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1987/06/237] Anaheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. The City Council of the City of Anaheim met in regular session. ~ ESENT: COUNCIL MEMBERS: Ehrle, Hunter, Pickler, Kaywood and Bay COUNCIL MEMBERS: None CITY MANAGER: William O. Talley CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ZONING ADMINISTRATOR: Annika Santalahti TRAFFIC ENGINEER: Paul Singer CITY ENGINEER: Gary E. Johnson POLICE CHIEF: Jimmie Kennedy PLANNING DIRECTOR: Joel Fick A ¢o~.plete copy of the agenda for the meeting of the Anaheim City Council was posted at 10:15 a.m. on June 19, 1987 at the Civic Center kiosk, containing ~ll items as shown herein. '5'~UEST FOK CLOSED SESSION: City Attorney Jack White requested a Closed Sense.on to consider the following items: a. 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; City of Anaheim vs. Anaheim Hotel Partnership, 46-96-59. b. Labor relations matters - Government Code Section 54957.6. c. Personnel matters - Government Code Section 54957. d. Potential litigation pursuant to Government Code Section 54956.9(c). CO~U,:ilwoman Kaywood moved to recess into Closed Session. Councilman Bay ~o-~ded the motion. MOTION CARRIED. (12:15 p.m.) RECESS: The Mayor called the meeting to order, all Council Members present, and welcomed those in attendance to the Council meeting. p.m.) ~;~'~ATION: Captain Joseph Huttenlocker, Salvation Army, gave the Invocation. SALUTE: Council Member Irv Pickler led the assembly in the Pledge of .%31egiance to the Flag. ~.9~. LETTER OF COMMENDATION - UTILITY DEPARTMENT EMPLOYEES: Mayor Bay first ¥~.d a letter from Gordon Hoyt, Utilities General Manager, commending the ~i].ity Department workers who were involved in working through a weekend ~m~rgency on June 6 and June 7, 1987 due to an electrical outage. Fifty-one ~oyle were involved totalling 1,045 hours. After reading the letter, Mayor 54O City Hall, Ao~heim, C~l~fornia - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. Bay also added his thanks as well as that of the Council for the kind of effort put forth by the Utility Department employees under the conditions with which they were confronted. 119: PRESENTATION - MOTHER OF THE YEAR 1987: Mrs. Fran Mauck presented to the Council Mrs. Georgette Shabash, Anaheim's 1987 Mother of the Year. She first read the letter which gained the coveted title for Mrs. Shabash written by her 13 year old daughter. Mayor Bay then presented Mrs. Shabash with roses and congratulated her on his behalf and on behalf of the Council. 119: EXPRESSION OF APPRECIATION: An Expression of Appreciation was unanimously adopted by the City uouncil and presented to Michael Todd Wallace, commending him for his prompt action and involvement in an emergency situation on the morning of July 3, 1986. Mr. Wallace knocked on doors of an apartment complex off the 91-Freeway, warning of the danger relative to a fire he saw starting on one of the roofs of the complex. Mayor Bay, on behalf of the Council and the City, expressed their deepest appreciation to Mr. Wallace for his unselfish action and for becoming involved in an emergency situation and helping to save lives. 119: EXPRESSION OF CONGRATULATIONS: Expression of Congratulation was unanimously adopted by the City Council and presented to A1 Merriam, Fleet Manse.er, upon his retirement from the City after 20 years of employment in the Mechanical Maintenance Division. All Council Members personally wished Mr. Merriam well and a large contingent of fellow workers were present in the Chamber audience to honor Mr. Merriam. 119: EXPRESSION OF CONGRATULATIONS: An Expressions of Congratulations were unanimously adopted by the City Council to be presented to the following Firefighters on the occasion of their retirement from the City: Bill Allen - Firefighter I (over 13 years), Ralph Chester - Fire Captain II (over 25 years), Bob Johnson - Firefighter I (over 23 years), Bill Jones - Firefighter I (over 19 years), Larry Lutz Fire Captain IV (over 30 years), Bob Schroeder - Fire Engineer IV (over 23 years), Bob Stuart - Fire Engineer I (over 28 years), Bill Swain - Fire Engineer II (over 28 years), Bob Wilkinson - Fire Captain I (over 30 years), A1 Williams - Fire Engineer III (over 25 years). MINUTES: Councilwoman Kaywood moved to approve the minutes of the regular and adjourned meeting of June 2, 1987. Councilman Pickler seconded the motion. MOTION CARRIED. WAIVE~ OF READING - ORDINANCES AND RESOLUTIONS: Councilman Pickler moved to waive the reading in full of all ordinances and resolutions of the Agenda, after reading of the title thereof by the City Clerk, and that consent to waiver is hereby given by all Council Members, unless after reading of the title, specific request is made by a Council Member for the reading of such ordinances or resolutions in regular order. Councilman Bay seconded the motion. MOTION CARRIED. 541 69 City Hall, Anaheim, California - COUNCILMINUTES - June 23, 1987, 1:30 P.M. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $2,893,180.65, in accordance with the 1986-87 Budget, were approved. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Councilman Pickler, seconded by Councilwoman Kaywood, the following items were approved in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar; Councilman Pickler offezed Resolution Nos. 87R-243 through 87R-248, both inclusive, for adoption. Refer to Resolution Book. 1. 118: The following claims were filed against the City and action taken as recommended: Claims rejected and referred to Risk Management: a. Claim submitted by Dorothy J. Bronson for property damage sustained purportedly due to actions of the City on or about January 15, 1987. b. Claim submitted by Deborah Mallard for bodily injury and property damage sustained purportedly due to actions of the City on or about January 16, 1987. c. Claim submitted by Friendly Village Mobile Home Park (George Adams, Field Claims Representative) for property damage sustained purportedly due to actions of the City on or about February 3, 1987. d. Claim submitted by John G. Lauff for personal injury sustained purportedly due to actions of the City on or about January 21, 1987. e. Claim submitted by Silviano Ibarra for bodily injury sustained purportedly due to actions of the City on or about February 2, 1987. Claim filed - recommended to be accepted: t. Claim submitted by Paul Bunyan International Inn for property damage sustained purportedly due to actions of the City on or about April 2, 1987. 2. Receiving and filing the following correspondence: (on file) a. 105; Special Joint Meeting of Community Services Board and Park and Recreation Commission, Minutes of May 14, 1987. b. 105: Special Joint Meeting of the Senior Citizens Commission and Anaheim Youth Commission, Minutes of May 14, 1987. c. 105: Senior Citizens Commission, Minutes of April 9, 1987. 3. 123: Authorizing an agreement with Charles Post, dba C. V. Enterprises Concessions, paying the City 15% of gross sales up to $40,000 and 20% above $40,000, to operate food and beverage concessions at La Palma Park, Glover Stadium, Pearson Park,'Peralta Canyon Park and Yorba Regional Park, to terminate May 31, 1990. 542 7O City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. 4. 123: Authorizing an agreement with Anaheim Union High School District, at a cost of $1,208.92 per month, for space at Trident Junior High School to operate the West Anaheim Senior Citizens Center, for the term January 15, 1987 to June 30, 1987. 5. 150/106: Accepting funds donated through the Parks, Recreation and Community Services Foundation by Target Stores and Anaheim Arts Council; increasing the appropriation for the Revolving Opportunity Fund by $4,936 in Account No. 01-372-6341 and $1,043 in Account No. 01-372-6101; and increasing Revenue Account No. 01-372-3226 by $6,979. 6. 123: Authorizing the First Amendment to Agreement with Schema Systems, Inc., for consulting services in connection with the Police Automated Systems Development, extending the term to June 30, 1988 at a cost of $70,000. 7. 123: Approving a letter agreement dated June 8, 1987, stating terms and conditions of employment of Ted W. Lewis as Convention Center Operations Manager effective July 13, 1987. 8. 123/175: Authorizing a Reimbursement Agreement with Craig and Eve Miller, 7688 Calle Durango, for the Mohler Drive Drainage Reimbursement Area. 9. 160: Authorizing the Purchasing Agent to issue a purchase order to the Anaheim Public Improvement Corporation in the amount of $25,099.74 for rubberized railroad crossing material at La Palma Avenue, west of East Street, at the Atchison, Topeka and Santa Fe Railway Company Crossing ~26-642N, in accordance with Bid No. A-4458. 10. 160: Waiving Council Policy 306 and authorizing the Purchasing Agent to issue a purchase order to Wang Laboratories, in an amount not to exceed $167,533 to cover maintenance contract costs for all Wang equipment city-wide. 11. 160: Waiving Council Policy 306 and authorizing the Purchasing Agent to issue a purchase order to the Anaheim Public Improvement Corporation in the amount of $62,118.70 for one each, 50-foot aerial device. 12. 160: Accepting the low bid of Uarco Business Forms, in an amount not to exceed $43,917 for FY 87/88 computer printout paper requirements, in accordance with Bid No. 4460. 13. 160: Authorizing the Purchasing Agent to issue a purchase order to the Anaheim Public Improvement Corporation, in the amount of $12,628.84 for two flat bed bodies with hoist, in accordance with Bid No. A-4465. 14. 160: Authorizing the Purchasing Agent to issue a purchase order to the Anaheim Public Improvement Corporation in the amount of $25,126.24 for two 1000 K.V.A. Three Phase Umfused Padmount Transformers, in accordance with Bid No. A-4452. 15. 150: Authorizing Change Order No. 1 to the contract with Challenge Engineering, Inc., in the amount of $79,550.77 for additional work in connection with the Anaheim Wetlands & Santa Ama River Bike Trail, Account Nos. 01-933-7103 and 17-798-6325-E8020. 543 67 Cit7 Hall, l--hetm, California - COUNClL MINUTES - June 23, 1987, 1:30 P.M. 16. 101: RESOLUTION NO. 87R-243: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AWARDING A CONTRACT FOR CERTAIN PUBLIC WORK. (SIGNS WEST, INC. ARTECH SIGNS, INC.) (Awarding a contract to the lowest and best responsible bidder, Signs West, Inc./Artech Signs, Inc., in the amount of ~190,585, for Stadium Theme Tower, Account No. 61-512-7107) 106: Appropriating ~190,585 from 1986/87 Stadium Revenue Account Nos. 61-3451 and 61-3452 into Expenditure Account No. 61-512-7107. 17. 169: RESOLUTION NO. 87R-244: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AWARDING A CONTRACT FOR CERTAIN PUBLIC WORK. (SULLY MILLER CONTRACTING COMPANY) (Awarding a contract to the lowest and best responsible bidder, Sully-Miller Contracting Company, in the amount of $101,538.42, for Cerritos Avenue Street Improvement 659 feet west of Bayless Street to Euclid Street, Account Nos. 12-793-6325-E3140 and 51-484-6993-00710) 18. 169: RESOLUTION NO. 87R-245: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AWARDING A CONTRACT FOR CERTAIN PUBLIC WORK. (R. J. NOBLE COMPANY) (Awarding a contract to the lowest and best responsible bidder, R. J. Noble Company, in the amount of $279,740.23, for La Palma Avenue Street Improvement, East Street to Anaheim Boulevard, Account Nos. 12-793-6325-E3110 and 51-484-6993-00710) 19. 150: RESOLUTION NO. 87R-246: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTING THE COMPLETION OF A CERTAIN PUBLIC WORK. (ANAHEIM WETLANDS AND SANTA ANARIVER BICYCLE TRAIL) (Accepting the completion of construction of the Wetlands and Santa Ama River Bike Trail, Account Nos. 01-933-6325 and 17-798-6325-E8020, Challenge Engineering, Inc., contractor, and authorizing filing of the Notice of Completion therefor) 20. 164: ~ESOLUTION NO. 87R-247: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTING THE COMPLETION OF A CERTAIN PUBLIC WORK. (WEST STREET STORM DRAIN) (Accepting the completion of construction of the West Street Storm Drain, Account No. 25-791-6325-E1530, Kershaw Construction Company, contractor, and authorizing filing of the Notice of Completion therefor) 21. 123: RESOLUTION NO. 87R-248: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING SUPPLEMENT NO. 33 TO LOCAL AGENCY-STATE AGREEMENT NO. 07-5055 AND AUTHORIZING THE MAYORAND CITY CLERK TO EXECUTE SAID SUPPLEMENT. (Approving Supplement No. 33 to the Local Agency-State Agreement No. 07-5055, to provide funds in the amount of $206,338 towards the cost of installation of pavement markings on certain arterials in the City) Roll Call Vote on Resolution Nos. 87R-243 through 87R-248: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Ehrle, Hunter, Pickler, Kaywood and Bay None None The Mayor declared Resolution Nos. 87R-243 through 87R-248, both inclusive, duly passed and adopted. 544 City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. End of Consent Calendar. MOTION CARRIED. 