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1999/08/10ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 The City Council of the City of Anaheim met in regular session. PRESENT: COUNCIL MEMBERS : Frank Feldhaus, Lucille Kring, Tom Tait, Shirley McCracken ABSENT: Mayor : Tom Daly PRESENT: CITY MANAGER : Jim Ruth CITY ATTORNEY : Jack White CITY CLERK : Sheryll Schroeder ASST. CITY CLERK : Ann Sauvageau PUBLIC UTILITIES GENERAL MANAGER : Ed Aghjayan PLANNING DIRECTOR : Joel Fick ZONING DIVISION MANAGER : Greg Hastings CODE ENFORCEMENT MANAGER : John Poole CIVIL ENGINEER : Natalie Meeks A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 3:05 p.m. on August 6, 1999 at the City Hall Bulletin Board, (both inside and outside the entrance to City Hall) containing all items as shown herein. Mayor Pro Tem McCracken called the workshop portion of the Council Meeting of August 10, 1999 to order at 2:40 p.m. and welcomed those in attendance. She noted that Mayor Daly is unable to be present today because he is ill. City Manager, James Ruth. This is the appointed time for a workshop on Strategic Options for the Public Utilities Department. First, representatives from Southern California Edison and Enron will be making presentations followed by Mr. Ed Aghjayan, Public Utilities General Manager. Mr. Ed Aghjayan, Public Utilities General Manager first introduced Mr. Larry Grant of Southern California Edison ( SCE) who will make the first presentation followed by Mr. Mike McDonald, Vice President of Enron and Mr. Kenneth Mellor of R.W. Beck, (City’s consultant). STRATEGIC OPTIONS (Public Utilities Department): SOUTHERN CALIFORNIA EDISON ( SCE): Mr. Larry Grant, Southern California Edison, Vice President of Transmission and Distribution. Mr. Grant’s presentation, supplemented by slides, (hard copies of which were submitted to the Council - see, “An Alliance of Neighbors” – Innovative Solutions for Anaheim’s Future – Presentation to Anaheim City Council’s August 10, 1999 Workshop – made a part of the record) covered the following: A briefing of what the “Alliance of Neighbors” provides ($30-$60 million cost savings for Anaheim over 10-year term with no increased risks, enhanced reliability for customers, continued ownership and control by Anaheim, retain the Anaheim identity, fairness and opportunity for Anaheim employees – “We recommend that you challenge SCE and City staff to develop a Memorandum of Understanding ( MOU) that captures these benefits for Anaheim”); SCE Distribution O&M (Operates and Maintains) Proposal (price and savings, services provided, performance standards); How SCE Can Offer Such a Low Price; R.W. Beck’s Analysis; SCE’s Major Concerns with the R.W.Beck Report; Employees (Anaheim’s employees would be assimilated into SCE workforce to maximum extent possible with same rights and privileges as other SCE employees, etc.); Control of Anaheim Utility (Anaheim City Council will retain full control of its utility with an SCE alliance); Why Choose SCE?; Next Steps – “We recommend that you ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 challenge SCE and City staff to develop an MOU that generates $30 - $60 million savings for the City, retains City control and identity, and enhances service and reliability.” Upon concluding his presentation, Council Members posed questions to Mr. Grant for purposes of clarification relative to certain aspects of the data provided. The Regular Meeting of Tuesday, August 10, 1999 was called to order (3:03 P.M.) continuing with the subject workshop presentations. ENRON: Mr. Mike McDonald, Vice President, Enron. He prefaced his presentation (supplemented by slides) stating the reason they are even present today is because of the kinds of changes taking place in the electric industry which requires taking a different look on how they are operating the business and challenging the status quo. Anaheim should be commended for the effort they have undertaken. Enron feels they have provided a proposal consistent with that goal and effort and which creates an innovative partnership that benefits all the "stakeholders”. They feel strongly the gains he will be talking about will not be easily achieved but will take a lot of hard work, commitment and the cooperation of everyone involved to bring those about. His slide presentation (hard copies of which were submitted – see, Proposal to Establish an Anaheim/Enron Strategic Distribution Partnership – August 10, 1999 - made a part of the record) covered the following : Enron – Endless Possibilities – A Recognized Leader (background on Enron and its standing in the world – leading integrated natural gas, electricity and communications company, active in 30+ countries, $31 billion in annual revenues, $33 billion in assets, 20,000 employees worldwide, etc.); Enron Proposal (which he briefed); Proposed Division of Responsibilities; Summary of Financial Benefit to Anaheim (over $30 million in total benefit over the life of the relationship); Benefits for Anaheim Residents and Businesses (potential savings in utility rates, continued reliable elecric service, service guarantees); Benefits to the City of Anaheim and to the City’s Employees. In concluding, he stressed, “A successful relationship requires the support of all involved.” They would welcome the opportunity to try to resolve the remaining issues, and will continue to work with staff to do so to jointly come up with a proposal – one they can recommend to the Council and go forward with it. Council Members subsequently posed questions to Mr. McDonald relative to some of the specifics of his presentation. CITY OF ANAHEIM - R. W. BECK (Consultants): Mr. Kenneth Mellor, R. W. Beck. He will be concentrating on the Distribution and Operations and Management ( O&M) portion. (Mr. Mellor’s presentation was supplemented by slides, hard copies of which were submitted in the data entitled, City Council Workshop – Distribution O&M Contracting – Kenneth J. Mellor – August 10, 1999 – R. W. Beck – submitted and made a part of the record.) Mr. Mellor’s presentation included the following : What is the Concept? (138 positions outsourced – Anaheim retains 103 electric positions and 97 water positions); Division of Control (what Contractor handles and what Anaheim handles); Key Provisions – Enron Proposal; Key Provisions – SCE Proposal; Problem with the Concept (Anaheim loses control of customer satisfaction, loss of work force cannot be reversed, substantial risks and liabilities exposure remains with Anaheim, $250 million a year enterprise put at risk, many potentially high-cost items not quantifiable, change orders will require renegotiations – 10-year contract stifles flexibility); Change Orders (further elaboration of the problems involved); Bottom Line (cost savings are soft or non-existent, risks are large, 10-year contract stifles ability to compete, service to customers will erode, Anaheim has demonstrated its ability to compete and streamline); R. W. Beck recommends that Anaheim retain Distribution O&M ; finally, Next Steps. At the conclusion of Mr. Mellor’s presentation, questions were posed by Council Members specifically relating to liability issues which were answered by the City’s Risk Manager, Tom Vance. He addressed the issue in detail referring