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1981/01/1381-36 City Hall~ Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour COUNCIL MEMBERS: None CITY MANAGER: William O. Talley CITY ATTORNEY: William P. Hopkins CITY CLERK: Linda D. Roberts CITY ENGINEER: William G. Devitt PLANNING DIRECTOR: Ronald L. Thompson Mayor Seymour called the meeting to order and welcomed those in attendance to the Council meeting. INVOCATION: Reverend Tom Favreau, Melodyland Hotline Center, gave the Invocation. FLAG SALUTE: Councilman Ben Bay led the assembly in the Pledge of Allegiance to the Flag. 173: PRESENTATION - RAPID TRANSIT PLAN: Mr. Ralph Clark, appointee from the Orange County Board of Supervisors to the Orange County Transportation Commis- sion Board of Directors, first stated that with him today was Mr. James Reichert, General Manager of the Orange County Transit District, who would handle the slides during the presentation. He first explained that Orange County had a transportation crisis which was serious because it involved more than transpor- tation--it involved the way people lived, their lifestyle, where they worked, and ultimately the economy. Orange County had outgrown its roadways, both freeways and City streets, and it was projected that traffic would double by 1995. Mr. Clark then narrated an approximate 20-minute slide presentation which was based upon the proposed Rapid Transit Plan, specifically Phase I. The high- lights of the presentation were as follows: The study recommended a general overall solution calling for additions and improvements to both the highway and transit systems. On the highway side, it called for increasing the capacity on all freeways including bus and carpool lanes. Also recommended were two new lanes for each of the busiest arterial highways and the construction of four new travel corridors. On the transit side, it called for increasing the OCTD bus fleet from approximately 500 buses at present to 800 to 1000 buses; building a fixed guideway Rapid Transit System in the central County area and integrating the bus and rapid transit system into a single coordinated system. The traffic congestion problem with the highest priority was the Santa Ana Transportation Corridor generally paralleling the Santa Ana Freeway. Relative to that aspect, the Commission conducted the Santa Aha Transporation Corridor Alternatives Anayl$is to determine the cost effective solutions to the problem, which study had just been completed. He then elaborated upon the recommendations which were a result of that analysis. In finality, the study gave top priority to developing a rapid transit system which he explained. The study also recommended that local jurisdictions con- tinue to pursue land use plans integrated with the transportation improvements. Jobs and increased population densities should be encouraged around the transit system stations and discouraged elsewhere. In concluding, Mr. Clark stated he felt it was clear that they faced a transpor- tation crisis in Orange County, threatening not only their mobility but also life- style and economy. However, it was a manageable crisis if they acted now. The 81-37 City Ha. il, Anaheim, California- COUNCIL MINUTES- January 13, 1981, 1:30 P.M. promised solution was reasonable and sensitive to all issues--Rapid Transit, more buses, widening and rebuilding the Santa Ana Freeway, building new corri- dors, improving the arterial surface stree~ system--the highest priority pro- viding the greatest relief and greatest benefits to the County being Rapid Transit. A rapid transit system could be operating by the end of the decade. They needed the City's comments, suggestions and support. Following the presentation, both Mr. Clark and Mr. Reichert answered questions posed by Council Members for purposes of clarification. Councilman Overholt, speaking to Mr. Clark, sta~ed that when he mentioned popu- lation centers to be served, he mentioned the Stadium development and the Convention Center commercial development, but he did not mention Downtown Anaheim. He noted that Dr. Brashear$ was in the Chamber audience and, relative to his proposed development in downtown Anaheim, he wanted to know the County's plans with regard to transportation. He thereupon asked Mr. Clark when that center started to develop, did the OCTD plan contemplate that there could be flexibility so that Downtown Anaheim, as a population center, would be adequately served. Mr. Clark answered absolutely. There was no doubt in his mind with the develop- ments that Dr. Brashears indicated, it would be appropriate to have a proper extension of the plan. They were talking about Phase I of the program, and he emphasized that it was important that they did not become involved in bickering as had occurred in Los Angeles. The first phase covered 23 miles called the Santa Ana Corridor Phase, with Phase II and Phase III to follow further down the line. Whether Dr. Brashears development would be Un Phase II or III, would be dependent on just how far along they would be and how far the research had gone as to where the next phase could be put to the highest and best use. Mayor Seymour asked the time frame for Stage I, II and III of the fixed rail system. Mr. James Reichert stated that the ribbon-cutting ceremony on the first stage, give or take a year, would be 1987. Stage 1 would be fully operational, but there was no date as yet relative to Stage II. Mayor Seymour asked how much flexibility there was in the plan in speaking about the Brashears proposal, assuming that that project came to fruition which was contemplated to create thousands of jobs, what would be the time deadline for moving the Brashears project from Stage II to Stage I. Mr. Reichert stated that they would like input from the Council as soon as possible. They were planning to bring back the initial public comments to the Transportation Commission on February 9, 1981. During the next phase, which would take approximately 18 months, they would be defining specific station locations and alignments so that anytime would be appropriate to have comments relative to the City getting into that planning phase and the earlier the better. Mayor Seymour asked then if they could demonstrate a need for that link in Stage 1 to the Redevelopment project area within the next 18 months, was that the plan was flexible enough to accept that. 81-38 City H.a..ll, Anaheim~ California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Mr. Reichert answered "yes". They would take the input and come up with a recom- mendation for the first stage plan. He emphasized they would like to receive that input as soon as possible. Mayor Seymour, wanting to be certain that he understood the situation clearly, stated if the alignment of Stage 1 and the route adoption would not be contem- plated for 18 months, they would have that period of time in which to justify the Redevelopment project being tied into Stage I, or if not, how much time would they legitimately have to do that. Mr. Reichert answered they would have that period of time totally. City Manager William Talley stated that he wanted to be certain the Council understood what it was hearing. Staff had been working for many months very cooperatively with the OCTD, but it would also be fair to say what they were hearing from Mr. Reichert today was nothing more than the data would be con- sidered and not that Downtown Anaheim was guaranteed anything. They had attempted on numerous occasions and with the worthwhile cooperation of not only Supervisor Clark, but also Dr. Brashears, to attempt to get the first starter line to Downtown Anaheim which they considered one of the keys to the County, since it was undergoing a billion dollar renovation at present. OCTD had always said they would accept any of the data and input submitted, but he would be remiss if he did not say at this time, no matter what they had been able to do, staff had been unable to convince the Technical Committee to have Downtown Anaheim included in Stage 1. They had pointed out numerous times to Supervisor Clark, the District, and the Commission that they believed that was the most serious omission and that dialogue had continued for the better part of a year. While Council should be encouraged that they had another 18 months in which to submit input, he did not want them to think that they would be any~,more successful. If there was some way they could work toward a commitment, he would feel much more comfortable. Otherwise, it was brought out today that Phase II meant the 1990's at the earliest. If they were moving to get Downtown Anaheim into Phase 1, it would place the City a decade ahead. Supervisor Clark explained that the transit system was being updated all the time which would answer the projected need they had right now for the Downtown area while Phase II was being put together. To add more than the 23 miles, which would be the backbone of the system, might not be economically feasible at this time. Anaheim was handsomely being served at the very beginning of that starter line. After additional discussion between the Mayor, Supervisor Clark and Mr. Reichert, the Mayor thanked them both for taking the time to make the presentation today. On behalf of the Council, they were very supportive of the great efforts being made to help solve the transportation problems in the County. However, relative to the downtown Redevelopment Project which they considered to be, if not the most viable office-retail-commercial type development project taking place in the County, it was one of the top two or three, hearing that it might be con- sidered as a spur, or part of Stage II taking them into the 1990's, they were extremely concerned about that. Therefore, they should begin to become part of the process as soon as possible. 81-39 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Mr. Clark commented that the Downtown was initially part of the original con- sideration, but the figures they had on the projection of the population and jobs did not warrant it in the initial stages. Mayor Seymour stated they should all take a look at the numbers because he was led to believe that there were other areas along the route tentatively suggested and recommended where the numbers were not as good as those that they had in the Redevelopment Project Area. Mr. Clark emphasized that the ultimate goal was to establish a backbone line through the central County where most of the jobs and demands were. He urged again that they not become involved in bickering so that they could get some- thing started. Otherwise, they would still be merely talking about the situa- tion in 1990 if they did not get started. 119: PROCLAMATIONS: The following proclamations were issued by Mayor Seymour and authorized by the City Council: International Year of Disabled Persons In Anaheim Helicopter Week in Anaheim - January 18 to 24, 1981 Mr. Hap Bayley and Susie Saldana accepted the International Year of Disabled Persons proclamation and comments were made by Mr. Howard Neufeld, Executive Director of the Association of Retarded Citizens. Mr. James Sanchez, Los Angeles County Fire Department and a member of the Helicopter Association of America Board of Directors, accepted the Helicopter Week proclamation. MINUTES: On motion by Councilwoman Kaywood, seconded by Councilman Bay, the minutes of the regular meeting of September 30, 1980 were approved, subject to typographical corrections. Councilman Seymour abstained. MOTION CARRIED. WAIVER OF READING - ORDINANCES AND RESOLUTIONS: Councilwoman Kaywood 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 ordinance or resolution in regular order. Councilman Bay seconded the motion. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $8,983,615.34, in accordance with the 1980-81 Budget, were approved. 150/174: GEORGE WASHINGTON COMMUNITY CENTER FUNDING: Councilman Overholt moved to appropriate $64,311 Community Development Block Grant Contingency Funds from Program 25-215 to George Washington Community Center Project 42-848, to complete funding for rehabilitation of Washington School into a Neighborhood Community Center, as recommended in memorandum dated January 6, 1981, from the Deputy City Manager and the Executive Director of Community Development. Councilman Roth seconded the motion. MOTION CARRIED. 160: PURCHASE OF EQUIPMENT - 4,500 FEET OF 750KCMIL ALUMINUM C~LE - BID NO. 3717: On motion by Councilwoman Kaywood, seconded by Councilman Seymour, the low bid of Westinghouse Electric Supply was accepted and purchase authorized in the amount of $14,095.11, as recommended by the Purchasing Agent in memorandum dated January 7, 1981. MOTION CARRIED. 81-40 City_H. all~ Anaheim,. C.a. lifornia- COUNCIL MINUTES -January 13, 1981, 1:30 P.M. 160: PURCHASE OF .EQUIPMENT - VIDEO EQUIPMENT FOR POLI. CE DEPARTMENT TRAINING SERVICES - BID NO. 3726: On motion by Councilman Roth, seconded by Councilman Bay, the low bid of Instant Replay Equipment Co. was accepted and purchase authorized in the amount of $20,601.10, as recommended by the Purchasing Agent in memorandum dated January 7, 1981. MOTION CARRIED. 137: AMENDMENT NO. 1 - EMPLOYEE LONG TERM DISABILITY INSURANCE: Councilman Overholt moved to authorize Amendment No. 1 to the Employee Long Term Disability Insurance Group Policy No. 384412 issued by Standard Insurance Company, increasing the monthly income to $4,167 for determining the monthly benefit, and authorizing the Human Resources Director to execute same, as recommended in memorandum dated January 7, 1981 by Human Resources Director Garry McRae. Councilwoman Kaywood seconded the motion. MOTION CARRIED. 153: WAGE RATE ADJUSTMENTS TO CONFORM WITH MINIMUM WAGE REQUIREMENTS - SELECTED PART-TIME CLASSIFICATIONS: Councilman Roth offered Resolution No. 81R-7 for adoption, as recommended in memorandum dated January 7, 1981 from the Human Resources Director. Refer to Resolution Book. RESOLUTION NO. 81R-7: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 80R-147 WHICH ESTABLISHED RATES OF COMPENSATION FOR UNREPRESENTED PART-TIME CLASSES, AND ADJUSTING THE WAGE RATES OF SEVEN CLASSES. (effective January 2, 1981) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour None None The Mayor declared Resolution No. 81R-7 duly passed and adopted. 153: CORECTION OF PREVIOUS SALARY RESOLUTION AND SALARY RATE ADJUSTMENT - CITY YOUTH WORKER I: Councilman Overholt offered Resolution No. 81R-8 and 81R-9 for adoption, as recommended in memorandum dated January 7, 1981 from the Human Resources Director. Refer to Resolution Book. RESOLUTION NO. 81R-8: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 80R-547, NUNC PRO TUNC, WHICH ESTABLISHED RATES OF COMPENSATION FOR UNREPRESENTED JOB CLASSIFICATIONS, BY ADDING THE CLASSIFICA- TIONS OF CETA YOUTH WORKER I AND CETA YOUTH WORKER II. (effective October 10, 1980) RESOLUTION NO. 81R-9: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 80R-547 WHICH ESTABLISHED RATES OF COMPENSATION FOR UNREPRESENTED CLASSES, AND ADJUSTING THE WAGE RATE OF CETA YOUTH WORKER I. (effective January 2, 1981) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour None None The Mayor declared Resolution Nos. 81R-8 and 81R-9 duly passed and adopted. 