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1991/06/18City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. The City Council of the City of Anaheim met in adjourned regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: and Hunter COUNCIL MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANT CITY MANAGER: Jim Armstrong PROGRAM DEVELOPMENT & AUDIT MANAGER: CITY TREASURER: Mary Turner LIBRARY DIRECTOR: William Griffith FIRE CHIEF: Jeff Bowman DATA PROCESSING DIRECTOR: Janet Mace FINANCE DIRECTOR: George Ferrone UTILITIES GENERAL MANAGER: FINANCIAL SERVICES MANAGER: Simpson (entered 3:35 p.m.), Daly, Pickler, Ehrle Ken Stone Edward Aghjayan Michael Bell A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 2:45 p.m. on June 14, 1991 at the Civic Center kiosk, containing all items as shown herein. Mayor Hunter called the adjourned regular meeting of June 11, 1991 (held June 18, 1991) to order at 2:05 p.m. 106: CONTINUED PUBLIC HEARING - RESOURCE ALLOCATION PLAN: To consider the proposed 1991/92 Resource Allocation Plan (RAP) - Budget. City Manager James Ruth. He first gave an update on the state budget which is still in flux and subject to change. He then briefed those items presently under consideration that will have a financial impact on the City of Anaheim ultimately resulting an approximate $724,000 budgetary "hit# to the City. City Manager Ruth then introduced and prefaced the remaining departmental budget presentations giving the departments locations in the budget document, capital improvement plan where applicable, budget totals, adjustments and also reported the extent to which departments have made expenditure reductions either labor reductions, operating reductions and capital outlay reductions. In some departments, all three areas where reduced. The following department head then gave on overview of their departments proposed budget, plans and goals for the coming year(s) and explanations relative to the request in their budget. Several relayed the accomplishments/goals reached in the past fiscal year. 360 City Mall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Assistant City Manager, Jim Armstrong - City Council: (Visitor and Convention Bureau Budget presented at the meeting of June 11, 1991 which is a major portion of the City Council Budget, i.e., 1991/92 - $3,445,440 and 1992/93 - $3,720,720). RAP page 25. 1991/92 - $4,155,258, 1992/93 - $4,296,894. City Attorney, Jack White - city Attorney's Office: RAP page 65. 1991/92 - $3,508,864, 1992/93 - $3,656,531. No capital improvements. Expenditure reductions, 1991/92 - $185,637. Reductions - 1992/93, $241,367.00. City Treasurer, Mary Turner - City Treasurer's Office: RAP page 66. 1991/92 - $2,890,320, 1992-93 - $3,111,359. Expenditure reductions, 1991/92 - $45,313, 1992/93 - $42,156. (Mrs. Turner also reported on several items which were not reflected in the printed narrative in the RAP summary document, i.e., new assignments being handled in the City Treasurer's Office.) City Clerk, Leonora Sohl - City Clerk's Office: RAP page 67. 1991/92 - $555,110, 1992/93 - $660,872. No capital improvements. Expenditure reductions, 1991/92 - $43,521, 1992/93 - $45,754. Assistant City Manager, Jim Armstrong - City Manager's Office (Administration): RAP pages 63-64. 1991/92 - $3,324,949, 1992/93 - $3,570,019. No capital improvements. The economic development and JTPA program have been transferred to the Community Development Department. Expenditure reductions, 1991/92 - $1,579,979, 1992/93 - $1,689,440. Mr. Armstrong then confirmed for Council Member Daly that four full-time positions and the equivalent of an additional 1 1/2 full-time positions in part-time hours had been eliminated from the administration budget. Fire Chief, Jeff Bowman - Fire Department: RAP pages 32-33. 1991/92 - $23,734,245, 1992-93 - $25,130,900. No capital improvements. Expenditure reductions, 1991/92 - $594,396, 1992/93 - $592,781. Chief Bowman first briefed accomplishments in the 1990/91 fiscal year all of which would have a positive impact in the next fiscal year. He then briefed the significant changes the department had to make to accomplish the 5% reduction in their budget most noticeable, in order to make the final balance was to take Engine 26 serving in the west end of Anaheim out of service every fifth day in 1991/92 and in 1992/93, every third day. He explained the consequences involved including the fact that since the City has an automatic aid agreement with the City of Garden Grove, if the engine is out of service, it nullifies that agreement and, further, Engine 26 is the primary unit to combat brush fires in Anaheim Hills. At the conclusion of his presentation, Chief Bowman answered questions posed by Council Members. Answering the Mayor, he reported that in the first year 361 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. (1991/92,) it would cost $123,799 to keep Engine 26 in operation and $268,125 the next year. He also confirmed that the budget does provide for sufficient funds to furnish Station 9 and bids are scheduled to be open in July. He then explained for Council Member Pickler the consequences if they do not proceed with Station 9 at this time noting, that Station 9 has been a temporary station since 1976. The old temporary station literally fell down on them. A temporary facility was set up at the Anaheim Hills Golf Course parking lot where it has been for 18 months. Considerable complaints have been received because of its location there. Operating out of cramped temporary facilities will not change service levels but it will have a negative impact on morale and residents. He does not want to see it delayed any longer. Council Member Pickler. The cost for Fire Station 9 is 1.5 million. He would prefer to delay the construction of Fire Station 9 at this time and use those funds elsewhere during this period of shortfall. Chief Bowman. The money comes from developer fees and not general fund dollars. City Manager Ruth. He confirmed the money is from developer fees and also some one time money. If bids are awarded in 90 days, it will probably be another year before the building is built and occupied which would mean approximately another two years at the temporary facility. Ken Stone, Program Development and Audit Manager. Of the monies budgeted for Fire Station 9, approximately $900,000 represents developer fees contributed for that specific purpose and already collected. The balance would be from one time monies. Council Member Daly. He noted there is a zero balance in the summary document of the budget for capital improvements for the Fire Department. He asked if some of the improvement projects should be showing up in capital projects. Chief Bowman explained that it shows zero because Public Works projects for municipal facilities are consolidated as part of the Public Works Department who manage the award and bidding. Public Works projects of this nature are all contracted out. Data Processinq Director, Janet Mace - Data Processinq Department: RAP page 69. 1991/92 - $6,921,634, 1992/93 - $6,673,964 - non-general funded departments reductions effected by reduced demands from general funded departments - 1991/92 - $874,290, 1992/93 - $516,058. Data Processing Director, Janet Mace. She pointed out that as reported by the City Clerk automation and office automation procedures implemented in the City are beginning to show productivity gains and t~ereby the ability to reduce or control the growth of staff. One project of note is a capital project. The replacement of the aging Mafis or financial system of the City. The software is now 14 years old. They have begun to establish reserves and this project will be accomplished through those reserves. 362 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Finance Director, Georqe Ferrone - Finance Department: RAP page 68. 1991/92 - $7,331,161, 1992/93 - $7,516,116. No capital improvements. Expenditure reductions, 1991/92 - $42,155, 1992/93 - $144,184. Public Utilities General Manaqer, Ed Aqhjayan - Public Utilities Department: RAP pages 58-61. 1991/92 - $240,834,880. Capital improvements $36,030,100. Total $276,864,980. 1992/93 - $264,843,571. Capital improvements $32,829,646. Total $297,673,217. Ed Aghjayan, Public Utilities Director. Me reported on the implementation of the management audit of the Public Utilities Department which he initiated starting last October and completed during the last quarter. The audit identified $1,000,000 in short-term savings for the next fiscal year which has been built into the proposed budget for the next year. In addition, it identified 1.6 million dollars in long-term additional savings which can be implemented in subsequent years as the changes are made. Five management positions have been eliminated. The budget shows a decrease in the number of positions from previous years. He then explained why the need for a rate increase in the electric and water utility. Even with the 4.5% rate increase in the electric utility effective September 1, rate comparisons with Edison are favorable. Southern California Edison had a 6.8% general increase on January l, 1991 and is currently proposing an additional 7.7% increase next January 1, 1992 - 8.2 of that for residential customers. Currently the city's rates system wide are 12% below Edison and as much as 20% below in the residential area. In the water area, the 5.5% increase recommended for September 1, would be in addition to the 6% already approved by the City Council making a total maximum increase of 11.5%. To justify that, on July 1, 1992, there will be a 16% increase in the wholesale cost of water to the City from the Metropolitan Water District (MWD). In addition they are anticipating a 15% reduction in sales levels to meet conservation goals. 1.9 million dollars has been budgeted for conservation programs with approximately $800,000 funded from outside sources. If the 15% goal reduction is not met, the Utilities is subject to 2.5 million dollars in fines from MWD. In addition, the Utilities can earn $600,000 in payments from MWD should they meet the ggals. There is a strong economic incentive to reach the goals. He emphasized, without the conservation programs, rates might be higher. With all of that, the City's water rates are in the bottom one third (1/3) of the water rates in the County. Mr. Aghjayan then answered questions posed by Council Members for purposes of clarification that even with the 5.5% increase in water above currently approved levels, the City is still in the bottom one third (1/3) of rates charged in cities in Orange County. Relative to the electric utility, with a 4.5% increase on September 1, 1991, right now it is about 12% system wide lower than Edison across the board. For some residential customers the City Utility is as much as 20% below Edison. Edison has already proposed a 7.7% increase on 363 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. January 1, 1992. He clarified for Council Member Daly that he believes the 5.5% for electric is all that will be needed for the coming twelve months. They are also looking at some sizeable potential refunds from rate cases with Edison that are in the process of being settled and which have not been figured into any revenue scenario. Hopefully those will come during the next fiscal year which would put the Utilities in a good position to stabilize future rates. Mike Bell, Financial Services Manager, also answered questions posed by Council members regarding the amounts of refunds in rate cases received over the last year as well as the amounts they are expecting in the near future. He also answered questions posed on increases or decreases in figures reflected in the budget, one instance being a $20,000,000 increase in the 1992/93 budget due to the acquisition of the San Juan Generating Station that will be completed and brought into service in that time period. It is replacing other power supply cost which the City would otherwise have to obtain either from Southern California Edison or other Utilities. It would ultimately reduce the power cost to the City of Anaheim rate payers. Mr. Aghjayan also confirmed that relative to the Management Audit, the cost is under $100,000. The annual savings will be immediate, estimated to be over $1,000,000 in next year's budget. Two years hence, when other re-organizations are implemented, there is a potential for another 1.6 million dollars making a total of 2.6 million dollars annually in savings. Council Member Daly. He does not see the Undergrounding program highlighted as one of the major objectives for the coming year. The Undergrounding program has been a priority of the Council. He asked how much is being budgeted for this program. Ed Aghjayan. The formula the Council approved will raise about $2,000,000 for the year out of rates. In-house design work is underway and the start of the program imminent. Staff is looking at the possibility of short-term borrowing to expedite years three, four and five of the program. One of the problems with the way the program was funded, during the first five years they will raise about $21,000,000 in revenues and the second five years about $40,000,000 but they do not want to have to wait five years. One option is doing some short-term borrowing and moving the $10,000,000 dollars from the second five years to the first five years. They are going to be working on those numbers, informing the Public Utilities Board about the cost, and bringing that concept back for Council review. Library Director, William Griffith - Library Department: RAP pages 26-27. 