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1974/11/2674-1148 City Hall~ Anaheimv California - COUNCIL MINUTES - November 26, 1974~ 1:30 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Kaywood, Seymour (arrived 1:55 P.M.), Pebley, Sneegas and Thom COUNCIL MEMBERS: None CITY MANAGER: Keith A. Murdoch CITY ATTORNEY: Alan R. Watts DEPUTY CITY CLERK: Linda D. Roberts ' UTILITIES DIRECTOR: Gordon W. Hoyt FINANCE DIRECTOR: M. R. Ringer CITY ENGINEER: James P. Maddox MANPOWER PLANNER: William Hepburn COMMUNITY RELATIONS REPRESENTATIVE: Joe Garza ZONING SUPERVISOR: Charles Roberts Mayor Thom called the meeting to order. INVOCATION: Father Lawrence J. Baird of Saint Anthony Claret Roman Catholic' Church gave the Invocation. FLAG SALUTE: Councilman Calvin L. Pebley led the Assembly in the Pledge of Allegiance to the Flag. PROCLAMATION: The following proclamation was issued by Mayor Thom and unanimously approved by the City Council: "Helicopter Week in Anaheim" - Week of January 20, 1975. MINUTES: Minutes of the Anaheim City Council regular meeting held November 5, 1974, were approved on ~tion by Councilman Thom, seconded by Councilman Sneegas. Councilman Seymour absent. MOTION CARRIED. Minutes of the Anaheim City Council' adjourned regular meeting held November 4, 1974, were approved on motion by Councilman Thom, seconded by Councilwoman Kaywood. Because of absence, Councilmen Pebley and Sneegas abstained from voting on approval of the Minutes of November 4, 1974. Councilman Seymour absent. MOTION CARRIED. WAIVER OF READING - ORDINANCES AND RESOLUTIONS: Councilwoman Kaywood 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 readin~ of such ordinance or resolution. Councilman Pebley seconded the motion. MOTION IPNANI~0USLY CARRIED, REPORT - FINANCIAL DEMANDS AGAINST THE CITY: Demands against the City in the amount of $816,205.08, in accordance with the 197475 Budget, were approved. PROPOSED JOINT POWERS AGREEMENT - CREATION OF THE SANTA ANA RIVER FLOOD PROTECTION AGENCY: Submitted for Council discussion by Mr. Edward E. Just, Management Services Associates, on behalf of the Orange County Flood Control District. Mr. Just was recognized by Mayor Thom and he reported that on November 5, 1974, the Orange County Board of Supervisors and Orange County Flood Control District approved participation, along with any three cities in the County, in the formation of a Joint Powers agreement to create the Santa Ana River Floo~ Protection Agency. In this connection the Orange County Flood Control District has agreed to pay all costs of such agency through the end of june of the current fiscal year. Beginning July 1, 1975, the FloodControl District would continue to be responsible for the costs incurred by the agency for rent and clerical expenses, whereas the cost for a part-time coordinator and travel expenses is proposed to be absorbed equally by members of the agency. Hr. Just reported that the purpose of this agency, through the efforts of agency members .who have made other business trips to Washington, is to coordi- nate political activities so as to assemble information and contacts in order to push the A~ay Corps of Engineer's Flood Protection Alternative. He noted that although the League of Cities had obtained agreement between the Counties of 74-1149 City ~s. ll~ Au. ahaimt California - COUNCIL MINUTES - November 26.t 1974~ 1:30 P~M. Riverside, San Bernardino and Orange on one of the alternates, Just recently Supervisors of two of these Counties have taken the position that Orange COunty should repay tax revenues lost because of land removed from the tax rolls within their Jurisdiction. He noted that the alternate currently favored is the crea- tion of the Mentone Dam in conjunction with raising the height of the Prado Dam by 25 feet and making some major changes to the riverbed in Orange County. Mr. Just s,~m~rized the questions raised by other councils which have already discussed the agreement, one being the open endedness of the agreement as far as costs are concerned. He responded to this that the costs will be borne equally by the members and are anticipated to be $1,000 to $1,500 maximum per agency per year. Decisions of the agency will be based on a one vote per member basis. City Attorney Watts raised questions relative to the composition of the Joint Powers Agency which is created via this agreement, specifically that it is not stipulated therein whether the agency member will be an elected member of the legislative body or some other person appointed by the legislative body. fl~ recalled that the question of incompatibility of office was raised by County Counsel recently regarding another Joint powers agreement, and this should be cleared up prior to formal action on the document. In addition, Mr. Watts pointed out that although the stated purpose of this agreement was to pursuade Federal legislators that appropriation is neces- sary for these public improvements, the proposed agreement prohibits FloOd Protection Agency members from traveling to Washington, which seems to be inconsistent. Mr. JuSt advised that the Joint Powers Agency proposes to take advantage of trips already planned and made for ocher purposes, thereby avoiding additional expenses by combining the trips. He als° pointed out that the Agency proposes to, take advantage of its members' contacts in Riverside and San Bernardino County governmants. In answer to Mr. Watts' concern, Mr. Just reported that County Counsel Charles Sevier is reviewing the agreement inasmuch as several city councils have approved same, subject to review by their own staff. In reply to Council questions, Mr. Just reported that the Cities of Cypress,' Fountain Valley and Garden Grove have so far taken action to approve the formation of this Agency and 22 of the 26 cities in Orange County have been contacted, several of which are contemplating action shortly. Mayor Thom stated that he felt it would particularly behoove the City of Anaheim to Join with Orange County and other cities in an attempt to urge that action on the Army Corps of Engineer's project be taken as expeditiously as possible. He thereupon moved that the City Council approve the proposed Joint Powers Agreement for the establishment of the Santa Ana River Flood Protection A~ency in concept, and indicate willingness t~ enter into said agreement after the legal problems have been resolved to the satisfaction of the City Attorney. Councilwoman Kaywood seconded the motion. Councilman Seymour absent. MOTION~' CARRIED. CONTIN~,.ED PUBLIC HEARING ~ HOUSEMOVING PERMIT: Application submitted by G. Fronseca requesting permission to move a structure from 1314 North Pacific, Santa Aha, to 1~19 Pounders Lane, Anaheim. Public hearing continued from the meetings of July 16, July 23, August 20, and September 17, 1974 to allow the applicant time to purchase another house to move onto the Pounders Lane site. Also submitted was report from Develop~ent Services Department, Zoning Division. Nayor Thom asked if the Applicant was present and aware of the findings and reco~ndations reported by staff, to which he received an affirmative reply from Mr. Fronseca. " In reply to Councilwoman Kaywood, Mr. Fronseca stated that h~ had contacted Mr. Js~es Walther, 1776 West Cris Avenue, who had acted as spokesman, 74-1150 City Hall, Anaheim, California - COUNCIL MINUTES - November 26, 1974,1:30 P.M. voicing the neighbors' opposition at the public hearing held July 16, 1974, and was informed by Mrs. Walther that there were no problems with this proposed move-on structure. Mayor Thom asked if anyone wished to address the City Council relative to the housemoving permit; there being no response, he declared the hearing closed. RESOLUTION NO. 74R-577: Councilman Pebley offered Resolution No. 74R-577 for adoption,'granting said housemoving permit subject to: 1. That the standard park in-lieu fees be paid. 2. That the proposed move-on structure be made to comply with all applicable codes and ordinances of the City of Anaheim. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING A HOUSEMOVING PERMIT TO MR. G. FRONSECA. (1619 Pounders Lane, Anaheim) Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Pebley, Sneegas and Thom NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Seymour The Mayor declared Resolution No. 74R-577 duly passed and adopted. PUBLIC HEARING - RECLASSIFICATION NO. 74-75-16, CONDITIONAL USE PERM. IT NO. 1498: Application by Shoichi Kubo for a change in zone fromR-A to C-land the {ollow- lng Code waivers'to permit the continued use and exPansion of an existing Plant nursery on the west side of Beach Boulevard, SOuth of Orange Avenue (Kubo's Hi-39 Nursery) was submitted together with application for exemption status from the requirement to prepare an environmental impact report: ~ a. Permitted driveway width. b. Maximumbuilding height. c. Required block wall adjacent to R-A zoning. The City Planning Commission, pursuant to Resolution No. PC74-209, reported that the Director of Development Services has determined that the pro- posed activity falls within the definition of Section 3.01, Class I.of the City of Anaheim Guidelines to the requirements for an environmentalimpact report and is, therefore, categorically exempt from the requirement to file;an E.I..R. and further recommended that Reclassification No. 74-75-16 be apprOved, excluding the westerly 220-foot portion of the property originally included in said zoning petition, subject to the following conditions: 1. That the owner(s) of subject property shall conditionally dedicate to the City of Anaheim a strip of land 32 feet in width from the centerllne of the street along Hayward Street for street widening purposes, conditioned upon need for the street and demand by the City; and that the owner(s) shall remove the existing dwelling which, in its present location, would obstruct the future extension of Hayward Street, said removal being conditioned upon need for the street and demand by the City, as stipulated'to by the petitioner. 2. That sidewalks shall be installed along Beach Boulevard as required by the City Engineer and in accordance with standard plans and specifications on file in the office of the City Engineer. 3. That street lighting facilities along Beach Boulevard 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. 4. That the owner(s) of subject property shall pay to t~he City of Anaheim the sum of 60¢ per front foot along Beach Boulevard for tree planting purposes. 5. That trash storage areas shall be provided in accordance with approved plans on file with the office of the Director of Public Works. 74-1151 City ~1~.~ Anaheim, California - COUNCIL MINUTES - Noveslber 26;~ !974~ 1:30 P.M. 6. That fire hydrants shall be installed and charged as required and determined to be necessary by the Chief of the Fire Department prior to commence- ment of structural framing. 7. That drainage of subject property shall be disposed of in a manner satisfactory to the City Engineer. 