81-41 City Hall, Anaheim, California - COUNCIL MINUTES - January 13,. 1981, 1:30 P.M. 123: SOUTHERN PACIFIC TRANSPORTATION COMPANY LEASE AGREEMENT NO. 191949: Councilman Bay moved to authorize Southern Pacific Transportation Company Lease Agreement No. 191949, with modification, dated December 1, 1980, for City's electrical 69kV and communication facilities to cross the railroad lines at Mile Posts 511.86 and 511.75 in the vicinity of Ball Road and Cerritos Street, and authorizing the payment of a $200 Lease Fee, as recommended in memorandum dated December 29, 1980 from Public Utilities General Manager Gordon Hoyt. Councilwoman Kaywood seconded the motion. MOTION CARRIED. 123/174: STATE DEFERRED PAYMENT HOUSING REHABILITATION LOAN PROGRAM: Councilwoman Kaywood offered Resolution No. 81R-lO for adoption, as recommended in memorandum dated January 6, 1981 from the Executive Director of Community Development, au- thorizing an agreement and other related documents with the State Department of Housing, and Community Development in the amount of $70,000, to secure a Deferred Payment Loan from the State for rehabilitation of homes in certain areas. Refer to Resolution Book. RESOLUTION NO. 81R-10: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, AUTHORIZING THE EXECUTION OF A STANDARD AGREEMENT, AND OTHER DOCUMENTS TO SECURE A DEFERRED PAYMENT LOAN FROM THE STATE OF CALIFORNIA. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour None None The Mayor declared Resolution No. 81R-10 duly passed and adopted. 105: RATIFICATION AND APPOINTMENT TO THE PARKS & RECREATION COMMISSION: Council- woman Kaywood moved to ratify and appoint Kurt Haunfelner to the Park and Rec- reation Commission representing the AUHSD, replacing Jo Ann Barnett, for the term ending June 30, 1984, with a letter of thanks to be sent to Jo Ann Barnett for her many years of service. Councilman Overholt seconded the motion. MOTION CARRIED. 150: REQUEST FOR WAIVER OF PARK IN LIEU FEE - PROPERTY LOCATED AT 1548 WEST ORANGEWOOD AVENUE: Mayor Seymour referred to letter dated January 13, 1981 from Mrs. Lucinda Hammatt, requesting a waiver of the Park and Recreation In Lieu Fee for the subject property due to the special circumstances involved. Memorandum dated December 10, 1980 from the City Attorney's office recommended denial of the request. He asked the City Attorney, since the Council was able to reduce or eliminate Traffic Signal Assessment fees, why in a situa- tion that in his opinion was totally justified, could they not do so or how could they insure that Mrs. Hammatt was not unreasonably or inequitably burdened. City Attorney William Hopkins explained that the difference was that the Traffic Signal Assessment fee was established by Council Policy, whereas the Park and Recreation In-Lieu Fee was established by the Subdivision Map Act and by City ordin- ance. There was no provision for a waiver. If there was some way that Engin- eering could arrange it so that the home was not part of the Subdivision and it was her personal lot, that might be a possibility. Otherwise, there was no pro- vision for a waiver. 81-42 City H~ll~ Anaheim~ Calif. ornim ~ COUNCIL MINUTES - January 13, 1981~ 1:30 P.M. Mayor Seymour asked to hear from the Engineering Department to determine if there was a way that Mrs. Han~natt's home might not be made a part of the sub- division. Later in the meeting, City Engineer William Devitt explained for the Mayor that he knew of no way to eliminate the lot from the subdivision. Mayor Seymour emphasized that Mrs. Hammatt was being inequitably wronged. On three different occasions, the City had taken her property, caused her to tear down her home and now she wanted to rebuild and she was being charged with a large fee. He asked that Mr. Devitt find a way to assist her. Mr. Devitt stated if it was the desire of the Council to waive the fee and by motion directed or authorized him to not collect the fee, he would not collect it. Councilwoman Kaywood stated she would like to have it stated in a different way. She did not think this situation was typical of anything else and even indicating a waiver of the fee might be erroneous. A replacement home was involved, replacing one that was demolished by the City. She suggested if they could say that no fee applied, it might be a better way. Mayor Seymour was adamant in his direction that staff find a way to do what he requested. City Attorney Hopkins suggested that the matter be continued one week, so that they could study the problem. On motion by Councilman Seymour, seconded by Councilman Roth, the request of Mrs. Lucinda Hammatt for waiver of the Park and Recreation In Lieu Fee for pro- perty located at 1548 West Orangewood Avenue was continued one week. MOTION CARRIED. 179: REQUEST FOR REVOCATION OF HOME OCCUPATION PERMIT - MEYERS AND SONS ESCORT SERVICE AND MORTUARY: Request by Mr. and Mrs. Kenneth Minor for revocation of said Home Occupation Permit was submitted. Mrs. Alexia Minor, 2107 West Grayson, stated that the Council should have before them some of the information regarding their plea to revoke the Home Occupation Permit (HOP) of Meyers and Sons Mortuary Transportation Service under contract to the Coroner. She had nothing further to add at this time. Councilman Overholt stated as part of the documentation submitted was included a copy of letter dated July 23, 1980 from Ron Weiss. In that letter, it stated, "Enclosed please find a petition prepared by several clients of mine which I believe is self-explanatory." He wanted Mrs. Minor to know that the original petition was not included with that letter, but only a copy. Mrs. Minor explained that she had the original. Later in the meeting after additional discussion relative to the fact that the original petition had not yet~been filed with the City Clerk, Mrs. Minor submitted the original petition to the City Clerk. 81-43 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. In answer to question posed by Councilman Roth, Mrs. Minor stated that she had lived at her present address for six years and this was not the first time she had complained to the City about the business, but that complaints ranged over a period of two years. Prior to that time, there were problems but she did not know what to do about them. Mr. Kenneth Minor stated that all of the circumstances were evident since they moved to their present home. The business had been going on at 2111 West Grayson for quite a few years. They strongly objected to that business being in their neighborhood, as well as other neighbors, and they wanted some action as soon as possible. Their house was directly next door to the business. Mrs. Minor also explained that the people living next door to the business on the other side, specifically Joanna Watts, had petitioned Ben and Eleanor Bay personally prior to this time asking them to do something about eradicting the problem. She did not know how far that had gone or why it had not been taken care of at that time. She then explained for Councilman Overholt they had seen an attorney because of the numerous problems with Meyers Escort Service involving assault and attempted assaults, harrassment and slander. They had been advised to open a civil suit. Councilman Bay stated that they had a photocopy of a petition with only one page with 25 signatures. He wanted to know if that was the total. Mrs. Minor stated that they could have obtained more signatures but she felt the petition submitted would be sufficient. Mayor Seymour then asked if anyone was present representing Meyers and Sons Escort Service and Mortuary; no one was present and no one else wished to speak to the matter. MOTION: Councilman Seymour moved to set a public hearing for an Order to Show Cause why Home Occupation Permit No. 75-295, Meyers and Sons Mortuary Transpor- tation Services, should not be revoked. Councilman Overholt seconded the motion. Before a vote was taken, a brief discussion was held relative to the date and time of the hearing, the City Clerk indicating that the earliest date the hearing could be set was February 3, 1981. During the discussion, Mrs. Minor indicated that an evening meeting would be more convenient since there were a number of people, both husband and wife who worked during the day, who would like to attend. Councilman Seymour included as part of his motion that the date be set for February 3, 1981 at 7:00 p.m. Councilman Overholt was agreeable in his second. A vote was then taken on the foregoing motion. MOTION CARRIED. RECESS: By general consent, the Council recessed for 10 minutes. (3:05 P.M.) AFTER RECESS: Mayor Seymour called the meeting to order, all Council Members being present. (3:15 P.M.) 81-44 City Hall~ Anaheim.~ California - COUNCIL MINUTES - January 13, 1981~ 1:30 P.M. 107: PUBLIC HEARING - REQUEST FOR A RENT MORATORIUM ON MOBILEHOME PARKS IN THE CITY OF ANAHEIM: Request by Mr. John Dailey, Chairman, Golden State Mobile- home Owners League, Inc., was submitted. Mr. John Dailey, Associate Director, Golden State Mobilehome Owners League, Inc., (GSMOL, Inc., Region No. 5) Pacific Sunset Mobilehome Park, 211-6 South Beach Boulevard, first explained that the great number of people present in the Chambers audience (approximately 250) were from various mobilehome parks all over the City of Anaheim. He first referred to a booklet previously submitted to the Council (Mobilehome Park Information containing 14 items--on file in the City Clerk's office) containing the support data for his request. The mobilehome park owners either purchased or leased the ground on which to put a mobilehome park and put in utilities, possibly slab or patio and carpet; other- wise, that was all the expense they had. The mobilehome owners had twice to three times more invested in their mobilehomes than did the owner in his park. They felt they should be listened to and given a great deal of consideration. He reported that there were 33 mobilehome parks in Anaheim and those parks were facing rent increases in relation to the Consumer Price Index (CPI) which he felt was a gross miscalculation (see Item 5 and 5A of the subject mobilehome park information booklet). If the CPI were followed in determining rent increases, rents would be doubled within four and one-half years. He then referred to the newspaper article, Mobile Mania, written by Mr. Walt Cook (Item 6 of the subject booklet) as well as the article by Mr. Bernie Felton, the Members Speak Out (Item 7). He emphasized that many people in mobilehome parks were elderly people and proud people. They did not want to be on welfare or become a bur- den to the City through extra cost or rent subsidies. They wanted to be independent and the only way was to establish a Rent Review Board (RRB) that would give the owners a chance to increase their rents, but not by the high percentages as at present. They wanted an RRB established by Anaheim con- sisting of two members of a mobilehome park, two mobilehome park owners and three members at large. In order to augment their request and to give the Council more time to study the matter, in the booklet he incorporated copies of ordinances in existence at the present time, Ordinance No. 79-485U, City of Carson Rent Review Board, and Ordinance No. 412, Mobilehome Park Review Committee, San Juan Capistrano, Item 12 and 13 of the booklet. Ordinance No. 545, Item 11, the City of Stanton, rent free ordinance had been continued to a later date. In concluding, Mr. Dailey read the two requests to the Anaheim City Council (Item 14 in the subject booklet): I. The Council immediately, or prior to January 1, 1981 or retroactive to April 1, 1980, declare a moratorium on mobile home rent increases in the City of Anaheim. II. We request the Council establish a ~ermanent "Rent Review Board", composed of two mobile home owners, two mobile park owners, and three impartial persons. The board's responsibility is to review and determine the necessity and amount of all, if any, future mobile home rent increases requested by mobilehome park owners. Ail owners to submit justification to this board for rent increases. 81-45 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Upon Council questioning, Mr. Dailey stated that the bame rent in his park was $185 a month and the $300 to $350 a month rents he spoke about were being charged at Orange Tree Mobilehome Park and Anaheim Shores, a new park. He indicated the average rent for a mobilehome park wam approximately $175 per month. Audience reaction to that figure indicated disagreement and that it was, in fact, higher. Mayor Seymour stated if he owned an investment, in this case a mobilehome park, to the degree that his profits became limited, restricted, or possibly controlled, the next thing he would think about was that he could make more money doing some- thing else. This led to the question of mobilehome park conversions to other uses, dispossessing people of their homes which was a very difficult situation for old people on fixed incomes. One of him concerns relative to a rent mora- torium on mobilehome parks was that such action might hasten the day when the owners, interested in profit, might seek an alternative use of the park in order to receive a higher profit, because now they would have controlled or taken out of the free marketplace their ability to compete on rents. He asked Mr. Dailey if that should occur in his mobilehome park, what would he ask the City Council t¢ do about it. Mr. Dailey answered, he would ask the City Council to zone all mobilehome parks as mobilehome parks only, not just his park, but all parks. The Mayor then asked Mr. Dailey to share with them some of the cities or areas where the concept being proposed was workimg now. Mr. Dailey answered, it was working well in Carson. The owners of the parks were very satisfied with the way the Rent Review Board (RRB) had been working in that City. In Orange County, it wam working well in the City of San Juan Capistrano where they had an RRB and the City of Stanton would have the same this month or next. The City of Irvine had frozen rents in their two parks for over one year, the Meadows and the Groves. Councilwoman Kaywood asked Mr. Dailey if he had received any kind of rebate from Proposition 13. Mr. Dailey answered not one cent~ but he received a rent raise instead 60 days later. He then confirmed for Mayor Seymour that the type of tenancy he had been under since living in the park was on a month-to-month basis. Mayor Seymour stated he often wondered why an individual who would spend $20,000 and sometimes as much as $50,000 for a mobilehome would agree to move it into a park where all they received was a 30-day tenancy. Mr. Dailey stated that he did it for what he felt was security, a much nicer atmosphere, and compatibility with a group of people. He pointed out that now a one-year tenancy could be given to tenants if they so desired. The Mayor then asked if he bought a mobilehome today, how long of a tenancy would he have to have in order to make some economic sense out of the risks involved in a 30-day tenancy. 