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1993/02/09City Hall. ~naheim, CalifoL, m~a - COUNCIL MINUTES - FBBRU~Y 9~ 1993 - 5500 PRESENTs ABSENT: PRESENT: The City Council of the City of Anaheim met in adjourned regular session. COUNCIL MEMBERS: Feldhaus, Pickler, Simpson, Daly COUNCIL MEMBERS: Hunter CITY MANAGER: James Ruth CITY ATTORNEY: Jack White ASSISTANT CITY CLERK: Ann M. Sauvageau UTILITIES GENERAL MANAGER: Edward Aghjayan UTILITIES FINANCIAL SERVICES MANAGER: Michael Bell Mayor Daly called the adjourned regular meeting, workshop session of February 2, 1993 (held February 9, 1993) to order at 2:07 p.m., all Council Members being present with the exception of Council Member Hunter. City Manager James Ruth. This is the appointed time for a workshop presentation on proposed electric and water rate increases as proposed by the Public Utilities Board (PUB). The Public Utilities General Manager, Ed Aghjayan and his staff are present to make the presentation. 175: PUBLIC UTILITY RATES, RULES AND REGULATIONS - PROPOSED INCREASES: Mr. Ed Aghjayan, Public Utilities General Manager. He asked Mr. Mike Bell, Financial Services Manager, Public Utilities, to give a presentation which will attempt to answer most of the questions asked last week at the Council meeting of February 2, 1993 (see minutes that date). ELECTRIC RATES: Mr. Mike Bell, Financial Services Manager. First on the electric side, he is going to show about a dozen slides covering some of the issues that came up last week in order to present a clear and concise report on the proposal before the City Council. The presentation/slides dealt with Rate Terminology, Electric Revenue Requirement (Underground Conversion Program and San Juan Unit 4), Electric Cost Cutting Measures, Electric Cost of Service (COS), etc. Each of the major topics was broken down into subcategories and Mr. Bell's presentation briefed each in detail. During the extensive presentation, Council Members posed questions especially relative to the Cost of Service Study, how often it is performed, what it consists of, percentage of costs that are power supply costs, how the various rates amongst the different classes (residential, commercial, industrial) are structured, etc. Both Mr. Bell and Mr. Aghjayan answered the questions posed. It was emphasized by both that cost of service is a road map and not an exact amount - that the explanation is simply showing what cost of service is but with the caveat that it is not an exact science. If they were to follow a strict cost-of-service methodology, they would be recommending that residential rates increase 7.7%, commercial 11.7% and that £ndustr£al rates Be reduced by 8%. Mr. Bell explained for Council Member Feldhaus that cost of service numbers are produced by a combination of staff and consultants hired from time to time to review the process and make recommendations for changes. They.do seek outside validation and outside resources. Mr. Aghjayan stated it is not an auditable issue because it is not a science or an exact number. If there were ten different firms doing ten different cost-of-service studies, they would end up with ten different results. They follow the California Public Utilities Commission standards but the Commission themselves would say it is an art and not a science. Whoever does the study, he does not believe it would show major distortions. 96 City Hall, Anaheim, California - COUNCIL MINUTES - FEBRUARY 9, 1993 - 5:00 P.M. Before concluding the electric rate portion, Mr. Bell again reiterated that they are in the process of moving more to marginal costing. Marginal cost studies have been used increasingly within the industry as an attempt to meter and calculate costs based upon the time of use. Until recent years, they have not had the type of metering equipment on their system to enable them to collect that kind of data. It has only been the last 3 or 4 years they have been collecting the information that makes that kind of study available to them. They attempted to meter each individual class of customers to find out exactly when they are using electricity and how much they are using. If one class is contributing to the system peak more than another class, that class will wind up being allocated a greater share of the cost. It is a trend in the entire industry. Mayor Daly noted that there were people in the Chamber audience who wished to speak. He asked the advice of the City Attorney. City Attorney White. He does not have any problem with taking public input but it needs to be clear that the purpose of today's discussion is a workshop and none of the comments that are received or made are part of the rate making hearing held at the Public Utilities Board (meeting held January 21, 1993 and verbatim transcript produced - made a part of the record). He does not believe they should deviate from their normal pattern - that if there are questions, those should be directed through the chair rather than directly cross examining staff. The following people then spoke regarding electric rates expressing concern over the proposed increases, some making recommendations and most posing questions which were subsequently answered by staff: Ben Bay, 2148 W. Grayson, Anaheim Jeff Kirsch, 2661 W. Palais, Anaheim Doctor William Kott, 522 Dryer Drive, Anaheim Roland Krueger, 561 Peralta Hills Drive, Anaheim Oscar Picasso, 1607 S. Michel Drive, Anaheim (Jeffrey Lynne Area) Mr. Picasso's concern was that when electrical rates are increased, trash rates also seem to increase; Mr. Aghjayan explained that one had nothing to do with the other. In answering one of the questions, why does Public Utilities need 4 million dollars more, Mr. Aghjayan answered, this figure would have been much higher if it were not for department budget cuts. The department has led the way with respect to reducing its budget. The number without the cuts would have been 9 million dollars. There are three major impacts - first, undergrounding of 2 million dollars; secondly, starting up the San Juan project where they will be taking a loss for a year until it is a totally integrated project and, third - this year will be the first year they will not be getting credits for the Intermountain Power Project. Those are the three major factors that make up the 4 million dollars. He confirmed for Council Member Simpson if they did not elect to fund undergrounding this year, then all that would be needed is 2 million dollars. Discussion then followed between Mr. Aghjayan and Council Members regarding the undergrounding program which had previously been approved by the Council (see minutes of December 8, 1992 where the Council last approved the Five-Year Electric Underground Conversion program). The questibn of assessment districts had been broached at the outset before he joined the City. The option was discussed, but the Council elected instead to have an additional 97 C£tv Hall~ Anahe£m~ Cal£forn£a - COUNCIL NINUTE$ - FEBRUARY 9~ 1993 - 5~00 P.N. amount built into the rate structure. He further confirmed that they started at one-half of 1% for undergrounding, the second year 1% and this year going from 1% to 2%. That is the additional 1%. Next year it will go from 2% to 3% and the next year from 3% to 4%. When it gets to 4%, it is established at 4% and does not go up. If they do not raise the present 1% to 2%, they will not be able to accomplish the plan that was approved - a 45 million dollar five-year plan based upon the acceleration of those percentages. It would depend on how much the Council took out as to what projects would be eliminated. It would have a dramatic effect. WATER RATES~ Mike Bell, Utilities Financial Services Manager. His presentation consisted of slides using the same categories as the electric rate presentation except pertaining to water, i.e., Water Revenue Requirement, Cost Cutting Measures, Water Cost of Service, Water Rate Design, etc. The request is for 1.3 million dollars in additional water revenues. The Orange County Water District rate increase on January 1, 1993 represents approximately one-third of the 1.3 million along with the addition of Well No. 47 - the remainder being the start of rehabilitation of the Lenain Plant, maintenance and replacement of plastic services within the Utilities Operations. He then focused on cost of service versus proposed rates and gave an extensive presentation on that aspect during which he answered questions posed by Council Members. The following people then spoke and posed questions relative to the proposed water rate increase expressing their concern and also in some cases making recommendations: Ben Bay, 2148 W. Grayson, Anaheim Jeff Kirsch, 2661 W. Palais, Anaheim Doctor William Kott, 522 Dryer Drive, Anaheim Roland Krueger, 561 Peralta Hills Drive, Anaheim At the conclusion of public input, Mr. Bell and Aghjayan answered questions posed both by the citizens and Council Members which involved a further explanation of how the rates are structured between the various classes (residential, commercial, industrial). Mr. Aghjayan also explained that the proposal recommended is the best shot they had trying to head in the right direction in terms of the way it is spread. Their concern was if they went faster, it would have a dramatic