1991/92 - $5,936,440, 1992/93 - $6,078,096. No capital improvements. Expenditure reductions 1991/92 - $499,851, 1992/93 - $429,579. Bill Griffith, Library Director. To achieve the expenditure reductions, they are proposing to close all branch libraries on Fridays along with a sharp reduction in the book budget. On the plus side, they are moving forward with some other projects which will 364 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. enhance services to the community. Barbara Whorton, Chairman of the Library Board. She has two issues she would like to raise - the first is having to limit library hours with the closing of the four library branches on Fridays to meet budget restraints. This is regrettable as far as the public is concerned and she hopes that something can be done to avoid the closures. Secondly, there have been many complaints about the inadequacy of the parking lot at the main library. The board is working with the City to find innovative ways to redo the spaces and will be submitting plans that they hope will solve the problem. Discussion then followed between Council members, Mr. Griffith and the City Manager wherein concern was expressed by Council Members Ehrle and Daly on the proposed Friday closure of branch libraries and whether there are other alternatives such as reducing Friday hours instead of eliminating them, etc. Council Member Bob Simpson entered the Council Chambers. (3:35 p.m.) Mayor Hunter opened the public hearing to anyone who wished to speak on the proposed 1991/92 Resource Allocation Plan. The following people spoke: Dick Clark, Manager of Facilities at Rockwell International, Anaheim. Rockwell has been in Anaheim for 30 years and employs 6,000 people. He applauds City action to date on expenditure reductions but there still remains a 9.8 million dollar deficit. He understands the Council is considering an additional Utility Tax of 3% to 4% (Mayor Hunter interjected and stated it is not an additional tax but it will be the first such tax). The business community does not have the option to raise taxes. They must take whatever action is necessary to live within their budget. The proposed increase is a business issue. They cannot pass 'on the increased cost. They are asking that the Council makes it decision with the knowledge that those in the business community cannot accept a further increase and are requesting that the Council reject the additional tax initiative and join the business conu~unity in reducing cost. Bob Kazarian, 1463 Westmont Drive. He agrees that the Utilities cannot stand anymore taxation. There is in reality an existing utility tax since 4% of the revenue of the public utilities is turned over to the City's General Fund. It is not called a tax but it requires a 4% higher revenue if not in place. He agrees with the previous speaker that the Council should take a serious look and have the City live within its means. He opposes a Utility Tax. Dennis Iveson, Chairman of Anaheim Firefighters for a better Government. He is also a taxpayer and has to live within a salary. He is concerned with the thought of losing services he values so highly. He not only works on the fire engine proposed to be taken out of service, but that engine also serves his neighborhood. The lawns at City parks and trees in front yards do not grow any slower during an economic decline. Fires and requirements for police 365 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. protection do not decrease because the value of the dollar decreases. Relative to the previously proposed blue ribbon committee to privatize services, to comprise such a committee entirely of members of the chamber is one dimensional and one sided. It should be a committee of all citizens and possibly someone from the local colleges with background in finance. The City's budget problems are not unique just to Anaheim. Cities are being asked to pick up a greater portion of the financial responsibility because the County, State and Federal Governments are in bad shape. There being no further persons who wished to speak, Mayor Hunter closed the public hearing. Mayor Hunter. The Council has before it four proposed ordinances which where given first reading at the June 11, 1991 meeting, Alternates, A, B, C and D. Council Member Bob Simpson offered Ordinance No. 5236 for adoption, Alternate A, a 4% Utility Users' Tax without cable TV but adding a sunset clause for two years and that the remainder be 1% for public safety and outreach programs. Before further action was taken, Council Member Pickler stated he is not ready to vote on the Utility Users' Tax. He referred to the City's Five Year Capital Improvement Program of 79.5 million in 1991/92 and 45.5 million in 1992/93 made up of priority categories A, B and C. He suggested a way of getting the 9.8 million shortfall would be to do the Capital Improvements in the #A# category and perhaps some of the "B's" but eliminating the #C# category and then some of the B projects. He feels that a lot of people will be hurt by a 4% Utility Users' Tax and that it would be permanent instead of temporary. If the 4% tax is approved then it implies they have no worries. In two years they will have to look at the situation again and he feels they will maintain the tax. Further, he does not know if he would be agreeable to leaving out cable TV or not. He feels the Council has not looked at the plan close enough and are rushing into something they might regret. City Manager Ruth. Variations in the capital improvement programs have to do with carry over programs. Most is not general fund money but special fundings from grants, federal and state monies, etc. In budget deliberations, he personally expressed concern to the Council putting almost no general fund money into infrastructure of the City which is dangerous. 0nly where the City has had to match federal and state money with local money has any money been contributed from the City's general fund in the last few years. He sees that as a dangerous trend for a C~ty like Anaheim. With respect to the balance of the concerns expressed, the shortfall is 9.8 million. Ten (10) million has been cut out of the budget and those have been hard cuts. They are not superficial. Ninety-seven (97) positions have been eliminated and that is a reduction in service. It is a difficult time for the economy throughout the country. There is also an expectation to protect the residents. When staff looked at the budget and identified $10,000,000 in hard cuts, they also identified an additional $10,000,000. If the Council wanted to consider moving into that $10,000,000 it could be done but not 366 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. without a significant and dramatic impact in the level of service in the City. There is no way the Council could protect police and fire. Those budgets represent 54% of the budget of the City. The remaining 10 million would have to come out of the remainder of the departments. There is a dramatic impact in not going ahead with some kind of revenue enhancements. He realizes it is a difficult decision on the part of the Council. There is information coming in on an hourly basis that sales tax expectations are down another $900,000 beyond expectations which the City was to receive July 1. The news the City is getting is not good. Additional cuts will have to be made as well as monitoring every vacant position in the City and managing very prudently to meet service demands. It allows for no increase in levels of service unless Council considers the 'revenue enhancements. There is no good time to increase taxes and it is a major policy decision the Council will have to make. When the City has had to do other things, the money has been taken from the General Benefits Fund. He asked why they could not take $10,000,000 and see what is going to happen in another year. City Manager Ruth. In taking $10,000,000 out of the General Benefits Fund the City loses interest on the money. That fund has been an asset to the City in terms of the City's overall bonding capabilities where the City has had a high level bonding rating as a result of the good reserves set aside. Anaheim is the only City in the country he is aware of that is 100% funded for its liabilities. It is a major impact on all the bonding companies. It is a benefit to the taxpayers of the City in terms of that bond rating and the fiscal solvency of the City. He would not recommend taking the money from the General Benefits Fund for the reasons just given. There is some hazard in doing so. The City has done it before, but not to this magnitude. 