81-46 City H.a. ll., Anaheim~ California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Mr. Dailey answered, ten or fifteen years at least. He also pointed out that some places offered leases for a longer period than one year, although he did not know if that was true in Anaheim. He understood that outside of Anaheim they allowed up to five years. In answer to questions posed by Councilwoman Kaywood and the Mayor, Mr. Dailey relayed the following: the frequency of rent raises in his park were usually on a yearly basis, but sometimes they received two in one year. In the 13 years he had lived in the park, they received 16 rent raises. There were several other parks besides Orange Tree that had given what he would consider unreason- able rent increases where rents had been raised 25 or 35% in the Anaheim area in the last year. He would say out of 17 parks, 12 had given unreasonable increases. He did not have statistics to suppor~ the statement with him, but he could obtain them as requested by the Mayor. Councilman Roth then asked Mr. Dailey if he or his organization had a set figure which they felt the mobilehome park owner should receive as a profit. Mr. Dailey answered that they did not have an oppor:unity to know their scale or investigate their books. According to government surveys, it cost an average of $50 per space per month to maintain a mobilehome, everything included.. Councilman Roth used as an example, however, that if a park with an existing trust deed at 6 or 7% was sold at 14 or 15%, that would cause a wide differ- ential. Mr. Dailey agreed but he did not believe there had been many parks in the City of Anaheim that had changed ownership in the past four or five years. Conversation then followed between Councilman Roth and Mr. Dailey relative to the matter, Councilman Roth pointing out that if a moratorium or roll back were implemented, the owner's tax, interest rate, etc., were also going to have to be rolled back in those cases where a park had been sold. At the conclusion of discussion, Mr. Dailey stated that they were not trying to stipulate that there be no increases or that the owner not make a profit, as long as it could be justified to a board. They were asking that such a board be established for that purpose. They wanted increases to represent an equitable and fair share and not overburden retirees and people on fixed incomes who were eventually going to be the government's responsibility. Someone would have to support them after their money was exhausted. If it was all spent on rent, they were going to have to go on the welfare rolls, and they did not want to be placed in that position. Mayor Seymour asked if there were any mobilehome parks in Anaheim in which the existing mobilehomes were selling for a higher price than what was paid for those coaches initially; Mr. Dailey answered that he believed that was true in every park, the same as with regular housing. Mr. Dailey also expressed the feeling that theirs was a partnership role with the owner. If they could draw up a partnership with the owner as co-owners, that would be the best way to go. However, the park owners viewed them as tenants and they maintained that they were not co-owners. The residents 81-47 City Hall~ Ana. hei. m., California- COUNCIL MINUTES -January 13, 1981, 1:30 P.M. developed a bare piece of ground into a nice piece of property. They did all the maintenance of streets and assisted with improvements. The City did not have to do any of those things, but it was all borne by the developers, park owners and mobilehome owners and paid for in their rent and taxes, which taxes figured out at $2.36 for an average space in Anaheim for a mobilehome coach per month. Mayor Seymour then asked if they did not use the CPI relative to increases, which he felt made sense. He did not know what could be used to replace that. Mr. Dailey answered, the cost of living adjustment As given by the government to people on Social Security such as 9% or whatever it might be; the Mayor felt that was just as irrelevamt as the CPI. Mr. Dailey felt it would be more equitable and fair than using the CPI. The cities who had met up a RRB were using the cost of living index used in Social Security increases. It was a guideline percentage wise. In concluding, Mayor Seymour asked Mr. Dailey why he felt more mobilehome parks had not been built; Mr. Dailey answered, because of the high cost of ground. Mayor Seymour noted that Mr. Dailey made the statement that people on fixed incomes, if they could not make it, government was going to support them. He thus assumed from that that he (Dailey) believed in the private sector system. Therefore if they were going to depend upon the private sector to provide that type of housing and today the price of land was one of the reasons why mobile- home parks were not being built, what would he think the impact of rent control or a rent moratorium would be on the ability to develop new parks. Mr. Dailey stated that he did not think there would be any more parks developed in Orange County or the City because of the lack of available space, especially in Anaheim. Mayor Seymour stated if he interpreted Mr. Dailey's thinking correctly, (1) he felt there should be some control of the growth of rents in a mobilehome park and (2) that there should be a great deal of control, in fact, law that would say, this has to be a mobilehome park forever. Mr. Dailey confirmed the Mayor's understanding was correct. Ms. Pat Kish, Orange Tree Mobilehome Owners Association, 1400 Douglass Road, Space 90, referred to the fact that they were present in April (see minutes April 22, 1980) at which time the Orange Tree Mobilehome Owners Association advised the Council of a $40 rent increase. At that time, the park owner was in attendance and she hoped that the Council would have addressed a few questions to him, some of the same questions that were addressed to Mr. Dailey, but they did not do so. On the other hand, when she approached the podium, she was questioned for 40 minutes. ~mey returned to the Council again on October 7, 1980 (see minutes that date) requesting permit zoning and a first right of refusal in the event a mobilehome park would be sold. She referred to the example the Mayor had given where a situation may arise due to rent control, that in the event a park owner saw it unfit to maintain the land as a mobile- home park and chose to change the use of the land, that was why on October 7 they asked for an ordinance which would give them the first right of refusal in the event that situation ever took place. They also asked for permanent zoning which would be a deterrent or stop any possibility of change of use. 81-48 City H.all~ A.n. aheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Ms. Kish's presentation was highlighted by the following points: Mobilehome owners had always admitted that a mobilhehome park owner was in business to realize a profit. Mobilehome owners had an investment as well. However, the park owners investment was protected by way of a land lease agreement. In the event the land owner was offered an attractive price, in an effort to protect his investment, the park owner would be given the first option to buy the land. They came to the City Council, who had the power and authority to pass such an ordinance, to request that they also give the mobilehome owner that same pro- tection. She emphasized that they had reached the point of outright gouging and raping of the people which was the only description to give to what was taking place. The Mayor had asked what was going on in other cities. She would hope that the Mayor would like to take a leadership role. She felt with the information the Council received today and the information provided by Orange Tree Home Owners Association in April, if any City Council in the County was well educated into the unique mobilehome lifestyle and the gouging of mobilehome residents, it was the Anaheim City Council. Their request was not a shallow one, but one shared by many people present today. They were asking the Council for help. In answer to a line of questioning posed by Councilwoman Kaywood, Ms. Kish relayed the following: She felt the increases in her park had been unreason- able as well as those given at other parks in Anaheim and in Orange County. There had been no sharing of the relief given by Proposition 13. Those parks in Anaheim which she felt rate increases had not been unreasonable were gener- ally "Mom and Pop" operations, and they were not necessarily members of the statewide park owners association. Once a park reached full capaaity, that was the time when rent increases started. With a change in management, there was a change in rules and regulations with the routine answer being, if you do not like it, move! Ms. Kish then clarified for Councilman Roth that relative to Proposition 13, there were a "sprinkling" of park owners who did share a reduction in their property taxes with their residents, also, the reason why the people still wanted to locate in a park such as Anaheim Shores in spite of the publicity regarding rent increases in mobilehome parks, was due to the unsuspecting buyer. There were still people who felt it was a much more economical life- style than what they were presently experiencing. Once they assumed residency, they knew better. Discussion and questioning followed between the Mayor and Ms. Kish revolving around why more mobilehome parks were not being developed since, as pointed out by Ms. Kish, if there was an abundance of park spaces, they would have a free market, but today there was no competition. However, park development was spaced at such intervals so that there was never an abundance of spaces. She confirmed her suspicions for the Mayor that there might be a conspiracy amongst mobilehome developers not to build parks. If not conspiracy, it might be good business practice on the part of park owners and developers not to allow them- selves to get into the position they were in 10, 12 or 14 years ago, when there was an overabundance of spaces. 81-49 City Hall~ Anaheim~ .C. alifornia- COUNCIL MINUTES- January 13, 1981, 1:30 P.M. The Mayor did not agree. He had information from staff that the reason mobile- home parks were not being developed today was because the price they had to pay for the land, combined with the cost of the improvements necessary to make it a park, would require rent in $650-$700 a month range because the density of a mobilehome park was about 12 units to the acre, where a condominium or apartment could be developed at 15 to 25 units to the acre. It was an economic reason. Planning Director Ron Thompson explained that at present they were analyzing the City's Shorb-Wells property having a land value of $300,000 to $350,000 an acre, plus other attendant costs, and thus rents were reaching the range the Mayor was talking about, i.e., $600 to $700 a month rent for space to anticipate a fair return on investments. The Mayor then discussed with Ms. Kish the number and amount of rent increases experienced at their park since the time she lived there. It was determined that in 10 years (1970 to present) rents increased from $85 to $90 to $153 to $280 per month. The Mayor was trying to ascertain how much percentage increase that represented in relation to what had transpired relative to home ownership. In 1970, the average home price was $20,000 and today it was over $100,000, an increase of five times in ten years, as compared to three times in mobilehome parks. However, that did not make rent gouging right. The cost of all housing had dramatically increased and they had a responsibility to do something about that, the question being, was rent control one of the answers. He asked what they should use as a course of action to try to resolve the problem. Ms. Kish stated they had another problem.- The Mayor expressed concern if the park owner were saddled with any kind of rent control stabilization, he would have difficulty in selling his park to anyone else. At present, the mobilehome owners, due to excessive rent increases were hawing difficulty selling their homes. There was no choice. They could not afford the rent or sell their home to get out from under. In not paying their rent by State law was grounds for eviction including that the property itself be vacated and the home removed. There was no place to move it to, because of the non-existent vacancy factor. She suggested that they could dissect the San Juan Capistrano ordinance. At present that City was considering a revision of that ordinance basing rent increases on operating expenses, rather than the CPI figure. That would be interesting to discuss with the Council and she was certain that the people involved in the San Juan Capistrano ordinance would be happy to discuss it with them. It did not necessarily have to be controlled. The Mayor stated, speaking to the general problem of the cost of housing and what was equitable and what was unfair, reiterated that the rent increases they discussed at her park represented an increase of three times, whereas the cost of home ownership had increased five times--not that it was fair, but it did draw a comparison. Ms. Kish felt there was no comparison whatsoever. The park owners had practically said that they would get what the traffic would bear and the mobilehome owners were the traffic. The Mayor asked Ms. Kish if she believed in rent control for apartments as well; Ms. Kish answered that she did not want to get into that and would not answer that question. They were present today relative to mobilehome park rents. 