Loading...
2006/07/11 ANAHEIM, CALIFORNIA CITY COUNCIL REGULAR MEETING OF JULY 11,2006 The July 11,2006 City Council Regular Adjourned meeting was called to order at 3:15 P.M. in the Council Chambers of Anaheim City Hall, 200 South Anaheim Boulevard. PRESENT: Mayor Curt Pringle, Council Members: Richard Chavez, Lorri Galloway, Bob Hernandez and Harry Sidhu. STAFF PRESENT: City Manager Dave Morgan, Assistant City Attorney Christina Talley, and City Clerk Sheryll Schroeder. A copy of the agenda for the July 11 th meeting was posted on July 7, 2006 at the City Hall exterior bulletin board. THE PLATINUM TRIANGLE SPECIAL DISTRICT Natalie Meeks, Deputy City Engineer, reported since the December 20th Council presentation on the Platinum Triangle, staff had worked to implement the financing plan to address the infrastructure improvements necessary to support the developments envisioned for that area. Rick Kreuzer, KFM Engineering, explained the four objectives of the plan were to delineate the backbone improvements needed to address the planned development intensities, to take those improvements and quantify costs, to develop a schedule for construction of those improvements and to calculate the cash flow needs. He stated specific improvements included in the plan would address median and parkways improvements, street widenings, wider parkways, property acquisition associated with the widenings, pavement striping, landscaping, bus shelters, streetlights, traffic signals, sewer capacity, drainage improvements, the water system and electrical system and some undergrounding of utilities. The improvements were then separated into buildable projects to provide flexibility as developments came on line. Referring to a picture depicting Katella Avenue, Mayor Pringle remarked he had asked that that discussion with Caltrans be pursued for landscape improvements to the two Caltrans right-of-way segments to ensure they were consistent with the surrounding improvements, especially as those areas were an entryway into the Platinum Triangle exiting the freeway. Ms. Meeks stated the City continued to work with Caltrans to try to improve their landscaping and maintenance efforts and discussed the possibility of grant funding being too restrictive for Caltrans-owned areas. Whether City funding or other mechanisms could be utilized, Mayor Pringle requested those Caltrans areas not be overlooked; Mr. Morgan concurred. Mr. Kreuzer pointed out the bottom line construction costs would be approximately $120 million and $164 million in right-of-way costs for a total in 2006 dollars of $184 million to fund the entire backbone infrastructure. He also provided an eight year schedule for completion of the improvements, breaking each project out individually with its own separate timeline. He indicated the fire station project had been added since the December 2005 presentation and was now a part of the improvements. In addition, a chart had been provided which applied the cash flow over the eight year program. He noted engineering and construction costs had been escalated at three ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 2 percent per year and right-of-way costs escalated at five percent per year for a total of approximately $207 million to implement the program based on this schedule. Andrea Roess, David Taussig & Associates, provided details on the proposed financing district which would enable the City to fund the public infrastructure improvements. She stated Council had approved the implementation plan last December which discussed the proposed mechanism to fund the improvements which included a Mello Roos Community Facilities District (CFD) for the properties within the "core" of the Platinum Triangle and an Assessment District (AD) to fund the infrastructure within the outer ring of the Triangle as well as an AD to fund the maintenance for both the core and the outer ring properties. She added, at the request of the Finance Department, a component had been added to fund the on-going police and fire services not addressed in the feasibility study. Lastly she stated due to timing considerations, a CFD would be established for the Stadium Lofts project. In all, she indicated there would be five proposed financing districts, the two CFD's, one for Stadium Lofts and one for the core infrastructure improvements, two maintenance assessment districts, one for the core and one for the outer ring properties, and one capital improvement assessment district for improvements in the outer ring areas. Ms. Roess stated there was also a process whereby the core district boundaries could be amended to include other neighboring properties that might receive benefits in the future. Charts were provided to Council outlining specific details of the core CFD and the outer ring assessment district and how each of the districts would work together and which maintenance or service items were funded through each district. She added there was a potential of other overlapping districts as some other property owners within the core had expressed an interest to fund their own individual CFD, but since their development was further back, they would participate in the core CFD and the assessment districts and would establish a 3rd district that would fund their individual non-backbone requirements. She stated the rate and method of apportionment was the document that would explain to property owners and developers and Council how the taxes were actually calculated each year. The taxes were estimated at a range from $800 to $3,800 per unit based on the unit size and non-residential property was estimated to have a tax of $1.90 per square foot. These taxes would not escalate and would be used to pay debt service on the bonds issued to fund the public infrastructure. She indicated there would also be a maximum on Tax B to pay for police and fire services that were estimated at $350 per unit and that rate would escalate with the CPI to enable the City to be able to fund those on-going services for the long term. Mayor Pringle asked whether this tax referred to police and fire services rather than police and fire capital costs. Ms. Roess stated the fire station was in the infrastructure component and Tax B would fund the actual costs of officers and on-going operations. Questions were asked and discussion held in detail on the methodology related to Tax B. Ms. Roess would provide the fiscal impact analysis to Council which explained the basis of Special Tax B. Mayor Pringle commented he would need the additional information to review Tax B as this was the first time he had heard it proposed. Ms. Roess provided a timeline for the steps necessary for the formation of the various financing districts. Natalie Meeks added staff would begin a series of public outreach with different groups, the first one being held next week with the core property owners. She added a link to the City's website had been added to provide information on the financing districts. Mayor Pringle asked how votes were determined in both districts; Andrea Roess indicated on the CFD's there would be landowner election based on the number of acres of each property owner and on the AD's there would be a ballot weighted based on the property owners level of assessment. It was pointed out ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 3 the City as a taxpaying landowner would have a number of votes on the CFD which would guarantee a 50 percent approval. Mayor Pringle inquired if improvements on Douglass Street adjacent to ARTIC were included; Natalie Meeks replied the south leg of Douglass was not included in any of the bonds. Mayor Pringle stated he had asked the same question on Douglass Street as he had on the Caltrans properties and was not aware they would be excluded from the cost assessment and expressed concern as to why properties which had received added development benefits in terms of a high density office overlay were omitted from sharing in the costs. Ms. Meeks indicated they should be part of the financing for the improvements and would be through the assessment district but to a slightly lesser degree as studies had determined it was the residential and mixed use that had a higher impact on the area. Discussion continued on this issue. Mayor Pringle pointed out that Lewis Street would be extended and connected to the bridge at Gene Autry Way and that cost would not be borne by all who received a benefit from the extension. He stated the intent of a CFD was to recover public improvement costs where use was being intensified, such as at the corner of Lewis and Katella. Mr. Harrington indicated the firm would go back and take another look at that area as he was not sure there was a full awareness that some of the increased use opportunities extended that far. Mayor Pringle commented he wanted equity in the costs to ensure all were being treated fairly. Further discussion on this issue continued. Mayor Pringle stated, if Council concurred that it made sense to alter direction, what would be the next step? City Manager Dave Morgan acknowledged there were good questions raised and after getting Council's reaction, it made sense to rethink some of the questions raised and review the analyses and come back to Council with additional ideas. He added the City was interested in getting this right the first time and asked Natalie Meeks how that would fit into the