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1974/01/08Cit Hall Anaheim Cali ornia - COUNCIY MINUTES - Januar 8 1974 1:30 P M. The City Council of the City of Anaheim met in regular session. PRESENT: COUNCILMEN: Stephenson, Sneegas, Pebley (arrived at 2:10 p.m.), Thom and Dutton ABSENT: COUNCILMEN: None PRESENT: CITY MANAGER: Keith A. Murdoch ASSISTANT CITX MANAGER: Robert M. Davis DEPUTY CITY ATTORNEY : Frank A . Lowry , Jr . CITY CLERK: A1ona M. Farrens UTILITIES DIRECTOR: Gordon W. Hoyt CITY ENGINEER: James P. Mad,doa ZONING SUPERVISOR: Charles Roberts Mayor Dutton called the meeting to order. INVOCATION: Reverend Jim Green of the Bethel Baptist Church gave the Invocation. FLAG SALUTE: Councilman Mark A. Stephenson led the Assembly in the Pledge of Allegiance to the Flag. INTRODUCTION OF NEW EMPIAYE~S: Mr. Frank Campagnoni of the City Personnel Department, introduced 15 new employees attending the Council meeting as part of the City's orientation program. The Mayor welcomed the new employees. .~._ 74-29 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P,M, --- - .- On motion by Councilman Thom, seconded by Councilman Dutton, waiver of the business license fee was granted in accordance with Council Policy No. 305. MOTION CARRIED. RECLASSIFICATION N0. 71-72-23 PARCEL NO 2 -EXTENSION OF TIME : Request of Mr. H. J. Belshe, 9781 Royal Palm Boulevard, Garden Grove, California, dated December 10, 1973, was submitted for a one-year extension of time to Reclass- ification No. 71-72-23, Parcel No. 2 for compliance with conditions pursuant to Resolution No. 72R-11, together with reports of the Development Services Department and City Engineer recommending said extension be granted. On motion by Councilman Stephenson, seconded by Councilman Sneegas, a one-year extension of time for Reclassification No. 71-72-23, Parcel No. 2 was granted as requested, to expire January 11, 1975. MOTION CARRIED, REQUEST - WAIVER OF WALL BONDS - RECLASSIFICATION N0. 59-60-85• Request of Ralph G. Pagter, Gillette, Seifert & Pagter (representing Mrs. Gladys Hass), dated November 29, 1973, for waiver of bond requirements for construction of block walls along the east and west property lines of R-3 zoned property, located on the north side of Ball Road, east of Dale Avenue and further that the orig- inal bonds be released was submitted for City Council consideration. Said bonds were required as a condition of approval of Reclassification No. 59-60-85 and request for temporary waiver of the block wall requirement was approved by the City Council on July 17, 1962, subject to installation of a block wall on the north property line prior to final building inspection and further subject to the posting of a bond in-lieu of block walls on the east and west property lines. Also submitted were reports of Development Services Department and City Engineer recommending that subject bond waiver request be approved for the block wall along the westerly property line, but requirement far block wall on the easterly property line and $2,700 bond be maintained in force. Mrs. Gladys Hass, 2831 West Ball Road, owner of the property, was recognized by the Mayor and stated she felt that the requirements for these bonds should be waived and the original bonds released since the property to the west is developed with apartments and to the east a six-foot chain link fence has been constructed at or near the property line. Further, she remarked that she was the only property owner in this immediate vicinity required to provide bonds for construction of block walls and that even though the amount is small, it does constitute a nuisance. At the request of Council, Zoning Supervisor Roberts explained that the six-foot high block wall would no longer be required on the west property line since it is now zoned R-3 and developed with apartments. Further, since a common access drive is shared by the two properties, construction of such a wall would be impossible. However, the six-foot high block wall requirement along the easterly property line adjacent to a dwelling unit on R-A zoned pro- perty is not satisfied by construction of a chain link fence and it is there- fore recommended that the bond posted for this wall remain in effect until construction of said wall or until the zoning status of that adjacent property no longer requires the block wall buffer. In accordance with recommendations of the City Engineer and Develop- ment Services Department, Councilman Sneegas moved that the $2,700 bond require- ment for construction of a six-foot block wall along the easterly property line of property described in Reclassification No. 59-60-85 be retained. Councilman Stephenson seconded the motion. MOTION CARRIED. RESOLUTION N0. 74R-4 - WORK ORDER N0. 824: Councilman Dutton offered Resolution No. 74R-4 for adoption. Refer to Resolution Book. 74-30 City Hall, Anaheim, California -COUNCIL MINUTES -January 8, 1974, 1:30 P.M. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETER- MINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUCTION AND COMPLETION OF A PUBLIC. IMPROVEMENT, TO WIT: MODIFICATION OF DOUGLASS STREET ENTRANCE TO ANAHE IM STADIUM , IN THE CITY OF ANAHEIM , WORK ORDER NO . 824. APPROVING THE DESIGNS, PLANS, PROFILES, DRAWINGS AND SPECIFICATIONS FOR THE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS , SPECIFICATIONS , ETC . ; AND At~TH- ORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NO TICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be Opened -January 31, 1974, 2:00 P.M.) Roll Call Vote: AYES: COUNCILMEN: Stephenson, Sneegas, Thom and Dutton NOES: COUNCILMEN: None ABSENT: COUNCILMEN: Pebley The Mayor declared Resolution No. 74R-4 duly passed and adopted. FINAL COMPLETIONS -WORK ORDER NOS. 703-B 705-A AND 801: Upon receipt of certifica- tions from the Director of Public Works, Councilman Stephenson offered Resolu- tion Nos. 74R-5 through and including 74R-7 for adoption. Refer to Resolution Book. RESOLUTION N0. 