81-50 City Ha. ll, Anaheim, Ca..1.ifornia - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. The Mayor felt they must consider all ramifications and aspects of the decision, not what it would do just for today; Ms. Kish emphasized that they must center in on the problems now and their problem again was the fact they were being gouged and raped. The Mayor then stated, with all due respect, the easiest thing would be to answer the will of the people as it had been heard today. He tried to carry on his responsibilities not on an emotional basis of what would make people happy today without considering the long-term aspects of tomorrow. That might not be met with public approval, but that was philosophically the way he felt. Mayor Seymour then asked M~. Kish what she considered a fair return on a mobile- home park; Ms. Kish stated she would like to get into a more detailed discussion with him on a formula using operating expenses. She then elaborated on the figures and formulas used with regard to San Juan Capis~rano ordinance. There being no future questions asked of Ms. Kish, the Mayor then asked to hear from those who wished to speak. The following people then spoke either in favor or opposition to the two requests presented and the highlights of their presentation are included below: Mr. Jack Barry, Associate Director, Golden State Mobilehome League. He was present at the City of Carson RRB meeting one week ago and as the park owners came forward requesting rent increases, they were dealing with operating expenses. They did consider the CPI as a porti~n:.of their presentation, but they did not base it 100% on the CPI. There was no discussion of percentage of profit over operating costs. Relative to housing escalating five times and rent increases in the Orange Tree Mobilehome Park three times, on resale of his coach, he maintained that he would not be able to realize five times the value he paid for it. In concluding, he stated he was in favor of a Rent Review Board. The term rent control had been used all over the State of California in meetings, such as the one taking place, as though it was something nasty. From the outset, he felt they had rent control--the mobilehome park owners had controlled rent. He was not certain if rent increases were arbitrary. If the mobilehome owners turned that control over to him, there was no way he could tell that what he would get extra next year would not be an arbitrary figure. They were asking for a Rent Review Board which was not arbitrary but one of arbitration. He wanted a Rent Review Board because he did not know that his rent rate was jus- tified as presented to him. If his or any other park owner raised his rents to the residents and that rent raise was $1 more than justified, considering the fact that there were 800,000 mobilehomes in the State, that would yield a $9,600,000 rip-off in one year. If $5, that would escalate to $48 million. Mayor Seymour agreed there was a vast difference between rent control and a Rent Review Board. Los Angeles had ren~ control for a little over two years now. In the year 1980, talking about apartment houses, he believed because of rent control, the City of Los Angeles did not build or add to their apart- ment house inventory, one apartment house that was no~ subsidized by the govern- ment. Housing was a problem. They had to be very careful that although they might solve many people's problems today by invoking a Rent Review Board, they may be creating even bigger problems for coming generations. That was why he was taking the decision very seriously. 81-51 Ci..ty Ha. ll~ Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Councilman Bay stated to have a Rent Review Board, there must also be rent con- trol because there had to be "teeth" in such an ordinance. If the board felt that an increase was not justified, it would not be allowed. If rent controls were set up on mobilehome parks, mobilehome park owners faced with such controls, and considering the return on their investment, might start to consider that they had, for example, 20 acres of land that originally cost them $20,000 an acre. Now however, if the land were developed some other way, it might be valued at $250,000 an acre. If he (Mr. Barry) were an owner of that type of investment suddenly faced with a rent control ordinance with "teeth" and if he were sub- sequently offered that price for the land so that condominiums, commercial, industrial, etc. could be developed on it, would he agree they would not then have a single mobilehome park left in the City. Mr. Barry answered that he could nog foresee that, but if ~ha~ hypothetical situation did evolve, he would discuss it very thoroughly with the proposed buyer of his mobilehome park and go through channels to make sure that he did not rezone and put the residents out in the street. Councilman Bay stated he wanted to pose the foregoing which was a scenario he saw from his view of the economics relative to land in the City. It was already happening in some parks in the City at present because of return on investment. What he heard today, they were asking local government to stop the natural flow of free enterprise economics by mandating controls that he believed had the potential of wiping out the place in which they lived now and even faster than the way it was going. Councilman Overholt noted that Mr. Barry stated he was not asking for rent control, but arbitration in establishing a Rent Review Board. His (Overholt's) understanding of arbitration was a way of making a decision on disputes to which both parties agreed. An RRB was a way of deciding disputes dictated by government. They would establish the Board and then tell them what to do. Arbitration was some- thing agreed to by adverse interests. He asked why his association could not try to work with the landlord associations and devise an arbitration program. Mr. Barry deferred to Mr. Dailey who stated that the park owners had an associa- tion, the Western Mobilehome Association (WMA), and they had met with them on numerous occasions but each property owner went his own way. He knew of many park owners who did not belong to WMA and thus they could not sit down with statewide organizations like WMA and themselves and accomplish anything equitable--for instance, agreeing to throwing their books open and justifying their costs. Perhaps ~he WMA members would do so, but there were 40,000 other park owners that would not do it. They could not get a full and complete group to go along with such a plan. Mr. Ed Thompson, Director for Community Affairs, Western Mobilehome Association, on behalf of the local park owners in Anaheim (also see eight-page letter dated January 1981 from W-MA President Alan Tarlov submitted to provide input to assist in the Council's deliberation today). It was interesting to note that thus far there had been over eight cities and/or counties in the State that had rejected rent control or any of the rent stabilization ideas presented to them out of 110 or 115 jurisdictions that he was aware of. What they were really talking about were the effects of inflation and that was the issue. They were talking about the increases in the economy in general and everything it took to survive in that economy. Rent control did not seem to be the answer and, in fact, it caused many 81-52 City Ha. ll~ Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. of the problems. There had been numerous studies conducted by universities, federal organizations and consultants throughout the country on the impacts of rent control and they all came back with the same response, that rent control would adversely affect development in communities. That was an absolute fact and a significant consideration in the development of additional housing. One of the recommendations of an advisory task force to President-Elect Reagan chaired by the Mayor of San Diego, Pete Wilson, was that they eliminate federal housing assistance to any community ~hat established a rent control, not to create additional hardships, but because it was their firm belief rent control generally had a strong adverse affect on housing availability within a commun- ity. HUD also issued a report and also indicated, where rent control existed in communities, there ought to be some consideration as to whether or not the federal government should continue allocating housing funds to that community. It was necessary to take a hard look before moving in that area. Mr. Thompson then concluded by commenting on some of the statements that had been made earlier in the meeting. He also pointed out there were a number of park owners present to express their feelings in addition to Mr. Brent Swanson who might be able to shed some light on the situation in the City of Stanton. Mr. Thompson then clarified for Councilwoman Kaywood that if there was a man- dated provision in the ordinance, such as that being discussed, they viewed that as a form of rent control. Relative to the number of park owners in the City of Anaheim who belong to the Association, he believed there were 12. Councilwoman Kaywood asked if it had come to their attention that there might be a "gouger" among ~hem, would the Association do anything to mitigate such a situation. Mr. Thompson indicated they were very concerned about such situations and in those cases where there appeared to be excessive rents being charged in one park, they would attempt to talk to that park owner to get some background and understanding as to what the rents were based on and encourage that park owner to communicate with the City to try to share with them some of the basic infor- mation that went into that adjustment. Further discussion then took place with Mr. Thompson as a result of questions posed by Councilwoman Kaywood, Mayor Seymour and Councilman Overholt covering fair rate of return, his knowledge as to unreasonable rent increases in Anaheim mobilehome parks, and procedure to receive and investigate complaints. Relative to the latter, they would suggest tha~ the residents contact the local tenant organization for assistance and at the same time they would personally contact that park owner and advise him that a concern had been expressed and suggest that if there was a problem of communication in his park, he may want to attempt through his representatives to improve lines of communication. His organization did not get involved in the investigation of a claim by a tenant. As well, they had not given any formal consideration to promoting an arbitration program to resolve disputes. Mr. Brent Swanson, 1800 East 17th Street, Santa Ana, attorney representing mobile- home park owners in Anaheim. Over the last four years, he had been involved in a specialty in the practice of law representing mobilehome park owners. In that process, he had been involved in over 40 mobilehome park issues in various counties 81-53 City Hall~ An.aheim~ California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. and cities around the State representing clients in front of the rent control commissions that had been established under the few ordinances that had been passed, including the one in Carson. He then clarified some of the points that had been made: Rent stabilization was the same as rent control. It had been the resident's way of trying to make rent control in the State more palatable. The ordinances that had been passed in California had all been ones involving mandatory controls on rent. In Stanton, his law firm obtained a temporary restraining order against one going into effect and the preliminary injunction hearing was continued until sometime in June. Irvine had not passed a rent control ordinance or any other legislation that he was aware of. There were ten cities in the County that had revoked rent control pleas and some more than once. Only one city in the County had adopted rent control, San Juan Capistrano. There was a Blue Ribbon Committee formed two or three years ago by the Board of Supervisors in the County to examine mobilehome park problems composed primarily of mobilehome park residents and they, too, indicated in their report that rent control was not the way to solve the problems and issues being raised by the residents that came before them. (Mayor Seymour interjected and asked that he be provided with a copy of that report). With regard to the City of Carson, he had a great deal of experience in that City both in originally proposing the passage of the ordinance and, failing in that effort, representing clients in front of the Commission established under that ordinance. The best description of that Commission would be found in the report from the Social Psychologist from Cal Sta~e Dominguez Hills, a PHD in Social Psychology hired by the City of Carson, requested and paid for by them. The report which he had a copy of and which he could provide to the Council as well, outlined a parade of "horribles" and that was after the Commission had been functioning for some period of time. It talked about all the adverse things the Commission was doing--how they played politics, were unfair, had no faith in the City staff who was there to assist them, etc. The actual exper- ience in Carson had been deplorable. That Commission was inept, oppressive, they were oriented toward the resident in their attitude and these were things typical of the other commissions under the rent stabilization passed around the State. They would not permit reasonable rent increases. If the Council seriously wanted to consider rent control, he suggested that they listen to the tapes of the Commission in Carson. He went on to explain some of the things that had trans- pired which pointed out the actual reality of rent control in the State. It meant no increase at all or increases that were unfair, oppressive and unreal- istic and that was one of the major reasons why people were not building mobile- home parks in the State. Relative to the fair rate of return concept, it was not possible to say it was an "X" percentage. It was dependent on where the park was located, what the park was like, the current economic conditions. Councilwoman Kaywood interjected and noted that Mr. Swanson mentioned that it was unfair, oppressive and unrealistic to ask that there be a review board. She believed the residents felt the same way in their plight. Many of them were terrified and they simply did not have the money anymore because their rent kept increasing. They were all on fixed incomes and did not know what they were going to do. In speaking to Mr. Swanson, she felt if they looked upon the situation at the human level and tried to deal with it that way, they could come up with some solution. 