timeline. Natalie Meeks responded the goals and the policies of the facilities districts would not be affected by a recalculation of the spread and could move forward this evening. There was also a resolution of intention for the Stadium Lofts CFD on this agenda which would not be impacted as well. She indicated the timeline would stay on schedule and clarifications or revisions would be presented to Council before the August 8th meeting. Mayor Pringle stated the only area he would ask staff to contemplate putting in the CFD would be the area south of Katella between Gene Autry and Katella. Additionally, he added he was not enamored by Special Tax B as he had a concern in extending the cost of providing police and fire service forever. He indicated it was one thing to discuss paying for the capital costs of improvements but to require every resident to pay more for police and fire services than any other resident in the City of Anaheim stretched his comfort level. Mayor Pringle further stated he did not think all of the costs incurred for police and fire service should be the responsibility of residential units in the Platinum Triangle with all the other activities taking place there including commercial, restaurants, other type of resort activities and recreational activities. Mr. Morgan indicated staff would take a look at that. Mayor Pringle asked if Council could approve the resolution of intent but could also decide to amend the costs associated with police and fire sometime in the future. Mr. Harrington responded it could be adopted now and amended later by reducing the tax at the time of the resolution of formation. And lastly, Mayor Pringle stated the City needed to be fair with the property owners in the outer ring related to their assessment district and their taxes. He felt the properties that accessed off of Cerritos would not be receiving benefit from any activity in the Platinum Triangle and should not be taxed just because they fall within the Triangle boundaries. Mr. Harrington stated that would be worked through during the engineer's report because the taxes ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 4 levied must be proportional to the benefit. The Mayor remarked it would have to be proved to him that any of the cui de sac properties that enter off Cerritos would receive a greater benefit than the immediate property owner to the north. Council Member Chavez asked that a solid funding source would be found to insure there would be adequate police and fire protection should Tax B be modified or eliminated. Council Member Galloway concurred and asked if the safety in-lieu fees could be increased to handle the operations as well. Dave Morgan remarked staff would first look at the fiscal impact analysis methodology and acknowledged he understood the need for a funding source. Mayor Pringle commented he was not sure a funding source must be found as the property taxes and other general taxes that came to the City via new development should pay for police and fire costs and that there had not been a policy in place which stated every residential unit had to pay for their public safety costs. Council Member Sidhu wanted to insure the Stadium Lofts development would be given the best tax estimates to disclose to buyers as the units would be going on sale soon. Andrea Roess indicated the Stadium Lofts district would be formed before any closing sale and a rate and method would have been adopted by then. She added assessment district would not be formed until the end of the year and the Lofts would be given a best estimate of those charges. ADDITIONS/DELETIONS TO CLOSED SESSION: NONE PUBLIC COMMENTS ON CLOSED SESSION ITEMS: NONE Mayor Pringle recessed to Closed Session at 4:45 P.M. CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: City of Anaheim v. Angels Baseball, LP, et aI., Orange County Superior Court Case No. 05CC01902. The Council session was reconvened by Mayor Pringle at 5:38 P.M. Invocation: Council Member Galloway FlaQ Salute: Mayor Pro Tem Chavez Presentations: Recognizing participants in the Mills Act Program - Elisa Stipkovich, Community Development Director introduced the Mills Act program participants, indicating it was a program which allowed a property tax benefit on an historic home if maintained in accordance with the Department of Interior standards. She added the Mayor would like to encourage more than 30 participants each year and for the City to seek ways to enforce the historical quality of the home on a long-term basis. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 5 Acceptance of Other Reco,mitions (To be presented at a later date): Recognizing the Republic of Korea Mayor Pringle stated Congressman Ed Royce was working with a delegation from South Korea to pay a visit to Anaheim in an official capacity over the next week and this recognition would be presented to them at that time. At 5:51 P.M., Mayor Pringle called to order the Anaheim Redevelopment Agency and the Anaheim Housing Authority for a joint public comment session. ADDITIONSIDELETIONS TO ANY OF THE AGENDAS: Item 5 removed from Housing Authority consent calendar for further presentation by staff. The resolution titles reflected in Item No. 27 and Item No. 31 would be read into the record in reverse per advice of the City Attorney. Item No. 45 and Item No. 46 would be withdrawn from the agenda at the request of the applicants. PUBLIC COMMENTS (ALL MATTERS EXCEPT PUBLIC HEARINGS): Bobby Lee Flores, resident, offered an apology on his past comments. Gordon Walker, referring to Item No. 45, appreciated the Olson Company withdrawing their appeal. William Fitzgerald, resident, opposed Council's actions on various matters. James Robert Reade thanked Mayor Pringle for his leadership. Melissa Schultze, resident, expressed concern with Servite High School expansion citing traffic and parking issues. Alma Ramirez addressed a number of political concerns. Gloria Mahai, resident, also expressed concerned with Servite High School plans for expansions believing it would negatively impact the surrounding neighborhoods. Jill Schwan, resident, had met with Servite administrators and was not satisfied with results of that meeting. Anna Lee Maiser, resident, was concerned over the possibility of taking homes adjacent to Servite High School for any expansion. Floyd Connors indicated the rumors occurring over the Servite High School expansion had cost him the sale of his home. He indicated Servite was willing to meet with residents to dispel the rumors. Mayor Pringle remarked no plans for expansion of the Servite High School had been filed with the City of Anaheim and neither he nor any of the Council Members had any knowledge of future plans. He indicated Servite had come to the Planning Commission to add two additional portable class rooms in their parking lot and was required to amend their conditional use permit to do so. At that time, he noted, there had not been a request to increase the population of students attending the campus and the conditional use permit still contained a limit on the number of students able to ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 6 attend the high school. He recommended residents meet with Servite administrators to have their questions or concerns answered. Pete Bowen, President of Servite High School, indicated while the school had been in existence for 48 years, he was new to the position. He understood there were two issues surrounding the school, a concern about traffic, parking and trash and future expansion. He stated the school was taking measures to address the traffic and parking problems quickly and effectively including educating the students on the importance of proper driving and parking techniques and increasing supervision when school lets out this fall. He added a neighborhood contact would be established who would quickly and decisively address any issues or problems the neighbors raised. He spoke of meeting with some neighbors and inviting other neighbors in the community to meet. Related to Servite's future plans, he stated there were no definitive future plans in place. The school had discussed hundreds of concepts for the future of the school and some had been put to paper to analyze the possibilities. He stated whether a particular concept would work depended on factors such as property, fund raising and City approval and that it would not make sense to depend on factors such as the sale of properties which Servite could not control. He indicated executing a future plan would take 10 to 30 years. He stated the goal was to create a future that benefited students, the City of Anaheim and the neighbors and that a key part of all future concepts was minimizing or eliminating the impact of traffic, parking, trash and lighting on neighbors. Mr. Bowen reiterated there were no set plans established for Servite at this time, however, staff had taken concepts and put them on paper for analysis only. Mayor Pringle encouraged meeting with members of the community to receive their input and allay their concerns. Lucy Dunn, President of the Orange County Business Council, spoke in support of the Jamboree Corporation's affordable housing development, indicated the top three issues for Orange County businesses in attracting a good work force was good jobs, education and housing for the full breadth of the population. Council Member Chavez spoke to the erroneous statements made by a speaker during public comments. At 6:30 P.M., with no other public comments offered, Mayor Pringle recessed the Anaheim Council meeting to consider the Anaheim Redevelopment Agency agenda. Council session was reconvened at 6:55 P.M. CONSENT CALENDAR: Council Member Hernandez removed Item No. 18 for further discussion; Council Member Galloway removed Item No's. 27, 32 and 35. Council Member Sidhu pulled Item No. 34 for discussion. Council Member Galloway moved to approve the balance of the consent calendar Items 7 - 36, seconded by Council Member Hernandez to waive reading in full of all ordinances and resolutions and to approve the following in accordance with the reports, certifications a Roll call vote: Ayes- 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 7. Receive and file the Public Utility Board minutes of May 4,2006 and the Housing and B105 Community Development Commission of May 17, 2006. 