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1978/06/13 78-731 City Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. PRESENT: ABSENT: PRESENT: The City Council of the City of Anaheim met in regular session. COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour COUNCIL MEMBERS: None CITY MANAGER: William O. Talley CITY ATTORNEY: William P. Hopkins CITY CLERK: Linda D. Roberts RISK MANAGER: Jack Love TRAFFIC ENGINEER: Paul Singer PARKS, RECREATION AND ARTS DIRECTOR: James Ruth CITY ENGINEER: James P. Maddox STADIUM-CONVENTION CENTER-GOLF DIRECTOR: Tom Liegler PLANNING DIRECTOR: Ron Thompson ASSISTANT DIRECTOR FOR PLANNING: Phil Schwartze ASSISTANT DIRECTOR FOR ZONING: Annika Santalahti ZONING ENFORCEMENT OFFICER: Whitey Walp DATA PROCESSING DIRECTOR: Tug Tamaru Mayor Seymour called the meeting to order and welcomed those in attendance to the Council meeting. FLAG SALUTE: Councilwoman Miriam Kaywood led the assembly in the Pledge of Allegiance to the Flag. MINUTES: On motion by Councilwoman Kaywood, seconded by Councilman Roth, minutes of the regular meeting held March 21, 1978 and adjourned regular meeting held March 27, 1978 were approved subject to typographical corrections. Councilman Overholt abstained. MOTION CARRIED. WAIVER OF READING - ORDINANCES AND RESOLUTIONS: Councilman Kott moved to waive the reading, in full, of all ordinances and resolutions and that consent to the waiver of reading is hereby given by all Council Members unless, after reading of the title, specific request is made by a Council Member for the read- ing of such ordinance or resolution. Councilman Roth seconded the motion. MOTION UNANIMOUSLY CARRIED. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $3,676,575.41, in accordance with the 1977-78 Budget, were approved. 123: NON-RESIDENTIAL RENTAL AGREEMENT WITH THE AGENCY FOR THIRD FLOOR EL CAMINO BANK BUILDING: Report recommending approval of the proposed agreement which would lease from the Anaheim Redevelopment Agency the third floor of the E1 Camino Bank Building, 106 North .Claudina Street, to be occupied by the Housing and Neighborhood Preservation Divisions at a rental of $1,200 per month was presented by Mr. Priest, who also explained that these rental fees are in turn reimbursed to the City out of Federal funds. Councilman Roth offered Resolution No. 78R-372 for adoption. Refer to Resolution Book. 78-732 City Hall~ ~naheim, California - COUNCIL MINUTES - Jun~ 13~ 1978~ 1:30 P.M. RESOLUTION NO. 78R-372: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE TERMS AND CONDITIONS OF A RENTAL AGREEMENT WITH ANAHEIM REDEVELOPMENT AGENCY AND AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution No. 78R-372 duly passed and adopted. 125/153: JOINT POWERS AGREEMENT MUNICIPAL DATA SYSTEMS FOR DATA PROCESSING SERVICES: On motion by Councilman Roth, seconded by Councilwoman Kaywood, the proposed agree- ment to extend Data Processing services for MDS to June 30, 1979, was continued to the meeting of June 20, 1978 for further input and discussion by Mr. Tamaru and representatives of MDS. MOTION CARRIED. 123: THIRD AMENDMENT TO AGREEMENT WITH ORANGE COUNTY MANPOWER COMMISSION FOR DATA PROCESSING SERVICES: Report from the Data Processing Director recommending approval of the proposed Third Amendment to the agreement was submitted. Councilman Kott questioned the statement at the conclusion of the Data Processing Director's report noting that it appears ambiguous as to whether or not the City will be recovering all costs incurred from the $12,000 income received as a result of this contract. Mayor Seymour questioned, in addition, what benefits the City receives through this arrangement. He noted that this contract has been in existence for the same $1,000 fee for the last 4 years, which seems to him unrealistic, all costs have risen in that period of time. Mr. Talley explained that the City benefits from the publishing of the Manpower Commission reports on a timely basis; that the Data Processing Department has been and is contemplating recovering all costs in connection with this contract; that the more revenue sources among which the City can spread the Data Processing cost base, the less expense there is to the General Fund. Mayor Seymour stated that this agreement demonstrates a principle involved with which he does not agree. He explained that if the City were to have several of these types of Data Processing contracts, they may have a number of employees just to satisfy the contract requirements which may or may not be profitable to the City. He again questioned the cost and financial benefits to ~he City as a re- sult of the contracts. Mr. Tamaru responded that full costs are covered in this particular contract as it is a rather simple batch type of run. There is capacity on the computer to perform this work and if the City does not accept this work contract, then it will lose that $1,000 per month fee. He advised that they are now developing a cost system which should be operational after July 1 at which time a specific cost information would be available. City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 78-733 Mayor Seymour noted that although this is a small contract, there is still the principle involved and if the City is just recovering costs, why should they continue the relationship. Mr. Talley summarized that for each of these types of contracts the City loses, the City of Anaheim's General Fund contribution to Data Processing will go up. The profit is actually the amount of the base added by the particular agreement because if this is not added, then that amount is picked up by the Anaheim tax- payer. Councilwoman Kaywood remarked that this agreement will be effective only to October 1, 1978 in any case, inasmuch as the Orange County Manpower Commission has other arrangements for these services after that date and therefore this extension is only for a 4-month period. She also noted that if the City were to terminate this service, normally they would give the user a period of time in which to obtain another supplier. In response to Mayor Seymour, Mr. Tamaru advised that this contract expired 6 months ago and some of the billing has been held up due to the lack of an agreement. At the conclusion of discussion, Councilwoman Kaywood offered Resolution No. 78R-373 for adoption. Refer to Resolution Book. RESOLUTION NO. 78R-373: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE TERMS AND CONDITIONS OF AN AMENDMENT TO AGREEMENT WITH THE ORANGE COUNTY MANPOWER COMMISSION AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID AMENDMENT ON BEHALF OF THE CITY OF ANAHEIM. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood and Roth Kott and Seymour None The Mayor declared Resolution No. 78R-373 duly passed and adopted. 123/150: AGREEMENT WITH LOUIS HENNING~ INC. REGARDING PURCHASE OF STATE-OWNED ADJACENT TO CITRON PARK: In response to Councilman Kott, Mr. Ruth explained that he has been working with Mr. Hennig for some time, and they have come up with what appears to be an agreeable solution to mutually establish certain rights and duties for the prospective purchase of State-owned property. He explained that the City has the first right of refusal on the 34,829 square feet of property in question located between the Hennig Auto Body' Company and Citron Park. However, if the City were to acquire the property, it would not be possible legally to convey any portion of it to Mr. Hennig or anyone else who would use it for a commercial or industrial purpose, as the City would have applied for it to be used for recreational purposes. Therefore, pursuant to this agreement, Mr. Hennig will bid for the land at public auction and if acquired will deed a small portion of it to the City for expansion of Citron Park; and in turn, the City will give Mr. Hennig 3,700 square feet of property necessary for him to maintain his bus and truck paint and body business at that location. 78-7~4 City Hall~ Anahelm~ California - COUNCIL MINUTES - June 13~ 1978, 1:30 P.M. Councilwoman Kaywood offered Resolution No. 78R-374 for adoption. Refer to Resolution Book. RESOLUTION NO. 78R-374: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT BETWEEN THE CITY OF ANAHEIM AND LOUIS HENNIG, INC. DBA HENNIG AUTO PAINT AND BODY COMPANY, AND AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution No. 78R-374 duly passed and adopted. 174: AGREEMENTS PERTAINING TO SUMMER YOUTH PROGRAM FOR ECONOMICALLY DISADVANTAGED YOUTH: Memorandum from the Personnel Director recommending three agreements be approved to implement the proposed Summer Youth Program for economically disadvan- taged youth under Title III of the Comprehensive Employment and Training Act was submitted. Said agreements to be retroactive to June 1, 1978 and expiring September 30, 1978. Councilwoman Kaywood offered Resolution Nos. 78R-375 through 78R-377, both inclusive, for adoption. Refer to Resolution Book. RESOLUTION NO. 78R-375: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AN AGREEMENT BETWEEN THE CITY OF ANAHEIM AND THE ORANGE COUNTY MANPOWER COMMISSION RELATING TO MANPOWER PROGRAMS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT AND MODIFICATIONS THERETO ON BEHALF OF THE CITY OF ANAHEIM. RESOLUTION NO. 78R-376: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF ANAHEIM AND THE NORTH ORANGE COUNTY COMMUNITY COLLEGE DISTRICT RELATING TO A LABOR MARKET ORIENTATION COMPONENT FOR THE SUMMER PROGRAM FOR ECONOMICALLY DISADVANTAGED YOUTH. RESOLUTION NO. 78R-377: A RESOLUTION OF %HE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF ANAHEIM AND THE ORANGE COUNTY COMMUNITY DEVELOPMENT COUNCIL, INC., RELATING TO A SUMMER PROGRAM FOR ECONOMICALLY DISADVANTAGED YOUTH. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution Nos. 78R-375 through 78R-377, both inclusive, duly passed and adopted. 78-755 City.. Hall, Anaheim, California - COUNCIL MINUTES - June .!3~ 1978~ 1:30 P.M. 103: PROPOSED ANAHEIM HILLS ANNEXATION NOS. 24 AND 26: Submitted were reports~ from the Planning Department and proposed resolutions requesting the Local Agency Formation Commission to approve the proposed Anaheim Hills Nos. 24 and 26 Annexa- tions, consisting of approximately 2.5 acres located south of Nohl Ranch Road and approximately one-half mile east of Villareal Drive, and 34.29 acres located southwest of Nohl Ranch Road and Imperial Highway, respectively. In response to Councilman Kott's inquiry regarding potential cost to the City as a result of the annexations, Mr. Phil Schwartze replied that they had not run the cost/benefit model on these two particular annexations, however, because the infra- structure is already in for these two areas, he would estimate they would represent a break-even situation. Mr. Schwartze added that they are finalizing adjustments to the cost/benefit model with the effects of Proposition 13 and initial runs show that any residential pro- ject will be a fiscal drain on the City. Mr. Phil Bettencourt, representing Anaheim Hills, Inc., described the areas proposed for annexation and displayed an area map of same. Councilman Roth offered Resolution Nos. 78R-378 and 78R-379 for adoption. Refer to Resolution Book. RESOLUTION NO. 78R-378: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, REQUESTING THE COMMENCEMENT OF PROCEEDINGS FOR THE ANNEXATION OF CERTAIN UNINHABITED TERRITORY DESIGNATED AS ANAHEIM HILLS ANNEXATION NO. 24. (2.5 acres located south of Nohl Ranch Road and east of Villareal Drive) RESOLUTION NO. 78R-379: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, REQUESTING THE COMMENCEMENT OF PROCEEDINGS FOR THE ANNEXATIONS OF CERTAIN UNINHABITED TERRITORY DESIGNATED AS ANAHEIM HILLS ANNEXATION NO. 26. (34.29 acres southwest of Nohl Ranch Road, and Imperial Highway) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour~ None None The Mayor declared Resolution Nos. 78R-378 and 78R-379 duly passed and adopted. 180: ERRORS AND OMISSIONS POLICY FOR PUBLIC OFFICIAL LIABILITY: Mayor Seymour, noting that 4 members of the City Council have gone on record one year ago asking for errors and omissions insurance to cover their decisions as'Council Members, questioned now why Mr. Love is recommending this matter be postponed once again until September 1, 1978. He stressed that until such coverage is provided, each of the Council Members is openly exposed to any law suit as individuals. He stated that he knew of no private corporation without errors and omissions coverage for its officers and that he did not believe the citizens of Anaheim expected their elected representatives to put their total individual financial worth on the line each Tuesday. 78-736 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Mr. Love responded that in terms of errors and omissions insurance, as long as the act in question was performed in the course and scope of employment or service for the municipality, then the City is obligated to defend the action and pay any judgment. If the act goes beyond the area which is within the scope of employment, there is a serious policy question as to whether Council wants to purchase that type of insurance. Mr. Hopkins corroborated that the City does have the obligation to defend employees or officials in such law suits as stated, but there are many cases where the City might not be obligated to provide defense and these could go into protracted liti- gation which would be very expensive. He concluded that certainly errors and omissions insurance coverage for public officials, if it is available at reasonable cost, would be warranted. Councilman Roth pointed that as an example the Albany, California case in which a Council Member lost a law suit and was required to pay the judgment out of his personal holdings. He noted that he has to carry this type of insurance coverage in his business and certainly felt the City Council Members should be provided this protection. Councilman Overholt explained that he is personally a defendant in a suit for $36 million brought against individual officials of another public ageDcy, and that he believes it is absolutely essential for the City Council Members to have this type of coverage. He commented that the problem seems to be even $10 million worth of coverage might not be sufficient with the type of judgments recently awarded. He stated as he understood it, in seeking this coverage there is a difference between a judgment for general damages and a judgment for punitive damages against a public official and that coverage cannot be obtained for punitive damages. He was of the opinion that it might be well to have this point clarified. Mayor Seymour stated that he had thought mistakenly this matter had been resolved a long time ago. Mr. Talley replied that the Council had asked staff to look into the matter, but he did not recall being directed to purchase this insurance. MOTION: On motion by Councilman Seymour, seconded by Councilman Roth, the Risk Manager was directed to bind immediately to provide errors and omissions insurance for City Council Members; to ascertain the best bids for this type of insurance coverage; and to prepare a report within two to three weeks time indicating what other cities are doing in this field. MOTION CARRIED. 180: EXCESS LIABILITY COVERAGE: Report dated June 7, 1978, prepared by the Risk Manager recommending that the Council reject and file the letters of offer for excess liability coverage and that furthe~ attempts be made to obtain said coverage at a later date, was submitted for Council consideration. Mayor Seymour commented, in response to Mr. Love's indication in the report that there is a need for an updated engineering study of the City's dams, the State of California Division of Dams inspects these on an annual basis and on the last inspec- tion, no problems were encountered. 