74R-5 - WORK ORDER N0. 703-B : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTIi~tG 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: THE KRAEMER BOULEVARD STREET IMPROVEMENT, NORTH OF LA PALMA AVENUE, IN THE CITY OF ANAHEIM, WORK ORDER NO. 703-B. (Jim's Blade Service) RESOLUTION NO . 74R-6 -WORK ORDER N0. 705-A : 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 Tn10RK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVEMENT, TO WIT : THE PAULINE STREET STREET IMPROVE- MENT FROM JULIANNA STREET TO LA PALMA AVENUE , IN THE CITY OF ANAHEIM, WORK ORDER N0. 705-A. (Orville E. Henderson) RESOLUTION N0. 74R-7 -WORK ORDER N0. 801: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTING THE COMPh~ TION 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 : THE DUPLICATING AND PRINTING SHOP ADDITION, PURCHASING BUILDING, 901 EAST VERMONT AVENUE, IN THE CITY OF ANAHEIM, WORK ORDER N0. 801. (Contracting Services) Roll Call Vote: AYES: COUNCILMEN: Stephenson, Sneegas, Thom and Dutton NOES : COUNC AMEN : None ABSENT: COUNCILMEN: Pebley The Mayor declared Resolution Nos. 74R-5 through 74R-7, both inclusive, duly passed and adopted. RESOLUTION N0. 74R-8 -DEEDS OF EASEMENT: Councilman Stephenson offered Resolution No. 74R-8 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS AND ORDERING THEIR RECORDATION. (Verla W. Browm; Sachiko, Ruriko & Reiko Nishino; Arne C. Belsby) 74-31 City Hall, Anaheim, California - COUNCIL MINUTES - Janu~8, 1974, x:30 P.M. Roll Call Vote: AYES: COUNCILMEN: Stephenson, Sneegas, Thom and Dutton NOES: COUNCILMEN: None ABSENT: COUNCILMEN: Pebley The Mayor declared Resolution No. 74R-8 duly passed and adopted. VEHICULAR ACCESS RIGHTS - HARBOR BOULEVARD (RECIAS_S_IFICATION N0. 65-66-59 (2 On motion by Councilman Sneegas, seconded by Councilman Dutton, the form of the deed conveying vehicular access rights to Harbor Boulevard from Lot No. 1 of Tract No. 416, commonly known as 626 South Harbor Boulevard, was approved and recordation of same authorized. MOTION CARRIED. PURCHASE OF EQUIPMENT - 16000 FEET~OF_~FIRE HOSE: Assistant City Manager Robert Davis reported that informal bids were received for the purchase of 16,000 feet of fire hose in various sizes and that the only vendor to bid on all items was American Rubber Company. He thereupon recommended that the American Rubber Company bid be accepted. On motion by Councilman Dutton, seconded by Councilman Sneegas, the bid of American Rubber Company was accepted and purchase authorized in the amount of $20,538.29, including tax. MOTION .CARRIED. PURCHASE OF EQUIPMENT - FOUR SMALL 1/2 TUN PICK-UP TRUCKS: The Assistant City Manager reported on informal bids received for the purchase of four small 1/2 ton pick-up trucks as follows and recommended acceptance of the low bid: VENDOR 21DTAL AMOUNT. INCLUDING TAX Vern Trider, Anaheim - - - - - - - - - - - - - - $12,885.26 McCoy Ford, Anaheim - - - - - - - - - - - - - - 12,995.51 Anaheim Datsun - - - - - - - - - - - - - - - - - NO QUOTE Anaheim Toyota - - - - - - - - - - - - - - - - - NO QUOTE Rober t Ha 11 - - - - - - - - - - - - - - - - - - NO QUOTE On motion by Councilman Stephenson, seconded by Councilman Sneegas, the low bid of Vern Trider Chevrolet was accepted and purchase authorized in the amount of $12,885.26, including tax. MOTION CARRIED. PURCHASE OF EQUIPMENT -ONE STANDARD SIZE CARGO VAN: The Assistant City Manager reported on the recommended purchase of one standard size cargo van and wised that McCoy Ford has submitted a quotation for said equipment in the amoun of $3,853.46, including tax. He thereupon recommended the purchase be author zed. On motion by Councilman Sneegas, seconded by Councilman Stephenson, purchase was authorized in the amount of $3,853.46, including tax. MOTION CARRIED . PURCHASE OF EQUIPMENT -ONE COMPACT SEDANS: The Assistant City Manager reported on informal bids received for the purchase of a compact sedan as follows and recommended acceptance of the low bid: VENDOR TOTAL COST, EXCLUDING TAX Santa Ana Dodge, Santa Ana - - - - - - - - - - - $ 2,754.60 McCoy Ford, Anaheim - - - - - - - - - - - - - - 2,678.16 On motion by Councilman Sneegas, seconded by Councilman Stephenson, the low bid of McCoy Ford was accepted as the lowest and best bid and purchase authorized in the amount of $2,813.07, including tax. MOTION CARRIED. PURCHASE OF EQUIPMENT - 23 POLICE SEDANS: Assistant City Manager Davis reported ~, that subsequent to the award made at the City Council meeting of January 2, 1974, for 23 intermediate sedans to be used by the Police Department to Santa Ana Dodge, the salesman representing McPeek Plymouth telephoned to notify the Purchasing Agent that the power steering shown as an option, which added an additional $87.45 in cost per unit, on the McPeek Plymouth bid was incorrect, __ „~ 74-32 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P.M. as this was an included item according to his contact at the factory. Mr. Davis stated that this would make McPeek Plymouth the low bidder and therefore recommended that the City Council rescind the award previously made to Santa Ana Dodge at $76,655.47, less trade-in, including tax, and award the 23 police sedan units to McPeek Plymouth at $75,747.37, less trade-in, including tax. On motion by Councilman Sneegas, seconded by Councilman Stephenson, the previous award for 23 police sedans from Santa Ana Dodge at $76,655.47, (less trade-in, including tax), was rescinded and the bid of McPeek Plymouth accepted and purchase authorized in the amount of $75,747.37, less trade-in, including tax. MOTION CARRIED. RESOLUTION N0. 74R-9 - UTILITIES AGREEMENT N0. 