4.7 million dollars was taken out for the Melodyland acquisition but that is an asset to the City. Anything taken out for the Arena is to be payed back out of the bonds. About $5,000,000 was taken out to balance the 1990/91 budget. The other funding was from the Transient Occupancy Tax (TOT) - the 1% increase that generated about 2.5 million dollars a year to pay the bonds on the arena land acquisition. It was not general funded. He confirmed for Council Member Simpson that they pledged the Melodyland Acquisition as an asset against the General Benefits Fund. Council Member Daly. He notes that the agenda states that there is to be a response to the Chamber of Commerce Blue Ribbon Committee report. City Manager Ruth. The chamber had made their presentation last week and the response was filed for Council's information. They recognize that management had done a good job and did not recommend any tax increase. They felt the City should cut additional services to come up with the $10,000,000. City Attorney White. Speaking to the ordinance offered by Council Member Simpson and the two provisos offered with it, relative to the sunset provisions, of the four variations offered for introduction last week, none currently contain a sunset provision. Therefore, it would be impossible today to adopt an ordinance that contains that provision. There are three alternatives available today - one is that the Council could defer action on the ordinance, reintroduce it today with a sunset provision and adopt it at a 367 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. subsequent meeting. However, the budget still must be adopted in a balanced condition by June 30, which may be a problem. The second would be to adopt one version of the ordinance today and come back at a later date with an amendment which would contain a sunset provision providing that the ordinance disappear in two years. A third alternative and something which other cities have done is to adopt the ordinance without a provision that sunsets it but by separate motion instruct city staff to agendize it for two years hence for reconsideration at that time when it would either be repealed or left in effect. The City Attorney continued with regard to earmarking a portion of the tax, under Article XIII-A of the California Constitution, he could not recommend earmarking a portion of this tax or any tax for a particular purpose. Doing so without going through the procedure set forth in the State Constitution would invalidate the tax. There is an option to doing that. At the time the City Council by motion approves the resource allocation plan for this year the Council could as part of that motion or by separate action determine a portion of funds to be set aside from the General Fund from any source but not earmarked for particular purposes. If the Council wishes to earmark funds that it be done in connection with adjusting the Resource Allocation Plan and not with adopting a particular financial mechanism. City Manager Ruth. Relative to a sunset clause basically the Council reviews the budget each year. Any ordinance they adopt can be modified or changed. Whether they need the sunset provision or not is something the Council has to answer. In looking at the budget each year, if the economy changed, the Council could reconsider and modify/reduce the Utility tax if the revenues were there. Council Member Ehrle. The Council has been working on the budget for the past nine months and are not rushing into anything. Government's role is to provide services to the people especially in the area of public health and safety and not to create jobs. This is the most difficult budget he has had to face over the four budgets he has been involved in. A few months ago they had to freeze personnel and have ultimately eliminated 97 positions and cut-S10,000,000 from the budget. The Council has to decide whether to cut another $10,000,000 which will affect personnel and services especially in police and fire and he is not willing to do that. The user fee being proposed will not be that costly to the average homeowner - perhaps $5 or $6 a month to maintain the level of police and fire services the City provides. Every service is essential and they should not as a City go backwards. Further, relative to the user tax, he does not favor including cable TV in his vote. The Public Utilities Commission in Washington at this time does not consider cable TV a public utility. He supports Council Member Simpson's proposal of a 4% tax with a sunset provision, however, that sunset provision can be accomplished well at the same time designating a percentage for police and fire and, if possible, increase that percentage so that they can get to the point of being able to add an additional 40 or 50 officers in the next 18 months. Council Member Daly. Anaheim is different from surrounding cities because it has facilities other cities do not have - golf courses, the Convention Center, the Stadium and owns its own Utilities putting Anaheim in a unique and better 368 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. revenue position than other cities. What mystifies him is how the City can be so badly out of balance when there is a $20,000,000 revenue from bed tax (TOT) and a $10,000,000 transfer from Utilities that other cities do not have. The few cities that have adopted utilities taxes do not own their own utilities and are not able to transfer funds to their general fund. He would like the City Manager to describe how the City's revenues and expenditures got to this point and, with all the extra revenue, why they have to return to the taxpayers. City Manager Ruth. This is a unique year in the economy throughout the nation. To anticipate a $20,000,000 shortfall in revenues was impossible. Nevertheless they have made a major move in shrinking the organization and responding to that economy which certainly should not end just this year. Some of the problem has to do with labor agreements that have been approved, some with the economy, some with major improvements in the City that had been made over a period of years - it is a combination of many of those things. Relative to the Transient Occupancy Tax, there is a transfer, into the general fund. What people do not realize, once debt service is paid at the Convention Center as well as the operating cost, the balance goes into the general fund but there is also a demand on police and fire services and other public services in the City. There is an expectation to address those issues. The money goes right back to providing additional police officers, fire and maintenance services in the tourist recreation area. Mayor Hunter. The reason they are raising taxes is because the Country is in a recession and the City is raising taxes to preserve the public good and to maintain quality of life for the citizens of Anaheim. When he was elected Mayor, he accepted the responsibility to maintain the health, safety and welfare of the citizens. If, in fact, they have to improve a 4% Utility Users' Tax to accomplish that, he as Mayor accepts that responsibility after weighing the options. It is a balancing act - the Utilities tax is preferable to the alternative - that being to put hundreds of city employees out of work and drastically cutting a large number of vital city services. For the four or five years he has been on the Council, he has heard the Council say a number one priority is to fight crime and drugs. This commitment was by resolution but in the past eight months, they have given nothing but lip service to that commitment. When they impose the 4% tax, he is ordering the City Manager and the City Attorney to come up with a way, out of general funds, to hire police officers. The number one concern he hears from constituents is crime and drugs. The Council has not implemented any strategic plan to fight drugs in th~ City. They hav~ an oDDortunit¥ to do so by £nltlat£ng a 4% U~l~y Users' Tax. The Public Utility's director reported because the City owns it's utilities, the rate for some residential customers is 20% under Edison and the commercial rate 12%. The City's golf courses pay for themselves. Not one dime comes out of the General Fund for the golf courses and Anaheim Stadium. Every time the Transient Occupancy Tax was raised, every bit went into the Convention Center for Betterment II, III and soon Betterment IV. The City has the largest Convention Center in the west. He is proud to go to either facility, the Convention Center and the Stadium or the golf courses and parks. He is not going to lessen the quality of life in the City, not as long as he is Mayor and if they have to institUte a 4% Utility Users' Tax, then they must do so. They are going to have to bite the bullet on hiring more police. After they institute the Utility Users' Tax, it is imperative that they institute 369 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. a policy for the City Manager to hire more police officers. Council Member Pickler. The Mayor stated the City should be run as a business. There are a lot of businesses in the City who, because of the recession, have cut their personnel to 1/2 or even more and some are asking their employees to accept less just to stay open. The citizens gave a resounding no on an advisory vote proposing additional taxes in the March Special Election. The City has to have more police but he does not believe the Utility's Tax is the answer or the Transient Occupancy Tax. When they raised the TOT 1% for the Arena at that time he recommended that they put it into the Police Department but he was the only one. The fact that they have to raise taxes because of the recession is wrong. It is time to say no. Council Member Simpson. He asked the City Manager to again clarify that if they go any deeper into budget cuts they are going to have to cut public safety; City Manager Ruth clarified that the next level of cuts requires cutting about 37 sworn police officers. Council Member Simpson. He also asked for clarification if they cut 10.7% across the board it will be 10.7%, but if they exempt public safety, it will be 23.8%; City Manager Ruth stated that was correct. Council Member Simpson. He is not willing to do that. City Manager Ruth. The concern he has on one hand they are talking about adding additional safety personnel. If that is done and they sunset the tax in two years, that money goes away. If the bodies are hired and the money is gone, it is something that the Council has to consider in terms of a policy decision. Mayor Hunter. He noted that City Attorney White stated that the Council as one alternative can bring the matter back every year for a review; Council Member Simpson stated that was his intent. Council Member Daly. There is no time like the present to live within ones means. His counter proposal would be to ask the City Manager to sharpen his pencil and to look at private contracting for service. He feels that a lot of City operations that are now profit centers could be more profitable if run like a business. The City's overhead is too high. City Government is "bloated# and they do not need to raise taxes. Council Member Hunter offered Ordinance No. 5236 for adoption, adding Chapter 2.13 to Title 2 of the Anaheim Municipal Code establishing a Utility Users' Tax of 4% without cable TV. 171: ORDINANCE NO 5236 FOR ADOPTION: WAIVER OF READING - ORDINANCE: The title of the following ordinance was read by the City Clerk. (Ordinance No 5236) Council Member Hunter moved to waive the reading in full of the ordinance. Council Member Simpson seconded the motion. MOTION CARRIED. 370 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Council Member Simpson offered Ordinance No. 5236 for adoption. Refer to ordinance Book. ORDINANCE NO. 5236 - ADOPTION: AN ORDINANCE OF THE CITY OF ANAHEIM ADDING CHAPTER 2.13 TO TITLE 2 OF THE ANAHEIM MUNICIPAL CODE ESTABLISHING A UTILITY USERS' TAX. (4%) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Simpson, Ehrle and Hunter Daly and Pickler None The Mayor declared Ordinance No. 5236 duly passed and adopted. Council Member Daly. Last week they talked about a study to look at privatization in the City. The latest example where the private sector is involved will be in the operation of the Arena. There are quite a few other parts of the City Government operated by the private sector but he believes they could do a lot more. He would like to ask the Council to direct staff to convene a committee to look at privatization in every City department, that each Council member have one appointee and in addition that there be three members of the Chambers of Commerce to serve on the committee. His purpose in recommending each member of the Council have an appointee is to make sure that homeowners, employee groups, etc., would be represented on the committee. MOTION: Council Member Daly moved to convene a committee to look at privatization in every City department and that members of the committee be appointed as outlined. Council Member Pickler seconded the motion. Before a vote taken, Mayor Hunter stated the City whenever possible privatizes. He (Daly) presented that proposal to the Chamber of Commerce at the Lake Arrowhead meeting. The City has ushers at Anaheim Stadium where somebody suggested privatization. Those ushers are paid $7 an hour. He questioned how far down they could go. Anaheim has such a quality stadium because quality people are working there. He would not be in