78-737 City Hall~ Anaheim, California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Mr. Love noted that the last complete study of the dams was done in 1973; that the Utilities Department has shared his concern and will have an engineering study and inundation study updated by August 21, 1978. Mayor Seymour explained that Mr. Hal Parker of Continental General Insurance · Company had advised that the question on liability is not the integrity of the dam, but rather the amount of liability downstream if one breaks, which would appear to be clearly in excess of $10 million. Mr. Hal Parker was recognized by the Mayor and concurred with this statment, noting that the last inundation study was done in 1973 by the City Water Divi- sion and the report filed with the State of California Division of Dam Safety as required by law. Mr. Parker advised that the problem arises in that there have been many homes and business centers developed in Zone III since the last study and there is no way to determine the volume of water disbursement to indicate what the depth might be at various sites. He noted that integrity of the dam has never been the question; that the underwriters have chosen to accept the California Division of Dam Safety report since the State of California has the most rigid dam safety laws in the United States. In addition, he stated that his interpre- tation of the Warren, McVeigh and Griffin report was that they felt the amount of insurance the City was carrying was inadequate and they recommended increase in coverage to $20 million. Mayor Seymour stated that he is aware Mr. Love's recommendation is made on the basis that in September the City may be able to find more favorable rates, however he has great concern for the exposure the City faces between now and then. He therefore stated he would be disinclined to take any action on postponing the purchase of this insurance, particularly when the City's consultant, Warren, McVeigh and Griffin have advised that this coverage is necessary and Mr. Hal Parker, a professional insurance broker, has also recommended coverage be ob- tained. Mayor Seymour stated that he would be fearful of the risk created by taking the "let's wait and see" posture until September 1 and would rather pay the prorated premium of $22,606 to provide the excess liability coverage of $20 million until September 1. In addition, this would allow the Risk Manager time to September 1 to investigate other concepts. Councilwoman Kaywood questioned where the money for the prorated premium would come from and was assured it could be covered by a surplus in the Risk Management Budget. MOTION: On motion by Councilman Seymour, seconded by Councilman Roth, the Risk Manager was authorized to purchase excess liability coverage of $10 million over $10 million for the'period to September 1, 1978. MOTION CARRIED. 180: FIRE AND EXTENDED COVERAGE INSURANCE FOR VEHICLES AT 518 SOUTH CLAUDINA STREET: On motion by Councilman Roth, seconded by Councilwoman Kaywood, the City Council authorized the purchase of fire and extended coverage insurance for vehicles stored at 518 South Claudina Street in accordance with the letter of offer from Allendale Mutual Insurance Company dated May 22, 1978, at an annual ~ premium cost of $1,614. MOTION CARRIED. 78-738 ~ity Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 114/108: REVISED COUNCIL POLICY ON PROCESSING OF SOLICITATION PERMITS: In response to a question from Councilman Kott, Mr. Hopkins explained that the criteria in determining which solicitation permits may be approved administratively by the City Manager are specified in the City ordinance covering solicitation permits, plus some supplementary guidelines as set forth in the procedure. It was intended in Council Policy No. 116, adopted by the City Council on May 30, 1978, that review and approval of these permit applications be delegated to the City Manager upon approval by all members of the Solicitation Review Board. This procedure is still subject however to appeal to the City Council if any permit is denied by the City Manager. 148: REPORT ON ALTERNATIVES TO SCAG MEMBERSHIP: Councilman Kott took issue with the report submitted by the City Manager's office indicating that, in his opinion, it was not a report, it was more in the form of an editorial, because of the lack of objectivity which he found i~ same. He reviewed some of his specific com- plaints including (1) percentages given to reflect a decrease in the total budget which were not "meaningful"; (2) that cost to the City of the time of one employee, vehicle and gasoline to travel with the SCAG representative to and from Los Angeles were not calculated and included; (3) that portions of the report appeared to him to be apologies for SCAG; (4) that the report does not show what the successful alternatives to SCAG are; that in his opinion the report draws conclusions without giving the basis for same. Councilman Kott concluded that he could not accept this as a report as it really has not said anything. Councilwoman Kaywood noted that although Councilman Kott apparently read the report closely, in his comments he skipped over the entire portion which did show Anaheim's experiences with SCAG and what benefits have been received (pages 2 and 3). She recalled that the fact is Anaheim has benefited to the tune of many millions of dollars, partly because she was there on the Executive Committee. Councilman Roth stated that he has read the report and it has not changed his philosophy or feelings; he remains unconvinced that it is in Anaheim's best interest to be a member of SCAG. He noted that there are 4 cities which have been out of this organization for a length of time and are still receiving Federal monies. He explained that his fear is that this organization will lead to regional government planning and metro-government, whereas he is an advocate of local control. The Mayor recognized Mr. Jim Townsend, 808 North Pine Street, who suggested that he be authorized to prepare a citizen's report on SCAG. He spoke against SCAG indicating he felt it to be an attempt at establishing regionalism and to take over control of land use by Federal bureaucrats. Mr. Townsend replied to Councilwoman Kaywood's question that he has never attended a SCAG meeting. Mr. David S. Collins was also recognized by the Mayor and he spoke in favor of the SCAG organization, noting that he has attended SCAG general assembly meetings as a representative on the Transportation and Utilities Committee. He voiced th~ opinion that the cities have to look at the transportation of people and goods 78-739 City Hall..~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. throughout the entire region of Southern California as it is a regional and not a local problem and that most local solutions were regional problems had to be solved through a regional organization such as SCAG. Councilman Roth voiced the opinion that more emphasis and more responsibility, for regional planning decisions should be placed with elected representatives of the people through perhaps the League of California Cities, Orange County Division League of Cities or National League of Cities, rather than having decisions made by appointed bureaucrats as in SCAG. MOTION: At the conclusion of discussion, Councilman Seymour moved that the matter be continued for 30 days until such time as the consortium cities have had an opportunity to meet again. During this period, Mr. Townsend may furnish Council with whatever information he would like and the Intergovernmental Relations Section of the City Manager's Office may amend their report. Councilman Roth seconded the motion. MOTION CARRIED. Councilwoman Kaywood admonished Mr. Townsend, that if he wished to submit something about SCAG, that it should contain facts as she is personally tired of hearing people rip something apart when they have never even attended a meeting. She recalled that in Orange County, other attempts at regional planning such as the ICC and SAMCO have failed, and it is apparent that everyone does not agree on everything, especially with the big issues. RECESS: By general consent, the Council recessed for 10 minutes. (2:55 P.M.) AFTER RECESS: Mayor Seymour called the meeting to order, all Council Members being present. (3:05 P.M.) CONTINUED PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 1831: Application by Lloyd E. Klein to permit commercial uses and a restaurant on proposed ML zoned property located on the south side of La Palma Avenue, between White Star and Armando Street with code waiver of minimum number of parking spaces. The City Planning Commission, pursuant to Resolution No. PC78-101, declared that the subject project 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, denied Conditional Use Permit No. 1831. The action of the Planning Commission was appealed by the agent for the applicant and public hearing Scheduled June 6, 1978 (see minutes that date) and continued to June 13, 1978. The Mayor stated that the purpose of the continued public hearing was to give the applicant an opportunity to provide a list of specifically proposed uses for Lots 2 and 7 of the subject development which the Council had already received attached to the letter of June 9, 1978 from Income Property Services (IPS). He asked if the applicant was available for any questions that the Council might have. 78-740 City Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978, 1:30 P.M. Mr. Dick Broadway, Director of Projects, IPS, P.O. Box 6348, Orange, indicated his presence. Councilwoman Kaywood referred to a letter received from the Chamber of Commerce objecting to commercial uses in industrial areas and wanted to know if the issue had been resolved. Mr. Broadway answered that he had a copy of the letter, but had not discussed it with the Chamber. Councilman Roth interjected that Mr. Klein was in the audience and had indicated that the Chamber was taking a neutral position on the matter. From the audience, Mr. Klein stated that the Chamber was taking no position on the proposed project. The Mayor asked if anyone wished to speak either in favor or in opposition. Mr. David Collins, 952 S. Flore, stated he saw no reason for not mixing uses that were compatible and served each other. To talk in terms of not allowing non- manufacturing uses in manufacturing zones followed the cliche of protecting the integrity of a zone. That cliche assumed first that the zone had integrity or that it ought to have. He maintained such a cliche need not be followed. There being no further persons who wished to speak, the Mayor closed ihe public hearing. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Councilman Seymour, seconded by Councilman Roth, the City Council finds that this project will have no significant individual or cumulative adverse environmental impact and is, therefore, exempt from the requirement to prepare an EIR. MOTION CARRIED. Councilman Seymour offered Resolution No. 78R-380 for adoption, reversing the findings of the City Planning Commission, subject to the following Interdepart- mental recommendations, and further subject to the list submitted by the applicant as to specific uses for Lots 2 and 7. 1. That this Conditional Use Permit is granted subject to the completion of Reclassification Nos. 68-69-37 and 70-71-47, now pending. 2. That the owner of subject property shall deed to the City of Anaheim a strip of land 32 feet in width from the centerline of the street along the proposed new street through the property. 3. That all engineering requirements of the City of Anaheim along the proposed new street through the property including preparation of improvements plans and installation of all improvements such as curbs and gutters, sidewalks, street grading and paving, drainage facilities, or other appurtenant work shall be complied with as required by the City Engineer and in accordance with standard plans and specifications on file in the office of the City Engineer; that street lighting facilities along the proposed new street through the property shall be installed as required by the Director of Public Utilities, and in accordance with standard plans and specifications on file in the Office of the Director of Public Utilities; and that a bond in an amount and form satisfactory to the City of Anaheim shall be posted with the City to guarantee the installation of the above-mentioned requirements. 78-741 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 4. That the centerline radius of the proposed new street through the property shall be a minimum of 150 feet. 5. That the owner(s) of subject property shall deed to the City of Anaheim a strip of land 32 feet in width from the certerline of the street along White Star Avenue for street widening purposes. 6. That all engineering requirements of the City of Anaheim along White Star Avenue, including preparation of improvement plans and installation of all improvements such as curbs and gutters, sidewalks, street grading and paving, drainage facilities or other appurtenent work, shall be complied with as re- quired by the City Engineer and in accordance with standard plans and specifica-i tions on file in the Office of the City Engineer; that street lighting facilities along White Star Avenue shall be installed as required by the Director of Public Utilities and in accordance with standard plans and specifications on file in the office of the Director of Public Utilities; and that a bond in an amount and form satisfactory to the City of Anaheim shall be posted with the City to guarantee the installation of the above-mentioned requirements. 7. That the centerline of White Star Avenue shall curve on a minimum radius of 150 feet to intersect the centerline of the future new street through the property at approximately 90 degrees. 8. That street lighting facilities along La Palma Avenue and Armando Street shall be installed as required by the Director of Public Utilities and in accordance with standard plans and specifications on file in the office of the Director of Public Utilities; and that a bond in an amount and form satisfactory to the City of Anaheim shall be posted with the City to guarantee the installation of the above-mentioned requirements. 9.~ That sidewalks shall be installed along La Palma Avenue and Armando Street as required by the City Engineer and in accordance with standard plans and specifications on file in the Office of the City Engineer. 10. That the owner shall purchase the one foot lot "A" on the west side of Armando Street and dedicate an additional four feet from existing property line to the City of Anaheim for street and public utility purposes. tl. That the owner shall dedicate right-of-way for La Mesa Avenue based on a 60-foot street width measured from the right-of-way line of the Riverside Freeway and shall post a cash bond for the future street improvements including street lights. 12. That trash storage areas shall be provided in accordance with approved plans on file with the Office of the Director of Public Works, 13. That fire hydrants shall be installed and charged as required and determined to be necessary by the Chief of the Fire Department prior to commencement of structural framing. 14. That subject property shall be served by underground utilities. 78- 7Z, 2 City Hal~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 15. That drainage of subject property shall be disposed of in a manner satisfactory to the City Engineer. 16. In the event that subject property is to be divided for the purpose of sale, lease or financing, a parcel map, to record the approved division of subject property, shall be submitted to and approved by the City of Anaheim and then be recorded in the Office of the Orange County Recorder. 17. That the owner of subject property shall pay appropriate drainage assessment fees to the City of Anaheim as determined by the City Engineer prior to issuance of a building permit. 18. That appropriate water assessment fees, as determined by the Director of Public Utilities, shall be paid to the City of Anaheim prior to the issuance of a building permit. 19. That the owner of subject property submit a letter requesting the termina- tion of Conditional Use Permit Nos. 1248 and 1567. 20. That subject property shall be developed substantially in accordance with plans and specifications on file with the City of Anaheim marked Exhibit Nos. 1 through 16. 21. That the use of the subject property shall be limited to those specific uses specified on the list entitled "La Palma Business Park Proposed Commerical TEnants Lots 2 & 7" heretofore submitted by applicant and incorporated herein by this reference. 22. That Condition Nos. 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 16 and 19, above-mentioned, shall be complied with prior to the commencement of the activity authorized under this resolution, or prior to the time that the building permit is issued, or within a period of one year from date hereof, whichever occurs first, or such further time as the Planning Commission may grant. 23. That Condition Nos. 12, 14, 15 and 20, above-mentioned, shall be complied with prior to final building and zoning inspections. Before a vote was taken, the Mayor stated that he believed the subject development to be a creative and imaginative one that would serve the City well. The specific list of uses provided were consistent with the examples of other developments presented to the Council at the prior hearing which examples were representative of a high quality development that would be an asset to the City. Councilwoman Kaywood asked that the resolution of approval also b~ tied to the specific plans as submitted; Councilman Seymour accepted the addition. A vote was then taken on the foregoing resolution including the addition. Refer to Resolution Book. RESOLUTION NO. 78R-380: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 1831. 