a commercial retail center) to expire April 23, 1995. ACTION TAKEN BY THE PLANNING COMMISSION: Approved extension of time for CUP NO. 3262 to expire 4/23/95. B14. 134: GENERAL PLAN CONFORMITY: LOCATION: 2137 and 2107 East Ball Road. Request to determine conformance with the Anaheim General Plan for the proposed lease of office space for the Orange County Health Care Agency's Woman, Infants and Children Program. ACTION TAKEN BY THE PLANNING COMMISSION: Determined to be in conformance with the General Plan. ITEM B15 FROM THE PLANNING COMMISSION M~RTING OF JUNE 13, 1994 INFORMATION ONLY - APPEAL PERIOD ENDS JUNE 23, 1994 B15. 170: REVISED SITE PLANS FOR TRACT NOS. 13513, 13514, 13515, 13516, 13517, AND 13518rTHE SUMMIT OF ANAHEIM HILLS SPECIFIC PLAN SP 88-~ (DEVELOPMENT AREA 101), ENVIRONMENTAL IMPACT REPORT NO. 281: OWNER: Baldwin Company, Attn: Ron Freeman, 16811 Hale Avenue, Irvine, CA 92714 LOCATION: Tract Nos. 13513, 13514, 13515, 13516, 13517, and 13518 (Development Area 101) of The Summit of Anaheim Hills Specific Plan 346 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. (SP88-2). Property is approximately 85.7 acres, located at the eastern terminus of Bailey Way, and being located approximately 550 feet east of the centerline of Taylor Court. Petitioner requests approval of a revision to the previously approved site plans for Tract Nos. 13513, 13514, 13515, 13516, 13517, and 13518 within The Summit of Anaheim Hills Specific Plan (SP88-2) in order to construct 155 single-family structures ranging from 3,395 to 3,911 square feet. ACTION TAKEN BY THE PLANNING COMMISSION: Approved-Revised-Site Plans_for Tract Nos..13513, 13514, 13515, 13516, 13517, and 13518 (4 yes votes, 2 no votes, i absent). EIR NO. 281 Previously Certified. END OF THE PLANNINO COMMISSION ITEMS. B16. 155: ORDINANCE NO. 5431 FOR ADOPTION: Amending Ordinance Nos. 4860 and 4861 relating to Specific Plan 87-1 to amend Subsection 18.70.060.050 of the Anaheim Municipal Code and amend Development Area 7 (The Highlands at Anaheim Hills). (Introduced at the meeting of June 14, 1994, Item Bi.) Council Member Daly offered Ordinance No. 5431 for adoption. Refer to Ordinance Book. ORDINANCE NO. 5431: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING ORDINANCE NOS. 4860 AND 4861 RELATING TO SPECIFIC PLAN 87-1 TO AMEND SUBSECTION 18.70.060.050 OF THE ANAHEIM MUNICIPAL CODE AND AMEND DEVELOPMENT AREA 7 (THE HIGHLANDS AT ANAHEIM HILLS). Roll Call Vote on Ordinance No. 5431 for adoption: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly None None The Mayor declared Ordinance No. 5431 duly passed and adopted. Council Member Daly offered Resolution No. 94R-126 for adoption, amending Development Area 7 of Specific Plan 87-1 and amending Resolution No. 87R-253 accordingly (The Highlands at Anaheim Hills). Refer to Resolution Book. RESOLUTION NO. 94R-126: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING DEVELOPMENT AREA 7 OF SPECIFIC PLAN 87-1 AND AMENDING RESOLUTION NO. 87R-253 ACCORDINGLY (THE HIGHLANDS AT ANAHEIM HILLS). Roll Call Vote on Resolution No. 94R-126 for adoption~ AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly None None The Mayor declared Resolution No. 94R-126 duly passed and adopted. Cl. 173: COMMERCIAL AIRPORT AT EL TORO: Discussion requested by Council Member Pickler at the meeting of May 24, 1994, following the E1 Toro Reuse workshop, regarding the support of an initiative being circulated for a commercial airport at E1 Toro. This matter was continued from the meeting of June 7, 1994 to this date. 347 City Ballt Anaheim, California - COUNCIL MINUTES - June 21t 1994 - 5:00 P.M. Council Member Pickler. Today the County Board of Supervisors approved of the measure going on the November ballot. What is important is that now all the issues pro and con will be presented so that everyone will be fully informed. It is a big economic development that will help the County of Orange and the City of Anaheim. The Council has already passed a Resolution supporting the initiative. It is an extremely important issue for the future of the area. No further action was necessary at this time. C2. 135: PRI~ATE-SECTOR PROPOSALS TO OPERATE THE CITY GOLF COURSES: To consider the recommendation to reject all proposals submitted in response to the Request for Proposals for private operation of the City's golf courses, and continue to self-operate the golf courses with the intent to maximize net revenues. This matter was continued from the meeting of June 7, 1994, where extensive discussion took place and input received. (See minutes for that date) City Manager Ruth. Since the last time the City Council discussed this matter, staff met with the Budget Advisory Commission (BAC), discussed the proposal and evaluated it and on that basis recommended against privatization. The Chamber of Commerce voted 11 to 10 to privatize. Staff has prepared a response to the American Golf