to his extensive report previously submitted noting that when the City has 2 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 previously contracted with Edison, they have been one of the most difficult companies to work with. He emphasized that operations is a large risk and the City would have the risk without the control. It would still be perceived to be an Anaheim utility. The language (proposed) is far more onerous than the City would ever accept. After additional Council questions answered by Mr. Mellor, Mr. Aghjayan, Public Utilities General Manager asked to give a brief wrap-up. He wanted to give more information on why the concept is different from the way the Utilities does things now which is a significant factor in the decision the Council must make. He first outlined what got them to this point, that the department initiated the effort to get the information through an RFP and that they have been very targeted in trying to gind alternative ways to cut costs. He emphasized, however, that although they are interested in looking at different ways to run the business, this is not the right way. He pointed out that the Strategic Option process has resulted in a deal with Idaho Power that will save at least $1 million and perhaps $2 - $3 million. (See minutes of July 27, 1999 where the Council approved an agreement with IDACORP Energy Solutions, Item A14.) He then addressed the issue of control of customer satisfaction and what is meant by that subsequently addressing the issue of accountability for the 75,000 contacts that the utility receives from customers a year, how those are currently handled, and the concern over how they will be handled in the future by the contractor. He presented several slides relative to the basic principles of outsourcing and where the concept fit, the competitive market, core competency (never outsource your core competency), total outsourcing, low-cost provider, strategic values/interests, accountability. He spoke to those issues particularly emphasizing/asking, who is the low-cost provider. He showed a slide, Unbundled Rates, which showed a pie chart giving the rate differential between Edison and Anaheim. As to the question, why Anaheim’s rates are lower, the answer was illustrated in the chart – the cost of distribution for Edison is 3.1 cents while for Anaheim it is 1.2 cents. He stated this is the only place they “beat” Edison – Anaheim is the low-cost provider and it would, in reality, make more sense for Anaheim to contract their service to Edison. After answering questions posed by Council Member Tait, Mr. Aghjayan continued that relative to the presentations, the people involved are sales people and the Utilities Department hears such presentations all the time. He emphasized further, not one price they have received is firm and will not be firm until they have a definitive agreement. He cannot imagine a contract that could be written so as to guarantee the savings reported (as suggested by Council Member Kring). The 138 people (that would be lost) are the engine that drives the business. In the economic development area, it is really in Edison’s interest to see those companies located outside of Anaheim so that Edison can get the wire charge. Before concluding, Mr. Aghjayan also addressed other issues of concern and subsequently offered to answer any additional questions. Mayor Pro Tem McCracken thanked Mr. Aghjayan and staff, and also Mr. Grant and Mr. McDonald for the informative presentations. She noted that the workshop has been recorded and will be made available to Mayor Daly to listen to the proceedings. City Attorney White pointed out that the item is on the 5:00 P.M. Council Agenda (Item A24.) and members of the public who are interested would have an opportunity to speak at that time. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session noting first that there were no additions to Closed Session items. PUBLIC COMMENTS - CLOSED SESSION ITEMS: There were no public comments relative to Closed Session. The following items are to be considered at the Closed Session. 3 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 RECESS: Mayor Pro Tem Shirley McCracken moved to recess into Closed Session. Council Member Kring seconded the motion. Mayor Daly was absent MOTION CARRIED. (4:07 p.m.) AFTER RECESS: Mayor Pro Tem McCraken called the regular Council meeting of August 10, 1999 to order at 5:40 p.m. and welcomed those in attendance. INVOCATION: Pastor Bryan Crow, from the Garden Church gave the invocation. FLAG SALUTE: Council Member Lucille Kring led the assembly in the Pledge of Allegiance to the Flag. DECLARATION OF RECOGNITION : 119: A Declaration of Recognition was unanimously adopted by the City Council recognizing the American Fast Pitch Association International Friendship Tournament. Mr. Terry Fullmer accepted the Declaration. He has been a resident of Anaheim since 1947 and has long been involved in sports progrms. The International Youth Sports Program is the only such program based in Anaheim. He then introduced guests (who were present) representing 30 teams – four from Japan, two from Canada, and also representatives from 14 different states, the host team being the Wolverines from Anaheim. Gifts were presented to the Council from some of the teams (pins, T-shirts, etc.). Mayor Pro Tem McCracken and Council Members personally welcomed all of the representatives. PRESENTATION - RECOGNIZING BOARD AND COMMISSION SERVICE: Recognizing various Board and Commission Members on completion of their service to the City of Anaheim: George Maclaren, eight years of service on the Senior Citizens Commission;Paul Lem, four years of service on the Public Utilities Board; Phil Knypstra, four years of service on the Budget Advisory Commission, and Rose Jurado, three years of service on the Senior Citizens Commission. (Ms. Rose Jurado was the only person able to be present to accept.) Mayor Pro Tem McCracken presented a Flying “A” Certificate to Ms. Jurado, thanking her for her three years of dedicated service to the seniors of Anaheim; Ms. Jurado thanked the Council for giving her the opportunity to serve the community. She encouraged more seniors to attend the meetings of the Senior Citizens Commission. RECOGNITIONS AUTHORIZED BY COUNCIL THIS DATE TO BE MAILED OR PRESENTED AT ANOTHER TIME: FINANCIAL DEMANDS AGAINST THE CITY in the amount of $4,422,044.66 for the period ending August 2 and $3,083.674.24 for the period ending August 9, 1999, in accordance with the 1999-2000 Budget, were approved. Mayor Pro Tem McCracken recessed the City Council meeting until after the Redevelopment Agency, Housing Authority and Public Financing Authority meetings. 