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1999/06/08ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 The City Council of the City of Anaheim met in regular session. PRESENT: MAYOR : Tom Daly PRESENT: COUNCIL MEMBERS : Frank Feldhaus, Lucille Kring, Tom Tait, Shirley McCracken, ABSENT: COUNCIL MEMBERS: PRESENT: ASST. CITY MANAGER : Dave Morgan CITY ATTORNEY : Jack White CITY CLERK : Leonora N. Sohl CITY TREASURER : Charlene Jung FINANCE DIRECTOR : Bill Sweeney BUDGET MANAGER : Jeff Stone PLANNING DIR ECTOR : Joel Fick HUMAN RESOURCES DIRECTOR : Dave Hill ZONING DIVISION MANAGER : Greg Hastings EXECUTIVE DIRECTOR COMMUNITY DEVELOPMENT : Lisa Stipkovich POLICE VICE DETAIL : Russ Sutter A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 4:20 p.m. on June 4, 1999 at the City Hall Bulletin Board, (both inside and outside the entrance to City Hall) containing all items as shown herein. Mayor Daly called the regular meeting of June 8, 1999 to order (3:04 P.M.). The first portion of the meeting will be a continuation of the City Departmental Budget Presentations on the proposed Fiscal Year 1999/2000 Budget Plan. (See minutes of the Special Meeting of June 8, 1999, which started at 2:00 P.M.). 106: FISCAL YEAR 1999/2000 DEPARTMENTAL BUDGET WORKSHOP (Continuation) : The following Department Heads gave an overview of their department’s proposed budget, some explaining their objectives for the coming year and accomplishments in the past fiscal year. Questions were also posed by Council Members during and at the conclusion of some of the presentations which were answered by the respective Department Head and/or appropriate staff. City Treasurer, Charlene Jung - City Treasurer’s Office - Budget Document, Pages 38 and 39. Human Resources Director, Dave Hill - Human Resources Department - Budget Document, Pages 62 and 63. (Presentation supplemented by Power Point slides). Expanding upon the information contained in the Budget Document, Mr. Hill explained during the next period of time, new leaders are going to have to emerge. The needs for leadership are going to increase, the available pool is shrinking, and it is going to be a difficult time for business and industry. From 2000 to 2010, significant numbers of companies including the City of Anaheim are going to experience large numbers of their executives leaving and at the present time not enough people are prepared to replace them. In looking to the future, the City is looking at a strategy called, “Building the Bench” -- retaining current employees and rapidly developing them so that those employees who wish to take advantage of the incredible opportunities for promotion that will be available in the organization are ready when the transition takes place. He elaborated upon that issue and in concluding focused on the “fixes” (retaining good employees and developing new leaders from the existing work force) and the major projects/ inititiatives which HRD will focus on in support of those strategies. Finance Director, Bill Sweeney - Finance Department - Budget Document, Pages 56 through 59. (Finance Department includes – Accounting and Payroll, Purchasing and Reprographics, Business ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 License and Collections, Information Services, and Budget.) At the conclusion of his presentation, Council Members posed questions relative to the statement made that the City is presently 95% Y2K compliant which was answered by both Mr. Sweeney and Tom Wood, Assistant City Manager- Development. The 95% figure relates to all the business functions of the City, not the entire City. There are a number of other systems that are in various stages of remediation. The City is on track and will be compliant on systems it controls. The only concern is relative to external systems. A Task Force has been in place and the City Manager will be giving the Council a summary report on the issue next Monday. General Manager, Convention, Sports and Entertainment, Greg Smith - Convention, Sports and Entertainment Department - Budget Document, Pages 52 – 55. (Includes the Anaheim Convention Center and administering the management contracts for Edison International Field of Anaheim, formerly Anaheim Stadium, and the Arrowhead Pond of Anaheim, aka the Arena.) During his presentation, Mr. Smith also noted that not included in the presentation but requested to be read into the budget next week by the City Manager is an additional expense to the Stadium not anticipated when the budget was prepared. It is the cost to restripe and reconfigure the baseball parking lot to accommodate the Sportstown development at approximately $750,000 where it was previously anticipated this expense would be in the FY2000/2001 budget. Additionally, there will be $200,000 in revenues representing a deposit made by Summit, the agreement for which is before the Redevelopment Agency (Item 1.) and the Council (Item A36.) tonight. At the conclusion of Mr. Smith’s presentation, Mayor Daly posed a line of questions relating to the reporting of the cost of the Convention Center expansion and where that project shows up in the budget; Jeff Stone, Budget Manager referred to Page 25 of the Budget - Capital Improvement Program - reflecting $172.l million for 1999/2000, noting that the majority is for the Resort Area and a majority of that is for the Convention Center. It is not part of the adopted budget because they are funds held by the Trustee paid directly to the contractor. There was also additional input by both Mr. Sweeney and Mr. Wood relative to the issue. Mr. Sweeney confirmed for the Mayor that the Council already appropriated the funds when they borrowed the money in 1997. Anaheim/Orange County Area Visitor and Convention Bureau, Charles Ahlers , President. ( See Page 55 of the Budget Document – the Bureau receives funding from the City to promote tourism and convention business in Anaheim and Orange County). Mr. Ahlers presented/briefed the Bureau’s Operating Plan (see data submitted entitled Anaheim/Orange County – Operating Plan 1999/200 - Total Budget Fiscal Year 1999/2000, $6,650,200 - containing hard copies of the slides shown as part of the presentation, i.e., Membership Department Goals, Convention Sales Goals, Booking Pace ChartTourism Department Goals, Ad Programs, Competitive Analysis, Return on Investment – made a part of the record. Also see previously submitted 54-page booklet reporting on the Operating Plan in detail – Competitive Analysis, Tourism Development, Communications/Public Relations, Convention Sales, Convention Services and Convention Housing, Membership, 1999-2000 Budget Overview, 1999-2000 Budget.) At the conclusion of his presentation, Mr. Ahlers answered questions posed by the Mayor and Council Members. City Manager Ruth. He confirmed for the Mayor that departmental presentations are concluded for today and will continue next Tuesday. The presentations speak for themselves. The budget reflects tight fiscal planning which will continue for about another year and a half. It is a very responsible budget and addresses the priorities that the Council set forth. Public comments and questions on the FY1999/2000 Budget will be held at the 5:00 P.M. Public Hearing on the Budget. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session noting first that there were no additions to Closed Session items. 2 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 PUBLIC COMMENTS - CLOSED SESSION ITEMS: The following items are to be considered at the Closed Session. CONFERENCE WITH LEGA COUNSEL PURSUANT TO GOVERNMENT CODE 1. SECTION 54956.9 (a) – Existing Litigation: Name of case : Delmonico, et al. V. City of Anaheim, et al. (and related cases and cross Actions) Orange County Superior Court Case No. 70-80-71. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 2. SECTION 54956.9 (a) – Existing Litigation: Nam e of case: Vista Royale Homeowners Assoc. vs. 396 Investment Co. fka The Fieldstone Company, Orange County Superior Court Case No. 77-30-74, ( and related cases). CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE 3. SECTION 54956.9 (a) – Existing Litigation: Name of case : Contreras v. City of Anaheim, United States District Court Case No. CV98-1563-CRM ( RZX). PUBLIC EMPLOYEE PERFORMANCE EVALUATION: 4. Title : City Manager CONFERENCE WITH REAL PROPERTY NEGOTIATOR; 5. Property: 1.35 acres at the southwest corner of Freedman Way and Clementine Street (to be incorporated in 29.1 acre Pointe Anaheim Development) Negotiating parties : Pointe Anaheim LLC and City of Anaheim Under negotiation : Price and terms CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION: 6. Initiation of litigation pursuant to subdivision © of Section 54956.9 of the Government Code Government code: one potential case. CONFERENCE WITH LABOR NEGOTIATOR: 7. Agency Designated Representative : Dave Hill Employee organization : AFA Labor Negotiations, and City Clerk Recruitment. RECESS: Mayor Daly moved to recess into Closed Session. Council Member McCracken seconded the motion. MOTION CARRIED. (4:14 p.m.) AFTER RECESS: Mayor Daly called the regular Council meeting of June 8, 1999 to order and welcomed those in attendance. (5:38 p.m.) INVOCATION: Pastor Bryan Crow, from the Garden Church gave the invocation. FLAG SALUTE: Council Member Tom Tait led the assembly in the Pledge of Allegiance to the Flag. PRESENTATION - MISS ANAHEIM – 1999 - MELINDA KOEN: 119: Mayor Daly introduced the new Miss Anaheim - 1999, Melinda Koen to the audience congratulating her on winning the title of Miss Anaheim. 3 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Melinda Koen, Miss Anaheim – 1999. She is pleased to be present and especially proud to be representing the City in her capacity as Miss Anaheim. She is also looking forward to participating in the upcoming Miss California Pageant in Fresno. Mayor Daly and Council Members greeted and congratulated Ms. Koen; the Mayor also presented her with a bouquet of roses and wished her well in the next pageant. * * * * * * * * * * * * * * * * * * * PRESENTATION - INTRODUCTION - 1999 STUDENT AMBASSADOR SCHOLARSHIPS: 119: Mayor Daly introduced Greg Hastings representing the Anaheim Sister Cities Association who, in turn, will introduce recipients of the 1999 Student Ambassador Scholarships. Greg Hastings, Anaheim Sister Cities Association (and also Zoning Division Manager/Planning Department) introduced the four recipients who will be travelling to Mito, Japan on July 1, 1999. There were a large number of outstanding high school students competing for the opportunity. This year, the Association decided to send four students, the largest number to be sent, because there were so many deserving candidates. He then briefed the (exchange) program which started in 1994 and subsequently introduced and gave a profile/resume of each of the students as they came forward - John Ryan Enoch, Jr., Katella High School; Thomas Ronald Galaz, Gilbert East High School; Linda In Yea Kim, Loara High School, and Abbey Rose Winnick, Loara High School. All the students are from the Anaheim Union High School District and the Supervisor of the District, Jan Billings, is present today. He asked her to stand and be recognized. Mayor Daly and Council Members congratulated each of the students; Mayor Daly presented each with a letter of congratulations and wished them well as the City’s emissaries in Mito, Japan. * * * * * * * * * * * * * * * * * * PRESENTATION - ANAHEIM COMMUNITY FOUNDATION’S HELPING HANDS GRANT 119: RECIPIENTS: Chris Jarvi, Community Services Director. He first gave the background on the Helping Hands Grant which was instituted in November, 1996 suggested by a community activist, Sarah Alevizon , Anaheim Community Foundation ( ACF ) who came to the City and talked about the need to develop a program to assist in programs for youth and seniors and to assist in one-time utility bill assistance. The program was put together by the Public Utilities Department, Finance Department and Community Services with an appeal that goes out in Utility bills three times a year. This year $42,450 will be distributed to 23 organizations. He thanked Ed Aghjayan, Public Utilities General Manager, Bonnie Woodson, Technology Development Manager, Nancy Lerner and Eleanor Fix, Recreation Services Managers in different divisions of the Community Services Department, and Sarah Alevizon, President of the ACF. Sarah Alevizon , President, Anaheim Community Foundation. As Mr. Jarvi stated, $42,450 was raised through contributions in this, the second year of the program. The Foundation developed the criteria for receiving grants and conducted a competitive grant process. This year, $5,000 will be allocated to youth scholarships and $15,000 to help towards payment of utility bills (for those unable to do so) and emergency assistance through referrals from the Human Services Network and the Utilities Department. The remainder - $32,850 is being awarded this evening to the following community groups : American Diabetes Association, Anaheim Annual Flag Day Celebration, Anaheim Ballet, Anaheim Community Services (Senior Transportation Program), Anaheim Fall Festival, Anaheim High School, Anaheim Library Foundation, Anaheim Museum, Inc., Anaheim Nutcracker Holiday, Anaheim Sunrise Rotary Club, Anaheim Youth Employment Service, Boys & Girls Club of Anaheim, Canyon Acres Children’s Service, Canyon Hills Community Council, Child Guidance Center, Council on Aging, Disney GOALS, Get Safe, Guinn Elementary, Hi Hopes/Hope University, Loara High School, Salvation Army/Anaheim Red Shield Center, Special Olympics/Orange County. 