139: SB 151 (PRESLEY) air QUALITY MANAGEMENT DISTRICT MEMBERSHIP: Memorandum dated June 11, 1987 from League of California Cities regarding SB 151 (Presley) relating to air quality management district membership. Councilwoman Kaywood explained that last Thursday after the League of Cities meeting, the Committee did meet with regard to the subject bill. There were four members of local City Councils appointed by the City Selection Committee. Senator Presley is looking to bypass that. It was the feeling of those still in attendance that it was extremely important for cities to have that direct representation. (She read portions of the memorandum). One of the things they are looking at in SB 151 was to have one member appointed by the Governor, one appointed by the Assembly Speaker, one by the Senate Rules Committee and four appointed by the Governor as nominated by the Boards of Supervisors of each County. Obviously the Boards of Supervisors would be nominating Supervisors and not City Council Members. The one change they were looking at as a possibility, instead of a member appointed by the Governor that it be a permanent seat for the City of Los Angeles based on their population. If Anaheim is willing to go along with that, that information would go to the Orange County League of Cities so they would know how to proceed. They wanted to know the feeling from each of the 26 cities. Councilman Pickler confirmed that was the consensus that there be some selection from cities so there is representation on the Air Quality Management District. MOTION: Councilwoman Kaywood moved to approve changing the City selection committee meetings in order to obtain representation on the SCAQMD Board and to accommodate the continued appointment of local elected officials to the Board. Councilman Ehrle seconded the motion. MOTION CARRIED. Councilwoman Kaywood moved to receive and file the memorandum dated June 11, 1987 from League of California Cities regarding SB 151 (Presley). Councilman Bay seconded the motion. MOTION CARRIED. 105: P~EVIEW OF CITY BOARDS AND COMMISSIONS: To consider and review all existing individual appointments to Council appointed Boards and Commissions. Mayor Bay first stated if there are moves for any removals from Boards and Commissions that the sooner the removals are known, the sooner the openings can be advertised. That should be done as soon as possible so that (1) Boards and Commissions will know what is going to happen and, (2) so that the process of created vacancies is known and advertised and those vacancies can be filled in a reasonable amount of time, perhaps the first week in July or anywhere near that point. The subject is open for discussion or action at this time. Councilman Hunter moved to terminate Len Lawicki and Glenn Fry from the City Planning Commission. Councilman Bay seconded the motion. Before action was taken, Councilwoman Kaywood stated Mr. Fry's term will expire next week and Mr. Lawicki's expires in 1989. She asked the reason why Mr. Lawicki was being terminated at this time. 545 65 City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. Councilman Pickler stated Mr. Fry's term ends at the end of the month and questioned why force the issue now. Mayor Bay asked the City Attorney if on removals from Boards and Commissions there was anything requiring that reasons or explanations be given with regard to those actions. City Attorney White answered that the Charter specifies the manner in which members are appointed to Boards and Commissions, but it does not require a reason for removal. It requires that a majority of the Members of the Council vote in favor of any such removal. Ail Commissioners and Board Members serve at the pleasure of the Council. Councilwoman Kaywood felt that out of common decency and respect, her question required an answer. Councilman Pickler reiterated a concept broached at the previous meeting (see minutes of June 16, 1987) first proposed by Councilman Hunter was that each Member of the Council appoint a Commissioner to the Planning Commission with the remaining two Commissioners to be appointed at large with the idea that each appointee would have to get the approval of at least three Council Members. He (Pickler) favored that idea. Councilman Hunter again referred to Charter Section 902 which did not outline any procedure that each Council Member has the right to appoint a Planning Commissioner. A vote was then taken on the termination of Mr. Lawicki and Mr. Fry as Planning Commissioners and carried by the following vote: Roll Call Vote: AYES: NOES: A~SENT: COUNCIL H EMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Ehrle, Hunter and Bay Pickler and Kaywood None Councilman Pickler stated he felt that the actions were being taken because of the campaign that had just ended. He did not believe in being vindictive by punishinB enemies and rewarding friends. Councilman Ehrle then discussed the Economic Development Board. He recommended that there be an expansion, or elimination of the presently existing Industrial Development Board and creating a new Board called the Econ¢.mic Development Board which would incorporate many of the duties and responsibilities of the present Industrial Board (IDB) but expanding that Board. It was necessary to do a lot of things to increase revenues. He was, therefore, proposing a new Board or Commission called the Economic Development Board that would be advisory to the Council to assist in directing the Council and bring about Anaheim's economic recovery. The people on the current IDB are fine people and he would hope that they would also want to be on the new Board which should be expanded to nine members. 546 City Hall, An-helm, California - COUNCIL MINUTES - June 23~ 1987, 1:30 P.M. Mayor Bay, speaking to the City Attorney, stated that the 1DB was mostly centered around Industrial Development Bonds and handling the revenue generated from those as they came in. He asked if it would be sufficient that the Council merely ask that he (City Attorney) take a look at changing the Charter or whatever was necessary in order to establish an Economic Development Board. City Attorney White stated it would be by ordinance; the Mayor then stated if the majority of the Council was in agreement on the matter then the current ordinance could be changed to broaden the concept to an Economic Development Board and increasing the membership by four members from five to nine, thus creating four new openings as well as asking the City Clerk to contact the members of that Board to find out if they were in agreement to continuing to work on the Board. Councilman Pickler asked that a report be submitted relative to the proposed concept so that the Council would have an opportunity to review it in order to determine if they should proceed with it. Councilman Ehrle agreed to provide additional info~mation on the concept in one week; Mayor Bay asked that it be supplied to the Council and the City Attorney. MOTION: Councilman Bay moved to continue further discussion relative to the proposed Economic Development Board concept for one week. Councilman Pickler seconded the motion. MOTION CARRIED. MOTION: Councilman Bay moved to remove William Ranney from the Community ~edevelopment Commission. Councilman Hunter seconded the motion. Before a vote was taken, Councilwoman Kaywood stated that Mr. Rauney's term expires in 1988. She requested a reason for his removal. Mayor Bay stated he did not intend to give any reason since it would merely add to the rhetoric. He called for a Roll Call Vote. A Roll Call Vote was then taken on the foregoing motion and carried by the following vote: Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: C0UNCILMEMBERS: COUNCIL HEMBERS: Ehrle, Hunter and Bay Pickler and Kaywood None MOTION: Councilman Ehrle moved to remove Kenneth Heuler from the Public Utilities Board. Councilman Hunter seconded the motion. Before a vote was taken, Councilwoman Kaywood stated Mr. Heuler's term expires in 1989. She asked for a reason for his removal. Mayor Bay stated they have explained they do not intend to answer questions relative to reasons for removal. 547 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. Councilman Pickler stated Mr. Heuler has not even been involved in an election and a campaign but another member of the Public Utilities Board (PUB) has been involved and politicized the campaign, Mr. Joe White. He could understand the moves by Councilman Hunter and Bay but not Mr. Ehrle who did not even know Mr. Heuler. He asked if it was because he (Pickler) nominated Mr. Heuler to that position. A Vote was then taken on the foregoing motion to remove Mr. Heuler from the Public Utilities Board and carried by the following vote: Roll Call Vote: AYES: COUNCIL MEMBERS: Ehrle, Hunter and Bay NOES: COUNCIL MEMBERS: Kaywood ABSENT: COUNCIL MEMBERS: None Councilman Pickler stated he chose not to vote because he did not want to dignify the action in any way. MOTION: Councilman Pickler moved to remove Joe White from the Public Utilities Board because of politicizing the last election, getting involved in the campaign with a sign on his lawn, signing nomination papers and making derogatory remarks about the Council, some of the same reasons given for the removal of Charlene La Claire. Councilwoman Kaywood seconded the motion. The motion failed to carry by the following vote: Roll Call Vote: AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Pickler and Kaywood Ehrle, Hunter and Bay None Councilman Bay moved that the review of Boards and Commissions be continued for one week and that the matter again be placed on the agenda at that time. Councilman Hunter seconded the motion. Councilman Pickler voted no. MOTION CARRIED. Before concluding, additional discussion followed between Council Members Pickler, Ehrle and Kaywood. 179: ORDINANCE NOS. 4843 THROUGH 4845: Councilman Bay offered Ordinance Nos. 4843 through 4845 for first reading. ORDINANCE NO. 4843: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIMMUNICIPAL CODE RELATING TO ZONING. (Amending Title 18, Reclass. 65-66-59(8), CO, 561 So. Harbor Blvd.) ORDINANCE NO. 4844: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (Amending Title 18, Reclass 80-81-40, PR, east side of West Street, north of Orangewood Avenue) 548 City Hall, ~-aheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. ORDINANCE NO. 4845: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP P. EFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (Amending Title 18, Reclass. 85-86-13, P~M-3000(SC), east of Imperial Highway, south of the southeast terminus of Frontier Court) ITEMS OF PUBLIC INTEREST: Mr. Bill Erickson, 301 East North Street, Anaheim. He submitted a communication to the Council to be made a part of the record taking exception to the escalated predictions for the years 1988/89 relative to the City budget. It urged that the City be more prudent in its fiscal process and pay attention to budget constraints while agressively managing down municipal debt service. Barbara Selleck, 2080 Della Lane, Anaheim. She was concerned that the campaigning was still continuing on an election held three months ago and that one of the first things the Council had done after the election was to fire a Planning Commissioner who had given 12 years of dedicated service to the City. She asked that the Council not use their power as a weapon to exercise their personal whims and for reprisals. She was shocked also at what transpired today and hoped that the public would be able to find out what was happening. Sally Horton, Central City Neighborhood. She is excited about the fresh blood on the Council and is looking forward to the future economic development in the City. RECESS: By general consent, the Council recessed for ten minutes. (3:29 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present with the exception of Counctlwoman Kaywood. (3:40 p.m.) 176: PUBLIC HEARING - ABANDONMENT NO. 87-4A: In accordance with application filed by the Anaheim Redevelopment Agency, public hearing was held on proposed abandonment of a portion of the north side of Center Street, formerly Lincoln Avenue, west of Philadelphia Street, pursuant to Resolution No. 87R-249, duly published in the Anaheim Bulletin and notices thereof posted in accordance with law. Report of the City Engineer dated May 19, 1987, was submitted recommending approval of said abandonment. Mayor Bay asked if anyone wished to address the Council; there being no response, he closed the public hearing. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: The City Engineer also determined that the proposed activity falls within the definition of Section 3.01, Class 5, 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. Councilman Pickler offered Resolution No. 87R-249 for adoption, approving Abandonment No. 87-4A. Refer to Resolution Book. 549 City Hall, Anaheim~ California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. RESOLUTION NO. 87R-249: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM VACATING A PORTION OF CENTER STREET WEST OF PHILADELPHIA STREET. (87-4A) Roll Call Vote: AYES: NOES: TEMPORARILY ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Ehrle, Hunter, Pickler and Bay None Kaywood The Mayor declared Resolution No. 87R-249 duly passed and adopted. Councilwoman Kaywood entered the Council Chambers (3:42 p.m.) and cast her yes vote stating that she had heard the proceedings. 