impact and they are trying to cushion the impact of significant increases that will be forthcoming due to major causes which he explained. Mike Bell. There is a proposed 20% increase in the Metropolitan Water District rates effective July 1, 1993. It is not related to the drought or any conditions associated with the drought but the beginning of a 6 billion dollar capital program to ensure the future water supply to Southern California since they are losing other resources. Ed Aghjayan. Compared to the Metropolitan Water District, the City is better off having its own treatment plan. MWD is going to have to revamp their treatment plans as well due to Federal regulations. The outIook in terms of' electric is much more favorable than water. There is nothing but bad news with respect to what the future holds regarding water rate increases. They disagree with the unnecessary portion of environmental standards mandated increasing water quality. They are looking at double digit total increases annually in the area of water. On July 1, 1993 they will be coming back with a water cost adjustment of about 6% or 7%. He also confirmed for Council 98¸ City Hall~ Anaheim~ California - COUNCIL NINUTES - FEBRUARY 9~ 1993 - 5~00 P.M. Member Simpson that part of MWD's 6 billion dollar capital project is to build water storage facilities. Before concluding, Mr. Bay again asked to speak and offered a suggestion that the Utilities take a very serious look at undergrounding and the methods devised to do it. He has felt all along that it was not fair to be charging everybody in the City an across-the-board percentage to pay for undergrounding particularly people where utilities were already undergrounded when they bought their house and in the whole Anaheim Hills area. Those people are now being double taxed to pay for undergrounding. There is no question about aesthetics in the Commercial Recreation area and that the payback will be there. An assessment district should have been set up for the C-R area and other areas where undergrounding will really pay off. The priorities for undergrounding should be set up where the payoff is. Mayor Daly thanked staff for the presentation as well as members of the Public Utilities Board who attended the workshop (McMillan, Stanton, White). ADJOURNMENT= By General Consent the adjourned regular meeting of February 2, 1993, held February 9, 1993, was adjourned. (4:05 p.m.) ANN M. SAUVAGEAU, ASSISTANT CITY CLERK 99 C£t¥ Hall~ Anahe£m~ California - COUNCIL ~INUTES - February 9~ 1993 - 5~00 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, 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 UTILITIES FINANCIAL SERVICES MANAGER: Michael Bell CODE ENFORCEMENT MANAGER: John Poole PLANNING DIRECTOR: Joel Fick ZONING ADMINISTRATORs Annika Santalahti SENIOR CODE ENFORCEMENT OFFICER: Don Yourstone VICE SERGEANT: Harold Mittmann POLICE OFFICER: Donald Liparri A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 4:00 p.m. on February 5, 1993 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the meeting to order at 4:07 p.m. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session to consider the following items and noted that there are three additional items to be considered (f and g): a. To confer with its attorney regarding pending litigation pursuant to Government Code Section 54956.9(a) to wit: Golden West Baseball Co. vs. City of Anaheim, Orange County Superior Court Case No. 40-92-46; Anaheim Stadium Associates vs. City of Anaheim, et. al., Orange County Superio~ Court Case No. 44-81-74. b. To meet with and give directions to its authorized representative regarding labor relations matters - Government Code Section 54957.6. c. To consider and take possible action upon personnel matters pursuant to Government Code Section 54957. d. To confer with its attorney regarding potential litigation pursuant to Government Code Section 54956.9 (b)(1). e. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in closed session. f. Withers vs. City of Los Angeles, et al - LASCC BC034190. To meet with the City's Real Property Negotiator on the (1) Lowe School site and (2) Set Free Church 100 City Hall, Anaheim, California - COUNCIL MINUTES - Februar~ 9, 1993 - 5:00 P.M. By general Consent, the Council recessed into Closed Session. (4=07 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. (5:00 p.m.). INVOCATION: Pastor Marvin Jacobs, First Congregational Church, gave the invocation. FLAG SALUTE: Council Member Irv Pickler led the assembly in the Pledge of Allegiance to the Flag. 119: DECLARATION OF RECOGNITIONs A Declaration of Recognition was unanimously adopted by the City Council to be presented to Andrea Manes Naylor named Americana Citizen of the Year for the City of Anaheim by the Cypress College Foundation and to wish her the very best in her retirement after serving as Director of Community Affairs and Public Events at Anaheim Memorial Hospital for 21 years as well as for her many years of service to the Anaheim community. 119: PROCLAMATIONS= The following proclamations were issued by Mayor Daly and authorized by the City Council: Vocational Education Week in Anaheim, February 14-20, 1993 H.O.P.E Day in Anaheim, February 9, 1993 Medical Assistants Week in Anaheim, February 22-28, 1993 Joanne Stanton and Beverly Yourstone accepted the Vocational Education Week in Anaheim proclamation. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $2,140,183.39 for the period ending February 5, 1993, in accordance with the 1992-93 Budget, were approved. Mayor Daly recessed the City Council meeting until after the Redevelopment Agency, Housing Authority and Public Improvement Corporation meetings. (5:28 p.m.) Mayor Daly reconvened the City Council meeting. (5:35 p.m.) PUBLIC COMMENTS - AGENDA ITEMS: Public input was received on Items Al2, 13, 14 and 15. (See discussion under those items.) ITEMS OF PUBLIC INTEREST: No items of public interest were addressed. MOTION: Council Member Daly moved to waive reading in full of all ordinances and r~solut£on~ to be acted uDon f~ th~ Council m~tin~ of February 9, 1993. Council Member Pickler seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member Pickler, 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 Pickler offered Resolution Nos. 93R-28 through 93R-30, both inclusive, for adoption. Refer to Resolution Book. 101 City Hall, Anaheim, California - COUNCIL MINUTES - Februaz7 9, 1993 - 5=00 P.M. Al. 118= The following claims were filed against the City and action taken as recommended: Claims rejected and referred to Risk Management: a. Claim submitted by Shelly Jean O'Brien for property damage sustained purportedly due to actions of the City on or about December 7, 1992. b. Claim submitted by Preferred Risk Group, Iglisia ni Christo, attn: Carol Davis, for property damage sustained purportedly due to actions of the City on or about November 11, 1992. A2. 105: Receiving and filing minutes of the Golf Advisory Commission meeting held November 25, 1992. 105: Receiving and filing minutes of the Anaheim Public Library Board meeting held December 23, 1992. 140: Receiving and filing the Anaheim Public Library Monthly Statistical Report for the months of August - December, 1992, and fiscal year report for 1991/1992. 105: Receiving and filing Disclosure of Property Interests in Redevelopment Areas from Paul V. Bostwick. A3. 170: Approving the Final Map of Tract No. 14698 (said tract is bounded by Water Street to the north, Anaheim Boulevard to the east, Stueckle Avenue to the south, and Lemon Street to the west); and authorizing the Mayor and City Clerk to execute same. A4. 167: Approving a Notice of Completion of the construction of the traffic signal improvements project by Intersection Maintenance Services, and authorizing the Mayor to sign and the City Clerk to file said Notice of Completion. A5. 169: RESOLUTION NO. 93R-28: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE SUBMITTAL OF GROWTH MANAGEMENT AREA IMPROVEMENT PROJECT(S) TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE COMBINED TRANSPORTATION FUNDING PROGRAM. (23 Growth Management Area projects to gain an additional $3,198,000 funding over the next five years from the Measure M program.) A6. 123: Approving a Second Amendment to Agreement with Dan L. Rowland and Associates, AIA, Inc., in the amount of $5,502.50 for architectural costs in connection with Fire Station .No. 9. A7. 158: Approving the Right-of-Way/Right-of-Entry Agreement for 2100 East Orangewood Avenue - (R/W 6000-8) State College/Orangewood Critical Intersection Street Widening Project (Twedt and Wells), authorizing the acquisition payment of $183,200, and authorizing the Mayor and City Clerk to execute said agreement and all other instruments required in connection therewith. A8. 106~ RESOLUTION NO. 93R-29: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CLARIFYING APPLICATION OF RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES - COMMUNITY FACILITIES DISTRICT NO. 1989~1 (SYCAMORE CANYON). 102 C£t¥ Hall, ~n&heim~ Cal~forn£a - COUNCIL MINUTES - February 9, 1993 - 5~00 P.M. This item was removed from the Consent Calendar and separate action taken by the Council at the completion of the Consent Calendar items. Ag. 160: Accepting the bid of Howard Industries, Inc., c/o Young and Company, in the amount of $43,225 for thirty-five 37.5 KVA current-protected, and twenty 37.5 KVA conventional single-phase transformers, in accordance with Bid $5111. Al0. 