7UT-4059 STATE OF CALIFORNIA: Councilman Stephenson offered Resolution No. 74R-9 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE UTILITIES AGREEMENT N0. 7Ut-4059 WITH THE STATE OF CALIFORNIA. (Construction on the Imperial Highway from north of Orangethorpe to the Santa Ana River) Roll Ca11 Vote AYES: COUNCILMEN: Stephenson, Sneegas, Thom and Dutton NOES : COUNCILMEN : None ABSENT : COUNC ILMEEN : Peb ley The Mayor declared Resolution No. 74R-9 duly passed and adopted. CORRESPONDENCE - CITY OF TUSTIN - REGARDING LAFCO - NOTICE TO CITIES REGARDING CHANGE IN SPHERE OF INFLUENCE: Mr. Davis reported that there seems to be some dispute between the Cities of Santa Ana and Tustin relative to an action taken by LAFCO which ,...-., prompted the correspondence received. The City of Santa Ana has requested that they he afforded an opportunity to present their views as well prior to any action by the City Council of the City of Anaheim. Councilman Stephenson moved that the Council take no action at this times Councilman Thom seconded the motion. MOTION CARRIED. CORRESPONDENCE: The following correspondence was ordered received and filed on motion by Councilman Thom, seconded by Councilman Sneegas: a. City of Covina - Resolution No. 3224 - Urging the California Coastal Zone Commission to rescind its previous decision to deny expansion of the San Onofre Nuclear Generating Plant and grant immediate approval for the further development of this generating station. b. City of Costa Mesa - Resolution No. 73-146 -Requesting the dir- ectors and officers of the League of California Cities to refrain from taking a position on ballot measures of Statewide interest prior to a vote of all member cities. c. Before the Public Utilities Commission - Investigation on the Commission's own motion into the natural gas supply and requirements of gas public utilities in the State of California. d. Anaheim Chamber of Commerce to the Orange County Board of Super- visors - Supporting a growth policy established on a local level. e. Fullerton City Councilman, Duane Winters,. Director, Orange County Division - League of Calif ornia Cities - Commending the City of Anaheim for placing first in "lost time in injury frequency". MOTION CARRIED. ORDINANCE N0. 3250: Councilman Sneegas offered Ordinance No. 3250 for first reading. AN ORDINANCE OF TIDE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (65-66-59 (2) - C-0) 74-33 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P,M~ ORDINANCE N0. 3251: Councilman Stephenson offered Ordinance No. 3251 for first reading. AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING 'ILA ZONING. (73-74-1 - R-1) ORDINANCE N0. 3252: Councilman Sneegas offered Ordinance No. 3252 for first reading. AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (61-62-69 (64) - M-1) ANAHEIM POLICE ASSOCIATION - DATE FOR PUBLIC MEETING: The City Clerk submitted 8 letter received from the Anaheim Police Association dated January 8, 1974, which suggested the mornings of January 12, 19 or 26, 1974 for public meeting with the Council, pursuant to Council's request on January 2, 1974. On motion by Councilman Thom, seconded by Councilman Sneegas, the City Clerk determined that the meeting with the Anaheim Police Association would be held on Saturday, January 19, 1974 at 10:00 A.M., said meeting to be an Adjourned Regular Council meeting. MOTION CARRIED. Councilman Stephenson requested that the City Manager investigate the possibility of using the Church property~at the southeast corner of Emily and ChSrtres for the meeting in an attempt to provide accommodations for ss many police officers as wish to attend. SAVE - HARMLESS AGREEMENT - GUS NEWBERG: On recommendation of the City Attorney, on motion by Councilman Sneegas, seconded by Councilman Dutton, the City Council approved a save-harmless agreement to protect Gus Newberg, contractor at the Convention Center, enabling the City to use the building-prior to his receiving final acceptance. MOTION CARRIED. RESOLUTION N0. 74R-10 - AGREEMENT - TRANSFER FROM COUNCIL CONTINGENCY FUND TO THE ANAHEIM REDEVELOPMENT AGENCY: Councilman Thom offered Resolution No. 74R-10 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAL IM APPROVING THE APPROPRIATION OF FUNDS AS A IRAN TO THE REDEVEIAPMENT AGENCY OF THE CITY OF ANAHEIM FROM THE CONTINGENCY FUND, ($25,146.00) Roll Call Vote: AYES: COUNCILMEN: Stephenson, Sneegas, Thom and Dutton NOES: COUNCILMEN: None ABSENT: COUNCILMEN: Pebley The Mayor declared Resolution No. 74R-10 duly passed and adopted. Councilman Pebley entered the Council Chamber. (2:10 P.M.) REPORT - SOUTHERN CALIFORNIA EDISON RESALE RATE INCREASE FILING JANUARY 2 1974: Utilities Director Gordon Hoyt presented the following report on the January 2, 1974 resale rate increase filed by Southern California Edison and its possible impact on the City of Anaheim: (Complete memorandum dated January 8, 1974, on file in the office of the City Clerk.) The Southern California Edison Company has filed with the Federal Power Commission a request for another wholesale electric rate increase in the amount of 36%. The increase is comp©sed of two parts: The first is an increase in the base rates of 20.1% (which amounts to a monthly increase of about $350,000); the second part of the increase is a fuel adjustment of .192 cents per kilowatt hour (which amounts to a monthly increase of about $270,000•).. The two parts of the increase total about $620,000 per month or $7,440,000 per year. ~~.., 74-34 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P.M. One day subsequent to filing the increase with the Federal Power Com- mission, Edison filed a fuel cost adjustment with the California Public Utilit- ies Commission of .695 cents per kilowatt hour, which it has asked be made applicable to its retail customers. In the filing before