8. 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. 9. That a parcel map to record the approved division of subject prop- erty shall be submitted to and approved by the City of Anaheim and then be recorded in the office of the Orange County Recorder. 10. Prior to the introduction of an ordinance rezoning subject property, Condition Nos. 1, 3, 4 and 9, above-mentioned, shall be completed. The provi- sions or rights granted by this resolution shall become nUll and void by action of the City Council unless said conditions are complied with within one year from the date hereof, or such further time as the City Council may grant. 11. That Condition Nos. 2, 5 and 7, above-mentioned, shall be complied with prior to final building and zoning inspections. The City Planning Commission, pursuant to Resolution No. PC74-210, reported that the Director of Development Services has determined that the pr°- posed activity falls within the definition of Section 3.01, Class 1 of the City of Anaheim Guidelines to the requirements for an environmental impact report and is, therefore, categorically exempt from the requirement to file an E.I.R. and granted Conditional Use Permit No. 1498, subject to the following conditions: 1. That this Conditional UsePermit is granted subject to the comple- tion of Reclassification No. 74-75-16, now pending. 2. That subject property shall be developed substantially in accor- dance with plans and specifications on file with the City of Anaheim marked Exhibit Nos. 1, 2 and 3. Councilman Seymour entered the Council Chambers. (1:55 P.M.) Zoning Supervisor Roberts described the location of subject property and surrounding land uses. He reported that the Applicant initially requested that the zoning on the entire property be changed from the R-A to C-1 and filed petition for conditional use permit to permit expansion of an existing nursery operation. The expansion would involve an addition of 1,500 square feet of building area. The Applicant proposes to retain the existing lathe house and two residential structures located at the westerly end of the property. There would be 30,000 square feet of outdoor plant display area in connection with the proposed nursery operation. Mr. ~berts explained the three Code waivers reques- ted pursuant to Conditional Use Permit No. 1498, two of which (waivers "b" and "c") would apply to the R-A zoned property located to the north, which is actually being used for commercial purposes. Mr. Roberts noted that the Planning Commission held considerable discussion regarding the use intended for this entire property and the impact of the ultimate extension of N~yward Street northerly from its present terminus, which would bisect subject property. He advised that it was an Interdepartmental Coomittee recomendation that dedication be made for the extension of Hayward Street by this property owner. Consequently at the Planning Commission hearing the Petitioner requested that the Planning Commission cOnsider rezoning to C-1 only that portion lying easterly of what would be the northerly extension of ~ayward Street and indicated that he would initiate proceedings to rezone that portion of his property lying to the west of the proposed extension of Hayward Street at a later date. (Hr. Roberts informed Council that an application has since been received requesting this portion of subject parcel be zoned R-3.) The Petitioner also stipulated to removal of the existing residential structure st such time as the City formally accepts dedication of right-of-way for exten- sion of Hayward Street. The Planning Co,mission recommended approval of the three requested waivers and reclassification of the parcel to C-l, excluding that portion which would lie to the west of the proposed extension of Hayward Street. Hr. Roberts stated that subsequent to Planning Co~nission action, staff has met with the Applicant and, asa result of these meetings, wouldlike to propose amendments to conditions as set forth in the City Planning Commission V~'solution No. PC74-209, as follows: 74-1152 City Hall~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974~ 1:39. P.M. a. That Condition No. 1 be changed to read: "That the owners of sub- ject property shall conditionally dedicate to the City of Anaheim a strip of land 64 feet in width for the northerly extension of Rayward Street along an alignment satisfactory to the City Engineer, conditioned upon the need for the street and demand by the City; and that the owner(s) shall remove the existing dwelling which, in its present location, would obstruct the future extension of Hayward Street, said removal being conditioned upon need for the street and demand by the City, as stipulated to by the Petitioner." b. That Condition No. 4 be changed to read as follows: "That the owner(s) of subject property shall pay to the City of Anaheim the sum of 60¢ per front foot along Beach Boulevard for tree planting purposes; or that the owner(s) of subject property shall install street trees in the public parkway along Beach Boulevard in accordance with City specifications and subject to the approval of the Superintendent of Parkway Maintenance." c. That Condition No. 9 be deleted since a parcel map is not necessary with the exclusion of the westerly 220-foot portion of the property. d. That Condition No. 10 (renumbered No. 9 following deletion of No. 9 above) be amended to delete Condition No. 4 from same. e. That Condition No. 11 (renumbered as. No. 10) be amended to include Condition No. 4, reading "That Condition Nos. 2, 4, 5 and 7, above-mentioned, shall be complied with prior to final building and zoning inspections." Mr. Roberts, using an overlay on the posted zoning map, brought to Council's atte~tion the possible alignment for streets to be Provided in-this immediate area for access and circulation for some of the established uses and some parcels which are presently landlocked. He pointed out the 10-acre parcel acquired by the City for expansion of the Twila Reid Park facility. He indicated that the Development Services staff proposes to prepare and bring before Council for their consideration an area development plan at a later date, but did wish to indicate the current status of thinking on access proposals as they would relate to the matter under consideration. Mayor Thom asked if the Applicant or his Agent were present and satis- fied with the conditions as set forth and amended. Mr. Peter Ostrander, Ostrander and Kishiyama, 2212 Dupont Drive., Suite F, Irvine, Agents for the Applicant, replied that they are in agreement~with the recommendations and have met and discussed on two occasions the proposed northerly extension and alignment of Hayward Street. He reported that the Applicant is requesting residential zoning on the portion of his property to the west which would be cut off by the extension of Hayward Street. Councilman Seymour asked Mr. Ostrander whether the alignment of Hayward Street as currently proposed would create any hardships on the proposed zoned property to the west which would subsequently force the property owner to seek additional variances. If this is the case, he (Councilman Seymour) would prefer to alleviate any problems now. Mr. Ostrander advised that following review of both the R-3 and R-2 portions of the Code, they concluded that the best alignment for their, potential development of this property would be the one which is proposed by staff. The Mayor asked if anyone wished to address the Council either in favor or in opposition to Reclassification No. 74-75-16 and Conditional Use Per- mit No. 1498; there being no response, he declared the hearing closed. CATEGORICAL EXEMPTION - ENVIRONMENTAL IMPACT REPORT: On motion by Councilwoman Kaywood, seconded by Councilman Seymour, the City Council ratified the determina- tion of the Director of Development Services that the proposed activity falls within the definition of Section 3.01,. Class 1 of the City of Anaheim Guidelines to the requirements for an environmental impact report and is, therefore, categori- cally exempt from the requirement to file an environmental impact report. MOTION CARRIED. RESOLUTION NO. 74R-578: Councilman Pebley offered Resolution No. 74R-578 for adoption, authorizing the preparation of the necessary ordinance, changing the zone as requested, excluding the westerly 220-foot portion of the property, sub- ject to the conditions recommended by the City Planning Commission with amendments as recommended above. 74-1153 City .Rely, ,.Anaheim, California - cOUNCIL HIN~.TES - Noveaber 26, 1974, 1~30. P-M. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERHINING THAT TITLE 18 OF THE ANAHEIM HUNICIPAL CODE RELATING TO ZONING SHOULD BE AHENDED AND THAT THE BOUNDARIES OF CERTAIN ZONES SHOULD BE CHANGED. (74-75-16 - C-l) Roll Call Vote: AYES: COUNCIL HEHBERS: Kayvood, ~ey~our, Pebley, Sneegas and Thom NOES: COUNCIL HEHBERS:' None ABSENT: COUNCIL HEHBERS: None The Mayor declared Resolution No. 74R-578 duly passed and adopted. ..RESOLUTION NO. 74R-579: Councilman Pebley offered Resolution No. 74R-579 for adoption, granting Conditional Use Permit No. 1498, subject to the conditions recoemended by the City Planning Co~mission. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 1498. Roll Call Vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL HEHBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution No. 74R-579 duly passed and adopted. CONTI~.D R~UEST - EXTENSION OF TINE - RECLASSIFICATION NO. 69-70-25~ TENTATIVE TRACT NO. 7~37: Submitted by Terry L. Crowther, Manager, Project Development, Pacesetter Romps, Inc~, requesting an extension of time for, the development of 97 RS-5000 zoned lots'located between gsperanza Road and the Santa Ann River Channel, east of I~perial Highway. Said request was continued from the meetings of October 29, 1974 and November 12, 1974, to allow the Applicant time to file a supplement to Environmental Impact Report No. 64. Deputy City Clerk Linda Roberts advised that the required supplement to E.I.R. No. 64 has been filed and has been reviewed by staff, with report and reco~endatiOn also presented from Development Services Department. In addition, Hrs. Roberts reported that communication dated November 22, 1974 has been received fro~Hr. Crowther informing the Council that Tract No. 7666 will not be developed nor recorded and, therefore, that the request for extension of ti~e to Reclass- ification No. 69-70-25 and Tentative Tract No. 7137 be removed from the Agenda, and the fees refunded and bonds exonerated for Tract No. 7666. Co~unication was received at open meeting this date from Mr. Gilbert U. Krae~er, Jr., President of the Upper K Ranch Corporation, 842 Alta Vista, Placentia, 92670, advising that foreclosure proceedings regarding subject tract will be consuamated during December, 1974, at which time the Upper K Ranch Corporation will become the legal owner of this property. The tentative tract mep, however, will expire December 7, 1974, and the Upper K Ranch Corporation, therefore, requests an extension of time to Tentative Tract Map No. 7137, as well as to Reclassification No. 69-70-25. Hr. Jeff Hillett, 1335 West Valencia, Fullerton, representing Hr. F~ae~er, reported that the foreclosure takes effect December 10, 1974 whereas the tract mep ~ust be recorded by December 7, 1974. Ha indicated that they wished to sub-it a substitute bond, pay the fees and proceed with this project. The City Attorney informed Hr. ~lillett that although there is no prob- lem in granting an extension of time to the resolution of intent to rezone the property, the Subdivision Map Act provides for only two one-year extensions of time prior to recordation of a mep. In this instance the time which expires on Detester 7, 1974, is the second of these one-year extensions and further exten- sions beyond this would be difficult to defend if contested. 