Letter which was addressed to the City Council which contains some misinformation. Staff will give a brief recap and summarize its findings. Several requests have also been received from the public to speak. Chris Jarvi, Director of Parks and Recreation, Community Services and Golf. On June 7, 1994, staff presented the results of a six month study on possible privatization of the City's golf courses. The purpose tonight is not to repeat that presentation but provide a brief recap for those who were not present at the last meeting. He then briefed the information presented at the meeting of June 7, 1994, also contained in report entitled "City of Anaheim, Golf Course Privatization Report," May, 1994 previously made a part of the record. In the final analysis, what the City Council must consider is the tradeoff between privatization and self operation. If there is no economic advantage, what the City will be doing is trading guaranteed minimum revenue for 20 years. To summarize, the City does not see a good business reason on returnof.investment to privatize the golf courses. The department has recommended privatization where it made sense before and will continue to do so in the future. Trading a minimum guarantee for most of the future earning potential of the courses for 20 years seems inadvisable. Staff recommends that all proposals be rejected in favor of self-operation and that staff be instructed to cut the golf budget by an amount commensurate with the slight economic advantage demonstrated by the privatization study. Mayor Daly. Me again opened the issue up to public input. The following people spoke, either in opposition or in favor of privatization of the City's courses and their comments summarized: Carolyn Walters, 154 Jerrilee Lane, Anaheim. She is not a City employee or a golfer. She does not want the courses privatized or for people to lose their jobs. Joe Guerro, employee of American Golf. American Golf faxed a letter to the City Council this afternoon with a copy to the City Manager Ruth requesting an opportunity to make a presentation today. (See letter dated June 21, 1994). Mr. Guerro then gave an extensive and detailed presentation supplemented by 348 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. slides, hard copies of which were submitted to the Council (made a part of the record). The presentation covered the following - Total Net Revenue - Consultant Forecast Compared to American Golf Guaranteed Rent, Total Net Revenue - Historical Compared to American Golf Guaranteed Rent, City of Anaheim - Rounds Assumptions, City of Anaheim - Revenue Assumptions, City of Anaheim - Expense Assumptions, American Golf Company (AGC) Assumption, Consultant Projections, One Percent Sensitivity Test, Net Revenue (Revenue Less Expenses), American Golf Value Added Services, and Net Revenue to City Comparison_(Combined.Anaheim Hills.and Dad Miller). Inconcluding his presentation, Mr. Guerro stated that American Golf delivers high quality and high service. They have never reneged on a promise. Relative to the employees, American Golf has been doing this for a long time and they will be happy and pleased to assimilate each and every employee. In the proposal they prepared, it was mandated that they offer each employee a job of comparable status. They have built their business on assimilating high quality employees. Statistically, they tend to assimilate about 70% of the employees they bring into their organization. They offer advancement, relocation and many things they would not find with the City. He asked the City Council to consider their proposal in the context of his presentation and the facts - i.e., American Golf is guaranteeing $1.56 million in rent, $2.15 million in capital improvements, setting aside an additional $360,000 of capital each year to refurbish the Golf Courses, guaranteeing the service in quality standards the City wants to see, and offering a job to each and every employee that is currently working - all in writing and guaranteed against some assumptions which are very aggressive. Dave Stewart, 204 Ball Road, Anaheim. He gave reasons why he believes privatization of the golf courses will be beneficial to the City, specifically that the additional revenue could be spent for police, streets, parks, etc. Carol Gerenson, 3201 Old Bridge Road. She is one voice representing hundreds. Given one week's notice, she can fill the room with those who are not for privatization primarily because they have seen what has happened to courses that have been privatized. She then gave her reasons for opposing privatization of the courses. Bill Storey, 3936 Roxbury Drive, Hemet. He was raised in Orange County. One of the great things about Anaheim is its leadership and dedicated employees as well as its valuable financial and recreational resources such as the Anaheim Hills and Dad Miller Golf Courses. He urged the Council not to