160: Authorizing the Purchasing Agent to issue a purchase order to Ken Thompson, Inc., in an amount not to exceed $35,000 for the emergency repairs on two caved-in storm drain lateral pipes at the intersection of Brookhurst and Cerritos Avenues. All. 175= Approving a request to the State of California Department of Transportation for functional replacement of Katella Substation, and authorizing the Public Utilities General Manager to execute and deliver said request. A12. 123= Approving a Retainer Agreement with the law firm of Hawkins, Delafield & Wood, in an amount not to exceed $40,000 for legal services to revise solid waste agreements and develop new methods of setting solid waste rates. Jeff Kirsch, 2661 W. Palais, Anaheim. He posed questions relative to the phraseology used noting that better information for public understanding would be in order. Mayor Daly. He noted and questioned the joint recommendation by the City Attorney and Maintenance Department to hire an outside attorney to assist. City Attorney White. The matter was discussed with John Roche, Maintenance Director who suggested the idea which he (White) feels is a sound one. The reason is to retain the expertise of a firm that has as their specialty in practice the matters relating to solid waste management. This firm is also currently dealing with the County of Orange on their solid waste management contracts. He concurs with staff recommendation. With regard to the specific questions posed, he pointed out this is a contract setting the outside scope of the work and not proposing how the rates are set, or the agreements being severed from the Certificates of Participation. These are recommendations that will eventually come back to the Council and will not encompass the whole range of services listed. They felt it advisable to make the scope of services as wide as possible. The public will have the opportunity to scrutinize and comment on any work product. Al3. 175~ Certifying that the adoption of the Electric Rates, Rules, and Regula%ions is sta~utorily exempt, under the Cali~ornia Environmental Qual£ty Act. RESOLUTION NO. ----~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF ELECTRICITY AS ADOPTED BY RESOLUTION NO. 71R-478 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 92R-25. (Continued from meeting of February 2, 1993, item Al0) See discussion below after Item A14. Al4. 175: Certifying that the adoption of the Water Rates, Rules, and Regulation is statutorily exempt, under the California Environmental Quality Act. 103 City Hall, Anaheim, California - COUNCIL MINUTES - Februar~ 9, 1993 - 5=00 P.M. RESOLUTION NO. ----: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF WATER AS ADOPTED BY RESOLUTION NO. 72R-600 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 94R-337. (Continued from the meeting of February 2, 1993 item All.) Jeff Kirsch, 2661 W. Palais, Anaheim. He previously made comments at the afternoon workshop wherein he noted that 5% of the increase is for undergrounding which could be deferred until the City is better able to support the program and that proposed increases, residential rates versus industrial rates, could be more favorable relative to residential. Dr. William Kott, 522 Dwyer Drive, Anaheim. He was present at the workshop and believes very strongly that the Utilities Department failed to create a good argument for their requests for increasing rates. Council Member Feldhaus. He feels relative to the proposed increases, there was confusion at last week's Council Meeting. There was also some degree of confusion in the rate hearing before the Public Utilities Board on January 21, 1993. He is, therefore, hesitant to vote on the matter tonight and would like an additional continuance to give more time for consideration. If he is forced into a vote tonight, he will not vote for either one. There needs to be more explanation. He has not heard any convincing argument to approve an increase in Utility rates. Mayor Daly. He feels at a minimum there should be a two week continuance and that there needs to be more staff work on the proposed rate increases. Council Member Pickler. He does not believe a two week continuance is going to help. The information staff has given is concise and clear. Staff has reiterated that cost of service is going up and the longer they wait it is going to be detrimental to the Utilities. Because of what staff has done over a period of years, electrical rates are 19 to 20% below Edison's. He also feels they should continue with the undergrounding of Utilities. The majority of the Council felt strongly this was something that was needed when the program was approved. He understands that on the Public Utilities Board, the vote was 7-0 approving the recommended increase in water rates and 6-1 on the electrical rates. He feels they should proceed and not continue the matter. Council Member Simpson. He is speaking against a continuance. He studied all the material and although he does not totally understand how they arrived at the cost of service figures, he is not uncomfortable with the situation. Looking at the amount of revenue that would be generated that Utility staff says is required is slightly in excess of 4 million dollars, 2 million dollars of which is directly attributable to the undergrounding program. If Council is concerned, that is a program that can be set aside at least temporarily. However, it was a Council decision that moved that forward. In looking at water rates generating 1.~ million dollars removing the abatement program for low-flush toilets, the number is down to $800,000 which does not seem exorbitant. The increase in water is being generated by the Metropolitan Water District. The District is saying there is still a drought but the problem is their lack of planning for a long period of time. There is not enough water storage capacity in the system. They increase water rates to cities over which the cities have no control. If they remove the rebate program and remove the cost imposed by MWD, the amount of increase is not exorbitant at all. MOTION: Council Member Daly moved to continue Items Al3 and Al4 - proposed electric and water rate increases - for an additional two weeks to give staff 104 City E&11, Anaheim, California - COUNCIL MINUTES - Fsbrusr~ 9, 1993 - 5500 P.M. additional time to Justify the increases. Council Member Hunter seconded the motion. Before a vote was taken, Council Member Simpson asked Mr. Aghjayan if a two week continuance would be detrimental. Ed AghJayan. A delay would cost about $8,000 a week (later corrected to $80,000 per week). He is not clear what staff could come back with since they gave it their "best shot" at the afternoon workshop. If there is specific information Council wants staff to bring back, they will do so. Mayor Daly. He does not feel the justification was very well laid out and the way they are tying in the cost of service studies does not make sense to him. Additional Council discussion and questioning followed during which Council Member Pickler proposed that the Council act on the electric rates at this time since the water rates seem to be more of a concern. At the conclusion of discussion, a vote was taken on the motion to continue consideration of the proposed increase in both water and electric rates for two weeks to February 23, 1993 and carried by the following vote= Ayes: Feldhaus, Hunter, Daly - Noes: Pickler, Simpson. James Ruth. He suggested during the two week period that the Council contact staff and they would be happy to respond to any questions to get them resolved before the next meeting on the issue. Ed Aghjayan. He will come back with different alternatlve rate designs and anything else the Council wants added. If there are specific presentations or questions the Council wants answered, he would appreciate knowing what those are, otherwise he will come in with different rate design alternatives. A15. 123: Approving the First Amendment to Agreement with Michael Brandman Associates, in the amount of $280,700 for preparation of the EIR for the Disneyland Resort Specific Plan. 123: Approving the First Amendment to Agreement with Disney Development Company for reimbursement of consultant costs on the Disney EIR. 106: Amending the FY '92/93 budget by increasing Disney revenue account #07- 930-3980 and expenditure account $07-930-6335 by $280,700. Jeff Kirsch. He posed questions relative to the subject agreement for purposes of clarification which were answered by Tom Wood, Deputy City Manager. A16. 177: Approving an application for Emergency Shelter Grant (ESC) funds, in the amount of $39,000 and authorizing the Mayor and the Executive Director to sign the necessary documents and certifications for submission of the application for federal assistance to the United States Department of Housing and Urban Development. A17. 1145 Approving minutes of the City Council meeting held January 5, 1993. Al8. 160: Waiving Council Policy 306 and authorizing the Purchasing Agent to issue a purchase order to Fire-Bann Corporation, in the amount of $38,338 for one Chevrolet Suburban vehicle for the Fire Department. 