81-54 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Mr. Swanson then explained for Councilman Overholt that he did not know of any such matters that had been submitted to formal arbitration. However, it was not uncommon for park owners to sit down with a resident group and talk about the situation and negotiate. There were many small older parks that could not afford an arbitrator, nor the resident. The typical arbitration ordinance proposed around the state was mandatory arbitration which was binding arbitra- tion. The organization he represented was a very loose trade association un- like the Bar Association or other trade associations where there was a more cohesive organizational structure. Councilman Overholt stated it seemed to him that happy mobilehome owners in parks should be an utlimate goal of the organization and it seemed to him they had not been doing much to accomplish that, but fighting them at every turn; Mr. Swanson disagreed. In concluding, Councilman Overholt suggested that his organization think about working on a program to set up an arbitration program that would try to resolve disputes. Mr. Swanson continued and stated that the typical mobilehome in Orange County had appreciated at a fraction of one-tenth of one percent less than the average stick built house. He confirmed for the Mayor that he was saying that the average price of a mobilehome escalated 14.9% in 1980, as compared to the average price of a stick built home having gone up 15%. He would be happy to send that report to the Mayor as well; the Mayor asked that he do so. Mr. Swanson then explained for Councilwoman Kaywood the function of review boards and relayed some of the situations that had occurred and their outcome. If there was to be a review board, people had to be appointed to it who were objective and also people who were knowledgeable in real estate, finances, expenses, i.e., a knowledgeable business person. With those qualifications there might be a possibility of getting a fair decision, but he doubted it. He did not think they worked well. Later in the meeting, Mr. Swanson explained for Councilman Overholt that the impartial members of a review board were appointed by the City Council. The mobilehome park industry could not subsidize people who were in need. That was the role of the family and government. There was also HUD Section 8 money extended in the last couple of years to the mobilehome park field. If it was their thinking that the average mobilehome park resident was poor and elderly and living on Social Security, they were wrong because that was not the profile of the average mobilehome park resident. They typically did not tend to be poor, but in the mid to upper income level. Most were not retired. There was a substantial portion of the population of the typical park in metropolitan areas who were still continuing to work and those that had worked were profes- sionals or other successful business people. Mr. Swanson also stated that they could not formulize rent increases. Even if there were no empty spaces in the County, they were in competition. The typical park in the County had a ten percent turnover factor each year and that figure had remained fairly constant until the recent situation relative to the financing problem. They would not get a 10% turnover on the average in the 81-55 City Hall, Anaheim, California- COUNCIL MINUTES - January 13, 1981, 1:30 P.M. County or Anaheim if rents were too high because the people who were buying did not have to buy. They could buy or rent or go some place else. They were in competition with the rest of the rental housing industry. Councilwoman Kaywood then explained the task force that was set up in 1974 to devise a General Plan for the hill and canyon area and how it worked quite well. She felt the same could happen in this situation if there was a better feeling on both sides, realizing that they were not dealing with the enemy but human beings. It was unrealistic not to expect increases. The people she knew and who had complained to her were in a terrible bind contrary to Mr. Swanson's definition of a mobilehome owner. Councilman Roth stated he was well aware that people living in apartments and houses had the same identical problems relative to tremendous increases in rents. Inflation was "killing" all of them. He then relayed the problems present in his own family with his father and son. He was concerned about all people in the housing industry. If the people in the audience today had been present Tuesday after Tuesday, they would realize that a majority of the Council had been trying to cope with the housing situation in general. They were going to have to look at different avenues to arrive at some solution to the problem. He then referred to a newspaper article taken from the Sunday edition (January 11 1981) of the Los Angeles Times pertaining to a 6.2% vacancy factor in San Diego which he read--"We can thank the lack of rent control for our sound and stable market. The high vacancy rates all over the county are proof that when~teft alone, the free market system can work effectively and efficiently to keep rents low and the quality of available housing high." Diminishing the supply of housing was not'the answer. The issue was a broad one encompassing the whole housing industry. They received ho~line complaints all the time from people in apartments saying that they could not pay their rents. They (Council Members) had called the landlords and expressed to them in order to make the free market work, they could not permit gouging. Most of the time the increases had been caused by a sale of the property with new interest rates and tax rates, resulting in a negative cash flow. The government had been printing "phony" money and causing the tremendous inflation spiral. Everyone was suffering and he was suffering along with the people present today. He was not convinced that government intervention and controls were the answer. Mr. Singleton, resident of Friendly Village, felt that the hearing had turned out to be a filibuster more than anything else, having drifted to subjects other than the issue of the mobilehome and mobilehome parks. Not everybody living in a mobilehome was destitute. However, when his rent was raised to a point where he could not afford to pay, thus jeopardizing him to where he could not sell his coach, then the City Council or somebody had to do something about it because he could not make laws on his own. People in mobilehome parks were generally below the high class average previously indicated. Mr. Paul Bostwick, 8105 East Woodsboro, representing Midway Trailer City, stated they were all subject to some very difficult outside influences. As the Mayor and Councilwoman Kaywood stated, it was not practical to judge everything by an index. It was not always relative and he did not think it always fit the case. They had to do something about the situation, and the November elections were evidence of that, and he felt the people would keep trying to bring things 81-56 City Hall~ Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. back to a reasonable basis. It would not be easy and they were all going to suffer. He would say to most of the mobilehome park tenants, they had a society and an environment that was great. He had been in the business since the 1940's. His parents had built the park and he was now an officer in the corporation. Many services were provided which he described. Ail facilities were provided by and maintained by the park owner. In the last month, they received a $320 per month increase in trash collection passed along from the City, representing $17 a space. They received a tax increase of $4,000, or $16 a space. If only those increases were passed along, that would be a $33 increase. He did not think there was anybody in the City who was gouging and that they had justifi- able records and means to prove it. He understood the feelings of everyone present. They ail had a difficult time making ends meet today. Before con- cluding, Mr. Bostwick touched upon the issue of fair rate of return and other matters previously discussed. After Mr. Bostwick's presentation, Councilman Roth stated that they were all suffering because of situations over which they had no control. He felt it was time for mobilehome park owners to start explaining increases to their tenants in detail. He felt there was a definite need for better public relations between the park owners and the residents to inform them as to what was happening. Mr. Bostwick agreed that there was a communication problem. There was a sti~oma over the tenant-landlord relationship, i.e., that the other person was not going to listen. They were receptive and understood. Their rates ranged from $110 to $150 and ten years ago they were in the $70-$75 range. He pointed out that landlords were human beings as well. MOTION: At this point, (7:00 P.M.) Councilman Bay moved for a 30-minute recess since the meeting had been in progress since 1:30 P.M., with the prospect that the present subject could continue for approximately two more hours. Subsequently, the rest of the agenda still had to be considered. Councilman Overholt seconded the motion for the purpose of discussion. Before action was taken, Council discussion ensued. It was determined that there were five more speakers to be heard, the consensus being if their pre- sentation was directed to the issue, it would take only a short period of time. The foregoing motion FAILED TO CARRY by the following vote: AYES: COUNCIL MEMBERS: Bay NOES: COUNCIL MEMBERS: Overholt, Kaywood, Roth and Seymour Mrs. Adrienne Janis, Anaheim Shorms Estates, 1919 Coronet, #205. Anaheim Shores, did get a rent increase before the park was filled. There was a $24 increase throughout the entire park. When they moved in, rents ranged from $195 to $295 a month. They were now $219 to $319 a month. She then explained, in answer to Mayor Seymour's earlier question, why they moved into a mobilehome park knowing they would only have a 30-day tenancy. She also explained that a few residents had inquired in the manager's office about the purchase of their property. She assumed that the manager would have asked the owner as to that possibility. A notice then went out inquiring as to how many were interested in purchasing their land. The survey was performed and returned to the office on the date specified. They did receive a notice that if they were interested in purchasing the land on 81-57 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. which their coach was situated, the minimum price was $44,000 which they considered to be excessive. When they tried to reach Mr. Matreyek, the owner, by whatever means, they had been unable to do so. That was an example of the lack of coop- eration from management. She also confirmed for the Mayor that a 10% increase over a period of one year, in her mind, was not fair and an 8% increase would have been sufficient. Mrs. Sergeant, a mobilehome resident in Anaheim: Something that had not been broached today that was a disadvantage to the mobilehome owner was that their mobilehome continued to appreciate as long as it did not go over the age the California Civil Code stated. Her mobilehome Would be 20 years of age in 5 years. In 6 years if she wanted to stay in her home, it could not be said that her home was appreciating, but it was then going to be depreciating. If a mobile- home was well kept, it should have a 50-year life as on traditional single-family homes. The mobilehome park owner's property did not depreciate, but the mobilehome owner's home did. Until Sacramento changed that ruling, she did not think anyone could use as an example that they as a mobilehome owner were going to continue to gain a profit when selling. It was not the same type of a game as the mobile- home park owner received. Mr. Reichmeyer, resident of Orange Tree Mobilehome Park: Since the advent of Proposition 13, he had a $107.50 increase. He was trying to sell his mobilehome and it had been on the market for two months. As soon as he told a prospective buyer the rent, he would never hear from him again. The possible buyers did not even ask him the price of the mobilehome. After the meeting in April with the Council, their park owner sent everybody a letter saying that he would buy their coaches, give then a note and as soon as they were re~dy to move out he would pay cash, but for the market value or bluebook value and not what the space was worth. He called that $12,000 to $14,000. If he was asking $40,000 to sell his mobilehome, the owner would bring it down to $28,000. That was what the space meant to him. It would put a new coach in and make his money on that. The owner was even willing to move his coach at his own expense to get that empty space. Mr. George Makinishi, part owner of the Green Acres Mobilehome Park, 3050 West Ball Road, Anaheim: Since the passage of Proposition 13, they rebated $100 for each space. WMA recommended a rebate of 80% and in his park he rebated more. On their rent, they had no increase in 1980 and today their average rent in his park was less than $150 a month. The increase this year was less than 10% and there were no protests to that increase. The residents thought it was reasonable and some were willing to pay more. They had good tenants living in their park and they had no vacancies. Mr. Jack Dutton, Manager of the Sunkist Gardens Mobilehome Park: The owner of the Midway Trailer City, Mr. Bostwick, touched on the subject that he wanted to address in reference to what Mr. Dailey had said. Mr. Dailey indicated that park owners had only a small expense putting in a pad, a carport and some utilities. However, that was far from the truth. When building a park, it was necessary to put in sewers, utilities, streets, a recreation center with all its amen- ities, two to three acres of lawn, trees that had to be maintained and they had employees to pay all the time. He wanted to clarify that for the record. Ms. Kish mentioned that Sunkist Gardens was one that did give a tax credit because of Proposition 13, and they did so in 1978. Also, while the CPI was up 81-58 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. 10.3%, the company raised rents 8.4% and on top of that gave a tax credit because of Proposition 13 of $7 per month which had prevailed up to January 1981, leaving a net of only a $7 increase for the park owners for the park spaces that year. Mr. Dutton then clarified questions posed by Council Mem- bers relative to his presentation. Mr. Richard A. Smith, Rancho La Palma Trailer Court. He and his wife were 50% owners at 825 West La Palma, a small park of 28 spaces three blocks east of Anaheim Memorial Hospital. They maintained a clean and quiet park. Approxi- mately one-half of their tenants were retired and one-half worked. Their rent was $95 a month plus gas and electricity which they submetered. In 1978 they shared 80% of their savings on Proposition 13 with their tenants. He felt they had been fair. If rent controls were imposed, they would be hurt simply because they were at a low base and if they started to apply percentages to the low base, somebody would get hurt because the rates they were being charged did not have a ceiling on them. What would happen, parks would start closing down to find alternative uses for the land which was already happening in Orange County. They wanted to maintain their park and continue as a park operator. He then confirmed for Councilman Roth that their last base increase was in July 1979. Last year they submetered on gas and did not lower the base. This year they expected that same natural gas to cost them $2500 being paid for 18 spaces for about $2.50 per month per space. Ten spaces were on propane. In 1979, they went from $82.50 to $95. He then explained the nature of his park. Mayor Seymour noted that Mr. Smith made a very good point. Rent control could be unfair to park owners such as Mr. Smith and the other two gentlemen (Bostwick and Makinishi). It would actually hurt those who were trying to be fair because they would be moving off a lower base than everybody else and as a result would be adversely impacted. There being no further persons who wished to speak, the Mayor closed the public hearing. He then asked to hear from the Council relative to their feelings on the issue. Councilman Roth stated it was informative to have spent the time, five hours to this point, and energy to hear both sides. The plea for rent control was not new to the Council and they had been faced with the request before. He main- tained that inflation was the problem and everyone tried to do what they could to beat it down. Those not in government or who had never attended a City Council meeting or paid too much attention to the whole political