4 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Ms. Alevizon congratulated all the recipients and thanked the Council for supporting the program. Mayor Daly acknowledged Ms. Alevizon’s role first in suggesting the program noting she was the driving force in encouraging the City to add this option for citizens to get involved in charitable giving through donations solicited along with utility bill mailings. The results have been tremendous. RECOGNITIONS AUTHORIZED BY COUNCIL THIS DATE TO BE MAILED OR PRESENTED AT ANOTHER TIME: 1. PROCLAMATION recognizing June 18, 1999, as Developmental Disabilities Day in Anaheim. 2. PROCLAMATION recognizing June 14, 1999, as Flag Day in Anaheim. 3. PROCLAMATION recognizing June 7 – 12, 1999, as Management Week in Anaheim. 4. PROCLAMATION recognizing June 27 – July 4, 1999, as Barbershop Harmony Week in Anaheim. Mayor Daly noted that one of the Proclamations authorized was the Flag Day in Anaheim recognition. He then gave the details of the Flag Day Celebration taking place on Sunday, June 13, 1999 in downtown Anaheim noting that Council Member Frank Feldhaus and his wife, Sally, have been very active in what is now an annual celebration from the very beginning. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $5,265,994.48 for the period ending May 24, 1999 and $3,132,347.87 for period ending June 1, 1999 and $2,654,999.29 for the period ending June 6, 1999, in accordance with the 1998-99 Budget, were approved. Mayor Daly recessed the City Council meeting until after the Anaheim Redevelopment Agency. (6:09 p.m.) Mayor Daly reconvened the City Council Meeting. (6:17 p.m.) ADDITIONS TO THE AGENDA: There were no additio ns to agenda items. ITEMS OF PUBLIC INTEREST: . Margaret Habib . She relayed complaints relative to harassment, lack of hot water in her apartment, her need for legal assistance and other problems/concerns; Mayor Daly stated they would ask the Police Department to try to follow up on some of the concerns expressed. * * * * * * * * * * * * * * * Linda Lee Grau , 24 Morning Dove, Irvine. She urged the citizens, staff and Council to read, “Economics in One Lesson” by Henry Hazlett. * * * * * * * * * * * * * * * * * * * * Rudy Escalante , 710 S. Philadelphia, Anaheim. He is Commander of the American United Forum and is present to support the Veteran’s Monument (see item 2 under the Redevelopment Agency Meeting) that will be built in Anaheim. It is long overdue. He is happy that finally they are going to have a monument to honor those who are still present and those no longer here. * * * * * * * * * * * * * * * * * * * Ray Torres, 5875 E. Avenue LaVida , Anaheim. He finds some quotations in “Economics in One Lesson” that probably best fit Council Member McCracken who is a pro-business person. 5 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 PUBLIC COMMENTS – AGENDA ITEMS: There were no public comments on City Council Agenda items. MOTION: Mayor Daly moved to waive reading in full of all ordinances and resolutions to be acted upon for the Council meeting of June 8, 1999. Council Member Kring seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR A1 – A41a : On motion by Mayor Daly, seconded by Council Member McCracken, the following items were approved in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar; Mayor Daly offered Resolutions Nos. 99R-104 through 99R-106 , both inclusive, for adoption. Mayor Daly offered Ordinance No. 5680 for adoption. Refer to Resolution/Ordinance Book. A1. 118: Rejecting and denying certain claims filed against the City. Referred to Risk Management. The foll owing claims were filed against the City and actions taken as recommended: a. Claim submitted by Almon R. Arthur for bodily injury sustained purportedly due to actions of the City on or about December 19, 1998. b. Claim submitted by Lurae Hunt for property damage sustained purportedly due to actions of the City on or about January 2, 1999. c. Claim submitted by Rebecca De Paola for property damage sustained purportedly due to actions of the City on or about December 31, 1998 . d. Claim submitted by David Lloyd Manker for property damage sustained purportedly due to actions of the City on or about April 27, 1999. e. Claim submitted by The Muller Co. ,c/o Bragg, Short, Serota & Kuluw for bodily injury sustained purportedly due to actions of the City on or about June 6, 1998. f. Claim submitted by James H. Antonowitsch for property damage sustained purportedly due to actions of the City on or about March 17, 1999. A2. 105: Receiving and fil ing minutes of the Mother Colony House Advisory Board meeting held March 5, 1999. 105: Receiving and filing minutes of the Budget Advisory Commission meeting held April 21, 1999. 173: Receiving and filing Application No. 99-05-029 filed by Southern California Gas Company asking the California Public Utilities Commission for approval to sell certain real property located in Playa del Rey , California, and to reduce rates by approximately $4.6 million as a result of an anticipated gain on the sale of the properties. 156: Receiving and filing the Anaheim Police Department Crime and Clearance Analysis for the month of April, 1999. 105: Receiving and filing minutes of the Private Industry Council meeting held April 29, 1999. 6 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 105: Receiving and filing minutes of the Public Utilities Board meetings held April 1, 1999, and April 22, 1999. A3. 175: Rejecting all bids in connection with the Polyplastic Water Main Services & Meters project. A4. 175: Awarding a contract to the lowest responsible bidder, International Flow Technologies, Inc., in the amount of $113,070 for Gilbert Street 8” Water Main Improvements; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A5. 175: Awarding a contract to the lowest responsible bidder SRD Construction, Inc., in the amount of $154,520 for Meter Vault Rehabilitation and/or Replacement; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A6. 175: Awarding a contract to the lowest responsible bidder, International Flow Technologies, Inc., in the amount of $166,527 for Large Valve Replacement 1999; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A7. 106: Amending the FY 1998/99 Public Works Department Capital Improvement budget to incorporate $250,000 from sewer maintenance reserves and $10,000 from Developer sewer funds to cover construction and contingency costs for the Harbor Boulevard Sewer Improvements. 164: Awarding the contract to the lowest responsible bidder, Elser Constructors, Inc., in the amount of $188,248 for Harbor Boulevard Sewer Improvements from Wilken Way to Chapman Avenue; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A8. 175: Awarding a contract to the lowest responsible bidder, Wayne Perry, Inc., in the amount of $314,369 for Underground District 33 – Fairmont Boulevard; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A9. 123: Approving an Agreement with Harrington Geotechnical Engineering, Inc., and AGRA Earth and Environmental, Inc., to provide soils testing, materials testing, and certified deputy building inspection services for capital improvement projects. A10. 169: Approving Contract Change Order No. 1, in the amount of $502,442.60 in favor of Sequel Contractors Inc., for Katella Avenue Improvements and Beautification, Phase I, and authorizing the Director of Public Works to execute said Change Order. A11. 158: Approving an Acquisition Agreement for real property located at 5677 East La Palma Avenue (Imperial Highway Smart Street Widening Improvements); authorizing the Mayor and City Clerk to execute said Agreement; and authorizing the acquisition payment of $26,239 to Brian and Cheryl Scudday. A12. 158: Approving an Agreement for Right-of-Entry for property located at 5650 East Santa Ana Canyon Road (R/W 5260-15) – Imperial Highway Smart Street Widening Improvements ; and authorizing the Mayor and City Clerk to execute said Agreement. 7 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 A13. 165: Declaring Southland Construction Company in default of its Contract Agreement for Sunkist/ Miraloma Sidewalk and Landscape Improvements and Academy Avenue Sidewalk Improvements; terminating the Contract Agreement with Southland Construction Company; and authorizing the Mayor to sign the takeover Agreement with Reliance Insurance Company, a Pennsylvania Corporation and surety for Southland Construction Company, to complete the work of improvements on behalf of Southland Construction Company. A14. 158: RESOLUTION NO. 99R- 104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying certain real properties, or interests therein to the City. A15. 160: Accepting the bid of Kuhlman Electric Corporation, in the amount of $18,639 for three 25 kVA and seven 50 kVA single phase subsurface transformers, in accordance with Bid #5937. 160: Accepting the bid of Central Maloney, c/o Southcoast Utility Sales, in the amount of $15,025 for six 75 kVA and one 100 kVA single phase subsurface transformers, in accordance with Bid #5937. A16. 160: Accepting the low bid of Preferred Paving Company, in an amount not to exceed $22,807 for the reconstruction of the parking lot at Fleet Maintenance, in accordance with Bid #5936. A17. 160: Accepting the low bid of Ram Air Engineering, in an amount not-to-exceed $40,000 for service/repair on cooling towers and centrifugal chiller equipment, as required, for a period of one year, commencing July 1, 1999; and authorizing the Purchasing Agent to exercise up to three additional one year renewals, limited to Consumer Price Index increases, in accordance with Bid #5942. A18. 160: Accepting the low bid of Deery American Corporation, in an amount not-to-exceed $64,365 for an estimated 350,000 pounds of C.M.C.200 asphalt sealant, for a period of one-year, commencing July 1, 1999, and authorizing the Purchasing Agent to exercise up to four additional one-year renewals, limited to Consumer Price Index increases, in accordance with Bid #5908. 160: Accepting the low bid of Koch Materials Company, in an amount not-to-exceed $32,553 for an estimated 165 tons of SS-1H sealant, including an estimated 100 hours of spreading charges, for a period of one-year, commencing July 1, 1999, and authorizing the Purchasing Agent to exercise up to four additional one-year renewals, limited to Consumer Price Index increases, in accordance with Bid #5908. A19. 160: Accepting the low bid of A. Y. Nursery, in an amount not-to-exceed $90,000 for 61 varieties of trees for the Releaf and TreePower Programs, for a period of one year beginning July 1, 1999, in accordance with Bid #5913. A20. 160: Accepting the bid of Silvia Construction, Inc., in an amount not-to-exceed $262,500 for the rental of asphalt recycling equipment, for a period of one-year commencing July 1, 1999, and authorizing the Purchasing Agent to exercise up to four additional one-year renewals, limited to Consumer Price Index increases, in accordance with Bid #5917. A21. 160: Accepting the low bid of Ken Thompson, Inc., in an amount not-to-exceed $411,154 for sewer and storm drain repair, for a period of one year commencing July 1, 1999; and authorizing the Purchasing Agent to exercise up to four additional one-year renewals, limited to Consumer Price Index increases, in accordance with Bid #5914. 8 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 A22. 160: Accepting the low bid of Fujikura America, Inc., in an amount not-to-exceed $459,969 for 48,900 lineal feet of 2000 KCMIL 69KV aluminum cable, in accordance with Bid #5929. A23. 160: Accepting the low bid of The Okonite Company, in an amount not-to-exceed $478,167.24 for a total of 38,270 circuit feet of 15 kV URD primary cable, in accordance with Bid #5935. A24. 160: Accepting the low bid of Nobest , Inc., in an amount not-to-exceed $820,950 for the removal and replacement of asphalt concrete and cross gutters, for a period commencing July 1, 1999, and authorizing the Purchasing Agent to exercise up to four additional one-year renewals, limited to Consumer Price Index increases, in accordance with Bid #5916. A25. 165: Authorizing the issuance of a change order, in a total amount not-to-exceed $901,669 to Nobest, Inc., for concrete replacement in various sections of West Anaheim, in accordance with Bid #5386. A26. 