4 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 ADDITIONS TO THE AGENDA: There were no additions to agenda items. ITEMS OF PUBLIC INTEREST: Kimberly Cummings Herrera , 507 N. Olive St., Anaheim. She is present as a concerned parent and resident. On July 14, 1999 at 11:00 P.M., there was a drive-by shooting in front of her home. One man was wounded and several cars damaged. There was a bullet hole on the driver’s side of her son’s car. One week later on July 27, 1999 at 8:00 P.M. another shootout occurred when her three and five-year old grandsons were out front. She is hoping that the Council will ask for more Police patrol in the area. Mayor Pro Tem McCracken expressed concern over the occurrences and referred the matter to the City Manager for action. PUBLIC COMMENTS: Public input was received on Item A24 (see discussion under that item). MOTION: Mayor Pro Tem McCracken moved to waive reading in full of all ordinances and resolutions to be acted upon for the Council meeting of August 10, 1999. Council Member Kring seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR A1 – A24: On motion by Mayor Pro Tem McCracken, seconded by Council Member Kring , 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 Pro Tem McCracken offered Resolutions Nos. 99R-170 and 99R-171 , both inclusive, for adoption. Refer to Resolution Book. A1. 118: Rejecting and denying certain claims filed against the City. Referred to Risk Management. The following claims were filed against the City and actions taken as recommended: a. Claim submitted by Lorie Mendoza for property damage sustained purportedly due to actions of the City on or about January 27, 1999. b. Claim submitted by Jesus Sauceda for property damage sustained purportedly due to actions of the City on or about June 3, 1999. c. Cla im submitted by Lydia Garcia, Alice Garcia & Irene Perez for bodily injury sustained purportedly due to actions of the City on or about January 24, 1999. d. Claim submitted by Guadalupe Luna for property damage sustained purportedly due to actions of the City on or about June 27, 1999. e. Claim submitted by Esequiel Perez for property damage sustained purportedly due to actions of the City on or about June 27, 1999. f. Claim submitted by Willie D. Jones for property damage sustained purportedly due to actions of the City on or about June 27, 1999. A2. 105: Receiving and filing minutes of the Anaheim Private Industry Council meeting held June 24, 1999. 5 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 105: Receiving and filing minutes of the Anaheim Redevelopment and Housing Commission meeting held July 7, 1999. A3. 164: Releasing the low bidder, International Flow Technologies, Inc., and awarding the contract to Paulus Engineering, Inc., in the amount of $643,329.00 for the East Street Sewer Improvements from Sycamore Street to Santa Ana Street; and in the event such bidder fails to comply with the terms of the award, awarding the contract to the next lowest bidder, as well as waiving any irregularities in the bids. A4. 123: Approving an Amendment to agreement with the O range County Transportation Authority for the sale of monthly bus passes and authorizing the Mayor and City Clerk to execute said agreement. A5. 158: Approving an Agreement for the purchase and sale of real property and remediation of contamination, and waivers for the Texaco Station, located at 100 West Katella Aveune. (R/W 5180-47); Katella Avenue Smart Street Improvements Project, authorizing the Mayor and City Clerk to execute the Agreement and authorizing the acquisition payment of $591,902.50 to Grover Escrow. Council Member Tait . His engineering firm has done work for Texaco presenting a potential conflict of interest. He is, therefore, abstaining from any discussion or decision on this item. A6. 123: Approving a Reimbursement Agreement with C.H. Anaheim Ltd., for the Median Island Landscaping Improvements in Katella Avenue Stadium Crossings Development and authorizing the Mayor and City Clerk to execute the agreement. A7. 123: Approving an Agreement with KFM Engineering, Inc., in an amount not-to-exceed $187,500 for Professional Civil Engineering Services for Imperial Highway Smart Street Improvements from La Palma Avenue to the Santa Ana River Project and authorizing the Mayor and City Clerk to execute said agreement. A8. 160: Accepting th e low bids of Advanced Resource Management, in an aggregate amount not- to-exceed $171,827.00 for the lighting retrofit for three (3) separate lighting projects in the City; all in accordance with Bids #5946, 5941 and 5933. A9. 160: Accepting the bid of USCO Power Equipment Corporation, c/o Banes Association, in the amount of $19,602.00 for three (3) each 69 KV, 1200 amp disconnect switches for Katella Substation, in accordance with Bid #5959. A10. 160: Authorizing the issuance of a Change Order with Wil liams Communication Solutions for two (2) Upgraded Buffer Boxes, in the amount of $3,123.70, bringing the total purchase order to $28,405.46. A11. 160: RESOLUTION NO. 99R- 170 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the destruction of certain city records more than two years old and election records which have met their retention requirements for the City Clerk’s Department. A12. 113: Approving an Agreement with Christensen, Miller, Fink, Jacobs, Glaser, Well & Shapiro, LLP for attorney services. A13. 123: Approving an Agreement with the Law Offices of Barry F. Mc Carthy for attorney services. 6 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 A14. 123: Approving an Agreement for Consultant Services with Purkiss-Rose, Inc., dba Purkiss- Rose-RSI for Vermont Parksite improvements, in the amount of $48,150.00 and authorizing the Mayor and City Clerk to execute the Agreement. A15. 123: Approving an Agreement for Consultant Services with David Volz Design for George Washington Park improvements, in the amount of $28,100.00 and authorizing the Mayor and City Clerk to execute the Agreement. A16. 123: Approving an Agreement with the Anaheim Family YMCA to provide a no-interest loan in the amount of $200,000.00 in order to implement the Anaheim Achieves Program with the loan to be paid back in its entirety no later than October 30, 1999. A17. 123: Approving an Agreement for a Service Contract for Integrated Library System Equipment with Digital Equipment Corporation, in the amount of $1,205.80 per month for the period August 1, 1999 through July 31, 2000 and authorizing the City Librarian to execute said Agreement. A18. 129: RESOLUTION NO. 99R- 171 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM confirming the written report of the Fire Chief regarding the cost of weed abatement, and directing the filing thereof with the County of Orange. A19. 123: Approving an Agreement with Facilities Communications International, LTD., dba US Telecom ( FCI) for provision of telephone/communication services to Convention Center Tenants and Exhibitors, and authorizing the Mayor and City Clerk to execute said Agreement. A20. 123: Approving a Professional Service Agreement with John E. Spalding, an individual dba JES and Associates, not-to-exceed $150,000.00 extending through August 10, 2000 and authorizing the Mayor and City Clerk to execute said Agreement. A21. Approving an amended and restated Agreement regarding Anaheim Canyon Commuter Rail Station between Catellus Development Corporation and the City and authorizing the Community Development Executive Director to execute the Agreement. A22. 123: Approving a San Juan Project Participation Agreement among Public Service Company of New Mexico ( PNM ), Tucson Electric Power Company ( TEP ), the City of Farmington, New Mexico (Farmington), M-S-R Public Power Agency (M-S-R), Los Alamos County, New Mexico (LAC), Southern California Public Power Authority ( SCPPA ), Utah Associated Municipal Power Systems ( UAMPS ), Tri-State Generation and Transmission Association (Tri-State) and the City of Anaheim (Anaheim of City) and Amendment No. 1 to the San Juan Unit 4 Purchase and Participation Agreement (Amendment No. 1) between PNM and Anaheim, and authorizing the Public Utilities General Manager to execute said Agreement. A23. 