78-743 City Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution No. 78R-380 duly passed and adopted. PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 1828: Application by Deldun Properties to permit a repossessed automobile wholesaling facility on ML zoned property located at 1231 South Sherman Street. The City Planning Commission, pursuant to Resolution No. PC78-97 declared that the subject project 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 environmental impact due to this project and, further, granted Conditional Use Permit No. 1828 for two years subject to the following conditions: 1. That the owner(s) of subject property shall pay the traffic signal assessment fee difference between industrial and commercial uses: $333.00 per 1000 square feet of building or fraction thereof. 2. That subject property shall be developed substantially in accordance with plans and specifications on file with the City of Anaheim marked Exhibit No. 1. 3. That Condition No. 1, above-mentioned, shall be complied with prior to the commencement of the activity authorized under this resolution, or prior to the time that the building permit is issued, or within a period of one year from date hereof, whichever occurs first, or such further time as the Planning Commission may grant. 4. That Condition No. 2, above-mentioned, shall be complied with prior to final building and zoning inspections. 5. That the proposed use is granted subject to review by the Planning Commission at the end of a two-year period to determine whether the use has been detrimental to the surrounding industrial neighborhood in terms of vehicular and pedestrian traffic. 6. That the sale of repossessed automobiles shall be by sealed bids to licensed automobile dealers only, said dealers having been notified by mail of the availa- bility of the vehicles; and that there shall be no advertising or sale to the general public. 7. That no auction shall be conducted to dispose of the vehicles. Appeal of the Planning Commission's action relating to conditions of approval was filed by the applicant and public hearing scheduled this date. 78-744 City Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Miss Santalahti described the location and surrounding land uses. She outlined the findings given in the staff report which was submitted to and considered by the City Planning Commission. The Mayor asked if the applicant or applicant's agent was present and desirous of being heard. Mr. Brenner Reichstadt, Vice President and Manager, Wells Fargo Bank, asked that Condition No. 1 imposed by the Planning Commission setting the traffic signal assessment fee according to commercial property designation be reverted back to industrial property for the signal tax benefits. They had been in operation in Anaheim for three and one-half years and caused the City no problem during that time. They were now merely moving their automobile wholesaling facility to larger quarters and in so doing, wished to be considered the same as in the past. The Mayor clarified, and Mr. Reichstadt confirmed, that although they accepted the Planning Commission's recommendation, they were looking for relief from the traffic signal assessment. Councilman Roth asked the Traffic Engineer what the difference in fees between commercial and industrial were, that being the point of contention. Mr. Paul Singer, Traffic Engineer, stated that the fee was $333 per 10~0 square feet of building area for commercial. Mayor Seymour pointed out, therefore, that the total differential was $630 ($30 per square foot for industrial) and approximately $7,000 as currently assessed. There being no further persons who wished to speak, the Mayor closed the public hearing. In answer to Councilwoman Kaywood, Miss Santalahti did not recall any problem at the business' prior location relative to traffic, and she was not even aware that they had been previously located on Anaheim Boulevard. Mr. Singer explained the reason they made the recommendation relative to the signal assessment was due to experiences they had with the same type of opera- tion on Tustin Avenue and Miraloma. He could show through photographs, which he submitted to the Council, what formidable traffic problems could be generated by wholesale automobile uses. The Mayor.pointed out that, in essence, the request before the Council was the first such request for waiver of the traffic signal assessment fee since Council action a few weeks prior on the matter. At the conclusion of a brief discussion between Council and staff, Councilman Roth stated that the distinction in this case between that shown in the pictures submitted lay in the fact that the business under discussion would not be open to the public and the applicant stipulated before the Planning Commission that it would be restricted to wholesale dealers only. Thus, the use would fit in more closely with industrial uses than commercial. 78-745 City Hal!~' .Anaheim, California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Councilwoman Kaywood, seconded by Councilman Roth, the City Council finds that this project will have no significant individual or cumulative adverse environmental impact and is, therefore, exempt from the requirement to prepare an EIR. MOTION CARRIED. RESOLUTION: Councilwoman Kaywood expressed her concern that if the waiver were granted and the applicant conducted auctions thereafter, it would create a problem for the City necessitating more staff time and money. As well, the signal assess- ment was a recommendation from the Capital Improvement Committee relative to a 10-year program. If the source of revenue was cut and due to the passage of Proposition 13, there would be no way to gain that revenue elsewhere. Councilwoman Kaywood thereupon offered Resolution No. 78R-381 for adoption, granting Conditional Use Permit No. 1828 as recommended by the City Planning Commission which included the condition of assessment of the traffic signal fee at the commercial rate. Before a vote was taken, Councilman Roth expressed his opposition to the resolution because he considered the differential between $7,000 and $630 too great and the purpose of the Council's recent action in requesting an evaluation of the matter was to correct such disparities. Mayor Seymour agreed with Councilman Roth in that the City hoped to encourage business to locate in Anaheim and had already taken action regarding a restudy of the present policy. In the interim, the Council agreed to listen' to several requests and thus each would have to be approached on an individual basis as they were presented to the Council to provide that equity. Since there was some traffic being generated by the subject use above an industrial use, he was looking for an expression as to what would be fair and reasonable. Councilman Roth suggested an assessment of $2,500; Mayor Seymour agreed. Councilman Overholt agreed with the Mayor in his assessment of the matter; therefore, he would vote against the resolution on the floor, but along the lines suggested by Councilman Roth. Upon questioning by the Mayor, Councilwoman Kaywood stated she would accept the intent of what Councilman Roth offered in her resolution, but she still had problems concerning the matter as previously articulated. A vote was taken on the foregoing resolution as offered with the exception that the traffic signal assessment fee be modified to $2,500. Refer to Resolution Book. RESOLUTION NO. 78R-380: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 1828. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution No. 78R-381 duly passed and adopted. 78-74 6 C~ity Hall~ Anahei~.~. California - COUNCIL MINUTES - June 13, 1978~ 1:30 P.M. 107: PUBLIC HEARING - UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS~ 1976 EDITION: To consider adoption of the Uniform Code for the abatement of Dangerous Buildings, 1976 Edition, as promulgated by the International Conference of Building Officials, with amendments thereto, and adding a new Chapter 15.06 to Title 15 of the Anaheim Municipal Code. Councilman Kott referred to the 17 items contained in the data he received which constituted a dangerous building and remarked that, in his opinion, it did not say very much and he hoped if the items were accepted, those definitions would not be abused. Planning Director Ron Thompson explained that the Dangerous Building Code was an addition to and cumulative with the Uniform Building Code, and it would have to be properly followed. He agreed that although additional ordinances, rules and/or regulations were probably not needed, the Council and Redevelopment Agency had embarked on an ambitious program of redevelopment in the downtown area where they would be dealing with buildings falling into the subject category. The Dangerous Building Code would give the City an additional tool to deal with such matters and place it on more sound legal footing. Mayor Seymour stated he sensed that Councilman Kott's concern, which he'shared, lay in the fact that the Code was written generally and subject to a r~presenta- tive of the City enforcing it. This person's feeling may be contrary to the prop- erty owners feelings or those expressed by a majority of the Council. In the event it was enforced and the property owner felt the City was being unreasonable, he wanted to know if it would be appropriate for the individual to appeal to the City Council and would he have a right to do so. City Attorney Hopkins explained that the Code did provide for an appeal and he thereupon read the applicable sections. The Mayor asked if anyone wished to speak relative to the Uniform Code for the Abatement of Dangerous Buildings, 1976 Edition; there being no response, he closed the public hearing. Councilman Roth offered Ordinance No. 3864 for adoption. Refer to Ordinance Book. ORDINANCE NO. 3864: AN ORDINANCE OF THE CITY OF ANAHEIM ADDING NEW CHAPTER 15.06 TO TITLE 15 OF THE ANAHEIM MUNICIPAL CODE AND ADOPTING BY REFERENCE THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, 1976 EDITION, AS PROMULGATED BY THE INTERNATIONAL CONFERENCE OF BUILDING OFFICIALS, WITH CERTAIN AMENDMENTS THERETO. Roll Call Vote: AYES: NOES: AB SENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Ordinance No. 3864 duly passed and adopted. 78-747 City Ha.l.l.~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 119: PRESENTATION - MISS ANAHEIM - MISS KERI TERRELL: Fran Mauck, Executive Director of the Miss Anaheim Pageant, introduced Miss Keri Terrell, the new Miss Anaheim for 1978, a 4.0 student at Magnolia High School. On behalf of the Council and the citizens of Anaheim, Mayor Seymour presented. Miss Terrell with a bouquet of roses, a replica of the symbolic Big "A" Scoreboard appropriately inscribed, an attache case and 6 paper weights, along with other suitable items as tokens of congratulations. 106/174: PUBLIC HEARING - FEDERAL GENERAL REVENUE SHARING: Proposed Federal General Revenue Sharing budget for the Fiscal Year 1978-79. City Manager Talley stated that relative to the Federal General Revenue Sharing Funds, the Council had designated the entire use of the funds for FY 1978-79, $2,274,000, for the new Anaheim Civic Center. As well, several items had been reprogrammed from the previous year already approved (see memorandum dated June 9, 1978 on file in the City Clerk's Office). Mayor Seymour emphasized that the monies committed to the new city hall were funds that could not be used to offset the effects of Proposition 13. The Federal Government clearly spelled out that those funds shall not be used to carry on current budget activities, but rather used for capital improvement projects only. The Mayor asked if anyone wished to speak relative to the proposed use of Federal General Revenue Sharing monies for FY 1978-79 in accordance with Federal regulations; there being no response, the Mayor closed the public hearing. On motion by Councilwoman Kaywood, seconded by Councilman Kott, the Federal General Revenue Sharing budget for the Fiscal Year 1978-79 was approved. MOTION CARRIED. 106: DISCUSSION - PROPOSED 1978-79 RESOURCE ALLOCATION PLAN (BUDGET): Councilman Roth first expressed his concern that if discussions were started on the Budget, he, as well as the rest of the Council, would be at a loss to know what amount the City would receive from the State of California relative to the disbursement of the approximate $5 billion State surplus under the provisions of Proposition 13. Mayor Seymour agreed that the situation would be vague until a decision was received from Sacramento as to how the citizenry of Anaheim would benefit from the surplus. From the pronouncements received from Governor Brown the prior week, it was clear to him that he intended to redistribute those surplus funds based upon the Legislature's and the Governor's opinion as to ~eed. What he suggested in a meeting of Orange County's State elected officials attended by himself and Councilman Roth, instead of basing the disbursement on need, was the following: a formula using the total of all property tax revenues collected last year in California and from that, determine what percentage of those total revenues each taxing agency had received. For example, if Anaheim collected 2 percent of all property taxes collected, it would be equitable for Anaheim to receive that same 2 percent of the total surplus of funds to be paid back to citizens. He was not certain that Sacramento would consider such a proposal. 78-748 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13, 1978, 1:30 P.M. Mayor Seymour stated that he would prefer to proceed on the City's proposed Resource Allocation Plan as well as with the amendment to the Budget prepared by the City Manager as though no funds at all would be received back from the State. Subsequently, if pass-back funds were received, a list of priorities could be set as to what would be done with those funds. He did not favor delaying discussions on the Budget any longer due to the press of time and was adamant in wanting to proceed on the assumption that no funds would be received and formulating a contingency plan. Councilman Roth explained it was very difficult for him to talk about numbers unless he knew what they were. If Proposition 13 was going to affect the City by $4.9 million as stated in the City Manager's Budget message, his first priority would be to ascertain where additional revenue could be realized. Discussion followed between Councilwoman Kaywood and the Mayor relative to Councilwoman Kaywood's contention that the time they would spend in discussing the Budget might not be necessary due to the chaotic state caused relative to the passage of Proposition 13 and considering that everything was subject to change from one day to the next. Councilman Kott was amenable to proceeding and considered it an opportunity to eliminate approximately $5 million from the Budget with the possibility of also receiving pass-back funds. Councilman Overholt stated that three things were being discussed: (1) whether or not the Mayor or another representative should go to Sacramento and lobby regarding surplus funds as suggested by Councilwoman Kaywood; (2) specific dollar amounts and (3) differences in philosophies not only from a Council standpoint, but also from the public relative to the question of raising addi- tional revenues. The sooner the Council could explore those differences or similarities in philosophies, the sooner they could proceed since time was of the essence. Before proceeding, the City Clerk announced that a communication was received from Mickey Campbell, Chairman of the Community Services Board dated June 12, 1978 relating to the Budget as it pertained to Proposition 13 which had been copied for Council. Mrs. Campbell was in the Chamber audience. City Manager Talley stated that not only the 1978-79 Resource Allocation Plan, but 2 other documents were being presented which the Council should address; the first being recommendations of staff on a proposed alternate plan entitled "Proposition 13 - Tax Limitation Constitutional Amendment Alternative Plan to Proposed 1978-79 Resource Allocation Plan" prepared by the office of the City Manager dated June 8, 1978 (on file in the City Clerk's Office). In that plan, staff recommended revenue adjustments amounting to approximately $2,950,000. Of that amount, $1,400,000 represented an increase in existing revenue sources, $1,550,000 were revenues currently existing or other funds that could be utilized to offset the effect of Proposition 13. If the City was granted a proratio of tax revenues, it would lose approximately $4.9 million, less any offsets received 78-749 qity