the F.P.C., which affects Anaheim, Edison asked that the retail fuel cost adjustment be made applicable to wholesale customers concurrently with its being made effective for Edison's retail customers. Edison asked the C.P.U.C, to make its retail fuel cost adjustment effective February 1, 1974. In an attempt to clarify when the additional fuel cost adjustment may be made applicable to Anaheim, Mr. Hoyt reported that he has ascertained that Edison does indeed intend to have the retail fuel cost adjustment made applies cable to Anaheim at the same time it is made applicable to Edison retail cus- tomers - February 1, 1974 at the retail level and at the earliest March 2, 1974 for Anaheim. If the proposed .695 cents per kilowatt hour fuel adjustment is made applicable to Anaheim at the time the proposed base rate increase goes in to effect, Anaheim would experience a total increase in wholesale cost of power of approximately 75% above today's level. A preliminary review indicates that to recover this wholesale cost increase through rate adjustments, the City of Anaheim should increase residen- tial rates 45Q/o, commercial rates 40%, industrial rates 60%, agricultural and municipal rates 30P/o. The memorandum points out that .these increases would only recover the wholesale cost increase and no more. Mr. Hoyt further reported that since the increase filing has been available to him for only a short period, his review of the situation must be viewed as preliminary at this time. He explained that the situation will be reviewed in far greater detail and a recommendation will be submitted to the City Council for an electrical rate increase effective February 1, 1974, which will probably be to increase Anaheim's rate to equal Edison retail rates in surrounding communities, even though it is anticipated that these rates will not enable the City to recover the full amount of the wholesale increase. Mr. Hoyt .,.+.,, further reported that the amount of the additional increase requested by Edison is so enormous and follows so closely the 52~/o increase made effective September, 1973 that it may be necessary to reduce the support of the general fund by the electric utility, although the amount of such reduction cannot be estimated at this time . Mr. Hoyt recommended that the City continue to employ the law firm of Spiegel and McDiarmid and the consulting engineering firm of R. W. Beck and Associates to oppose this rate increase before the Federal Power Commission and such other administrative proceedings and courts of law as may be appropriate. He reported that he has discussed this with the City Attorney'8nd has his con- currence as well. The remaining cities which jointly opposed the last increase have been contacted and they do wish 'to continue the same arrangement for oppos- ing the recently filed increase. According to the time schedule established by the F.P.C. for the recent 52~/o wholesale increase,hearings will~be held in March of 1974. Mr. Hoyt further explained that it is necessary to initiate the Anaheim retail rate increase February 1, 1974 because revenue received by the City from its customers lags behind payments to Edison by about one month, and this lag with increased rate proposed could amount to a difference of $500,000. He noted that it is possible that the City may be able to cause the filing to be rejected entirely on the basis that it is technically incomplete, and certainly this approach will be taken possibly as early as next week. However, Mr. Hoyt reported that when the Commission does accept the filing, the best that the City of Anaheim can hope for is that they will suspend the rates for five months. The rates would then be placed in effect on a con- ditional basis subject to refund. Mr. Hoyt also mentioned that judging from Edison's experience before the California Public Utilities Commission, the City can expect them to file a fuel cost adjustment in May which, with the current oil situaation, would undoubtedly result in an increase in rates. In conclusion, Mr. Hoyt emphasized that. he could not recommend rate increases until further anaylsis is done but that he wanted to have as much public exposure as possible in advance of the rate increase. 74-35 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1.30 P,M. In answer to Councilman button's inquiry regarding current City of Anaheim retail electrical rates, Mr. Hoyt related the sequence of events lead- ing ro the 52~/o wholesale rate increase which prompted the City's rate increase in September of 1973. He advised that pursuant to Council direction, the Utilities Department has, and will continue to record and store the billing information in the event, when .the hearings before the F.P.C. are complete, and any refund authorized, the Council could determine whether or not they wish to return the refund in proportionate amounts to the customers. He noted it would be costly and difficult to do and therefore might not be warranted if the refund were small. Mr. Hoyt requested that Council approve the proposal to continue to employ the legal firm of Spiegel and McDiarmid and the consulting engineer- ing firm of R. W. Beck and Associates on the same contractual arrangement as exists currently to represent the City in opposing the latest filing. Councilman Thom inquired whether there would be any additional cost for Anaheim in the proposal,to which Mr. Hoyt replied that these firms are employed on a hourly basis and are consequently paid for every hour involved in representing the City. On motion by Councilman Dutton, seconded by Councilman Sneegas, the City Council approved the continued employment of Spiegel snd McDiarmid and R. W. Beck and Associates on existing terms and conditions to represent the City in its opposition to the rate increases before the Federal Power