176: PUBLIC HEARING - ABANDONMENT NO. 87-10A: In accordance with application filed by Bowie Development, public hearing was held on proposed abandonment of a portion of an electrical public utility easement on the south side of Ball Road, west of Knott Avenue, pursuant to Resolution No. 87R-250, duly published in the Anaheim Bulletin and notices thereof posted in accordance with law. Report of the City Engineer dated May 19, 1987, was submitted recommending approval of said abandonment. Mayor Bay asked if anyone wished to address the Council; there being no response, he closed the public hearing. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: The City Engineer also determined that the proposed activity falls within the definition of Section 3.01, Class 5, 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 ELR. Councilman Bay offered Resolution No. 87R-250 for adoption, approving Abandonment No. 87-10A. Refer to Resolution Book. RESOLUTION NO. 87R-250: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM VACATING A PUBLIC UTILITY EASEMENT. (87-10A) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Ehrle, Hunter, Pickler, Kaywood and Bay None None The Mayor declared Resolution No. 87R-250 duly passed and adopted. 104: PUBLIC HEARING - REFORMATION OF STREET LIGHTING MAINTENANCE DISTRICT NO. 1981-1: To consider objections to the reformation of Street Lighting Assessment District No. 1981-1 on Hampshire Avenue in Tract Nos. 151§ and 1653. 55O City ~,~]l, An-heim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. Submitted was report dated June 23, 1987 from the City Engineer, Gary Johnson, recommending that the Council declare that there was not a majority protest against Street Lighting Assessment District 1981-1 (Tract Nos. 1516 and 1653) after the public hearing. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin June 11, 1987. Posting of property June 8, 1987. Mayor Bay asked if anyone wished to speak relative to the reformation of Street Lighting Maintenance District No. 1981-1; there was no response. Mayor Bay closed the public hearing. Councilwoman Kaywood offered Resolution No. 87R-251 for adoption, declaring that there was not a majority protest against Street Lighting Maintenance District No. 1981-1 (Tract Nos. 1516 and 1653) either written or oral. Refer to Resolution Book. RESOLUTION NO. 87R-251: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING THAT THERE WAS NOT A MAJORITY PROTEST AGAINST STREET LIGHTING ASSESSMENT DISTRICT NO. 1981-1, TRACTS 1516 AND 1653. Roll Call Vote: AYES: NOES: AB SENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Ehrle, Hunter, Pickler, Kaywood and Bay None None The Mayor declared Resolution No. 87R-251 duly passed and adopted. 104: PUBLIC HF~RING - RR~ORMATION OF STREET LIGHTING MAINTENANCE DISTRICT NO. 1981-5: To consider objections to the reformation of Street Lighting Assessment District No. 1981-5 on Margate Drive and Hill Avenue in Tract No. 2090. Submitted was report dated June 23, 1987 from the City Engineer, Gary Johnson, recommending that the Council declare that there was not a majority protest against Street Lighting Assessment District 1981-5 (Tract No. 2090) after the public hearing. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin June 11, 1987. Posting of property June 9, 1987. Mayor Bay asked if anyone wished to speak relative to the proposed Street Lighting Assessment District 1981-5 (Tract No. 2090); there was no response. Mayor Bay closed the public hearing. Councilman Hunter offered Resolution No. 87R-252 for adoption, declaring that there was not a majority protest against Street Lighting Maintenance District No. 1981-5 (Tract No. 2090) either written or oral. Refer to Resolution Book. 551 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. RESOLUTION NO. 87R-252: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING THAT THERE WAS NOT A MAJORITY PROTEST AGAINST STREET LIGHTING ASSESSMENT DISTRICT NO. 1981-5, TRACT 2090. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS COUNCIL MEMBERS COUNCIL MEMBERS Ehrle, Hunter, Pickler, Kaywood and Bay None None The Mayor declared Resolution No. 87R-252 duly passed and adopted. 155/179: PUBLIC HEARING - SPECIFIC PLAN NO. 87-1 (INCLUDING A PUBLIC FACILITIES PLAN), FISCAL IMPACT ANALYSIS, SPECIFIC PLAN ZONING AND DEVELOPMENT STAN~0ARDS AND ENVIRONMENTAL IMPACT REPOKT NO. 273 (SUPPLEMENTAL): APPLICANT: Southmark Pacific Corporation (So. Pac., Inc.) 2 North Lake Avenue, Suite 800 Pasadena, Ca. 91101 REQUEST/ZONING/LOCATION: To consider adoption of a Specific Plan including Zoning and Development Standards, and a Public Facilities Plan for the proposed Highlands on approximately 816 acres located north of Canyon Rim Road, east of Serrano Avenue, bounded on the north by East Hills Planned Community (Bauer Ranch), east by Wallace Ranch and Oak Hills Ranch, and southeast by Irvine Company property, to provide for the development of up to 2,147 residential units, 8 acres of commercial uses, 285 acres of open space, a 5 acre park site and a 15.3 acre elementary school site. PLANNING COMMISSION ACTION: Adoption of Specific Plan No. 87-1 (including a Public Facilities Plan Section) in the Zoning and Development Standards for Specific Plan No. 87-1 was recommended by the Planning Commission in Resolution No. PC87-94 and PC87-9~; recommended that EIR No. 273 (supplemental) be certified with a statement of overriding considerations. PUBLIC NOTICE REQUIREMF~TS MET BY: Publication in Anaheim Bulletin ~lay 14, 1987. Posting of property May 1§, 1987. Mailing to property owners within 300 feet - May 15, 1987. PLANNING STAFF INPUT: See extensive Staff Reports to the Planning Commission dated March 30 and April 13, 1987. Also see related documents and data which have been made a part of the record as well as the minutes of the Planning Commission hearings of March 30 and April 20, 1987 where extensive testimony was given. This matter was continued from the meetings of May 26, 1987 and June 16, 1987, to this date. Mayor Bay. As he recalled, the developer requested to work with staff in attempts to negotiate the issues not resolved at the last hearing. The Council received a new list of staff recommended 552 6O City Hall, Anaheim, California - COUNCIL MINUTES - June 23~ 1987, 1:30 P.M. conditions of approval on the Highlands Just before the meeting and he has not had an opportunity to review them. He asked that staff summarize the current position on negotiations. Joel Fick, Planning Director. He explained that memorandum dated June 22, 1987, subject: Staff recommended conditions of approval - Highlands at Anaheim Hills, encompassed all the changes previously presented to the Council now incorporated into one document. One exception is Condition No. 91 which was discussed extensively at the last meeting, that involving the Weir Canyon/Serrano circulation link. The City Engineer will give an update on the progress made in that regard. Gary Johnson, City Engineer. Staff met with representatives of Oak Hills and the Highlands project on two occasions which included representatives from the Planning Department, Engineering and the City Attorney's Office. The recommended language before the Council (see Page 15 and 16, Condition No. 91, (a), (b) and (c) satisfies the two general objectives the Council set forth at the meeting of June 16, 1987 - that the three Ranches would share in the costs of the improvements to Serrano and Weir Canyon Road, and that the regional traffic circulation needs and permanent safety access be installed at an early date to assure reasonable development of the area. It is his understanding that both Oak Hills and the Highlands representatives are in conceptual agreement with the condition but that they have some modifications they would like to have considered today. Joel Fick. Since the last meeting all other conditions discussed are resolved, leaving only the resolution of Condition No. 91. Frank Elfend, Elfend & Associates, 1151 Dove Street, Newport Beach, representing the Highlands and Wallace Ranch Developments. They do agree with all of the conditions but with the understanding that their recommended modification of wording of Condition No. 91 would affect other conditions, about two or three. Condition No. 95 would be affected as well. In other words, the modified wording they are going to propose today would have an effect on other conditions but related to the same items. Based upon a statement made at the last meeting by Jim Dennehy of Oak Hills, who gave his commitment to construct his portion of Serrano, there was a meeting with staff for the purpose of eliminating the Highlands from being solely responsible for the bonding and/or construction requirement with the connection of the road subsequent to the 401st unit. At the last meeting, they also proposed that the timing of construction for the temporary fire access road be prior to occupancy of the first unit. Staff suggested it be prior to placement of combustible materials on the property. Other items discussed 553 Cit~ Hall~ Anaheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. were staff's position regarding the Highlands participation in the financing for Fire Station #9. Those were the items worked out with staff in the last week. On Wednesday they specifically discussed Condition No. 91 regarding exactly how that Serrano Weir Canyon Road connection would be made and at what time. They met themselves as well as the Oak Hills Developer before hand and agreed to a condition worded essentially indicating the following: That the Highlands developer would post a bond prior to the approval of the first final map to guarantee the construction of Serrano on site and if not provided by the Wallace Ranch agreed to bond for half of the construction of the Serrano/Wetr Canyon Road connection within the Wallace Ranch prior to the occupancy of the 401st residential unit on the Highlands project. The same condition was concurred by Hr. Dennehy. It was also indicated at that time that they (Highlands) would agree to Condition No. 74 as currently worded indicating that a temporary access road would be placed prior to the placement of combustible materials. They believe that the wording they mentioned a moment ago would enable the road to move forward and the two Ranches to move forward which was acceptable pursuant to Council direction. At a meeting later that day, the City Engineer suggested two additional sub-items - if the Highlands and only the Wallace Ranch project developed, that there would be a splitting of the bonding and cost to construct Serrano through the Oak Hills property which Highlands thought was reasonable and consistent with Council direction as well. The City Engineer also suggested an additional sub-condition, (c) requiring the Highlands project to complete the entire roadway link prior to the 401st unit occupancy which was the same condition recommended by staff last week. The reason they concurred with the continuance last week was to provide a condition which would not allow that condition to occur to have one developer building the entire roadway link. In that regard, they object to sub-item (c) for the same reasons as communicated last Tuesday (see minutes that date). The Serrano/Weir Canyon connection is not recommended in the EIR, a previous condition was negotiated with staff providing other circulation subsequent to the 401st dwelling unit, and the connection is not needed to provide access to the project. They are, therefore, proposing amended wording. Hr. Elfend then submitted document entitled, Revised Conditions, June 23, 1987 containing their proposed wording of Condition No. 91~ (a), (b) and (c) attached to which was an Exhibit entitled - Circulation Systems Subsequent to 401st Residential Unit, The Highlands at Anaheim Hills (made a part of the record). Mr. Elfend briefed the proposed wording of the condition. Highlands believes that the wording as indicated in Condition No. 91 (c) would be consistent with that negotiated previously as well as that which is identified and recommended in the EIR. With that modification, they recognized that Condition Nos. 90, 95 and 110 will require some type of ¢it~ Hall, Anaheim, California - COUNCIL MINUTES - June 23~ 1987, 1:30 P.M. revision as well. In order to be good neighbors and to move forward, a remaining item before the Council last week, they will also agree to Condition No. 79 regarding the financing for Fire Station ~9. In concluding, Mr. Elfend stated they are comfortable with Condition No. 91, (a) and (b) but (c) as recommended by staff would put Highlands where they were last week. They suggest the condition negotiated previously with staff be adopted. A copy of the document Just submitted was given to Mr. Fick yesterday. Gary Johnson, City Engineer. He clarified for Councilman Pickler the difference between Mr. Elfend's and staff's recommendation. For the area to reasonably develop and handle the area-wide traffic and safety service access, each of the Ranches, if only one of the three Ranches