Hall, Anaheim, California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. from the State. In accordance with Council direction, adjustments were provided- to mitigate the effects of Proposition 13 in the amount of $2,950,000 and in addition, $5 million worth of expenditure reductions were proposed, but not necessarily recommended by the City department heads, and ranked by the department heads. Thus, if all proposals were utilized by the City Council, they would he utilized in the order that the department head felt would least affect services (ranked 1 through 58 listed in Part 2 of the Alternate Plan--"Recommended Reduc- tions to the 1978-79 Resource Allocation Plan"). Also presented was a document from the Parks, Recreation and the Arts Director, "Reduction of Summer Recreation Programs" to be acted upon at today's meeting. In addition to the $4.9 million, there was another $373,200 received by the City from the six school districts through a levy of a special 2-cent per hundred dollars of assessed valuation of property tax. Mr. Talley believed that tax to have been eliminated by the passage of Proposition 13. Therefore, the City services funded by the $373,200 either would have to be removed or the Council would have to find an alternate revenue source for those programs. Personnel for the summer recreation program were due to report on Monday, June 19, 1978, and unless given other direction, staff's recommendation was to notify those personnel not to report and to cancel the program. Mr. Talley also requested Council direction relative to the treatment of Depart- ment of Labor CETA Funds. The City was currently operating under r~gulations which he believed could be modified that would reduce at least in half the number of layoffs the City would sustain by merely changing administrative procedures, and it would be of assistance if Council would direct staff to expend every effort to modify those regulations. He elaborated further giving a specific example where such modification would preclude layoffs of CETA employees, not because it would save money, but because of a technicality in the existing regulation. As well, he also requested direction that would allow pursuit with other cities for a relaxation of the regulation. The easiest way was to have the Federal Government recognize that whatever budget the cities approved as of July 1, 1978 represented a new base on which to make judgments in the future. Councilwoman Kaywood requested first to hear from Mr. James Ruth relative to the summer recreation program. Mr. James Ruth, Director of Parks, Recreation and the Arts Department, first stated that they had an excellent working relationship for many years with the six school districts servicing Anaheim. However, the 2-cent tax levied by the school district would be eliminated as the result of Proposition 13. Thus, if the $373,200 which accounted for one-third of the City's funding for the recrea- tion program was eliminated, they would have to close 27 playgrounds, 8 parks and 4 swimming pools and the 128 employees hired for the summer program would have to be terminated. The summer program represented approximately $200,000 or 50 to 60 percent of the total contributions made by the School District and would have a severe impact on the program. To compound the problem, it was his understanding that no summer school program would be offered, generating increased attendance at City parks and causing a significant problem. Since the revenue loss was not to be replaced in their budget, there was no alternative but to curtail the program. 78-750 ~ity Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Mrs. Pat Clancy, 303 North Bush, stated that the surmner program was a vital one and needed to remain in existence. She thereupon recommended that in order for it to remain, that parents pay for the program, which she believed they would be willing to do. In answer to a member of the public, Mr. Fred Brown, Mr. Ruth confirmed that they did not plan to shut down the Pearson Park pool because it was the most heavily used. As well, the monies allocated towards the building of the new Pearson Park pool, $300,000 plus, came from outside funding sources and no General Fund dollars were involved. Thus, the building of the pool would not be affected and would proceed. The Mayor then solicited input from the public relative to the 1978-79 Resource Allocation Plan (Budget). Mrs. Mildred Campbell, Chairman of the Community Services Board, referred to her memorandum dated June 12, 1978, already submitted and stated that all she had to add was that without human services, Anaheim would be a City without a heart. The services rendered by the Community Services Board must be continued, and she urged the Council to give her recommendations careful and complete consideration. Mr. Fred Brown, 1531 Minerva, first questioned the increase in the Budget to $211 million from $140 million the previous year and wanted to know if there was an increase in services for the additional $60 million. Mr. Talley stated that the majority of change was in additional capital outlay and the single greatest area was the $40 million budgeted for electrical genera- tion, the second largest for power purchases and the third, the effect of two years worth of salary negotiations. There was also a minor change in services and there were no more than two additional employees. Mr. Brown then posed the following questions or made further pertinent comments relative to the alternate plan to the 1978-79 Resource Allocation Plan which questions or comments were answered by Mr. Talley: 1. Part 1--A~ustments to Revenue--Page 1-C--increase in existing tax base, increase of transient tax from 6 percent to 8 percent - additional revenue, $1 million. He wanted to know what prompted the City to pursue that increase. Mr. Talley explained that the major impetus was due to the fact that staff be- lieved until Proposition 13 was fully litigated, it would be extremely difficult to change any revenue amounts for the next year or more. Further, staff also received good direction from the Council that no new substantial revenue sources were to be recommended. Therefore, their recommendations were in two areas (1) business licenses and (2) the room tax; the latter being collected by local businesses, but paid for by out of town visitors, one-sixth going to the Visitors and Convention Bureau. The real competition in the State, San Diego, Los Angeles and San Francisco, each had a room tax of 7 or 8 percent. It was felt that an increase would enhance the City's position by allocating another $200,000 to the Visitor and Convention Bureau and generate $1 million which could legitimately mitigate 20 percent of the effect of Proposition 13 without having any impact on homeowners in Anaheim. 78-75 1 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 2. Page 3-F - Transfer from Workers' Compensation Self Insurance Fund - additional revenue, $400,000. From his knowledge of the insurance industry, Mr. Brown noted that recent comments from an insurance management team indi- cated that no self-insured private industry could flexibly move around amounts of money for workers' compensation, but at least a 5-year formula was involved before being able to take any money out of such a fund in order to move it some- place else. Mr. Talley stated that the City had investigated the matter. Anaheim had not been self-insured for 5 years and although it did not have a long historical tracking record, it did have one on accident severity. He explained that during the last audit there was a spirited discussion as to what the City's reserves might be and as a result, $483,000 was transferred into that fund with the appointment of a new Risk Manager. The Risk Manager believed he could at least arrest the increase, severity and frequency and recommend on a one-year basis that the reserves the City could contemplate having by the end of 1978-79 could be $400,000. 3. Mr. Brown noted the reduction of approximately $300,000 relative to the library and library services and questioned whether or not the City's libraries would be opened in the coming year. Mr. Talley explained that the reception he had been receiving by either the Council or the electorate was that safety services should be reduced the last, if at all, and thus ranked at the bottom of the priority list to be cut and secondly, property related services should be funded from property sources. Therefore, non-property related services would be placed at the beginning of the list of items to be cut. Those departments not involved in property re- lated services funded from the General Fund were most liable to be reduced such being the Parks, Recreation and the Arts, Library and to some extent Public Works. He took full responsibility relative to the rank given the library items, but emphasized that the closing of libraries was not contemplated unless one branch was closed totally. It would give the Library Director the option of keeping all three branches open only 4 days a week instead of 6 or closing one and leaving two open at the current diminished level of service. He commented however that Mr. Brown was correct in concluding that there would be'a substan- tial change in the quality and level of library service. 4. Part 2 - Recommended Reductions to the 1978/79 Resource Allocation Plan - Item 23 - Cut of $51~000~ Library Administration and Publih Service Contracts ($12,000 in architectural contracts) Mr. Brown read an excerpt from the Para- graph under Impact, .priority ranking number 23 and noted that the audio visual program, including phono records, cassettes and film, would be.deleted, but those items did not necessarily involve personnel. He did not believe that to be a necessary item to cut. He also questioned why it was necessary to redesign the library. Mr. Talley pointed out that they were recommending that the $12,000 in architectural contracts be eliminated, however when the main library was built 15 years prior, it served a much smaller community and the total work load and service provided by the main library required adjustments. He believed it to be a compliment to the original architect that it could be redesigned at minimal cost and commented further that an ongoing objective was to build as much flexibility into every 78-7~2 City Hall~ Anaheim, California - COUNCIL MINUTES - June 13, 1978, 1:30 P.M. public building as possible, but every 15 or 20 years modifications were necessary and not unusual. Relative to the $19,000 in materials under the audio visual program, the recommendation was merely that the collection not be enriched as in a normal budget year, rather than calling for a reduction in that program. In concluding, Mr. Brown recommended that in years to come it would be more feasible to start on the budgetary process earlier than the month of June since it was a very involved process. Although he conceded that this year's budget was subject to a unique situation, considering Proposition 13, the short period of time afforded for public input and Council consideration was not nearly enough for a $211 million budget. Mayor Seymour assured Mr. Brown that although public discussion was limited, he had spent approximately 30 hours evaluating the budget thus far. He considered Mr. Brown's suggestion to be an excellent one relative to being provided with more time for the budgetary process before its adoption on June 30th of each year. He outlined the present requirements in the City Charter regarding sub- mittal of the budget and the time period allowed for receiving public testimony and suggested that the subject be one of consideration for the Charter Review Committee so that the Council could receive the budget by May 1 with public hearings beginning in June. Mr. Bill Lane, 517 South Hilda Court, stated he was concerned with savings and one of the items the public wanted in the passage of Proposition 13 was to have the "fat" cut from government spending. The heaviest costs were at the top and he suggested that that aspect be considered. He was concerned over any reduction of policemen and firemen and the possibility that in cutting the Fire Department the cost of fire insurance would increase for homeowners in the City. He did not want to end up paying the same tax again, but this time to a private corporation. Mr. Lane continued that relative to the Police, considering the negotiations underway to bring the Rams to Anaheim, that action would bring an increase in people and businesses in the City. He stated that many police officers were concerned that they could not provide sufficient capability with such increases with a simultaneous decrease in police. The City had approximately 10 million visitors yearly, a population of 204,000, and less than 300 police officers. In concluding, Mr. Lane remarked on the visitors who came to Anaheim from all over the country and questioned whether the 6 percent bed tax was enough to cover the =ost of the services provided those visitors by the City. There being no further public testimony offered, the Mayor asked ~or input from the Council relative to the proposed budget. Councilwoman Kaywood stated from what she had seen and heard, there were very few areas she would like to see cut. She did not want to see anybody lose their job or see the level of services decrease to where the ultimate ramifica- tions of such action would actually cost more with less service and having a less desirable city in which to live. She maintained that it was necessary to look for additional revenues and the room tax previously broached was the most intelligent approach for the following reasons: if the City were to freeze City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13, 1978~ 1:30 P.M. 78-753 itself into remaining at 6 percent, it would ultimately be the lowest not only for California, but also nationwide; other cities were collecting as much as 10 percent. It was a tax already being collected, thus it would not require initiating anything new, but merely a matter of changing the amount to be collected. She had heard no objection to it by those who would be doing the collecting, the hotel/motel owners. The City presently had the best stadium and convention center in the country, but there was a great deal of competition close by as evidenced by the entry of Long Beach into the convention center business, as well as the addition of two large theatres, and with the City being in close proximity to Los Angeles, as well. Anaheim would need more money to attract more and more conventions and trade shows. She maintained it was a very necessary step for the City to take and she would approve of an increase in the room tax even without the passage of Proposition 13. Councilman Kott thereupon submitted a prepared statement containing his proposed recommendations for project reductions for the 1978/79 Fiscal Year conforming to the Proposition 13 mandate which formulated a $5 million reduction in the budget. He thereupon read the statement listing 8 areas wherein cuts were recom- mended amounting specifically to $5,326,575 (full text of statement dated June 13, 1978 addressed to the Mayor and fellow Council Members on file in the .City Clerk's Office). 1. Bud..get - Page B-23: Eliminate "sponge action" of incoming reven~e in the amount of $3,121,146 as an "Equipment Rental Charge." Charge back from Mechanical Maintenance, $1,307,781. Difference of $1,813,365 can be eliminated. 2. Page B-24: Eliminate the "sponge action" of incoming revenue in the amount of $2,136,090 as a "facility rental charge." 3. Page C-1 - Item 32: Re: City Administration - recommend cut in that department of 25 percent or $54,250. Eliminate Intergovernmental Relations, $153,621. Eliminate Public Information Office, $95,179. Eliminate Technology Application, $52,793. Recommend cut of 25 percent or $34,500 in Program Development and Audit. Total savings in City Administration - $390,343. 4. Pa~e C-1 - Item 35: Personnel Administration - cut 25 percent of'$72,623 for an amount of $18,150. 5. Page C-3 - Item 48: Library - cut overall budget approximately 5 percent of $2,703,419 for an amount of $135,000. 6. Page C-3 - Item 54: Eliminate "Emergency Preparedness" - save $63,960. 7. Page C-5 - Item 70: Recreation and Arts: Eliminate "NaturE", save $52,106; eliminate "Sports and Teens", save $288,988; eliminate co-recreation, save $125,394; eliminate Arts and Special Activities, save $113,179. 8. Page C-6 - Item 76: Data Processing. Total budget equals $1,826,839. On page B-23, total revenue equals $2,069,557. Service charges to various depart- ments equals $771,793. Recommend overall cut in the entire Data Processing area of 25 percent of $771,793 for an amount of $190,000. 