Commis- sion filed January 2, 1974 by Southern California Edison Company and such other administrative proceedings and courts of law as may be appropriate. MOTION CARRIED . Mr. Murdoch stated that in line with Mr. Hoyt's presentation, he wished to point out alternatives which the Council may consider. He noted that there are several approaches to the rate changes, one being to go immed- iately to the rate which is charged by Southern California Edison to customers in the area and this will probably be recommended for the duration of the energy crisis situation, or until same semblance of a normal picture can be identified. He pointed out that going to the Edison rate will not recover what is indicated as the effect of the increase in the wholesale rate as it is currently filed with the F.P.C. and the C.P.U.C. Mr. Murdoch noted that very ,likely in May of 1974 another fuel ad- justment clause will be filed in addition to what has been reported today. He emphasized that all of these increases are added over and above the 52~/o in- crease which has already been absorbed, and will most likely necessitate and precipitate a recommendation for further retail rate increases for the City of Anaheim. Mr. Hoyt summ~arized that the recent series of Edison rate increase filings began in March of 1971 and when and if the latest increase goes into effect the City of Anaheim will be paying 300% more as compared to the rates prior to the March 1971 filing. Further he explained that everyone can expect to pay increased costs for power as long as the oil producing countries con- tinue to raise the prices of fuel oil. He remarked that the fact that there is a fuel adjustment clause does not distress him as much as the method to be used to compute this increase. He is gravely concerned that this should be an equitable method and not discriminate against the City. He stated that the base rate method would be inexcusable since with this method, Southern Califor- nia Rdison would be charging the City of Anaheim more than they are charging their very large industrial customers, which seems to be anti-competitive at the very least. He advised that the City of Anaheim is taking single-point delivery for a very large amount of power and would be paying more for this power than it would if operating an industry in California, because of the kinds of filings which Southern California Edison made before the two Commis- sions and the allocation of costs. Councilman Thom interjected that from his personal experience in business, he is not surprised by the rate increase filings nor the frequency of them, noting that he has observed similar price increases, one rapidly succeeding the other, to the point where retail outlets are ordering merchandise without knowing what the price of same will be when it is shipped. 74-36 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P.M. Mr. Hoyt pointed out that the difference between a free market and the utilities is that in a free market there is an option to buy whereas with the utility you do not have that situation. It is rather ,the facts as they are represented before various commissions which set the rate increases. He noted that the rules of these commissions require different facts to be expressed and that one part of the City's complaint regarding the recent 52~/o increase was that Southern California Edison used different numbers before different commis- sions and reported the same facts in a different fashion. As an example he ex- plained that the City of Anaheim is allocated more cost on a proportionate basis than large industries because that decision was made between the F.P.C., C.P.U.C. and Southern California Edison Company, without the City of Anaheim being re- presented, and the City of Anaheim as well as other resale cities have objected strenuously to this different treatment. If the City of Anaheim were allocated costs on the same basis as these are allocated to other retail customer classes, Anaheim would pay less money at the same rate of return. Mr. Hoyt further explained that in this most recent filing, Southern California Edison has asked for a rate of return of 8.4% which represents a greater percentage profit, and proposed an entirely new form and structure for rates which will require a great deal of analysis to estimate the impact on Anaheim. Mr. Hoyt stated that he expects that Southern California Edison will also go before the Commissions later this year to request yet another increase (by adding more -into the fixed cost portion of the rates) based on the success of the curtailment program, since, although there may be a cutback in the num- ber of kilowatt hours of energy consumed, the fixed costs still must be spread over the same number of customers if the company is to earn the same rate of return. Mr. Murdoch summarized the remainder of the alternatives open to Council, one being a reduction in flow to the general fund in-lieu of a portion of the rate increase, also that such a reduction may be anticipated due to energy conservation. Another factor for Council consideration is reduction in revenues versus expenditures and the budget .is being analyzed throughout to determine what expenditures, both operating and capital could be curtailed or delayed or per- haps deleted. A plus factor for the City would be any delay in implementation of the increased rates, which could be granted for a maximum of five months. There was no further discussion and Council took no further action. PROGRESS REPORT - ALTERNATIVE ENERGY SOURCES ACTIVITIES: Utilities Director Gordon Hoyt stated that the City's objective in becoming involved in generating plants is to reduce the amount of money which it has to spend to purchase power for resale, and instead use funds to retire bonds, pay maintenance,. operating