105 City Hallr Anahe£mr California - COUNCIL MINUTES - February 9r 1993 - 5=00 P.M. A19. 184: R~SOLUTION NO. 93R-30: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REVIEWING THE NEED FOR CONTINUING THE LOCAL EMERGENCY HERETOFORE PROCLAIMED BY THE DIRECTOR OF EMERGENCY SERVICES; DETERMINING THAT THE NEED FOR THE CONTINUING LOCAL EMERGENCY EXISTS; AUTHORIZING ACTS AND ORDERS BY THE DIRECTOR OF EMERGENCY SERVICES; AND APPROVING ADDITIONAL REMEDIAL ACTIONS RELATING THERETO. A20. 123~ Waiving the 72-hour posting provision of the Brown Act in connection with 4 additional contracts for geologists, well drilling and general repairs for the landslide area since the need to act arose after the City Council Agenda was posted on Friday. Submitted was report dated February 8, 1993, from the Public Works/Engineering Department recommending that the Council award individual contracts to several firms relating to the East Anaheim Hills soil movement incident. MOTION: Council Member Hunter moved to waive the 72-hour posting provision of the Brown Act. Council Member Pickler seconded the motion. MOTION CARRIED. Approving the award of individual contracts to R.J. Noble Company, Soil Sampling Service, Inc., and Hillcrest Contracting, each in a not-to-exceed amount of $300,000, Eberhart and Stone, Inc., in an amount not to exceed $500,000, and all subject to negotiated modifications of the general and specific terms and conditions by the City Engineer and Risk Manager, which will ultimately be approved by the City Manager with concurrence from the City Attorney, and authorize the City Manager to execute said contracts with a one-time renewal authority. Roll Call Vote on Resolution Nos. 93R-28 throuqh 93R-30, both inclusive, for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution Nos. 93R-28 through 93R-30, both inclusive, duly passed and adopted. Note: Items Al3 and Al4 were not acted upon as recommended and instead were continued for two weeks to February 23, 1993. END OF CONSENT CALENDAr. MOTIONS CARRIED. A8. 106: COMMUNITY FACILITIES DISTRICT NO. 1989-1 - SYCAMORE CANYON - RESOLUTION OF CLARIFICATION: Submitted was report dated January 26, 1993 from tho Public Works En~ineerin~ Dopartmen% recommending that the Council clari~y application of the rate and method of a portionment of special taxes for Community Facilities District No. 1989-1 - Sycamore Canyon. This item was removed from the Consent Calendar for separate action. City Attorney White. Before the Council meeting, Council Members Feldhaus, Hunter and Simpson indicated to him that they had a possible conflict of interest or perception of a conflict on this item since each has invested in the church that is the subject matter of the action. The nature of their investment relates to purchases of bonds that bear interest and are long term for the purposes of constructing church facilities. The Political Reform Act provides that when three members all have conflicts on a particular item 106 City Hall, Anaheim, California - COUNCIL MINUTES - Feb~uar~ 9, 1993 - 5:00 P.M. reducing the members eligible to vote, that the Council Members not eligible should, by lot determine which of them participates in the action for purposes of allowing an action to be taken. In this case, the resolution requires three affirmative votes for adoption. The minimum number that could be qualified to act is three and of the three disqualified, one should be re-franchised and allowed to vote. Because the law provides that the member to be allowed will be determined by lot, he has brought with him dice and those three members will now cast lots. It was determined by a throw of the dice that Council Member Simpson will participate in the action. (Council Members Feldhaus and Hunter took no part in the action.) Council Member Pickler offered Resolution 93R-29 for adoption. Refer to Resolution Book. RESOLUTION NO. 93R-29: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CLARIFYING APPLICATION OF RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES - COMMUNITY FACILITIES DISTRICT NO. 1989-1 (SYCAMORE CANYON). Roll Ca~l Vote on Resolution No. 93R-29 for adoption: AYES= COUNCIL MEMBERS: Pickler, Simpson, Daly NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None TEMPORARILY ABSENT: COUNCIL MEMBERS: Feldhaus, Hunter The Mayor declared Resolution No. 93R-29 duly passed and adopted. SWEAR-IN OF THOSE TESTIFYING AT PUBLIC HEARINGS: The City Attorney announced that it is appropriate at this time for all those intending to testify at any or all of the public hearings including staff be sworn in at this time. Those testifying were requested to stand by the City Clerk and asked to raise their right hand. The oath was then given. D1. 179: PUBLIC HEARING - VARIANCE NO. 4209, CATEGORICALLY EXEMPT, CLASS 11: OWNER: Imperial Properties, James Dobrott, 1770 Cowen Street, Suite $100, Irvine, CA 99214 AGENT: Newport Gourmet Service Corp., Dan Silva or Carolyn Vicario, 500 Newport Center Drive, Suite $740, Newport Beach, CA 92660. LOCATION/REQUEST: The property is located at 5741 East Santa Ana Canyon Road (Delaney's Regtaurant) and ig approximately 8.06 aere~ located at the northeast corner of Santa Aha Canyon Road and Imperial Highway. The request is to retain a roof-mounted satellite dish antenna within the Scenic Corridor Overlay Zone with waiver of roof-mounted equipment. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Variance No. 4209 APPROVED, IN PART, for ground mounting (ZA93-01). HEARING SET ON~ A letter of appeal of the Zoning Administrator's decision was submitted by Fernando Nevarez, Jonan U.S. Corporation, 18301 Von Karman Avenue, Suite 450, Irvine, CA 92715 and public hearing scheduled this date. PUBLIC NOTICE REQUIREMENTS MET BY: 107 City Hall, Anaheim, California - COUNCIL MINUTES - February 9t 1993 - 5=00 P.M. Publication in Anaheim Bulletin - January 28, 1993 Mailing to property owners within 300 feet - January 28, 1993 Posting of property - January 29, 1993 PLANNING STAFF INPUT= See staff report to the Zoning Administrator dated January 7, 1993 and Decision #ZA93-01. Annika Santalahti, Zoning Administrator, briefed the specifics of the request referring to the aerial map posted on the Chamber wall including exhibits Alternate A and B. Her approval of the variance required that the satellite be ground mounted and adequately screened and not roofed mounted as it is at present. Mayor Daly opened the public hearing. APPLICANT STATEMENT~ Fernando Nevarez, Operations Manager, Delaney's Restaurants. He first submitted additional data to the Council which included his memorandum dated February 9, 1993 giving their reasons for wanting to leave the satellite dish in the present location, attached to which was a letter from Essex Management Company for Imperial Properties, owner of the Canyon Plaza Shopping Center in support of keeping the dish on the roof of Delaney's as well as drawings showing what would occur if the dish were ground mounted (loss of visibility) as well as drawings showing proposals for shielding the roof mounted satellite (made a part of the record). He then briefed the six reasons for Delaney's wanting to keep the satellite dish in its present location, his major Points being - a ground mounted dish will be subject to vandalism, obstruct visibility for vehicles traveling westbound coming out of the lower parking lot and will not contribute to the aesthetics of the center. The satellite dish has been a positive addition and has increased gross sales substantially. A representative of the management company is present to speak relative to the proposal. Bettina Scholar, Vice President, Essex Realty Management, Irvine. Another tenant in the center, Lampost Pizza, has experienced vandalism with their ground mounted satellite dish. She is also concerned with an area that would block traffic coming into the center since visibility would be significantly hampered by a ground mounted dish. The trees on the corner now will be allowed to grow back and will further obscure the roof mounted dish. She confirmed she is speaking in favor on behalf of Delaney's. Walter Clot, Satellite Service Company, Satellite Installer. He surveyed the installation quite extensively. The dish will not work at all on the west side of the building, since it. has to turn and look at about a 33 degree angle to the east. The building is in the way. It will not work in any enclosed structure. On the roof, it is almost completely hidden. He believes some lattice work around the dish would work effectively. There were no further persons who wished to speak either in favor or in opposition. 