8. Approve the Subdivision Agreement of Tract Map 16974 located at 648 S. Magnolia 4100 Avenue. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 7 9. Approve the Final Map and Subdivision Agreement of Parcel Map No. 2002-205 located at 4101 1753 South Clementine Street. 10. Award multiple master agreement contracts for electrical construction, maintenance, repair 4102 and immediate response, and authorize the General Manager of the Public Utilities 4103 Department to administer said master agreements. 4104 2737 2736 2735 11. Approve an agreement for financial assistance for repair of Pegasus Street and increase 4105 the Department of Public Works' FY 2006/07 expenditure appropriation by $60,000. 12. Approve the Fiscal Year 2005/2006 write-off of uncollectible miscellaneous accounts D128 receivable totaling $597,653.97. 13. Accept the low bid of Signature Flooring Incorporated, in the not-to-exceed amount of D180 $129,201, for the purchase and installation of carpet tiles for the Public Works Department, Facility Services Division in accordance with Bid #6773. 14. Waive the sealed bid requirements of Council Policy 306 and ratify the issuance of a 2882 purchase order to Fujitec America, Incorporated, for $29,820 for maintenance fees for elevators/escalators at the Convention Center; authorize the issuance of a change notice to Fujitec America to increase the amount of the master agreement by $100,000 thereby bringing the not-to-exceed amount to $350,000 for maintenance and repairs for the escalators/elevators for this year and the remaining renewals, and the Purchasing Agent to exercise three remaining renewals options, all in accordance with Bid # 6536. 15. Accept the bid of System Spec, Incorporated, in a not-to-exceed amount of $153,250 D180 (including tax), for the purchase and installation of equipment and furnishings for the Integrated Resources Real-Time Operations Center for the Utilities Department, all in accordance with Bid #6766. 16. Authorize the issuance of a change notice to Anaheim Transportation Network to increase 2763 the amount of the master agreement by $25,000 thereby bringing the not-to-exceed amount to $45,000 for tram services for the Convention Center and authorize the Purchasing Agent to exercise renewal options in accordance with the agreement. 17. Review the need for continuing the local emergency heretofore proclaimed by the Director D175 of Emergency Services as ratified by City Council Resolution No. 2005-17, and the subsequent orders issued pursuant thereto, concerning land movement and property damage in the vicinity of 357,365 and 373 Ramsgate Drive in the City of Anaheim, and, by motion, determine that the need for continuing the local emergency exists. 19. Approve a one-year renewal of the existing agreement with Global Energy Decisions, Inc., 2734 (formerly Henwood Energy Services, Inc.), with two, one-year renewal options to extend the licensing agreement for software to the Public Utilities Department in an amount not to exceed $235,000, plus applicable sales tax, over the three-year period, and authorize the ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 8 Public Utilities General Manager, on behalf of the City, to execute the agreement and any other related documents and take such actions as are necessary to implement and administer the agreement. 20. Approve four agreements with the Los Angeles Department of Water and Power for both 4106 Short and Long-Term Firm Point-To-Point Transmission Service and authorize the Public Utilities General Manager, on behalf of the City, to execute the agreements, with any revisions that are in substantial conformance with the agreements, and any other related documents, and take any and all actions as are necessary to implement the agreements, including the purchase and/or reservation of transmission service under the agreements. 21. Approve a Direct Payment Agreement between the State of California, Health and Welfare 1865 Agency, Department of Community Services and Development and the City of Anaheim to directly receive federally funded Low-Income Home Energy Assistance Program (L1-HEAP) grants for the benefit of the City of Anaheim Public Utilities Department customers from July 1, 2006 through June 30, 2009, and approve and authorize the Public Utilities General Manager to execute the agreement and any related documents and take any and all actions necessary to implement the agreement. 22. Approve the Construction Management Services Agreement between the City of Anaheim 4115 and Sargent & Lundy for the Anaheim 69/12kV Gas Insulated Switchgear (GIS) Substation Project at a cost not to exceed $495,100, and authorize the Public Utilities General Manager to execute the agreement and related documents and take such actions as are necessary to implement and administer the agreement. 23. Cancel the December 19, 2006 regularly scheduled Council meeting and add a December D114 12,2006 meeting to the meeting calendar. 24. Authorize the Purchasing Agent to accept the lowest responsive bid and issue a purchase D180 order in an amount not-to-exceed $375,000 for the purchase and installation of modular furniture for the Anaheim Family Justice Center (AFJC) and miscellaneous Police Department offices, in accordance with Bid #6789. 25. RESOLUTION NO. 2006-153 A RESOLUTION OF THE CITY COUNCIL OF THE D160 CITY OF ANAHEIM AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN TWO YEARS OLD. (Planning Department) 26. RESOLUTION NO. 2006-154 A RESOLUTION OF THE CITY COUNCIL OF THE D128 CITY OF ANAHEIM AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN TWO YEARS OLD. (Finance Department, Purchasing Division) 28. RESOLUTION NO. 2006-156 A RESOLUTION OF THE CITY COUNCIL OF THE D175 CITY OF ANAHEIM FOR CAL TRANS 1-5 OFFRAMP TEMPORARY CLOSURES. 29. RESOLUTION NO. 2006-157 A RESOLUTION OF THE CITY COUNCIL OF THE 1427 CITY OF ANAHEIM DECLARING ITS INTENTION TO ADOPT THE FIFTH AMENDED AND RESTATED FRANCHISE AGREEMENT WITH TAORMINA INDUSTRIES, LLC, FOR THE COLLECTION, HANDLING, PROCESSING, RECYCLING, TRANSPORTATION AND DISPOSAL OF SOLID WASTE WITHIN THE CITY LIMITS OF THE CITY OF ANAHEIM. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 9 30. RESOLUTION NO. 2006-158 A RESOLUTION OF THE CITY COUNCIL OF THE P124 CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS CONVEYING TO THE CITY OF ANAHEIM CERTAIN REAL PROPERTIES OR INTERESTS THEREIN. (CITY DEED NOS. 10956-10969) 31. RESOLUTION NO. 2006-155 A RESOLUTION OF THE CITY COUNCIL OF THE T104 CITY OF ANAHEIM ADOPTING LOCAL GOALS AND POLICIES CONCERNING THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND APPROVING A FORM DEPOSIT AND REIMBURSEMENT AGREEMENT. 33. RESOLUTION NO. 2006-164 A RESOLUTION OF THE CITY COUNCIL OF THE E127 CITY OF ANAHEIM, CALIFORNIA, ORDERING THE SUBMISSION OF A PROPOSED AMENDMENT TO THE CITY CHARTER TO THE ELECTORS OF SAID CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON NOVEMBER 7,2006. (MEASURE NO. 1- EMINENT DOMAIN) 36. Approve the regular meeting minutes dated June 13, 2006 and June 20, 2006. END OF CONSENT CALENDAR: 18. Approve and authorize the City Manager to sign the Professional Services Agreement with 3434 the Anaheim Chamber of Commerce in an amount not to exceed $150,000, to promote and publicize City programs and services. Joel Fick, Deputy City Manager, reported the City had been partnering with the Chamber of Commerce on a variety of activities and programs since 1998. He added funding also provided benefits for economic development and other programs and those activities outlined for the next year included enhanced advertisements, a more comprehensive new business program, a manufacturing exchange program and support for the new business innovation resource center in the Canyon area and also an expanded business awards programs. Council Member Hernandez asked what the cost of the contract was for last year compared to $150,000 for this year. Mr. Fick indicated last fiscal year the contract was $100,000 for services. Council Member Hernandez expressed concern that the cost had increased 50 percent in one year and felt the Chamber should be self sufficient and wondered whether the City was the major source of the Chamber's revenue and what they were doing to increase membership. Council Member Hernandez addressed the 50 percent contract increase and asked if the services provided had increased by that amount. Todd Ament, president and CEO of the Chamber, stated more funds went into working on the product side last year. He pointed out that first year members join for networking activities and in California, 50 percent of those members renew for two years or longer. The products consisted of an economic development conference where businesses learned how to do business with all the major developers in town, as well as with the City and the school district; over 350 businesses participated in that conference. The Taste of Anaheim event started out at 1,200 participants, last year grew to 3,200 and this year included 4,000 attendees with over 50 restaurants involved. Additionally the Chamber website was updated for more accurate information related to tourism as most of the hits on the site related to tourism. He added that all activities had more than doubled. This year the funds would be used for a business recognition program for businesses leading in different industries which would also lead into exchange programs. He talked about the manufacturing exchange program as a method of mentoring some of the smaller manufacturing businesses to focus on retaining manufacturing in the City. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 1 0 Council Member Hernandez questioned the Chamber's hiring practices, indicating there had been rumors of nepotism. Ms. Pashko responded the Chamber was a small business with six full-time and seven contract employees who wear many hats to deliver all of the services and programs. The staff process was for the CEO to make recommendations for hiring to the seven member board for a vote with consideration given to skills and experience. She indicated there were two interim positions filled by individuals with ties to the Chamber CEO, an event coordinator and someone to set up needed financial reporting systems until a chief financial officer was found. Council Member Hernandez asked for a continuation of this item as it reflected a 50 percent increase in cost and he would like more information provided. Council Member Galloway, speaking as a business member of the Chamber, indicated the Chamber's organization operated differently than in the past when it was more of a social club and now the Chamber events attracted two to three times the amount of attendees and had become beneficial for its members and more effective as an organization Council Member Chavez believed the impact in the business community should be used as a benchmark for the Chamber's success rather than judging by the number of members. He stated three years ago, public comments heard by Council were often from small businesses that had issues with the Chamber and now the organization was proactive in its operation. He supported the additional $50,000. Mayor Pringle stated Council Member Hernandez's point as to whether a business organization should be able to sustain itself from membership dues and the programs it provided was well taken. He added when Todd Ament took over 18 months ago, he started from scratch and rebuilt an organization. The Taste of Anaheim with 4,000 attendees was a huge success had begun to rival similar events in other Orange County cities which translated into promoting the City of Anaheim, and was why the City participated in the partnership. Council Member Sidhu asked what the Chamber budget was last year compared to this year; Mr. Ament stated it increased from $750,000 last year to $1.3 million this year. He indicated the Chamber did not profit putting on events, the staffing costs and administrative costs generally broke even, but the purpose was to get word out about businesses and promote something within the community. On the membership side, he stated, it was hard to sell a non-tangible product but working on the product side had reflected an increase in membership. Council Member Sidhu supported the Chamber organization and encouraged the highest level of integrity in its operation and moved to approve the professional services agreement, seconded by Council Member Chavez. Council Member Hernandez commented he had spent three year terms on the Chamber Board and 30 years working in the different capacities and as chair of a number of committees and was not unfamiliar with its operation. He emphasized the strongest chambers were those that did not receive subsidies from cities and while he was not opposed to a subsidy, his concern was the 50 percent increase. City Manager Dave Morgan remarked the approach staff had taken was to buy services from the Chamber for marketing and other services that might have been provided by City staff, rather than deem it a subsidy. Mayor Pringle called for the vote. Roll call vote: Ayes - 4; Mayor Pringle, Council Members: Chavez, Galloway and Sidhu. Noes - 1; Council Member Hernandez. Motion Carried. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 11 27. RESOLUTION NO. 2006-159 A RESOLUTION OF THE CITY COUNCIL OF THE T104 CITY OF ANAHEIM OF INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES. RESOLUTION NO. 2006-160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM TO INCUR BONDED INDEBTEDNESS OF THE PROPOSED CITY OF ANAHEIM COMMUNITY FACILITIES DISTRICT NO. 06-2 (STADIUM LOFTS). A public hearing is scheduled for August 22, 2006. Natalie Meeks, Deputy City Engineer, stated this item was the initiating process for the community facilities district (CFD) for the Stadium Lofts project. She indicated the developer had asked the City to move forward with this project ahead of the citywide CFD for the Platinum Triangle in order to meet time frames for the sale of the Lofts units. Council Member Galloway asked if the City knew what the CFD costs would be to the buyers; Ms. Meeks responded there was a maximum proposed tax rate and that number could be adjusted until the District was formed. Council Member Galloway moved to approve RESOLUTION NO. 2006-159 and 2006-160, seconded by Council Member Sidhu. RESOLUTION NO. 2006-159 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM OF INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES. RESOLUTION NO. 2006-160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM TO INCUR BONDED INDEBTEDNESS OF THE PROPOSED CITY OF ANAHEIM COMMUNITY FACILITIES DISTRICT NO. 06-2 (STADIUM LOFTS). A public hearing is scheduled for August 22,2006. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 32. RESOLUTION NO. 2006-161 A RESOLUTION OF THE CITY OF ANAHEIM, E127 CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7,2006, FOR THE ELECTION OF CERTAIN OFFICERS AND CERTAIN BALLOT MEASURES AS REQUIRED BY PROVISIONS OF ARTICLE XIII, SECTION 1300 OF THE CITY CHARTER. RESOLUTION NO. 2006-162 A RESOLUTION OF THE CITY OF ANAHEIM, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 7,2006, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE. RESOLUTION NO. 2006-163 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7,2006. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 12 City Clerk Sheryll Schroeder reported the three resolutions before Council were standard resolutions calling for a general citywide election. The first resolution would give notice of the election date for city officers and ballot measures, the second resolution consolidated the city election with the statewide general election for cost-saving purposes and the 3rd resolution adopted regulations for candidates' statements. Council Member Hernandez asked what the cost was for putting an item on the ballot for the general election and Ms. Schroeder responded it would very each year depending on the number of issues on the County ballot but that in 2006, the estimate was $6,500. She indicated it was a shared cost wherein the County calculated the total cost of the election and based on how many registered voters there were in the City and how many different languages were needed and the printing costs, a fee was then allocated to all cities in Orange County depending on the number of issues and the numbers of ballots. This year the cost was estimated at $170,000 for three elected officials and possibly two ballot measures. Council Member Hernandez moved to approve RESOLUTION NO. 2006-161,2006-162 and 2006- 163, seconded by Council Member Galloway. RESOLUTION NO. 2006-161 A RESOLUTION OF THE CITY OF ANAHEIM, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7,2006, FOR THE ELECTION OF CERTAIN OFFICERS AND CERTAIN BALLOT MEASURES AS REQUIRED BY PROVISIONS OF ARTICLE XIII, SECTION 1300 OF THE CITY CHARTER. RESOLUTION NO. 2006-162 A RESOLUTION OF THE CITY OF ANAHEIM, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 7,2006, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE. RESOLUTION NO. 2006-163 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7,2006. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 34. RESOLUTION NO. 2006-165 A RESOLUTION OF THE CITY COUNCIL OF THE E127 CITY OF ANAHEIM, CALIFORNIA, ORDERING THE SUBMISSION OF A PROPOSED AMENDMENT TO THE CITY CHARTER TO THE ELECTORS OF SAID CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON NOVEMBER 7,2006. (MEASURE NO.2 - GAMBLING) Mayor Pringle had requested the City Attorney draft this resolution to be included in the November th election as it would restrict the establishment of Indian gambling facilities in the City of Anaheim without approval by Anaheim voters. He pointed out that although most gambling establishments under state law would require a vote of the people within that community, in recent years Indian tribes had sought to establish gaming facilities in urban areas off their reservation land and this ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 13 would prevent that from occurring without a vote of the people. Council Member Sidhu stated that while he was personally opposed to gambling, he did not feel there was eminent threat of gambling occurring in Anaheim now or in the near future. He stated gambling clubs had been prohibited from operating in Anaheim since 1981 and under State law, no new gaming establishment could be opened in any city without a vote of the people. He felt current local and state laws already provided adequate protection and there was no need for a charter amendment being added to the ballot at taxpayer's expense. He indicated Garden Grove unanimously killed any effort to build an Indian casino and that State law proposed a moratorium on gambling until January 1, 2010. He indicated the next review scheduled for the charter review committee was in 2010, and there was an opportunity then to revisit prohibition of Indian gaming facilities at that time. Council Member Hernandez argued the expense to put this measure on the ballot would be minimal and money well spent and it would send a message to neighboring communities that Anaheim was opposed to Indian gaming facilities in this urban area. Mayor Pringle pointed out state law had placed any state-sanctioned gaming establishment which required a vote of the people under a moratorium until the year 2010 and this charter amendment referred to Indian gaming establishments which required no vote of the people. He pointed to Garden Grove which had at one time contemplated establishing an off-tribal land gaming facility close to Anaheim's borders to take advantage of Anaheim's tourist industry, This charter amendment would state the City of Anaheim could not negotiate with a tribal government to establish an Indian casino in Anaheim without a vote of the people. Council Member Sidhu felt the amendment was unnecessary as Anaheim's revenue was solid and historically only those cities with revenue generating problems were interested in Indian gaming establishments. Mayor Pringle remarked the City had put a tremendous amount of money and effort in the resort areas which was productive today because Anaheim was viewed as a family destination. He added having an Indian gaming facility close to Anaheim's borders could impact how Anaheim was viewed in the future. He commented there were 180 tribal governments recognized in California, many of whom were in remote locations and seeking urban gaming sites. This resolution, if approved today, would go before the Anaheim electorate on November ih for their approval or disapproval. Council Member Hernandez moved to approve RESOLUTION NO. 2006-165, seconded by Council Member Chavez. RESOLUTION NO. 2006-165 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ORDERING THE SUBMISSION OF A PROPOSED AMENDMENT TO THE CITY CHARTER TO THE ELECTORS OF SAID CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON NOVEMBER 7,2006. (MEASURE NO.2- GAMBLING) Roll Call Vote: Ayes - 4; Mayor Pringle, Council Members: Chavez, Galloway and Hernandez. Noes - 1; Council Member Sidhu. Motion Carried. 35. ORDINANCE NO. 6027 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM D106 ADDING CHAPTER 17.36 TO TITLE 17 OF THE ANAHEIM MUNICIPAL CODE ESTABLISHING PUBLIC SAFETY FACILITIES AND VEHICLE AND EQUIPMENT IMPACT FEES FOR NEW AND EXPANDED DEVELOPMENT IN THE PLATINUM TRIANGLE MIXED USE (PTMU) OVERLAY ZONE. (Introduced 6/20/06, Item 41-S) ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 14 Council Member Galloway asked which public safety facilities the impact fees would be addressing. Chief Roger Smith indicated the fire projects would include construction of the Platinum Triangle fire station and acquiring equipment necessary for operation of the station, construction of a second Platinum Triangle fire station and acquiring fire suppression equipment for that station for a total of eight fire safety items. On the police safety side, the fees would expand police facility space, acquire additional patrol detective vehicles, acquire officer assigned equipment, acquire advanced computer data sharing equipment, acquire specialty and communications equipment and acquire an additional helicopter. Council Member Galloway moved to adopt Ordinance No. 6027, seconded by Council Member Hernandez. ORDINANCE NO. 6027 AN ORDINANCE OF THE CITY OF ANAHEIM ADDING CHAPTER 17.36 TO TITLE 17 OF THE ANAHEIM MUNICIPAL CODE ESTABLISHING PUBLIC SAFETY FACILITIES AND VEHICLE AND EQUIPMENT IMPACT FEES FOR NEW AND EXPANDED DEVELOPMENT IN THE PLATINUM TRIANGLE MIXED USE (PTMU) OVERLAY ZONE Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 37. AppointmentJre-appointment of Public Utility Board member whose term expired June 30, B105 2006 and appointment of Board and Commission members with terms to expire June 30, 2010, except Senior Citizen Commission, two appointments with expiration of terms June 30, 2007 and June 30, 2009. APPOINTMENT/REAPPOINTMENTS WITH TERM TO EXPIRE JUNE 30, 2010: PUBLIC UTILITIES BOARD: With the consent of Council, the appointment continued. Charles Peltzer) NEW APPOINTMENTS WITH TERMS TO EXPIRE JUNE 30, 2010: COMMUNITY CENTER AUTHORITY: As no nominees offered, continued to July 25,2006. (Pat Carroll) CULTURAL & HERITAGE COMMISSION: Council Member Galloway nominated Marian Galanis. Roll call vote: Ayes - 3: Mayor Pringle, Council Members: Chavez and Galloway. Noes - 2: Council Members Hernandez and Sidhu. Council Member Hernandez nominated Alone Larson. Roll Call Vote: Ayes - 2: Council Members Hernandez and Sidhu. Abstention: Mayor Pringle, Council Members Chavez and Galloway. Ms. Galanis was appointed to the Cultural and Heritage Commission. INVESTMENT ADVISORY: This appointment continued to July 25, 2006. (Jack Schrader) LIBRARY BOARD: Council Member Galloway nominated Laurie Crawford. With no other nominees offered, Ms. Crawford was unanimously appointed to the Library Board. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 15 PUBLIC UTILITIES BOARD: Council Member Sidhu nominated Peter Agarwall. With no other nominees offered, Mr. Agarwall was unanimously appointed to the Public Utilities Board. SENIOR CITIZEN COMMISSION: Council Member Hernandez submitted the name of Robert Kuehn to fill the vacancy expiring 2009. With no other nominees offered, Mr. Kuehn was appointed to the Senior Citizen Commission. (Fill vacancy of Carol Morrow) term to expire June 30, 2007 This vacancy continued to July 25, 2006. 5:30 P.M. PUBLIC HEARINGS: 38. This is a public hearing to consider the approval of the issuance of tax-exempt obligations D128 by the California Statewide Communities Development Authority for the financing of certain costs incurred by the Tiger Woods Learning Center Foundation in connection with the acquisition, construction, improvement, renovation, furnishing and equipping of the Tiger Woods Learning Center, in an amount not to exceed $15 million. Bill Sweeney, Finance Director, explained the public hearing was required by the Tax Equity & Fiscal Responsibility Act of 1982 (TEFRA) and provided the public an opportunity to comment on the proposed financing. He stated the City of Anaheim would have no liability for the financing and there would be no impact on the general fund. Mayor Pringle disclosed he was a voluntary member of the Tiger Woods Foundation board, however, he received no benefit from the organization and would have no conflict in participating on this item; City Attorney concurred. Mayor Pringle opened the public hearing for comments and receiving none, closed the hearing. Mayor Pringle confirmed that in using this funding mechanism, a public agency must be a sponsor and this would allow the existing debt for the construction of the Tiger Woods Learning Center to be restructured and lower the costs to continue providing service. Council Member Hernandez moved to approve RESOLUTION NO. 2006-166, seconded by Council Member Galloway. RESOLUTION NO. 2006-166 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, STATE OF CALIFORNIA APPROVING THE ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO REIMBURSE THE TIGER WOODS LEARNING CENTER FOUNDATION FOR COSTS INCURRED IN CONNECTION WITH THE ESTABLISHMENT OF THE TIGER WOODS LEARNING CENTER. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 39. This is a public hearing to consider a proposed amendment to the redevelopment plans for ARA the Merged Project Area. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 16 Elisa Stipkovich, Community Services Director, reported because the state required cities to make ERAF payments to help balance the State budget, the State then allowed cities to get an extension of one year on any redevelopment plans. This ordinance would extend Anaheim's redevelopment plans by one year and since the plans had been merged into one project area, the plans would sunset at different timelines. Council Member Galloway remarked the merged project area extension had already been approved and asked why there was a need to approve another one year extension. Ms. Stipkovich stated this extension was different from the 10 year extension which had been a plan amendment which was a year long process in the making. In exchange for redevelopment agencies making a payment to the State to balance the budget, the legislature allowed those agencies to get a one year extension for every ERAF payment made to the state. Anaheim made its $2.7 million payment in May of this year and staff was now asking Council to amend the Merged Project Area and extend it by one year. There were seven project areas under the Merged Area plan, each with a different sunset date. Mayor Pringle opened the public hearing and receiving no testimony, closed the hearing. Council Member Sidhu moved to introduce Ordinance No. 6028, seconded by Council Member Chavez. ORDINANCE NO. 6028 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE REDEVELOPMENT PLAN AMENDMENTS TO EXTEND BY ONE YEAR THE EFFECTIVENESS OF THE REDEVELOPMENT PLAN AND THE TIME LIMIT FOR THE RECEIPT OF PROPERTY TAX INCREMENT FOR THE MERGED PROJECT AREA. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 40. This is a public hearing to consider condemnation of a portion of certain real property P121 located at 1680 W. Katella Avenue, 1696 W. Katella Avenue and 1818 South Euclid Street for the Katella Avenue Smart Street-Ninth Street to Humor Drive project. Natalie Meeks, Public Works Department indicated she would give a single staff report for Item Nos. 40, 41, 42 and 43 as they were all part of the same Katella Avenue Smart Street project. She stated this was an implementation of another segment of the Katella Smart Street project that had been cleared environmentally in 1993 and the City had been implementing the plan as funding became available. This next segment, she explained, was from Ninth Street to Humor Street and would provide three thru-Ianes in the east and west direction and the appropriate turn lanes and traffic signals. The property acquisitions in these four agenda items would require modifications to several buildings, one at the southeast corner of Katella and Euclid, one at the northeast corner of Katella and Euclid, and one on Katella a little east of Euclid on the north side of the street. She added that most of the tenants would not need to be relocated but one building, the Western Dental office, would need modifications to the overhang and a small piece of the building would be taken by the City. She noted staff had been in discussion with the property owner on the north side of that street as to whether a full or partial take of the house was necessary. She added the numbers under discussion were close and staff was waiting for a counter offer to pursue a potential full-take and relocate the three tenants. The last facility was a hookah bar and there would be a small take on the front of that building. She explained the project was scheduled for construction next year but to get a contractor to make the modifications to the buildings and relocate Edison ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 17 lines before the construction project was awarded made the time critical to move forward with the property acquisitions at this time. Mayor Pringle opened the hearing on Item No. 40 for public comments and receiving none, closed the hearing. Council Member Hernandez moved to approve RESOLUTION NO. 2006-167 and authorize the law firm of Rutan and Tucker, special counsel to the City, to proceed with said condemnation action, seconded by Council Member Sidhu. RESOLUTION NO. 2006-167 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF PORTIONS OF PROPERTY LOCATED AT 1680 WEST KA TELLA AVENUE, 1696 WEST KATELLA AVENUE AND 1818 SOUTH EUCLID STREET FOR THE PURPOSES OF KATELLA AVENUE SMART STREET PROJECT (R/W ACQ2004-00204, 00206 AND 00205) Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 41. This is a public hearing to consider condemnation of a portion of certain real property P121 located at 1780-1796 South Euclid Street for the Katella Avenue Smart Street-Ninth Street to Humor Drive project The staff report given for Item No. 40 is applicable to this agenda item. Mayor Pringle opened the public hearing stating he would take testimony from the owner or record or designated representative or anyone else who wishes to speak on this item. He added testimony would be limited to: 1) whether the public interests and necessity require the project, 2) whether the project was planned and located in a manner that would be most compatible with the greatest public good and least private injury, 3) whether the property sought to be acquired was necessary for the project, 4) whether the offer required by Government Code Section 7267.2 had been made to the owner or owners of record and 5) whether the City had met all prerequisites to the exercise of eminent domain in connection with the property. Lee Alexander, Briggs & Alexander law offices, spoke on behalf of the property owner at the northeast corner. He indicated the property owner had been in negotiations and discussions with Natalie Meeks and the City Attorney and that the position of the property owner was a full take of the building would do the least private harm and the most public good. Due to aesthetic purposes and setback reasons and for public safety as well, the property owner felt it was better to raise the entire building and put the new building further back on the property and try to relocate the tenants. Mayor Pringle asked if the resolution authorized staff to move forward with discussions to maximize the public benefit in this regard to consider both options of either a partial take or a full take of the building and Ms. Meeks responded the City would continue to negotiate with property owner and reach an agreement to take the entire building and in that case would also relocate the three tenants. If the agreement failed, the City would be required to move forward with the project staff had identified as the least public injury. She added it was the goal of staff to work with property owner and the numbers discussed were close and not an overextension of the City's funds. The City Attorney indicated if evidence was received from the property owner and his appraisers which indicated it made more sense for a full take of the property, the resolution may be amended. If not, eminent domain law allowed the property owner to make a motion to require the court to take the ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 18 rest of the property in the interest of justice but that the City was currently negotiating to obviate the need for that motion. Ms. Meeks added the agreement with the property owner would come back to Council for approval. The public hearing was closed and Council Member Chavez moved to approve RESOLUTION NO. 2006-168 and to authorize the law firm of Rutan and Tucker to proceed with said condemnation action, seconded by Council Member Sidhu. RESOLUTION NO. 2006-168 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF PORTIONS OF PROPERTY LOCATED AT 1780-1796 SOUTH EUCLID STREET FOR THE PURPOSES OF THE KATELLA AVENUE SMART STREET-NINTH STREET TO HUMOR DRIVE PROJECT. (RIW ACQ2004-00193). Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 42. This is a public hearing to consider condemnation of a portion of certain real property P121 located at 1671 W. Katella Avenue for the Katella Avenue Smart Street-Ninth Street to Humor Drive project The staff report presented under Item No. 40 is applicable to this agenda item. Mayor Pringle opened the public hearing stating he would take testimony from the owner or record or designated representative or anyone else who wishes to speak on this item. He added testimony would be limited to: 1) whether the public interests and necessity require the project, 2) whether the project was planned and located in a manner that would be most compatible with the greatest public good and least private injury, 3) whether the property sought to be acquired was necessary for the project, 4) whether the offer required by Government Code Section 7267.2 had been made to the owner or owners of record and 5) whether the City had met all prerequisites to the exercise of eminent domain in connection with the property. No speakers provided testimony and the hearing was closed. Council Member Hernandez moved to approve RESOLUTION NO. 2006-168 and to authorize Rutan & Tucker to proceed with said condemnation action, seconded by Council Member Galloway. RESOLUTION NO. 2006-169 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF PORTIONS OF PROPERTY LOCATED AT 1671 WEST KATELLA AVENUE FOR THE PURPOSES OF THE KATELLA AVENUE SMART STREET-NINTH STREET TO HUMOR DRIVE PROJECT(RIW ACQ2004-00195) Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 19 43. This is a public hearing to consider condemnation of a portion of certain real property P 121 located at 1673-1679 W. Katella Avenue and 1728-1742 South Euclid Street for the Katella Avenue Smart Street-Ninth Street to Humor Drive project. The staff report presented for Item No. 40 is applicable to this agenda item. Mayor Pringle opened the public hearing and receiving no testimony, closed the hearing. Council Member Hernandez moved to approve RESOLUTION NO. 2006-170 and to authorize Rutan & Tucker to proceed with said condemnation action, seconded by Council Member Galloway. RESOLUTION NO. 2006-170 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF PORTIONS OF PROPERTY LOCATED AT 1673-1679 WEST KATELLA AVENUE AND 1728- 1742 SOUTH EUCLID STREET FOR THE PURPOSES OF THE KATELLA AVENUE SMART STREET-NINTH STREET TO HUMOR DRIVE PROJECT. (R/W ACQ2004-00191, 00192 AND 