ex- penses and fuel costs for a generating plant. The net effect of this would be to reduce operating costs and ultimately provide power at less coat. He reiter- ated that these projects are not financed with the usual debt financing arrange- ment, wherein only '"left over monies"are available to pay operating expenses. He referred to the San Joaquin Nuclear Generating Project which~it is estimated would save the City 90 million dollars in a period of 30 years. INTERMOUNTAIN POWER PROJECT: Mr. Hoyt outlined the current status of the Inter- mountain Power Project, participation "in which was authorized by the Council in July of 1973. Intermountain is intended to be a 3,000 megawatt project burning coal for which two good sites have been located. Atone of the sites in Utah, underground water has been discovered which is the major water find in Utah in approximately 100 years. Mr. Hoyt reported that the Intermountain Power Project will form a non-profit corporation, the incorporators being himself and Mr. Joe Fackrell, of the Intermountain Consumer Power Association of Utah, and papers to this effect will be filed shortly. Mr. Hoyt further reported that himself and Mr. Fackrell will be dir- ectors of the non-profit corporation as well as the Utilities Directors or their counterparts from all other cities who proposed to be members. Currently, par- ticipation in the project includes the Cities of Los Angeles, Glendale, Burbank, Pasadena, Riverside, Anaheim and the Intermountain Camsumers Power Association (which consists of 25 municipal utilities and 6 rural electric cooperatives in the State of Utah). 74-37 City Hall., Anaheim, California - COUNCIL MINUTES-__January 8, 1974, 1:30 P.M. When the non-profit corporation papers are filed and it is legally in existance, an agreement will be submitted to each of the City Councils, and when this is satisfactory to all prospective members, it will be executed and the cities will be members of the non-profit corporation, the incorporators being merely instruments to bring the corporation into existance. Each city will then appoint a director to vote its share. Mr. Hoyt reported that Anaheim is currently involved in 15% of the Intermountain Power Project which will yield 450 megawatts of coal-fire gener- ation. The feasibility study costs, assigned to the City of Anaheim in propor- tion to its 15% share for the current fiscal year and subsequent years are as follows: 1973-74, $50,000; 1974-75 $165,000; 1975-76 $300,000; 1976-77 $40,000. The total amount for Anaheim's portion of the cost is $555,000, which is a conservative figure. Mr. Hoyt remarked that a financial consultant has been tentatively engaged and he is working with bond counsel for advise on financing of the project, the prospects for which appear good. He noted that this is probably the most viable power project which exists in the west at this time. It is hoped that the first unit of this project can be put into commercial operation in 1980. He reported that Mr. Alan Watts has served as chairman of the legal and negotiating committee and it is under his leadership that the agreements have been prepared which will be brought to Council in a few weeks. Regarding other prospective alternative energy generation facilities, Mr. Hoyt reported as follows: SAN JOAQUIN NUCLEAR POWER PROJECT: The City of Anaheim has requested 4'-~% of the San Joaquin Nuclear Project which would yield 200,000 kilowatts and the City of Anaheim was offered 1% or 40,000 kilowatts. An attempt is being made to compromise at slightly over 2% or 100,000 megawatts at this time. SAN ONOFRE EXPANSION: The City of Anaheim has an entitlement as a result of the settlement agreement with Edison Company to 38 megawatts or 38,000 kilowatts of the San Onofre Project which allows the City to November of 1977 before any commitment is necessary. He reported that the City is actively supporting the Edison Company position on the project together with the San Diego Gas and Electric Company. KAIPAROWITF PROJECT: Mr. Hoyt reported that the City of Anaheim has expressed interest in another coal-fire generation plant in Utah called the Kaiparowitf Plant which is being developed by Southern California Edison, Arizona Public Service Company and a third entity which he could not recall. Anaheim has re- quested participation and it has been indicated that they would advised as to the amount of power available. However nothing further can be done until June of 1974. VIDAL PROJECT: Participation has been requested in the desert nuclear plant being developed at Vidal Junction near Rice, for which the water will be pro- vided by the Metropolitan Water District. Southern California Edison has so far refused Anaheim's entry into the project but has been asked to reconsider the denial. BLACKS TAR CANYON PUMP S1roRAGE PLANT: The City of Anaheim has intervened in litigation in connection with this project and, in light of the rate schedule filed for increase recently, it appears that participation in this project would be worthwhile for the City. In conclusion, Mr. Hoyt noted these are basically the opportunities for participation which the City currently has. In addition, some minor amount of study is being given to the potential use of the coal fields in Utah, by con- version of this fuel to a liquid or gaseous form to be used in a combination combustion-turbine waste heat boiler or reheat unit. This area is the best hope for sites and fuel for future power supply. Mr. Hoyt advised that he has and will continue to investigate any other plants which come to his attention but that the Intermountain Power Pro- ject is moving ahead and appears to be the best prospect for a new power source 74-38 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P.M. _~.