160: Waiving Council Policy 306, and authorizing the Purchasing Agent to issue a Purchase Order to Vicro Manufacturing Corporation, in the amount of $21,500 for 500 portable folding chairs for the Convention Center. A27. 160: Waiving Council Policy 306, and authorizing the Purchasing Agent to issue a Purchase Order to Western Farm Service, Inc., in an amount not-to-exceed $100,000 for fertilizers, fungicides, and herbicides, as required, for a two-year period beginning July 1, 1999, through June 30, 2001. A28. 160: Waiving Council Policy 306, and authorizing the Purchasing Agent to issue a Purchase Order, in an amount not-to-exceed $500,000 for the repair and replacement of the load tap changer and associated equipment for the 3A-bank transformer at Lewis Substation. A29. 142: ORDINANCE NO. 5680 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Subsection .100 of Section 6.44.010 of Chapter 6.44 of Title 6 of the Anaheim Municipal Code relating to nuisances. (Introduced at the meeting of April 27, 1999, Item A30, and continued from the meetings of May 4, 1999, Item A10, and May 11, 1999, Item A10.) Council Member Kring . She has a concern relative to this ordinance and would like to hear from staff to give an update. (Also see minutes of April 27, 1999 when the ordinance was introduced, and also minutes of May 4 and May 11, 1999 where it was previously discussed.) City Attorney White. This item would add a provision to the Anaheim Municipal Code ( AMC) to provide that violations of conditions of discretionary permits and entitlements such as CUP’s approved by the City would be considered nuisances and could be abated under the City’s nuisance code in Chapter 6.44. Staff was looking at innovative ways to handle violations that were occurring primarily with relation to motel units that were’nt being properly and adequately maintained. Under the current ordinance(s), the only jurisdiction the City has if a property owner violates conditions of approval of a CUP is to schedule a Public Hearing before the Planning Commission and, if appealed to the Council, to revoke or modify the permit. This would add an additional tool to allow the City to process these as property nuisances and to follow the more expedited procedure, i.e. , noticing the property, requiring compliance with the condition(s) and if there is non-compliance, holding a hearing in front of the Council and obtaining compliance or being able to have the work accomplished through the City and the cost placed as a lien on the property. John Poole , Code Enforcement Manager. The reason staff is asking for this change is to deal with some of the problem motels. The last time it was discussed at Council, there was some concern from 9 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 members of the Chamber. Subsequently, he met with the Chamber Legislative Committee where there was extensive discussion. The Committee recommended to support the ordinance. He received a letter today that the Board of Directors concurs with the (Committee’s) recommendation. They did recommend adding language that would limit enforcement of CUP uses to health, safety and welfare. He spoke to the Executive Vice President and told him the whole nuisance code is enacted to address health, safety and welfare issues. He also assured the Chamber this would only be used, as with all Code Enforcement cases, if all else fails. It gives an extra tool to be used in a very limited way. Council Member Tait . He surmised, under the current code, if one of the conditions of a permit were not met, that would not be considered a nuisance ; John Poole. He confirmed that was correct. However, even with the change, they would still have to go through due process. Council Member Tait . In reading the ordinance, it seems like any violation of any condition of approval is deemed a nuisance punishable by a misdemeanor even though no one would intend to prosecute minor violations; John Poole. When they go to court, it has to be something substantial in nature. City Attorney White. Staff has a lot of difficulty getting the courts to treat most property maintenance issues as serious. The courts do not like to treat less serious offenses as criminal conduct and he agrees with Mr. Poole from that standpoint. If the Council is concerned about the use of the criminal process, they once before talked about criminalizing violations of conditions and it was not adopted. The intent is to allow staff to use the civil abatement system rather than the criminal system. The only remedy they now have is to revoke a CUP. Council Member Tait . The proposed ordinance states, “violation under this provision shall be punishable by imprisonment . . . “ That is where he has a big problem. He believes minor violations should not be made criminal or a businessman made a potential criminal. He cannot in good conscience vote for this. Mayor Daly. If there is support to adopt the ordinance, he recommends that they ask staff to report back to the Council as to its effectiveness and do so in six months or a year. He is going to speak in favor because he believes it is important in this era of trying to clean up parts of the City, to have tools such as the one proposed. Council Member Kring . She cannot go along with the proposed ordinance. Even though it was stated the Courts are not likely to support such issues, the process is an expensive and time-consuming one for the party accused only to have it ultimately “thrown out ” . She would like to see the ordinance changed or worked out in a different way or make it all civil with nothing criminal. It has to be all inclusive (all businesses) and she feels it will cause a lot of undue hardship. Additional discussion followed where Council Members Feldhaus, Tait and McCracken gave additional input relative to the issue with further clarification of the recommendation/intent given by both Mr. Poole and City Attorney White. Mr. White reiterated the reason it was brought before the Council was not to bring something to them to criminalize the conduct but to get it into a different arena from either the revocation process or the criminal process. Indirectly it could be used through the criminal process. The reason for the recommendation of adoption is to make it a nuisance which then becomes an issue of civil abatement. There is a whole process in Section 6.44 which he again briefed. It is not something that is just a staff prerogative without the Council being involved in the process. The process would be initiated by the staff although the Planning Commission, or Council could also initiate the action. Mayor Daly asked the City Attorney if he continues to recommend this change as a prudent course of action ; City Attorney White answered yes. Mayor Daly offered Ordinance No. 5680 for adoption. ORDINANCE NO. 5680: (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SUBSECTION .100 OF SECTION 6.44.010 OF CHAPTER 10 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 6.44 OF TITLE 6 OF THE ANAHEIM MUNICIPAL CODE RELATED TO NUISANCES. Mayor Daly. He asked that staff report back in six months to let the Council know how this is working. A30. 123: Approving the Second Amendment to the Attorney Services Agreement with Ferguson, Praet & Sherman to reflect the currently hourly rates of the attorneys performing legal services on behalf of the City. A31. 123: Authorizing the execution of an Agreement with Unique Management Services, Inc., dba Unique National Collections to provide third party assistance in recovering non-returned library materials and collecting unpaid fines in excess of $40. A32. 123: Approving a License Agreement with Feedback Foundation, Inc., to utilize Brookhurst Community Center on a shared basis to provide a comprehensive meal program including recreational activities and social services to senior citizens through June 30, 2000. A33. 123: Approving Amendment No. 1 to Agreement No. C-8-0184 (Senior Citizens) with the Orange County Transportation Authority ( OCTA ) to extend the current Agreement for four months, July 1, 1999, through October 31, 1999, to allow the City, OCTA and the Area Agency on Aging to come to an agreement on a new pilot program to reduce cost per trip. A34. 123: Approving a Fifth Amendment to the Agreement with the Orange County C hapter of the American Red Cross for swimming lesson service fees to extend the terms of the Agreement until May 31, 2000. A35. 123: Approving an Agreement with Bernards Bros. Construction for the lease of one acre of the proposed Ross Parksite for temporary construction material and equipment storage yard. A36. 161: Approving the Disposition and Development Agreement by and among the City, Agency and Summit Commercial Properties, Inc.; authorizing the City Manager and the Executive Director of the Redevelopment Agency to execute said document and all other necessary implementing documents, including a Parking License Agreement; and (2) approving the concept drawings and materials for the Summit Commercial Properties, Inc., building, excepting monument signage and public art. (Continued from the meetings of May 11, 1999, Item A11, and May 18, 1999, Item A21.) A37. 123: RESOLUTION NO. 99R- 105 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Job Training Partnership Act Titles II-A/II-B/II-C Master Subgrant Agreement between the City of Anaheim and the State of California for the term of July 1, 1999, through June 30, 2002. A38. 155: RESOLUTION NO. 99R- 106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM waiving notice of lease agreement by the County of Orange of certain property located at 1000-1010 South Harbor Blvd. Mayor Daly. This involves the old County Agricultural Headquarters. The property is continuing to deteriorate. He knows the County tried to sell it a few times and the School District had an option to buy it. Now it looks like the County wants to rent it back from the School District. 11 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 City Manager Ruth. His understanding is the County wants to lease it for about five months but the School District fully intends to build a school on the site. He believes this is just an interim move. Mary McCloskey , Deputy Planning Director. The County’s agricultural operations are at that location and they want to continue it for approximately nine months from the date of the escrow closing. Mayor Daly. He would like a separate report on site planning, if there is any park potential, and how the City is coordinating with the School District on the development of the school on that site. A39. 123: Approving an Operational Agreement between the City of Anaheim Police Department and the Anaheim Union High School District, for the Office of Juvenile Justice and Delinquency Prevention’s “Safe Schools/Healthy Students Initiative” Grant Program, and authorizing the Acting Chief of Police to execute said Agreement. A40. 123: Authorizing the City Manager to execute Amendment No. 1 to Agreement between Orange County Transportation Authority and the City of Anaheim for Fund Exchange. A41. 114: Approving m inutes of the City Council meetings held May 4, 1999, and May 11, 1999. A41 .-a 101: Approving the request of Tinseltown Studios to produce an interactive swing show on Friday nights from 9:00 p.m. to 1:00 a.m. Roll Call Vote on Resolution Nos. 99R-104 through 99R-106, both inclusive, for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, Tait, McCracken, Daly NOES: MAYOR/COUNCIL MEMBERS : None ABSENT: MAYOR/COUNCIL MEMBERS : None The Mayor declared Resolution Nos. 99R-104 through 99R-106, both inclusive, duly passed and adopted. Roll Call Vote on Ordinance No. 5680 for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, McCracken, Daly NOES: MAYOR/COUNCIL MEMBERS : Kring, Tait ABSENT: MAYOR/COUNCIL MEMBERS : None The Mayor declared Ordinance No. 5680 duly passed and adopted. PUBLIC HEARING ON THE FISCAL YEAR 1999/2000 CITY BUDGET PLAN : A42. 106: The Mayor opened the Public Hearing on the City Budget to receive public comments. (A Budget Workshop was held at 2:00 P.M. and a scheduled number of Departmental Budget presentations made – see minutes of the Special Meeting of June 8, 1999 and regular meeting of June 8, 1999.) Mayor Daly. He opened the Public Hearing. This is the opportunity for the public to comment on the proposed 1999/2000 City Budget. Linda Lee Grau , 24 Morning Dove, Anaheim. Citizens should ask their elected representatives to hone down costs and reduce budgets. She asked the percentage of increase or decrease in the budget; Mayor Daly asked her to check with the City Clerk’s Office where a copy of the Budget is filed. There was no additional public input. 12 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 MOTION. Mayor Daly moved to continue the Public Hearing on the Budget to Tuesday, June 15, 1999 at 5:00 P.M. Council Member McCracken seconded the motion. MOTION CARRIED. APPOINTMENT TO THE PRIVATE INDUSTRY COUNCIL : A43. 