00194) Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 44. This is a public hearing to consider condemnation of a portion of certain real property P121 located at 5700 East La Palma Avenue for the State Route 90 Imperial Highway Widening Project (Santa Ana River Bridge to La Palma Avenue). Natalie Meeks, Public Works, reported Item No. 44 was an acquisition to correct an error in a title report which occurred a number of years ago. She noted the City had acquired right-of-way necessary for the Imperial Highway widening project from Santa Ana River bridge to north of La Palma Avenue in 2002-2003. During the right-of-way certification process for the Caltrans right-of- way on Imperial Highway, it was found there was a small portion of right-of-way not owned by the City at this time, actually out in a portion of the street and surrounded by City owned property. Staff made an offer to the property owner, who agreed, however the property was now in probate due to the passing of the father of the owner and staff was recommending adoption of the resolution of necessity to settle this through probate in a timely manner. Mayor Pringle opened the public hearing and receiving no testimony, closed the hearing. Council Member Sidhu moved to approve RESOLUTION NO. 2006-171 and to authorize Rutan & Tucker to proceed with said condemnation action, seconded by Council Member Chavez. RESOLUTION NO. 2006-171 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUISITION OF PORTIONS OF PROPERTY LOCATED AT 5700 EAST LA PALMA AVENUE FOR THE PURPOSES OF CONDUCTING ROADWAY IMPROVEMENT. (R.W. ACQ. NO. 2006-00250) Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 20 45. CEQA NEGATIVE DECLARATION P100 GENERAL PLAN AMENDMENT NO. 2005-00439 RECLASSIFICATION NO. 2005-00168 WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 2005-05046- TENTATIVE TRACT MAP NO. 16932 OWNER: Property Reserve Inc., Attn: Mark Gibbons, 5 Triad Center, Suite 650, Salt Lake City, Utah 84180 AGENT: Jackie Rodarte, The Olson Company, 3020 Old Ranch Parkway, Suite 400, Seal Beach, CA 90740 LOCATION: 1731 Medical Center Drive: Propertv is approximatelv 2.5 acres, havinQ a frontaQe of 462 feet on the north side of Medical Center Drive and is located 587 feet west of the centerline of Euclid Street. General Plan Amendment No. 2005-00439 - Request to redesignate the property from the Public Institutional land use designation to the Low-Medium Density Residential land use designation. Reclassification No. 2005-00168 - Request to reclassify the property from the C-G (General Commercial) zone to the RM-3 (Residential, Multiple-Family) zone or less intense zone. Conditional Use Permit No. 2005-05046 - Request to permit a 32-unit, single-family attached residential condominium project with waivers of (a) permitted encroachments into required street setback and (b) minimum distance of monument sign from public right-of- way. Tentative Tract Map No. 16932 - Request to permit a 1-lot, 32-unit airspace attached residential condominium subdivision. ACTION TAKEN BY THE PLANNING COMMISSION: CEQA Negative Declaration denied (6 yes votes, Commissioner Velasquez abstained). General Plan Amendment No. 2005-00439 denied (7 yes votes). Reclassification No. 2005-00168 denied (7 yes votes). Waiver of Code Requirement denied (7 yes votes). Conditional Use Permit No. 2005-05046 denied (7 yes votes). Tentative Tract Map No. 16932 denied (7 yes votes). The applicant, The Olson Company, requests that this project be withdrawn. Project withdrawn as requested 46. CEQA ADDENDUM TO EIR NO. 330 C330 RECLASSIFICATION NO. 2006-00178 CONDITIONAL USE PERMIT NO. 2006-05092 OWNER: Robert H. Horn TR, 935 Lotus Circle, San Dimas, CA 91773 AGENT: Scott Richards, SADI LLC, 5939 Monterey Road, Los Angeles, CA 90042 LOCATION: 111-125 West Elm Street: Propertv is approximatelv 0.76-acre. havinQ a frontaQe of 210 feet on the north side of Elm Street and is located 167 feet west of the centerline of Anaheim Boulevard. ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 21 Reclassification No. 2006-00178 - Request for a reclassification from the I (Industrial) zone to the I (MU) (Industrial, Mixed Use Overlay) zone to construct 52* affordable multiple-family units on an industrial lot in the historic district. Conditional Use Permit No. 2006-05092 - To construct a 52-unit* affordable apartment complex with a density bonus and incentives for** (a) minimum lot size, and (b) dedication and improvement of public right-of-way. *Advertised as 53 units **Advertised as "with waivers of (a) minimum lot size, (b) maximum density and (c) dedication and improvement of public right-of-way." ACTION TAKEN BY THE PLANNING COMMISSION: CEOA Addendum to Environmental Impact Report No. 330 - Approved Reclassification No. 2006-00178 - Granted Conditional Use Permit No. 2006-05092 - Granted - Modified Condition No. 33 and Paragraph No.8 in the draft resolution; Vote: 7-0. Appealed by Advanced Development and Investment Inc. The appellant, Advanced Development and Investment Inc., requests that this appeal be withdrawn. Appeal withdrawn as requested. 47. CEQA NEGATIVE DECLARATION C220 CONDITIONAL USE PERMIT NO. 2006-05079 OWNER: Idelfonso G. Marquez Jr. and Cheryl Y. Marquez, 1835 South Lewis Street, Anaheim, CA 92805 AGENT: MVA Architects, 2151 Michelson Drive, Suite 140, Irvine, CA 92612 LOCATION: 1835 South Lewis Street: Propertv is approximatelv 0.5 acre. havinQ a frontaQe of 117 feet on the west side of Lewis Street and is located 517 feet south of the centerline of Katella Avenue. Conditional Use Permit No. 2006-05079 - Request to permit a mortuary to cremate and embalm human remains in an existing industrial building. ACTION TAKEN BY THE PLANNING COMMISSION: CEOA Negative Declaration Approved. Conditional Use Permit No. 2006-05079 - Granted - Both items Vote: 3-1 Commissioner Karaki voted no. Flores and Velasquez absent and with one Commission vacancy. Appealed by American National Properties, Inc. Greg Hastings, Planning Services Manager, reported the Planning Commission had approved the applicant's request for a permit to allow a mortuary to cremate and embalm within an existing industrial building. He explained the Planning Commission's decision was appealed by a nearby property owner. He stated the area along Lewis Street in the Platinum Triangle was occupied by industrial and storage uses. Although the general plan designation for the applicant's property and neighboring properties was for office use, the zoning was still industrial. The general plan for the Platinum Triangle was intended to provide property owners with additional land use options beyond the existing zoning and was not intended to restrict businesses from operating or expanding in conformance with the existing industrial zone. The proposed use was consistent with the existing zoning since the industrial zone does allow for mortuary facilities. Mr. Hastings noted the applicant's property was 700 feet from the nearest mixed use designation boundary where ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 22 residential uses were permitted in the Platinum Triangle. The facility would occupy an existing 10,000 square foot building and the plan included an 8,100 square feet of area for cremation and embalming and 1,900 square feet of office for the business. The facility would not be open to the general public, funeral and viewing services would not occur at this location and no identifying signage would be placed on the exterior of the building. All deliveries would take place inside the building and unmarked vans would be used for delivery rather than funeral hearses. Facilities were subject to South Coast Air Quality Management District (SCAQMD) regulations which would ensure air quality protection relative to cremation activities. Mr. Hastings pointed out the appellant's concerns pertained to the compatibility of the facility with future office development and belief the permitting of such a facility could slow the conversion of the area into office use, that it would be undesirable to future and existing tenants in the area, and that visibility of the hearses to and from the businesses as well as odors from cremation ovens would contribute to loss of lease revenues and a reduction in property values. Mr. Hastings confirmed the proposed use was compatible with surrounding industrial land uses, zoning and policies contained in the general plan for the Platinum Triangle and that staff had worked closely with the applicant on the operational details of the business to insure it would not negatively impact existing and future land uses. The property and building would be indistinguishable as a mortuary, would not be open to the public, would use unmarked vans, not hearses and would be regulated so as not to generate objectionable odors or smoke. Staff recommended upholding the Commission's approval. Mayor Pringle asked about adjacent operations; Mr. Hastings stated there was a contractor's storage yard, a light industrial building, a gentleman's club, another industrial building and a sales office for vehicle supplies and auto parts. He added in addition to the industrial uses, all the properties had the ability to construct high density offices under the Platinum Triangle overlay. Council Member Galloway asked if there were objectionable odors; Mr. Hastings indicated the crematorium was regulated by SCAQMD and there should be no emissions from