- which could be operative by 1980, The only other possibility for power genex'- ation from alternative sources prior to 1980 would be the San Onofre Expansion Project which could possibly be in operation by 1979, No action was taken by the City Council. PUBLIC FIREWORKS DISPLAY PERMIT - WALT DISNEY PRODUCTIONS: Application by Mr. Harold Aronson on behalf of Walt Disney Productions for public fireworks dis- play permit to allow fireworks displays on January 11, 1974, at 3:00 and 8:00 p,m. and January 12, 1974 at 8:00 p,m., in the Disneyland Park, was submitted and granted, as recommended by the Fire Marshal on motion by Councilman Stephenson, seconded by Councilman Sneegas. MOTION CARRIED. CORRESPONDENCE REGARDING CHINO HILLS AIRPORT COMPLEX PROPOSAL: Councilman Thom sub- mitted correspondence from Supervisor Ralph A. Diedrich dated November 29, 1973, to the Western Director of the Federal Aviation Administration regarding the proposal to develop a jet airport at the Chino Hills site; and the reply received to this communication from Mr. Jess R. Speckart, Chief, Airports Division, Department of Transportation, Federal Aviation Administration dated December 17, 1973 (Complete copies of said letters on file in the office of the City Clerk.) Councilman Thom referred in particular to the paragraphs numbered 1 and 4 which are in answer to the general question posed by Supervisor Diedrich, a.... if the Cities of Anaheim and Chino executed a joint powers agreement for the development of the proposed Chino Hills Airport and submitted an A-95 form to your office for an Airport Master Planning Grant, could you approve it leg- ally and would you approve it? If so, how and why?" Councilman Thom read Mr. Speckart's reply to this question in part as follows: "In the event that the Cities of Anaheim and Chino requested Federal Planning Funds to prepare a Master Plan for the proposed Chino Hills Airport, and the Southern California Association of Governments recommended against the project, the Federal Aviation Administration would not approve the request. It is our policy to fund only those projects which are consistent with local and regional planning." ~-. In addition, Councilman Thom read from Item No. 4 "..,.. if the Cities of Anaheim and Chino provided a co-sponsorship agreement acceptable to F.A.A., they may be considered as eligible sponsors. However, in this case the Master Planning Project would not be eligible because the F,A,A. has not made a determination that an additional air carrier airport is needed in the Chino Hills area and therefore no such need is indicated in the National Aviation System Plan. F,A,A. looks to State and regional system plans such as the California Master Plan of Aviation and the Southern California Regional Airport System Plan to provide the information necessary to make such a determination." Councilman Thom stated that the letter from Mr. Speckart and particu- larly the remarks shown above indicate to him that the possibilities for the approval of the Chino Hi11s Airport Complex Master Planning Grant from F.A.A. are nil and the issue therefore dead. Since this is the situation, Councilman Thom proposed that the Council announce its withdrawal from the joint powers agreement to form the Chino Hills Airport Authority. Councilman Dutton remarked that some of the procedures and reco~mRnenda- tionsmentioned in these lettershave not yet been accomplished, the reason being that the approval required from certain areashas not even been requested as yet. He noted however that the California Division of Aeronautics has stated the need for air transportation facilities in the northeast section of Orange County. Councilman Thom related that it is obvious from the Federal Aviation -~-~ Administration reply that this agency is not going to approve the project. Councilman Sneegas stated that the suppositions presented in Supervi- sor Diedrich's letter were in the negative and therefore they prompted the neg- ative reply. He contended that if the letter were written differently, it would have elicited a positive response. Councilman Thom remarked that a great deal of the planning in regards to the Chino Hills Airport is being based upon the Southern California Regional Airport System and SCAG has stated that this is in conflict with their open space studies. 74-39 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974, 1:30 P.M. - ~~_~ _- - Councilman Sneegas stated that this is the very purpose for the study proposed regarding the feasibility of an airport at the Chino Hills site, to determine whether this rejection is valid at this time. He noted that much of the information which has been promulgated regarding the Chino Hills Air- port Complex proposal has been badly distorted. He reminded Council that the study authorized is not going to cost the City of Anaheim anything other than some man hours and that it is in the interest of all citizens in Orange County to find out what the results of this study will be. Councilman Thom pointed out that the refusal in the letter of December 17, 1973 from the F.A.A., which is the body administering funds for airport studies, is succinct. Councilman Sneegas repeated that the refusal is succinct in answering the question~as it was asked. He related that the City of Anaheim is not re- sorting to any form of coercion on this project, but merely attempting to ob- tain the information necessary to judge the project. Councilman Thom voiced the opinion that this project is already a dead issue since it has been disapproved by the County Supervisors and by SCAG and therefore he would not be in favor of wasting further staff time on it. Councilman Dutton stated that the agencies mentioned by Councilman Thom are presently made up of individuals who are opposed in general to the Chino Hi11s Airport although they do not have