78-754 City Hall~ Anaheim, California - COUNCIL MINUTES - June 13, 1978~ 1:30 P.M. Mr. Talley first pointed out that 75 percent of the recommendations made, approximately $3.9 million would result in laying off 100 employees and completely closing down every City building. Item 1 and 2 of Councilman Kott's recommendations representing cuts of approximately $1.8 million and $2.1 million, respectively, were Intergovernmental Service Funds (IGS) re- moved from the individual budgets and now put in one place. In essence, by cutting those from the Budget, it would shut down 60 percent of the City's vehicles and requiring laying off the entire Property Maintenance Division. As an example, he explained that all City equipment was maintained out of that fund (Equipment Rental Charge) all gasoline and new equipment. It was projected at year's end that there would be an approximate $94,000 balance. For everything over $94,000, they would either not purchase a piece of equip- ment, lay someone off, not buy gasoline or the like. The Mayor stated that as he understood it, Councilman Kott was suggesting there was a difference of $1.8 million, when in reality it was only $94,000; Mr. Talley stated that was correct. RECESS: By general consent, the Council recessed for 5 minutes. (5:10 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (5:15 p.m.) Upon questioning by Mayor Seymour, Mr. Talley explained and elaborated in detail upon the Equipment Rental Charges (Page C-141) and Intergovernmental Service Fund for Mechanical Maintenance which fund was set up the prior year. Under the projected budget for the coming year, staff was recommending a transfer in equipment rental charges of $3.1 million. He also explained the make-up of figures relative to sale of equipment, grant-manpower, and retained earnings and answered additional questions posed by Mayor Seymour for clarification purposes relative to those figures. Mayor Seymour stated he was trying to ascertain whether or not Councilman Kott's approach and recommendation was a reasonable one and was of the opinion that on that particular item it was reasonable considering the two-thirds increase of capital outlay in vehicles. Mr. Talley noted that Councilman Kott recommended the elimination of the "sponge action" in essence saying that the charge back was nearly 100 percent. He then confirmed for Councilman Kott that the $3,124,146 (Page C-141) Equipment Rental Charges included the cost that should be charged to the department for operating the equipment. It was not a paper entry as suggested by Councilman Kott, but the money actually existed and the department paid rental to Mr. Merriam, Mechan- ical Maintenance Superintendent, who in turn spent it for gasoline, buying new equipment, salaries, vacations, etc. Councilman Kott contended that equipment rental charges did not mean salaries or vacation pay as far as he was concerned. Mr. Talley pointed out that each budget was set up to reflect both expenditures and the source of the money to cover those expenditures. That money came from equipment rental charges amongst other areas and it may be spent for labor, other operating, capital outlay in the General Fund and capital outlay in vehicles as listed at the top of Page C-141. Councilman Kott was citing a revenue amount 78-755 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. on Page B-23 which was a charge made to the departments which came in as a revenue to that fund. The revenue of $2,136,090 paid for all salaries for the people who maintained City buildings. He questioned the increase of al- most 100 percent in Other Operating expenses under Mechanical Maintenance from 1976-77 ($118,413) to the present proposed budget ($1,307,781). Mr. Talley explained that two years prior, all costs were kept in department accounts and not maintained with any type of uniformity. Thus, they now tried to capture those in one area. The central garage, Mr. Merriam's opera- tion, required $1,033,090 for salaries for approximately 40 employees; $1.3 million for supplies, gasoline, oil and other contracts to fund the City fleet, and staff was recommending an expenditure of $1.4 million in capital outlay for vehicles giving a total outlay of $3,746,000. $3.121 million was received from departments as charges, $79,000 from the sale of equipment, $90,000 from Mr. Hepburn (Manpower) with $456,000 coming out of retained earnings in order to catch up on equipment purchases. Councilman Kott concluded that there was no way to arrive at an accurate assess- ment with the kind of budget presented. The information at best was difficult to obtain and in order to understand what Mr. Talley was trying to achieve, he should have provided a line item budget. Mr. Talley stated he would provide the line item budget to Councilman Kott, as well as the other Council Members. Councilman Kott then referred to a document dated June 17, 1977 showing all City vehicles in operation which were being driven home at night and requested an update of the list, reasons the cars were leaving the work area and being driven home and an approximation of the related cost. Councilman Overholt stated that today it was important for the Council Members to reveal their philosophies relative to the meaning of the Jarvis Initiative. He did not support the initiative, but it meant to him that the taxpayers who pay property taxes were revolting against the endless acceleration and escalation of those property taxes to the point that they were becoming confiscatory. The opportunity represented an indictment of Sacramento for not delivering relief to the property taxpayer although they had ample opportunity to do so over a long period of time. He was not opposed to looking at the revenue portions of the City Manager's recommendations or anyone else's. His concern relative to the possibility of increasing the room tax revolved around the fact that if they were going to preserve the opportunity to ever act on the matter, they would have to do so bY June 20, 1978. That was his statement of philosophy. Councilman Overholt also stated that he was also very concerned about cuts in the Recreation Program and hoped that that issue could be addressed before the meeting's end. Councilman Roth stated that although everyone wanted taxes reduced, no one wanted to have services reduced or see anybody laid off. He had received many phone calls from citizens and each had their own axe to grind. They did not want any reductions in their "pet" items, but instead wanted others reduced. He had suggested a plan for a reduction of $5 million in the budget as published in the Anaheim Bulletin. However, before he could become involved in cutting anything, he wanted to know how much revenue the City would have to work with. 78-7~.6 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. A recommendation he did make was to have the employee groups meet with manage- ment to discuss the possibility of reopening negotiations and those employees making over $20,000 a year take a 5 percent voluntary pay reduction. The ra- tionale he used was based on the presumption that most City employees owned their own homes and the effects of Proposition 13 would mean an average monthly reduction in mortgage payments of, for example, $40. Thus, if an employee had to give up $1,000 a year reduction in pay and his house payments were $40 a month less, he would be receiving back approximately 50 percent of the pay reduction and, as well, an additional $1.5 million would then be avail- able to apply to budget cuts. He was certain that employee groups were interested in the welfare of their fellow employees and this recommendation would give them an opportunity to act and possibly save some jobs. Although he realized that long-term fixed negotiations with employee groups were in effect, he was interested in hearing from representatives of those groups who might be in the Chamber audience regarding his suggestion. Mayor Seymour reiterated his inability to make sense out of the proposed budget document. As well, if the Council, public, and Chamber of Commerce researched it, it was his opinion that they were going to reach the same conclusions--it was an impossible document to understand. Although he did not have a specific Council proposal, he had a plan that was a general approach in setting priorities as to how to achieve or meet imposed reductions of $4.9 million loss in revenues without immediately confronting the situation as to how much money wouid be re- ceived from Sacramento. Moving on that assumption, he offered the following 5-step proposal for consideration: in order to set an attitudinal approach, he believed it would be extremely important that the top management positions in the City, department head levels, as well as the Council, move forward on a positive note and declare what they were willing to do before asking others the same. 1. A 10 percent pay cut in all Council salaries in order to set the tone in leadership in subsequently asking the department heads and the City Manager to also take a 10 percent pay cut. 2. A freeze on ali new positions. 3. Eliminate "fat" wherever possible. He was inclined to go along with the suggestions Councilman Kott made relative to elimination of fat in administra- tive areas, specifically he wanted to see some good cuts in the City Manager's Department and in Budget, Finance, Data Processing and Personnel. He also agreed with Councilman Kott that the City could do without the Intergovernmental Relations Office and also the Public Information Office at least for a while. 4. A freeze on what he interpreted to be low priority capital improvements such as new construction or a move towards construction, architectural fees for the new Canyon Branch Library, the building of a Police Substation in the Canyon and the like, and perhaps a reduction in the number of City vehicles. 78-757 City Hall.~ Anaheim~ California - COUNCIL MINUTES - June 13, 1978, 1:30 P.M. 5. Ask employee associations to discuss the recommended cuts with the City Manager and himself if need be; the essence being that the City had done what it could to tighten its belt, but it was now still faced with the question of layoffs or doing something else. He suggested reopening negotiations on con- tracts already signed. The bottom line being to ask the employee associations to forego the 6 percent wage increase scheduled for September/October and to put it off or a portion thereof until everything settled. He promised if the employee associations were willing to work on that basis, whatever replacement revenues the City received, the first priority would be to reinstate pay raises already agreed to. He thereupon directed the City Manager, for the Council, to develop numbers along the lines of his five suggested cuts. Mayor Seymour further stated that any increase in revenues was in diametric opposition to his interpretation of what the voters meant when they voted 70 percent to 30 percent for Proposition 13. It was clear that all taxpayers were saying they had enough taxes of any kind. He, for one, had his feet in concrete relative to consideration of any increased revenues by raising fees. It was not necessary to raise the percentage on fees to get increased--that is, raising the bed tax from 6 percent to 7 or 8 percent because the fees increased automatically through inflation. Mayor Seymour also asked Council consideration relative to the Utilities Depart- ment whose budget represented a huge portion of the total City budget. He had personally spoken with a majority of the Public Utilities Board who admitted privately that they did not understand the budget and they were placed in a time capsule of pressure and in such a position where they felt a great responsi- bility to "rubber stamp" the Utility budget and send it to the Council for approval. He wanted them to have a second look at that budget and recommended sending it back to them with a message that they scrutinize it, understand it and then tell the Council if they would be able to stand the gaff of having the working capital reduced by $500,000 as recommended by the City Manager and not come back to the City Council or rate payers to make that amount up elsewhere. Relative to the reduction of the summer recreation program, Mayor Seymour stated he did not want to eliminate that. It was obvious that the school districts were saying that they would not supply any money for the program. He considered the suggestion from a citizen earlier in the meeting to be an excellent one-- perhaps offer one-half of the summer recreation program as proposed, but charge fees for that program. He thereupon asked Mr. Ruth to reevaluate the situation and come back with a. proposal offering a scaled down summer program for the youth of the community that would pay for itself. He believed.that the community would address itself to that approach in a positive fashion. Discussion followed between the Mayor and Councilwoman Kaywood relative to the matter, at the conclusion of which, Mr. Ruth answered some of the concerns raised. He explained that his department generated $331,000 a year in user fees and many of their programs and activities were self-sustaining with another large percentage of those programs at least partially self-sustaining. He had a portfolio of ideas from his staff of the kinds of services that might be assessed and which could be self-sustaining. Not knowing what the Council's philosophy and attitude was going to be, it was the best thinking of staff to date. His department could crystalize those suggestions and come back to Council with a modified program. The classes 78-758 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. did not present a problem because they were self-sustaining just as the swim programs, but the problem arose in drop-in type activities at City parks requiring maintenance and services and where it was not possible to charge. A discussion of Council salaries then ensued wherein City Attorney Hopkins stated that since the salaries were set by the City Charter, the only way reduction could be accomplished would be through voluntary turn-back by the Council person. Mayor Seymour offered to return 10 percent of the salary he received; Councilman Kott offered the same. Councilman Overholt offered to turn back 100 percent of his salary because it was not worth the $400 a month ($500 including meeting attendance) to him to have the City in trouble. In his 9 years of elective office on the School Board, he took the same position. Councilman Overholt stated that he was going to raise the issue of the room tax again at the next meeting since it would be the last opportunity to do so. Upon questioning, City Attorney Hopkins explained that the Jarvis-Gann Initiative required a two-thirds vote for any special taxes passed after July 1, 1978, but the question of what was special was still somewhat uncertain. However, statements made by Jarvis-Gann people indicated it would be any tax other than ad valorem. It was his opinion therefore that any change in a room tax should be enacted before July 1, 1978. If the City did not move on the matter at the next meeting, it would be subject to challenge thereafter. In concluding, Mayor Seymour stated that along with the line item budget already requested, that the entire Council be provided with work papers on Proposition 13 Alternate Plan. (Public hearing on the proposed 1978-79 budget will be held June 20, 1978.) 148: REQUEST FOR REPRESENTATION ON TRANSPORTATION COMMITTEE OF THE ORANGE COUNTY SENIOR CITIZENS: (Continued from the meetings of May 23, 30 and June 6, 1978) On motion by Councilman Seymour, seconded by Councilwoman Kaywood, request by the Transportation Committee of the Orange County Senior Citizens Council for City representation on their committee, was continued to July 11, 1978. MOTION CARRIED. 148: REPRESENTATION TO ORANGE COUNTY SANITATION DISTRICT NOS. 2 AND 3: On motion by Councilman Seymour, seconded by Councilman Roth, consideration of representation to Orange County Sanitation District Nos. 2 and 3 was removed from the agenda. MOTION CARRIED. 124: REJECTION OF BIDS - CONVENTION CENTER EAST PARKING LOT MODIFICATIONS: (Account No. 38-4855-985-20-0893) Councilman Kott offered Resolution No. 78R-382 for adoption, rejecting all bids on the subject improvement as recom- mended in memorandum dated June 7, 1978, from the City Engineer. Refer to Resolution Book. RESOLUTION NO. 78R-382: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REJECTING ALL BIDS RECEIVED UP TO THE HOUR OF 2:00 P.M. ON MAY 11, 1978, FOR THE CONVENTION CENTER EAST PARKING LOT MODIFICATIONS, ACCOUNT NO. 38-4855-985- 20-0893. 78-759 City Ha~l.~ ,Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution No. 78R-382 duly passed and adopted. 