process of the Country, people themselves were leaning too much towards government for answers. If government had the answers, they would have, for instance, cured the housing problem in New York City in 1942 at which time rent control was ins- tituted and still in effect today. In that City, it had caused a dry up of the lower rental properties now boarded up, resulting in a complete destruction of good property. Thus, the situation of having government become involved in the private sector through controls defeated exactly what the populace wanted. He understood the frustration since his 88-year old father had just received another rent increase in his mobilehome park in La Verne and who wanted government to do something about it the same as he would understand the frustration of any citizen in any rental property. To control rents in mobilehome parks would only control rents in all rental spaces. Ms. Kish did not answer the question as to whether she was interested in having rent controls for apartments as well. He felt one 81-59 Ci. ty Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. situation could not be divorced from the other because both were housing units. Rent controls caused artificial shortages and developers quit building. Every- body was going to get hurt when artificial shortages were caused. He felt that many efforts would be made in the coming year to try to implement Statewide rent control just as in the past. Everyone needed to rededicate themselves and realize again that the cornerstone of the country was based on free sale and exchange of property rights. Freedom was based on property rights. He ques- tioned if they were willing to give up their freedoms because they felt some- body was unjust and thus turn the reins over to a governmental body who would be just. He had not seen that in the time he had served on the Council and during that time he had remained very close to the various levels of govern- ment, local, state and national. The people who were present today asking for rent control were a product of the society of free enterprise system. He was sympathetic particularly to the seniors and the problems they were experiencing and he wished somehow he had the power to drop the rents back to where they were five to ten years ago. How- ever, he was a realist. He emphasized that they were all caught up in the in- flation spiral. It gave him a heavy heart to realize that people worked a whole lifetime, retired, and became dependent upon Social Security resulting in nothing but problems because of rent increases and the like. However, he could not destroy the system. He was again going on record, and always had been on record, that he was opposed to any type of rent gouging and as he explained before, he had taken it upon himself as well as his colleagues to try to con- tact and reason with the owners where complaints had been received to emphasize it was best for the country to solve the problems themselves without government intervention. He appreciated all the input today and even with the signs and placards in evidence in the audience today, he could not support the concepts presented. He was a product of the system himself and was suffering along with those present today, but he could not support rent control. Councilwoman Kaywood stated that there had been a great deal of talk over and over again relative to the housing shortage and that they must create more housing, but in the process of doing so they were going to give away the whole store. If all that was going to do was simply raise the cost of everything and continue to do so, they would still be leaving 60% or more of the popula- tion out of the pie. It was a fact that they needed housing, but there had to be a different feeling about the situation. Not everybody had to become a total millionaire to invest in any kind of housing. She had listened carefully to everyone and surmised that the WMA had a job to do. They had to clean up their act and they would not be sitting here today if WMA had taken care of the prob- lem at their level. She, too, did not want to hurt the people like Mr. Bostwick (Midway Trailer City), Mr. Smith (Rancho La Palma Trailer Court) and Mr. Makinishi (Green Acres Mobilehome Park). They operated very fine parks and their residents were "happy" people. Mr. Dutton was the manager of a large and very lovely park (Sunkist Gardens) and everyone she knew who lived there had nothing but the high- est compliments to give for the park. She had not heard any complaints out of Sunkist Gardens. The fact that he (Dutton) had told the owners that just util- izing the CPI was too high and not relevant, she had to agree with that. If people simply wanted to make all the money in the world and not look at the other side, i.e., that people needed to have a place to live, that was also 81-60 City Hall~ Aq.a.heim~ California - COUNCIL MINUTES - January. 13, 1981, 1:30 P.M. wrong. WMA was able to advise the park owners to give back a maximum of 80% with regard to Proposition 13. They needed to give other advise as well and should establish a fact finding or problem solving mechanism or whatever was necessary to mitigate the problems. If they tackled the problem from a pre- vention angle, they would have a much easier time than trying to bring about a cure. Councilman Overholt stated he had already expressed some of his thoughts in the questions he posed. This was the second long hearing generated by Ms. Kish since he had been on the Council, and he co~mnended her for bringing it about. It enabled the issues to be aired and gave everybody an opportunity to say their piece. They had heard charges and counter-charges of reasonableness and unrea- sonableness on both sides. However, he could not see government dictating to the mobilehome park owner what they were going to charge anymo~e than he could see government dictating what the mobilehome owner was going to pay. The fact that there was an organization such as WMA and the Golden State Mobilehome Owners League and others throughout the State, in that may lie the solution to the problem. He felt it was a matter of both interests trying to solve their own problems. It was his guess that the majority of the Council would vote against rent control or anything akin to it. It was obvious that other Councils did not feel that way (Carson, San Juan Capist~ano, Stanton) and thus it would behoove the WMA to develop a process that would enable disputes to be resolved. Speaking to Mr. Swanson, he (Overholt) felt that he was the key and by like token, it seemed if the representatives of the mobilehome owners association would try to develop some kind of process whereby they could air and investi- gate complaints and subsequently make recommendations, that could smoke out the unreasonable actions by mobilehome park owners and perhaps the unreasonable criticism. He felt the latter was based on ignorance of the se-called tenants, because (1) they did not want to listen to why a rent increase was being pro- posed, or (2) and more likely, because the mobilehome park owner would not tell them and they did not want to open their books. He believed that the solution was to have the two interests work the matter out. Perhaps arbitration was the way to go and it did not have to be an expensive process to give both sides an opportunity to air their concerns and to come up with a recommended position. Nine times out of ten each side did accept that disposition and that would be the end of the process. If not, it was his guess that there would be other five-hour hearings in the Chamber and before other bodies. If the matter did not resolve itself eventually within the organization, even the makeup of the City Council changed from time to time. It might be that at some future date, government would use its heavy hand, which he did not like, to encourage some kind of solution or process that would enable them to solve the problems. He reiterated that he was absolutely opposed to anything akin to a Rent Review Board which, in his opinion, was another way of imposing rent control. They would only be delegating to that body which they would compose, that which they would otherwise do if they were to do it themselves. That was not the answer. He encouraged the associations to work out a process to resolve the difficulties to everybody's satisfaction. Councilman Bay stated it was ironic for him to hear a great number of citizens come forth with a problem that was created by the economoc problem created by government in the first place and to ask local government for more laws to 81-61 City, ~.all~ Anaheim, California - COUNCIL MINU~ES - January .13,. 1981, 1:30 P.M. resolve the economic problem of rent increases by rent control. He could not possibly support rent control in the City because rent control never solved anything. He did not think that government by adding controls relative to economic factors ever did anything except cost someone more money down the line. It was his opinion if the Council instigated any kind of rent control, for a very short time they might make about 250 people happy, but over the long run, they would compound the problem 100 fold. It was that simple and that was the issue--government control was not going to solve the economic problem. Mayor Seymour stated in closing for the Council, he was pleased they had spent the hours they had today. It had been a learning experience for himself and he was certain he spoke for many who were present. There were some extremely interesting points made on both sides. On one hand, there was an emotional issue and relative to that issue, much had been said about the ravages of inflation and its effect especially to those on fixed incomes. That was all true, but what had not been spoken about today was the frustration level that set in on anybody faced with increases. Although there had been rent increases in Ms. Kish's mobilehome park increasing three-fold or 300% in the last ten years~ comparing that substantial increase to the price increase in oil, it was nowhere comparable. What was taking place was a venting of the frustration people felt relative to inflation directed towards the landlord, City Council, etc. He felt that was good but it explained, in his mind, the overall frustration with inflation as a whole. He felt the Council or any responsible government must look at the other side of the coin as well. It was easy to make the decision for rent control or a Rent Review Board, but when he looked at ~he longer term question, he was torn philosophically. Today rent control meant that somebody was going to subsi- dize someone else. To a point, that was acceptable because there was a great deal of subsidy in society today. He questioned, however, if it was fair that such a small group should be subsidizing the mobilehome tenants, i.e., the tenant being subsidized by the mobilehome park owner. He did not believe that was fair. If there should be a subsidy, then all citizens should con- tribute to that. In Anaheim there was such a program and mobilehome parks were now included, the Section 8 Housing Program, in which the federal govern- ment assisted those in need who could not make it on their incomes to help pay their rent. Anaheim was one of the first cities to establish that program for mobilehome park tenants. If there was a just cause for subsidies, then all taxpayers should pay. He maintained that it was totally wrong to lay off the cost of a subsidy on a small group. Relative to the mobilehome going up in value, if it were so that a mobilehome tenant could get more for their mobilehome tomorrow than today, then it must be a good deal and part of the deal was the amount of rent paid. If rents were so horrible that they were just beyond reasonableness, why would somebody pay somebody else more for that mobilehome today than yesterday. As long as the marketplace was willing to pay more for that mobilehome today, it had to be a good deal. From an economic standpoint it would be unfortunate for the City to adopt rent control. It was the cruelest hoax that could be perpetrated on a tenant and hurt the very person it was supposed to help. There had never been any society, city or government entity in which rent control had worked. In reading some 81-62 City Hall~ Anaheim, California - COUNCIL MINUTES - January 13, 1981~ 1:30 P.M. background information relative to rent conrol, he asked to share an article by a Professor Lindbeck, Professor of Economics in Stockholm, Sweden, the first country he knew of that ever tried rent control. "In many cases, rent control appears to be the most efficient technique presently known to destroy a city except for bombing." He (Seymour) felt there was a great deal of truth to that. He knew of no place, city, county or country wherein rent control had done anything to solve the problem. People would immediately begin to look at alternate uses and subsequently they would have 250 people, the same people, filling the Council Chambers once again saying that the Council should not permit them to be displaced. They would then be faced with the hard philosophical decision of whether or not they should control the property rights of the pro- perty owner even if they could somehow insure that those displaced people would be compensated by saying that they could have their property rights for an alternative use, but they were going to have to take care of their tenants-- pay to move them, relocate them, and buy their mobilehome. The Planning Com- mission and Council had already expressed that course of action to park owners wishing to convert to alternate uses. However, all that was going to do was to ultimately bring an end to mobilehome park living in the City. That was where rent control was going to lead them. Although they might solve the prob- lem and make most of the people present happy today, tomorrow they could be displaced by decisions made by the Council, whether the present Council was in office or not. He believed it would be a very grevious error to invoke rent control in mobilehome parks. Finally, although some would say that mobilehome parks somehow should be seg- regated from the rest of the housing market, they could not be. They were as much of a part of the housing market as an apartment, condominium or single- family residence and one segment of the housing market competed against the other. From what he observed, the style of mobilehome living, the security and social aspects, it was a beautiful way to live. It was unfortunate that rent raises took place and it was also unfortunate tha: they had no control over that and the ravages of inflation. The Mayor then thanked everyone for their patience and for their input into the public hearing. Councilwoman Kaywood pointed out that three mobilehome park owners who came forward and indicated they were charging approximately $150 a month rent. If they went by the present market, they could raise their rents to $200 and $250 a month. Her plea was therefore to the park owners, asking them to use a little conscience and heart. No further action was taken by the Council. RECESS: By general consent, the Council recessed for 30 minutes. (8:30 P.M.) AFTER RECESS: Mayor Seymour called the meeting to order, all Council Members being present. (9:00 P.M.) PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 2141 AND NEGATIVE DECLARATION: Application by Abbey Services Corporation, to permit a mortuary on RS-A-43,000 zoned property located at 2303 South Manchester Avenue, with a Code waiver of minimum landscaped front setback. 