the building. Council Member Sidhu asked what the parking requirements were; Mr. Hastings indicated there were 13 required spaces and that the owner would retain the 28 existing parking spaces. Council Member Hernandez asked if there was another crematorium on the other side of the freeway south of that location and were there any complaints from that operation. Mr. Hastings indicated there was a crematorium operating within ~ mile of this location and adjacent to a residential development and had been operating for 30 years with no current complaints. Ron Marquez, Vice President of South West Mortuary Services, stated this was a family operated business for over 30 years, established in 1972. He and his three brothers had taken over the daily operations of funerals homes located in Orange County, Riverside, San Bernardino and in Los Angeles. His family was expanding their business to provide cremations and he explained all operations would take place within the facility, unmarked vans would be utilized rather than funeral hearses and would enter the facility by electrically controlled garage doors managed by dispatchers via a camera system. Vans would deliver remains which would be held in refrigerated coolers until paperwork was processed and the ashes given back to the contracting mortuaries. John Regett, American Crematory, had provided the technical expertise for crematories, stating his firm had installed 90 percent of the crematories in southern California. He indicated there were four regulatory requirements to site a crematorium, the city, consumer affairs, air quality and licensed operators. He stated Mr. Marquez was licensed to operate a crematorium. He added there were unannounced inspections twice a year to insure there were no operational problems. Mayor Pringle asked what was vented from the operations; Mr. Regett indicated hot flume was vented and the particulates were so minute there were less than a fast-food restaurant and not ANAHEIM CITY COUNCIL MEETING MINUTES July 11,2006 Page 23 hazardous to anyone's health. Council Member Sidhu indicated he was familiar with families and friends being present during cremations as part of the funeral service. Mr. Marquez indicated some mortuaries had crematoriums where families and friends could attend, but his services would not involve having the public attend. The families would attend funeral services, if any, at another site, and after the services, the remains would be taken to the crematorium and the ashes then returned to the mortuary for the family's disposal. Council Member Hernandez asked if South West Mortuary was licensed by the state; Mr. Marquez responded that he was. Council Member Hernandez indicated he had inspected the Melrose Abby funeral home as a firefighter and had seen how secure and remote the crematory was from the rest of the facilities which contained a cemetery, chapel and a crypt. Council Member Chavez stated that years ago the fire department had calls related to smoke from the Melrose Abby. Mr. Regett noted the Abby facility did have a problem at that time as the machines had been there since the 40's and 50's. When the machines were removed and new equipment in place, there were no more complaints. He added in 2006, air quality was more stringent and the goal was to burn at 1,600 degrees and by the time the heat exhausted into the air, it was down to 600 degrees which reduced smoke, fumes and particulates. Mayor Pringle asked if the ovens would be located on the west side of the building closest to the 1-5 freeway. Mr. Marquez indicated it would be on the west side but the vent on the rooftop would be screened from viewing. Rob Saki, property owner across the street from the proposed crematorium, believed there were other locations in the city more appropriate for a crematorium. He added the goal was to build high rise offices in that location and while he felt Mr. Marquez was making his best effort, he believed the facility would be better served elsewhere. Jeff Flynnt, public affairs representing Roger Dion Construction, south of the appellant's property, stated Dion Construction did not want to infringe on the property rights of the owner but would suggest a compromise. He recommended the permit be conditioned for a review in a certain number of years to insure the use remained compatible. With no other testimony received, the hearing was closed. Council Member Sidhu asked for the policies related to mortuaries or cremation facilities. Greg Hastings indicated they were identified in the City code in an industrial zone permitted by a conditional use permit. He asked what the parking requirements were and Mr. Hastings responded that as each facility was different, the Code required a parking study be performed by the City and in this case, the study established a 13 parking space requirement. He added the only crematory the City was aware of in Anaheim was the Melrose Abby facility which had been in place long before zoning requirements. Council Member Sidhu felt the use was not appropriate for this property, the smoke coming from the facility would be noticed by neighbors and he voiced his concern over the possibility of services held at the location and stated he would not support it. Mayor Pringle remarked that he would be consistent on this issue and would support and respect an existing owners property rights. He acknowledged that the City had put energy and focus on transforming the Platinum Triangle area and he would prefer to see that property developed in another manner and would encourage the owner to consider other options. but he would not deny the right of any existing property owner to develop according to Code. He added the Platinum ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 24 Triangle was a concept in which Council moved forward with to create a market based zoning change and allow property rights to be respected and opportunities to be created through an overlay zone but not mandated. Council Member Chavez moved to approve RESOLUTION NO. 2006-172, seconded by Council Member Hernandez. RESOLUITON NO. 2006-172 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 2006-05079 Roll Call Vote: Ayes - 4: Mayor Pringle, Council Members: Chavez, Galloway and Hernandez. Noes - 1; Council Member Sidhu. Motion Carried. Report on Closed Session Actions: None Council Communications: Council Member Hernandez announced the Dale Mcintosh forum for housing opportunities taking place on September 16th at the Gordon Hoyt auditorium. Council Member Galloway had received a plaque from the Toll Road Agency on the celebration of its 20th anniversary. She noted that Anaheim had been a founding member of the agency whose goal was to plan, finance, build and operate three highway corridors after traffic studies determined the need and location of those roads. She also proposed a City hall open house which invited Anaheim residents into their hall of government after hours to interact with Council and staff. Mayor Pringle concurred, asking Council Member Galloway and City Manager Morgan to assist in planning for a date in September. Council Member Sidhu announced the success of the Let Freedom Ring 4th of July event held in the Canyon Hills community. Council Member Chavez recognized and appreciated the efforts being made towards developing affordable housing in the City but felt the effort did not catch up with the existing need. He suggested looking for alternate methods to fund housing and recommended a discussion be held on potential alternatives, possibly utilizing a portion of the transient occupancy tax in conjunction with other funding. Mayor Pringle pointed out the Strategic Plan did that and he recommended waiting for the end of year report which would update Council and the community on progress being made. Discussion was held on the rising costs of construction, particularly when applied to high density development, along with rising land costs. Mayor Pringle pointed out the reason for the proposal to change the zoning was to encourage the construction of hotels because the cost of constructing that hotel was so great there had to be another economic component to it such as residential and by penalizing any developers by adding an additional cost for affordable units would have a negative impact and stop growth. He appreciated Council Member Chavez's passion and interest in this subject but recommended a one year report before Council contemplated changing directions. Mayor Pringle commented there had been neighborhood concerns brought to his attention in the Sun kist/Rio Vista community and he was aware that the Community Preservation staff had been working on those concerns. He requested a report from that department be made to Council about ANAHEIM CITY COUNCIL MEETING MINUTES July 11, 2006 Page 25 the progress in addressing those problems, particularly with the declining Ralph's Shopping Center to allow Council to take a more aggressive stance in having the Center live up to standards. He also announced the judge had ruled in favor of the City to not require the payment of the Angel's attorney fees. He remarked that the same legal team remained handling the Angel's litigation with the exception of Andrew Guilford who have been appointed to a federal bench. Adjournment: At 9:55 P.M., Mayor Pringle adjourned the meeting. Res,ctfU\ly submitte , ~ ~heryll S. Schroe er, MMC City Clerk