105: Appointing one new member to the Private Industry Council from the Private Sector Category to serve a four-year term. Mayor Daly opened nominations. Council Member McCracken nominated Tom Vogt/Council Member Kring voiced her concurrence. MOTION: On motion by Council Member Feldhaus seconded by Council Member McCracken, nominations were closed. MOTION CARRIED. Mr. Vogt was thereupon unanimously appointed to serve a four-year term on the Private Industry Council in the Private Sector Category. AMENDMENT TO SECTION 1.04.997 OF CHAPTER 1.04, TITLE 1 OF THE ANAHEIM A44. 142: MUNICIPAL CODE RELATING TO THE BUDGET ADVISORY COMMISSION: To consider the adoption of an ordinance of the City of Anaheim amending Section 1.04.997 of Chapter 1.04 of Title 1 of the Anaheim Municipal Code reducing the number of Budget Advisory Commissioners to five and reducing the number of meetings held yearly to a minimum of four. Mayor Daly. This would reduce the size of the Budget Advisory Commission ( BAC) and the required number of meetings. Mayor Daly offered Ordinance No. 5686 for adoption. ORDINANCE NO. 5686: (ADOPTION ) AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING SECTION 1.04.997 OF CHAPTER 1.04 OF TITLE 1 OF THE ANAHEIM MUNICIPAL CODE RELATING TO THE BUDGET ADVISORY COMMISSION. Roll Call Vote on Ordinance No. 5686 for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, Tait, McCracken, Daly NOES: MAYOR/COUNCIL MEMBERS : None ABSENT: MAYOR /COUNCIL MEMBERS : None The Mayor declared Ordinance No. 5686 duly passed and adopted. APPOINTMENT TO THE BUDGET ADVISORY COMMISSION : Appointment to fill the unexpected vacancy of Cindy Floriani for the term expiring 6/30/200. Since the foregoing ordinance was adopted by the Council, no action is required on the appointment scheduled to be made. ITEM B1 FROM THE ZONING ADMINISTRATOR MEETING OF MAY 20, 1999 - DECISION DATE: MAY 27, 1999 INFORMATION ONLY - APPEAL PERIOD ENDS JUNE 11, 1999: VARIANCE NO. 4359, AND NEGATIVE DECLARATION: B1. 17 9: OWNER: Gary Bukamier, 4341 Eureka Avenue, Yorba Linda, CA 92801 13 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 LOCATION: 4745 E. Bryson Street. Property is 0.45 acre having a frontage of approximately 102 feet on the north side of Bryson Street, and a maximum depth of 164 feet and located 400 feet west of the centerline of Hancock Street. Waiver of minimum number of parking spaces to permit a 2,444 square foot existing office space within an existing industrial building. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Variance No. 4359 APPROVED ( ZA DECISION NO. 99-18). Negative Declaration APPROVED. END OF THE ZONING ADMINISTRATOR ITEMS. ITEM B2 FROM THE PLANNING COMMISSION MEETING OF B2. MAY 24, 1999 - INFORMATION ONLY APPEAL PERIOD ENDS JUNE 8, 1999: REQUEST FOR DETERMINATION OF SUBSTANTIAL CONFORMANCE WITH THE 134: ANAHEIM GENERAL PLAN : County of Orange, Attn: Carolyn C. Ansari, 1300 South Grand Avenue, Bldg. A, Santa Ana, CA 92705, request determination of substantial conformance with the Anaheim General Plan for the proposed lease of office space. Property is located at 1000- 1010 South Harbor Boulevard. ACTION TAKEN BY THE PLANNING COMMISSION: Determined to be in substantial conformance with the Anaheim General Plan. END OF THE PLANNING COMMISSION ITEMS. ORDINANCE FOR INTRODUCTION B3. 179: : Mayor Daly offered Ordinance No. 5687 for first reading. ORDINANCE NO. 5687 (INTRODUCTION) AMENDING TITLE 18 TO REZONE PROPERTY UNDER RECLASSIFICATION NO. 98-99-01 LOCATED AT 1773 WEST LINCOLN AVENUE FROM THE ML ZONE TO THE CL ZONE. REQUEST FOR REHEARING - RE: FAIRMONT PRIVATE SCHOOL - WAIVER OF CODE B4. REQUIREMENT – CONDITIONAL USE PARMIT NO. 4075 AND NEGATIVE DECLARATION: WAIVER OF CODE REQUIREMENT 179: CONDITIONAL USE PERMIT NO. 4075, AND NEGATIVE DECLARATION: OWNER: Raymond Runo Trust, Norma Hillman, Dan Neyenhuis, Lillian Runo, 1120 Kenwood Place, Fullerton, CA 92831 AGENT: David Jackson, 100 S. Anaheim Blvd., #125, Anaheim, CA 92805 LOCATION: 1575 West Mable Street - Fairmont Private School. Property is 0.89 acre located on the north side of Mable Street, 270 feet east of the centerline of Loara Street. To permit the conversion of an existing 14,775 square foot industrial building into a private elementary and junior high school addition to the existing Fairmont Private School with waiver of minimum number of parking spaces. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4075 GRANTED for 20 years, to expire March 1, 2019 ( PC99-35) (7 yes votes). 14 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Appro ved waiver of code requirement. Approved Negative Declaration. Informational item at the meeting of March 23, 1999, Item B2. Letter of appeal submitted by Bryan Industrial Properties, Inc. Public hearing continued from the meeting of April 27, 1999, Item D1. At the public hearing held May 11, 1999, Item D1, the Anaheim City Council GRANTED CUP NO. 4075 (Resolution No. 99R-91). A letter of appeal of the Planning Commission’s decision was submitted by Bryan Industrial Properties, Inc., and a Public Hearing set and continued from the meeting of April 27, 1999 to May 11, 1999 (Item Dl.). At that Public Hearing, the City Council granted Conditional Use Permit 4075 under Resolution No. 99R-91. The Request for a Rehearing was submitted by Bryan Industrial Properties. Mayor Daly. He referred to the Request for Rehearing received along with a Declaration of Merit regarding the subject. MOTION. Council Member Feldhaus moved to grant the request for a rehearing. Mayor Daly seconded the motion. Before a vote was taken, Mayor Daly stated he is not one to submit to another long hearing if there is no change of heart (see minutes of May 11, 1999 where extensive discussion and input was received.) He asked if there was new information or a new perspective or reason for a rehearing. Council Member Feldhaus asked if the petitioner was present; Mayor Daly asked if a spokesperson was present. Mr. Phil Anthony acknowledged he was present to speak to the issue if necessary. Mayor Daly noted as an attachment to the request there is a statement about what was believed to be a misrepresentation. He asked the Council if they wanted another hearing or were they comfortable with the previous decision ; Council Member Tait stated he was comfortable. Council Member McCracken . She has mixed feelings because she doesn’t know if there is going to be any change in information other than the Samson Motorcycle letter. It did carry a great deal of weight with her. The big issue is that it is a changing neighborhood with residential on one side of Loara and industrial on the other. She voted in favor of the school’s request. She does not know if her vote could change with any additional information. With Samson Motorcycle, there might be some additional information regarding that particular rental property. Mr. Phil Anthony, representing the petitioner, 14101 LaPatt Place, Westminster. They feel there was some misinformation that came to the Council after the Public Hearing was closed. It was a total surprise although he believes it was said in error. This area is one in transition and desparately in need of long-range planning. Mr. Price had been one of the leading opponents of the expansion for months. He sent his letter dated May 10, 1999; the letter was subject to serious question and interpretation. The Traffic Engineer spoke in rebuttal and said many things that they believe were in error. They had no chance to argue or complain about his presentation. The applicant claimed he had a 10-acre site when they all know it's more like five acres and made no attempt to correct that. It is a 20% expansion and takes a key piece of property out of contention for many years. A vote was then taken on the motion to grant a rehearing and carried by the following vote : Ayes – Feldhaus, McCracken, Daly. Noes – Kring, Tait. REQUEST FOR REHEARING- SOUTH COAST CAB COMPANY’S REQUEST FOR A C1. 173: PERMIT TO OPERATE A TAXI SERVICE: 15 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 To South Coast Cab Company’s request for a permit to operate taxi service. At the meeting of May 18, 1999, Item C1, the Anaheim City Council denied South Coast Cab Company’s request for a permit to operate taxi service in the City of Anaheim. Staff was directed to prepare an ordinance for Council consideration to impose a moratorium on the issuance of taxi permits until such time as the recommendations of the ad hoc committee are received and considered by the City Council. Staff was also directed to solicit interest from the community related to the establishment and formation of a five to seven member ad hoc committee with representatives from stakeholders in the community such as the Greater Anaheim Chamber of Commerce, the Anaheim/Orange County Visitor and Convention Bureau, Orange County Taxi Administration, hotel/motel operators, restaurants, hospitals, and/or residents. The committee would review the City’s current and future taxi service needs, determine a recommended method to establish priority for choosing the next company( ies) to receive permits as needed, and report findings and recommendations to the City Council prior to granting any additional permits beyond those being considered at this meeting. Mayor Daly. The Council has all the written backup material submitted by the applicant. He asked if there was any desire for a rehearing on the subject. There was no response. MOTION: Council Member Tait moved to deny the request for a rehearing. Council Member McCracken seconded the motion. Mayor Daly and Council Member Feldhaus voted no. MOTION CARRIED. CONSIDERATION OF A MORATORIUM ON TAXICAB PERMITS : C2. 173: To consider an ordinance placing a moratorium upon the filing, processing and issuance of taxicab permits in the City of Anaheim for a period of 45 days or until completion of a study and the receipt of recommendations from the ad hoc committee as authorized by the City Council on May 18, 1999. Submitted was report dated June 3, 1999 from the City Attorney recommending that the Council consider the proposed ordinance. ORDINANCE NO. (URGENCY) AN ORDINANCE OF THE CITY OF ANAHEIM adopting an interim measure imposing a moratorium on the issuance of new operator permits, or permits to existing operators for additional vehicles, for taxicab or chauffeured limousine services in the city of Anaheim which permits may be in conflict with new regulations the City is studying or intending to study; and declaring that this ordinance is an emergency measure which shall take immediate effect. Council Member Feldhaus posed questions relative to the proposal referring to specific portions of the proposed ordinance. He feels if the ordinance is to have an effect, it should be applied to all companies, those existing as well. City Attorney White explained it would apply to all companies as far as having new taxi cabs authorized. The reason for the proposed language is to allow an existing operator to continue to operate pending completion of the study and the adoption of new regulations. If their license expires before the moratorium is in effect without that language, they could not get a renewal of their license or a driver could not come in and get another license. Council Member McCracken asked staff why they felt it necessary to put the moratorium in place. 