123: Appr oving a Second Amendment to Agreement with Parsons Engineering Science, Inc., to provide consulting engineering services for the Anaheim Resort Area Well No. 55 Project, and authorizing the Public Utilities General Manager to execute said Agreement. A24. 175: Receiving and filing the R.W. Beck Strategic Options Final Report; and authorizing the actions set forth in Paragraph 2.b. through e. of the July 27, 1999 joint staff report from the assistant City Manager and Public Utilities General Manager – Subject: Strategic Options Process Final Recommendations. Mayor Pro Tem McCracken noted that individuals were present to speak on Item A24. She asked first to hear from the City Manager. 7 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 City Manager Ruth. Staff has respectfully requested that Item A24 be continued for two weeks in the absence of Mayor Daly this evening so that any action taken can be by a full Council. Mayor Pro Tem McCracken . If there are individuals who wish to speak to Item A24 this evening, she invited them to do so or if they wished to wait for two weeks, they could speak at that time. Mayor Daly will have an opportunity to listen to the tape of today’s workshop and also tonight’s meeting in order to be apprised of the proceedings. The following people then spoke urging the Council to adopt the recommendation(s) presented to them by staff in report dated July 27, 1999 from David Morgan, Assistant City Manager and Edward Agjhayan , Public Utilities General Manager – Strategics Options Process Final Recommendation – giving their reasons why, additional comments, recommendations, etc., the bottom line being that the customers- ratepayers of the long established (over 100 years) Anaheim Public Utilities would not be better served by outsourcing the Distribution Operations and Maintenance ( O&M ) and/or Customer Care. Max Engel, 1181 N. Catalpa Pat Lavin, Business Manager, IBEW Local 47 Pat Mahoney, 191 Cobblestone Lane, Anaheim, Peralta Hills Estate Improvement Association Stan Stossel, Business Representative, IBEW Local 47 Sally Ramirez, SEIU Local 47 Ken Jackson, Service Crew Supervisor, Public Utilities Dept., Member IBEW Local 47 Sally White, 809 W. Broadway, Anaheim 92805 Miriam Kaywood, Anaheim resident (former Council Member and Planning Commissioner) Steven Dornbush, Hotel Employees Union, Local 681, Orange County/Long Beach Ron Bengochea, 1630 W. Chanticleer, Anaheim (Employee – Public Utilities Department) Robert Briggs, 809 Wilhelmina, Anaheim (Employee – Public Utilities Department) Sheryl Ecker, 404 S. Claudina, Anaheim Tom Kirker, 647 S. Bruce, Anaheim Stephen Faessel, 1005 S. Cardiff, Anaheim – representing the Public Utilities Board (he briefed four points considered by the PUB) Larry Booth, Anaheim resident since 1947 and employee for 30 years. At the conclusion of public input, Council Member Feldhaus refuted a statement made by one of the speakers (Miriam Kaywood) who in the course of her input indicated that two of the newest members of the Council wanted to get rid of the utility. He stated there was no basis for making such a statement. Council Member Kring concurred. MOTION. Council Member Tait moved to continue Item A24 for two weeks. Council Member McCracken seconded the motion. Mayor Daly was absent. MOTION CARRIED. Roll Call Vote on Resolution Nos. 99R-170 and 99171, for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, Tait, McCracken NOES: MAYOR/COUNCIL MEMBERS : None ABSENT: MAYOR/COUNCIL MEMBERS : Daly The Mayor Pro Tem declared Resolution Nos. 99R-170 and 99R-171, duly passed and adopted. 8 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 END OF CONSENT CALENDAR. MOTIONS CARRIED. APPOINTMENT TO THE COMMUNITY SERVICES BOARD: A25. 105: Appointment to the Community Services Board to fill the unscheduled vacancy of James D. Vanderbilt (Term expires June 30, 2002). Council Member Tait . He feels this appointment should be continued one week for full Council action. MOTION. On motion by Council Member Tait seconded by Council Member McCracken, the subject appointment to the Community Services Board was continued one week. Mayor Daly was absent. MOTION CARRIED. ITEMS B1 – B7 FROM THE PLANNING COMMISSION MEETING OF JULY 19, 1999 INFORMATION ONLY – APPEAL PERIOD ENDS AUGUST 10, 1999: CONDITIONAL USE PERMIT NO. 4033 AND NEGATIVE DECLARATION: B1. 179: OWNER: The Garden Church, Attn: Rev. Bryan Crow, 8712 E. Santa Ana Canyon Rd., Anaheim, CA 92808 AGENT: Horst Schor, 626 N. Pioneer Drive, Anaheim, CA 92805 LOCATION: 8712 East Santa Ana Canyon Road - The Garden Church. Property is 65.81 acres located on the south side of Santa Ana Canyon Road, 3,759 feet west of the centerline of Gypsum Canyon Road. Request for review and approval of revised plans to permit a mobile home for a parsonage and to amend or delete conditions of approval pertaining to landscaping and roof-mounted equipment in conjunction with a previously-approved church facility. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4033 APPROVED revised plans and amendment to conditions of approval ( PC99-131) (4 yes votes, 1 abstained, and 2 absent) Negative Declaration previously approved. CONDITIONAL USE PERMIT NO. 4106 AND NEGATIVE DECLARATION: B2. 179: OWNER: Jack Culp Jr. and Nancy Culp, 6614 Ocean View, Carlsbad, CA 92009 AGENT: Ernie Quijada, 2898 East Miraloma Avenue, Anaheim, CA 92806 LOCATION: 2898 East Miraloma Avenue - Ideal Equipment Rental. Property is 0.86 acre located on the south side of Miraloma Avenue, 620 feet west of the centerline of Red Gum Street. To permit an on-site/outdoor construction equipment rental and storage facility including the washing and maintenance of the equipment. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4106 GRANTED, to expire, December 1, 2000 ( PC99-132) (4 yes votes, 3 absent) Approved Negative Declaration. RECLASSIFICATION NO. 99-00-01 AND NEGATIVE DECLARATION: B3. 179: INITIATED BY : City of Anaheim (Planning Department), 200 S. Anaheim Blvd., Anaheim, CA 92805 OWNER: Joseph Quaranta TR, 5840 Valley Forge Drive, Orange, CA 92869 LOCATION: 624, 626, 628, 630, 632, 634 and 636 West Orangewood Avenue. Property is 0.37 acre located at the southeast corner of Orangewood Avenue and Mallul Drive. 9 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 City-initiated request to reclassify subject property from the CG (Commercial, General) Zone to the CL Zone (Commercial, Limited) Zone ACTION TAKEN BY THE PLANNING COMMISSION: RECLASSIFICATION NO. 99-00-01 GRANTED, unconditionally ( PC99-133) (5 yes votes, 2 absent) Approved Negative Declaration. RECLASSIFICATION NO. 99-00-02 AND NEGATIVE DECLARATION: B4. 