favor. Privatization sounds good but it is a matter of getting quality people to maintain quality service. Council Member Daly. G01f courses across America are operated privately - some publicly. The City could maintain a high level of service by contracting out some services. Since the Arena will be contracted, why not the Convention Center and the Stadium. He asked why not do a serious study of some of these enterprises before raising taxes. Mayor Hunter. They have the City Manager, the Public Utility General Manager the Director of Maintenance, the Director of Parks, Recreation and Community Services - all the staff in the City whose job it is to try to get quality work for the best price. It would be like setting up a police commission to have someone looking at somebody else. Members of the Chambers and other people would be scrutinizing Police Chief Molloy, Fire Chief Bowman, the Director of Maintenance, etc. He does not feel they should set up a committee to do that. 371 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. It is better to have the City Manager and department heads discuss the issue rather than having the Council appoint a committee. He sees it as a waste of time. Council Member Simpson. Council Member Daly's proposal is questioning the integrity of the City Manager and his staff - it is not fair. Council Member Daly. He believes they can look again. There are existing departments where opportunities for contracting exist. He believes there are other costs savings to be obtained if they look honestly and hard. That is his proposal. A vote was then taken on the foregoing motion to set up a committee to look at privatization wherever possible in the City and failed to carry by the following vote: Ayes: Daly and Pickler Noes: Simpson and Hunter Abstained: Ehrle Council Member Ehrle. The reason he abstained is to offer a substitute motion. An earlier presentation by the Public Utility's General Manager reported on the Management Audit of the Public Utility's Department that took place this year ultimately resulting in a reduction of some positions with a cost savings projected in the long term of $2,000,000. The cost of the audit was approximately $100,000. It was a business-like approach with professionals doing the audit. He suggested that the Council with the direction of the City Manager retain a professional - one of the "big six' auditing firms to do the same City wide with the process to take place over the next nine months before the next budget session so that the Council could evaluate the findings. He noted it has been several years since the Arthur Young Audit took place in the City. A brief discussion took place on the proposal during which City Manager Ruth reported that the Utility's Audit cost $100,000 for one outside consultant which was supplemented by an analyst team from the City. The cost city wide would be approximately one-half million dollars. The City right now has over $9,0000,000 in contract services through General Fund Operations. He feels the City has been diligent in this area. If it is Council's desire to have staff continue to look at those things, they are doing that and have continued to do so. He is committed to running the City as efficiently as possible as well as the employees. When they have found it appropriate to contract services out, they have done so. Of the $9,000,000 contracted out, none was initiated by the Council but by City staff. No further action was taken on this issue at this time. WAIVER OF READING - RESOLUTION: The title of the following resolution was read by the City Clerk. (Resolution No. 91R-176) Council Member Hunter moved to waive the reading in full of the resolution. Council Member Ehrle seconded the motion. MOTION CARRIED. 372 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Council Member Hunter offered Resolution No. 91R-176 for adoption, establishing a class of persons exempt from the Utility Users' Tax set forth in Chapter 2.13 (individuals in households with annual gross income of less than $20,000). Refer to Resolution Book. RESOLUTION NO. 91R-176: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING A CLASS OF PERSONS EXEMPT FROM THE UTILITY USERS' TAX SET FORTH IN CHAPTER 2.13. OF TITLE 2 OF THE ANAHEIM MUNICIPAL CODE. Before a vote was taken, Council Member Daly asked how the exemptions were going to be regulated. City Attorney White. The obligation will be upon the service user to submit proof to qualify for the exemptions. The ordinance provides that forms will be established and users will have to fill out the forms and provide tax information to certify to the City that they do qualify. Council Member Daly then posed questions which were answered by the City Attorney relative to certain aspects of the user tax, one being the rationale for not including cable TV. The City Attorney stated from a legal stand point, he has no difficulty including cable TV. Council Member Ehrle is correct when he reports that cable TV has not been held to be a public utility. That is a different issue from the issue of being able to impose a tax upon the user of cable TV service. Many cities have imposed the tax on cable TV. There are reported apellate court decisions in this state upholding those. From a legal stand point, he would have no preference whether they include it or not. The only limitation would be not to impose the tax in a discriminatory manner on cable TV where they would be paying more than gas, water or electricity and thus imposing an undue burden. It is solely a policy matter. A vote was then taken on the foregoing resolution. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Simpson, Daly, Pickler, Ehrle and Hunter None None The Mayor declared Resolution No. 91R-176 duly passed and adopted. ADJOURNMENT: By general consent the Council adjourned the adjourned regular meeting of June 11, 1991 held on June 18, 1991. (5:00 p.m.) LEONORA N. SOHL, CITY CLERK 373 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Daly, Pickler, Ehrle and Hunter COUNCIL MEMBERS: Simpson CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANCE FINANCE DIRECTOR: Ed Zacherl PROGRAM DEVELOPMENT AND AUDIT MANAGER: Ken Stone MAINTENANCE DIRECTOR: John Roche ZONING DIVISION MANAGER: Greg Hastings CODE ENFORCEMENT MANAGER: John Poole EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 2:45 p.m. on June 14, 1991 at the Civic Center kiosk, containing all items.as shown herein. Mayor Hunter called the meeting to order at 3:00 p.m. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session to consider the following items: 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 Superior 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. By general Consent, the Council recessed into Closed Session. (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. (5:45 p.m.) 374 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. INVOCATION: In lieu of an invocation a moment of silence was observed. FLAG SALUTE: Council Member Tom Daly led the Assembly in the Pledge of Allegiance to the Flag. 119: PRESENTATION - DONATION TO ANAHEIM MUSEUM: Later in the meeting (7:12 p.m.) Mayor Hunter welcomed Mr. Yuichi Hataya of Mito Japan, Anaheim Sister City. Mr. Hataya is also Honorary Mayor of Anaheim. Mr. Hataya then presented to the Mayor a check for $10,000 for the Anaheim Museum. One hundred thousand dollars ($100,000) is pledged from Mr. Hataya to give to the Anaheim Museum. Mr. Hataya, speaking through his interpreter, referred to the statue that was recently dedicated in Mito as a symbol of friendship between Anaheim and Mito. He thanked Council Member Pickler for attending the dedication. He then introduced members of his family and friends who were present with him this evening. He also presented a gift to Mayor Hunter - a handmade wooden prosperity doll. Mayor Hunter accepted the gift on behalf of the City and thanked Mr. Hataya for the kindness. The doll will be transferred to the Anaheim Museum for display. Mayor Hunter and Council Members then expressed their thanks and gratitude for all that he (Hataya). has done for the City of Anaheim. 119: PRESENTATION - CERTIFICATES OF RECOGNITION: Certificates of Recognition were then presented to all of the City volunteers who gave of their time to staff the Winter Homeless Shelter during the last period when the shelters were open to the homeless. The volunteers honored were: Melanie Adams, Darrell Ament, Ralph Anzevino, Jim Armstrong, Pam Boulan, Pam Broberg, Thom Coughran, Minnie Crane, Mark Deven, Debbie Fank, Doug Faulkner, Richard Garcia, Randy Gaston, Greg Hastings, Danielle Hernandez, Tim Hewett, David Hill, J. Richard Hogate, Chris Jarvi, Jack Johnson, Bill Land, Guy Lefebure, Susan Leone, Barbara Kasch-Leshinksi, Joe Mohammed, Kevin Moore, Kathy McCarthy, Garry McRae, Yolanda Patterson, Connie Phillips, John Poole, Sue Richmond, Ron Rothschild, Dennis Schmidt, Angie Spencer, Anthony Stashik, Wendell Stephens, Russ Stevens, Steve Swaim, Mary Ann Terry, Louie Vecchione, Cheryl Westbrook. Mayor Hunter and Council members expressed their gratitude for the volunteer services given by the City Employees. 119: DECLARATION OF RECOGNITION: A Declaration of. Recognition was unanimously adopted by the City Council recognizing Jan G. Hagen, Fire Batallion Chief, for his 25 years of dedicated service to the City and citizens of the community. The declaration is to be presented to Mr. Hagen at a later date. MINUTES: Approval of the minutes was deferred to the next regular meeting. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $7,503,380.01 for the week ending June 14, 1991, in accordance with the 1990-91 Budget, were approved. Mayor Hunter recessed the City Council meeting until after the Redevelopment Agency and Housing Authority meetings. (6:00 p.m.) 375 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Mayor Hunter reconvened the City Council meeting. (6:02 p.m.) WAIVER OF READING - RESOLUTIONS/ORDINANCES: The titles of the following resolutions and ordinances were read by the City Manager. (Resolution Nos. 91R-177 through 91R-187, both inclusive, for adoption; Ordinance No. 5235 for adoption and Ordinance No. 5237 for introduction.) Council Member Hunter moved to waive the reading in full of the resolutions and ordinances. Council Member Ehrle seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member Hunter, seconded by Council Member Ehrle, 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. 91R-177 through 91R-187, both inclusive, for adoption; Ordinance No. 5235 for adoption and Ordinance No. 5237 for introduction. Refer to Resolution/Ordinance Book. Al. 118: The following claim was filed against the City and action taken as recommended: Claim rejected and referred to Risk Management: a. Claim submitted by Orange Crest Development, Inc. for propert~ damage sustained purportedly due to actions of the City on or about April 17, 1991. A2. 105: Receiving and filing minutes of the Public Utilities Board meetings held May 2 and May 16, 1991, and the regular adjourned meeting of May 17, 1991. 117: Receiving and filing a Summary of Investment Transactions from the City Treasurer, for the month of May, 1991. 173: Receiving and filing a Notice of Application before the Public Utilities Commission of the State of California from Daniel Boggero and Claudia Boggero, dba Tourist Express Co., for Certificate of Public Convenience and Necessity to establish a passenger stage to transport tourists between points within Los Angeles County and Orange County to tourist attraction points. A3. 169: Awarding the contract to the lowest and best responsible bidder, R.J. Noble Company, in the amount of $85,943.57 for Magnolia Avenue Street Improvements, La Palma Avenue to Crescent Avenue. A4. 169: Awarding the contract to the lowest and best responsible bidder, R.J. Noble Company, in the amount of $78,197.13 for Broadway Street Improvements - Greenwich Street to Gilbert Street. A5. 