privatize the courses. George Anderson, 2643 Lullaby Lane, Anaheim. He has belonged to a golf group in Long Beach since 1964 and it wasn't until American Golf took over the maintenance of the course in the early 1980's that the course was improved. They are a very professional, qualified organization for maintaining the golf courses. Shirley McCracken, Chairman, Budget Advisory Commission (BAC), a Council appointed Advisory Commission. The 10 Members of the Commission reviewed the privatization report submitted. The Commission has been very much in favor of privatization where it is to the advantage of the City and its citizens but this time the BAC recommends the retention of management of the City's golf courses by the City and further recommends that the Council adopt the philosophy of operation of the courses as to maximize the return on investment. Staff has never been directed to make the courses profit-making ventures but to provide recreational services at a reasonable cost. That is a totally different focus. If additional money is to be made, in this year, the 349 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5~00 P.M. golf courses under the direction of Parks and Recreation brought in $1.5 million without a direction to be major profit making but because they tried to bring money into their budget to fund some of the other activities in Parks and Recreation. Therefore, additional money, if it is to made, ought to be made by the City and it must be there to be made or no outside organization would want the golf courses. American Golf would be coming in and taking a top notch product and will still be making money. She urged the Council to remember when they vote, privatize where privatization is economically advantageous.to-Anaheim, but retain City management of a facility when it provides profit. If private companies can make a profit, so can a properly directed golf management team. Chris Davis, 302 S. Broder, Anaheim. If the City can save money and work towards making the parks and libraries better, then the courses should be privatized. Ed Klein, Chairman, Golf Commission. He believes the City could gain considerably more in financial return with proper management over the long haul if the courses were kept under the management of Parks and Recreation. The presentation just given by American Golf had some information that is different. He would like to see it clarified before making any decision. Steve Cohodes, 7878 E. Greenview, Anaheim. He asked to make a presentation which included three slides, also submitted in hard copy (made a part of the record). He briefed each of the documents in detail. (See documents headed, City of Anaheim - In Support of the Parks, Recreation and Community Services Department's Recommendation Not to Privatize the City's Golf Courses - Dad Miller Revised Gross Revenue Calculation - Anaheim Hills Revised Gross Revenue Calculation - Net Revenue To City - First 5 years - Combined Anaheim Hills and Dad Miller). Mr. Cohodes figures showed the annual advantage of self- operation over a 5 year period to be $2.5 million dollars based on his calculations. He also clarified for the Mayor that the bottom line of his presentation is that it does not pay to turn the parks (courses) over to American Golf. Since Parks and Recreation never had a mandate to run the courses as a business, he recommended that they give them that mandate - give then two years to run the course as a business, bring in a Golf Consultant on a part-time basis, spend up to $50,000 to have that individual run the parks and provide some innovations and come back and re-visit the issue to see how Mr. Jarvi's department has done. Brad White, 7968 Alteer Lane, Anaheim. He is in support of privatizatlon and he was two weeks ago when he spoke. If American Golf can save the City money, it is very important to look at all the issues and not just the people it affects. Daniel Forboda, 1112 W. Broadway, Apt. $5, Anaheim. He is in support of privatization which shows the City can turn a profit with a guarantee. Steve Shure, 3562 W. Stonepine Lane, Anaheim. He has been associated with American Golf having served on the Board of Directors of the golf course in Long Beach. They are a professional organization. He suggested that they look at what will be the best situation financially, not just for the golf courses but for the overall budget of the City. If American Golf is going to generate additional money for the City and for the programs, it is important to have that money to pay for the services needed. 