179: INITIATED BY : City of Anaheim (Planning Department), 200 S. Anaheim Blvd., Anaheim, CA 92805 LOCATION: 2100 South Haster – Ponderosa Park. Property is 8.6 acres located at the southeast corner of Orangewood Avenue and Haster Street. City-initiated request to reclassify subject property from the RM-1200 (Residential, Multiple- Family) and the RS-A-43 ,000 (Residential/Agricultural) Zones to the OS (Open Space) Zone. ACTION TAKEN BY THE PLANNING COMMISSION: RECLASSIFICATION NO. 99-00-02 GRANTED, unconditionally ( PC99-134) (5 yes votes, 2 absent) Approved Negative Declaration. WAIVER OF CODE REQUIREMENT B5. 179: CONDITIONAL USE PERMIT NO. 4140 AND NEGATIVE DECLARATION: OWNER: John Sewhan Kim and Helen H. Kim, 2233 Via Puerta Apt. G, Laguna Wood, CA 92653 AGENT: Kwang Cook, AIA, 6910 Oslo Circle, A2, Buena Park, CA 90621 LOCATION: 3321 West Lincoln Avenue. Property is 0.84 acre located on the north side of Lincoln Avenue, 1,118 feet west of the centerline of Western Avenue. To permit a church within an existing office building with waivers of (a) minimum number of parking spaces and (b) minimum setback of an institutional use adjacent to a residential zone. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 4140 GRANTED for two years, to expire July 10, 2001 ( PC99-135) (5 yes votes, 2 absent) Approved Negative Declaration GENERAL PLAN AMENDMENT NO. 367 B6. 179/134 : RECLASSIFICATION NO. 99-00-03 AND NEGATIVE DECLARATION: OWNER(S): Walgreens Company, 128 S. State College Blvd., Anaheim, CA 92806; Timothy J. Brunet and Daryldine L. Brunet, 34205 Doheny Park Road, Capistrano Beach, CA 92624; Greg R. Gerry and William J. Briggs, 2107 East Lincoln Avenue, CA 92806 AGENT: Tim O’Neil - Evergreen Development, 1300 East Missouri, A-200, Phoenix, Arizona 85014 LOCATION: 128 South State College Boulevard, 2015 - 2107 East Lincoln Avenue and 2104 Ward Terrace. Property is 1.45 acres located at the northeast corner of State College Boulevard and Lincoln Avenue. General Plan Amendment No. 367 – Requests approval of a General Plan Amendment to amend portions of this property from the Commercial Professional and Low Density Residential land use designations to the General Commercial land use designation. Reclassification No. 99-00-03 - To reclassify a portion of subject property from the RS-7200 (Residential, Single-Family) and CO (Commercial, Office and Professional) Zones to the CL (Commercial, Limited) Zone to permit the construction of a drive-through, full-service pharmacy. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended adoption of GPA No. 367 (Exhibit A) to City Council ( PC990136) (5 yes votes, 2 absent) 10 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 Reclassification No. 99-00-03 GRANTED ( PC99-137) Approved Negative Declaration. This item has been set for a Public Hearing on August 17, 1999 due to the General Plan Amendment. REPORTS AND RECOMMENDATIONS CEQA CATEGORICAL EXEMPTION 15061(b)(3) B7. 155 : SPECIFIC PLAN ADJUSTMENT NO. 1 (ANAHEIM HILLS FESTIVAL SPECIFIC PLAN NO. 90- 01) : Architectural Design/Sign, Attn: Milton Solomon, 1802 American Street, Anaheim, CA 92801, requests Specific Plan Adjustment No. 1 to amend the Anaheim Hills Festival Specific Plan No. 90-1, Development Standards, to construct a second wall sign for Edward’s Cinema. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended adoption of Specific Plan Adjustment No. 1 to City Council END O F PLANNING COMMISSION ITEMS FROM JULY 19, 1999. ITEM B8 FROM THE PLANNING COMMISSION MEETING OF AUGUST 2, 1999 INFORMATION ONLY - APPEAL PERIOD ENDS AUGUST 12, 1999: B8. 155: ENVIRONMENTAL IMPACT REPORT NO. 313 FINAL SITE PLAN REVIEW NO. 98-12 – REQUEST FOR REVIEW AND APPROVAL OF FINAL SITE PLANS : Shirish Patel, 631 West Katella Avenue, Anaheim, CA 92802, requests review and approval of a final site plan to construct a new 609-room hotel complex. Property is located at 2065- 2085 South Harbor Boulevard. ACTION TAKEN BY THE PLANNING COMMISSION: Final Site Plan Review No. 98-12 APPROVED with modifications. Approved EIR No. 313. (previously certified) END OF THE PLANNING COMMISSION ITEMS FROM AUGUST 2, 1999 ITEM B8 FROM THE ZONING ADMINISTRATOR MEETING OF JULY 29, 1999 - DECISION DATE: AUGUST 5, 1999 INFORMATION ONLY - APPEAL PERIOD ENDS AUGUST 9, 1999: TENTATIVE PARCEL MAP NO. 99-123 B9. 170: MITIGATED NEGATIVE DECLARATION: OWNER: Edward Arshi, 347 Larkwood Street, Anaheim, CA 92808 AGENT: Growth Management Co. 3820 East La Palma Avenue, Anaheim, CA 92807 LOCATION: 470 South Mohler Drive. Property is 1.53 acres, having a frontage of 206 feet on the east side of Mohler Drive, a maximum depth of 373 feet and located 250 feet north of the centerline of County Hill Road (470 South Mohler Drive). To establish a 2-lot single-family residential subdivision in the RS- HS22 ,000 (SC) Zone. ACTION TAKEN BY THE ZONING ADMINISTRATOR: APPROVED Tentative Parcel Map No. 99-123 ( ZA DECISION NO. 99-30). 11 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 PUBLIC HEARING – ABANDONMENT NO. 99-19A : D1. 176: In accordance with application filed by Peninsula Retail Partners, LLC, 3345 Newport Boulevard, Suite 213, Newport Beach, CA 92663, a public hearing was held on the proposed abandonment of a storm drain easement, sewer easement and sewer line located at the northeast corner of Anaheim Boulevard and Clifton Avenue, reserving unto the City of Anaheim easement, pursuant to Resolution No. 99R- 145 duly published in the North Orange County News and notices thereof posted in accordance with law. At their meeting held July 13, 1999, Item A4, the Anaheim City Council adopted Resolution No. 99R-145 declaring its intention to vacate certain public streets, highways and service easements and setting a date and time to consider abandoning that certain easement for drainage and public utility purposes located south of Clifton Avenue and extending easterly from Anaheim Boulevard (Abandonment No. 99-19A). PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News : July 22 & 29, 1999 Mailing to property owners within 300 feet : July 29, 1999 Posting of property : July 30, 1999 Natalie Meeks , Civil Engineer, Public Works. The easements are being abandoned to make room for the proposed new Office Depot building. Mayor Pro Tem McCracken opened the Public Hearing and asked to hear from anyone who wished to speak either in favor or in opposition; there being no response, she closed the Public Hearing. ENVIRONMENTAL IMPACT REPORT – CATEGORICAL EXEMPTION : On motion by Mayor Pro Tem McCracken, seconded by Council Member Kring, the City Council determined that the proposed activity fall within the definition of Section 3.01 Class 5, of the City of Anaheim guidelines to the requirements for an Environmental Impact Report and is, therefore, Categorically Exempt from the requirements to file an EIR. Mayor Daly was absent MOTION CARRIED. Mayor Pro Tem McCracken offered Resolution No. 99R-172 for adoption, approving Abandonment No. 99-19A. Refer to Resolution Book. RESOLUTION NO. 99R-172 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING ITS INTENTION TO VACATE CERTAIN PUBLIC STREETS, HIGHWAYS AND SERVICE EASEMENTS (ABANDONMENT NO. 99-19A). Roll Call Vote on Resolution No. 99R-172 for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, Tait, McCracken NOES: MAYOR/COUNCIL MEMBERS : None ABSENT: MAYOR/COUNCIL MEMBERS : Daly The Mayor Pro Tem declared Resolution No. 99R-172, duly passed and adopted. CLOSED PUBLIC HEARING - ENVIRONMENTAL IMPACT REPORT NO. 280 D2. 