developed, should share the responsibility to place the backbone arterial system and be reimbursed when the other Ranches do develop. It is consistent with the recommendation the Planning Commission gave the Council which required the Highlands project to be responsible for the full arterial, should other Ranches not develop and also in agreement with the staff recommendation to the Council that Highlands bear that responsibility. This would only occur if the Wallace or Oak Hills Ranch were not to develop in a reasonable manner and staff believes that not to be the case. Mayor Bay. He asked staff since sub-item (c) could encourage throwing all the front money on the Highlands for the entire development of the extension of Serrano, what their problems are, if any, with the revised and recommended wording in subsection (c) as submitted by the Highlands. Gary Johnson. It was his understanding from the discussion last week and also discussions at the Planning Com~tission there was a desire to have an assurance that the Serrano/Weir Canyon connection would be in place. That is something the City should be looking for. If the City does not have that assurance, the Highlands could fully develop, ierrano would be constructed through their property and access in the area would then not be as good as it could be if they had placed the arterial roadway. Mayor Bay. It is the Council's hope that the developers they are dealing with today, basically all three, are committed to go ahead with their project. He has no doubt that all three are going to take place and that Serrano will be built and each developer will pay their share. The issue now is that Highlands cannot live with the wording of Condition No. 91 (c) as recommended by staff 555 55 Cit7 Hall~ Anaheim~ California - COUNCIL MINUTES - June 23~ 1987~ 1~30 P.M. because it might even encourage someone to make them come up with all the front money for the whole road, whereas revised (c) as proposed by the Highlands gives a certain amount of insurance as to circulation and does commit to develop Serrano over to the edge of their property and across their property before they occupy the 401st unit. City Manager William Talley. It also gives the option if they want to, to expand Fairmont Boulevard for the construction of hundreds of units over years of time since their trucks would be using that road with the attendant problems that would bring. If Council approves (c) they should also recognize they are committing that neighborhood to years of construction vehicles driving up and down that severe grade. Discussion followed between City Manager Talley and Mr. Elfend relative to the wording of (c) specifically the last sentence as recommended by Highlands, "construction trucks shall be prohibited on Fairmont Boulevard, unless it is widened to its ultimate." In concluding, City Manager Talley stated, if the Council would consider it, he would recommend that the last sentence only be removed (the foregoing sentence) and that it say, "construction trucks will be prohibited on Fairmont Boulevard period. Mr. Elfend assumed that a construction truck would be a major truck carrying materials to the site that would use a temporary road and not an automobile that would be parked on the site. Paul Singer, Traffic Engineer. There is an existing ordinance prohibiting trucks on Fairmont Boulevard over 6,000 pounds. Those trucks are prohibited now. Jim Dennehy, Oak Hills Development, 1535 Orangewood, Anaheim. Oak Hills is agreeing to the same requirements as Highlands. Upon approval of their Final Tract Map (Oak Hills) or Parcel Map, they would have to bond just as Highlands. It was his understanding the conditions were going to be the same as Highlands. Gary Johnson. The conditions would be the same with one exception, that the Oak Hills Development, because it is landlocked, if it is the only project that moves forward, they will have to bear the obligation to construct an off-site construction of Serrano merely to gain access to the property. Geographically, they are in a different situation than Highlands. Mayor Bay. His feeling is that Highlands has gone far on the negotiations. He is not that concerned about subsection (c) 556 City Hall, Anaheim, Cmlt~ornia - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. other than as an insurance factor. If Council has anymore questions on the last remaining discrepancy between staff and the developer which is the revision on Condition No. 91, he suggested that they be asked at this time. Councilman Ehrle asked Mr. Elfend if he agreed with everything other than the wording with regard to Fairmont Boulevard. Frank Elfend. They agree with Condition No. 91 (a) and (b). They are proposing re-wording only of sub-item (c) as they have indicated, but agreeing to the elimination of the last sentence with regard to the construction trucks on Fairmont. Councilwoman Kaywood. She still has a problem with Condition No. 11 with regard to the Assessment District. She would like to see that it be left not for two consecutive years, but that the mechanism remaining and if there is no problem with the differential in the income and costs, that no levy be established in that year but that it remain in place so that the rest of the taxpayers are not going to be stuck with anything in the building of a whole new City in the hills. Jerod Ikeda, Oak Hills Ranch. Relative to Condition No. 91 (a) in the staff report dealing with timing of the posting of the bond, they are requesting that the last sentence be changed to say, "the 401st residential unit on the Highlands project, or when grading commences on the Oak Hills Rmnch," rather than placement of combustibles. The reason is that essentially they would be building Serrano and grading that area prior to putting combustibles on the property. Gary Johnson. That is acceptable to staff. Strike the words, "placement of combustibles" and substitute, "commencement of grading". Mayor Bay asked if there was any problem with that change from Highlands, and received notice from the Highlands representative, this change would be acceptable. Dennis Cardoza, 3150 East Birch, Brea. He is representing Vic Peloquin, owner of three acres along the 91 Freeway on which the storm drain for the development under discussion will be splitting up to "Y" and crossing the property in two locations. They are starting construction and grading to develop an office building on their site and are concerned if the City can ratify or stipulate to the development that the verbiage they have now stating that they will place a storm drain through their property has time lines or specific guidelines of when they start since they are under construction 557 City Hall~ Anaheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. at this time. Otherwise, they will be handicapped if there are delays starting the Highlands project. They are also installing extensive road improvements and feel it would be inappropriate to have part of the storm drain placed into the property now through Santa Ann Canyon Road, have their Project improve the road and then at a later date come back and dig up the road to complete the storm drain and have a patch Job on Santa Ana Canyon Road. They are requesting that the City stipulate that the storm drain, at least through their section be done immediately and deadlines set when it is to be completed so they can complete their development. Gary Johnson, City Engineer. A condition placed upon Anaheim Hills around 1975 and now on the successor to Anaheim Hills required the installation of the storm drain when a downstream property owner concluded the design of their facility and obtained all necessary permits. It is his understanding that the Peloquin Development has almost completed its design and is in the process of securing permits. Once completed then the City will request that Southmark (Highlands) proceed and construct the facilities. There is already an existing condition that requires the improvements by requiring the improvements be installed. If the Council desires to put time limits other than the existing condition, they could do that. Whatever the speed that $outhmark can proceed, staff would expect that they would fulfill their obligation. Dennis Cardoza. He is aware of that but it is not specific on whether they will start now or six months from now. He reiterated they do not want to see a delay because of some problems where they would not be able to start for another four or five months. Jack White, City Attorney. In 1975 when a grading permit was issued to Anaheim Hills Inc., one of the requests by Anaheim Hills was that the City waive the then applicable requirement for the installation of the storm drain at that time. A condition was placed upon their approval of the grading permit that Anaheim Hills was granted which provided in substance that the City would defer construction of the storm drain until such time as the first development of a downstream property which in this case would be Peloquin. There was a condition imposed that was tied to a development by another developer in lieu of requiring Anaheim Hills to construct the storm drain in 1975. Southmark, as successor to Anaheim Hills, is here today on the Highlands property and Peloquin's property is developing at this time. Therefore, notice has been given by the City Engineer to Southmark to comply with the condition established in 1975. He suggested that they hear from Southmark on the matter. 558 City Hall, Anaheim, California - COUNClL MINUTES - June 23, 1987~ 1:30 P.M. Frank Elfend. They have discussed the item with Peloquin and also had a meeting with Jay Titus, Civil Engineer, Mr. Peloquin and Highlands and went through the conditions which indicate when the downstream developer develops his property, the first developer shall prepare the necessary plans and obtain approvals of all affected public agencies. They advised Mr. Peloquin when he did get all the permits necessary pursuant to the condition they would move forward. He is surprised to find a representative here today when Highlands has yet to get the permits from the Department of Fish and Game and other agencies. When they get those permits, they will move forward. No one is trying to get out of the condition. Gary Johnson. His Department has not seen the proposal from Southmark but believe that the ultimate facility would be constructed to the south side of Santa Aha Canyon Road. The run off is not adequate to this point to extend it through to the south until development occurs on the Highlands and they have conditioned the Highlands project to construct the storm drain through that reach. It is covered as far as the conditions are concerned. When proposals come in, they will be reviewed to make certain they will comply with the drainage needs in that area. Mayor Bay. This is an issue which Engineering is totally aware of. The existing conditions are there, the law is there and it might be best if Council lets the Engineering Department do their Job. Mr. Cardoza. He is quite aware of the conditions placed on them. As of this afternoon, they have obtained the permits. Their major concern is the language on the timing of when Highlands is going to start - when it starts and when it is finished. He wanted to know what will force Southmark acting toward that construction quickly so that when the roads are in they do not have to be dug up again. City Attorney White. The only thing that controls is the language in the condition in 1975 when the waiver was granted on the requirement to the construct the storm drain. It merely provides that at the time of development of the first downstream property that the storm drain shall be put in and that plans and specifications be prepared and all necessary permits be obtained by that property owner. In legal terminology he believes the City would have the right to enforce that condition, if the storm drain was not put in within a reasonable time upon assurance that the development was proceeding. What he heard from Mr. Elfend was that Highlands would proceed expeditiously to put that in. Based on 559 51 City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. that understanding, sta£f can proceed and work out the details with the two property owners. Mr. Elfend. He concurs with what the City Attorney said. There being no further persons who wished to speak, the Mayor closed the public hearing. Councilwoman Kaywood. She again referred to Condition No. 11 regarding the assessment process so that there will be no burden on the rest of the taxpayers of Anaheim to pick up any cost differential if revenues do not come in as expected. She is concerned about the two-year period. Many changes and unexpected things could happen. If the City was losing money, it would be impossible to set it up again. Councilman Pickler. He was under the impression that issue had been resolved and there was a Council consensus that the two-year period was acceptable. Discussion took place between Mayor Bay and Councilwoman Kaywood relative to the issue wherein Councilwoman Kaywood felt that a ten-year period would be more suitable or even