160: PURCHASE OF EQUIPMENT - 1000 FEET OF 15KV SHIELDED XLP CABLE FOR KATEL?.A SUBSTATION - BID NO. 3426: (Account No. 32-1701) On motion by Councilman Kott, seconded by Councilman Roth, the low bid of Graybar Electric Company was accepted and purchase authorized in the amount of $10,409.20, including tax, as recommended by the Purchasing Agent in his memorandum dated June 7, 1978. MOTION CARRIED. CONSENT CALENDAR ITEMS: On motion by Councilman Overholt, seconded by Councilman Seymour, 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. CORRESPONDENCE: The following correspondence was ordered received and filed: a. 175: Federal Energy Regulatory Commission, Southern California.Edison Company, Docket No. ER76-205, Initial Decision on Application for Rate Increase (June 1, 1978). b. 175: Before the PUC, Application No. 58045 of J. J. Warfield, dba Sunday Buslines, for a certificate of public convenience and necessity to operate passenger stage service between the Southern California Edison Nuclear Generating Station at San Onofre, California, on the one hand, and various points in Riverside and Orange Counties, on the other hand. c. 105: Community Redevelopment Commission - Minutes of May 24, 1978. d. 105: HACMAC - Minutes of May 16 and 23, 1978. e. 105: Public Utilities Board - Minutes of May 4, 1978. f. 105: Park and Recreation Commission - Minutes of December 6, 1977, January 25, February 8 and 22, March 22, and April 26, 1978. g. 175: Monthly report for March 1978 - Utilities Field Division. h. 107: Monthly report for May 1978 - Building Division. 2. 108: ENTERTAINMENT AND PUBLIC DANCE PERMITS: The following permits were approved in accordance with the recommendations of the Chief of Police: a. Application for an Entertainment Permit for entertainment on Wednesday through Sunday, from 6:00 p.m. to 2:00 a.m. at the Cascades Restaurant, 2125 South Harbor. Boulevard. (applicant, Louis George Shelby) b. Application for a Public Dance Permit for Sociedad Progresista Mexicana, Inc., Lodge No. 33, for a dance to be held June 25, 1978, from 3:00 p.m. to 7:00 p.m., at the Carpenter's Hall, 608 West Vermont Avenue. (applicant, Concha C. Flores) 78-760 ~ity HDll~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. c. Application for a Public Dance Permit for the Anaheim Atoms Girls Track and Field Club to hold a dance at the Brookhurst Community Center, Brookhurst Park, on June 23, 1978, from 8:00 p.m. to 12:00 midnight. (applicant, Albert C. Rodriguez) MOTION CARRIED. 105: VACANCIES ON GOLF COURSE ADVISORY COMMISSION: Councilman Roth noted that the Commission's minutes of May 18, 1978 indicated that there were two vacancies on the Commission and it was the Council's responsibility to fill those positions. The Mayor stated he had just become aware of those vacancies and did have a couple of nominees to be considered that were representative of the Anaheim Hills Golf Course since that was where representation was missing. Councilman Roth recommended that the matter be continued for two weeks at which time the two vacancies could be filled. On motion by Councilman Roth, seconded by Councilwoman Kaywood, appointments to fill the two vacancies presently exisiting on the Golf Course Advisory Commission was continued for two weeks. MOTION CARRIED. The City Clerk also confirmed that the vacancies had been previously advertised. 123: GOLF DRIVING RANGE AT THE H. G. "DAD" MILLER ANAHEIM MUNICIPAL GOLF COURSE - CHANGE ORDER NO. 1: Authorization for Change Order No. 1, in the amount of $20,000, Skyline Construction Company, Inc., Contractor. Mr. Tom Liegler answered a question posed by Councilman Kott on the subject for clarification purposes after which Councilman Roth moved to approve Change Order No. 1, bringing the original contract price to $171,092, as recommended by the City Engineer. Councilwoman Kaywood seconded the motion. MOTION CARRIED. CONSENT CALENDAR ITEMS: Councilman Roth offered Resolution Nos. 78R-383 through 78R-385, 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. 158: RESOLUTION NO. 78R-383: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS AND ORDERING THEIR RECORDATION. (Lakeview Plaza Investment Co., Ltd.; Douglas B. Browne; Conrad J. Letter, et ux.; W. G. Sommerville; Michael E. Buchanan, et ux.; Isalene B. Pickle, et al.; Stephen F. Huetter; Edith E. Flint; Donald J. Stolo, et ux.; Aubrey D. Warren, et ux.; William A. Erickson, et ux.; Gordon Builders, Inc.; Albert N. Bahu, et ux.; Pibul Ratanavaraha, et ux.; Anamco Inc.; Gene Noonan; Dayne E. Wells, et ux.; Gordon Builders, Inc.) 150: RESOLUTION NO. 78R-384: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTING THE COMPLETION AND THE FURNISHING OF ALL PLANT, LABOR, SERVICES, MATERIALS AND EQUIPMENT AND ALL UTILITIES AND TRANSPORTATION INCLUDING POWER, FUEL AND WATER, AND THE PERFORMANCE OF ALL WORK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVEMENT, TO WIT: PEARSON PARK SEATING IMPROVEMENT, PHASE II, IN THE CITY OF ANAHEIM, PROGRAM NO. 806-18, ACCOUNT NO. 16-4309-806-18-0000. (Herk Edwards, Inc.) 78-761 City. Hall~. Anaheim, California - COUNCIL MINUTES - June 13~ 1978, 1:30 P.M. 169: RESOLUTION NO. 78R-385: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTING THE COMPLETION AND THE FURNISHING OF ALL PLANT, LABOR, SERVICES, MATERIALS AND EQUIPMENT AND ALL UTILITIES AND TRANSPORTATION INCLUDING POWER, FUEL AND WATER, AND THE PERFORMANCE OF ALL WORK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVEMENT, TO WIT: FAIRMONT BOULEVARD LANDSCAPING IMPROVEMENT, N/O SANTA ANA CANYON ROAD, IN THE CITY OF ANAHEIM, A.H.F.P. NO. 837, PROJECT NO. 13-4309-741-16-0000. (Kaz Hanano Landscape, Inc.) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Resolution Nos. 78R-383 through 78R-385, both inclusive, duly passed and adopted. CITY PLANNING COMMISSION ITEMS: The following actions taken by the City Planning Commission at their meeting held May 22, 1978, pertaining to the following applications, as listed on the Consent Calendar, were submitted for City Council information. 1. RECLASSIFICATION NO. 77-78-59: Submitted by Maurice Pinto, for °a change in zone from RS-7200 to CL on property located at 410 West Vermont Street. The City Planning Commission, pursuant to Resolution No. PC78-105, granted Reclassification No. 77-78-59 and granted negative declaration status. 2. VARIANCE NO. 3012: Submitted by Jerome A. Stewart, et al., to construct an industrial building on proposed ML zoned property located at 1180 North Tustin Avenue with certain code waivers. The City Planning Commission, pursuant to Resolution No. PC78-106, granted Variance No. 3012 and granted negative declaration status. 3. CONDITIONAL USE PERMIT NO. 1755 (READV.): Submitted by Kenneth D. and Louie B. Clausen, to permit massage for women and men in an existing figure salon on CL zoned property located at 2060 West Lincoln Avenue. The City Planning Commission, pursuant to Resolution No. PC78-108, granted Conditional Use Permit No. 1755 (Readv.) and ratified the Planning Director's categorical exemption determination. 4. CONDITIONAL USE PERMIT NO. 1833: Submitted by the Conservative Baptist Association of Southern California to permit an expansion of church offices on RS-A-43,000 zoned property located at 2528 West La Palma Avenue with cer- tain code waivers. The City Planning Commission, pursuant to Resolution No. PC78-109, granted Conditional Use Permit No. 1833 and granted negative declaration status. 78-7~32 City Hall~ Anaheim, California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 5. CONDITIONAL USE PERMIT NO. 1835: Submitted by J. P. Edmondson Properties, Ltd., to permit an automobile rental agency in an existing service station on RS-A-43,000 zoned property located at 1402 South Harbor Boulevard. The City Planning Commission, pursuant to Resolution No. PC78-110, granted Conditional Use Permit No. 1835 and ratified the Planning Director's categorical exemption determination. 6. CONDITIONAL USE PERMIT NO. 1836: Submitted by William H. Remland, et al., to permit a drive-through donut shop on CL zoned property located at 528 South Beach Boulevard with code waiver of minimum number of parking spaces. The City Planning Commission, pursuant to Resolution No. PC78-111, granted Conditional Use Permit No. 1836 and ratified the Planning Director's categorical exemption determination. 7. CONDITIONAL USE PERMIT NO. 1837: Submitted by Dale E. and Sarah Ann Fowler, to permit an automobile repair and restoration service facility on ML zoned property located at 1061 Shepard Street, Unit H. The City Planning Commission, pursuant to Resolution No. PC78-112, granted Conditional Use Permit No. 1837 and ratified the Planning Director's categorical exemption determination. 8. CONDITIONAL USE PERMIT NO. 1838: Submitted by Ball Road 863, Ltd., to permit a tent camp facility in an existing recreational vehicle park on CL zoned property at 333 and 475 West Ball Road. The City Planning Commission, pursuant to Resolution No. PC78-113, granted Conditional Use Permit No. 1838 and ratified the Planning Director's categorical exemption determination. 9. GENERAL PLAN AMENDMENT NO. 147: Request for initiation of land use evaluation for General Plan study. II. III. IV. Southwest corner of Ninth Street and Katella Avenue, encompassing 3.23 acres. Area south of Miraloma Way between the Riverside and Orange Freeways interchange, encompassing approximately 12 acres. Area encompassing approximately 40 acres south of the Riverside Freeway, north of the Santa Ana River, west of Tustin Avenue, and east of the flood control channel in the vicinity of Glassell Street. Northwest corner of Orangethorpe Avenue and Imperial Highway, encompas- sing approximately 4 acres. The City Planning Commission set July 17, 1978 for a public hearing. 10. VARIANCE NO. 2696 - EXTENSION OF TIME: Request submitted by Cara Von Surplus Building Materials, for an extension of time to Variance No. 2696 pertaining to the retail sale and outdoor storage of building materials on ML zoned property located at 517-519 East Katella Avenue. The City Planning Commission granted a one year extension of time to Variance No. 2696 to expire May 28, 1979. 78-763 City H. all, .A~..aheim~ California - COUNCIL MINUTES - June 13, 1978~ 1:30 P.M. No action was taken on the foregoing items, thus the actions of the City Planning Commission became final. CONDITIONAL USE PERMIT NO. 1574 - REVISED PLANS: Submitted by Matreyek Homes, Inc., requesting approval of revised plans for Conditional Use Permit No. 1574, to exclude a laundry room in the construction of a 263-unit mobile home park ' with various code waivers on property located south of the Riverside Freeway, north of Medical Center Drive, and west of Euclid Street. On motion by Councilwoman Kaywood, seconded by Councilman Roth, revised plans for Conditional Use Permit No. 1574 were approved, as recommended by the Planning Commission. MOTION CARRIED. 170: FINAL MAP - TRACT NO. 10106: Developer, Fredericks Development of Santa Ana; tract located south of Nohl Ranch Road, east of Imperial Highway containing 2 RM-4000 proposed zoned lots. On motion by Councilman Roth, seconded by Councilman Overholt, the proposed sub- division, together with its design and improvement, was found to be consistent with the City's General Plan, and the City Council approved Final Map, Tract No. 10106, as recommended by the City Engineer in his memorandum dated June 7, 1978. MOTION CARRIED. ORDINANCE NO. 3869: Councilman Seymour offered Ordinance No. 3869 for adoption. Refer to Ordinance Book. ORDINANCE NO. 3869: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (67-68-68(3), RM-1200) Roll Call Vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour None None The Mayor declared Ordinance No. 3869 duly passed and adopted. ORDINANCE NOS. 3870 THROUGH 3872: Councilman Roth offered Ordinance Nos. 3870 through 3872, both inclusive, for adoption. Refer to Ordinance Book. ORDINANCE NO. 3870: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (73-74-55(7), CL) ORDINANCE NO. 3871: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (76-77-60, CL) ORDINANCE NO. 3872: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (77-78-39, RM-1200) Roll Call Vote: AYES: COUNCIL MEMBERS: Overholt, Kaywood, Kott, Roth and Seymour NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None The Mayor declared Ordinance Nos. 3970 through 3872, both inclusive, duly passed and adopted. 78-764 City Hall, Anaheim, California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. ORDINANCE NOS. 3873 THROUGH 3876: Councilman Seymour offered Ordinance Nos. 3873 through 3876, both inclusive, for first reading. 149: ORDINANCE NO. 3873: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 14, CHAPTER 14.32, SECTION 14.32.190, SUBSECTION .690 OF THE ANAHEIM MUNICIPAL CODE' RELATING TO PARKING RESTRICTIONS. (No parking on portions of Broadway) 170: ORDINANCE NO. 3974: AN ORDINANCE OF THE CITY OF ANAHEIM REPEALING SECTION 17.08.039.040 OR TITLE 17, CHAPTER 17.08 OF THE ANAHEIM MUNICIPAL CODE AND ADDING A NEW SECTION IN ITS PLACE AND STEAD RELATING TO LOT LINE ADJUSTMENTS. (City Engineer designated advisory agency for purposes of approving lot line adjustments) ORDINANCE NO. 3875: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (72-73-51(26), RS-HS-22,000) ORDINANCE NO. 3876: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (73-74-9(9), CL) Relative to Ordinance No. 3874, Councilwoman Kaywood wanted to be certain that notices would go to every property owner involved in the lot line adjustments and asked if that would be automatic notification. City Engineer Maddox explained that those were generally lot line adjustments caused by the final grading, and thus property owners were not usually involved. If there were, however, they would be notified. 101: COUNCIL LIAISON MEETING WITH REPRESENTATIVES OF THE LOS ANGELES RAMS: Councilman Overholt stated that he and the Mayor had a liaison meeting with representatives of the Rams, and Cabot, Cabot and Forbes on Thursday, June 8, 1978.which was fully reported in the newspapers. Later in the meeting, Mayor Seymour elaborated further and stated the subject meeting was a very positive one, even though both sides of the table negotiated firmly. A great deal of candidness was also displayed. The meeting was concluded on a basis that he believed was well within the parameters as best understood by the Council as well as the Anaheim Stadium, Inc. Board of Directors and the citizens of Anaheim. They looked forward to a written proposal from the Rams in the very near future. Mayor Seymour stated that he was personally impressed by the Rams' concern for the quality of treatment of their fans. They wanted to be sure that their fans were not only comfortable in Anaheim, but also that they were going to be comfort- able in the Stadium if completed as proposed. He hoped that it would not be too long before the City heard from the Rams with a specific written proposal. 148: MOTION - SUPPORT RESOLUTION OF COSTA MESA URGING CALTRANS TO START EIR STUDY FOR THE ROUTE 55 CORRIDOR THROUGH COSTA MESA: On motion by Councilwoman Kaywood, seconded by Councilman Kott, support of the subject resolution was approved as recommended by the Mayor of Costa Mesa at the June 8, 1978 League of California Cities meeting. MOTION CARRIED. 78-765 _qity Mall~ Anaheim~ California - COUNCIL MINUTES - June 13, 1978, 1:30 P.M. 153: FIRING OF RUTH JACOBSON: Councilman Kott requested that the City Manager' provide a report relative to the circumstances surrounding the firing of Ruth Jacobson as Recreation Specialist. He had received a number of inquiries re- garding the matter. Councilman Overholt had also received calls concerning the incident, and he also wished to receive a report. Councilman Kott left the Council Chamber. (6:25 P.M.) 105: RESIGNATION OF AL PERAZA FROM THE COMMUNITY SERVICES BOARD: On motion by Councilman Seymour, seconded by Councilwoman Kaywood, the resignation of Mr. A1 Peraza from the Community Services Board was accepted with regret. Councilman Kott was temporarily absent. MOTION CARRIED. Councilman Kott returned to the Council Chamber. (6:27 P.M.) 148: "KNOW YOUR CITY" BOOKLET: Mayor Seymour explained that 10,000 copies of the subject booklet were being reprinted at 25-cents a copy or $2,500, and it was his understanding that the printing was being held off by the Assistant City Manager. The Mayor stressed that he wanted to see the booklets printed because it was important for the citizens of Anaheim and especially young school children to know more about their city. He considered it impeCative to move forward with the printing and unless there was a majority dissent of the Council, he directed the City Manager to instruct the Assistant City Manager to have the reprinting of the booklets completed. No objection was raised by any Council Member. 