155/179/170 : ( PREV. CERTIFIED) THE PACIFICENTER SPECIFIC PLAN NO. 88-3 12 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 (AMENDMENT NO. 3) AND FINAL SITE PLAN CONDITIONAL USE PERMIT NO. 4119 TENTATIVE PARCEL MAP NO. 99-129 REQUEST FOR CITY COUNCIL REVIEW OF 10c and 10d: OWNER: Catellus Development, SF Pacific Properties, Inc. 800 N. Alameda, #100, Los Angeles, CA 90012 AGENT: Fancher Development, 1342 Bell Avenue, #3K, Tustin, CA 92780 Planning Co. Associates, Inc., 550 N. Brand Blvd., #530, Glendale, CA 91203 LOCATION: 3610-3720 East La Palma Avenue and 1001-1091 North Tustin Avenue - The Pacificenter Specific Plan No. 88-3. Property is 25.71 acres located at the southwest corner of Specific Plan No. 88-3, Amendment No. 3 and Final La Palma Avenue and Tustin Avenue. Site Plan - Request approval of Amendment No. 3 of the Pacificenter Specific Plan ( SP88 -3) (amending Exhibit Nos. 4 and 6, consolidation of Development Areas, amending Development Standards, including, but not limited to required parking, landscaping, setbacks, etc., listed permitted and conditionally permitted uses, and the Sign Program Appendix) and a Final Site Plan in order to create a single, unified Development Area for the development of a mixed-use commercial center within the Specific Plan, including the development of retail, office, hotel and other supporting uses. Conditional Use Permit No. 4119 - To permit a drive-through fast food restaurant. Tentative Parcel Map No. 99-129 - To permit a 5-lot commercial subdivision within the existing mixed-use commercial center (to create a total of 11 parcels within the boundaries of the Pacificenter Specific Plan ( SP88-3) Zone). CUP NO. 4119, Specific Plan No. 88-3 and Final Site Plan, and Tentative Tract No. 99-129 previously approved, (July 27, 1999). ORDINANCE NO. 5695 (ADOPTION) Amend Chapter 18.73 of Title 18 of the Anaheim Municipal Code (The Pacificenter Anaheim Specific Plan). At the meeting of July 27, 1999, the Public Hearing was closed and the Council took action granting Conditional Use Permit No. 4119, approving Specific Plan No. 88-3, the Final Site Plan and Tentative Parcel Map No. 99-129. At that meeting, there was also the first reading of Ordinance No. 5695 submitted for adoption this date. It was also determined that approval of the final sign plan would be discussed and action taken on that plan. Letter dated July 12, 1999 from W. Roderick Hamilton of Catellus Development Corp. was received requesting a continuance of this matter to August 24, 1999. MOTION. Council Member Feldhaus moved to continue the remaining actions necessary on the subject to August 24, 1999. Council Member McCracken seconded the motion. Mayor Daly was absent. MOTION CARRIED. PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 2992 AND NEGATIVE D3. 179: DECLARATION: OWNER: Leonard & Cyndie Chaidez, 10081 Highcliffe, Santa Ana, CA 92705 LOCATION: 507 South Lemon Street. Property is 0.56 acre located at the southwest corner of Santa Ana Street and Lemon Street. To consider reinstatement of this permit which currently contains a time limitation (approved on March 16, 1998 until January 22, 1999) to retain a tree service contractor’s yard. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 2992 DENIED ( PC99-115) (6 yes, 1 absent) Denied Negative Declaration. Informational item at the meeting of July 13, 1999, Item B8. Letter of appeal submitted by Leonard Chaidez. 13 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News : July 29, 1999 Mailing to property owners within 300 feet : July 29, 1999 Posting of property : July 30, 1999 Mayor Pro Tem McCracken noted that a request for continuance of this matter to September 14, 1999 has been received in letter dated August 10, 1999 from Leonard Chaidez, Owner. The agent for Mr. Chaidez then spoke and stated they are ready to go forward with the hearing today. Mr. Chaidez is also present. City Attorney White. A letter has been received from the applicant and property owner, Mr. Chaidez, asking for a continuance and now the gentlemen at the microphone says he is the agent and now Mr. Chaidez does not want a continuance. Mr. Leonard Chaidez . He owns the property and would like to go forward with the hearing. He was not sure he could make it to this meeting. Mayor Pro Tem McCracken . They will proceed with the hearing. The Mayor is not present and if the applicant wants the entire Council present, the Public Hearing can be continued. If he wants the hearing tonight, they will go forward with it. Greg Hastings, Zoning Division Manager briefed the staff report to the Planning Commission dated June 21, 1999 summarizing the project. In concluding, he stated that both the Commission and Planning staff feel that the size and location of the parcel is not appropriate for continuation of an outdoor contractor’s storage yard. John Poole, Code Enforcement Manager first referred to the material submitted containing colored photos of the property taken today showing the current condition of the property. The problem continues and has been ongoing for about five years. Applicant’s Statement : Rick Wentworth. He is a Supervisor at the business where he has been employed for eight years. Mr. Chaidez employs about 55 people, many of whom reside in Anaheim. Tree trimmers cannot just be hired “off the street”. A number of their employees have moved close by and live within a five-minute radius. The business is an asset to the community. (He noted many of the community activities in which they are involved). Their neighbors have never complained about some of the things shown in the photographs. They are not a liability to the community and their neighbors. The business has the annual tree-trimming contract for the City at the present time. They also do a tremendous amount of work for the Anaheim City School District. They have a good reputation and do quality work. There have been a lot of changes in the last eight years. They have a full-time person on site and as soon as they bring in a load of debris (from tree trimming) it is his responsibility to get that load beneath the 6’ height allowed so it is not seen from the street. Since they are expanding, they have a tremendous amount of vendors coming to the site and it is difficult to keep the gates closed. They are making serious efforts to comply, and invite the Council to come to the site to see what they are doing. It is not an eyesore. He is urging the Council to extend their CUP otherwise it would be very difficult and an undue hardship on their 55 employees if they had to shut down with no place to go. Leonard Chaidez , Owner. He is willing to do what the City asks to keep operating because of the hardship it would cause him and his employees and others. He asked for another chance and they will get the property cleaned up the way the City wants it. Joel Fick , Planning Director. He clarified for Council Member Kring that the permit is granted in one-year increments but it could be whatever date the Council wants to establish. Typically it is one year from the date of the resolution. 