35O City Ha11~ Anaheim~ California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. Frank Hirohara, 601 N. Dwyer Drive, Anaheim. Mr. Guerro from American Golf stated that he faxed some material to the City just today. He feels it would have been better if they brought the document to the City to discuss it with Staff. It is a poor practice to fax important materials since it may never arrive. He also questioned where American Golf was going to get $1.6 million dollars. Every time he plays at the Fullerton Course which is run by American Golf, he finds it is not in good shape. It does not compare to Anaheim's courses. He suggested that Council keep the City courses and run them like a business. Jeff Kirsch. He referred to the presentation and some of the figures given by American Golf and also by Mr. Cohodes. The latter showed that in just five years the $2.4 million would be paid back and the rest of the 20 years is a benefit to American Golf because they will have gotten their investment back. He feels the City could do the same thing itself. Based on what he has heard from City staff, they indicate there was a lot of unrealized potential. Instead of being scared of the downside and going for the safety of a guarantee, it is necessary to see what the upside is and how realistic that is. Jim Riley, 55 Tumbleweed Road, Anaheim. He is a member of the City's Golf Course,Advisory Commission. He is speaking on his own behalf. Golf is a major business and as Mr. Jarvi said, it is alive and well in Anaheim. American Golf is a good organization but they are not in business for the fun of it. They realize down stream there are big dollars to be made. Those big dollars should be made by the City and remain in the control of the City Council. He asked that they seriously consider whether or not it is feasible to turn over fiscal control of a $110 million dollar operation. He believes the City needs to keep the courses. Gina Beitler, Member, Budget Advisory Commission. The courses do not belong to the Council Members alone but to the City's citizens. She then expressed concern over the latitude given to American Golf. She would not want to do business with people who are already causing trouble and have not even been awarded the contract. The Council should determine whether they want to be "fighting" with American Golf over the next 20 years. Paul. Bostwick, 1411 S. Anaheim Blvd., Anaheim. He suggested that when staff puts together the entire report that they include the actual proposal by American Golf rather than just the analysis. Everything is now contracted out except for the maintenance of the courses. He feels that staff "sandbagged" the report and refer to certain specifics in the report. He appealed to the Council to privatize the courses. Marilyn Hauck, AMEA. She outlined first the advantages of privatization and then the negatives. She questioned if there are great big profits to be made from Golf, why use it to line the pockets of private operators. She also did a salary comparison be%ween a grounds keeper working ~o~ Anaheim and a comparable position for American Golf and gave the results of her findings. There is a basic difference of philosophy - Anaheim pays for professional grounds keepers - American Golf pays for laborers. Labor is a very precious thing and any time labor is combined with love, there is a merger. It is called hard work and the Anaheim Way. Willie Stewart, 600 N. Diamond Bar Blvd., Diamond Bar. He represents Local 47 of the IBEW. He is present to urge the Council to endorse staff's recommendation. Local 47 is opposed to the process the City refers to as privatization. They are not opposed to private industry. They are opposed to 351 City Hall, Anaheim, California - COUNCIL MINUTES - June 21t 1994 - 5:00 P.M. the Anaheim process of privatization because of what it does to the people who are involved - that an employee who is doing a good job can still have their job sold. Loretta Sanchez, 1308 N. Paradise Court, Anaheim. (Also see minutes of June 7, 1994 where Ms. Sanchez gave input). The issue for her is should government be in the business of running golf courses. It is not an issue of privatization. Contracting out means that it is possible for the City to own the Golf Courses and-bringksomebody.in who may be more efficient in running the courses for the City. As a professional, she then gave her calculation of the return to the City having read the report submitted. She asked if the priority of the Council was to take care of the citizenry in the neighborhoods or the jobs of the few. Sharon Ericson, President, AMEA, representing the golf maintenance workers. The City's Golf Operation has a Policy and Procedures Manual. The goals and directions for the golf courses are currently outlined in that manual. She then briefed some of the points that are mandated in the policies and procedures concluding that the Golf Courses have not only met but consistently exceeded the goals set forth. The goals and directions from all previous Councils has always been for the courses to deliver the highest quality at the lowest price. The Council is now asking that the courses produce the most possible profit to the City which is an entirely different approach. It is only fair that