16 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 John Poole , Code Enforcement Manager. At the last Council meeting, the Council directed staff to form an ad hoc committee to review the City’s current and future taxi service needs and subsequently report their findings and recommendations to the Council prior to adding any additional permits. Staff has formed the committee and the first meeting is tomorrow with the expectation they will be back in 90 days with new recommendations. The moratorium will keep others from applying during the interim. If they start accepting applications, under the code, they have to be processed within 60 days. It would be consistent to have a moratorium until the study is complete; otherwise, people will be applying under the old ordinance and it is likely the committee will recommend changes to the existing ordinance. Council Member Feldhaus . He will be voting against the proposed moratorium because he believes the makeup of the committee is not the proper mix. There are also two members that have not yet been appointed by the Chamber. Council Member Kring asked from what groups did staff pull the names ; John Poole. The Anaheim/Orange County Visitor and Convention Bureau, Chamber of Commerce, Anaheim Area Motel/Hotel Association, Disneyland, Orange County Taxi Administration and also a citizen from both the east and west portion of the City. The list has not yet been submitted to the Council since he just got it at 5:00 p.m. today and they also need to get the names from the Chamber. Council Member Kring reiterated her request that an economist be a part of the committee since an economist will bring with him/her an objective view. She would like to have someone who will do it on “pro bono” basis or at a nominal cost. Even though it may cost a little bit of money, she feels it is incumbent for the City to pick up that portion. She is working diligently to find an economist to work on the committee. She feels this will help in eliminating any criticism that the committee is prejudiced one way or the other. Mayor Daly. He will be opposing for the reasons previously stated (see minutes of May 18, 1999). He is uncomfortable with a moratorium at a time when he believes they should be adding more competition and service. Council Member Tait offered the proposed the urgency ordinance, adopting an interim measure imposing the subject moratorium. Before further action was taken, City Attorney White noted since it is an urgency ordinance, it will take a 4/5’s vote of the Council for adoption. He also noted the public was given an opportunity to speak on all agenda items A, B and C (including this item) at the start of the meeting. A vote was then taken on the proposed urgency ordinance and failed to carry by the following vote (4/5’s approval required) : Ayes: Kring, Tait, McCracken. Noes: Feldhaus , Daly. City Attorney White. Because it was intended that this be an ordinance of short duration, unless otherwise directed, he would not be inclined to bring back a regular ordinance which would take about 45 days to go into effect. He reiterated, unless the Council directs him otherwise, he does not intend to bring back another ordinance. Council Member Feldhaus . Mr. Poole indicated they would have a proposed ordinance in 90 days ; John Poole. He clarified they would have the report back from the committee in that time but not a proposed ordinance prepared. There was no further action taken by the Council on the subject at this time. Council Member Tait explained that his engineering firm has done work for Home Depot in the past year as well as for Thirfty Oil Company and the parent company of Jack-in-the-Box. Since there is a potential conflict of interest, he will be abstaining from discussion and voting on Items D1 ., D2., D3. and D4. (He thereupon left the Council Chamber and did not return to the Council meeting (7:20 p.m.). 17 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 CONTINUED PUBLIC HEARING - WAIVER OF CODE REQUIREMENT D1. 179: CONDITIONAL USE PERMIT NO. 4082 AND ENVIRONMENTAL IMPACT REPORT NO. 319: OWNER: The Home Depot, Attn: Dan Campbell, 3800 W. Chapman Ave., Orange, CA 92868 LOCATION: 800 North Brookhurst Street - Home Depot. Property is 9.45 acres located at the northeast corner of Gramercy Avenue and Brookhurst Street. To construct a 60-foot high freestanding pylon sign with waivers of (a) maximum area of signs, (b) permitted location of freestanding signs, (c) maximum height of freestanding signs and (d) maximum sign width. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4082 DENIED ( PC98-203) (6 yes votes, 1 absent). Waiver of code requirement DENIED. Approved previously certified EIR NO. 319. Informational item at the meeting of January 12, 1999 item B6. Letter of appeal submitted by Sign Methods. Public Hearings continued from the meetings of February 23, 1999, Item D2, March 16, 1999, Item D1, May 4, 1999, Item D1. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News: February 11, 1999 Mailing to property owners within 300 feet: February 11, 1999 Posting of property: February 12, 1999 Greg Hastings, Zoning Division Manager briefed the staff report to the City Manager/City Council dated May 4, 1999 which outlined the Home Depot sign request as stated in the report at the conclusion of which he stated that the Planning and Community Development Departments continue to recommend denial of the sign request (CUP 4082). He then answered questions by Mayor Daly and Council Members relative to the specifics of the request. Mayor Daly then opened the Public Hearing and asked to hear from the applicant or applicant’s agent. Mr. Roger Grable , Paone Callahan McHolm & Winton, 19l00 Von Karman , Irvine representing Home Depot. They have special circimstances they need the Council’s help in addressing. They opened under the approval they received but are finding this store is significantly underperforming by 14%, less than at its previous location. They find when they relocate, their business goes up by about 20%. The store is underpeforming by about 27 to 30 plus percent. Since the original application was filed, they reduced the height of the sign to the minimum possible yet able to get visibility from the freeway and they also reduced the size of the sign. They want to be sensitive and understand the issue of freeway clutter but there are special circumstances that apply to the site by virtue of the freeway construction and reconstruction of the bridges. They would be amenable to the sign going up for an interim period and would take it down at a time that would meet the City’s objective when the freeway improvements are completed. They feel this would be a useful solution which was not considered by the Planning Commission. They originally asked for five years. If Council is amenable and a shorter period is more acceptable, they would be more than willing to consider that. It is of benefit to the City for the store to be successful. Mayor Daly asked the timetable for installation of the monument sign; Mr. Grable stated they do not have one yet. It is a small sign and it does not solve their overall problem of having people find the location. Previous customers do not know they are at the subject location; they need some interim help. Mayor Daly asked to hear from those either in favor or in opposition; there was no response. 18 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Council Member Feldhaus asked when the freeway interchange would be completed ; Joel Fick, Planning Director. The last schedule was toward the end of 2000 for the freeway construction. Relative to Brookhurst Street, on the east side in front of Home Depot, those improvements should be completed at the end of this month and they will then start on the other side of Brookhurst. Alfred Yalda, Principal Transportation Planner , explained also there is a plan to install a traffic signal. He notified Home Depot a couple of weeks ago to proceed with their plan for installation of the signal because most of the construction in front of the business will be completed by the end of this month. That signal will operate in front of Home Depot to regulate traffic at Home Depot, Sequoia Avenue and Brookhurst. It will be a fully operated signal at that location. After completion of the consturction, they will have full turning movements. The anticipated schedule is the beginning of 2001. Mayor Daly. The time line he has heard is 18 months for completion of the interchange and all the other improvements. He is going to suggest a compromise where they would allow the third sign, the 48’ sign, for a period of two years. The City did subsidize the move of Home Depot from the previous location. If the Council approves a 48’ sign for two years, he asked Mr. Grable if he would stipulate to the fact that the sign will come down in two years. Roger Grable . They will be happy to do that and enter into an agreement. The only problem is it cuts close to the construction schedule. There is also the possibility that the construction schedule could be extended significantly. Mayor Daly. He will modify his motion to say approximately two years from today unless staff reports back that there is a substantial delay in finishing the interchange. The intent is to allow additional signage for the duration of the construction period and 24 months should actually build in a six-month padding. City Attorney White. He would recommend that the condition be worded for a period of two years. If there are extraordinary circumstances, the applicant could come back and make the case as to the fact that the construction had not been completed. This would set an absolute time and absent that case being made, it would have to be removed at the end of the two-year period. Council Member Kring asked if it was two years from the time it goes up or two years from today; Mayor Daly clarified he was talking about two years from today. He would like tonight be set as the milestone date. City Attorney White. He assumes the offering would include the recommended interdepartmental recommendations as well as that the CUP would expire two years from this evening. Mayor Daly asked staff if they were comfortable with the proposed approval; Joel Fick answered, since it is an interim action, staff is comfortable. Mayor Daly offered Resolution No. 99R-107 for adoption approving CUP 4082 granting the requested 48’ sign for a period of two years from today’s date and incorporating the interdepartmental staff recommendations. Refer to Resolution Book. ENVIRONMENTAL IMPACT REPORT FINDING – EIR NO. 319 PREVIOUSLY CERTIFIED: On motion by Mayor Daly, seconded by Council Member Kring, the City Council finds that on June 30, 1987, it has previously Certified EIR No 319. making certain findings in connection therewith and finding that there are no additional impacts in connection with the subject action. MOTION CARRIED. Mayor Daly offered Resolution No. 99R-107 for adoption, granting Conditional Use Permit No. 4082. Refer to Resolution Book. 19 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 RESOLUTION NO. 99R-107 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 4082. Roll Call Vote on Resolution No. 99R-107, for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, McCracken, Daly NOES: MAYOR/COUNCIL MEMBERS : None ABSENT/ABSTAINED: MAYOR/COUNCIL MEMBERS : Tait The Mayor declared Resolution No. 99R-107, duly passed and adopted. CONTINUED PUBLIC HEARING - WAIVER OF CODE REQUIREMENT D2. 179: CONDITIONAL USE PERMIT NO. 4101 DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 99-01 AND NEGATIVE DECLARATION: OWNER: Thrifty Oil Company, Attn: Vincent Le Pore, 13539 East Foster Road, Santa Fe Springs, CA 90670 AGENT: David Rose, 3870 La Sierra Avenue, #193, Riverside, CA 92505 LOCATION: 300 South Brookhurst Street - Thrifty Oil. Property is 0.51 acre located at the southeast corner of Brookhurst Street and Broadway. Conditional Use Permit No. 4101 - to establish conformity with existing zoning code land use requirements for an existing service station and to convert an existing accessory auto repair/cashier building into a convenience market with retail sales of beer and wine for off- premises consumption with waivers of (a) continuation of nonconforming billboards – DENIED, (b) minimum landscaped setback adjacent to an arterial highway – APPROVED, (c) minimum retail sales floor area – DENIED, and (d) minimum landscaped setback adjacent to interior boundary lines – DENIED. Public Convenience or Necessity No. 99-01 - to determine Public Convenience or Necessity to allow the retail sales of beer and wine for off-premises consumption within the proposed convenience market. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4101 DENIED ( PC99-40) (6 yes votes, 1 absent). Waiver of code requirement APPROVED, IN PART, denying waivers (a), (c) and (d), and approving waiver (b). Determination of Public Convenience or Necessity No. 99-01 DENIED ( PC99 -41). Approved Negative Declaration. Informational item at the meeting of April 6, 1999, Item B1. Letter of appeal submitted by the Agent, David Rose. Public hearing continued from the meeting of May 4, 1999, Item D2. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News: April 22, 1999 Mailing to property owners within 300 feet: April 15, 1999 Posting of property: April 16, 1999 Greg Hastings, Zoning Division Manager, briefed the Staff report to the Planning Commission dated March 15, 1999 which outlined the subject proposal. He also explained that four weeks ago, the ordinance creating the Brookhurst Corridor Overlay Zone became effective which prohibits the off- premise sale of alcohol for markets under 30,000 sq. ft. The Planning Commission on May 24, 1999 reviewed revised elevation, landscaping and signage plans and deemed them to be improvements to previously submitted plans. They continued to express concern with beer and wine sales at this location. If Council approves this request, staff recommends additional enhancements on the back side or easterly 20 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 elevation of the building facing Broadway. Staff recommends a small amount of additional landscaping be added along the north and east building elevations also visible to Broadway. The existing 18’ pole sign would also be removed and replaced with an 8’ high monument sign. The two billboards would also be removed. Since plans have been revised, only one waiver remains pertaining to the size of the retail floor area. Code requirement is 1200 sq. ft. and 375 is proposed. This waiver is further impacted by the Brookhurst Commercial Corridor Overlay zone. If Council desires, this could be waived or Council could re-examine this part of the ordinance. The applicant is also asking Council to make a PC&N determination. The crime rate has gone down 3% below the City’s average since the Planning Commission reviewed the proposal. A liquor store exists immediately to the east. Staff has received a letter of opposition from WAND regarding alcohol sales. Redevelopment staff also opposes the beer and wine sales request. Aside from the beer and wine isssue, the developer’s proposal will vastly improve the current land use on the property. If Council approves the request, the Commission and staff recommend that Condition Nos. 2, 6 and 41 be retained. These conditions require the Commission to review the final landscape signage and elevation plans one more time. Council may also wish to note Condition 17 which provides for expiration of the permit in three years, the Planning Commission did not discuss this condition since there was denial. Condition 23 requires driveways closest to the intersection be closed. Revised plans reflect this on the Broadway side. Since the closure of the driveway on Brookhurst would greatly impact the use of the existing pump islands, Traffic Engineering staff is now no longer requiring as a condition of approval the closure of the Brookhurst driveway. Mayor Daly. He noted that Conditions 2, 6 and 41 are in the package now. He asked if staff wanted additional language or did they just want to make sure if Council approves the project, it is brought to the Council’s attention that the Planning Commission wanted to see the design elements on those items; Mr. Hastings confirmed that was correct. He also confirmed that staff is recommending the project with the exception of beer and wine. They would also like to see them improve elevations on the east side of the building and additional landscaping on the north and east side adjacent to the building. Mayor Daly opened the Public Hearing and asked to hear from the applicant or applicant’s agent. Mr. David Rose III, The Regents Group, 3870 LaSierra Avenue, Suite 193, Riverside, CA (Thrifty Oil is the property owner/Arco Products Company is the tenant). They went back to the Planning Commission to address their concerns relative to the landscape, signage and elevations. The Planning Commission unanimously approved. They concur with all staff’s recommendations including those to add architectural elements to the east side of the elevation on Broadway in addition to landscaping on the east side of the building facing Broadway. Relative to Condition 23, he asked for purposes of confirmation if that condition is no longer to apply. Greg Hastings. That condition would be, one driveway on Broadway and two on Brookhurst. Mr. Rose then continued with a slide presentation (also see booklet submitted – Thrifty Oil Convenience Store – 300 South Brookhurst Street, Anaheim - with photographs showing the existing station (166 sq. ft. of landscaping, two billboards and one pole sign) and what was being proposed (3,939 sq. ft. of landscaping, billboards to be removed and one monument sign). The site plan/landscaping plan was also briefed (see booklet which contained the site/landscaping plan as well as elevation drawings and the existing floor plan/elevations). Relative to the beer and wine request, they originally proposed to buy a license within the existing census tract. They have a Type 21 license in the same census tract located on Euclid that is in escrow. They are proposing to transfer that license within the same census tract (a Type 21 to a Type 20). They actually had the license in escrow prior to their meeting with WAND and conversations with staff. Relative to the Brookhurst Corridor Overlay, in addition to buying a Type 21 license in the existing census tract, they are also willing to buy a Type 20 license not in the same census tract but in the Brookhurst Overlay at Brookhurst and LaPalma which results in a net loss of one Type 21 license which will become a 20. There will be a net loss of aType 21, and loss of a Type 20 on Brookhurst. A Type 21 license is in excess of $100,000 or approximately 20 times what it would cost to 21 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 buy a Type 20. It is a minus one situation but on Brookhurst. This area was originally 28% above average crime rate which has not dropped to 3% below. He then continued and concluded his presentation by briefing the material contained in the booklet submitted. Mayor Daly then asked to hear from anyone else in favor of the project; there being no response, he asked to hear from those in opposition. Esther Wallace, Chairman of WAND, 604 Scott Lane, Anaheim. She first asked to know the type of establishments involved relative to purchase of the liquor licenses. She then gave the reasons for the opposition to the proposal, especially the request for beer and wine (comments are summarized). The members of WAND are unanimous in their opposition to a beer and wine license at this site. The landscaping is still not adequate on the west side on Brookhurst Street. The use is located in the Brookhurst Corridor Overlay. This is a non-conforming use and cannot be approved under that overlay. The building is only 375 sq. ft. It is sending a signal to every gas station or small business that they may apply for a beer and wine license without conforming to the requirements. There are already 46 licenses on Brookhurst. It is not a food store but a snack shop. It is located in a residential area. They are bringing a license from Euclid which is a commercial area to a residential area. She described surrounding land uses and those that have liquor licenses. There are enough licenses. There are also service stations that can operate a business without a beer and wine license. If Arco can’t do the same, they should close up. Judithanne Gollette , 649 S. Roanne Street, Anaheim, Chair of WAND’s Land Use and Business Development Committee. They would rather have the building that is there right now than to have frontage put on an existing building because they are not going to remodel or add square footage. It is a small building and a small site. It is a service station location and not a market. There is a liquor store behind it. They have fought to get the Brookhurst Corridor Overlay Zone in place and that should be the answer to Thrifty and Arco. West Anaheim does not want additional liquor stores put into their gas stations. They do not want additional gas stations or liquor stores. They need to spruce up their area and that is what they are attempting to do. Jim Bonsteel , 1203 N. Grove, Anaheim. He feels alcohol-related gas stations are a disgrace. He referred to a (Chevron) gas station in the area that has been there for many years which has never sold liquor. He would like to see Arco use their money to improve the safety of children against drunk drivers. He urged denial of the alcohol license. SUMMATION/REBUTTAL BY APPLICANT : David Rose. He clarified the license being sought is a beer and wine license and not a liquor license. The first license (being purchased) is a Type 21 which is a liquor store located on Euclid; the second is a beer and wine license located at Brookhurst and LaPalma. They are purchasing a Type 21 liquor store and a beer and wine license from a convenience store. There will be a liquor store lost in West Anaheim and also a beer and wine license. Mr. Rose then answered the concerns expressed relative to landscaping which, as he understands, they are in full compliance since they are not asking for any waivers or variances. The building size is actually 576 sq. ft. and not the 376 sq. ft. as indicated in the staff report. He also addressed some of the other issues broached by those in opposition. He reiterated the issue relative to the beer and wine license request and their plan for purchasing/eliminating licenses as previously articulated. In concluding, he explained that they just found out this afternoon about the overlay zone relative to whether or not this could be grandfathered in or whether or not there had to be an amendment to the ordinance. That to them is the biggest issue. Council Member Kring . Brookhurst is a main thoroughfare that goes beyond Anaheim into Fullerton. People who stop are not necessarily the residents or people living in West Anaheim but are coming home form work and going to Fullerton so it does not necessarily have an impact on West Anaheim residents at all. 22 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Mayor Daly. He thinks Thrifty has submitted a good design. He does not like being in the position of having to approve beer and wine or not see progress at a 25-year old property. He would hope that Thrifty and Arco would reconsider that approach. He respects the effort they have made to buy other licenses but they are hearing from the residents and leaders of West Anaheim that they believe additional beer and wine licenses at such locations would be detrimental and he agrees. He will not be supporting beer and wine at this location because of the reasons stated and also because of the Brookhurst Corridor Plan recently adopted and the recommendations of staff. He is supportive of improvements to the station but not the beer and wine. Council Member Feldhaus . He supports WAND and their efforts. He also lauds Thrifty/Arco for wanting to improve that corner and all the things they are willing to do. ENVIRONMENTAL IMPACT REPORT – NEGATIVE DECLARATION : On motion by Council Member Kring seconded by Council Member McCracken the City Council approved the Negative Declaration upon finding that it has considered the Negative Declaration together with any comments received during the public review process, and further finding on the basis of the initial study and any comments received that there is no substantial evidence that the project will have a significant effect on the environment. Council Member Tait was temporarily absent/abstained. MOTION CARRIED. Council Member Kring stated she was going to offer both resolutions; Mayor Daly asked that they be offered separately. Council Member Kring Offered a Resolution Granting CUP 4101. Before a vote was taken, Joel Fick suggested that they also be subject to the conditions contained in the staff report and clarifications tonight by staff and stipulated to by the applicant specifically relevant to the one driveway closure on Broadway and also additional landscaping on the northeast side of the building. He clarified for Council Member Kring that there will be one driveway on Broadway and two on Brookhurst as agreed to by the applicant. Council Member Kring amended her offering to include the conditions already discussed plus the driveway; Mayor Daly added, plus all the other language recommended by staff. City Attorney White asked if the CUP was being offered with the beer and wine; Council Member Kring stated they are being voted on separately. City Attorney White stated it is not possible because it has to include the beer and wine or it has to be denied. It is necessary to have both the CUP and the PC&N. He suggested that the order of voting be reversed, i.e., vote on the PC&N determination first and depending on the outcome, it will be clearer. Council Member Kring thereupon offered a Resolution approving the determination of Public Convenience or Necessity No. 99-01 finding and determining that PC&N would be served by the issuance of an ABC license for 300 S. Brookhurst, Anaheim. The vote was as follows : Ayes: Kring, McCracken. Noes: Feldhaus , Daly. Abstained/Absent : Tait . City Attorney White stated, because Council Member Tait declared a conflict of interest (earlier in the meeting), by rule, the application is denied by operation of law. He further explained, because they have denied the PC&N Determination, the only decision that can be meaningful is to either deny the CUP altogether, or to approve it without the beer and wine. David Rose. They do not see the necessity of a vote ; City Attorney White. It is necessary to take an action. He asked if the applicant was suggesting denial of the CUP. 23 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Mr. Rose answered, they will withdraw the CUP; City Attorney White indicated that a motion to that effect would be in order. MOTION. Council Member Kring moved to allow the applicant to withdraw the request for a Conditional Use Permit. Council Member McCracken seconded the motion. Council Member Tait was absent/abstained (and had previously declared a conflict). MOTION CARRIED. CONTINUED PUBLIC HEARING - WAIVER OF CODE REQUIREMENT D3. 