103: CANYON ANNEXATIONS: The Mayor explained that Phil Schwartze, Assistant Director for Planning, approached him relative to tomorrow's meeting with LAFCO and the City's response to the proposed "new" City to be formed by the Vista del Rio Water Company. Mr. Schwartze wanted to know what comments that he or any other City representative might make in that regard. The Mayor's response to Mr. Schwartze was that since he was not an elected official of the City, he should not offer a response, but could do so to the degree that he (Schwartze) was now amending the cost benefit model about which he spoke earlier in the meeting in order to provide some numbers to which the Council could react. He (Seymour) was looking for a response from the Council individ- ually or collectively as to what to relay to the media when they called. Councilman Roth indicated if they were so inclined to try to form a new City, that was fine with him and they should feel free to do so; Mayor Seymour was of the same mind. There was no other response. RECESS - EXECUTIVE SESSION: Councilwoman Kaywood moved to recess into Executive Session. Councilman Overholt seconded the motion. MOTION CARRIED. (6:32 P.M.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (6:34 P.M.) 118: CITY OF ANAHEIM VERSUS SELLERS: On motion by Councilman Seymour, seconded by Councilwoman Kaywood, the City Attorney was authorized to accept and offer of settlement of $4,986 in the case of the City of Anaheim versus Sellers (Case No. A4543 in the Municipal Court of North Orange County). MOTION CARRIED. 78-766 City.. Hall, Anaheim, California - COUNCIL MINUTES - June 1.3~ 1978~ 1:30 P.M. RECESS: Councilman Roth moved to recess to 7:30 p.m. to consider Order to Show Cause on Conditional Use Permit No. 1785. Councilwoman Kaywood seconded the motion. MOTION CARRIED. (6:35 P.M.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (7:30 P.M.) PUBLIC HEARING - ORDER TO SHOW CAUSE - CONDITIONAL USE PERMIT NO. 1785: Joseph Conrad, Estate of Lee Combs, Lowen V. and Louise E. Casey, Notice of Order to Show Cause why Conditional Use Permit No. 1785 permitting an automobile storage and impound yard on CH and PC-C zoned property located at 801 South Anaheim Boulevard, should not be terminated on the grounds said permit is being exercised contrary to the terms and conditions of such approval. Mayor Seymour first outlined the rules under which the public hearing would be conducted. Miss Santalahti, Assistant Director for Zoning, explained that at the time the City Council approved Conditional Use Permit No. 1785 on January 17, 1978, several conditions were to be satisfied within a period of 90 days or by April 17, 1978. Mr. Conrad had satisfied the conditions except one pertaining to a required 8-foot block wall to be constructed along the south property line abutting the residents to the south. Originally involved was a wall on the west side of the property which had been built. Other conditions of approval were also stipulated relative to mechanical work on the property, hours of operation--namely, no mechan- ical work after 6:00 p.m. daily or Saturdays and Sundays, no power tools utilized, no vehicles being utilized by Mr. Conrad to be parked or stored outside the fenced in area which would be the 8-foot block wall including along the frontage of Anaheim Boulevard. Since then, complaints have been received relative to the hours of business, noise and impounded vehicles being parked within public sight. The Zoning Enforcement Officer had also gone to the premises on several instances. Before continuing, Councilman Overholt stated that since he was not a member of the Council at the time the CUP was granted, he would abstain from voting unless required for a decision. However, he had reviewed the minutes of the Council meetings in which the matter was considered as well as the findings and thus would be prepared to vote. City Attorney Hopkins stated that he had discussed the matter with Councilman Overholt and his suggested action would be a proper procedure. The Mayor asked if Mr. Conrad or his agent was present and desirous of being heard. Mr. Joseph Conrad, 801 South Anaheim Boulevard, explained that he had completed the block wall fence and the completion was signed off by the City for the 250-foot portion that lined the property. The block wall fence alongside the neighbors' property had not been raised the required 3 blocks and an engineering study was being done to determine the feasibility of either tearing the present wall down or raising it to the required height. There was some objections from some of the neighbors to raising the wall and, in the interim, he was under the impression that the 90-day time limit started from the second hearing (February 14, 1978). In fact, the main portion was completed 90 days prior to the second 78-767 qity Hall, Anaheim~ California - COUNCIL MINUTES - June 13, 1978~ 1:30 P.M. hearing. At that point, he had already invested $13,000 in the fence and to consider investing another $13,000 without having reasonable knowledge that his CUP would not be revoked, he could not proceed to raise the wall until after today's hearing. Otherwise, he would have had it completed by May 16, 1978. Mr. Conrad continued that although some minor infractions had taken place, not one citation had been issued to him on the property. If such citations had been issued, then he would not be Justified in requesting that his CUP not be revoked. Mayor Seymour asked if anyone wished to speak in favor of not having Condi- tional Use Permit No. 1785 revoked. Mr. Rick Nelson, 311 East Clifton (3 to 4 blocks away from subject property), stated he was opposed to having Mr. Conrad's CUP revoked for a number of reasons, the first being that their area needed an establishment such as Mr. Conrad's for mechanical work and towing--someone in the immediate area they could trust and go to to have their automobiles taken care of. His acquaintance with Mr. Conrad had been through getting his car fixed. He (Conrad) had always been fair with him and when his car was finished being repaired, all parts that were faulty were shown to him. Thus, he could trust Mr. Conrad and that was something to say for the mechanical field. Mr. Nelson then stated that he understood one of the problems was noise, a subject with which he had first-hand experience since he lived approximately 200 yards from a firm involving a non-stop, 24-hour a day docking function. He did not want to see the small businessman penalized for making noise when it was minor in comparison to a big corporation. As well, he had been to Mr. Conrad's estab- lishment many times and the place was always relatively clean although it was questionable as to how clean one was able to maintain an impound yard. Mr. Conrad had already invested $13,000 in a block wall and he was willing to spend another $13,000 if the Council retained his license. Mr. Nelson urged Council to do so. Mayor Seymour questioned Mr. Nelson as to his indicating that his relationship with Mr. Conrad was one that developed when he (Conrad) or his employees performed repair work on his car on the subject property. Mr. Nelson stated yes and that Mr. Conrad had mechanics working in the back and there were a couple of mechanics that he knew working there who had repaired his car. Mayor Seymour asked for clarification by staff regarding the situation since he understood Mr. Conrad's establishment to be an impound storage yard and not a place for repair. Miss Santalahti stated that was correct. Mr. Nelson confirmed for the Mayor that he did get his car repaired on the subject premises one time. Mr. Conrad interjected that there was a misconception involved; the property was zoned for mechanical repairs, but restricted after 6:00 p.m. when no air hammers or air equipment was to be used and also on weekends. 78-768 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. Mayor Seymour stated he did not believe the CUP was granted to permit automobile repair, but merely for impound and storage. A number of times in the hearings it was brought out that Mr. Conrad was not going to dismantle cars and he recalled testimony that no repairs would be done on the property. Miss Santalahti stated the resolution approved by the City Council permitted an automobile storage and impound yard on the property. Mr. Conrad took issue with Mayor Seymour's assessment because it was incorrect. Part of the property was used for storage and impound, but the rest of the property was a repair facility and a body shop not owned by him. Miss Santalahti referred to Item No. 6 of the conditions of approval of the CUP stating that no mechanical work other than minor repairs shall be permitted and no such work shall be conducted after 6:00 p.m. daily or on Saturday or Sunday; Mr. Conrad contended that that meant he could operate normally in the daytime. Miss Santalahti further explained for Councilman Roth that the automobile repair permitted in the zone was in connection with a car sales agency that being an accessory function. When the agency relocated, there was to be no mechanical work on the property. Without car sales, there could be no repairs. Mr. Conrad stressed that such a restriction was totally unknown to him until the present moment. City Attorney Hopkins stated that all parties were given copies of the resolution which clearly stipulated the restriction. Mr. Conrad stated that he came to the hearing under completely different grounds and had no idea discussion was going to be about his using his facility as one for repair and asked to have the Council convene the hearing to another time in order to have counsel present. The Mayor pointed out that Mr. Nelson, speaking on his (Conrad's) behalf, stated that fair repair work at reasonable rates was provided and reiterated that he was under the impression that no mechanical work was to be performed by Mr. Conrad's operation. The Council was not amenable to closing the hearing and reconvening at a later date. In answer to Councilman Overholt, Mr. Conrad stated he raised the. question because of the new information that was revealed to him and retaining counsel was not a grounds for the request. Ms. Debbie Merril, Knott Avenue, Secretary to Mr. Conrad, stated that he had been trying to make changes, the problem being that he was too nice in giving a second chance to the young men working for him. They needed a job and a chance to prove themselves, but subsequently if problems arose, Mr. Conrad would fire them, but eventually they returned and tried harder and were doing well. Mr. Conrad was very honest and he was trying to clear up everything. He had changed a number of things and new rules had been instituted. City ~al~, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. 78-769 Mr. Loren Casey, part owner of the property, stated that he had attended each one of the hearings on the subject matter and was very surprised that now mechanical repair work was a question. The property was set up as a mechanical garage, sales and service and he never interpreted it at any one of the meetings that mechanical repair was excluded. He reiterated there had never been any question in his mind that the facility was not always, from the beginning, approved for mechanical work whether or not sales took place. Mr. Casey stated if the complete meetings were recorded, there were statements made by members of the Council at many different times indicating the only matter for which the meeting was being held was to discuss the CUP relative to an impound and storage yard and that the towing service and mechanical service could continue. Mayor Seymour stated the question in his mind relative to the matter was the certified letter (with return receipt requested) sent from the City Attorney's Office to Mr. Casey, Item No. 2, which stated that there was to be no mechanical work other than minor repairs and with no work being conducted after 6:00 p.m. and Saturdays and Sundays. That was one of the 3 primary reasons for holding the hearing and the restriction was clearly spelled out in the resolution and the letter received by Mr. Casey. Mr. Gary Bolton, owner of the body shop, explained that one of the main reasons for opposition by the neighborhood was the noise factor created from the various enterprises on the property, his or Mr. Conrad's. He had spoken with Mrs. Bird relative to the noise who told him that City people had been contacted to run noise studies, but they could never "catch" them. Mr. Bolton continued that he offered to let Mr. Conrad use some of their other facilities in order to alleviate the problem and, as well, he offered to meet with Mr. and Mrs. Bird and others. He was surprised to learn they found out they had to catch them because all they had to do was ask. In fact, he offered to have people come out and they would purposely run their equipment any way the neighborhood saw fit. Consequently, representatives from the Orange County Human Services Agency conducted tests to ascertain if the noise was of an excessive nature, damaging to health and well being. Within the last 5 minutes, he received the results of the test. Although he had not read it, the bottom line was that apparently noise levels were within legal limits. In concluding, Mr. Bolton stated that his company wanted to be good neighbors and even though the noise emission was within legal limits, if it was still a problem to the neighbors, he would be happy to meet with the City Engineers and whatever steps necessary to alleviate the noises coming from his operation, they would do whatever the City deemed necessary to help eliminate the problem for the neighbors and hopefully that action would eliminate some of the problems to the point where Mr. Conrad could run his operation. The following people then spoke in favor of revoking Conditional Use Permit No. 1785. Mr. John Kaesler, 107 MacArthur Manor, stated his major complaint was (1) that the fence had not been built and (2) the noise at night. He lived at the end of MacArthur Manor and the front of Mr. Conrad's lot was in his backyard. On May 15, 1978, at approximately 10:05 p.m., he heard a loud noise out back. He 78-770 City .Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. opened his back door and caught one of Mr. Conrad's night employees and a number of other men unloading a pickup truck off of one of Mr. Conrad's trucks. To this day, that truck was still there. Yesterday, he counted 23 cars remaining there 24 hours a day. At 5:30 p.m. today, they started to push 3 of the cars on the front lot into the back, but there were still about 7 cars in the front lot that had been there since January. On Memorial Day, 4 vehicles were unloaded in the' front lot and one was on a tow truck. It was his understanding that no vehicles could be stored or unloaded on the front lot. Even if unloaded on the front and pushed to the back, he believed it to be wrong because he was being disturbed. Mrs. Rosaria Kaesler, owner of 107 MacArthur Manor, stated that at approximately 10:30 p.m. the prior evening, a gun was fired in the subject lot and someone present in the Chamber audience saw the gun on Mr. Conrad's premises. The incident kept everyone awake and it had not been the first time. When local law enforcement was called, the neighbors were told it was a civil matter and thus no satisfaction was given. She urged the Council to revoke CUP 1785. There had been too much harassment both to her son and immediate family, as well as everybody concerned on the street, and the situation had caused a great deal of unhappiness in the neighborhood. Mr. Nick Farmer, 106 West MacArthur Manor, believed the decision the Council had to make to be a simple one. He (Conrad) was given certain conditions to meet and if violated, the CUP was to be revoked. He planned to remain living in his present home and if the hearing did not decide the matter, he would be back again. He, too, urged the Council to revoke the CUP. He also confirmed for Mayor Seymour that he heard gun shots the night before and concurred with the approximate time stated and his wife did so as well. Mr. Keith Bird, 121MacArthur Manor, read excerpts from the minute~ of the Council meeting held January 17, 1978, which were pertinent to the decision to be made relative to revocation of CUP 1785 (see minutes that date). He read excerpts from pages 78-68 and 78-69 wherein statements were made by Mr. Conrad stipulating the things that he would and would not do on his property and, as well, read the conditions of approval that had to be met and/or main- tained (page 78-70) otherwise the CUP would be subject to revocation. Of the conditions read by Mr. Bird, only one, to his knowledge, had been Complied with and that was no alley ingress or egress. The other conditions continued to be violated such as the 8-foot block wall being only partially complete on April 26, 1978. After 99 days, only approximately one-third of the wall was complete. Mr. Bird continued that heavy power tool noise was constant from the premises on weekends and during late hours. Last Friday, the Zoning Division had to be called to remove or to inspect parked vehicles in front of the establishment-- crash, damaged or dismantled vehicles stored in public view. He asked that the City Council revoke CUP 1785 on the grounds stated as being in violation of that permit. Mr. Bird also confirmed that he heard about 4 or 5 rapid shots about 10:00 p.m. the night before. 