the proven crews be given the opportunity to show what they can do under the Council's new rules. They exceeded every possible standard and now the Council wants to change the personnel when all they need to do is change instructions. The only fiscally sound and morally responsible decision the Council can make tonight is to validate excellence and vote to continue with the finest municipal golf operation anywhere. The five council members should not make the decision. If they are so concerned about the big profit that American Golf says they can give, why not put it to a vote of the people. She has been before the Council many times and begged the Council not to privatize certain functions. She can not remember when she has seen staff come forward encouraging not to privatize certain things. Why is staff doing so now. She believes they are doing so because they believe in the current operation and the way it works. Dick Clark, President, Anaheim Chamber of Commerce. He first recapped the figures given by American Golf and noted their 30 years experience and what they can do for the City. In concluding, he stated the Chamber of Commerce recommends that the Council direct staff to negotiate a contract to privatize the City's golf courses. Mariam Kaywood (former City Council Member). The golf course operation and maintenance was just turned over to the Parks Department and they have already turned a profit. It is incumbent upon the Council to give them a chance to maximize revenues. There are 235 acres at the Anaheim Hills Golf Course and 180 at Dad Miller or over 400 acres of beautiful open space in the City. They are a tremendous visual amenity to Anaheim. If they are brown or yellow they will be noticed quickly. Thousand of residents bought their homes in the Anaheim Hills area mainly for the beauty of the Golf Course. Staff's recon~nendation is a very good one and it is in the best interest of the entire City. There is no reason why they cannot give them a try and a few years down the road look again. If the City goes to a 20-year agreement with an outside company and it does not work, it is not that easy to get "off the hook". They are the stewards of the land. The risk to the City is just too great. She would hope that the Council will make the right decision in the best interest of Anaheim. 352 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. Jeff Farano, 2100 S. State College Blvd., Anaheim, business owner in Anaheim and president elect of the Chamber of Commerce. The City has an opportunity to let the private sector provide golf service and partnership with the City. It should not be the function of a municipality to use tax dollars to be in competition with the private sector. It also should not be the purpose of the City to operate a profit-oriented business. For the City, a good business decision would be to operate the golf courses with a maximum return and minimum risk of tax payer money. A good business decision for the City would be to allow the private.sector to use its own funds for capital improvement of the golf courses freeing up the $2.5 million of the golf reserve fund for the basic services the City needs. Mayor Daly then posed questions/concerns to staff and the consultant relative to the projections of annual additional revenues over a 20 year period. Extensive discussion and input followed wherein Mr. Krekorian of ERA Consultants explained the main factors involved in the complex process of re- analyzing the proposals as well as answering additional questions posed by Mayor Daly especially relating to the assumptions the City Council relied on through ERA in conjunction with City staff that changed dramatically after the proposals came in wherein he (Daly) countered four or five assumptions that changed.from the original and then the most recent analysis. He was especially concerned over what he termed as an administrative oversight with the original assumption of $100,000 annually to oversee the private contract doubled to $200,000 a year. He reiterated his concern that in trying to obtain reliable numbers on which to base a decision, that an assumption which is incorrect by 1% or 2% over the life of the contract could mean tens of millions of dollars. He emphasized the need to have much more reliable numbers then they now have. He expressed it was troubling to him that the Consultant to the City has put the Council in the position of not having what he considers reliable numbers on which to make a decision. Additional input was then given by Mr. Krekorian in answer to Mayor Daly's concerns as well as input by Council members. Council Member Simpson. He agreed that there was a lot of misunderstanding about the numbers and was of the opinion that there are a lot of well intentioned people giving numbers totally "off the wall" because so many numbers have been talked about and at this point no one knows the right