179: CONDITIONAL USE PERMIT NO. 4102 DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 99-02 AND NEGATIVE DECLARATION: OWNER: Thrifty Oil Company, Attn: Vincent Le Pore, 13539 East Foster Road, Santa Fe Springs, CA 90670 AGENT: David Rose, 3870 La Sierra Avenue, #193, Riverside, CA 92505 LOCATION: 2800 West Ball Road - Thrifty Oil. Property is 0.48 acre located at the southwest corner of Ball Road and Dale Avenue. Conditional Use Permit No. 4102 - to establish conformity with existing zoning code land use requirements for an existing service station and to convert an existing accessory auto repair/cashier building into a convenience market with retail sales of beer and wine for off- premises consumption with waivers of (a) continuation of nonconforming billboards, (b) minimum landscaped setback adjacent to an arterial highway, (c) minimum retail sales floor area, and (d) minimum landscaped setback adjacent to interior boundary lines. Public Convenience or Necessity No. 99-02 - to determine Public Convenience or Necessity to allow the retail sales of beer and wine for off-premises consumption within the proposed convenience market. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4102 DENIED ( PC99-42) (6 yes votes, 1 absent). Denied waivers of code requirement. Determination of Public Convenience or Necessity No. 99-02 DENIED ( PC99 -43). Approved Negative Declaration. Informational item at the meeting of April 6, 1999, Item B2. Letter of appeal submitted by the Agent, David Rose. Public hearing continued from the meeting of May 4, 1999, Item D3. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News: April 22, 1999 Mailing to property owners within 300 feet: April 15, 1999 Posting of property: April 16, 1999 Greg Hastings, Zoning Division Manager briefed the Staff Report to the Planning Commission dated March 15, 1999 which outlined the proposal in detail. He noted that this proposal is similar to the prior request (see Item D2.) but it is not within the Brookhurst Commercial Corridor Overlay Zone. The crime rate in the area is 47% above the City’s average. A letter of opposition to the proposal has been received from WAND and Redevelopment staff is opposed to the beer and wine license. With the exception of beer and wine sales, Planning staff feels the proposal will be an improvement to the area. The closure of the driveway on Ball Road would greatly impact the existing gasoline pump islands so staff is only recommending closure of one driveway on Dale. Mayor Daly first asked the applicant if he wanted to withdraw this application; David Rose answered, not at this time. Mayor Daly asked to hear from the applicant or applicant’s agent. 24 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Applicant’s Statement : Mr. David Rose III, The Regents Group, 3870 LaSierra Avenue, Ste. 193, Riverside, CA. He first stated that Mr. Barry Berkett, Vice President, Thrifty Oil will address the issue discussed at the end of the last Public Hearing (see above). Mayor Daly. He would like clarification that if they do not get a beer and wine license on this proposal, the hearing is moot. Mr. Barry Berkett, Vice President, Thrifty Oil Company, Foster Road, Santa Fe Springs, CA. What they are proposing is to spend hundreds of thousands of dollars to acquire licenses because there are economic advantages. Part of that entails spending money on facilities; however to the extent they do not get the benefit, they find it difficult to conceive why they would do so. Their situation with Arco is unique notwithstanding they no longer operate the facilities yet they are intimately involved in trying to give the incentives for them to improve the properties. They have tried to deal with staff on as many items as possible. Looking at the entire business as a whole to the extent one is able to acquire a beer st and wine license, it adds value to the business and one that can survive in the 21 Century. They would like to do something that makes business sense. Their intent in withdrawing (on the previous item) was not to make a statement but what they are looking for is a CUP that will allow them to make the modifications they are proposing. Thrifty does not have any interest in the property. Many of the things probably will not happen. It is not a threat that they will close stations. They have tried to put together a better package than anyone else has proposed. He challenges the Council to find any other company that will do what they do in acquiring existing licenses that ultimately improve the overall concentration. He has no incentive to write huge checks for the benefit of Arco so that the community is improved to the detriment of Arco. They are giving up large amounts of income, billboards, and other things they are entitled to as a matter of right. Council Member Feldhaus asked if they were in the beer and wine license or gas sales business. He cannot believe that beer and wine is a tie breaker. Mr. Berkett answered it is not the income from the sale of beer. It is 10% of store sales. Certain other locations do offer milk, chips, beer and wine, etc. One gets in the habit of going to that other location and Arco loses that sale. It is an important part of the total mix. Also answering the Mayor, Mr. Berkett stated in order to maintain the long-time viability and investments, he cannot say that Arco will or will not close these facilities. He also confirmed, on this proposal, he would like Mr. Rose to finish the presentation. David Rose III, The Regents Group, 3870 LaSierra Avenue, Ste . 193, Riverside, CA. They are willing to accept all the conditions proposed by staff with the exception of beer and wine. They are proposing to purchase three licenses, two in West Anaheim and one on the periphery. They will then extinguish two of those resulting in a net loss of two in the City; Mayor Daly interjected and asked if the intent is that all stations are going to have beer and wine that they express that to the Council. Eric Ahmanson, Arco Products. They do have 15 or 20 AM/PM locations without beer and wine in various cities – some profitable, and some not. They have lost $53,000 at the subject site and $60,000 at the other. Any type of improvement will be helpful. If he is going to spend $200,000 (on improvements) they need something in return. It is on a site-by-site basis. Mayor Daly. If they firmly believe beer and wine is essential for their stores to be profitable, competitor’s stores have been approved and they do not have beer and wine. He asked then if they are setting themselves up for a repeat of history where gas stations will be closed all over the City. Eric Ahmanson. The difference between a new location and Thrifty locations, regardless of what happens to the site, they still pay a fixed rate to Thrifty on a monthly basis. That is one of the big differences between Thrifty and Arco locations. Arco leases the facilities from Thrifty and operates them; Mr. Berkett also gave additional input relative to the business arrangements between the two entities. 25 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 David Rose. Since there is a condition relative to going back to the Planning Commission for a Report and Recommendation, they would like to withdraw the portion of the request dealing with the size of the building. Arco has indicated they are willing to include this back portion (working from a slide of the site) which will bring it over the 1 ,200 sq. ft. requirement so it is approximately a 1,394 sq. ft. building. They are willing to stipulate that that be a Public Hearing for that portion of the project. Working from the slides presented he then explained the proposal in detail (also see booklet submitted – ARCO Convenience Store, 2800 West Ball Road, Anaheim California – made a part of the record – which showed different views of the site along with a site plan/landscaping plan proposed, site plan existing, proposed and existing exterior elevations. (Existing site – 209 sq. ft. of landscaping, two billboards, pole sign – Proposed – 2,790 sq. ft. of landscaping, billboards to be removed, monument sign.) Relative to the beer and wine, currently there are five ABC licenses in the census tract and four are permitted by right. There are four Type 20’s and one Type 21. ABC indicates all five are in the City of Stanton. They found out Friday, one exists in Anaheim. The staff report indicates two are in Anaheim – 1218 Beach Blvd., Type 21 and 2950 Ball Road. According to ABC they are in Stanton. He checked with business license yesterday and the two businesses are both in Anaheim. Stanton indicated one of the businesses is in Stanton so there is some confusion. According to the Thomas Guide, only one is in Anaheim. The other four along Beach Blvd. are in Stanton. Beach-Ball Liquor is a Type 21. The proposal includes acquisition of three beer and wine licenses. Two are located in West Anaheim. They have a Type 20 in escrow which would be considered west Anaheim at the corner of Lincoln and Euclid. There is a Type 20 license at the corner of Harbor and LaPalma not in west Anaheim. Based upon the issues relative to D2. on tonight’s agenda, they are also willing to propose the transfer of the Type 20 license located at the corner of Brookhurst and LaPalma which would then be three beer and wine licenses, two in west Anaheim, and transferring all three of those which are located in high-crime areas to this location (which he pointed to from the map) extinguishing two, and allowing one to remain in west Anaheim. There will be one less beer and wine license in west Anaheim and two less total in the City. Mayor Daly asked to hear from those who wished to speak either in favor or in opposition ; the following spoke in opposition (comments summarized): Esther Wallace, Chairman, WAND. This is a high-crime area and according to the report she has, it is 71% above the City average. As shown on the posted map, Anaheim is only Ball Road and the first street behind it. She believes the census tract goes down to Katella so the figures reflect only about th th 1/10 or 1/20 of the census tract since there are no figures from Stanton because it is run by the County. The site is 440’ from Dale Junior High School and also a shorter distance to a large church. According to ABC (Act 23789), if an on-sale license, they will deny a license if it is within 600’ of a school or church site. On off sale, there is no such license but they can rule it to be detrimental for a number of reasons which she briefed. She reported on the other liquor stores and businesses that have beer and wine licenses in the immediate area. She also relayed concerns relating to the small size of the site. The area is largely residential with high-density apartments. Another beer and wine license would be detrimental to the area. Judithanne Gollette, speaking on behalf of WAND. They have researched the ABC licensing and this gas station is 450’ from Dale Junior High School, there is another ARCO/Thrifty 440’ away from Maxwell Elementary and a Thrifty/Arco at Ball and Nutwood. WAND has asked Senator Dunn to bring a bill to Sacramento increasing the distance (600’) to 1,000’ for schools, churches or playgrounds. There is nothing wrong with a clean gas station run efficiently. They are not against liquor stores or against drinking but against ineffecient and unsafe facilities. WAND is asking denial of this proposal. Matthew Yang, 1212 S. Dale, Anaheim. He is speaking on behalf of the owner of the Liquor Cabinet. He has a letter/petition signed by customers who disapprove of the sale of beer and wine at the station. (See letter/petition dated May 4, 1999 from the Liquor Cabinet attached to which were signatures of those in opposition). This is an overpopulated area with two liquor stores, a restaurant and a bar. The 26 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 reasons this would be a detriment – possibility of drunk driving, school and churches in close proximity, overexposure to children in the area, there are already liquor stores, restaurants and bars in the area. He would like to see improvements in the area. Harold Yankst , 2804 W. Ravenswood , Anaheim. He lives approximately 300’ south of the gas station and has for 40 years. There are enough liquor stores, convenience stores and bars at this intersection and they do not need any more. Ron Bain , Hacienda Heights. He owns a tire shop in the vicinity of the proposed business. He feels any additional liquor outlets would only cause a deterioration of the good economics taking place in that neighborhood. There are other more viable formats in operating their business rather than resorting to the sale of liquor. Charles Bradley, 3208 W. Faircrest Drive, Anaheim (35 years). He is a member of WAND. They were asked to survey residents they live near. He surveyed 10 or 12 and asked if they would go to a gas station to buy beer and wine and could not find one that would do so. If there weren’t so many gas stations in Anaheim, specifically West Anaheim, maybe they would all make more profit