78-771 City Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. After a brief discussion with staff, it was revealed that the Zoning Enforcement Officer did not go to the establishment the Friday before, but Miss Santalahti went to the site and saw that there were, in fact, vehicles stored in the front lot that did not appear to be legitimate. Mrs. Elaine Kaesler, 107 MacArthur Manor, first stated she had also heard the~ gun shots, approximately 5 at first and then 2 thereafter, but she did not see the gun. She continued that at the last meeting, Mr. Conrad stated he could not control all the people on the lot when he was asked about two men who approached her husband at their home to borrow tools. She emphasized that was the problem, there were many people involved, friends, employees, other people and she did not believe the situation could be controlled in a residential area. It was wild and on weekends it was even more disturbing. The vehicles were stored starting on Friday afternoons because nothing could be done by the City on weekends and the Police always indicated civil action was involved and they could do nothing. The residents were tired of living with the ongoing situation and it was very difficult to get anything accomplished. Something had to be done. She also did not understand what the situation was relative to the wall. Mr. Conrad was talking about adding 3 feet to it. If it fell over, someone was going to get hurt. Mrs. Billie Bird, 121 MacArthur Manor, stated that relative to the noise test, they never received a copy of the results and she thereupon requested a copy of the report. She explained that when the tests were taken, Mr. Bolton was not a part of Mr. Conrad's establishment and the tests were not taken to her satisifaction--they were not long enough and did not involve multiple noises. Furthermore, there were many other problems involved. As far as the City not citing Mr. Conrad, the situation had been explained to them that he would be warned and that was the way the City normally handled such matters. They were not interested in changing procedures and therefore they did not become upset over the matter. Mrs. Bird maintained that if Mr. Conrad acquired the proper permits when he moved to the property, the subsequent problems would have been avoided and the neighborhood would not have been sub- jected to all that occurred nor would Mr. Conrad have had to go through the expenses incurred. It was totally his responsibility. In concluding, Mrs. Bird stated the situation was an emotional one even though Mr. Conrad suggested that it not become so. It was unavoidable where their families were involved and many in the neighborhood were now afraid to the point where some were considering selling their homes. Their's was for sale presently not only because they needed more room, but also because they could not live with the situation any longer. Mr. Theodore De Velbis, 100 MacArthur Manor, (resident since 1949) stated that he was the person who saw the gun although it would probably not stand up in court. He then proceeded to explain what occurred. It was approximately 10:20 p.m., June 12, 1978, when he heard one shot and then four additional spaced shots. Both he and his son went outside and looked over into the Conrad property and saw four men. Mr. De Velbis walked out to the sidewalk and he saw one of the four raise his arm in the air with what appeared to be a gun and he could distinctly hear what sounded like clicks. He lowered the object and 78-772 ~ity Hall~ Anaheim, California - COUNCIL MINUTES - June. 13, 1978~ 1:30 P.M. raised it again only this time he could not hear anything because of the passing traffic. He waited a while and took for granted that perhaps blanks were fired and then he went back into his house. He could not, however, swear as to whether or not the object was a gun. Mary Oliver, 111 West MacArthur Manor, explained that she requested that the representative making the noise study monitor noise from her backyard, but it was done during coffee breaks. If she had to call him back when the noise was the greatest, it would be all over by the time he arrived. As well, when she arrived home from work late at night, the men who drove Mr. Conrad's trucks raced the engines and slammed on their brakes which annoyed her. Mrs. Sharon Farmer, 106 MacArthur Manor, stated that she also heard the shots, there was a lot of activity in their neighborhood and tow trucks had been driving down their street, two times yesterday and once today. There was no need for their street to be used instead of South Street and Anaheim Boulevard. During the trash strike she noticed the trash bins on Mr. Conrad's property filled with beer cans, and she was concerned to think that drinking was going on while vehicles and tools were being operated. As well, debris had been left in the alley from the old fence. The neighbors had been carrying the issue for six months and if the Council did not make the right decision tonight, the problems would continue. Nonetheless, she and her husband and her neighbors would keep coming back to fight the matter because otherwise it would not change. Mrs. Albert Poudevigne, 110 MacArthur Manor, stated that a great deal of dirt had been shoveled into the alley and water seeping from Mr. Conrad's property into the dirt caused mud. It appeared as though when the wall was constructed, no mortar was placed between 3 or 4 blocks causing the water seepage, and it was her understanding that Mr. Conrad was to put in a drain to preclude such an occurrence. In his closing statement, Mr. Conrad was of the opinion that much of the testimony given had been given previously. He maintained there was a misconception between his operation and the body shop and the neighbors had been trying to close the body shop where the majority of the noise emanated. They were trying to get to the body shop through him. If his establishment was removed, then the body shop would be closed. The testimony would bear out that 99 percent of the problem was noise and the block wall fence would border the side of the property used by the body shop. He also pointed out the following: (1) he knew nothing of the gun shots or the situation surrounding the matter; (2) drivers had been told not to use MacArthur Manor; (3) driving tow trucks was not a job which attracted older men. His operation needed young men and every once in a while, mistakes were made. (4) His business serviced people in need and somebody had to do the job. (5) He had refinanced his home to build the fence and an additional $13,000 would place an undue burden upon him. Although he was willing to complete it, the neighbors really did not want the fence, but only wanted his operation out of that location. Miss Santalahti stated for clarification purposes that relative to the body shop, mechanical function, the zoning did allow a garaging function. She referred to and read excerpts from the minutes of the January 17, 1978 hearing, page 78-61, which addressed a discussion held on the subject wherein there was a comment 78-773 City Hall~ Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. relative to the body shop and boat sales as being permissible. She read from paragraph 3 and noted that when the ultimate resolution was approved, it did require that the auto work Mr. Conrad conducted was to be modified to mechanical repair items. Commentary made by the residents indicated no apparent problems prior to Mr. Conrad moving in with the impound and storage use. They were not concerned with the previous body shop. The essence of Miss Santalahti's expla- nation was that she was wrong in her previous statement relative to mechanical repair and wanted to clarify the matter. The Mayor however referred to page 78-69 (January 17, 1978 minutes) indicating that approval of the use was subject to several conditions, one clearly stating that no mechanical work other than minor repairs take place after 6:00 p.m. daily including weekends. There being no further persons who wished to speak either in favor or in opposition, the Mayor closed the public hearing. Mayor Seymour stated it was his strong feeling that in view of the testimony received over a long period of time, he did not see any way possible that Mr. Conrad was going to be able to continue to do business at his present location to where it would be compatible with the neighborhood. There was also little doubt in his mind that Mr. Conrad had violated at least three items relative to Conditional Use Permit No. 1785: 1. CONDITION ~ER 5: That an eight-foot block wall shall be installed and maintained and the existing six-foot wall be extended to eight feet surrounding the property which walls shall be completed within 90 days from the date of this Resolution. 2. CONDITION NUMBER 6: That no mechanical work other than minor repairs shall be permitted and no such work shall be conducted after 6:00 p.m. daily or on Saturday or Sunday. 3. CONDITION NUMBER 8: That no vehicles shall be parked or stored outside the fenced area, including Anaheim Boulevard. Councilman Seymour thereupon offered Resolution No. 78R-386 for adoption, revoking Conditional Use Permit No. 1785, with the following findings: 1. That an eight-foot block wall was not installed and maintained and the existing six foot wall was not extended to eight feet surrounding the property within 90 days from January 17, 1978, the date of Resolution No. 78R-45. 2. That mechanical work other than minor repair was permitted'and minor repairs were conducted after 6:00 p.m. daily and on Saturday and Sunday. 3. Vehicles are parked and/or stored outside the fenced area, including Anaheim Boulevard. Before a vote was taken, the Mayor stated that he empathized with Mr. Conrad relative to the investment of his hard-earned money for some improvements on the property. On the other hand, the Council had to either uphold the conditions imposed at the time the permit was approved or look the other way and say the violations did not exist. 78-774 C~ty Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978, 1:30 P.M. Councilman Kott shared the Mayor's sentiments and stated he would vote for the revocation of the CUP. He wanted clarified that in so doing it may or may not include mechanical repairs in the body shop. With that one exception, he believed that mechanical repairs from the way he interpreted Condition No. 6 was that such repairs would be allowed during the day. If analyzed, it would have to be con-~ strued that mechanical repairs could be made before 6:00 p.m., otherwise the stipulation that repairs could not be made after 6:00 p.m. would not be necessary. Councilman Kott conceded that it was perhaps a mistake to have approved the permit initially, and the Mayor was correct relative to the incompatibility in the type of work being performed in the operation in a residential area. He also hoped that relative to the body shop, that operation would not continue to be a problem as well. Councilman Roth agreed with Mr. Conrad in the fact that much of the testimony was repetitious and he was also not swayed by the interpretation that mechanical repairs could not be performed. His main consideration was the fact that, when he asked the City Attorney at the April 25, 1978 meeting when the expiration of the 90 days occurred for constructing the fence, he was told the 90-day period had ended. He (Roth) made a commitment to the community that Mr. Conrad would not be granted one day's extension for completion of the block wall. It was Mr. Conrad's responsibility to see that the wall was complete andit was not done. He would thus support the resolution on the floor. Councilwoman Kaywood commented that the situation had been a disaster to a very nice neighborhood resulting from a totally incompatible use. A vote was then taken on the foregoing resolution. Refer to Resolution Book. RESOLUTION NO. 78R-386: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REVOKING CONDITIONAL USE PERMIT NO. 1785 AND DECLARING RESOLUTION NOS. 78R-45 AND 78R-109 NULL AND VOID. Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Kott, Roth and Seymour NOES: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: Overholt ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 78R-386 duly passed and adopted. 174: CETA PROGRAM AND PAY-BACK FUNDS FROM STATE RESERVE: Councilman Roth stated there was a matter he believed to be extremely important and thereupon moved that the City Manager be directed to spend as much time and energy necessary with the City's representatives in Washington D. C. relative to the CETA program problem. As well, the City Manager should extend all his efforts in Sacramento on the pay-back of the $5 billion from State reserves. Councilwoman Kaywood seconded the motion. 78-775 City Hal~. Anaheim~ California - COUNCIL MINUTES - June 13, .~978~ 1:30 P.M. Before a vote was taken, the Mayor stated he understood the motion to have two parts. He had no problem in directing the City Manager to extend his efforts in Sacramento. In his viewpoint, however, there was a problem relative to asking the City Manager to go back to Washington to lobby for a change in the CETA Program. In his opinion, such action would open the door to laying off full-time people without having to lay off CETA people, consequently, causing problems with employee associations. A bigger problem in the process would be that of making permanent employees out of CETA employees. He was strongly opposed to changing the conditions in the City's relationship with both CETA and permanent employees. He was very concerned that temporary employees would become permanent, a thought he had expressed many times in the past. Councilman Roth stated he was referring to the recent consortium letter received concerning the Department of Labor pointing out that there was a possibility of changing the funds around so as to be able to retain City employees, not CETA employees. The Mayor explained if the City was successful in that lobbying effort, it would be in a position not to have to lay off all CETA employees before getting to permanent positions, all performing the same job. Mr. Talley stated that was not quite correct and under the present regulations, no matter what the job, if one regular City employee was laid off, all CETA employees in that department had to be laid off. As an example, if the Fire Department had 20 CETA employees cutting brush in the canyons, and one City funded laborer assisting firemen in hydrant repair, if it became necessary to lay the hydrant laborer off, the 20 CETA laborers would also have to be laid off because they were all laborers. Mayor Seymour asked that if that laborer could be taken out of the Fire Depart- ment and put on the golf course in a full-time position, then the problem would not exist; Mr. Talley answered affirmatively. Mayor Seymour emphasized that was the point--the City would then start using Federal Funds to fund full-time positions because it would be financially beneficial for the City to do so. Councilman Roth stated he was not interested in having that occur since he did not favor Federal funding. At the request of the Mayor, Councilman Roth withdrew that portion of his motion revolving around the CETA problem. Mr. Talley stated the other aspect of the situation was that as of October 1, 1978, the Department of Labor also wanted the cities in 27 states, including California, to pick up the retirement costs for CETA. The Mayor expressed his opposition to such a move. Mr. Talley then suggested first that everything possible be done to prevent having to pick up the retirement cost. The maintenance of it relative to the CETA Program could be worked on thereafter. 78-776 City Hall, Anaheim~ California - COUNCIL MINUTES - June 13~ 1978~ 1:30 P.M. A vote was taken on the foregoing motion excluding at this time having the City Manager lobby for a change in the CETA program. MOTION CARRIED. ADJOURNMENT: Councilman Seymour moved to adjourn. Councilwoman Kaywood seconded the motion. MOTION CARRIED. Adjourned: 9:15 P.M. LINDA D. ROBERTS, CITY CLERK