five; Mayor Bay did not agree. COUNCIL ACTION: Mayor Bay closed the public hearing. ENVII{0NMENTAL IMPACT REPORT NO 273 (SUPPL~tENTAL) - CERTIFICATION: Environmental Impact Report No. 273, having been reviewed by the city staff and recommended by the City Planning Commission to be in compliance with City and State guidelines in the State of California Environmental Quality Act, the City Council, acting upon such information and believed as hereby certified on motion by Councilman Pickler, seconded by Councilman Bay, that Environmental Impact Report No. 273 is in compliance with the California Environmental Quality Act and City and State guidelines and adopted a statement of overriding considerations as recommended by the City Planning Commission. Councilwoman Kaywood abstained. MOTION CARRIED. MOTION: Councilman Pickler moved to receive and file the Fiscal Impact Analysis regarding the Highlands Development. Councilman Bay seconded the motion. MOTION CARRIED. Councilman Pickler offered Resolution No. 87R-253 for adoption, approving Specific Plan No. 87-1 including the Public Facilities Plan relative to the Highlands project. Refer to Resolution Book. RESOLUTION NO. 87R-253: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING SPECIFIC PLAN NO. 87-1 INCLUDING THE PUBLIC FACILITIES PLAN. 560 City ~a]l, An-helm, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. Roll Call Vote: YES: COUNCIL MEMBERS: Ehrle, Hunter, Pickler and Bay NOES: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: Kaywood ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 87R-253 duly passed and adopted. Joel Fick. There is a change requested by Oak Hills on Condition No. 91 (a), Page 15 of the staff conditions, second to last lime, the first paragraph. Oak Hills is requesting the wording, "when grading commences," in place of, "or the placement of combustibles." Staff would propose that same wording apply also in subsection (b) Page 16, the fourth line which pertains to the event with Highlands the Wallace Ranch proceeding concurrently without Oak Hills. For consistency with all Ranches the wording should be - that, "placement of combustibles be replaced with, "when grading commences." Mr. Elfend indicated that was acceptable to Highlands. Gary Johnson. If they are replacing subsections (c) as proposed by Mr. Elfend with deletion of the last sentence then the last two paragraphs staff proposed on Page 16 stay as is. They are only dealing with subsection (c) to his understanding. Frank Elfend. The wording Highlands provided also included some deletion of other wordingwhich relates to revision of sub-item (c). When taking out sub-item (c) it would take out wording that related to sub-item (c) at the end of that condition. He concurs with Gary Johnson. Gary Johnson. The only change, in the staff proposal, the H±ghlands Development was required to bear the cost of forming the benefit districts. In the Highlands language, the expense of the benefitting Ranches would be shared. It is minor but they should know that exists. Mr. Elfend. They would feel more comfortable with the reimbursable language. City Attorney Jack White. The item is on the agenda as an ordinance and the ordinance has not been prepared. He suggested that the Council direct staff to prepare the ordinance with the conditions included and bring it back for first reading. If there is doubt in anyone's mind whether it is properly worded or there is a misunderstanding, they will be all together in one place at one time to look at. 561 49 City Hall, Anaheim~ California - COUNCIL MINU~ES - June 23~ 1987~ 1:30 P.M. Mayor Bay wanted the issue settled today so that the hearing could be ended. The City Attorney and Mr. Fick were ready at this time to clarify the language. Mr. Fick clarified the changes as follows: Condition No. 91 subsection (a) first paragraph, second to last line replaces the wording, the placement of combustibles with - "when grading commences." On subsection lb), Page 16 line four, the same substitution occurs. On subsection (c) use the revised conditions as submitted by Mr. Elfend replaced with staff recommended subsection (c) with the exception of the elimination of the last sentence of subsection (c), "construction trucks shall be prohibited on Fairmont Boulevard unless it is widened to its ultimate." The two paragraphs that follow subsection (c), the first paragraph remains intact with the understanding that establishment of the reimbursement districts is a reimbursable item, and the second paragraph is deleted because it is not applicable. Frank Elfend. He concurred with what Mr. Fick stated. From the audience, Mr. Dennehy, in answer to the Mayor, noted that he does not have any objection to the changes as articulated by Mr. Fick. MOTION: Councilman Pickler moved to direct the City Attorney to prepare an ordinance reflecting staff recommended conditions of approval (June 22, 1987 memorandum) but including changes made to Condition No. 91, subsections (a), (b) and (c) as articulated. Councilman Hunter seconded the motion. MOTION CARRIED UNANIMOUSLY. 179: PUBLIC HEARING - VARIANCE NO. 3642 (READVERTISED) AND NEGATIVE DECLARATION: ~ Reuben De Leon 11095 Meads Anaheim, Ca. 92801 REQUEST/ZONING/LOCATION: To construct a 2-st0ry, 12 unit "affordable" condominium on proposed RM-2400 zoned property located at 207 and 211 No. Coffman Street, with the following Code waivers: (a) Minimum building site area per dwelling unit, (b) maximum structural height, (c) maximum site coverage, (d) minimum structural setback, (e) required recreation-leisure area. PIANNING COMMISSION ACTION: Resolution No. PC87-96 denied Variance No. 3642; approved ElK Negative Declaration. HEARING SET ON: Appealed by Hugo Vazquez, agent for the applicant. PUBLIC NOTICE KEQUIREMENTS MET BY: Publication in Anaheim Bulletin June 11 and 13, 1987. 562 5O City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. Posting of property June 12, 1987. Mailing to property owners within 300 feet - June 12, 1987. PLANNING STAFF INPUT: See Staff Report to the Planning Commission dated April 27, 1987. APPLICANT'S STATEMENT: Hugo Vazquez, 619 South Live Oak Drive, Anaheim. The project is a 10-unit condominium complex originally designed for 12 units. Two units were eliminated from the rear allowing a setback of 67-feet away from the rear property line. The townhouse style units are 3-bedrooms with two and one-half baths with an attached double car garage providing immediate access to the unit. The units are designed so that no windows will face Evelyn Drive and there will be no visual intrusion to that property. The project is identical to the project brought to the Council approximately a year ago, the 27-unit condominium project at 1920 East Cypress Street. Young Lion Development (Mr. Vazquez's Company), took the project over from Pierco Development which was denied by the Planning Commission for RM-1200 on the entire east and west side of Coffman Avenue. Young Lion petitioned the proposal to the City Council for ILM-2400 on the west side and RM-1200 on the east. There was no plan brought before the Council at that time on west side but only on the east side. They represented to the Council at that time they would bring in the same project that was approved for the 27 units under the RM-2400 zone approved by the Council on Cypress Street. Mr. Vazquez then briefed the Council relative to costs involved in order to build in Coffman and Cypress Streets. PUBLIC DISCUSSION: IN FAVOR: None. It was determined by a show of hands that there were approximately 12 people present in opposition. PUBLIC DISCUSSION: IN OPPOSITION: Kuth Motley, 203 Evelyn Drive. She referred to the previous petition submitted in opposition containing 61 signatures of residents on Evelyn Drive which listed the reasons for their objections - waiver of minimum building site area, creating too much density, waiver of maximum structural height, thereby putting 2-story units too close to single-family dwellings, waiver of maximum site coverage above what the Code allows and waiver of minimum structural setback and required recreation/lesiure area. The residents are asking that the Council abide by the Code because of the density and that all waivers be denied, and instead work toward a development that will provide quality living in that area. Since the east side of Coffman Street was approved for RM-1200, 47 __ Cit7 Hall~ Anaheim, California - COUNCILMINUTES - June 23~ 1987, 1:30 P.M. the residents feel they are being fair in asking that they stay strictly to Code on this project. Cruz Sandoval, 224 Evelyn Drive, (resident of the City since 1924). The residents do not want to see a "Chevy Chase" created in their backyard or a "Jeffrey/Lynn" area. There was such an area very close to them already called the Village Inn, a high density project. He urged the Council not to approve the subject project but that the Code be adhered to. Councilman Pickler. Mr. Vazquez was going to build affordable units represented by the two units above Code. As explained by Councilwoman Kaywood, 8 units are permitted. If Mr. Vazquez goes to 8 units instead of the 10, it will eliminate the two affordable units. The idea is to put something on Coffman Street that will revitalize the area. Condominiums are better than apartments and the proposed project is a start in that direction. Cruz Sandoval. He reiterated they are against the waivers and requested that the developer build to Code. Even 8 units on the two lots would be too much but the neighborhood would be agreeable to 8 units. Lou Weimer, 173 Evelyn Drive. Mr. Vazquez already has a project approved for 27 units next to the church on Cypress and 27 units by the Village Inn. That only accounts for one-third of the development potential. Ail the residents are asking is that the west side of Coffman be reduced and held to whatever Code calls for and nobody will have any objections. SUMMATION BY APPLICANT: Hugo Vazquez. He met with the neighbors and walked the site and demonstrated that there was 67 feet from the property line. At that time, they were very much in approval in their attitude but they changed their mind and decided they were not going to be able to agree. He could get a 10-unit apartment complex on the site with a majority of one bedrooms, some two bedrooms but thought that the west side of Coffman would be more preferable for home owner units than on the east side. He assumes that the neighborhood would rather see a 10-unit apartment building than a 10-unit condominium project. There is no way he could bring in a 10-unit condominium project to Code. COUNCIL ACTION: Mayor Bay closed the public hearing. 564 City Hall, An~_beim~ California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. Councilwoman Kaywood. She asked staff how many units could be developed if built to Code on 3,000 square-foot lots. Annika Santalahti, Zoning Administrator. She answered at Code it could be 8 dwelling units at 3,000 square feet. She confirmed if the affordable units were left out, they could reach Code. Councilwoman Kaywood. She has a problem with talking about condominiums on 2,400 square feet. There is no way she could vote for a condominium on less than 3,000 square feet. In viewing the plans, she is concerned to see two master bedrooms and two and one-half bath and say that is going to be one family. It is an invitation to multiple families. The neighbors in the area are entitled to have condominiums that are truly condominiums. By having 8 on a 3,000 square-foot lot there could be homeownership but not by squeezing them in with all the waivers being requested. Councilman Hunter. He agreed. The density was too high and if the project were built to Code, it would be a much better project. The 150-foot away from single-family is down to 67 feet. Discussion then followed between Councilman Ehrle and Mr. Vazquez regarding the affordable units. Mr. Vazquez reported that the price range for the affordable units would be between $85,000 and $95,000 and the non-affordable appraised value would be between $110,000 and $122,000. Whether they would sell for that he would doubt it unless he is able to pick up the rest of the block. With a lesser amount of unitS, he would have to sell every one at market value and probably not get financing for the project. What he would have to price them at would be the same as Waterscape (the old Fremont Jr. High site) and that project has not sold well. That developer is still trying to sell those units. His only other alternative is to do an apartment complex on the site to Code, and that way he would not have to be before the Council at a public hearing because he would not need any variances. Councilman Pickler. He asked for clarification that is mentioned by Mr. Vazquez he could build 10 apartment units on the property without a public hearing if there were no variances. Annika Santalahti. She does not believe he could. The waiver that pertains to structural height has a different standard in the condominium zone vs. apartments. With condominiums it is possible to come as close as 50 feet with 2-stories as long as the second-story has no windows and is not visible to the single-family zoning. That exception is not in the apartment RM-2400 zone and at Code City Hall~ Anaheim, California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. it is necessary to maintain a 150-foot setback. Effectively it would be necessary to knock off almost another 100 feet of the 2-story portion of the building if it comes close to the property line. She does not think in practice he can achieve that. She believes he could build 8 units. The recreational/leisure requirement is actually lower but the height is a critical one. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Councilwoman Kaywood, seconded by Councilman Bay, 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. City Attorney Jack White. To clarify the record, he explained that the Code allows 8 units. The development has been processed as an affordable project, which means if it contained no other variances whatsoever the applicant would still be entitled to a density bonus which amounts to two units. He would be able to build 10 if he were building to Code in all other respects. Because of the variance requests for (b), (c), (d) and (e), Council has the prerogative, in this instance, to deny it on the basis that they make the findings for the normal variance that it does not comply with other properties im the same vicinity and zone and is not denying a privilege afforded to other properties in the same vicinity and zone. That should be the basis for the resolution. Councilwoman Kaywood stated another item not discussed today was circulation and that is a situation that is very tight even with Evelyn Drive closed off at Cypress. She did not want to see any more units than Code permits. Councilwoman Kaywood offered Resolution No. 87R-254 for adoption, denying Variance No. 3642 (Readvertised), upholding the findings of the City Planning Commission. Re/er to Resolution Book. RESOLUTION NO. 87R-254: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DENYING VARIANCE NO. 3642. Before a vote was taken, Mayor Bay stated they have talked about Coffman and Cypress Street for many years. Everybody who lives on Evelyn Drive knows where City Hall is because they have been here so many times. The Council has tried many times to make something economically feasible happen on the so called improvement of Coffman Street with the long deep lots and possibly changes in that development. The Council said they were going to allow a change over for improvement in new development on the east side of Coffman - ILM-1200 and 566 City ~l 1, A_nsbeim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. apartments. On the west side, he assumed they were talking about RM-2400 which means residential multiple but still within ER-2400 or rentals. There is no intent of the Council to impact the people on Evelyn Drive. They have tried to protect the sanctity of their neighborhood and have not changed that view. He is only cautioning when a developer comes in and attempts to put in condominiums, ownership units, that they should look more closely and negotiate with that developer from that standpoint of a preference of having condominiums bordering their homes vs. what a developer might be able to do even within code on rentals on RM-2400. A vote was then taken on the resolution of denial. Roll Call Vote: AYES: COUNCIL MEMBERS: Ehrle, Hunter, Kaywood and Bay NOES: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: Pickler ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 87R-253 duly passed and adopted. RECESS - CLOSED SESSION AND DINNER BREAK: By general consent the Council recessed to Closed Session and a dinner break. (6:12 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (8:05 p.m.) 106: PUBLIC HEARING - APPROPRIATIONS LIMIT: To consider the appropriations limit of $110,763,064 for the Fiscal Year i987/88. Submitted was report dated June 16, 1987, from the Program Development & Audit Department, recommending that the Council establish an appropriations limit of ~110,763,064 for the Fiscal Year commencing July 1, 1987 and ending June 30, 1988. Attached to the report were seven Exhibits showing the calculation of the proceeds of taxes subject to limitation as well as the appropriations limit and appropriations limit margin. Mayor Bay stated the Gann Act in the State of California limits appropriations based on population. It is almost an administrative act by the Council setting the appropriation limit under the law. He them asked if anyone wished to speak. No one wished to speak. Mayor Bay stated the information that is provided with the report is very useful when looking at pure net numbers and he would recommend that anyone who wants to do a serious study on the City budget obtain copies of the report. The Mayor closed the public hearing. 567 City Hall~ Amahetm, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. Councilman Hunter offered Resolution No. 87R-255 for adoption. Refer to Resolution Book. RESOLUTION NO. 87R-255: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR198?/88. Roll Call Vote: AYES: COUNCIL MEMBERS: Ehrle, Hunter, Kaywood and Bay NOES: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: Pickler ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 87R-255 duly passed and adopted. 106/108/142: CONTINUED PUBLIC HEARING - RESOURCE ALLOCATION PLAN: To consider the proposed 1987/88 and 1988/89 Resource Allocation Plan. This matter was continued from the meeting of June 16, 1987, to this date. Submitted was report dated June 16, 1987 from the Program Development & Audit Department relating to the Transient Occupancy Tax and recommending that the Council amend certain sections of the Code pertaining to such tax thereby increasin~ the Transient Occupancy Tax (TOT) from 8% to 10% and to provide specific instructions to the operators of hotels/motels for the determination of the room revenue portion of special package rates effective August 1, 1987. Mayor Bay announced that the first action then related to a proposed ordinance amending Chapter 2.12 of the Code regarding the TOT to be effective August 1, 1987. City Manager Talley. In addition to raising the tax from 8% to 10%, in an effort to accommodate the lodging industry, they also included as a provi~sio~ that answers their need regarding how they will report theii~'-~ on special packages. The language will help them and also help the City in automating their efforts. Mayor Bay asked if anyone wished to speak relative to the proposed ordinance increasing the TOT; there was no response. Councilman Pickler offered Ordinance No. 4846 for first reading. ORDINANCE NO. 4846: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTIONS 2.12.010, 2.12.020 AND 2.12.050 OF CHAPTER 2.12 OF TITLE 2 OF THE ANAHEIM MUNICIPAL CODE RELATING TO TRANSIENT OCCUPANCY TAX. 106: COMMUNITY SERVICES AGENCY FUNDING FOR FY 1987/1988: Mr. Steve Jimenez, Chairman of the Community Services Board, (CSB) briefed his report dated May 14, 1987, recommending that the Council approve a FY 1987/88 Community Service Agency funding level of [124,471 (report made a part of the record - it 568 Ctt7 Hall, Anaheim, California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. was accompanied by a large booklet entitled, Community Services Funding Agency Applications - Fiscal Year 1987/88 - included was a budget request comparison chart covering the years 1985/86, 1986/87 and the 1987/88 funding requests from the 16 agencies who submitted applications). Not knowing the exact amount of money that was going to be funded, they came in under the funding level established last year. There is an appeal of one of the funding agencies which will be addressed by that agency. An additional item of information is that the $10,000 funding level recommended for the Orange County Center for Health (their request was for $26,000) that Agency will also be receiving 530,000 in Community Development Block Grant (CDBG) funds for capital purchase of property for child care. The Board spent considerable time on the entire issue. Mayor Bay. He thanked Mr. Jimenez. He knows he speaks for the whole Council and thanking not only Mr. Jimenez but the entire Board who take this very difficult process and handle it for the Council. In the last two years, the Council has basically only had to approve what the CSB has recommended. He commented further to the agencies who do all the fine work that the Council's decisions tonite on the funding, whether approved, reduced or increased have nothing to do with any Council Member's opinion of the very fine and good work the agencies do throughout the County. Decisions are limited by looking at the fiscal restraints upon the City which were quite binding this year. Councilwoman Kaywood. She also personally thanked everyone involved and was pleased to see that the recommendation was unanimous on most of the requests. She also noted the request from RSVP (Retired Senior Volunteer Program) that if they do not receive the funding that they requested, 516,849, the amount they have received since 1985/86 recommended to be cut to 510,000 this year, they would not be able to continue to provide their services and they do an outstanding Job with Anaheim people. Council Members Ehrle, Hunter and Pickler also added their appreciation to the CSB for the fine work they had done. Mayor Bay opened the floor to appeals of the recommended funding levels. Sharon Phelps, Director of RSVP of North Orange County. They maintain two small offices in Anaheim. The future of her program is on the line. She requested that the funding to RSVP for 1987/88 be maintained at the level it was funded and requested in the past of 516,849. The 510,000 recommended level is just above the level funded by the City in 1981/82. At that time, they had only one 20-hour staff person in the City at a 569 41 Cit7 Hallt Am-he~m~ California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. lower level of volunteer support. The fate of their program is important to her and her volunteers. The history of support from the City goes back to 1974. The City has allowed RSVP to grow, expand and provide services to many areas in the City. The primary goal is to work with seniors to keep them involved and that way the community benefits. Their volunteers are 60 years of age and over and they benefit. The cost of supporting the program is relatively small when considering the funding requested. Decreasing funding will negatively impact their program. She urged the Council to maintain the previous funding level of 316,849. Doris Green, 1503 Rita Lane. She gave over 200 hours to KSVP in 1986 in Anaheim. She asked that the Council please help with any funding so that they may continue their work. No further persons wished to speak. Councilwomau Kaywood. She elaborated on the fine work of the RSVP and emphasized that adding the 56,849 to the funding as requested by RSVP would keep the program intact which is the same amount (516,849) they had allocated in the last two years. MOTION: Councilwoman Kaywood moved to add ~6,849 to the RSVP as requested by the Agency bringing the total to 516,849. Councilman Pickler seconded the motion. Before a vote was taken, Mayor Bay spoke against the motion, relaying his previously stated opinions relative to his opposition to government funding for any charitable organizations regardless of the fine work they do, which he felt, in effect, the Council was making a gift of public funds to those organizations. Within the month he is going to recommend strongly what he recommended in past years that they set up a sunset on all of the community service agency funds being funded in anyway by taxpayer money from the City. He does not believe taxpayer money should be handed out by people sitting in office particularly at the City level of government. He was also intending to make a recommendation that they reduce community service agency funding levels to ~100,000 this year, cutting that level to $50,000 next year and making it zero the following year as the County has done. He still feels strongly that is what they should do. Councilwoman Kaywood again spoke for her motion and the benefit that would be derived from maintaining the funding level for RSVP; Councilman Pickler did not agree with the concept of sunsetting funding to community service agencies. The funding is minimal compared to the budget as a whole. The RSVP, perhaps more than anything, returns much to the Anaheim community. 