175: Awarding the contract to the lowest and best responsible bidder, J.W. Contracting Corporation, in the amount of $2,269,200 for modification of Olive Hills Reservoir Complex; 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. 376 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. A6. 158: Authorizing the payment of $20,927 to Nu Anaheim Limited Partnership, pursuant to agreement on file, for business relocation payments for loss of rental income during the reconstruction of four commercial storefronts located at 721, 723, 725 and 727 North Anaheim Boulevard - North Anaheim Boulevard Street Widening Project (R/W 3500-39). A7. 158: Authorizing the payment of $50,623 to Larry R. Haupert, pursuant to agreement on file, for final modifications to his building located at 740 North Anaheim Boulevard - North Anaheim Boulevard Street Widening Project (R/W 3500-50). AS. 176: RESOLUTION NO. 91R-177: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING ITS INTENTION TO VACATE CERTAIN PUBLIC STREETS, HIGHWAYS AND SERVICE EASEMENTS. (Abandonment No. 91-4A). (Suggested public hearing date July 16, 1991, 6:00 p.m.) A9. 175: Approving the withdrawal of the bid submitted by H. Martin & Sons, Inc. and awarding the contract to the lowest and best responsible bidder, Orion Construction Corporation, in the amount of $559,941 for Emergency Power for Wells 40 & 41; 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. Al0. 175: Approving a Notice of Completion of the Liner construction for Well #36 by West Coast Drilling, Inc., and authorizing the Mayor.to sign and the City Clerk to file said Notice of Completion. All. 169: Approving the extension of the contract completion date by five days; assessing liquidated damages for thirty-six days, in the total amount of $13,104; and approving a Notice of Completion of the construction of South Street and Sunkist Street Storm Drain Improvement by Desatoff Construction Company, and authorizing the Mayor to sign and the City Clerk to file said Notice of Completion. Al2. 169: RESOLUTION NO. 91R-178: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ENDORSING CRITERIA FOR MASTER PLAN OF ARTERI~tL HIGHWAYS CONSISTENCY (MEASURE Al3. 123: RESOLUTION NO. 91R-179: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE DIRECTOR OF PUBLIC WORKS - CITY ENGINEER TO EXECUTE AN AGREEMENT FOR FUNDING UNDER THE STATE LOCAL PARTNERSHIP PROGRAM FOR HIGHWAY IMPROVEMENT PROJECTS. (State-Local Entity Master Agreement No. SLTPP-5055.) Al4. 170: Approving the amended Subdivision Agreement of Tract No. 11856 with Clyde and Joan $chlund, and authorizing the Mayor and City Clerk to execute said Agreement. Said tract is located at 610-616 East Peralta Hills Drive and 4640 East Cerro Vista Drive. Al5. 160: Accepting the low bid of Dynix, Inc., in an amount not to exceed $471,301 and authorizing the Library Director to negotiate a contract for 377 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. providing all hardware and software equipment, installation, training, and maintenance, in accordance with Bid #4938. A16. 160: Accepting the low bid of Deco Utility Supply Corporation, in an amount not to exceed $33,474.46 for 40,000 feet of 653.9 KCMIL cable, in accordance with Bid ~4940. Al7. 160: Accepting the low bid of Gelco Space, in the amount of $37,424.78 for a modular office structure at 'Dad" Miller Golf Course, in accordance with Bid ~4947. Al8. 123: Accepting the bid of Ail City Management Services, Inc., and approving an Agreement with Ail City Management Services, Inc., in an amount not to exceed $407,756 annually, for School Crossing Guard Services (commencing July 1, 1991, with option to extend annually for two years), in accordance with Bid #4932. A19. 160: Authorizing the Purchasing Agent to issue a change order to OCE' Business Systems, in the amount of $35,952 (for a total cost of $58,380) for the upgrade of a copier to be located in the Police' Department for an additional period of 60 months beginning July 1, 1991. A20. 123: Approving an Agreement with the County of Orange, in the amount of $19,000 for the relocation of the City's 6" water main located within Chanticleer Road from Perdido Street to Antigua Street, within Perdido Street from Chanticleer Road to Guinida Lane, and within Guinida Lane from Perdido Street to Antigua Street. A21. 158: RESOLUTION NO. 91R-180: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS CONVEYING TO THE CITY OF ANAHEIM CERTAIN REAL PROPERTIES OR INTERESTS THEREIN. A22. 107: ORDINANCE NO. 5235 - ADOPTION: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 1.01.391 OF THE ANAHEIM MUNICIPAL CODE RELATING TO CODE ENFORCEMENT. (Enforcement of fire lane and fire hydrant obstruction violations.) (Introduced at the meeting of June 11, 1991, Item Al5.) A23. 123: Approving an Agreement with English Today Institute for their use of Ponderosa Neighborhood Center at no charge, to provide English as a Second Language classes for community residents. A24. 123: Approving Agreements with the following 18 firms for contract programming and/or consulting services: The Professionals; Krystal Solutions; Business Consulting Associates; Hawkins & Co.; John Cappelletti Associates; Computer Tek, Data Design Corporation; Computer People, Inc.; International Management Systems Corp.; EMJAY; Harte Enterprises; P. Murphy & Assoc.; SAMCO; Systems Software; Partners Consulting; EXECUSOFT; Sizemore Computer Services and D B Microware. Mr. Jeff Kirsch requested to speak and asked if there was a total amount for all of the consultant agreements proposed for approval under this item. 378 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. City Manager James Ruth reported that as outlined in the June 18, 1991, staff report from the Data Processing Director, contract programming and/or consulting services for Fiscal Year 1990/91 is projected to be $1,641,366 and the estimate for Fiscal Year 1991/92 is $1,247,820. A25. 179: Scheduling a public hearing to consider the termination of Conditional Use Permit Numbers 1703, 2525, and 3052 pursuant to the provisions of the Anaheim Municipal Code, Sections 18.03.091 and 18.03.092. (Suggested public hearing date: July 9, 1991.) This item was removed from the Consent Calendar for separate action. A26. 113: RESOLUTION NO. 91R-181: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN TWO YEARS OLD (City Attorney general correspondence, 1978-1988). A27. 123: Approving an agreement with the County of Orange to provide certain health and sanitation services for the City of Anaheim. 144: ORDINANCE NO. 5237 - (INTRODUCTION): AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 6.68.040 OF CHAPTER 6.68 OF TITLE 6 OF THE ANAHEIM MUNICIPAL CODE RELATING TO FEES FOR PERMITS FOR WIPING RAG BUSINESSES. A28. 124: Approving the 1990/91 write-off of uncollectible Tenant Accounts totaling $34,991.74 from the Anaheim Convention Center. A29. 101: Approving the 1990/91 write-off of uncollectible Tenant Accounts totaling $5,027.40 from the Anaheim Stadium. 'A30. 175: Approving the 1990/91 write-off of uncollectible accounts totaling $1,023,169 from the Public Utilities Department. Council Member Ehrle. Relative to write-off of uncollectible accounts which the Council is required to act on each year is rapidly approaching approximately $2,000,000. He asked if these figures were similar to last year or is the figure escalating due to the recession. City Manager Ruth. The figures have increased undoubtedly related to the recession. As part of the budget process, approval is needed to write-off the uncollectible amounts but staff continues to try to collect those amounts. Ed Zacherl, Assistant Finance Director. The department has worked diligently in trying to improve collection efforts. They have gone from 11% to 16% which on delinquent accounts is considered good in the industry. They are making aggressive stands to improve the collection effort. A31. 129: Approving the 1990/91 write-off of uncollectible miscellaneous and paramedics accounts receivable totaling $764,156.57. A32. 153: Adopting new job classifications, adjusting the salary range for job classifications, and deleting certain job classifications to implement the Fiscal year 1991/92 and 1992/93 Resource Allocation Plan. 379 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. 153: RESOLUTION NO. 91R-182: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 91R-80 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS PROFESSIONAL. 153: RESOLUTION NO. 91R-183: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 91R-79 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS SUPERVISORY. 153: RESOLUTION NO. 91R-184: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 91R-78 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSIFICATIONS DESIGNATED AS ADMINISTRATIVE MANAGEMENT. 153: RESOLUTION NO. 91R-185: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 91R-157 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSES ASSIGNED TO THE GENERAL UNIT REPRESENTED BY THE ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION. 153: RESOLUTION NO. 91R-186: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION No. 91R-49 WHICH ESTABLISHED RATES OF COMPENSATION FOR CLASSES ASSIGNED TO THE GENERAL UNIT REPRESENTED BY THE ANAHEIM MUNICIPAL EMPLOYEES ASSOCIATION. A33. 117: RESOLUTION NO. 91R-187: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (i) DESIGNATING DEPOSITORIES FOR CERTAIN CITY FUNDS, (ii) AUTHORIZING THE CITY TREASURER TO ESTABLISH ACCOUNTS WITH SAID DEPOSITORIES AND DEPOSIT PUBLIC FUNDS OF THE CITY THEREIN, (iii) AUTHORIZING WARRANTS, DEMANDS, DRAFTS AND CHECKS TO BE DRAWN AGAINST ANY ACCOUNTS ESTABLISHED WITH SAID DEPOSITORIES ON BEHALF OF THE CITY, AND (iv) AUTHORIZING THE CITY TREASURER TO OPEN ACCOUNTS WITH FINANCIAL INSTITUTIONS AND CORPORATIONS FOR THE PURCHASE AND SALE OF VARIOUS SECURITIES AND MONEY MARKET INSTRUMENTS. A34. 117: Approving the City Treasurer's Investment Policy Statement, Strategy and Goals for 1991/1992. A25. 179: TERMINATION OF CONDITIONAL USE PERMIT NOS. 1703, 2525 AND 3052: This is pursuant to the provisions of the Anaheim Municipal Code Sections 18.03.091 and 18.03.092 - suggested public hearing date is July 9, 1991. Submitted was report dated June 4, 1991, from the Enforcement Division reconunending the scheduling of the public hearing to consider the termination of the subject conditional use permits. city Manager Ruth announced that Mr. George Adams requested to speak on this item. Mr. George Adams, Orange County Steel Savage Company/Adams International Metals Incorporated. He is requesting a two week postponement on the proposed motion. He believes there is a misunderstanding. All the items discussed with the exception of a couple have been corrected and he believes in the next two weeks those can also be corrected and the whole matter can then be dropped. 380 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Council Member Pickler. If the hearing is set for July 9, 1991, and the problems are corrected, staff will advise the Council accordingly. He would like to have the public hearing before the Council at that time to make sure the items are corrected. He is opposed to any continuance. MOTION: Council Member Ehrle moved to continue the motion to schedule a public hearing to consider termination of Conditional Use Permit Nos. 1703, 2525 and 3052 for three weeks to July 9, 1991. Council Member Daly seconded the motion. Council Member Pickler voted no. Council Member Simpson was absent. MOTION CARRIED. Roll Call Vote on Resolutions: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Daly, Pickler, Ehrle and Hunter None Simpson The Mayor declared Resolution Nos. 91R-177 through 91R-187, both inclusive, duly passed and adopted. Roll Call Vote on Ordinance: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Daly, Pickler, Ehrle and Hunter None Simpson The Mayor declared Ordinance No. 5235 duly passed and adopted. End of Consent Calendar. 