set, he would entertain getting a set of numbers that are reliable but is not certain at this point how to accomplish that. Council Member Hunter. A 65% (American Golf) - 35% (City) operation is what concerns him. He used as an analogy his successful law practice and if he were to sell it and walk away with 0nly 35% how ridiculous that would be. The City owns two parks (Golf Courses) and flood control areas that they made into Golf Courses. The City owns the business - he questioned why they would even consider giving up the cash register or give up public control of Anaheim park land. Further, another point that has not been bought up is the threat of protracted expensive litigation which is hardly a comforting option if the situation did not work out, an example being the just concluded years of litigation with the Angels. Mrs. Kaywood suggested looking at maximizing the potential of the courses - the Council still needs to give staff policy direction to maximize profits vs. the goals and directions now mandated as outlined in the Policies and Procedures Manual for the courses as explained by Sharon Ericson. He recommends giving staff a couple of years and along with the direction to match the proforma that American Golf came in with. The taxpayers own the courses and not the Council. 353 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5500 P.M. Mayor Daly. He reiterated it is necessary to have reliable numbers in order to make a decision. If staff was uncomfortable with 20 years, they should not have proposed it that way. What he is going to suggest is to ask the City Manager to bring the Council credible numbers that can be vouched for by a Big 8 accounting firm - confirm that the assumptions are real, valid, work in other cities, that the overhead numbers are real, etc. Until they have reliable numbers on a twenty year investment whether to continue the current operation or to lease to a private company, he does not think the citizens of Anaheim can £ully-understand the implications. Mayor Daly started to put forth a motion to direct the City Manager to re- evaluate the numbers given but before any further action was taken, Council Member Hunter stated one of the issues is if they are going to get proper numbers and as Mrs. Kaywood and others stated, the Council should direct staff to maximize the Golf courses - are the courses going to be run more for the park aesthetic and have iow green fees as directed by the Mission Statement, allow high school golf tournaments or other golf tournaments, etc. To have a mirror image is to tell staff to maximize the profits. If they do not tell staff to do that, the numbers will still be different. Council Member Feldhaus. He agreed with Council Member Hunter relative to direction to staff. There was additional discussion wherein Council Member Pickler posed questions to staff relative to Golf days devoted to charity or used by high school students, etc. At the conclusion of which Council Member Pickler stated he would also like an analysis that the Council can be comfortable with taking all such factors into consideration. Mayor Daly asked how soon the City Manager would expect to bring the Council credible numbers by a firm such as Price Waterhouse or Kevin Leventhal; City Manager Ruth. It will be at least 30 days. Staff will try to find someone who has had similar experience in municipal operations. They will make those contacts and expedite the matter as quickly as possible. Joe Guerro, American Golf. He asked if they are going to freeze the current proposals and if not, and the Council is going to vote to come to a common view of reality on the numbers, American Golf would like to have some input. Mayor Daly. He asked that American Golf put whatever thoughts and suggestions they have in writing and send it to the City Manager. Mayor Daly reiterated the direction given clarifying his motion as follows: Council Member Daly moved that Mr. Ruth retain an independent objective consultant - a Big 8 firm such as Price Waterhouse - to produce credible numbers and a credible analysis with realistic projections and all factors included in as concise an approach as possible, most importantly a direct cost-benefit analysis. Council Member Pickler second the motion before a vote was taken, Council Member Hunter included that it be based upon telling staff to maximize the profits; Council Member Daly agreed that should be part of the motion. MOTION: Mayor Daly moved to direct the City Manager to retain an independent, objective consulting firm to produce credible numbers and analysis and realistic projections with all factors included in as concise approach as possible and also based upon directing staff to maximize profits for the 354 City Hallt Anaheimt California -.COUNCIL MINUTES - June 21, 1994 - S:00 P.M. courses. To be submitted to Council within 30 - 45 days. Council Member Pickler seconded the motion. A vote was then taken on the foregoing motion and carried unanimously. RECESS: By General Council Consent, the Council recessed for 10 minutes (10:25 p.m.). AFTER RECESS:-.. The.Mayor call the.meeting to order, all Council Members being present. (10:40 p.m.) D1. 