570 42 City Hail, Anaheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. Councilman Hunter. He suggested that they get together after this year and have a fundraiser. The City was not in the charity business. If they are serious about having charity he proposed that all five Council Members get together and have a fundraiser and give the money derived from that to the community service agencies. A Roll Call Vote was then taken on the motion by Councilwoman Kaywood that the funding level of RSVP be increased from the recommended $10,000 to $16,849 as in the two previous years. The motion failed to carry by the following vote: Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood and Pickler Ehrle, Hunter and Bay None MOTION: Councilman Hunter moved approval of the Community Services Board Fiscal Year 1987/88 Community Services Agency funding level of $124,471 as recommended in their report of May 14, 1987. Councilman Ehrle seconded the motion. Before a vote was taken, Councilman Ehrle asked that the people who did not gettheir increase to contact him personally and he would do whatever he could to raise some of that money. Mayor Bay noted that the money was not in the budget; Councilwoman Kaywood asked the City Manager to explain where the money comes from. City Manager Talley. Traditionally Council has directed that amount be removed from the amount set up in the Council Contingency Fund which he believes is $400,000. There was approximately $275,000 left in the fund. They would take the money just allocated and place it in the Parks, Recreation & Community Services Department for implementation through contracting with the various agencies. A vote was then taken on the motion by Councilman Hunter, allocating $124,471 to the Community Services Agencies, as recommended by the Community Services Board and carried by the following vote: Roll Call Vote: AYES: COUNCIL MEMBERS: Ehrle, Hunter, Pickler and Kaywood NOES: COUNCIL MEMBEES: None ABSTAINED: COUNCIL HFA~BERS: Bay ABSENT: COUNCIL MEMBERS: None 106: ADDITIONAL COMMENTS - BLUE RIBBON COMMITTEE REPORT: Mayor Bay. The Council has been presented with the Chamber of Commerce Blue Ribbon Committee Report (see minutes of June 16, 1987) and have .571 39 City Hall, Anaheim, California - COUNCIL MINUTES - June 23~ 1987, 1:30 P.M. received a response to the Blue Ribbon Committee (BRC) report today (see - Response to the Chamber of Commerce Blue Ribbon Committee Report - 1987/89 Resource Allocation Plan). He has not had an opportunity to read the staff's response to the BRC report. City Manager Talley. According to the schedule the City had with the Chamber, the Chamber provided their comments a week ago Friday and delivered the report last Tuesday. The agreement was to submit the City's reply to the Council. In the event the Chamber wishes to address the Council, he suggested as a courtesy that the Chamber be asked if they have any comments so that they would not have to come back to the Council meeting next week. Dennis Hardin, Chairman, Anaheim Chamber of Commerce Blue Ribbon Committee. One of the recommendations may have been misinterpreted. The Chamber had recommended a hiring freeze at the current level of full-time City employees. That is not to say people leaving the City's employ should not be replaced. The Chamber is recommending to keep the current employment levels at the same level. Other than that, he cannot add anything more to the report already submitted but make themselves available to the Council if they wanted clarification on any of the points brought up at the previous meeting or anything else in their report. Councilwoman Kaywood asked Mr. Hardin if he had an opportunity to review the responses to the BEC and if he had any comments; Mr. Hardin answered that he had and he had no specific comments. There are several areas where they agreed to disagree and some areas where he stands corrected knowing the information he now knows. Relative to the Police Department, had they known the information that was presented last Tuesday (see minutes of June 16, 1987) relative to the Public Safety Package, they might not have taken such a hard line view on increasing the number of people allocated to the Police Department. He is not certain they would have gone along with all the people Chief Kennedy is requesting but perhaps would have allowed for some increase and also for the fact that some of the funding sources will not be coming out of the General Fund. RESOURCE ALLOCATION PLAN - GENERAL: Mayor Bay. He prefaced his remarks on the budget stating that he had spent many hours going through it. There is a built-in deficit to the budget starting at about $3.5 million without taking into account the close to $6 million payments the City is currently making on the Hilton problem. The budget deficit with the figures they started out with, not taking into account the $6 million, started at approximately $4.2 million reduced by 572 4O City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987, 1:30 P.M. $600,000 by the cross over of revenue sharing funds, reducing that deficit of $4.2 to $3.6. There are now new figures as of today with new estimates on the sales tax and now it will be approximately $700,000 more than for the current fiscal year ending June 30, 1987 raising the estimate on sales tax for the coming budget year of 1987/88 to a new estimate that is $872,000 more than the current figures they have dealt with in the budget. The balance in the General Fund is now down to approximately $2.7 million without the Hilton issue. Mayor Bay then gave extensive input relative to the budget as well as items outside of the current budget, one in particular being $29 million that had already been taken on in debt in Certificates of Participation (COP) by the past Council majority without addressing the revenue stream to make the payments rapidly becom/ng due. That problem was not addressed in the Chamber report because the issue was not addressed in the budget. The COP cover improvements in the Police Department, with the combination of auto centers including Computer Aided Dispatch (CAD), RMS Communications Center, office expansion, office remodeling, the Jail addition, Jail remodeling and the total police capital costs of approximately $22,424,000 and spent to date out of that money is $6,474,995 which, regardless of what the Council does~ is committed to find a revenue stream to make the payment on what is spent. Of that particular group of COP, $8.2 million is already spent or encumbered. He reiterated his concern as he had in the past that to have borrowed that kind of money, invested and spent it and not have a revenue stream to pay it back is "fiscal insanity". It was necessary to find a revenue stream and one of the choices is whether to immediately stop encumbering another dollar within that money or not. If they do, it will be necessary to stop all the planned expansion in the Police Department with the exception of the Communication Center since it is so close to being completed. The Mayor also broached the Public Safety Package issue received from the Police Department through the City Manager (see minutes of June 16, 1987) involving now approximately 42 additional personnel with cost estimates around $4 million. He questioned the Council on how they could possibly consider adding $4 million to a budget already at a $2.7 million deficit, plus $6 million and plus payments for COP as they start occurring. It is his opinion there is not a consensus across the Council to raise taxes in the City and that was perhaps the only solution intended to be made. Investigating new sources of revenue with new taxes in the City is an untenable solution as far as he is concerned. He has spoken against the budgets in the City every year for the past five years. This year he will make some strong recommendations involving a reduction in spending across the board in order to balance the budget. However, he did not know how the Council was going to take the necessary cuts to balance the budget with only tonight and one more meeting 573 Cit/ Hall, ~naheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. without making mistakes in the way they do it. In his opinion, the budget will not be balanced by June 30, 1987. He is recommending that the Council take action to somehow put a hold on spending and on hiring, not a full-blown hiring freeze. He does not believe they should be considering raises affecting the General Fund that the Council can control. Relative to increases in the Police Department, he does not want to say they are not goin~ to have any increases in the Police Department and he does not want to hold back putting policemen or people in the Police Department to work where they are needed. He does not know how to balance the budget any easy way. He asked for opinions from the Council. Councilwoman Ka~wood: The Mayor has been apprised, Just as the Council of the condition of the temporary buildings in the Police Department. Relative to the COP, it is not only $14 million or nothing. The Police portion is $11 million, the auto centers represent the additional $3 million which does have a revenue source. She suggested that they all put their heads together relative to the problem and go to management for the best positive and constructive ideas on how to balance the budget. She suggested first that they use the proper figures to work with. Councilman Hunter: The answer to the budget shortfall is not an increase in taxes. Councilman Pickler: He does not believe the Council truly understands the complexities of the budget. He feels they would have an easier chance of solvin~ the problem if they would listen to staff. City Manager Talley: He agrees with the Mayor that the budget is $3.6 million out this year and $1.1 million next year with approximately $900,000 in additional sales tax revenue putting the budget out approximately $2.7 million this year and virtually balanced next year. Also this year, there will be a minimum of $900,000 in additional Transient Occupancy Tax that i~ not required in the budget because it was increased from 8% to 10%. Also there are several funds which could be called reserved funds, the sewer construction fund of $337,000, the fleet maintenance equipment supply fund approximately $375,000, and in the golf course funds approximately $200,000 staff had intended for assisting in the channel reconfiguration work which he believes can be covered by additional revenues from the sale of land because of an updated appraisal that would be available to balance the budget. That is approximately an additional 5912,000 that would bring the budget down to less than 51 million which, if he had a week to look at existing management programs and backing off some hiring, that he could probably bring this year's budget down to within a $500,000 overage and create a surplus in excess of $500,000 next year that would make 574 City Hall, Anaheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. the 2-year budget balanced with the exception of the Hilton payments. It is his belief that in January of 1986 the existing Council indicated to make the payment on that. They elected again in July and in January of this year and again in July another payment will be necessary, but it is nearing a solution. It is his view they should not be penalized for perhaps one more year with the most difficult of years because of a number of circumstances to try to take those payments this year out of the operating programs. He believes those payments will be substantially less than in the past and believes they are approaching a time of either being resolved through litigation or compromise where an adequate program with a revenue stream will be identified to solve that problem. Mr. Talley continued that he does not believe because management cannot be rewarded substantially in the good year such as last year, when there was a ~5 million operating surplus used for other things, management did not get rewarded even as much as the bargaining units. He feels the Council could make some modest adjustments in management compensation but it would be unfair to give nothing. While he is willing to say that management should shoulder some of the cost savings, in his opinion, they should not be asked to subsidize the taxpayers. There are many fine managers in the City earning their salaries who deserve to be compensated as well as the bargaining units. Discussion then followed between Mayor Bay and City Manager Talley revolving around questions posed by'the Mayor and Councilman Ehrle regarding the increased amount of dollars as a result of the increase in TOT and the distribution of those funds. Councilman Ehrle: This is his first budget and he does not have all the answers but a number of questions. As a philosophy they have to have a program of austerity and to learn that they cannot continue to spend and spend, especially relative to COP without ever identifying a revenue stream in advance. There is a deficit, it is necessary to know what the real numbers are and what the solutions are. He is encouraged to hear what City Manager Talley is saying that possibly in a week's time the numbers can be put together. He announced that in the future he will never vote for a COP without identifying a revenue source to pay for them. He agrees it is necessary to have top quality police service and fire service but he will not vote for a tax increase. He also agrees with Mr. Hardin when he stated that his managers do not get an increase every year if business does not warrant it. City Manager Talley: He believes the management of the City, if the Council were to say they were going to knock everything out of the management budget for compensation this year but if management can generate those savings and deliver the same level 575 Ctt7 Hall~ Anaheim~ California - COUNCIL K[NUTE$ - June 23~ 1987~ 1:30 P.M. of service out of their budget, they could have those savings, they could save all management salaries as long as they had the ability to perform. What he did not want to do is not give them an upside because a good manager responds to an upside. After elaborating on the issue, Mr. Talley concluded if the Council told the managers they were going to cut their budget but not their participation, they would respond to that. It had to be a challenge rather than something punitive and he would make that commitment on behalf of the management team. Extensive discussion then followed again relative to the Police 2000 Program and the debt on COP as well as the 5-year Public Safety Package specifically with regard to the Police Department which the City Manager presented to the Council at the meeting of June 16, 1987. Council Members posed questions to the City Manager revolving around these issues which were answered by both City Manager Talley and Police Chief Jimmte Kennedy. During the discussion, Clty Manager Talley, speaking of the Public Safety Package involving the Police Department, he supports the magnitude of the request. If the Council wanted to establish a Blue Ribbon Liaison Committee to look at the issue and the request, perhaps that could be put on the ballot. His view is that 22 non-sworn personnel is what the City should have to keep the people on the streets operating at an effective level. They should do the Police 2000 Project and they should do as much of the Public Safety Package as possible to protect the City's citizens and to restore the way of life the City enjoyed a few years ago. From the Council to the City Manager on, the Police Department was led to believe this was going to happen one day. The City's Police Department deserves what is being recommended. Councilman Pickler. It was necessary to have a source of funds to pay for the proposal and mention was made that possibly the issue be placed on the ballot to give the people an opportunity to determine whether or not the~ are willing to do it. Councilwoman Kaywood. At the time she approved the COP, the need was very clear on Police 2000 relative to finding the funds to pay for it. She had no doubt that the City Manager was going to come up with a solution and she is still confident that he will do so. She felt the smartest thing to do now is to build the police building even if they did not have the bodies to put into it at this point. She would also be very much in favor of putting the issue on the ballot. City Clerk Sohl reported that if the issue is to be placed on the November 1987 Ballot, the County would have to be notified by July 31, 1987 of their intent to hold the Election. 576 City Hall, An-heim, California -COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. Mayor Bay. He urged the Council and City Manager to consider what happens when they get a no vote to an increase in taxes. There is no argument about the need, but he would be very concerned about even going to the ballot and he is not against doing that. If there are voters who approve a ballot measure to raise their taxes for a specific use to pay for what in his opinion is the number one priority in the City, he does not have any problem with that. He would be glad to lend his support to get them to do it. However, he will not do so until he is assured or until he has seen an exploration across the budget on what can be reduced out of it to a full austerity program. He felt that there are specific functions going on in the City which, in his opinion, were pure luxuries such as a Public Information Office or how much they could cut and improve on services that are nearly as important as the police functions. They should have been doing that in budget workshops for the last two or three months · City Manager Talley. He interrupted to report that the City Attorney advises if the Council is contemplating a ballot issue for a specific purpose such as raising taxes, it would take a 2/3 vote of the people. He believes a majority vote might be feasible but he is not certain about a 2/3 vote. Mayor Bay. He asked if there was a Council consensus that the Council could put a Police 2000 Program on the ballot for a vote in November of 1987 along with the water bond measure which is going to be on the ballot and that there is a very high probability of getting a 2/3 vote to approve taxes to do that. Councilman Pickler. He would like to see it on the ballot and let the people decide. Councilman Ehrle. He will always favor a vote of the people but was concerned that the citizens would feel that the Council is shirking their duty. He clarified he is not ready to raise fees. He would vote for putting the issue on the ballot but he is not sure the measure could get a 2/3 vote. He would support the issue since police services are a number one priority as well as fire protection. Councilwoman Kaywood. She would be happy to write the argument in favor or in combination with anyone to write it. She is also asking whether the full Council will support the issue or if someone was going to be fighting it because that would make a big difference. 577 City Hallt Amaheim, California - COUNCIL MINUTES - June 23, 1987~ 1:30 P.M. Councilman Hunter. Since citizens were going to look at all five Council Members and say because of their mistakes (Re: the Hilton and Angels litigation) you are going to raise my taxes to pay for this. The City needed police services and the Police Department needs to be redone and remodeled to go into the year 2000. Hayor Bay asked what they would have to do to go on for a simple majority. City Attorney Jack White. As a Charter City, it is his legal opinion the City of Anaheim does not legally need to have voter approval of a tax increase or a new tax that enters directly into the General Fund and is not ear marked for a special purpose. That it is only in the event that the tax is going to be used for a specific purpose and that the increase is tied to that purpose that a vote is required by law under the provisions of Proposition 13 as interpreted by the State Supreme Court which would take a 2/3 vote. If it were to be an advisory proposition on the ballot as a general tax increase, that would not take a 2/3 vote but a simple majority because it would only be advisory in nature. It is only when you go to the people and say that the tax increase will be used for a specific purpose that it falls within the legal interpretation of Proposition 13 that requires a 2/3 vote to impose or increase any tax for a special purpose. He reiterated as long as in the advisory vote the Council did not say if this tax is increased, it will go to this specific purpose, it would be a majority vote and only an advisory vote. Even with the vote, the Council could still vote to not increase the tax or if negative, the Council could still impose or increase the tax because it would only be advisory. Mayor Bay. He feels the smart thing to do is go to an advisory vote on tax increase that is specifically.designed how those will be increased and that the money will be for the General Fund, non-specific. In the meantime, there should be some austerity "belt tightening" in specific areas and those recommendations should be coming back along with new figures in the budget for the next meeting on June 30, 1987 for potential approval by the Council. The Council ought to have something back that says they are toing to balance the budget for 1987/88 in the number categories now so that the Council has something it can approve or not approve next Tuesday. He personally feels there should be cuts in training, seminars, travel and meetings, expense accounts, and he would like to see more internal control over expense accounts across the management organization. The Council should be aware of the monthly costs involved with travel and meetings by some kind of monthly reports so that the Council or Council liaison can look at the costs of travel by management and the Justification - when they are out of town, why, and the cost of being there. 578 Cit7 Hall, Anahetm~ California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. City Manager Talley. That can be done but it will require a great deal more reporting that is not done now and it would be a substantial work load. He explained the present procedure. Mayor Bay. He clarified he was not talking about mandated training and that which was required. He was saying relative to staff development, seminar expenses and traveling meeting expenses. In his opinion, these were growing at a rate that indicates the Council has not paid much attention to those costs and are not doing anything about them. City Manager Talley. He is taking these as signals. If Council as a group is saying this is not a good signal, he would like to know. If Council gives him direction, that they want reductions to the General Fund he would say the City Policy is going to be amended or there will be "belt tightening" for all and not Just because they are in a special fund. Councilwoman Kaywood. It was only looking at half of something. She would like to know whether the time and travel expended brought benefit to the City, whether it brought money in or whether it reduced money going out. She did not want to see a huge report costing thousands of dollars. If she were ever to ask for something, she would like to know the price tag that goes along with it. As an example, looking at the kinds of trips the Public Utilities General Manager goes on, he saves hundreds of millions of dollars for the City. She does not know of anyone going on "Junkets" in Anaheim. Councilman Pickler. He has no problem looking at something. He is interested in seeing the benefits that accrue to the City. Mayor Bay. It would be interesting if the Council knew how many of the Executive Managers are out of town, when they are out of town, where they are and why. He is talking about out-of-town trips and whether those trips have more to do with the operations of the City or with that manager's own career. City Manager Talley. He believes that can be done on a month or two basis and then the Council can decide whether or not they want to institutionalize that. Mayor Bay. Other new policies he would like the Council to think about, he was going to propose the following: That the Council set up a 579 City ~all~ a--heim~ Californ~_a - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. policy that limits management contracts used in this City, set up so that they expire without any penalty to the City at the election of any new Council Member (i.e., a new policy that no management contracts may be set up that do not expire automatically at the next election); the prerogative for the Council to pay some Executive Managers more than they pay the City Manager; that the Council discuss who the consultants on management pay scales report to, and that there should be a clear-cut change in the policy dealing with consultants that advise the City on management salaries, the HBO system, the PFP system, that those consultants should be reporting directly to the Council. It is his opinion that the present consultant does not answer to the City Council and, therefore, he (Bay) is going to be recommending that the Council change that or terminate that consultant's contract and hire a new consultant and that the Council also take a look at the whole HBO system as it is presently set up. There was one other issue, he spoke with the Fire Chief yesterday who had some recommendations that may now be in his mail. An issue that they talked about which he favors strongly is the current hazardous material inventory requirements which are set up for twice a year under the present program. He would recommend that they reduce the full hazardous material reporting from businesses down to once a year instead of two times a year. By doing that on the full disclosure forms on hazardous material, this would open up the Human Resources within the Fire Department to do spot random audits in the time they are not spending on the overall inventory twice a year. If it can be handled on a once-a-year basis. He has received complaints from businesses on the twice a year audit. City Manager Talley. The Fire Chief's report is due next Tuesday. Mayor Bay. Relative to Code Enforcement, there was a request to charge a $35 fee for a third call back for Code Enforcement. He believes that is a good idea where they have to spend more and more of staff time on Code Enforcement and go back for a third call back that a charge be set up for that. It is over and above the norm. Councilwoman Kaywood. She suggested that there also be a fee charged when the Police Department has to go back to a complaint on a noise party the second or third time that the offenders be charged for that; City Attorney White stated he would have to look into the feasibility of such a charge. 580 City Hall, A-~heim, California - COUNCIL MINUTES - June 23~ 1987~ 1:30 P.M. MOTION: Councilman Pickler moved to adjourn. Councilman Hunter seconded the motion. MOTION CARAIED. (10:58 p.m.) LEONORA N. SOHL, CITY CLERK 581