108 City Hall. Anaheim, Californ£a - COUNCIL MINUTES - February 9, 1993 - 5:00 P.M. SUMMATION BY APPLICANT: Fernando Nevarez. They still believe the satellite dish at present is in the best location. If ground mounted, it will obstruct traffic and the wall they would have to build to cover it would be about 15 feet high. He is requesting that they be able to retain the roof mounted dish. Mayor Daly closed the public hearing. Joel Fick, Planning Director. There was some technical input provided tonight that was not provided at the Zoning Administrator meeting pertaining to some of the difficulties of sitting the satellite on the ground. To the extent that granting the variance makes sense to the Council, staff would recommend or support Alternative A posted on the Chamber wall (shielded roof mounted dish) with the same conditions imposed by the Zoning Administrator, with the exception of those pertaining to the ground mounted antenna. Mayor Daly. He asked if staff was suggesting they should see the final design; Joel Fick. Staff would be happy to review the design to make sure the materials would match the existing structure. Mayor Daly confirmed that the applicant indicated he was agreeable. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Council Member Pickler, seconded by Council Member Hunter, the City Council determined that the proposed activity falls within the definition of Class 11, of the City of Anaheim guidelines to the requirements for an Environmental Impact Report and is, therefore, categorically exempt from the requirement to file an EIR. MOTION CARRIED. Council Member Pickler offered Resolution No. 93R-31 for adoption, granting Variance No. 4209 subject to design approval by staff. Refer to Resolution Book. RESOLUTION NO. 93R-31: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING VARIANCE NO. 4209. Roll Call Vote on Resolution No. 93R-31 for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution No. 93R-31 duly passed and adopted. D2. 179: PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 259 - FOXEY'S - POSSIBLE TERMINATION OR MODIFICATION: LOCATION: The property is located at 1007 - 1009 E. Balsam Avenue and is approximately 0.35 acre with a frontage of 85 feet on the north side of Balsam Avenue, a depth of 181 feet and being located 195 feet west of the centerline of East Street. This is a City-initiated request and recommendation to City Council regarding possible termination or modification of Conditional Use Permit No. 259. Conditional Use Permit No. 259 established a hofbrau and auto repair garage on property in the ML zone. ACTION TAKEN BY THE PLANNING COMMISSION: 109 City Hall, Anaheim, California - COUNCIL MINUTES - Februa~7 9, 1993 - 5=00 P.M. Recommendation for the City Council to set CUP NO. 259 for a public hearing to consider its termination or modification. (6 yes votes, 1 vacancy.) The City Council determined to hold a public hearing to consider termination or modification and public hearing set and continued from the meeting of January 12, 1993 to this date. The continuance was requested by Jette B. Holgersen. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin - January 21, 1993 Mailing to property owners within 300 feet - January 19, 1993 Posting of property - January 21, 1993 STAFF INPUTs See City exhibit list (3 pages) listing 62 exhibits prepared as of February 9, 1993. City Attorney White. For purposes of the record, the City Council has received and has had available for review exhibits in connection with this matter - exhibits 1 through 62. These were provided to the Council for review last week except for exhibits 56 through 62 which were provided yesterday. Foxey's, which is the permit holder, has provided to Council for its review late last week a 17 page letter from the law firm of Farano & Kieviet and exhibits 1 through 11 accompanying that letter. Tonight they have received and have available for the Council additional exhibits 12 through 15 from Foxey's. All of that material is part of the record in front of the City Council for tonight's hearing. His recommendation is that the hearing proceed in the following manner= First those in favor of either revocation or modification of CUP 259 be heard. In that connection, there are three members of staff who wish to be heard - Sergeant Harold Mittman, Officer Donald Liparri, Senior Code Enforcement Officer, Don Yourstone and also ABC (Alcoholic Beverage Commission) Investigator, MaryAnn Eckoff. After their testimony, anyone else who wishes to testify should be given the opportunity after which the current permit holder should be given the opportunity to give reasons why the permit should not be terminated or modified followed by any other members of the public who wish to testify in support of the continued existence of the CUP in its present form. After the testimony is received, there will be an opportunity for the Council to ask questions. Mr. White first called upon Sergeant Harold Mittmann. Sergeant Harold Mittmann, 425 S. Harbor 81vd., Anaheim. He has been sworn as a witness by the City Clerk. He is employed by Anaheim as a Police Sergeant in the Criminal Intelligence Detail. He is familiar with the establishment known as Foxey's and has participated in two separate Police Investigations - the first in August, 1991, and the second in February, 1992. Sergeant Mittmann then briefed the Council starting with the August, 1991, investigation conducted as a result of complaints received regarding Foxey's Bar (see exhibit 53) and continuing through the second investigation which started in February, 1992, (see exhibits 3, Memorandum dated June 8, 1992 and Anaheim Police Department Investigation reports exhibits 3, 6, 8, 9, 10, 15, 18, 22, 23, 26 and 28). These exhibits/reports documented that during routine checks of the business, the bar was operating outside of the City issued conditional use permit. In concluding his presentation, Sergeant Mittmann stated during the course of the investigation which lasted many months, it was evident that the activities of the witnesses and the employees were not unique to only one or two waitresses. It was documented during this investigation that a total of seven waitresses were involved in the violations outlined in the Police reports. 110 City Hall, Anaheim, california - COUNCIL MINUTES - February 9, 1993 - 5:00 P.M. Officer Donald Liparri, Investigator, 425 S. Harbor Blvd., Anaheim. He has been sworn as a witness in these proceedings. He is a Police Officer for the City of Anaheim assigned to Patrol for the last 11 years. He is familiar with the business establishment known as Foxey's located at 1007 E. Balsam. He has conducted or participated in Police investigations at Foxey's on numerous and separate occasions between February 25, 1992 and October, 1992. During these investigations, he has personally witnessed the conduct and activity reflected in Police reports marked exhibits 5 and 6. These Police reports are true and accurate accounts of the conduct he has observed inside Foxey's. Don Yourstone, 200 S. Anaheim Blvd., Anaheim. He has been sworn as a witness in this proceeding. He is a Senior Code Enforcement Officer for the City and has been for the last 8 years. He is familiar with the business establishment known as Foxey's located at 1007 E. Balsam. In his professional capacity, he has conducted or participated in Code Enforcement Investigations at Foxey's on eight separate occasions between September 6, 1991 to the present. In his extensive presentation, he briefed what occurred and the results of the investigations conducted and the violations observed. MaryAnn Eckoff, Department of Alcoholic Beverage Control. She is present to answer any questions the Council or City Attorney may have. City Attorney White. He suggested those be deferred until the question and answer period. This concludes the staff presentation. The hearing may now be open to anyone who wishes to testify in favor of the termination or modification of the permit. Mayor Daly opened the public hearing and asked to hear from those in favor of terminating or modifying Conditional Use Permit No. 259. PUBLIC DISCUSSION IN FAVOR OF TERMINATION OR MODIFICATION: None City Attorney White. It would now be in order to call upon Jette Holgersen or her legal counsel or other representative to present the case for Foxey's. Jan Doezie, Attorney, Farano & Kieviet, the law firm representing Jette Holgersen. Mrs. Holgersen would like the opportunity to address the Council as well as other witnesses. For the record, she has received the 62 exhibits announced by the City Attorney and she has presented to the City a 17 page letter with 15 exhibits for the City's review and consideration. She would first like to allow Mrs. Holgersen and other parties to address the Council first and subsequently she will address the legal issues. Jette Holgersen, owner of Foxey's for 21 years. She has always tried to do her very best as far as City ordinances, rules and regulations. They have had a number of girls through the years who have been able to put themselves through college or other education. She feels this proposed action is unfair. When it first started with Mr. Yourstone, she went down and met with him to talk about what needed to be done. She put food in the business and everything, at least to her understanding, was ok with him. She tried to get a hold of Mr. Gandy (Detective Gandy) but never did get to meet with him. Sh~ is present tonight to see if they can work this out and to request that she be able to stay in business. Debra Jo, Mrs. Holgersen's manager at Foxey's. She has been there since March of last year. She is a recovering alcoholic and addict. She looked for a bar like this to work in. Everybody that goes to the bar are neighborhood people. She has read all the accusations. She has been at