74-1154 City Hall.~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974~ 1:30 P.M. On receipt of this information, Mr. Millett advised that they would accept an extension of time to the reclassification and submit a new tract map for processing. Mr. Roberts indicated that should Council desire to grant an extension of time to the resolution of intent, it would be 'appropriate to incorporate the staff recommendation with regard to providing a line-of-sight acoustical shield for areas within 600 feet of the railroad tracks in order to achieve exterior noise levels categorized as "normally acceptable" according to HUD noise guide- lines. This requirement should also.apply to any future tract maps submitted on the property. On motion by Councilman Seymour, seconded by Councilman Pebley, the City Council granted a retroactive extension of time to Reclassification No. 69-70-25, expiring February 9, 1976, and authorized the addition to the condi- tions thereof, the provision that any project be modified to provide aline-of- sight acoustical shield for areas within 600 feet of the railroad tracks in order to achieve exterior noise levels which are categorized as normally accept- able according to HUD noise guidelines; said condition to also apply to any future tract map relating to subject property. MOTION CARRIED. REQUEST - OFFICIAL SANCTION - HELICOPTER ASSOCIATION OF AMERICA CONVENTION. AT THE DISNEYLAND HOTEL: Request was submitted byMs. Jeri Schroeder, Convention Coordinator, Disneyland Hotel, for official recognition and sanction of activities proposed by the Helicopter Association of America during their convention at the Disneyland facility in January, 1975. Ms. Schroeder described the three locations at which helicopter flights and static displays will be conducted and outlined the proposed flight demonstra- tion schedule. She emphasized that the permit issued to conduct these activities from the heliport is not valid for night flying and, therefore, all demonstra- tions, arrivals and departures of demonstration aircraft Will take place during daylight hours. She reported that in the past many inquiries were received from Anaheim residents relative to these flying activities, and the Helicopter Associa- tion, therefore, wished the City Council to be aware of what is proposed and, ,if possible, to give their sanction so that publicity explaining the event may be disseminated. Councilwoman Kaywood pointed out for the record that this convention is to be conducted at the Disneyland Hotel Convention Center, not the Anaheim Convention Center, and any references to "Convention Center" relate to the Hotel facility. Mr. Jim Vittitoe of Hughes Aircraft Company added that all demonstra- tions and flying will be controlled by the FAA, and they will have an inspector on site. In reply to Councilwoman Kaywood's question regarding liability in the event of accident, Ms. Schroeder repOrted that Walt Disney Productions and the Dlsneyland Hotel are currently conducting negotiations regarding the provision of adequate insurance protection. In addition, the helicopter manufacturers are required to carry five million dollars liability protectiou. At the conclusion of discussion, Mayor Thom advised Ms. Schroeder that the Anaheim City Council recognizes and is aware of the activities proposed by the Helicopter Association, and wishes to extend a cordial welcome to the City of Anaheim. REQUEST - EXTENSION OF TIME~ TENTATIVE TRACT NO. 7587 (VARIANCE NO. 22957: Communi- cation from Wayne Callaghan, Planning CoordinatOr, Anaheim Hills, Inc., dated October 11, 1974, requesting an extension of time for the development of a 39- lot R-A subdivision located northwest of the future intersection of Avenida de Santiago and Hidden Canyon Road and southerly of Serrano Avenue was submitted, together with reports 'from Development Services Department and the City Engineer. The City Engineer's report recommends denial of the request for extension of time to Tentative Tract No. 7587 due to the fact that there have been two one- year extensions of time granted, the latter having expired November 9, 1974, and the Subdivision Map Act provides for no further extensions of time beyond the two one-year periods already afforded this tract. 74-1155 City ~mll, Anaheim, California - COUNCIL MINUTES - November 26~ 1974, 1:30 P.M. In reply to Councilwoman Kaywood, Mr. John Millick, representing Anaheim Hills, Inc., reported that their basic problem with this tract, which is one of the proposed equestrian estate areas, is providing water to this higher elevation. In order to provide water service to this area, an additional reser- voir must be built and the Cities of Orange and Anaheim are in the process of desl~ning and installing same. Mr. Roberts reported that the request for extension of time to Variance No. 2295 will be reviewed by the City Planning Commission and their action for- warded to Council for review. On motion by Councilman Seymour, seconded by Councilwoman Kaywood, the City Council denied the request for extension of time to Tentative Tract No. 7587 since no further extensions of time are provided pursuant, to the Subdivision Map Act. MOTION CARRIED. .REqUE~T - TENTATIVE TRACT NO. 8679 - AHEI~ME~ TO CONDITIONS OF APPROVAL: Requests from Lewis R. Schmid, President, Schmid Development, Inc., 1681 Langley. Avenue, I~vine, 92705, regarding deletion of Condition No. 11 of Tentative Map, Tract No. 8679, regarding maintenance of slopes within said tract by a homeowners' association; and further requesting that all streets in the proposed development be a 54-foot right-of-way with a 40-foot paved surface were submitted, together with reports from Development Services Department and the City Engineer. Zoning Supervisor Roberts reported that Just prior to'this meeting, Mr. Schmid advised that he wishes a one-week continuance regarding the request for deletion of Condition No. 11, but wishes Council to consider the request relating to street widths at this time. Councilwoman Kaywood inquired whether the approval of the narrower street widths would create a larger lot size and, if so, would the developer then charge more for these lots. Mr. Maddox replied that the request, as proPosed, does not constitute a reduction in roadway width, but rather of the parkway width and would create slight additional footage within the lot. Mr. I,ewis R. Schmid replied that they would not charge an additional fee for the slight increase in lot size. He explained that the reason for this request is basically a problem which was created in transition of engineering drawings from the first map submitted to subsequent maps. This correctionwill in some cases actually increase the width of the roadway from 36 to 40 feet. On motion by Councilman Seymour, seconded by Councilman Pebley, the request for deletion of Condition No. 11, Tentative Tract No. 8679 was continued one week. MOTION CARRIED. On motion by Councilman Pebley, seconded .by Councilman Sneegas, the request to provide uniform 54-foot right-of-way streets with a 40-foot paved surface within Tentative Tract No. 8679 was approved. ~0TION CARRIED. ~NCRO~NT PERMIT NO. 74-9E: Submitted by Future Matic, Inc., proposing to encroach upon a portion of dedicated right-of-way, commonly known as Anaheim Hills Road, north of Santa Ana Canyon Road, lying within a portion of Tract No. 7786. Also submitted was a report by the City Engineer recomending said encroachment permit be approved, subject to the Applicant contacting Pacific Telephone Company, Cable Protection Group and Mr. Warren Dennis, Telephone Company Engineer (776-0303~ prior to commencing any work. RI~SOLUTION NO. 74R-580: Councilwoman Raywood offered Resolution No. 74R-580 for adoption approving Encroachment Permit No. 74-9E, subject to the condition recommended by the City Engineer. Refer to Resolution Book. A I~SOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE TERMS AND ~ONDITIONS OF AN ENCROACRM~NT PERMIT AND AUTHORIZING TRE MAYOR AND CITY CLERK TO gXECUTE SAID ENCROACHMENT PEP. MIT WIT~ FUTURE MATIC, INC. (74-9E). 74-1156 City Hall~ Anaheimt California - COUNCIL MINUTES - November 26~ 1974~ 1:30 P.M. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom COUNCIL MEMBERS: None COUNCIL MEMBERS:~ None The Mayor declared Resolution No. 74R-580 duly passed and adopted. CONTINUED CONSIDERATION - PROPOSED ENVIRONMENTAL IMPACT REPORT~ ANAHEIM. CIVIC CENTER: (Continued from the meeting of November 5, 1974, pending the outcome of the General Election with regard to Proposition H.) On motion by Councilwoman Kaywood, seconded by Councilman Seymour, the City Council continued consider- ation of the environmental impact report for the Anaheim Civic Center to the meeting of December 24, 1974, 1:30 P.M. MOTION CARRIED. UPDATE - ORANGE COUNTY USE PERMIT NO. UP-3560 - BURRIS SAND PIT RECLAMATION PROJECT: Zoning Supervisor Roberts reported that the Orange County Water District. will appeal the Orange County Planning Commission decision on the Burris Sand Pit Reclamation Project to the County Board of Supervisors. The Orange County Water District Board of Directors has also requested their staff to prepare a report listing the various alternatives which might be possible for use of this property and the effects of these. He noted that Mr. Bailey (OCWD) has emphasized the need for this particular site to be used as a percolation pond. Mr. Roberts indicated that if the Council desires to be represented by staff at the public hearing before the Board of Supervisors, they would be happy to comply. City Manager Keith Murdoch noted that it would be extremely important that City staff work with the Board of Supervisors representatives and the Orange County Water District on the possibility of suitable alternatives which are based on some combination of use. He noted that Council also indicated willingness to meet with the Orange County Board of Supervisors on this matter, but felt this meeting should be deferred until the groundwork