by selling more gasoline. SUMMATION/REBUTTAL BY APPLICANT : David Rose. He rebutted statements made in opposition especially relative to the concerns expressed over the beer and wine license. Thrifty believes there are too many licenses in west Anaheim and that is why, above everyone else, Thrifty is so set on wanting to improve the sites to everyone’s benefit they are willing to go out and purchase as many licenses as is reasonably possible. Thrifty is proposing to buy three locations and in other locations as many as two. They will buy one of the licenses of the two in the same census tract and if that is not possible, they will accept a condition that says they will buy three licenses, beer and wine and/or other as designated by the Planning Commission, Planning Department and/or City Council in west Anaheim. He does not believe any other company would do that. It was Thrifty who came up with this proposal (buying existing licenses) two years ago. In concluding, he stated that Thrifty wants to try to enhance the property and are willing to accept any other conditions the Council wants to impose. After Mr. Rose’s summation, questions were posed by Council Members revolving around the crime statistics in the area which were answered by Mr. Rose and Sgt. Russ Sutter, Vice Detail/Police Department. Sgt. Sutter also confirmed that they do not track alcohol related crimes. Mr. Rose also clarified that relative to the issue of the proximity of licenses (beer/wine/alcohol) to schools and churches, what Mrs. Wallace addressed related to on-sale licenses. This relates to off sale. There are no ABC restrictions. It is at the will of the City and ABC. If it unopposed, it could be adopted. Certain cities have certain restrictions. Anaheim does not. Mayor Daly offered a resolution denying Public Convenience or Necessity Determination No. 99-02. The resolution failed to carry by the following vote : Ayes: Kring and McCracken. Noes: Feldhaus and Daly. City Attorney White again stated, because Council Member Tait earlier declared a conflict of interest, by rule, the application is denied by operation of law. Further, because the PC&N is denied, the only decision is to either deny the CUP altogether or to approve it without the beer and wine. Mayor Daly asked Mr. Rose and Mr. Berkett if they wished to withdraw the CUP application. Barry Berkett . They are happy to let the Council make a decision. Given the economics, it is unlikely that the proposed improvements would be made and as such they would not want to give the Council the wrong impression. Mayor Daly asked staff if it is better to have new entitlements that most likely would not be exercised or does it matter ; Joel Fick. From a marketing standpoint and neighborhood standpoint, sometimes it does 27 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 give a false impression that there will be an improvement in a neighborhood. From staff’s perspective, approval is for one year and if the permit is not exercised, it expires. Mayor Daly asked the status of the Arco proposal at Harbor Boulevard and th 91 Freeway; Joel Fick. He reported it has expired. MOTION. Council Member Kring moved to allow the applicant to withdraw the request for a Conditional Use Permit. Mayor Daly seconded the motion. Before a vote was taken, Mr. Berkett stated they would not accept the conditions to remove the billboards or anything else that is being issued. As such, whatever the Council feels is best for the community to go in whichever direction the Council chooses. A vote was then taken on the withdrawal motion. Council Member Tait was absent/abstained (previously declared a conflict). MOTION CARRIED. REHEARING - WAIVER OF CODE REQUIREMENT D4. 179: CONDITIONAL USE PERMIT NO. 4080 DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 98-09, AND NEGATIVE DECLARATION: OWNER: Anaheim Ball Landmark, 1536 Stone Canyon Road, Los Angeles, CA 90077 AGENT: Travis Engineering, Attn: Karl Huy, 12453 Lewis Street #201, Garden Grove, CA 92840 LOCATION: 1120-1150 South Anaheim Boulevard - former Dodge dealership. Property is 1.18 acres located at the northeast corner of Anaheim Boulevard and Ball Road. To construct a service station and convenience market with retail sales of beer and wine for off- premises consumption and an integrated fast food restaurant with a drive through lane with waivers of (a) permitted types of signs - DENIED, (b) minimum distance between freestanding signs – APPROVED, (c) minimum landscape setback adjacent to an interior boundary line – DENIED and (d) minimum number of parking spaces – DENIED. To determine public convenience or necessity to allow retail sales of beer and wine for off-premises consumption in a proposed service station convenience market. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4080 GRANTED, IN PART ( PC99-16) (4 yes votes, 1 no vote, 1 absent, and 1 abstained). Waiver of code requirement APPROVED, IN PART, approving waiver (b), and denying waivers (a), (c), and (d). Denied Determination of Public Convenience or Necessity No. 98-09 ( PC99-17) (5 yes votes, 1 abstained, and 1 absent). Informational item at the meeting of February 9, 1999, Item B6. Review of the Planning Commission’s decision requested by Mayor Daly and Mayor Pro Tem McCracken. Public hearing continued from the meeting of March 2, 1999, Item D2. At the continued public hearing held March 16, 1999, the Anaheim City Council Denied CUP NO. 4080 (99R-49), and the Negative Declaration. Determination of Public Convenience or Necessity No. 98-09 was withdrawn. Request for rehearing submitted by Continental Development Group, LLC. At the meeting of May 18, 1999, Item B2, the Anaheim City Council approved the request for rehearing. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News: May 27, 1999 28 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Mailing to property owners within 300 feet: May 25, 1999 Posting of property: May 28, 1999 Greg Hastings, Zoning Division Manager. He referred to the revised site plan/cover letter dated June 3, 1999 from Jeff Farano, Farano & Kieviet on behalf of Anaheim Ball Landmark. The letter was submitted to staff on Friday proposing to delete the service station and market which was previously proposed as part of the project which would leave only the drive-through restaurant. The site plan has been completely redesigned and has not been fully reviewed by staff. As well, the Planning Commission has not seen it and many City Departments have not seen it. He reiterated , staff has not had the opportunity to review the conditions as pertains to this revision. Jeff Farano , Farano & Kieviet . He is looking for more direction. The site was previously occupied by Anaheim Dodge, some 3 ½ acres. The owner of the property has begun proposing an application for review and consideration for an Office Depot which would encompass approximately two acres of the site. That is not before the Council today because it would be permitted by right. The remaining 60,000 square feet on the corner is 1 1/2 acres. What was approved by the Planning Commission was the drive-through fast food with a convenience market and gas station which came before the Council at the last hearing (see minutes of March 16, 1999) and denied. Before it was denied, the applicant pulled the beer and wine license request (Jack in the Box). They have now left the building where it is and pulled the convenience market and gas station. They are now asking for a drive-through with no waivers requested or any other changes. The zoning ordinance permits the drive-through by CUP. That is the reason they are now before the Council. There has been a considerable amount of effort made by the applicant to present uses the Council might want to see such as a sit-down restaurant but have found that the demographics of the area would not permit that. It is a low-income area demographically and the developer is looking for a certain mix. Jack-in-the-Box is willing to make any changes the Council might want to see – landscaping, architectural design, hardscaping – in order to make it an upper-end project. They are not proposing play areas out front. The facility is geared to adults. It would be allowed by CUP and they will be going back to the Planning Commission with only the drive-through. However, if the Council is not amenable, they would like to know that so no further time will be wasted. They have spoken at length with Redevelopment but there is no plan as yet. They believe they have provided the best use of the three. Jack-in-the-Box is a quality user and will provide something better than what is there now. He asks Council consideration of the proposal. Council Member McCracken noted that the photos/renderings submitted with his letter are the ones originally submitted with the convenience store, market and Jack-in-the-Box. She asked if he is suggesting the same building or are they looking at a facility one third the size ; Mr. Farano answered it is essentially the same product but it is now reduced to a 2,400 sq. ft. restaurant. The pictures show a different product they have built and are willing to build what the Council might suggest. Mathew Green, Field Consultant, The Southland Corporation, (7-11 Stores) ,330 E. Lambert, Brea. He is speaking on behalf of 7-11 Stores in opposition to the proposal. He thereupon re-submitted a copies of his letter dated March 16, 1998 listing all the fast food, gas stations, markets and businesses that sell alcoholic beverages in the immediate area. There is already an overconcentration of competitive businesses in the area. Any further competition will be detrimental. Jeff Farano . The demographics for a Jack-in-the-Box indicate this product will be successful in this area. Mayor Daly closed the Public Hearing. Mayor Daly. This site has been discussed at previous hearings. He has suggested that they can do better than fast food at this key location and gateway to the City. He will be asking the Council to deny the request. Council Member Feldhaus . Mr. Farano keeps saying that the demographics do not permit a more upscale restaurant at this location. His vote is intended to change the demographics along South 29 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 Anaheim Boulevard. The location is a gateway to the Civic Center and downtown Anaheim and the other direction leads to the Resort Area. In his opinion, the demographics are bound to change and are going to change with the direction of this Council. He does not subscribe to anything other than something that is more upscale. Council Member Kring . Her concern is that it is going to be years before anything comes about in that area. The building proposed is extremely attractive. She knows that the developer has contacted upscale restaurants and they have all said it is not a good area for them and would not locate there. ENVIRONMENTAL IMPACT REPORT – NEGATIVE DECLARATION : On motion by Mayor Daly seconded by Council Member Feldhaus the City Council denied the Negative Declaration upon finding that it has considered the Negative Declaration together with any comments received during the public review process, and further finding on the basis of the initial study and any comments received that there is no substantial evidence that the project will have a significant effect on the environment. Council Member Tait was temporarily absent/abstained , Council Member Kring voted no. MOTION CARRIED. Mayor Daly offered Resolution No. 99R-109 for adoption denying Conditional Use Permit No. 4080. Refer to Resolution Book. RESOLUTION NO. 99R-109 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DENYING CONDITIONAL USE PERMIT NO. 4080. Roll Call Vote on Resolution No. 99R-109, for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, McCracken, Daly NOES: MA YOR/COUNCIL MEMBERS : Kring ABSENT/ABSTAINED: MAYOR/COUNCIL MEMBERS : Tait The Mayor declared Resolution No. 99R-109, duly passed and adopted. COUNCIL COMMENTS: C4. 114: Council Member McCracken : She sits on the Financial Committee of the Orange County Sanitation District. They are considering new connection fees which will be discussed at the meeting tomorrow night and will be brought to the entire Board at their next meeting. Staff is already informed; developers will have to look for the day on which the ordinance is scheduled for a hearing so they can give input. Mayor Daly. They are looking forward to getting more information on that issue. * * * * * * * * * * * * * * * * * * Council Member Feldhaus : He announced (as did the Mayor earlier) the Annual Flag Day celebration to be held on Sunday, June 13, 1999 in downtown Anaheim and reported the activities that will be taking place. He urged everyone to attend. ADJOURNMENT: By general Council consent, the City Council Meeting of June 8, 1999 was adjourned (9:55 P.M.). 30 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, JUNE 8, 1999 LEONORA N. SOHL CITY CLERK 31