179: PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 3672 AND NEGATIVE DECLARATION: OWNER: Canyon Plaza Shopping Center, James E. DoBrott, General Partner, 3146 Redhill Ave., Ste. #150, Costa Mesa, CA 92626 AGENT: Essex Realty Management, 3146 Redhill Ave., Ste. 150, Costa Mesa, CA 92626 LOCATION: 5717 East Santa Ana Canyon Road. Property is approximately 8.06 acres located at the northeast corner of Santa Ana Canyon Road and Imperial Highway (Foxfire Restaurant). To permit a public dance hall in conjunction with an existing full service restaurant with on-premise sale and consumption of alcoholic beverages. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3672 GRANTED FOR ONE YEAR (to expire 5/2/95) (PC94-52) (6 yes votes, i absent). Approved Negative Declaration. Letter of appeal submitted by the Foxfire Restaurant. Informational item at the City Council meeting of May 24, 1994, Item B4. HEARING SET ON: A letter of appeal was submitted by the Foxfire Restaurant dated May 23, 1994, appealing the decision of the Planning Commission relative to certain conditions. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin - June 9, 1994 Mailed to property owners within 300 feet - June 2, 1994 Posted of property - June 3, 1994 Joel Fick, Planning Director. The applicant appealed the decision of the Planning Commission and requested four conditions be adjusted which were not discussed at the Planning Commission Meeting. Staff has had meetings and discussions with the applicant and can recommend revised wording that will satisfy both the needs of the City and the applicant. The first relates to food service. Condition 2.A. previously read, "Food service with an available meal shall be available until closing time on every day of operation." Staff would suggest it be revised, "that available meals shall be available from opening of the establishment until at least 10 p.m. on every day of operation." The second pertains to signage. On the existing sign advertising cocktails on the outside of the building, staff would recommend that it read, "That there should be no additional exterior advertising . . with an added sentence that says the existing sign with an added sentence that says, "The existing sign specifying cocktails shall be permitted to remain." There were two other conditions, I & K originally referenced in the letter from Foxfire Restaurant (see letter dated June 17, 1994) requesting modification and the applicant has now indicated those are acceptable as is. Staff would recommend those two amendments and the two remaining conditions, I & K, remain as is. 355 City Hall, Anaheim, California - COUNCIL MINUTES - June 21, 1994 - 5:00 P.M. Mayor Daly asked if it is still staff's recommendation for a one year review on the CUP; Joel Fick. He answered that was correct. The Planning Commission also established additional conditions that provide for monitoring of the establishment. He also clarified for the Mayor that the existing sign on the outside says Dining and Cocktails or Restaurant and Cocktails. Staff recommends that be allowed to remain. Mayor Daly opened the Public Hearing and asked to hear from anyone who wished to speak either-~n favor or. in opposition. Philip Anthony representing the applicant. They agree exactly with what Mr. Fick stated. They appreciated the cooperation of the Planning Commission and staff. There being no further persons who wished to speak, Mayor Daly closed the Public Hearing. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Council Member Pickler, seconded by Council Member Simpson, the City Council approved the negative declaration upon finding that it has considered the negative declaration together with any comments received during the public review process, and further finding on the basis of the initial study and any con~nents received that there is no substantial evidence that the project will have a significant effect on the environment. MOTION CARRIED. Council Member Pickler offered Resolution No. 94R-127 for adoption, granting Conditional Use Permit No. 3672 subject to the amendment of the two conditions as articulated by the Planning Director and as agreed to by the applicant. Refer to Resolution Book. RESOLUTION NO. 94R-127: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 3672. Roll Call Vote on Resolution No. 94R-127 for adoption: AYES: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly NOES: COUNCIL MEMBERS: None ABSENT:. COUNCIL MEMBERS: None The Mayor declared Resolution No. 94R-127 duly passed and adopted. ADJOURNMENT: By general Council consensus the City Council adjourned (10:48 p.m.) LEONORA N. SOHL, CITY CLERK 356