81-63 Ci. ty Ha.1..1, Anaheim, Califo. rnia- COUNCIL MINUTES - January. 13, 1981, 1:30 P.M. The City Planning Commission pursuant to Resolution No. PC80-211, declared that the subject property be exempt from the requirement to prepare an environmental impact report pursuant to the provisions of the California Environmental Quality Act since there would be no significant individual or cumulative adverse environ- mental impact due to this project and further, granted Conditional Use Permit No. 2141. The decision of the Planning Commission was appealed by Edgar E. Scheck, Attorney for the applicant in a letter dated December 22, 1980, Condition No. i only of the 12 conditions imposed in the Planning Commission resolution, and public hearing was scheduled this date. A subsequent letter dated January 8, 1981 from Mr. Scheck asked for a one-week continuance, since they received the notice on January 6, 1981 of the public hearing and thus did not have sufficient time to prepare for that hearing. MOTION: On motion by Councilman Seymour, seconded by Councilwoman Kaywood, public hearing on Conditional Use Permit No. 2141 and negative declaration therefor was continued to January 20, 1981, 3:00 p.m., as requested by the applicant. MOTION CARRIED. 108: KONA MOTEL - REQUEST FOR EXTENSION OF ABATEMENT PERIOD: Request by Andrew Ruiz, owner, for the Kona Motel, 331 North Brookhurst Street, for an extension of time to the period of abatement pursuant to Code Section 18.89.040 relating to Adult Entertainment, was submitted, together with reports by the City Attorney, Police Department and Zoning Division, with the Planning Commission recommending approval. Mr. Joseph Rhine, Attorney representing ~. Ruiz, 1651 Argyle, Hollywood, stated on behalf of his client, that the situation was somewhat different than others that had gone before the Council, the first being that Mr. Ruiz owned the motel and thus it was different from the normal leasehold situation. He purchased the business in 1973 and received a permit at that time, having operated the motel for almost eight years. He noted that the Police Department recommen- dation was important because the business, contrary to some public belief, had no police problems. If one were to assume, for example, that prostitution was a problem, there would ultimately have been some police problem as a result. The only issues the Police Department mentioned were the standard issues of obscenity prosecutions which could still be brought on any material such as a book or a movie. Obviously, the ordinance was not directed at that problem. He did not believe that was the intent of the ordinance, but that it was in- tended to give people a period of time either to relocate under the zoning laws or recover their money as many other zoning laws allowed. Mr. Ruiz just recently became aware of the law and came to him after he had sent a written request to the Council for the extension. He had subsequently listed his motel for sale. While there was no traditional hardship problem, he obviously had made some capital improvements to his motel but not in the range of a lot of money in terms of outlay. He assumed that he (Ruiz) could recover those by the sale of the motel. While he did install a new roof and had other traditional things done in the last few years, it would not be an economic hardship. He should, however, be given an opportunity to sell his motel by running his business as he had been doing. He noted that the Council had requested in other cases where an extension of the abatement period had been requested, that the petitioner sign an agreement that if they did run into a prostitution problem leading to a conviction, they would agree to abate earlier. 81-64 City Hall, Anahei~~ California - COUNCIL MINUTES -Januafy 13, 1981, 1:30 P.M. Mr. Ruiz was amenable to that if that was one of the major objectives of the Council in enforcing the ordinance. Mr. Rhine continued and stated that he did not know if the Council had an op- portunity to drive by the business. It was not the usual adult establishment. There was no sign outside of the motel which identified it as being adult and thus the impact on the surrounding residential area would be very minor if there was any impact at all. The only activity that was adult in that sense was a system whereby X-rated movies could be shown to adults who wanted to see them on closed circuit television in the privacy of their own room. It was not like an adult bookstore or motion picture theatre that had a sign outside the building indicating the nature of the business. Councilman Roth interjected and stated that in driving by the establishment there was a marquee out front stating plainly, X-rated movies shown. It was, therefore, obvious as to what was going on; Mr. Rhine stated he had to admit that he had not seen the motel and conceded then that it would at least have that impact. Mr. Rhine continued that Mr. Ruiz purchased the property and what he did at that time was not illegal. There had been subsequent zoning regulations and the zoning did call for a period of abatement and that was all he was asking. He was going to try to sell the business and, if not, then he would obviously have to abate it pursuant to the zoning regulations. In terms of the role of government in solving problems, he requested that they look at that compromise which fell somewhere in the middle and he could recover what would be a fair return on his money. If he could not do it, he would have to abate it and run it as a motel without the adult feature added. As a small businessman, he did not know what the affect of that change would be. He had been able to run it as a motel and had been able to make a living, but if he was told he had to try to run it in a different fashion and make the same living, there was no answer as to whether or not he could do so. He was asking that the Council give him an opportunity for a reasonable period of time to try to sell it and recover his money. Councilman Roth noted that Mr. Rhine indicated he had not seen the motel. How- ever, from the discus.sion, he assumed that all the rooms offered adult entertain- ment and that a guest with a wife and children would be turned away. Mr. Rhine indicated the whole motel was that way, but there was no legal reason for the owner to turn anybody away. However, that had been his policy so that he did not have to worry about children sneaking in. Councilman Roth stated in the event an extension of time were granted, basically what would be eliminated would be the closed circuit TV, and the motel would become just like the rest of the motels in Anaheim. Although he normally never spoke about the economics of a situation, but rather land use, they were asking for some additional time which indicated to him that they were trying to merchandise the motel as an adult entertainment operation. No prudent buyer was going to do so upon a disclosure by the seller that an adult entertainment ordinance was in effect in the City and had to be sold strictly as a'motel. / ? 81-65 City Hall, Anah. eim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Mr. Rhine stated he did not know what his (Ruiz) duties were to disclose or have his broker disclose. He would say he had to make known the problem. He could operate the business for another 18 months or a year before selling it to a buyer and tell the buyer of the zoning change. The buyer might say he was going to run it as a motel only, but was going to offer $25,000 less. With that problem in mind, perhaps he could make enough money in the next year, so that he would come out relatively even. Councilman Bay assumed that Mr. Rhine knew the way the ordinance was set up. The basis of the hearing was to determine if there was proof of undue hardship under the ordinance. He did not quite understand the hardship stated by the applicant (see letter dated December 19, 1980, on file in the City Clerk's office) that seven employees presently working in the business would be replaced by one manager. He asked Mr. Rhine to explain. Mr. Rhine stated that the client's assumption was that his business would fall off dramatically and he could no longer afford his present payroll. He did not have any idea what it would draw as a straight motel. Mayor Seymour, trying to stay along the line of proving undue hardship, asked if they were to understand that Mr. Rhine believed his client might have un- due economic hardship and further that there was every possibility that in the current proposed sale, he would recoup all of his capital investment. Mr. Rhine first answered "yes" to the latter question. The motel had been on the market for approximately six weeks and Mr. Ruiz felt he could recoup by a sale as a motel. As to the first question, he did not think it was a supposed loss and he did not plan on such an ordinance being enacted. He was unaware of the situation a year ago. He had asked what bills he had incurred in the last year. He had his mortgage payments and so on and he showed him some bills in a secondary fashion dealing with capital improvements over the last two years, totalling approximately $5,000, the largest being for replacement of a roof as he previously mentioned. Assuming with property values increasing in the last seven years, if he could sell the motel tomorrow, he could probably recoup and make a reasonable profit on the land and structure he originally bought. What he could not replace and what would be an obvious economic hardship was not the property but the business and what it returned to him day in and day out in his earning a living. Mayor Seymour stated, relative to the roof, that would have to be replaced whether or not adult entertainment was being provided; Mr. Rhine conceded that was so, but he did not get the impression that was the issue. Councilman Overholt first stated that this was not the only incidence of an application for an extension in which the applicant owned property. There were other cases where the applicant owned the property. The concern he had was that Mr. Ruiz had been in business almost eight years and operating what was now, in the ordinance, a use that as of December 20 was not appropriate. To say that he was not going to recoup his investment, he wondered what he had been doing for the past seven and one-half to eight years. Additionally, Mr. Rhine stated that his client just found out about the situation. If he had been making a living on the business in Anaheim for that period of time, it 81-66 City Hall, Anaheim~ California- COUNCIL MINUTES - January 13, 1981, 1:30 P.M. was difficult for him to understand why he would not be very aware of the hearings and deliberations the Council had over a year ago on the Adult Entertainment Ordinance. His client was in a better position than many applicants who had come before the Council who may be denied, in that he had a business that he could continue--the motel business and the only problem was the Adult Entertain- ment. The only issue he saw in such cases was to determine if there was undue hardship. In the cases that had gone before them, they had sworn testimony on substantial investments in fixtures that could not be removed and put some- place else. Some of the hardest cases were those where somebody bought the business in the last year and paid $35,000 or $40,000 and then found out that the business was no longer legal in the City. That was real hardship because they usually had a trust deed on their home to pay off the purchase price, etc. He had some real difficulty in this case seeing that there was undue hardship as a result of the application of the ordinance. Mr. Rhine stated that Mr. Ruiz did not make his living from the motel because it did not return that kind of money. He did have other business interests outside of Anaheim and did not live in Anaheim. Apparently he was not keeping track of all of the various meetings and final passage of the ordinance. He did get notified somewhere along the line of the termination period and that was why he asked for the extension and subsequently came to see him. A 24-room motel was somewhat obsolete. They could not charge that much money unless it was kept full. He did not make his living from the motel. Mayor Seymour stated if they were to grant the extension, that would be pro- longing the situation. His client would sell the motel with value regarding the adult entertainment aspects and the'next person would really have a hard- ship because he paid for the adult entertainment feature of the motel. Mr. Rhine stated he would advise his client that he could not make a direct misrepresentation. What he suspected would happen in most cases, he would be in a position to say to somebody he had been able to make some money from the motel. He did not believe they would be giving him a license by granting an abatement period to misrepresent what was happening. Councilwoman Kaywood noted the letter from Mr. Ruiz requested an extension of one year to conform or sell and she did not know why they were even talking about two years. Secondly, if he were to conform and operate a strict motel, he would know whether he could make it that way and, in fact, be offering an honest sale to anyone else. If they had an interested buyer and they showed that buyer what they were making, but did not inform him that they could no longer have adult entertainment, that was a very onerous situation which concerned her greatly. Mr. Rhine stated relative to the time period, he noticed the one year mentioned in Mr. Ruiz's letter vs. the two-year extension. The reason he stated two years was that all City agencies had responded as if his client had asked for two years. In talking to him (Ruiz), he would assume that one year met his needs. He had the motel on the market and he planned to keep it on the market until he could sell it. If the time ran out and he could not sell it, whatever time was given him, he would have to accept that situation. Relative to the latter comment by Councilwoman Kaywood, he stated that he found it more onerous the other way around, 81-67 City Hall, An.ah.e. im, California- COUNCIL MINUTES .