accurate or sufficient infor- mation regarding same, but that these agencies are also subject to change. Councilman Sneegas related that it is his opinion that the current crisis in energy supply and other shortages which the Country now confronts are the result of the type of thinl¢ing exemplified by rejecting a proposal before adequate information is at hand. Councilman Thom restated his motion that the City announce its with- drawal from the joint powers agreement to form the Chino Hi11s Airport Auth- ority. Said motion died for lack of a second. Councilman Stephenson stated his concurrence with Councilman Sneegas' remark and felt that Councilman Thom's motion was premature. Councilman Dutton remarked that if the project does not withstand the feasibility study and environmental impact report,'or funds are not made available, obviously there is then nothing to worry about, the complex will not go any further. Councilman Thom stated that his feelings were that the Anaheim City Council was seemingly annointing itself as the "Southern California Regional Air Transportation Planning Body" whereat it represents only the citizens of Anaheim and its obligations are to those people. Councilman Sneegas recalled that the only comments regarding the Airport received from the citizens in the survey recently reviewed were from two people who although they slid not agree with the concept, did state that they required more information. Councilman Thom called attention to the survey undertaken by I.C.E.B.E.R.G. regarding the Chino Hills Airport. No further action was taken by the City Council. VACANCIES ON THE CITY PLANNING COMMISSION: Councilman Dutton noted that there are two vacancies on the City Planning Commission and requested Council to consider nominating candidates for possible action at the next Council meeting. Councilman Thom urged all of those who would like to serve on the Planning Commission to send in resumes and further that any organizations who 74-40 City Hall, Anaheim, California - COUNCIL MINUTES - January 8, 1974L 1:3G F=M~ have people they wish to nominate to forward their names for consideration as well, in an attempt to have as many names as possible sq that an ob3ective decision can be made.. He felt it would be wise of the Council to try in these appointments, to maintain the same type of balance in the Planning Cgmrnission which previously existed. He felt it would behoove the Council and the City to replace Mr, Rowland with another Commissioner from the Architectural field and Mr. Allred with another independent businessman. CONFLICT OF INTEREST DISCLOSURE - JOHN SEYMOUR: Mayor Dutton inquired as to whither or not the information was presented by Mr. Seymour to the City Attorney's Office as requested at the Council meeting of January 2, 1974. Deputy. City Attorney Frank Lowry, Jr., advised that he had no know- ledge as to whether it had been presented or not. ADJpURNMENT: Councilman Pebley moved to Adjourn. Councilman Sneegas seconded the motion. MOTION CARRIED. Adjourned: 3:02 P.M. -~ Signed ~ o--ruz. ~'7 - ~~~~~~ City Clerk City Hall, Anaheim, California - COUNCIL MINUTES - January 15, 197$, 1:30 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: COUNCILMEN: Stephenson, Sneegas, Pebley, Thom and Dutton ABSENT: COUNCILMEN: None PRESENT: CITY MANAGER: Keith A. Murdoch CITY ATTORNEY: Alan R. Watts CITY CLERK: Alone M. Farrens FINANCE DIRECTOR : M. R. Ringer STADIUM-CONVENTION CENTER DIRECTOR: T. F. Ziegler CITY ENGINEER: James P. Maddox ASSISTANT DIRECTOR OF DEVEIAPMENT SERVICES: Ronald Thompson Mayor Dutton called the meeting to order. INVOCATION: Reverend John Fast of the Trinity United Methodist Church gave the Invocation. FLAG SALUTE: Councilman Ralph G. Sneegas led the Assembly in the Pledge of Allegiance to the Flag.- VOLUNTARY ENERGY CONSERVATION PROGRAM - ANAHEIM CHAMBER OF COMMERCE: Mr. Joe Wade, 1747 South Walnut Street, President of the Anaheim Chamber of Connnerce advised that the Chamber felt it is essential that the Council be acquainted with the electrical energy conservation plan called "The Anaheim Plan", which was formulated by the business commun- ity in a voluntary, cooperative effort. He advised that the Chamber feels this to be a better approach to conservation than City or power company directives as have been implemented in Los Angeles, since such ordinances and regulations usually do not gain cooperation, but create resentment, as witnessed by the 200,000 plus variance requests, which made the Los Angeles directive unworkable. The Chamber is of the opinion that a direct voluntary effort from the citizens and the var- sous sectors of the business co~nunity, each of which is aware of his own unique situation, produces a workable plan. 74-40 Cit Hall Anaheim California .. COUNCIL MINUTES - Januar 8 1974 1::i0 F M have people they wish to nominate to forward their names for consid well, in an attempt to have as many names as possible sQ that an objective as decision can be made.. He felt it would be wise of the Council to try in these appointments, to ma~.ntain the same type of balance in the Planning Commission which previously existed. He felt it would behoove the Council and the Cit to replace Mr, Rowland with another Commissioner from the Architectural field and Mr. Allred with another independent businessman. CONFLICT OF INTEREST DISCIq SURE - JOHN S~pUR; Mayor Dutton inquired as to whether or not the information was presented b Mr. Office as requested at the Council meeting ofeJanuaryo2th1974ty Attorney's Deputy. City Attorney Frank Lowry, Jr., advised that he had no know- ledge as to whether it had been presented or not. ADJpURNMENT: Councilman Pebley moved to Adjourn. Councilman Sneegas seconded the motion. MOTION CARRIED.- Adjourned: 3:02 P.M. Signed ~~~a-~Za., ~'Y7 . ~~~~~ City Clerk