106: PUBLIC HEARING - 1991/92 RESOURCE ALLOCATION PLAN: Mayor Hunter opened the public hearing and asked to hear from anyone who wished to speak relative to the proposed revision to various appropriation limits needed to be acted upon in conjunction with'the 1991/92 City budget; there being no response, he closed the public hearing on the appropriations limit portion of the public hearing. WAIVER OF READING - RESOLUTIONS: The title of the following resolutions were read by the City Clerk. (Resolution Nos. 91R-188 through 91R-192, both inclusive, for adoption.) Council Member Hunter moved to waive the reading in full of the resolutions. Council Member Daly seconded the motion. MOTION CARRIED. Council Member Hunter offered the following resolutions for adoption, all as recommended in separate reports dated May 30, 1991, from the program development and audit manager; Resolution No. 91R-188 adopting a revision to the 1990/91 appropriations limitation (to $218,809,283), Resolution No. 91R-189 adopting the annual appropriations limit of $274,805,434 for the fiscal year 1991/92, Resolution No. 91R-190 adopting the Community Facilities District No. 1989-1 (Sycamore Canyon) annual appropriations limit of $121,566,323 for the fiscal year 1991/92, Resolution No. 91R-191 adopting the Community 381 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Facilities District No. 1989-2 (The Highlands) annual appropriations limit of $121,566,323 for the fiscal year 1991/92, Resolution No. 91R-192 adopting the Community Facilities District No. 1989-3 (The Summit) annual appropriations limit of $121,566,323 for the fiscal year 1991/92. Refer to Resolution Book. 106: RESOLUTION NO. 91R-188: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING A REVISION TO THE 1990/91 APPROPRIATIONS LIMITATION (to $218,809,283). 106: RESOLUTION NO. 91R-189: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1991/92. 106: RESOLUTION NO. 91R-190: 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 FOR THE FISCAL YEAR 1991/92. 106: RESOLUTION NO. 91R-191: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM~ CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-2 (THE HIGHLANDS) ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1991/92. 106: RESOLUTION NO. 91R-192: 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 1991/92. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Daly, Pickler, Ehrle and Hunter None Simpson The Mayor declared Resolution No. 91R-188 through 91R-192, both inclusive, duly passed and adopted. PROPOSED CHANGES IN FEE SCHEDULES ITEMS A THROUGH N - PUBLIC TESTIMONY ON THE RESOURCE ALLOCATION PLAN AND CHANGES IN FEE SCHEDULES: Mayor Hunter opened the public hearing and asked to hear from anyone who wished to speak to the proposed fee schedules and/or the 1991/92 Resource Allocation Plan. Mr. Jeff Kirsch, 2261 W. Palais. He asked relative to the proposed fee schedule for solid waste disposal (Item N) what impact it would have on residential rates. Further, with the adoption of the recycling program, he wants to know if such increases will continue. He also asked if the residents are going to see a pay back resulting from labor saving to the contractor since now only one man handles the entire operation under the recycling program. City Manager James Ruth. The problem is the charge back to the City for transferring material to the dump and the cost of dumping. It is transferred back to the consumer. He confirmed that it is a pass through of dump fees. Relative to a payback, ultimately that will happen. Initially there was a tremendous capital investment required to purchase the equipment. It will eventually reduce that-cost but the dumping fees have been passed on to the City and those fees have to be passed to the property owners. 382 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Council Member Ehrle. He recommended that there be a two week continuance before acting on all of the fees so that a full Council was present. He does not believe there is any rush in adopting the fees tonight. City Manager Ruth. Some have already been advertised such as those involved in the summer Parks and Recreation program. It will be beneficial if the Council could act on the fees this evening. Council Member Daly. He shares some of the concern. The Council only received the fee schedules late on Friday. He has not had a chance to go through all of the fees. He asked of the fees proposed for increase, which are the ones scheduled to go into effect as of July 1. He is specifically interested in the Park and Recreation fees (Item D) and sanitation fees (Item M). Ken Stone, Program Development and Audit Manager. Concerning Park and Recreation fees those fees are necessary to go out in the summer recreation brochures which are almost ready to go and could cause delays in class registration. Ron Rothschild, Administrative Services Director. He clarified for Council Member Daly on the recreation fees the effective date is September as well as golf fees, all the rest are effective in July. Council Member Daly. He agrees with Council Member Ehrle on a continuance but only on Item D and N and proceeding with the balance at this time. City Manager Ruth. Item N (sanitation fees) was suppose to be implemented in June. Otherwise, it will miss a full billing cycle. John Roche, Director of Maintenance. Contract limitations with Anaheim Disposal are April 1, they have postponed action all this time. There is a retroactive agreement with Anaheim Disposal to pay those rates back to April 1. If there are further delays, it will be a' more costly item. It is a 6.75% increase to the contractor. The other increase that makes up the 15% is the fee to the County of Orange - the disposal fee increase and the administrative fees increase. Disposal to the County is almost a 30% increase to $5 a ton. It is a pass through. If the City does not pass that through, the residents are going to be faced with a larger bill by July 1. Council Member Daly. There are fifteen resolutions on top of the budget itself with only two days to evaluate them. He will then vote no on Item D (Parks and Recreation fees) and Item N (sanitation fees) and yes on the rest. COUNCIL ACTION: There being no further persons who wished to speak, the Mayor closed the public hearing. MOTION: Council Member Pickler moved to continue Item D, revising certain policies and fees to be charged for City-Wide Park and Recreation programs and services to Tuesday, July 9, 1991. Council Member Ehrle seconded the motion. Council Member Simpson was absent. MOTION CARRIED. 383 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. WAIVER OF READING - RESOLUTIONS: The title of the following resolutions were read by the City Clerk. (Resolution Nos. 91R-193 through 91R-203, both inclusive, for adoption.) Council Member Pickler moved to waive the reading in full of the resolution. Council Member Ehrle seconded the motion. Simpson was absent. MOTION CARRIED. Council Member Pickler offered the following resolutions for adoption: (A) Resolution No. 91R-193 establishing fees to be charged by the Public Works-Engineering Department of the City of Anaheim as recommended in staff report dated June 4, 1991, from the Director of Public Works/Engineer, Gary Johnson; (B) Resolution No. 91R-194 adjusting development fees established pursuant to Chapter 17.30 of the Anaheim Municipal Code (Interim Development Fees - Anaheim Stadium Business Center) as recommended in staff report dated June 10, 1991, from the Director of Public Works/Engineer, Gary Johnson; (C) Resolution No. 91R-195 establishing the Park In Lieu of fees for the City of Anaheim and rescinding Resolution No. 90R-199 as recommended in report dated June 5, 1991, from the Director of Parks, Recreation and Community Services, Chris Jarvi; (E) Resolution No. 91R-196 establishing the green fees and cart rental fees to be charged at the H.G. #Dad# Miller Anaheim Municipal Golf Course and the Anaheim Hills Golf Course as recommended in staff report dated May 13, 1991, from the Stadium/Golf General Manager, Greg Smith; (F) Resolution No. 91R-197 establishing and modifying fees for planning, zoning and land use petitions, permits, approval and appeals as recommended in staff report dated May 29, 1991, from the Planning Department; (G) Resolution No. 91R-198 adopting certain fees in connection with the Business License Tax Ordinance as recommended in staff report dated May 10, 1991, from the City Treasurer, Mary Turner; (H) Resolution No. 91R-199 establishing fees for services provided by the Anaheim City Clerk's Office as recommended in staff report dated May 10, 1991, from the City Clerk, Lee Sohl; (I) Resolution No. 91R-200 establishing rates to be charged for licensing and for certain labor, equipment and services at Anaheim Stadium and rescinding Resolution No. 89R-251 as recommended in staff report dated June 18, 1991, from the Stadium Golf General Manager, Greg Smith; (K) Resolution No. 91R-201 revising fees for services rendered by the Fire Prevention Bureau of the Fire Department and establishing the effective of the fees (July 1, 1991) as recommended in report dated May 28, 1991, from Fire Chief, Jeff Bowman; (L) Resolution No. 91R-202 establishing fees and penalties in connection with the Hazardous Materials Disclosure Program as recommended in staff report dated May 28, .1991, from Fire Chief, Jeff Bowman; (N) Resolution No. 91R-203 adopting a new fee schedule of sanitation charges and repealing Resolution No. 90R-93 as recommended in report dated June 4, 1991, from Director of Maintenance, John Roche. Refer to Resolution Book. A. 000: RESOLUTION NO. 91R-193: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES TO BE CHARGED BY THE PUBLIC WORKS-ENGINEERING DEPARTMENT OF THE CITY OF ANAHEIM. B. 000: RESOLUTION NO. 91R-194: 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). 384 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. C. 000: RESOLUTION NO. 91R-195: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING THE PARK IN LIEU OF FEES FOR THE CITY OF ANAHEIM AND RESCINDING RESOLUTION NO. 90R-199. D. 000: RESOLUTION NO. - ...... : Revising certain policies and fees to be charged for City-wide park and recreation programs and services, establishing September 1, 1991 as the effective date thereof and rescinding certain resolutions establishing previous fees. (Continued to July 9, 1991) E. 000: RESOLUTION NO. 91R-196: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING THE GREEN FEES AND CART RENTAL FEES TO BE CHARGED AT THE H.G. 'DAD" MILLER ANAHEIM MUNICIPAL GOLF COURSE AND THE ANAHEIM HILLS GOLF COURSE. F. 000: RESOLUTION NO. 91R-197: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING AND MODIFYING FEES FOR PLANNING, ZONING AND LAND USE PETITIONS, PERMITS, APPROVAL AND APPEALS. G. 000: RESOLUTION NO. 91R-198: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING CERTAIN FEES IN CONNECTION WITH THE BUSINESS LICENSE TAX ORDINANCE. H. 000: RESOLUTION NO. 91R-199: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES FOR SERVICES PROVIDED BY THE ANAHEIM CITY CLERK'S OFFICE. I. 101: RESOLUTION NO. 91R-200: 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 AND RESCINDING RESOLUTION NO. 89R-251. J. 149: ORDINANCE NO. 5238 - (INTRODUCTION): AN ORDINANCE OF THE CITY OF ANAHEIM ESTABLISHING THE PENALTIES FOR ANAHEIM MUNICIPAL CODE PARKING VIOLATIONS. K. 000: RESOLUTION NO. 91R-201: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REVISING FEES FOR SERVICES RENDERED BY THE FIRE PREVENTION BUREAU OF THE FIRE DEPARTMENT AND ESTABLISHING THE EFFECTIVE DATE OF FEES (July 1, 1991). L. 000: RESOLUTION NO. 91R-202: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES AND PENALTIES IN CONNECTION WITH THE HAZARDOUS MATERIALS DISCLOSURE PROGRAM. M. 129: ORDINANCE NO. 5239 - (INTRODUCTION): AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 6.40.040 OF CHAPTER 6.40 OF TITLE 6 OF THE ANAHEIM MUNICIPAL CODE RELATING TO PERMITS FOR PUBLIC DISPLAYS OF FIREWORKS. N. 000: RESOLUTION NO. 91R-203: A RESOLUTION OF.THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING A NEW FEE SCHEDULE OF SANITATION CHARGES AND REPEALING RESOLUTION NO. 90R-93.' 