the business almost a year 111 City Hail, Anaheim, California - COUNCIL MINUTES - February 9, 1993 - 5~00 P.M. and has not seen any of these things. She works five days a week, eight hours a day. She has been able to put herself through school due to the flexible hours. She has watched a lot of the other girls do the same thing. It £s a wonderful place to come and relax. Jette is a wonderful person. She takes care of things immediately. She would like to see the place remain open. She needs the employment. She wants to continue to put herself through school. She explained for Council Member Pickler that the school is the holistic college in Riverside and she is not going there now. Ted Todderoff, proprietor of the automotive center on the corner of Anaheim Boulevard and La Palma for 23 years. He has frequented the bar for 20 some years. It is an adult bar. There are some girls not dressed properly the way they would like to see people dressed but it is a bar. He feels this is a "witch hunt". He used to own the Wolf's Den and remembers all kinds of harassments by Police Officers. Mrs. Holgersen is being put through an awful lot. She has been there for 20 years. He does not think her license should be revoked. He suggested perhaps some restrictions be imposed as well as probation and after probation if there are still problems, then the City can take appropriate action. Council Member Hunter temporarily left the Council Chamber. (7:10 p.m.) Vicki Martin, former employee of Foxey's. Her name is mentioned in several of the exhibits. She has never seen the reports. She asked to get copies and was denied. She did not commit the acts and can prove that she did not. She started working there 10 years ago. She did not have a high school diploma and was on her own. She went back to high school, got her diploma, went to college for two years, is a licensed Real Estate Agent and now works for two top brokers in Laguna Niguel. Talking specifically with reference to exhibit 53 which she had the opportunity to look at by accident, she was very upset when she read it. If somebody is accusing her of something, she has her rights both civil and constitutional to defend herself. She had asked that her name be removed from the report but was told the report would not be amended. She called the Vice Department today and said she would surrender herself if they would care to bring any charges against her. She has worked hard getting where she is today. She was supported by the bar. She then reiterated her concerns about her name being in the Police report and that the report is not factual. She wants a copy of the report and would like to have her name taken out of it because she can prove she was not there. Mark Benger, 420 N. Vine, Anaheim. Currently he is the night manager at Foxey's and has been for the last four months. He has been a patron of Foxey's for 3~ years. Prior to that, he worked at Rockwell International as a buyer. The bar is a friendly atmosphere and not what has been portrayed. While he has worked theref he has never seen what has been alleged. Jette is a wonderful person. She takes people who are down and out and gives them a hand back into society. To close her down would be an injustice and a detriment to the community. She has owned the business for 21 years and 15 of those years has lived in Anaheim. What is being done is an atrocity. Keno Reyes, 1401 Burton Street, Anaheim. He was previously employed by Jette 10 years ago at 1007 Balsam. For the time he was her manager, she was most emphatic about employees' rules and regulations. At the time, the girls conducted themselves in an orderly fashion. As far as infractions when it came to conduct, the girls were to conduct themselves appropriately. When-ever the authorities would visit the establishme~t on occasions, the girls were directed to be cooperative and courteous. There were times when girls would have to be sent home for a change of garments so as not to present 112 C£t¥ Hall, Anahe£m, Californ£a - ¢OUI~CIL MINUTES - Februar~ 9, 1993 - 5500 P.M. themselves to lewd conduct of any kind. If any regulations are going to be imposed, some sort of probationary period should be granted before considering termination. Janice Doezie, Attorney, law firm Farano & Kieviet, 200 S. State College Blvd., Anaheim. As Mrs. Holgersen stated, she has owned the business and has operated it for approximately 22 years. Foxey's have been operating legally at the location for 30 years. The conditional use permit she is operating under was validly issued in 1962 and Mrs. Holgersen has relied on that since she purchased the business in 1971. She has incurred substantial income and expense in operating her business in relying on the CUP. She currently holds all required licenses, permits and business requirements imposed upon her by the City as provided in exhibit 12. She is currently and has been conducting herself in conformity with her original CUP granted in 1962 specifically in reference to operating a restaurant. While not addressed this evening, it is addressed in the staff report. She can address that issue if the Council wishes. Mainly they have heard this evening about the undercover vice investigation and employee behavior; City Attorney White stated whatever Mrs. Doezie would like to do or address would be up to her. Mrs. Doezie then gave an extensive presentation briefing most of the major issues outlined in her 17 page letter dated February 5, 1993 to the City Council with attached exhibits 1 through 11 (12 through 15 were submitted later) - that Foxey's is not being exercised contrary to the original terms and conditions of CUP 259 which allowed a Hofbrau and repair garage with no indication that the Hofbrau would be a restaurant, the fence issue and the unavailability of parking, only interior modifications were made, none requiring a permit, the addition of the portable dance floor, the nuisance issue, a review of the Police reports and the fact that of the 29 Police reports that did indicate there were some arrests, 73 of 87 Police reports did not result in a citation or an arrest. What is stated in the staff report is the majority of the 87 Police contacts resulted in an arrest or citation which is not accurate. Regarding the undercover investigations, no one was ever arrested or cited if there was any inappropriate behavior, etc. In concluding, she also referred to the fact that six people tonight had indicated their support for continuation of Foxe¥'s in addition to-the approximately 800 signatures of patrons, residents, businesses and citizens who indicated they are in favor of the continued operations of Foxey's. Before the Council this evening is the strictest and harshest measure that could be imposed on a business owner and that is absolute termination. It is their position that there are conditions that could be imposed that would address the concerns of the City - the parking, the food, the behavior of the employees - and et£11 allow a legitimate business to continue to operate. Mrs. Holgersen is willing to place herself on probation and to submit to supervisory conditions regarding her employees. (Council Member Hunter entered the Council Chamber, 7:29 p.m.). She is willing to do something with the parking situation. In that regard, it would be appropriate to have the City Attorney require the property owner who put it up, to take it down. There are alternative methods that are available to impose short of termination. She is asking for a modification of CUP 259 and not a revocation. City Attorney White. Since there are no additional speakers, it would be appropriate at this time to close the public hearing. If the Council wishes to ask questions directed to any of the speakers they can do so; there were no questions. 113 City Hall, Anaheim, California - COUNCIL MINUTES - Februar~ 9, 1993 - 5:00 P.M. Mayor Daly closed the public hearing. Mayor Daly asked again if there were any questions of Council Members of the speakers or of staff~ there were none. City Attorney White. Staff recommendation is that the Council adopt a resolution modifying Conditional Use Permit No. 259. The Council has been provided with a draft of a proposed resolution and sample findings. This would terminate the portion of the CUP that relates to the operation of a hofbrau restaurant for the sale of food and incidentally for the sale of beer based upon findings that the Anaheim Municipal Code (AMC) has been violated and specifically the section that allows for revocation of CUPs or modification - Section 18.03.092 which sets forth the various criteria upon which a revocation or modification can be based. Among those criteria are that the use for which the permit has been granted has ceased to exist, that the conditions imposed upon the permit are being or have recently been violated, that the permit is being exercised currently or has recently been exercised in a manner in violation of provisions of the AMC and that with regard to modification that the modification is necessary to protect the public health, safety or general welfare. If the Council has any questions, he would be happy to address those, but staff recommendation is to adopt the resolution and make the appropriate findings. The Council was provided prior to the opening of the hearing a draft resolution that contains the title and 37 findings that he believes are supported by the evidence presented tonight as well as the exhibits presented on behalf of the City and on behalf of Foxey's. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Council Member Daly, seconded by Council Member Pickler, the City Council determined that the proposed activity falls within the definition of Class 21, of the City of Anaheim guidelines to the requirements for an Environmental Impact Report and is, therefore, categorically exempt from the requirement to file an EIR. MOTION CARRIED. Council Member Daly offered Resolution No. 93R-32 for adoption, to consider modifying Conditional Use Permit No. 259 to terminate the hofbrau restaurant portion of the use, with findings as outlined in the resolution. Refer to Resolution Book. RESOLUTION NO. 93R-32: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ~NAMEIM MODIFYING CONDITIONAL USE PERMIT NO. 259 AND AMENDING RESOLUTION NO. 62R-690 AS AMENDED BY RESOLUTION NO. 63R-57. Roll Call Vote on Resolution No. 93R-32 for adoption: AYES= NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution No. 93R-32 duly passed and adopted. ITEM B1 FROM ~ ZONING ADMINISTRATOR MEETING OF JANUARY 21t 1993: DECISION DATEs JANUARY 28t 1993 INFORMATION ONLY - APPEAL PERIOD ENDS FEBRUARY 12~ 1993~ B1. 179= CONDITIONAL USE PERMIT NO. 3425 - REQUEST FOR RETROACTIVE EXTENSION OF TIME TO COMPLY WITH CONDITIONS OF APPROVAL: 114 Ci2¥ Hall, Anaheimt California - COUNCIL MINUTES - February 9, 1993 - 5:00 P.M. REQUESTED BY: Ofelia Castellanos, 1086 North State College Boulevard, Anaheim, CA 92806. LOCATION: 1086 North State College Boulevard. Petitioner requests a one-year retroactive time extension to comply with conditions of approval for Conditional Use Permit No. 3425 (to permit expansion of existing restaurant/nightclub with on-sale liquor) to expire on June 27, 1993. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Retroactive time extension DENIED. ITEMS B2 - B6 FROM THE PLANNING COMMISSION MEETING OF JANUARY 25, 1992 INFORMATION ONLY - APPEAL PERIOD ENDS FEBRUARY 16, 1993s B2. 179: WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT NO. 3575, TENTATIVE TRACT MAP NO. 14736 AND NEGATIVE DECLARATION: OWNER: Pinetree Village, Limited, Three Point Drive, Brea, CA 92621 AGENT: Wesmac, Inc., 3333 S. Brea Canyon Road, $219, Diamond Bar, CA 91765 LOCATION: 500 North Tustin Avenue. Property is approximately 2.5 acres located at the northeast corner of Riverdale Avenue and Tustin Avenue. To permit the conversion of an existing 40-unit apartment complex to a 40-unit condominium complex with waiver of minimum unit size. To establish a 1-lot, 40-unit, RM-2400 condominium subdivision. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3575 GRANTED, IN PART, with amendment to conditions (PC93-10) (5 yes votes, 1 abstained, and 1 vacancy). Waiver of code requirement Deleted. Tentative Tract Map No. 14736 APPROVED (see item BiO on 2/2/93 Council agenda). Approved Negative Declaration. B3. 179: WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT NO. 3563 AND MITIGATED NEGATIVE DECLARATION: OWNER: M.E. Johnson, 1214 W. Katella, Anaheim, CA 92802 AGENT: Robert W. Kent, 16315 Oaktree Circle, Chino Hills, CA 91709 LOCATION: 511-520 South Manchester Avenue and 500-520 South Walnut Street. Property is approximately 2.1 acres located at the southwest corner of Manchester Avenue and Santa Ana Street. To retain an auto repair, towing and dismantling facility (including the storage and retail sale of used auto parts) and a proposed 768-square foot office building and a shop canopy with waiver of required improvement of parking and outdoor storage area, maximum structural height adjacent to residential zones, minimum structural setback, improvement of required setback areas and permitted encroachments into required yards. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3563 DENIED (PC93-11) (6 yes votes, i vacancy). Waiver of code requirement DENIED. Denied Mitigated Negative Declaration. City Clerk Sohl. In an abstract from the Planning Commission, the Commission is asking the Council to consider setting the older Conditional Use Permit on the property (CUP 1052) for possible modification or revocation. 115 City Hall, Anaheim~ Cal££orn£a - COUNCIL MINUTES - February 9~ 1993 - 5:00 Annika Santalahti, Zoning Administrator. Conditional Use Permit No. 3563 is concurrent with CUP 1052. The Planning Commission denied CUP 3563 and also felt that prior zoning actions on the property should be terminated. The Commission wants to have a public hearing on CUP 1052 and then make a recommendation to the Council that it be terminated and they want Council concurrence on that procedure. After further discussion, Mayor Daly surmised that the Council did not need to take any action on the subject item at this time but there will be a forthcoming item from the Planning Commission which relates to this which may require setting that other item for a public hearing; Mrs. Santalahti confirmed that was correct. No action was taken by the Council on this item at this time. B4. %79: WAIVER OF CODS REQUIREMENT. CONDITIONAL USE PERMIT NO. 3584 AND NEGATIVE DECLARATION: OWNER: Day, Shankle & Shaw Associates, 1150 North Richfield, Anaheim, CA 92807 AGENT: Commercial Associates Insurance Co., Ralph H. Elbem Jr., President. care of : Martin Co.'s, P.O. Box 15532, Santa Aha, CA 92705 LOCATION: 4226 East La Palma Avenue. Property is approximately 4.33 acres located at the southeast corner of La Palma Avenue and Richfield Road. To permit an industrially-related office use (commercial insurance and bonding company) with waiver of waiver of minimum number of parking spaces. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3584 GRANTED (PC93-12) (6 yes votes, i vacancy). Waiver of code requirement APPROVED. Approved Negative Declaration. B5. 179: CONDITIONAL USE PERMIT NO. 3582 AND NEGATIVE DECLARATION: OWNER: Weir Partners Ltd., 2910 Red Hill Avenue, Ste. 110, Costa Mesa, CA 92626 AGENT: Ajit S. Brar, D.V.M, 5350 La Fiesta, Yorba Linda, CA 92687 LOCATION: 781 Weir Canyon Road. Property is approximately 11.9 acres located at the southwest corner of Weir Canyon Road and Serrano Avenue. To permit an animal hospital with grooming services. B6. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3582 GRANTED (PC93-13) (6 yes votes, 1 vacancy). Approved Negative Declaration. 179: CONDITIONAL USE PERMIT NO. 3585 AND NEGATIVE DECLARATION: OWNERs Anaheim Memorial Hospital, 1111 West La Palms Ave., Anaheim, CA 92803 A~ENT~ Rochl£n Baran, 10980 W£1sh£re Boulevard, los Angeles, CA 90024 LOCATIONI 1111 West La Palms Avenue. Property is approximately 11.0 acres located at the northwest corner of La Palms Avenue and West Street. To permit a 3,503-square foot addition to an existing hospital complex to establish a 8,862 square-foot dialysis center. ACTION TAKEN By THE PLANNING COMMISSION: CUP NO. 3585 GRANTED (PC93-14) (6 yes votes, i vacancy). Approved Negative Declaration. 116 City Hallf Anaheimf California - COUNCIL MINUTES - February 9, 1993 - 5:00 P.M. REPORTS AND RECOMMENDATIONS: B7. 179: CONDITIONAL USE PERMIT NO. 1883, VARIANCE NO. 2349 AND 4085 - REQUEST FOR TERMINATION: REQUESTED BY: David C. Collins LOCATION: 1514 West Broadway. Petitioner requests termination of Conditional Use Permit No. 1883, Variance No. 2349 and 4085. ACTION TAKEN BY THE PLANNING COMMISSION: Termination of CUP NO. 1883, VARIANCE NOS. 2349 AND 4085 GRANTED (PC93- 15) (4 yes votes, 2 absent, and I vacancy). BB. 179: CONDITIONAL USE PERMIT NO. 3206 - REQUEST FOR TERMINATION: REQUESTED BY: Dwight Belden, Sari Ranch Associates LOCATION: 1001 to 1100 Pullman Street (Sari Ranch) Petitioner requests termination of Conditional Use Permit No. 3206 (to permit the construction of a Commercial Center, an automotive repair center, a freestanding restaurant with on-premise sale and consumption of alcoholic beverages and entertainment, a drive-through restaurant and service station). ACTION TAKEN BY THE PLANNING COMMISSION: Terminated CUP NO. 3206 (PC93-16) (4 yes votes, I absent, 1 abstained, and 1 vacancy). END OF THE PLANNING COMMISSION ITEMS. B9. 179: ORDINANCE NO. 5356 - COMMERCIAL USE OF RESIDENTIAL STRUCTURES IN CERTAIN COMMERCIAL ZONES. ACTION TAKEN BY THE PLANNING COMMISSION: Approved proposed code amendment. The City Planning Commission at its meeting of January 11, 1993 recommended that the City Council adopt the subject ordinance relating to commercial use of residential structures. ORDINANCE NO. 5356: Amending and deleting certain subsections in various section of Chapters 18.41, 18.44, 18.45 and 18.46 of Title 18 of the Anaheim Municipal Code relating to commercial use of residential structures. (Introduced at the meeting of February 2, 1993). Council Member Hunter offered Ordinance No. 5356 for adoption. Refer to Ordinance Book. ORDINANCE NO. 5356: AN ORDINANCE OF THE CITY OF AN~HEIM AMENDING AND DELETING CERTAIN SUBSECTIONS IN VARIOUS SECTION OF CHAPTERS 18.41, 18.44, 18.45 AND 18.46 OF TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO COMMERCIAL USE OF RESIDENTIAL STRUCTURES. Roll Call Vote on Ordinance No. 5356 for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Ordinance No. 5356 duly passed and adopted. 