is prepared and the options are known. By general consent the City Council indicated agreement with the recommendations and direction indicated by the City Manager. SALE OF EXCESS PROPERTY - ANAHEIM UNION HIGH SCHOOL DISTRICT: Zoning Supervisor Roberts reported that the Anaheim Union High School District has declared its intention to sell in excess of twenty acres of property located on the east side of Loara Street, south of Broadway, which was formerly designated as a Junior high school site. Since the Development Services Department has begun to receive inquiries from potential developers regarding the type of development they might be able to achieve on this particular property, the DevelopmentServices Depart- ment wanted to bring this matter to Council's attention. Mr. Roberts described the existing zOning and land uses immediately adjacent to subject property which include an.R-1 residential subdivision to the south in which two streets stub into the south boundary of this property, as well as single-family residential homes across the street to the west. The property immediately north, although vacant, has a resolution of intent to R-3, and to the east lies the Pacific Railroad right-of-way. Mr. Roberts indicated that from'staff discussiOn so far it may be concluded that since this property is immediately adjacent to the single family subdivision and the streets stub into it on the south boundary, it would be likely that these streets would be extended. He inquired whether Council would wish the staff to initiate public hearings for a general plan amendment to study various density alternatives and the impact of these densities. He commented that one of Council's alternatives might be to just wait and consider the matter when a development proposal is received. Councilman Seymour stated that adoption of a general plan amendment indicating the general direction of this property in the future would allow those interested in the property to bid with more reasonableness as they would have an idea as to what they could expect the property to yield. He indicated that he would personally like to see the existing single family residential 74-11J7 Ci}y ~all~ Anaheim~ California - COUNCIL MINUTES - November .26~ 1974~ 1:30 P.H. neighborhood buffered by additional single-family homes and perhaps the density misht be increased progressively moving towards Broadway. He also remarked that the streets to be extended perhaps empty into Loara Street to avoid extending a residential street into a higher density zone. Mr. Roberts advised that staff could prepare soma possible alternatives along the lines described by Councilman Seymour regarding the street alignment, together with some alternative tract designs which would buffer both adjacent existing R-1 developments, and by general consent, the Council authorized staff to take this direction. RESOLUTION NO. 74R-581 - DEEDS OF EASEMENT: Councilwoman Kaywood offered Resolution No. 74R-581 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANA~IRIMACCEPTING CERTAIN DEEDS AND ORDERING THEIR RECORDATION. (D.C.C. Associates; John C. Adams, et ux., Steve Locken, et ux., and Ling-Temco-Vought, Inc.; James G. Stroop, et ux.; Pierre Nicolas, et ux.; Hancock Laboratories, Inc., et al.; Katherine B. Carreon; Florence L. Steelman; Delano R. Lawin, et ux.; Manuel A. Costa; Lusk Corporation; Jaime Deutsch, et ux.; Emma Mager, Arthur E. Hemmerling, et al.; Hancock Labo'ra- tories, Inc.; Vera W. Myers & Raymond G. Simpson; Orange-Euclid Investors, Ltd.; Knott Avenue Christian Church) AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution No. 74R-581 duly passed and adopted. THREE PARCELS OF CITY-OWNED PROPERTY - MIRALONAAND SUNSHINE WAY: Mr. Murdoch reported that three parcels of property were conveyed to the City of Anaheim by the State of California at no cost, which are located approximately at the intersection of Miraloma Avenue and Sunshine Way. Me recalled that in 1973 the adjoining property owner offered to purchase one of these parcels for $3,000,.and the City Council rejected that offer, but indicated they would sell for $7,500. The sale was never completed. Since these parcels are located within Project Alpha boundaries and, therefore, the Rmdevelopment Agency and Commission have some responsibility in redevelopment of same, Mr. Murdoch noted it may be advisable for the City Council to convey these parcels at no cost to the Redevelopment Agency to negotiate for sale to interested developers. Upon being informed by the City Attorney that conveying the parcels would actually require that two sets of deeds be prepared, conveyed and formally accepted, the Council declared their intent to sell subject parcels through negotiations by the Redevelopment Commission and/or Agency, with deeds to be prepared for conveyance once the transaction has been worked out. PURCMASE OF EQUIPMENT: Prior to reporting on informal' bids received for purchase of various budgeted items, the City lianager reported that the City's financial situation as far as purchases are concerned has bean reviewed, and it is apparent that even though the costs for capital outlay items are running over the Budget, there is some flexibility in the remaining purchases, both capital improvements and capital outlay, so that this increase is not that significant at this point. It is, therefore, recommended that the following purchases be authorized: 20 INTERMEDIATE SEDANS FOR POLICE DEPARTMENT: Mr. Murdoch reported on informal bids received for the purchase of 20 intermediate sedans for the Police Department and recommended acceptance of the low bid: VENDOR' TOTAL AMOUNT, INCLUDING TAX, LESS TRADE-INS Santa Ana Dodge, Santa Ana NcPeek Plymouth, Anaheim McCoy Ford, Anaheim AnaheimDodse, Anaheim i~erican Hotors $77,965.14 79,341.54 NO QUOTE NO QUOTE NO QUOTE 74-1158 City Hall~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974~ 1:30 P.M. On motion by Councilman Seymour, seconded by Councilman Pebley, the low bid of Santa Aha Dodge was accepted and purchase authorized in the amount of $77,965.14, including tax, less trade-in value received. MOTION CARRIED. ONE STANDARD STATION WAGON: The City Manager reported on informal bids received for the purchase of one standard station wagon for the Police Department-Traffic Investigation Division, and recommended acceptance of the low bid: VENDOR TOTAL AMOUNT~ INCLUDING TAX~ LESS TRADE-IN Santa Aha Dodge, Santa Aha McPeek Chrysler-Plymouth, Anaheim McCoy Ford, Anaheim Anaheim Dodge, Anaheim $4,392.11 4,719.58 NO QUOTE NO QUOTE On motion by Councilman Seymour, seconded by COuncilman Pebley, the low bid of Santa Ama Dodge was accepted and purchase authorized in the amount of $4,392.11, including tax, less trade-in value received. MOTION C~IED. WEATHER DATA RECORDER EQUIPMENT: The City Manager reported on informal bids received for the purchase of weather data recorder equipment for the Utilities Operations Division and recommended acceptance of the low bid: VENDOR TOTAL AMOUNT~ INCLUDING TAX Meteorology Research, Altadena, Calif. Esterline Angus, Industry, Calif. Hamilton Instrumentation, Industry, Calif. $4,172.43 4,294.64 4,746.36 On report and recommendation of the Utilities Director as to the necessity~and uses for said equipment, on motion by Councilman Sneegas, seconded by Coumcilwoman Kaywood, the low bid of Meteorology Research was accepted and purchase authorized in the amount of $4,172.43, including tax. MOTION CA~IED. REPAIRS TO POLICE HELICOPTER: Mr. Murdoch reported that due to an accident which occurred during a training activity, substantial~damage to the tail section of one of the Police helicopters was sustained, it is estimated that the cost to repair same would be $9,300. He reported that it is recommended this repair be deferred and that interest from other jurisdictions be sought regarding the sharing of expenses and services of the helicopters, in an attempt to work out a joint operation program. Councilman Seymour commented that he hoped, especially since there is now only one helicopter in service, that this aircraft would spend a great deal of time in the canyon area since it is difficult to pOlice that area with ground units. Mr. Murdoch responded that the one helicopter which is available will respond to calls anywhere in its vicinity, but that the City will, of course, be reluctant to use the one aircraft outside of the City Limits. The Council indicated general agreement to deferral of the necessary helicopter repairs as outlined by the City Mamager. CLAIMS AGAINST TME CITY: The following claims were denied as recommended by the City .Attorney and ordered referred to the insurance carrier, on motion by Councilwoman Kaywood, seconded by Councilman Thom: a. Claim submitted by Mrs. Erich C. Walter for d--~ge sustained to vehicle top purportedly resulting from parkway tree being trimmed and not treated after pruning, (weeping on car top and damaging finish) during or about August, 1974. b. Claim submitted by Southern California Gas Compamy for damage sus- tained to gas main at 2880 Miraloma, purportedly as a result of actions of City crew from the Water Division, on or about October 12, 1974. MOTION CARRIED. 74-1159 City ~11, Anaheimt California - COUNCIL MINIngS - November 26a.!974t .1.:30 P.M. In reply to Councilwoman Kay~ood's question regarding the City's abil- ity to save money by absorbing costs of small claims, Mr. Wefts reported that a risk study of the City's liabilities is presently underway, and he would assume that a portion of this would be directed towards the possibility of some type of deductible where the City handles claims under a certain amount. SOUTHERN CALIFORNIA EDISON COMPANY CONDEMNATION NO. 9 - ADDITIONS AND REMOVALS: Report from the Utilities Director advising that they have reviewed the additions and removals transmitted by Southern California Edision Company pursuant to Mr. Burbank's letter of October 31, 1974, and have verified them with review of the inventory maps and a spot check in the field, finding them in proper order. He, therefore, recommends that payment for the net additions for Condemnation No. 9 in the amount of $4,356, be approved. Mr. Watts advised Council that pursuant to the agreement authorized by Council on July 9, 1974, (Resolution No. 74R-332), the City is required to pay for whatever additions there are, less removals, subsequent to the date of the ori$inal inventory, March 5, 1974, and prior to June 28, 1974. He advised that there is no way of knowing in advance what this cost might be. Mr. Murdoch reported that this is a budgeted item. On motion by Councilman Seymour, seconded by Councilman Thom, the City Council authorized payment be made to Southern California EdisonCompany in the amount of $4,356, for the net additions for Condemnation No. 9. MOTION CARRIED. (Funds for this expenditure to be charged to Account No. 350-527-922.51) .P. ESOL.,~TION NO. 74R-582 - AUTHORIZING THIRD