123: Approving a Fourth Amendment to the Amended and Restated Agreement for the collection and disposal of residential solid waste within the City of 385 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Anaheim with Jaycox Disposal Company, Inc., and its successor, Anaheim Disposal, Inc. 123: Approving Addendum Number 3 to the Amended and Restated Agreement with Jaycox Disposal Company, Inc., and its successor, Anaheim Disposal, Inc., for the collection and processing of the citywide automated recycling program within the City of Anaheim. 123: Approving the Fifth Amendment to the Amended and Restated Agreement for the collection and disposal of commercial and industrial solid waste within the City of Anaheim with Anaheim Disposal, Inc. 123: Approving the Fifth Amendment to the Amended and Restated Agreement for disposal services with Consolidated Volume Transporters, Inc. Roll Call Vote on Resolution Nos. 91R-193 through 91R-202: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Daly, Pickler, Ehrle and Hunter None Simpson The Mayor declared Resolution Nos. 91R-193 through 91R-202, both inclusive, duly passed and adopted. Roll Call Vote on Resolution No. 91R-203: AYES: COUNCIL MEMBERS: Pickler, Ehrle and Hunter NOES: COUNCIL MEMBERS: Daly ABSENT: COUNCIL MEMBERS: Simpson The Mayor declared Resolution No. 91R-203 duly passed and adopted. Council Member Pickler offered Ordinance Nos. 5238 and 5239 for first reading. Refer to Ordinance Book. 149: ORDINANCE NO. 5238: AN ORDINANCE OF THE CITY OF ANAHEIM ESTABLISHING THE PENALTIES FOR ANAHEIM MUNICIPAL CODE PARKING VIOLATIONS. 129: ORDINANCE NO. 5239: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 6.40.040 OF CHAPTER 6.40 OF TITLE 6 OF THE ANAHEIM MUNICIPAL CODE RELATING TO PERMITS FOR PUBLIC DISPLAYS OF FIREWORKS. Before concluding, Council Member Ehrle stated, although he does not want a lot of staff time spent on the matter, he would like to have a matrix which shows fees for Santa Ana, Long Beach and a few other large cities showing how Anaheim's fees relate to those of other cities. He is certain all cities will be approving like fee increases for the coming fiscal year. ADOPTING THE 1991/92 RESOURCE ALLOCATION PLAN: Council Member Hunter moved to adopt the 1991/92 Resource Allocation Plan, Council Member Ehrle seconded the motion. Council Member Pickler voted no. Council Member Simpson was absent. MOTION CARRIED. 386 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. B1. 179: ADMINISTRATIVE ADJUSTMENT NO. 60, CATEGORICALLY EXEMPT, CLASS 11: REQUESTED BY: JEFF WARMOTH, THE BALDWIN COMPANY, 16811 Hale Avenue, Irvine, CA 92714 LOCATION: 8125 East Oxley Court To retain an existing single-family residence with waiver of minimum sideyard setback (6 feet required 5.5 feet existing) (6 feet with a combined sideyard total of 15 feet required; 5.5 feet with a combined sideyard setback of 13 feet existing). ACTION TAKEN BY THE ZONING ADMINISTRATOR: Administrative Adjustment No. 60 GRANTED (ZA91-25). B2. 179: ORDINANCE NO. 5240 - (INTRODUCTION): Amending Title 18 to rezone property under Reclassification No. 90-91-01, located at 1575 W. Katella, from the CL zone to the RM-2400 zone. Council Member Hunter offered Ordinance No. 5240 for introduction, amending Title 18 to rezone property under Reclassification No. 90-91-01, located at 1575 W. Katella, from the CL zone to the RM-2400 zone. Refer to Ordinance Book. ORDINANCE NO. 5240: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING ITEMS OF PUBLIC INTEREST: Phil Knypstra, 2520 Gelid, Anaheim. He thought there was an agreement on a water conservation policy two months ago. It appears now that the Council does not have a coherent plan or policy of any kind since, in the last two months, there have been four different water rates approved by the Council. Many Public Utility Board public hearings have since taken place with many citizens attending. It seems that all of the previous Council actions have been trashed. He asked if they were in favor of creating a rate structure that will discourage the use of excess water or not and he would like each Council member to make a commitment. Council Member Daly. He voted against the series of changes Mr. Knypstra is referring to because he believes the City needs the kind of policy that he (Knypstra) would like to see - a clear rate structure that promotes water conservation. Mr. Knypstra. The Council is going to have to take the leadership since basically now what is in place is the old rate system plus 6% which favors the water wasters. Mayor Hunter. He asked that the Public Utility General Manager or his designee meet with Mr. Knypstra. Further, since the water conservation issue is going to be in the forefront, he also asked that in the future a representative of the Public Utility Department be present at Council meetings to answer citizen's concerns. City Manager Ruth noted that Mike Bell, Financial Services Manager in Utilities was present in the Chamber audience. 387 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Jeff Kirsch, 2661 W. Palais. Anaheim is entering difficult times. Fee increases and taxes will have an affect on the people. He is appealing to the Council and possibly interested members of the public for leadership, vision and communication. He has received a lot of mailings about water conservation but feels what would be more useful would be notices of rate hearings and things that will have an impact on the consumer. Sharon Ericson, President, Anaheim Municipal Employees Association (AMEA). They do have a great concern about contracting out. Last week the City Manager submitted to the Council at Mayor Pro Tem Ehrle's request a comprehensive report on current and proposed contracting out. She relayed the figures contained in the report. As the report indicates, she feels the City has no problem contracting their jobs out and the figures speak for themselves. Contracting out is something labor is adamantly opposed to. Contractors will low ball their bids to get their foot in the door and after that, prices go up and quality goes down. In essence, the City loses control. She then read a statement from the Federal Government Accounting Office, GAO, which pointed out that employers use of contingent workers - part-time, temporarily and especially contract employees, have grown remarkably in the last decade and will continue to increase in the 1990s. "The GAO warned that the contingent work force may create a permanent under class, lower worker morale and productivity and reduce the overall competitiveness of the United States compared to other nations.# She feels it would be wise to not even consider contracting out the golf courses when the courses brought in $410,000 this year in revenue or to contract street maintenance when all that is necessary is to take a ride on a road that a contractor took care of - for example, Nohl Ranch Road or Anaheim Blvd. Serious shortcomings are associated with contracting out including higher and hidden cost, lower quality, less in-house expertise, increased opportunities for corruption, 10ss of flexibility and accountability and a negative impact on women and minorities. JoAnn Thredgill, 2944 Bridgeport, Anaheim. She is present with a group representing the UFCW retirees (United Food and Commercial Workers). Because of a fire, they have been forced to find a new place to meet. They are using the Brookhurst Community Center at $75 hour with a $75 setup fee which they will be renting for approximately 1 year. They are using the community center once a month for a catered lunch. They are a non-profit social group and have a Tax I.D. number. They play bingo nine months a year for entertainment. They 388 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. have been told they cannot play bingo unless they get a permit. Their definition of bingo is not the same as the City of Anaheim's definition. They paid the fee and when the permit arrived it was a business license. They are not a business, but a group of retired people. What they would like is a reduction on their rent at Brookhurst Community Center and a forgiveness on permits they have no use for. Mayor Hunter asked Mrs. Thredgill to leave her name. and address with the City Manager so that someone can contact her. D1. 179: CONTINUED PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 3378 AND MITIGATED NEGATIVE DECLARATION: OWNER: DAH'S SERVICE CENTER, 519 W. Ball Rd., Anaheim, CA 92805 AGENT: ARTHUR H. SHIPLEY, 1728 W. Bay Ave., Newport Beach, CA 92663 LOCATION/REQUEST: The property is located at 519 W. Ball Road and is approximately .30 acres located at the northeast corner of Harbor Boulevard and Ball Road. The request is to retain rental truck service as an accessory use to an existing service station. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3378 DENIED (PC91-31) (3 yes votes, 1 no vote, 2 abstained, and 1 absent). Approved Mitigated Negative Declaration. HEARING SET ON: A letter appealing the Planning Commission's decision was submitted by the owner and public hearing scheduled and continued from the meeting of May 21, 1991 to this date. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin May 9, 1991 Mailing to property owners within 300 feet - May 8, 1991 Posting of property May 9, 1991 PLANNING STAFF INPUT: See Staff Report to the Planning Commission dated March 11, 1991. Mayor Hunter asked to hear from the applicant or applicant's agent. APPLICANT'S STATEMENT: Carlos Eldah, 519 W. Ball Road. questions. He is present to answer any Greg Hastings, Staff is recommending denial based on the fact that the use is not consistent with uses in the area as well as the condition of the property. The property had not been approved since the time the item was before the Planning Commission. Staff had Code Enforcement look at the property periodically during the time the Planning Commission was reviewing the matter. Circumstances were that the number of trucks were not reduced per the Planning Commission as well as some of the other items on the property. 389 City Hall, .Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Richard LaRochelle, Code Enforcement Supervisor. There has been an average of six trucks on the property. In the past week, a Uhaul trailer has also been on the property. They are still continuing the Uhaul business at the service station. Carlos Eldah. They would still like to get approval on the permit to rent trucks. He has changed the setup. They are parking trucks in the back so they are not visible from the street. They discussed the matter with the Planning Commission. He then read an editorial from the Anaheim Bulletin dated Wednesday, March 13, 1991 which was favorable to his cause. There was an eminent domain case that started in 1986 and continued through 1988. When that case was going on, there was approximately a 17% decrease in the property. The key driveway to his business was eliminated causing him to lose approximately 50% of gas sales and some of the garage income. The trucks are needed to supplement lost income. He wants to run a profitable business and not go bankrupt. Mayor Hunter asked if anyone wished to speak either in favor or in opposition; there being no response he closed the public hearing. Council Member Ehrle. The whole area is changing. When the subject use was approved a number of years ago, the area was different. He does not believe granting the CUP is the best use of the land especially at that location. It is also a designated critical intersection. He reiterated at this point in time, a truck rental facility on top of the normal traffic is not in the best interest of the City. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Council Member Hunter, seconded by Council Member Ehrle, 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 comments received that there is no substantial evidence that the project will have a significant effect on the environment. MOTION CARRIED. WAIVER OF READING - RESOLUTION: The title of the following resolution was read by the City Clerk. (Resolution No. 91R-204) Council Member Hunter moved to waive the reading in full of the resolution. Council Member Ehrle seconded the motion. MOTION CARRIED. Council Member Hunter offered Resolution No. 91R-204 for adoption, denying Conditional Use Permit No. 3378. Refer to Resolution Book. RESOLUTION NO. 91R-204: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DENYING CONDITIONAL USE PERMIT NO. 3378. Roll Call Vote: AYES: COUNCIL MEMBERS: Daly, Pickler, Ehrle and Hunter NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Simpson 390 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. The Mayor declared Resolution No. 91R-204 duly passed and adopted. D2. 179: PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 3402: OWNER: CAMPANULA PROPERTIES, INC., ATTN: Jack Stanaland, 1590-10 S. Pacific Coast Highway, Laguna Beach, CA 92657 LOCATION/REQUEST: The property is located at 1400 S. Douglass Road and is approximately 25 acres located on the east side of Douglass Rd. and approx. 1080 feet north of the centerline of Katella. The request is to retain an existing 236 space mobilehome park containing 219 coaches with waivers of minimum front yard setback, minimum side yard setback, minimum rear yard setback, minimum number of parking spaces, maximum fence height and waiver of Council Policy No. 542. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3402 GRANTED (PC91-57) (7 yes votes). Waiver of code requirement APPROVED. HEARING SET ON: A review of the Planning Commission's decision was requested by Council Members Hunter and Ehrle at the meeting of May 21, 1991, and public hearing scheduled this date. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin June 6, 1991 Mailing to property owners within 300 feet - June 4, 1991 Posting of property June 7, 1991 PLANNING STAFF INPUT: See Staff Report to the Planning Commission dated May 6, 1991. APPLICANT'S STATEMENT: Jack Stanaland. Campanula Properties is the applicant. They have spent many hours with various departments working on this matter. The Planning Commission approved it unanimously apparently some Council members have questions which he will be happy to answer. City Attorney White first clarified for the Mayor that the CUP is open ended. It is for an indeterminate length of time. Council Member Ehrle. He was one of the Council members who asked that the matter be set for a public hearing. The property has been a mobile home park for some time first under County jurisdication and then Anaheim's. He asked why so many years have gone by before compliance making the park a legal entity. Jack Stanaland. Noone knew the CUP had expired. Campanula purchased the park at a foreclosure sale. They were not aware the CUP had expired. He was not certain anyone knew before Mr. Ruth and Mr. White informed him of same. Mayor Hunter opened the public hearing and asked if anyone wished to speak. 391 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. A1 Puernik, 1400 Douglass Road #91. He asked if the use permit is denied even though the Planning Commission has approved it, what happens to the mobile home park and the people living in it. City Attorney White. That is not an issue for resolution this evening. The only thing the Council is determining is whether to issue a new CUP. The County issued one that subsequently has expired after the property was annexed into the City. If the use permit were denied, that would not in and of itself have any affect on the tenants. It would take an affirmative action of the City to determine whether it wished to enforce the lack of a CUP before it would have any affect on the tenants directly. A1 Puernik. If the CUP is not approved, they would wind up in a position where it would become a tenuous situation and create other factors involving the Council and 200 plus residents of the park. He is asking that the Council follow the lead of the Planning Commission and also approve the CUP. COUNCIL ACTION: There being no further persons who wished to speak; Mayor Hunter closed the public hearing. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Council Member Pickler, seconded by Council Member Ehrle, the City Council ratified the determination of the City Engineer that the proposed activity falls within the definition of Section 3.01 Class 3, 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. Council Member Simpson was absent. MOTION CARRIED. WAIVER OF READING - RESOLUTION: The title of the following resolution was read 'by the City Clerk. (Resolution No. 91R-205) Council Member Pickler moved to waive the reading in full of the resolution. Council Member Daly seconded the motion. Council Member Simpson was absent. MOTION CARRIED. Council Member Pickler offered Resolution No. 91R-205 for adoption, granting Conditional Use Permit No. 3402 subject to City Planning Commission's conditions. Refer to Resolution Book. RESOLUTION NO. 91R-205: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 3402. Before a vote was taken Council Member Ehrle asked if it was offered without any time limitations; Council Member Pickler answered yes. Mayor Hunter stated even if the CUP is open ended it can be brought back at any time. City Attorney White. He confirmed that was correct. If there was a violation of the code requirement or any of the expressed conditions in the permit or if it was being exercise in a matter detrimental to the public peace, health, safety or general welfare. 392 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. Council Member Ehrle. He is going to abstain. Even though there is no financial interest involved, he does have an aunt who lives in the Orange Tree Mobile Home Park at this time. A vote was then taken on the foregoing resolution. Roll Call Vote: AYES: COUNCIL MEMBERS: Daly, Pickler and Hunter NOES: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: Ehrle ABSENT: COUNCIL MEMBERS: Simpson The Mayor declared Resolution No. 91R-205 duly passed and adopted. D3. 179: PUBLIC HEARING - WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT NO. 3353 AND MITIGATED NEGATIVE DECLARATION: OWNER: CITY OF ANAHEIM, C/O R. ZUR SCHMIEDE, 300 S. Harbor Blvd., Ste. 900, Anaheim, CA 92805 LOCATION/REQUEST: The property is approximately 14.54 acres located on the south side of Sanderson Ave. and approximately 400 feet south and west of the centerline of Auto Center Drive. CONDITIONAL USE PERMIT NO. 3353~ Portion B: (northeasterly 8.15 acres) The request is to permit a German Social Club (Phoenix Club) with a restaurant with on-premise sale and consumption of alcoholic beverages, semi-enclosed restaurant with on-premise sale and consumption of alcoholic beverages, a dance and assembly hall, a picnic area, an air rifle and archery shooting area, a manager's living quarters (to include musician living quarters), a private school, amusement rides, a beer garden area, a gift shop area, a soccer field, a 50 foot high maypole and 5 storage containers, with waiver of minimum number of parking spaces and maximum fence height. ACTION TAKEN BY THE PLANNING COMMISSION: RECLASSIFICATION NO. 90-91-15 GRANTED (PC91-55) (7 yes votes). CUP NO. 3353 GRANTED (PC91-56). Waiver of code requirement APPROVED - adding parking agreement prior to building permits. Approved Mitigated Negative Declaration. HEARING SET ON: A letter of appeal was submitted by Newport Federal, Peter Paul Mendel, Esq. General Counsel and public hearing scheduled this da~e. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin June 7, 1991 Mailing to property owners within 300 feet - June 6, 1991 Posting of property June 7, 1991 PLANNING STAFF INPUT: See Staff Report to the Planning Commission dated May 6, 1991. City Clerk Sohl. Appeal of this item was on Conditional Use Permit No. 3353 and filed by Newport Federal. She also has letter dated June 18, 1991, submitted by Newport Federal during the meeting (the letter was submitted to 393 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. the Council). Mayor Hunter asked to hear from staff; Lisa Stipkovich, Executive Director of Community Development. Staff will answer any questions the Council may have after the public hearing. Mayor Hunter asked to hear from anyone who wished to speak either in favor or in opposition; there being no response, he closed the public hearing. Lisa Stipkovich. Staff would like an opportunity to review the June 18, 1991, letter just submitted to determine if there are any comments staff would like to make. Mayor Hunter. He asked if the letter automatically becomes a part of the record. City Attorney White answered not necessarily, but in this particular case, he has deemed it to be a part of the record to avoid the necessity of having it put in orally as part of the testimony. Because the contents have not been reviewed, there may be information or statements made in the letter that need to be responded to in order to complete the record so that they will have the complete record in case the matter is reviewed subsequently in another form. Lisa Stipkovich. While reviewing the comments, she has a request from staff asking the Council to.consider modifying condition four in the staff report by deleting that condition and adding the following language: "That prior to issuance of a building permit, the applicant shall submit a plan to the City Traffic and Transportation Manager and the City Attorney for their review and approval to provide a minimum of sixty-five (65) additional parking spaces to accomodate peak event demand. A copy of the approved plan shall be submitted to the Zoning Division.' Mrs. Stipkovich reiterated they are requesting as part of Council consideration to delete the current language in condition four and include the language she just read and submit it to the Council. She then asked if it were possible to have a five minute recess to allow staff an opportunity to analyze the letter just submitted by Newport Federal. (The Council during this time period accepted the presentation of the $10,000 check for the Anaheim Museum from Mr. Hataya). City Attorney White. The Council previously closed the public participation portion of the hearing. After reviewing the letter submitted by Newport Federal dated June 18, 1991, it is staff's recommendation that the hearing continue to be closed for public participation, but that the matter be continued for one week to allow staff to respond to issues raised in the letter and to put those in the record before the Council acts on the CUP - a one week continuance solely for that limited purpose. It will be for staff responses to issues raised in the letter and not a re-opening of the hearing. MOTION: Council Member Hunter moved to continue the public hearing on Conditional Use Permit No. 3353 and mitigated negative declaration for one week 394 City Hall, Anaheim, California - COUNCIL MINUTES - June 18, 1991, 5:00 P.M. to Tuesday, June 25, 1991, but that the public hearing is closed and the purpose of the continued hearing will be to consider only issues raised in the June 18, 1991, letter just received from Newport Federal. Council Member Pickler seconded the motion. Council Member Simpson was absent. MOTION CARRIED. ADJOURNMENT: Council Member Hunter moved to adjourn. Council Member Ehrle seconded the motion. Council Member Simpson was absent. MOTION CARRIED. (7:20 p.m.) LEONORA N. SOHL, CITY CLERK 395