-January 13., 1.981, 1:30 P.M. considering the time and effort Mr. Ruiz had put into his business. Mr. Ruiz felt there was something that the City owed him to encourage that type of busi- ness enterprise and allow him in some fashion to recover as much as he could. If he was allowed to operate for the year extension as he had requested, he was aware he must sell the business during that time and that he could not misrepresent the nature of the situation to a prospective buyer. He could not do that now. Councilman Overholt asked if Mr. Rhine felt if his client were present and were sworn, that he could give further evidence of undue hardship or that his (Rhine's) overall review of the situation covered everything he would have to offer; Mr. Rhine stated that Mr. Ruiz knew more about each individual bill. Councilman Overholt stated in previous cases they asked if there was any objec- tion to the petitioner being sworn in to testify under oath as to the items of undue hardship. If Mr. Rhine wanted that opportunity, he should not be denied, but if he felt that he covered everything that his client could offer, that was up to him. Mr. Rhine stated he would look for some guidance only on the one issue relative to the bills such as those for roofing repair, painting etc. Mr. Ruiz could tell exactly how much he spent and it might be $10,000 over the last two years over and above his payroll. From that point of view, he did not know if the Council would consider that as undue hardship where he had owned the property for seven and one-half years. In pure theory at least, he would be able to sell the land and motel at a profit and recoup something over and above his capita] imp=ovements, as well as his original capital investment. Councilman Overholt stated that it was not really material then. Mayor Seymour stated from what he gathered of Mr. Rhine's presentation, he did not see where he had demonstrated on behalf of his client that undue hardship existed. The $5,000, maybe $10,000 worth of bills, sounded like typical type operating expenses in running a motel and the holding of that type of property. He had not been convinced by any evidence that there would be any undue hardship exercised upon the motel as a result of conforming with the ordinance. MOTION: Councilman Seymour moved to deny the request for extension of the period of abatement pursuant to Code Section 18.89.040 relating to Adult Entertainment for the Kona Mo~el at 331 North Brookhurst Street. Councilman 0verholt seconded the motion. Before a vote was taken, Mr. Rhine stated the major point he tried to make was that the basic undue hardship was the loss of profit. If he (Ruiz) came in, he could testify as to how much money he had made in each of the seven to seven and one-half years. However, what he sensed in the discussion was that the response that the Council would likely give that, was that he could make the same profit with the non-adult characteristic to the motel. There was no way he could get around that argument if that was what the Council chose to say. Mayor Seymour stated he was not saying he would make the same profit or not-- he did not know. He did think because he offered Adult Entertainment at his motel he must believe there was profit in it, or else he would not do it. For 81-68 City Hall, Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. him to try to measure that would be extremely difficult. What the ordinance directed them to do was to determine whether or not the exercising and enforce- ment of that ordinance would cause undue hardship upon the applicant which he then expanded upon, as did Councilman Overholt earlier in the discussion. In concluding, he stated he did not see the justification for undue hardship in this case. Councilwoman Kaywood reiterated that until he tried it as a sraightforward motel, he was not going to know if there was a difference. There were many small motels throughout Anaheim and the area. A vote was then taken on the foregoing motion of denial. MOTION CARRIED. 108: REQUEST FOR EXTENSION OF ABATEMENT PERIOD - TENDER TOUCH MASSAGE: Request by William N. Walker, Attorney, on behalf of the Tender Touch Massage Parlor, 219 South State College Boulevard, for an extension of time to the period of abatement pursuant to Code Section 18.89.040 relating to Adult Entertainment, was submitted together with reports by the City Attorney, Police Department and Zoning Division, with the Planning Commission recommending approval. Mr. William Walker, Attorney, stated he was representing a Mrs. Thi Nguyen, the owner of the Tender Touch Massage located on South State College Boulevard in Anaheim. She purchased the massage parlor in the month of May 1979 and escrow closed in July 1979, paying at the time a total purchase price of $45,000. The form of the payment was a promissory note which was given for $22,500 and supported by a trust deed on her family home, as well as a security agreement on the assets of the massage parlor. She also paid through the escrow the sum of $22,500 in cash which then made up the total purchase price. In the 19 months since the business had been in operation, she had managed to reduce the promissory note through payments to the seller to the extent that $16,458.29 was now due. Mrs. Nguyen worked in the massage parlor with one or two employees, depending upon business. She made no substantial expenditure by way of improve- ments other than adding a washer and dryer in February of 1979 for approximately $645. The lease was assigned over and then executed anew on May 25, 1979, and it was a standard five-year lease which would normally have, were it not for the ordinance and circumstances, run through 1984. It was a lease without options. The massage parlor itself, according to the accounts and records, earned $650 a month over and above the cost of her employees and the money necessary to reduce the promissory note and the trust deed against her home. She would like to give up the business, but she would have to give up her home in ex- change for it. In concluding, he stated that Mrs. Nguyen's understanding of English was better than her ability to speak it. City Clerk Linda Roberts thereupon administered the oath to the petitioner that the testimony she was about to give was true and correct to the best of her belief and knowlege; Mrs. Nguyen answered affirmatively. Councilman Overholt asked if the statements made by Mr. Walker regarding the purchase of her business were true and correct; after some clarification, Mrs. Nguyen attested that what Mr. Walker had stated was true and correct. Councilman Overholt asked the hours of operation; Mr. Walker answered that her hours of operation were 10:00 a.m. through midnight, seven days a week up until now; Mrs. Nguyen stated she opened at 9:00 a.m. to midnight seven days a week. 81-69 City Hal!~ Anaheim~ California- COUNCIL MINUTES - January 13, 1981, 1:30 P.M. Councilman Overholt asked if his client would stipulate that her hours of operation would be no greater than she presently operated--9:00 a.m. to Midnight seven days a week; Mr. Walker answered, she would so stipulate. Councilman Overholt then asked if she would also stipulate if they were to grant the extension, it would terminate in the event of a conviction of a pros- titution-related offense connected with her business; Mr. Walker answered she was agreeable and would so stipulate. Councilwoman Kaywood asked the owner from whom did she purchase the business. Mrs. Nguyen answered Marvin and Sally Greenspan. Mr. Walker clarified that they were the owners of the operating business which was also then known as the Tender Touch. When Mrs. Nguyen bought it, she took it over as an operating busi- ness with ail of the assets intact. MOTION: Councilman Overholt moved to extend the period of abatement on the Tender Touch Massage for two years from December 20, 1980 to December 20, 1982 on the conditions that (1) that hours of operation be 9:00 a.m. to 12 Midnight seven days a week and (2) in the event of a conviction of a prostitution-related offense, the extension would terminate. Before a vote was taken, Mr. Walker asked if they would like to have that stipu- lation in writing; Councilman Overholt stated it was on the record. However, he would ask if the stipulation was freely given by his client. Mr. Walker answered that was correct. Councilman Seymour seconded the motion. Councilman Roth stated he was going to support the motion. He commented that he was astounded that somebody could sell such a business for $45,000. He was surprised that there were people who took advantage of other people so readily. A vote was then taken on ~he foregoing motion. Councilman Bay voted "no." MOTION CARRIED. 167: ROSSTON SCHOOLS OF MEN'S HAIR DESIGN - REQUEST FOR WAIVER OF TRAFFIC SIG- NAL ASSESSMENT FEE: Councilman Roth moved to approve the request of Mr. Ross Alloway, President, Rosston Schools of Men's Hair Design, requesting a waiver of the $1,015 Traffic Signal Assessmen~ fee paid in connection with relocation of his business to 1814 West Lincoln Avenue as a result of Redevelopment activi- ties, as recommended in memorandum dated January 7, 1981 from the City Engineer. Councilwoman Kaywood seconded the motiom. MOTION CARRIED. CONDITIONAL USE PERMIT NO. 1905 - EXTENSION OF TIME: Request by Floyd L. Farano, for an extension of time to Conditional Usa Permit No. 1905, to permit an auto- mobile parking lot with waiver of permitted encroachments of a 6-foot high wall and parking in the front setback on property located at the southwest corner of South and Helena Streets, was submitted. Councilman Overholt moved to approve the requested extension of time to Condi- tional Use Permit No. 1905, to expire January 2, 1982, as recommended in memo- randum dated January 7, 1981 from Assistant Director for Zoning Annika Santalahti. Councilman Roth seconded the motion. MOTION CARRIED. 81-70 City Hail~ Anaheim~ California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. CONSENT CALENDAR ITEMS: On motion by Councilman Roth, seconded by Councilman Overholt, the following actions were authorized in accordance with the reports and recommendations furnished each Council Member and as listed on the Consent Calendar Agenda: 1. 118: CLAIMS AGAINST THE CITY: The following claims were denied and referred to the City's Claims Administrator: a. Claim submitted by Josephine C. Patti for personal injury and vehicular damages purportedly sustained as a result of accident involving a City-owned vehicle, at North Street and Lido, on or about December 2, 1980. b. Claim submitted by Policarpo M. Reyes for vehicular damages purportedly sustained as a result of incident involving City vehicle in the parking area at 1240 South Claudina Street, on or about November 4, 1980. c. Claim submitted by Carol L. Metz for personal injury damages purportedly sustained as a result of man falling onto claimant at Anaheim Stadium (view level, first base line), on or about October 26., 1980. d. Claim submitted by Ms. Sandra Krause for personal injury damages purportedly sustained as a result of slip-and-fall accident at Anaheim Stadium, on or about November 30, 1980. 2. CORRESPONDENCE: The following correspondence was ordered received and filed: a. 105: Public Utilities Board--Minutes of November 20 and December 4, 1980. b. 105: Community Services Board Resolution No. CSB80-2, establishing the second and fourth Thursday of each month at 7:00 p.m. in the Council Chambers as the time and place of regular Community Services Board meetings. 3. 108: AMUSEMENT DEVICES PERMIT APPLICATION: In accordance with the recom- mendations of the Chief of Police, an Amusement Devices Permit was approved for The Cracker Barrel Restaurant, 801 South State College Boulevard, for one video machine. (Harold M. Barton, applicant) 4. 140: CANYON HILLS LIBRARY, CONTRACT CHANGE ORDER NO. 1: In accordance with the recommendations of the City Engineer, Contract Change Order No. 1 in the amount of $20,841.34 was approved, bringing the original contract price to $1,260,840.34. (J. A. Stewart Construction Co., contractor) MOTION CARRIED. CONSENT CALENDAR ITEMS: Councilwoman Kaywood offered Resolution Nos. 81R-11 through 81R-12, both inclusive, for adoption in accordance with the reports, recommendations and certifications furnished each Council Member and as listed on the Consent Calendar Agenda. Refer to Resolution Book. 156: RESOLUTION NO. 81R-11: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUCTION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: ANAHEIM POLICE FACILITY LOBBY ADDITION, IN THE CITY OF ANAHEIM, ACCOUNT NO. 24-988-6325; APPROVING 81-71 City Hall~. Anaheim, California - COUNCIL MINUTES - January 13, 1981, 1:30 P.M. THE DESIGNS, PLANS, PROFILES, DRAWINGS, AND SPECIFICATIONS FOR ~HE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be opened February 5, 1981, at 2:00 P.M.) 150: RESOLUTION NO. 81R-12: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUCTION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: PERALTA CANYON PARK PREFABRICATED BUILDING/HARDCOURT AREA, IN THE CITY OF ANAHEIM, ACCOUNT NO. 47-805-7105; APPROVING THE DESIGNS, PLANS, PROFILES, DRAWINGS, AND SPECIFICA- TIONS FOR THE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids ~o be opened February 5, 1981, at 2:00 P.M.) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour None None The Mayor declared Resolution Nom. 81R-11 and 81R-12 duly passed and adopted. ORDINANCE NO. 4203: Councilman Seymour offered Ordinance No. 4203 for adoption. Refer to Ordinance Book. ORDINANCE NO. 4203: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (66-67-71(78), CR) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour None None The Mayor declared Ordinance No. 4203 duly passed and adopted. ORDINANCE NO. 4204: Councilwoman Kaywood offered Ordinance No. 4204 for adop- tion. Refer to Ordinance Book. ORDINANCE NO. 4204: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (79-80-11, CO) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour None None The Mayor declared Ordinance No. 4204 duly passed and adopted. 81-72 City Hall, Anah. eim, California- COUNCIL MINUTES -January 13, 1981, 1:30 P.M. 178: ASSESSMENT DISTRICTS FOR FLOOD CONTROL: Councilwoman Kaywood stated that next week she would request that they have discussion regarding assessment districts to handle flood control matters in Anaheim. 148: SB 33 - VEHICLE INSPECTION AND MAINTENANCE: Councilman Roth stated he would like to agendize for next week a discussion for support of SB 33. He believed that each Council Member had received documentation relative to that bill. 131: CABLE TV: Councilman Roth asked that data be provided as to how many people were now on-line with cable TV in the City. 105: PUBLIC UTILITIES BOARD MINUTES OF DECEMBER 4, 1980: Councilman Roth stated, after reading the December 4, 1980 minutes of the Public Utilities Board, it appeared that sometime in the future, perhaps within three or four weeks, they should have a joint meeting with the Board. It seemed that there were some unsolved problems as outlined in those minutes. 169: REPORT ON REPLACEMENT OF INCANDESCENT LUMINAIRES IN CENTRAL CITY NEIGHBOR- HOOD AREA I: Mayor Seymour stated he looked forward to receiving the subject report during the coming week so that the Council could resolve the matter at their next meeting. ADJOURNMENT: Councilwoman Kaywood moved to adjourn. Councilman Bay seconded the motion. MOTION CARRIED. (10:02 P.M.)