AMENDMENT TO AGREEMENT FOR A WORK MANAGE- M~NT ~ROGRAM BETWE~ KAPNER, BOGENRIEF & WOLFBERG, INC. AND CITY OF ANAHEIM (UTILITIES DEPARtmeNT}: On report and recommendation of the Utilities Director, Councilman Seymour offered Resolution No. 74R-582 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE EXECUTION OF A THIRD AMENDMENT TO AGREEMENT FOR A WORK MANAGEMENT PROGRAM IN THE UTILITIES DEPARTMENT ENTERED INTO ON THE 5TH DAY OF JUNE, 1973, AS AMENDED, BETWEEN THE CITY AND KAPNER, BOGENRIEF AND WOLFBERG, INC. Roll Call Vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution No. 74R-582 duly passed and adopted. ,RE, COH~ED ACTIONS FOR ELECTRICAL RATE SAVING - ELECTRICAL REVENUE BOND PROGRAM, AND ~ OF BOND COUNSEL: Memorandum dated November 22, 1974, from the Utilities Director, explaining said reco-~ndations (on file in the office of the City Clerk) was submitted. Hr. Hurdoch prefaced Mr. Hoyt's presentation by advising that the recommendations presented this date appeared to the City staff to be at long last an opportunity for the people of Anaheim, as consumers of electricity, to do something about keeping the rates for electricity down to a minimam. He stated that heretofore these rates have been dependent upon the' wholesale supplier and, of course, still are. The proposal submitted to Council this date provides for a revenue bond election, to issue bonds whichwould be entirely supported from the revenues of the electrical system. Although no savings would be obtained until the power seneration facilities in which the City participates are in service, the earliest date anticipated being 1979-1980, within a relatively short period of time after that, the City should reach the point of an approximate 25I saving in the cost of power to the System. Dependent upon~hat the City Council's feelings are, this 25% saving can be passed entirely onto each consumer. Mr. Murdoch commented that participation in power generation plants is a very costly item since these are multi-million dollar facilities. He emphasized that it is not the proposal of the City of Anaheim to operate any of these 74-1160 City ~a!l~ A~mheim, California - COUNCIL MINUTES - November 26~ 197..~~ 1:30 P.M. facilities themselves; what is proposed is to participate in the capital invest- ment of these units for one basic reason, this being, that a public entity can borrow money for capitalization at lower rates than private ownership. Utilities Director Gordon Hoyt reaffirmed the City Manager's statement that investment in generated transmission facilities is less expensive for the City of Anaheim than for a private entity. He stated that the people in the community, by virtue of being electrical consumers, will pay the bill for these facilities ultimately, no matter who makes the investment, the City of Anaheim or Southern California Edison. The important point of this presentation is that Anaheim can do it much less expensively. Mr. Hoyt referred to his memorandum dated November 22, 1974, page 4, which indicates how it comes about that the City's annual cost would be less than it would be for a Private company. The difference is essentially due to the interest which the City would pay on bonds sold which would be tax exempt revenue bonds, as opposed to taxable bonds or preferred or equity stock by a private company. In addition,*the amount of money to be recovered by a private utility from its customers is regulated by a commission, whereas the amount to be recovered by Anaheim from its customers would be in accordance with regulations set forth by the Anaheim City Council. He cited that according to the best available estimates, the City of Anaheim can borrow money and own property at an annual interest cost of 8.10%, versus a cost of 18~% for a private company. On a capital investment of $150,000,000, there- fore, a private utility such as Southern California Edison, would have to collect $27,750,000 annually to pay fixed capital investment costs, while the City of Anahei~ would need to collect from its customers only $12,150,000 each year. This leaves a difference of $15,600,000 annually, which the citizens of Anaheim could keep in their pockets. Mr. Hoyt indicated that the Anaheim electric utility has, in general, a good reputation. A comparison of maintenance and operation expenses of the Anaheimutility and Southern California Edison indicates that Anaheim is per- forming at less cost and that Southern California Edison charges its customers $23.83 more for comparable services. The comparison further shows that Anaheim performs the above services with three-quarters the number of employees per 1,000 customers employed by Southern California Edison. Mr. Hoyt reported that 76% of the monies collected from the Anaheim Electric Utility rata payers goes to Edison to pay for the bulk power supply. A survey was conducted of power needs from present to 1990 and costs calculated on a monthly basis. The conclu~,imo,~f this survey was that from the time that the first power generation uni~b~e operational and savings begin to accrue, approximately 1979-80 until 1990, the City of Anaheim would Pay $640,000,000 to purchase the power supply entirely from Southern California Edison. If instead, the City of Anaheim participates in some generation and purchases the remainder of bulk power, the costs would be $470,000,000, or a savings.over this period of $170,000,000 (26.5%). Mr. Hoyt indicated the strong support received from the business community for participation in power generation following their th°ro~$h and expert review of the proposals, as evidenced~y the resolution presented to.the Council by the Anaheim Chamber of Commerce at the meeting of September 24, 1974, recom~ending participation in power generation provided~that the anticipated savings are passed along to the rate payers. Mr. Hoyt reported that recommenda- tion for a bond election in March of 1975 is made due to the fact that the Council will be required to make decisions to commit the City to participation in San Onofre, San Joaquin, Kaiparowits and War,er Valley generation projects during the first six months of 1975, and will need funds authorized by the electric rate payer to be able to commit to these plans if the feasibility is established. Mr. Hoyt concluded that the time has come to place the matter before the people, giving them the opportunity to express whether or not they are desirous of saving money for power costs, and woUld recommend that the Council authorize an election for March of 1975 to seek authorization to issUe $150,000,000 in electric revenue bonds to enable the City to participate in these power generating projects. 74-1161 City ~1.1~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974, i:30. P.M. During Council discussion which ensued, Mr. Hoyt reported the following: 1. That the exact wording of the ballot question has not yet been drafted; this would be the responsibility of Bond Counsel. 2. That the $150,000,000 bond issue could be used for participation in electric generation and transmission projects which are either new or existing; and if feasibility of these projects is not established, these funds could be applied to subsequent projects which may be formed. 3. That the $150,000,000 bond issue would enable the City to enter into and receive requested shares in the San Onofre, San Joaquin, Warner Valley and Kaiparowits projects, for an approximate total of 210,700 kilowatts of capacity. The Intermountain Power Project is not anticipated to require construc- tion funds from these electric revenue bonds. The current plan calls for the non-profit Utah Corporation to issue tax exempt revenue bonds and construct that project on the proceeds of these, the security being the physical plant property itself, as well as the contracts with the participants to accept and pay for their share of the output of the project. The cost for Anaheim's share of this project is estimated at $280,000,000 to $285,000,000 and the assurance that Anaheim will be able to obtain power more economically from this plant than from Edison is the fact that the agreement provides that Anaheim will receive 15% of the output of the plant and in return will pay 15% of the annual capital cost, plus those portions of the variable operating costs which result from the power which Anaheim requests. The failure or passage of an electric revenue bond election would not Jeopardize the Intermountain Power Project, however, Mr. Hoyt indicated resounding failure of same would prompt him to seek further direction from Council and re-evaluate the City's participation in same. 4. The breakdown of "Annual Fixed Capital Cost Rate" on page 4 of the ~emorandum shows the variance of 3.3% depreciation for Edison and .90% for Anaheim, since the private utility is governed by a regulatory coasaission which will permit them to recover from their customers 3.3% of its rate base (the money which it has invested in capital); whereas the City of Anaheim needs only to recover sufficient funds to amortize the debt. At the end of 35 years, the project would be presumed to have zero value, having fulfilled its expected life On being informed by Mr. Hoyt that the calculations indicating the potential savings for the City of Anaheim in the memorandum of November 22, taking into account the operation of the Inter~ountain Power Project, with Anaheim receiving as its 15% share a 450,000 kilowatts capacity, Councilman S~y~our stated that it should be made clear to the electorate that the $150,000,000 bond issue they are being requested to approve buys only one-third of the total generation capacity needed to produce the projected total savings of 26.5%. Hr. Hoyt concurred with Councilman Seymour's statement and indicated that by all means the bulk of the power generation would come from the Intermoun- tain Power Project. Additional discussion was directed as to the reason Anaheim appears to he more interested in participating in these power generating projects than other municipalities, to which Hr. Watts pointed out that other cities such as Burbank, Glendale and Pasadena already own a substantial portion of their generat- ing sources, whereas Anaheim is merely entering the field. Hr. Hoyt pointed out that any one of these projects will either go forward or fail with absolute disregard as to whether or not the City of Anaheim participates. If Anaheim does not participate, any municipality or utility company will quickly take over its shares. Hr. Hurdoch noted that from 1930 up until very recently, Anaheim did not have the opportunity to enter into any of these projects because of an exclusive contract which required all power to be purchased from Southern California Edison. The City's objectives during negotiations for the past several years was to attain some flexibility in order to provide power at a lower cost to the citizens of Anaheim. 