117 C~ty Hall~ Anaheim, California - COUNCIL MINUTES - February 9, 1993 - 5:00 P.M. Cl. 173~ ~EOUEST OF W~ST COAST CAB COMPANY TO CHANGE ITS NAME, COLOR AND LOGO OF TAXICABS: APPLICANT~ A-AAA Yellow Cab, Inc., Attn: Mike Casey, 941 N. Santiago Street, Santa Ana, CA 92701. To consider the request of A-AAA Yellow Cab (West Coast Cab Company) for a change in name, color and logo of taxicabs which operate within the City of Anaheim. Continued from the meeting of January 26, 1993, Item Cl, at the request of the applicant. Submitted was letter dated December 1, 1992 from Hossein Nabati, President, A-AAA Yellow Cab, Inc. (West Coast Cab) requesting approval for the change in color, name and logo. Also submitted was report dated January 5, 1993, from John Poole, Code Enforcement Manager, recommending denial of West Coast Cab Company requested changes (West Coast Cab Company, dba, West Coast Transportation). John Poole, Code Enforcement Manager. West Coast Cab Company is requesting to change their name, color of their vehicles and logo. They are proposing that their vehicles be white and yellow with a black logo and black letters that would read Triple AAA Yellow Cab. Mr. Poole then relayed what had transpired in 1987 when a hearing officer appointed by the Council was asked to consider West Coast's request for taxi service. The hearing officer recommended approval but that the vehicles be painted in a distinct color other than yellow or orange since Yellow Cab Company was operating in the City at that time and licensed to do business in the City since 1947. Mr. Poole then briefed some of the facts contained in his January 5, 1993 report. In concluding he stated staff has recommended the proposed change be denied based on the fact that it would be in violation of the Anaheim Municipal Code and would cause even greater enforcement problems specifically in the Disneyland area in determining which company was involved when problems occurred. He thereupon submitted photos to the Council showing what West Coast Cab vehicles look like presently and what they are proposing. Mayor Daly asked to hear from the applicant. Mr. Hossein Nabati. He is the owner of West Coast Cab. He is requesting to change the color and the name of his cabs because they have received complaints from their customers in the City that the present color is not too good. The hotels have asked them to change their color. They are changing to white with a yellow top. They are not all yellow and are completely different from Yellow Cab. The Council has the picture showing vehicles with the proposed colors, name and logo. He went to court in 1988 having the same similarity with Orange County Yellow Cab and the court order was nobody could use Yellow Cab. Everybody has to have something in front of Yellow Cab - there is West Coast Yellow Cab, Yellow Cab of North Orange County, Sunshine Yellow Cab, etc. His company has been operating with the Yellow Cab of North Orange County in all the cities. He has licenses in all the cities in Orange County operating as a - AAA Yellow Cab and there is no problem with confusion o~ the name Because they are A-AAA Yellow CaB and are white and yellow. He owns the right to use Yellow Cab. He has had the fictitious name for 8 years showing he has the right to use the name Yellow Cab. He has the court order that says he cannot use the name of Yellow Cab alone. It is a generic name like aspirin. They are not doing anything wrong or anything outside of the City ordinance. Mayor Daly asked if there were any additional speakers in support; there was no response. 118 City Hall, Anaheim, California - COUNCIL MINUTES - February 9. 1993 - 5~00 P.M. Larry Slagle, 1619 E. Lincoln, Manager, Yellow Cab Company of North Orange County also doing business as Yellow Cab of Anaheim. He referred to his letter of opposition dated September 15, 1992, which outlined many of his concerns regarding the proposal. The applicant early on raised some issues at least with several of the hotels about competition or confusion with other yellow cabs, Orange Coast Yellow Cab, South Coast Yellow Cab and West Coast Cab. Now the applicant is saying he proposes to be affiliated with another confusing state or that of Yellow Cabs. He (Slagle) expects the real reason for the requested change is to capitalize on a business and reputation that Yellow Cab Company has developed over a period of 47 years and the easiest way is to change the name to Yellow Cab. The change would cause confusion both to the general public and the people who dial information and who would get A - AAA Yellow Cab before they would get Anaheim Yellow Cab or Yellow Cab of Anaheim or of North Orange County. He reported on other issues which would cause confusion as well as some unscrupulous practices. Code Enforcement would be much more difficult. As mentioned by Mr. Poole, there was a hearing process some time ago that ultimately resulted in a City code relating to the prohibition of the use of orange and yellow for other cab companies who may operate in the City. Many major cities across the United States have this same code requirement for the same reason. They believe the application is without merit and in direct conflict with the municipal code. He asked that the request be denied. There were no additional speakers. MOTION= Council Member Hunter moved denial of the application of West Coast Cab Company dba West Coast Transportation for a change of name to "A-AAA Yellow Cab Company" and a change of monogram and insignia to read "Triple A Yellow Cab" as depicted and shown in the photographs accompanying the Staff Report dated January 5, 1993, on the grounds that the name, monogram and insignia proposed to be used on the taxicabs would be in conflict with and would imitate the name, monogram or insignia used by another person, firm or corporation heretofore licensed by the City of Anaheim, in such a manner as to be misleading or tending to deceive or defraud the public for the following reasons= The Yellow Cab Company of Orange County has heretofore been issued a permit to operate in the City of Anaheim under the name "Yellow Cab Company of Orange County". Each of the taxicabs of such company bears the name and insignia "Yellow Cab Co." in black lettering on an inverted triangle with a black border. 2e 3e 4e The proposed name, monogram and insignia of "A-AAA Yellow Cab Company" proposes a circular monogram and insignia consisting of black letters which read "Yellow Cab Company" surrounding a center area containing three stylized "A"s. The similarity in the use of the name "Yellow Cab Company" in both the name and insignia of both companies is likely to mislead and confuse the public as to which taxicabs are owned by which companies. The City has an important interest in assuring that all persons can readily identify, without confusion, the particular company providing taxicab service to any individual within the City for purposes of tracing complaints and alleged violations of the Anaheim Municipal Code to the taxicab company which committed such alleged violations. 119 City Hall. Anaheim~ California - COUNCIL MINUTES - February 9, 1993 - 5:00 P.M. The similarity between the name, monogram and insignia of "Yellow Cab Company of Orange County" and the proposed name, monogram and insignia of "A-AAA Yellow Cab Company" would make it difficult for persons to readily distinguish and identify the particular taxicab company providing service for purposes of lodging complaints or any other purpose. Council Member Pickler seconded the motion. MOTION CARRIED UNANIMOUSLY. C2. 176: POSSIBLE ABANDONMENT OF SMALL PORTION OF CLAUDINA STREET: Council Member Pickler. Me noted that the City now has two beautiful restaurants across the street at Anaheim Boulevard and Lincoln Avenue (Yves' Bistro and the Rose & Crown). The parking for that small center is horrendous. Claudina Street separates that center from the Kraemer building and the City parking structure. He would like staff to look at the possibility of closing off (abandoning) that small portion of Claudina Street which will help the restaurants and businesses to remain viable by allowing additional parking. Council Members agreed that the recommendation was a good one; Council Member Feldhaus also suggested that there needs to be better markings on the City owned parking structure next to the Kraemer Building. 150: VIDEO ON "TAGGERS": Council Member Feldhaus stated that on February 1, 1993, he attended a Gang and Drug Task Force meeting where a film was shown on "taggers", defacing and vandalizing cities and counties with graffiti on just about every surface. It graphically shows graffiti tagging and also interviews with the taggers. It is a real motivator and should move the Council into further action. He recommended that for those Council Members who have not seen it that arrangements be made to do so. Mayor Daly suggested that it be shown prior to a Council meeting for those members who would like to see it. ADJOURNMENT: By General Consent the Council adjourned. (8:05 p.m.) No Council meeting is scheduled for Tuesday, February 16, 1993, since no quorum is anticipated at this time. LEONORA N. SOHL, CITY CLERK 120