74-1162 City Hall, Anaheim~ California - COUNCIL MINUTES - November 26~ 1974, 1:30 P.M. Mr. Hoyt further pointed out that several studies of Anaheim's utility needs and costs conducted in the past have reached the same conclusions, i.e., that the City could generate,power at a lower cost than purchasing it from Edison. In reply to Councilwoman Kaywood, Mr. Hoyt outlined the current status of studies into the possible applications of solar, wind, tidal, goethermal power sources. He indicated that with the current proposal the City of Anaheim would not be independent of Southern California Edison for its power supply and may consider an additional project in the future. Councilwoman Kaywood voiced her concern that the consumers and electric utility not forget, if the generating projects go forward and there is an adequate supply of power at a lower cost, that the earth's resources are finite and efforts should be continued to be directed towards conservation and avoiding waste. At the conclusion of discussion, City Manager Keith A. Murdoch read into the record a letter addressed to Mayor Thom from Arthur Young & Company dated November 26, 1974, rendering an opinion as to the tax exempt status of interest paid on debt obligations to be issued by.the City of Anaheim to finance participation in an electric power generation program, as was requested by the Mayor. (Said letter on file in the office of the City Clerk.) Councilman Pebley moved that the City Council approve the recommenda- tion made by the Utilities Director for an electrical revenue bond program to reduce the cost of electricity for Anaheim consumers and authorize employment of O'Melveny and Myers as bond counsel for an electric revenu6 bond election. Prior to voting on the foregoing motion, Mayor Thom offered members of the business community and the public present in the Council Chamber an opPor- tunity to comment on this proposal; no further comments were presented. Councilman Seymour commented that the citizens of Anaheim are being asked to make a decision regarding investment of $150,000,000 based on the future possibility of receiving a return through reduced rates for electricity. While he agreed that there is every possibility this will occur, he stated that because this is projected so far into the future and because of the uncertainties inherent in developing these types of generation facilities, he was of the opinion that the citizens should be offered something more tangible. He suggested that the City consider the possibility of entering or investing as a Joint venture partner with Southern California Edison Company or some other producer of electricity, whereby the City would receive a percentage interest in their generation facilities both current and future. Pursuant to this agreement, the parties would pool facilities and the cost for production of electricity could be averaged, and the City able to purchase power at this cost. In return, Southern California Edison Company would have the availability of $150,000,000 at a much lower cost than they would otherwise be able to obtain. This type of agreement would afford the City the advantage of presenting to its citizens a bond proposition in today's dollars and not projections into 1990. Another benefit would be that the citizens would begin to realize these benefits im~edi- ately, rather than in 1979 or 1980. Mr. Hoyt replied that in the past whenever facilities were purchased from Southern California Edison they insisted that the City do this by Eminent Domain proceedings so as to assure their stockholders that they were not dis- sipating assets. He further reported that the City does intend to enter into partnership with Southern California Edison on everything they propose to build in the future, which would be the non-coal burning types of generating plants. He stated that nothing which is being proposed would preclude investigating Councilman Seymour's suggestion, and in fact the City has done this in a sense when it attempted to intervene at relicensing proceedings of hydroelectric power plants, and could certainly attempt this again. Mayor Thom stated that his concern is that projections so far into the future form a rather skimpy basis upon which the voter can make a decision; that the citizen prefers to deal with what he understands as today's dollars and not savings in 1990. 74-1163 City !iall~ Anahe/~a~ California - COUNCIL MINUTES - November 25~ 1974~ I:30 P.M. Hr. Hoyt emphasized that the difference here is that the individual elector is asking for the product and, consequently, does not have a choice. Someone will provide this electric power and the consumer is going to pay for it. Mr. Murdoch added that they will pay a minimum of $150,000,000 because that is the estimated cost of the power. They will pay this either to the City in the form of bonds or to Southern California Edison. City Attorney Watts noted that Councilman Seymour's suggestion is an example of what is perhaps the principal issue in bulk power supply in the western Onited States, the concept of a power pooling a~ong utilities. Mr. Watts reported on the recom~endation that O'Melveny & Myers be employed as bond counsel and in answer to Councilwoman Kaywood's inquiry regard- ing their fee, s,,m~mrtzed the letter of employment received from this firm as follows: That the firm of O'Melveny & Myers offers their services for drafting of all resolutions, notices and other documents required for election and issuance and sale of bonds; supervision of proceedings and rendition of their opinion that the bonds would be tax exempt. They quote a fee which is based on the principal amount of the bonds sold which, if the election were successful and $150,000,000 worth of bonds ultimately sold, would amount to $90,500. In the event of failure of the bond election, their fee would be $1,500. Hr. Watts assured Council that a draft of the ballot proposition itself would be submitted for their review in sufficient time to make any desired changes. The aforementioned motion made by Councilman Pebley was seconded by Councilman Seymour. MOTION CARRIED. RECESS:, Councilwoman Kaywood moved for a five-minute recess. Councilman Seymour seconded themotion. MOTION CARRIED. (4:20 P.M.) AFTER RECESS:' Rayor Thom called the meeting to order, all Council Members being present. (4:25 P.M.) RESO.I~ION NO. 74R-583 -ARTERIAL HI611~AY FII/ANCING PROGRAH - IMPROVEMENT PROJECTS 1975-76: Councilman Seymour offered Resolution No. 74R-583 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE COUNTY OF ORANGE TO INCLUDE WITHIN THE ARTERIAL HIGHWAY FINANCING PROGRAM CERTAIN HIGHWAY IMPROVEMENT PROJECTS. (1975-1976) (Anaheim Boulevard - Haster Street over- crossing of the Santa Ana Freeway; Fairmont Boulevard - Santa Ana Canyon Road to Canyon Rim Road; and Lincoln Avenue - Sunkist Street to State College Boulevard) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom COUNCIL MEMBERS: None COUNCIL MEMBERS: None The Mayor declared Resolution No. 74R-583 duly passed and adopted. RESOLUTION NOS. 74R-584 AND 74R-585 - FEDERAL AID URBAN THREE-YEAR HIGHWAY IMPROVEMENT PROJECTS: Councilman Sneegas offered Resolution Nos'. 74R-584 and 74R-585 for adoption. Refer to Resolution Book. KE~OLDTION NO. 74R-584: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM R~IESTING THE COUNTY OF ORANGE TO INCLUDE WITHIN THE FEDERAL AID URBAN THREE- YEAR (F.Y. 1973-74, 1974-75, AND 1975-76) PROGRAM THE DEVELOPMENT OF CRESCENT AVENUE. (Euclid to Brookhurst Streets) 74-1164 City Hall~ Anaheim~ California - COUNCIL MINUTES -.November 26~ 1974~ 1:30 P.M. RESOLUTION NO. 74R-585: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE COUNTY OF ORANGE TO INCLUDE WITHIN THE FEDERAL AID URBAN THREE- YEAR (F.Y. 1973-74, 1974-75, 1975-76) PROGRAM THE DEVELOPMENT OF KATELLA AVENUE. (Walnut Street to west of Brookhurst Street) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution Nos. 74R-584 and 74R-585 dulypassed and adopted. RESOLUTION NO. 74R-586 - AGREEMENT WITH PAUL BAUG~AN TO DESIGN CERTAIN ELECTRICAL FACILITIES POR PARKS~ RECREATION AND THE ARTS DEPARTMENT: Councilwoman Kaywood offered Resolution No. 74R-586 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AN AGREEMENT WITH PAUL BAUGHMAN, AN INDIVIDUAL, TO DESIGN CERTAIN ELECTRICAL FACILITIES FOR THE PARKS, RECREATION, AND THE ARTS DEPARTMENT. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution No. 74R-586 duly passed and adopted. RESOLUTION NO. 74R-587 - SANITATION DISTRICT NO. 2 OF ORANGE COUNTY - SANTA AltA REGIONAL INTER£EPTOR SEWER~ GROVE STREET TO ORANGE COUNTY LINE: On recommendation of the City Engineer, and as requested by Fred A. Harper, General Manager, County~ Sanitation Districts of Orange County, California, Councilman Pebley offered Resolution No. 74R-587 for adoption, finding that the proposed Santa Ama Regional Interceptor Sewer, Grove Street to the Orange County Line project may interfere with the attainment or maintenance of air quality standards, but the project is needed to solve a critical water quality problem, and that it is recognized that land use and transportation restrictions may have to be implemented to meet air quality standards. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING TRAT THE PROPOSED SANTA ANA REGIONAL INTERCEPTOR MAY INTERFERE WITHAIR QUALITY STANDARDS, BUT IS NECESSARY TO SOLVE A CRITICAL WATER QUALITY PROBLEM AND RECOGNIZING THAT LAND USE AND TRANSPORTATION RESTRICTIONS.MAY BE NECESSARY TO MEET AIR QUALITY STANDARDS. Roll Call Vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution No. 74R-587 duly passed and adopted. CORRESPONDENCE: The following correspondence was ordered received and filed, on motion by Councilman Thom, seconded by Councilman Pebley: a. City of Costa Mesa - Resolution No. 74-96 - Opposing the Federal Highway Administration and Urban Mass Transportation Administration (FfrWA/UMTA) Draft Guidelines for a Transportation Development Program. 74-1165 City ~kll, Anaheim, California - COUNCIL MINUTES - November 26, 1974, 1:30 P.M. Service: b. Intergovernmental Coordinating Council of Orange County Resolution Los Alamitos - Resolution No. 697 Westminster - Resolution Nos. 1599, 1600 and 1602 Anaheim - Resolution No. 74R-541 Tustln - Resolution Nos. 74-83 and 74-77 Fullerton - Resolution No. 5802 San Juan Capistrano - Resolution No. 74-11-6-2 Costa Hesa - Resolution 74-96 c. Airport Land Use Commission for Orange County - Notice of ~eeting, November 21, 1974. ~ Airport Land Use Commission for Orange County - Minutes of Meeting, November 7, 1974. d. Anaheim Parks and Recreation Commission - Minutes, October 17, 1974. e. Community Redevelopment Commission - Minutes - November 13, 1974. f. Financial and Operating Reports for the Month of October, 1974 for the City Treasurer, Police Department and Engineering Division. MOTION CARRIED. ORDINAN. CE NO. 3376: Councilwoman Kaywood offered Ordinance No. 3376 for adoption.' Refer to Ordinance Book. AN ORDINANCE OF THE CITY OF ANAHEIM REPEALING PARAGRAPH 19 OF SECTION 14.32.190 OF THE ANAHEIM MUNICIPAL CODE AND ENACTING ANEW PARAGRAPH 19 IN ITS PLACE PER- TAINING TO PARKING. (No parking - La Palma Avenue, north side from Acacia Street to Liberty Lane; south side from Anna Drive to Hawthorne Street) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom COUNCIL HI~BERS: None COUNCIL MEMBERS: None The Mayor declared Ordinance No. 3376 duly passed and adopted. ORDIN.~N~CE NO. 3377: Councilman Sneegas offered Ordinance No. 3377 for adoption. Refer to Ordinance Book. AN ORDINANCE OF THE CITY OF ANAgmlMAMENDING TITLE 6, CHAPTER 6.56, SECTION 6.56.010 BY ADDING THERETO A NEW SUBSECTION 6.56.010(4) RELATING TO POOLS AND PONDS. (Exception. provisions of this Chapter shall not apply to swimming pools, fish ponds and other bodies of water larger than one-quarter (¼) acre.) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom COUNCIL MEMBERS: None COUNCIL NEHBERS: None The Hayor declared Ordinance No. 3377 duly passed and adopted. ORDINANCE NO. 3378: Councilman Thom offered Ordinance No. 3378 for adoption. Refer to Ordinance Book. AN ORDINANCE OF THE CITY OF ANAHELMAPPROVINGANAMENDMENT TO THE CONTRACT BETWEEN THE CITY OF ANA~IMAND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA EMPLOYEES' RETIREHKNT SYSTEHAND AUTHORIZING THE HAYOR AND THE CITY CLERK TO EXECUTE SAID AHENDNENT. (amendment excludes police cadets) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom COUNCIL M]~gl~: None COUNCIL H EMBERS: None The Mayor declared Ordinance No. 3378 duly passed and adopted. 74-1166 City Hall~ Anaheim~ California - COUNCIL MINUTES - November 26~ 197~ 1:30 P.M. ORDINANCE NO. 3379: Councilwoman Kaywood offered Ordinance No. 3379 for adoption. Refer to Ordinance Book. AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (72-73-51 (13) - R-H-22,000) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Ordinance No. 3379 duly passed and adopted. ORDINANCE NO. 3380: Councilwoman Kaywood offered Ordinance No. 3380 for first reading. AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (74-75-7 - R-A) AUTHORIZATION - EMINENT DOMAIN PROCEEDINGS - DEL GIORGIO ROAD: City Attorney Alan R. Watts referred to the previously discussed recommendation that the City Council authorize condemnation for the purpose of installing a water line along Del Giorgio Road. He reported that on further inspection it appears Del Giorgio Road provides the only access to the school under construction on adjacent property, and, consequently, the School District does not have access to that property over a public road. Mr. Murdoch'stated that staff would recommend that the City take the responsibility for the condemnation to install the water main and for the neces- sary right-of-way, sharing the costs of same via an agreement to be negotiated with the School District before filing said Eminent Domain proceedings. Mr. Gene Tutt, 1400 North Sycamore, Santa Ana, representing the archi- tect for the School District, related that when his firm originally contacted~ the City as to the status of Del Giorgio Road, upon receiving the commission to design the Junior high school which is now under construction, they were informed that the road had been dedicated to a 40-foot width for 1,000 feet. They pro- ceeded with plans and in accordance with one of the City of Anaheim conditions of approval for the project planned to design and construct street improvements and sewer line in Del Giorgio Road, as well as to dedicate an additional 7 feet on the west side of Del Giorgio Road for an ultimate street width of 54 feet. In compliance with City conditions, the School District also went on record that they would not require water service until July 1, 1974. This project was bid and a contract awarded which included the installation of street improvements. The contractor was notified that he would have to supply his own water until July 1, 1974 to which he agreed. Further, coincidental with the award of contract, Mr. Tutt reported that he was contacted by Mr. Del Giorgio's Attorney who notified him that Del Giorgio Road was a private drive. Subsequent to this, he reexamined the map in the City Right-of-Way Division which did indicate that the road was dedicated; however, on checking with the title company, it was ascertained that the road does belong to Mr. Del Giorgio. He further related that he discussed the matter with the McCarthy Company who, up until recently, had an option on the Del Giorgio property and was agreeable to make the required dedication for the roadway once they had title to the property. However since their withdrawal of the zoning petitions and tentative tract map (See Minutes of Council Meeting held November 19, 1974), this resolution of the problem is no longer possible. As a result of the delay and due to the fact that water has not been provided as of JulY 1, 1974 as originally agreed, the contractor has now submitted requests for extra costs associated with the school construction. Mr. Tutt advised that there are no funds available from the School District for acquisition of right-of-way for this road. He stated that the scope of the project was actually reduced to bring it within the limits of money available. \ 74-1167 City .~11t Anahehut California - COUNCIL M~NUTES - November 26~ 1974~ 1:30 P.M. He concluded that the School District is willing to be responsible and had contracted for street improvements on Del Giorgio Road, but vould like'the City of Anaheim to acquire the necessary right-of-way. Councilman Sneegas inquired whether Hr. Del Giorgio has been contacted about sale of this property as this should, in his opinion, be the City's next step. He stated that he personally would be agreeable to authorizing condemna- tion proceedings only if Mr. Del Giorgio w~shed these and would prefer to negoti- ate for the property on a willing-buyer and willing-seller basis. He stated that he would be opposed in principle to the condemnation because he did not feel the City should force Mr. Del Giorgio into a position of selling. Councilman Pebley pointed out that if one of the proposed McCarthy Company projects had been approved, this situation would not have occurred. Mr. Watts suggested at one point in the conversation that this matter be continued for one week, to whichMr. Tutt responded that any further delays may result in the School District incurring substantial damages. Mr. Hurdoch explained that in these situations it is the usual Pattern for the City to have the authorization to condemn when they begin negotiations for purchase since this clears the situation as far as taxes are concerned for the property o~er. ~SOLUTION NO. 74R-588' Councilwoman Kaywood offered Resolution No. 74R-588 for adoption, authorizing commencement of Eminent Domain proceedings to acquire the necessary right-of-way for Del Giorgio Road. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THE NECESSITY FOR AND DIKECTING THE ACQUISITION BY EMINENT DOMAIN OF REAL PROPERTY FOR RDAD AND PUBLIC UTILITY PURPOSES. (DEL GIORGIO) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL HEHBERS: COUNCIL HEHBERS: COUNCIL HEHBERS: Kay~ood, Seymour, and Thom Pebley and Sneegas None The Mayor declared Resolution No. 74R-588 duly passed and adopted. REPORT - STATUS OF POSSESSORY INTEREST TAX REFUND: City Attorney Alan Watts reported that a Jud~ent and some stipulations vtth regard to the possessory interest tax ·atter on the Stadiumwere filed, and he ~uld anticipate that as soon as the Jud~ent is sisned, the funds should be forthco~tn$ from the County, ~ost likely before January 1, 1975. He reported that the refund expected should amount to between $750,000 and $800,000. RESOL~, !ON NO. 74R-589 - AUTHORIZATION TO UTILIZE COMMUNITY DI~,VELOpI~NT ACT FUNDS FOR PLANNING: On report and recommendation of the City Manager, Councilman Seymour offered Resolution No. 74R-589 for adoption, authorizing the City of Anaheim to incur costs related to planning prior to spending of Co~unity Development Act of 1974 Funds. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHELMREQUESTING THAT 10% OF ITS GRANT APPLIED FOR PURSUANT TO THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 BE ALLOCATED FOR PLANNING AND APPLICATION PURPOSES. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL HEHBERS: COUNCIL ~I/BERS: COUNCIL NENBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Mayor declared Resolution No. 74R-589 duly passed and adopted. 74-1168 City Hall~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974~ 1:30 P.M. RESOLUTION NO. 74R-590 - AGREEMENT BETWEEN THE CITY OF ANAflEIMAND EMPLOYMENT DEVELOP- MENT DEPARTMENT~ STATE OF CALIFORNIA: Mr. William Hepburn, Manpower Planner, reported on the proposed agreement between the City of Anaheim and State of California establishing a Job Development and Recruitment Center. He stated that this resolution pertains to that portion of the project to be carried out by the Employment Development Department and indicates they will provide staff and access to the job bank for current openings on a daily basis. He noted that there are corrections to the proposed budget to delete $200 for a microfiche reader and to remove costs for postage and supplies from the Employment Develop- ment Department. The reader has been obtained at no cost and it is proposed that the City will provide the space for this Center, as well as postage, sup- plies, telephone, etc., from the funds received. These corrections amend the total of the budget to $14,365. RESOLUTION NO. 74R-590: Councilman Seymour offered Resolution NO. 74R-590 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND AUTHORIZING THE EXECUTION OF A SUBGRANT AND SUPPLEMENT THERETO BETWEEN THE CITY OF ANAHEIM AND TIlE STATE OF CALIFORNIA, EMPLOYMENT DEVELOPMENT DEPARTMENT RELATING TO THE ESTABLISHMENT OF A JOB DEVELOPMENT AND RECRUITMENT CENTER. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas and Thom COUNCIL MEMBERS: None COUNCIL MEMBERS: None The Mayor declared Resolution No. 74R-590 duly passed and adopted. SOCIAL SERVICES CENTER PROGRAM: The concept of a Social Services Center with the objective of providing local citizens with a vehicle capable of coordinating existing social services with the unmet needs of the community, prepared by Joe Garza, Community Relations Representative, was submitted for Council con- sideration. Mr. Garza was present and offered to answer Council questions. Councilman Seymour requested information regarding the financing of the facility, to which Mr. Murdoch explained that the total proposed budget is $31,300. If the City goes forward with the Job Development and Recruitment Center as outlined above, which would be located within this proposed center, approximately one-half of the cost of rental of the facility would come from that program. The paid manpower included ($18,300) would come from C.E.T.A. Funds, but it is es£imated that an additional $4,000 could be supplied by C.E.T.A. for expenses such as partitioning of offices, telephone and utilities. In addition, Mr. Murdoch suggested that the City apply for funds from County Revenue Sharing for this project, and if successful, this should make up all or nearly all of the remainder of the proposed budget. Once the City has received approval of the Community Development Act plan, some of these funds might also be applied. Councilman Seymour stated that he felt' the program as outlined is an outstanding example of.creativity, providing services to meet serious citizen needs and, at the same time, the financing of same is not directly attached to normal City revenues. He commended both Mr. Garza and Mr. Murdoch for a fine job and remarked that he would like to see more such programs. Councilman Seymour moved that the City Council authorize and instruct staff to proceed with funding applications to implement the~Social Services Cen- ter Program as outlined and presented in the report prepared by Mr. Joe Garza, dated November 18, 1974 (on file in the office of the City Clerk). Councilwomen Kaywood seconded the motion. MOTION CARRIED. In reply to Councilwoman Kaywood, Mr. Murdoch stated that there are several possible locations for the Center in the downtown area of Anaheim, where 74-1169 City ~11~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974~ 1:30 P.M. it is felt important that this Center be located. There are vacant buildings which may be leased and also a City-owned building currently under lease ~0 a tenant who is in arrears. By general consent, in reply to Mr. Nurdoch, the City Council indica- ted they would be in favor of this Center opening as early as possible. RESOLUTION NO. 74R-591 - PLACING P.E.P. EHPLOYEES UNDER.STATB CONPENSATION INSURANCE FUND: Councilman Sneegas'offered Resolution No. 74R-591 for adoption, Refer to Resolution Book. A R~SOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A WORKHEN'S COMPENSATION INSURANCE POLICY FOR EMPLOYEES HIRED PURSUANT TO THE ~MERGENCY EMPLOYMENT ACT OF 1971. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL M~HBERS: COUNCIL MEHBERS: COUNCIL HEHBERS: Kaywood, Seymour, Pebley, Sneegas and Thom None None The Nayor declared Resolution No. 74R-591 duly passed end adopted. SANTA BARBARA NEWSPAPER VENDING MACHINE DESIGN AND REGULATIONS: Mr. Murdoch reported that in accordance with the request made by Councilwoman Kaywood, staff has contacted the City of Santa Barbara and has learned that they require newspaper vending machines, which are supplied by the newspaper companies, to be placed on structures constructed by the City in the downtown plaza area as a part of the redevelopment activity. It is, therefore, suggested that this matter be dis- cussed with the Redevelopment Department. He further reported that photos of the structures, as well as plans and specifications have been requested. FINANCIAL STATUS OF THB CITY: Mr. Nurdoch s,,-~rized that last week the Finance Director reported on the financial situation as it pertains to Phase I, Civic Center construction and also reported that as far as total revenues and expendi- tures are concerned, up to this point, the City is in a reasonably good position for the current Fiscal Year. There is a lag in the amount estimated from pro- posed water and electric rate increases, which were not approved, but there are some contingencies which could make up a portion of this differential in electric rates if the situation on fuel cost increases becomes worse than has been experi- enced, these being: anticipated refund of possessory interest taxl accumulated excess in Series "A" bond revenues in the amount of $930,000, which would be sufficient to defer payment on these for one year. In addition, Hr. Hurdoch reco~ended that the Council consider and discuss with the Redevelopment Commis- sion the sale to them of the various parcels accumulated for parking lots and other purposes in the downtown area which are within Project Alpha boundaries and which the City has been holding pending redevelopment activity. A very rough estimate of the potential value of these properties is $1,000,000, accord- ins to the City Riiht-of-Hay Division. Because of these outlined contingencies, Hr. Hurdoch stated that it is suggested that the Council defer any decision regarding an increase in water or electric rates to January 1, 1975. It is not necessary that the rate increases be implemented at this point to meet the City's obligations since these back-up funds are available. In addition he advised that he is analyzing the major pur- chases within the Budget, both capital outlays and improvmments, with Department Reads, and some further recommendations will be presented to Council. Councilman Seymour stated that while he is eager to push forward with Phase I constructionof the Civic Center, he would be, on the otherhand, reluc- tant to take this step if it meant that 45 days or so later, the City might be faced with inevitably increasing the electric and water rates. He stated that he would, therefore, like to have, to the greatest degree possible, assurance that this rate increase will not be necessary for the remainder of the current Fiscal Year. He indicated that he did not wish to be placed in the position of having to increase these rates. 74-1170 City Hall~ Anaheim~ California - COUNCIL MINUTES - November 26~ 1974~.1:30 P.M. On being informed by Mr. Murdoch that any decision on a parking struc- ture at the Convention Center would have no effect at all on the funds under discussion, Councilman Seymour stated that the only further assurance he would require would be as accurate a projection as possible from the Utilities Director, regarding his ability to return to the General Fund the amount which has been budgeted as expected revenues from the utility. Mr. Murdoch pointed out that if all of the future fuel cost adjust- ments occur at the level forecast by Southern California Edison, the City would not have sufficient funds to transfer to the General Fund as budgeted. There is, however, no way of knowing how accurate the Edison forecasts are, and the City cannot use anything other than these Edison projections since these are all there is to go on month by month. Councilman Seymour emphasized that the 1.6 million dollars which was the deficit forecast on August 27, 1974 when the rate increases were deferred has increased to 3.2 million dollars by November 1974, to which Mr. Murdoch responded that this is true only if the extreme situation forecast bY Edlson does, in fact, occur. The City's experience has been that these estimates were pessimistic. Councilman Seymour stated that a doubling of the projection in three months indicates that the projections are inaccurate or the situation extremely volatile, to which Mr. Murdoch remarked that with a total item as high as $36,000,000, it does not take much of a percentage deviation to create a million dollar difference. During further discussion, both Councilman Seymour and Mayor Thom indicated that they felt it imperative to the success of the electric revenue bond issue that current electric rates be held. They noted that Anaheim's residential rate is currently 9% below Southern California Edison. Mr. Murdoch pointed out that he felt it important during this interim period to January 1, 1975, that the Council discuss their various priorities. He noted that an opportunity will be afforded at the forthcoming seminar with Department Heads. Areas which are planned for discussion include possible reductions in service levels; possible slow down in time tables. Councilman Seymour suggested also that alternative financing methods be discussed at this time. Councilwoman Kaywood wished to make it very clear that she would be upset with increases in electric and water rates because these affect those people on low and fixed incomes so badly, but she would not favor allowing the electric rate situation to reach the point where funds are coming from the General Fund to support the electric utility, rather than the opposite. She stated that if it becomes essential, she would not think it unreasonable to raise the rates somewhat. Mr. Murdoch assured Councilwoman Kaywood that even with the worst pic- ture they get from Edison, the City would not be in this danger during the cur- rent Fiscal Year. He indicated that there is no intention of supporting the electric utility from the General Fund. Councilman Seymour indicated that he felt the Council should pursue the alternative of sale of those City-owned parcels in the downtown area to the Redevelopment Agency, and Mr. Murdoch stated this would be discussed with the Commission. Mr. Murdoch reviewed with Council a comparison prepared of revenues received during Fiscal Years 1973-74 and 1974-75 and pointed out that sales taxes are on target with last year because no increase was estimated, and this indicates that sales are down. All of those revenues which are closely aligned to development are substantially under what has been estimated. An overall analysis shows that the City appears to be Just a little under 1/3 of the Budget estimates. 74-1171 City Hall, Anaheim~ California - COUNCIL MINUTES - November 26.~ 1974t 1:30. P.M. Mr. Murdoch further noted that a tabulation has also been prepared of the unfilled budgeted positions and those terminations which have occurred' in the interim, which will be reviewed with Department Heads. At the conclusion of discussion, by general consent, the Council indi- cated agreement with deferral of decision on electric and water rate increases and Phase I, Civic Center construction to January 1, 1975. RESOLUTION NO. 74R-592 - GREENWICH i~. 2 ANNEXATION (UNINHABITED}: Pursuant to authority granted by the Local Agency Formation Com~ission Resolution No. 74- 149, Councilwoman Kaywood offered Resolution No. 74R-592 for adoption. Refer to Resolution Book. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIHAPPROVING THE ANNEXATION TO THE CITY OF ANAHEIM OF THE TERRITORY KNOI~N AND DESIGNATED GREENWICH NO. 2 ANNEXATION. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL HEMBERS: Kaywood, Seymour, Pebley, Sneegas and 'Thom COUNCIL MEMBERS: None COUNCIL MEMBERS: None The Mayor declared Resolution No. 74R-592 duly passed and adopted. VACANt!ES - ANAHEIM GREENBELT COMMITTEE: Councilman Sneegas advised that there are currently three vacancies on the Anaheim Greenbelt Committee, Anaheimbeing entitled to five' citizen appointees, two of whom are still serving. RECESS - EXECUTIVE SESSION: At the request of the City Manager, Councilwoman Kaywood moved to recess to Executive Session to discuss personnel matters. Councilman Seymour seconded the motion. MOTION CARRIED. (5:40 P.M.) AFTER RE~ESS: Mayor Thom called the meeting to order, all Council Members being present, with the exception of Councilmen Pebley and Sneegas. (7:10 P.M.) ADJOURNMENT: Councilman Seymour moved to adjourn. Councilwoman Kaywood seconded the motion. MOTION CARRIED. Adjourned: 7:10 P.H. Deputy City Clerk