14 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 Mayor Pro Tem McCracken . She noted there has been some improvement to the property. She asked if there was any possibility to work out the situation with Mr. Chaidez since he is doing a vital job for the community – what conditions or what is it that the City needs to do to keep his business going. John Poole . What he feels would address the problem is simple – conditions that he can keep the storage, waste and equipment below the fence, keep the gates closed and the landscaping maintained. He has done that for a period of time but has not continued to do so because his business has grown. One of the things, there are only 11 on-site parking places which a lot of times are filled with tree debris. If he is diligent and the Council wanted to give him a year CUP, he has done it before. The reason he is before the Council is because he has not continued to do so. The business has outgrown the property. They have been trying in the last 3 ½ years to get compliance, but he ( Chaidez) keeps slipping. Council Member Kring . Since they provide a vital service to the community, she would like a commitment from them to do better and to have the business continue to operate. Council Member Feldhaus was of the opinion that it is time for Mr. Chaidez to find a location to fit his business. He is to be congratulated because he has expanded and grown, but the property is too small. Perhaps Community Development can help him find a property that is more suitable. They should try to help him facilitate a relocation of his business. Mr. Wentworth then answered Council questions posed relative to the appearance of the site concluding that although in the future they might have to look for a larger site, they don’t feel they are at that point yet. Roger Rodriguez. The property is up for sale , they are presently looking and will be moving in the future. They have had four or five potential purchasers who have requested a CUP for their business, but have all been turned down. It has been very difficult to sell the property. They have made great strides in improving the property and will continue to do so. He reported on businesses who have shown interest in the property, the last being told that it was going to be changed to residential zoning. Council Member Kring asked if it was accurate that Planning has plans to turn the property into residential ; Joel Fick. He confirmed that was correct. The designation on the General Plan is for low- density residential on that site. Mayor Pro Tem McCracken closed the Public Hearing. Council Member Feldhaus . He is not opposed to giving the business an extension of their CUP but feels they need to help them find a new site in Anaheim; Council Member Kring. The applicant promised to do a better job. She would suggest that they work with Code Enforcement. John Poole . One of the conditions is that the applicant have monthly Code Enforcement inspections paid for by the applicant. They would then set up a program and have a Code Enforcement Office check the site once every month. That method has worked well with some of the other businesses that have had problems. The cost would be very modest. He clarified for Council Member Kring that Code Enforcement would allow time for the business to get things under control before starting inspections. Council Member Tait . As Council Member Feldhaus said, the business has been growing and it is in transition. The City should work with Mr. Chaidez. He would support continuing the CUP for a year and in the meantime ask the applicant to work harder to comply. Mayor Pro Tem McCracken asked Mr. Chaidez if he would be willing to have Code Enforcement inspect the property once a month at a cost of $60 and the City would reinstate the CUP for a year. Mr. Chaidez answered, yes. He will give his number and if there are any problems, he will take care of them right away. 15 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 City Attorney White. If the Council is desirous of extending the CUP for a year, the staff report st recommends on pages five and six of the June 21 staff report amending and adding several new conditions, No. 14, 17, 18 and 19 to the existing pemit which has expired and reinstating it. If the Council wanted to offer a resolution consistent with the June 21st staff report relating to conditions 14, 17, 18 and 19 and also adding a new conditon 20 which would be for monthly code inspections to be paid for by the property owner during the one-year duration, expiring August 10, 2000, that would be in order. Since Mr. Chaidez had not seen the new conditions, Council Member Kring asked staff to brief them ; Joel Fick. With the exception of the last several, the conditions are identical to the conditions on the property since 1975. The added conditions are included in the June Planning Commission Staff Report which are the same conditions in the resolution since 1995 with the exception of the one-year extension from today, monthly Code Enforcement inspections, the requirement that vehicles pertaining to the business be stored on site and the planting of vines. The most significant conditions from the 1995 resolution pertain to the storage of materials above the fence height and also the storage of materials for lengths of time because of the odors generated if they are stored on site. ENVIRONMENTAL IMPACT REPORT – NEGATIVE DECLARATION : On motion by Mayor Pro Tem McCracken, seconded by Council Member Kring, 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. Mayor Daly was absent. MOTION CARRIED. Mayor Pro Tem McCracken offered Resolution No. 99R-173 for adoption. Refer to Resolution Book. RESOLUTION NO. 99R-173 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 2992. Roll Call Vote on Resolution No. 99R-173 for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, Tait, McCracken NOES: MAYOR/COUNCIL MEMBERS : None ABSENT: MAYOR/COUNCIL MEMBERS : Daly The Mayor Pro Tem declared Resolution No. 99R-173 duly passed and adopted. CONTINUED PUBLIC HEARING – RECLASSIFICATION NO. 98-99- 12 , AND D4. 179: NEGATIVE DECLARATION: INITIATED BY: City-initiated (Planning Department), 200 South Anaheim Blvd., Anaheim, CA 92805 Parcel A OWNER: - 220 North Beach Boulevard Boas Family Partnership, 1800 Avenue of the Stars, Los Angeles, CA 90067 Parcel B - 200 North Beach Boulevard Metropolitan Insurance Company, 9950 Mayland Drive, #405, Richmond, VA 23233 Insurance Company, 2501 Pullman Street, Santa Ana, CA 92705 Parcel C - 100 North Beach Boulevard Tosco Corporation, P.O. Box 52085, Phoenix, AZ 85072 16 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 LOCATION: 100, 200, and 220 North Beach Boulevard. Property is 4.46 acres located at the northeast corner of Beach Boulevard and Lincoln Avenue. To reclassify subject property from the CH (Commercial, Heavy) Zone to the CL (Commercial, Limited) Zone. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 98-99-12 GRANTED, UNCONDITIONALLY, ( PC99-76) (6 yes votes, 1 vacancy). Approved Negative Declaration. Informational item at the meeting of May 15, 1999, Item B11. Letter of appeal submitted by Smith, Brennan & Dickerson, Attorneys at Law. Public hearing continued from the meeting of July 13, 1999, Item D3. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News : July 1, 1999 Mailing to property owners within 300 feet : June 28, 1999 Posting of property : July 1, 1999 Joel Fick , Planning Director. At the previous Public Hearing on July 13, 1999 (see minutes that date) this was an item that came out of the Community Planning Program which staff felt was a positive in terms of providing enhancement and more suitable zoning for the property. The Attorney for Circuit City appeared before the Council and expressed concern. Staff asked for a continuance for the opportunity to meet with him. Both he and Mr. Hastings did so and explained the program to him and the implications. The Attorney indicated he no longer has an objection to the rezoning. Based upon that, staff recommends the item be approved. Council Member Tait . On Parcel C, the underlying land owner is Tosco for which his engineering firm has done work in the past year . He is, therefore, declaring a conflict and will abstain on any action. Mayor Pro Tem McCracken . Since this is a continued Public Hearing, she asked if anyone wished to speak; there being no response, she closed the Public Hearing. ENVIRONMENTAL IMPACT REPORT – NEGATIVE DECLARATION : On motion by Mayor Pro Tem McCracken, seconded by Council Member Kring, 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. Mayor Daly was absent. MOTION CARRIED. Mayor Pro Tem McCracken offered Resolution No. 99R-174 for adoption. Refer to Resolution Book. RESOLUTION NO. 99R-174 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING SHOULD BE CHANGED. Roll Call Vote on Resolution No. 99R-174 for adoption: AYES: MAYOR/COUNCIL MEMBERS : Feldhaus, Kring, McCracken NOES: MAYOR/COUNCIL MEMBERS : None ABSENT/ABSTAINED: MAYOR/COUNCIL MEMBERS : Daly, Tait The Mayor Pro Tem declared Resolution No. 99R-174 and duly passed and adopted. 17 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 REHEARING - WAIVER OF CODE REQUIREMENT D5. 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). Approved 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). At the meeting of held June 8, 1999, Item B4, the Anaheim City Council granted a request for a rehearing submitted by Bryan Industrial Properties. Public hearing scheduled and continued from the meeting of July 13, 1999, Item D3. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News : July 1, 1999 Mailing to property owners within 300 feet : June 28, 1999 Posting of property : July 1, 1999 Mayor Pro Tem McCracken asked if representatives from both Bryan Industrial Properties and from Fairmont School were present; there were representatives present. Since there is a not a full Council, she offered the option of continuing the matter until a full Council is present. Mr. Philip Anthony, on behalf of Bryan and other property owners, stated they feel a continuation would be appropriate and would appreciate a full Council. Mr. David Jackson, Fairmont School. He stated he would prefer to have the hearing today. The Planning Commission approved their request as well as the Council. He has yet to hear any additional information that has changed anything. It is not fair to the school to hold off again. They have signed their lease and have to make payments and have not been able to use their property. City Attorney White. If there is not unanimity between the parties to this action and the property owner desires to go ahead with the hearing, the Council should honor that request and conduct the rehearing and determine whether there are ample votes to move this tonight or whether it will of necessity have to be continued. Mr. Anthony stated that the last continuance was requested by Mr. Jackson; Mr. Jackson stated the only reason was he was out of town in Alaska and he did not know that the item was appealed. He was not able to be present at that meeting. Council Member Tait . The Council should go forward with the hearing today. Grege Hastings, Zoning Division Manager. Staff has no additional information to offer. 18 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 City Attorney White. He suggested that even though Bryan Industrial requested the rehearing, the proper procedure would be to allow the project applicant, Fairmont School, to present its case followed by the opponents and then a summation by Fairmont. Mr. David Jackson, Executive Director, Fairmont School. (See minutes of July 13, 1999 where there was extensive public input and discussion.) The school has been operating at the location for almost 45 years. They have continued to grow and have quite a reputation for service to the community. The CUP is to help improve the situation with respect to parking and traffic and so that students and faculty can operate in a better manner. They are not increasing the size of the school. They have signed a lease for the building. The former tenant had approximately six to twelve semi trucks per day coming in an out through Mable Street that added to the congestion and traffic. They also had between 12 and 24 employees at any given time. This will give the school 50% additional parking which was not required but which they felt would help to improve traffic especially eliminating parents parking on the street. The plan is to have all of the parents that are planning to stop longer than picking up their children to go into the existing lot to park. This should improve the traffic flow greatly especially once the traffic congestion caused by the freeway and Disneyland expansion is done. This also gives an additional buffer zone that does not currently exist between their students and playground, and the industrial area. Since this has happened, they have made the decision they will not be transferring over the additional approximate 12 employees currently residing in the Chamber of Commerce building. The school will, therefore, end up with a decrease in parking from what is currently there, and also substantial traffic. They do have need for the facility. City Attorney White. To expedite the process, perhaps they could get a stipulation by all the parties that the testimony and evidence received at the first hearing on July 13, 1999 would be a part of this hearing ;Mr. Jackson and Mr. Anthony so stipulated. City Attorney White. All of the original evidence is deemed a part of this hearing and only new information need be submitted. Philip Anthony representing Bryan Industrial Properties and several other properties in the area. He does not want to offend the Council, but they are shocked at the Council holding this hearing without a full Council. Any action to consider deferring it at this time would be appropriate. He thought it would be an automatic continuance. They will, however, proceed and do the best they can. The fact that Mr. Jackson has signed a lease has no bearing on the decision. They asked for a rehearing in a timely manner. He then briefed the reasons for the rehearing which are summarized (also see Request for Rehearing and Affidavit of Merit which listed the reasons for the request for the rehearing as previously submitted and made a part of the record) : the last-minute letter received from Samson Motorcycle Parts not opposing the expansion when the business strenuously opposed the expansion through the eight or nine-month planning process (the business has since abandoned the area), the property owner who did not oppose is the owner of the subject property, the key issue relates to the rights of the industrial property owners, the school is a conditional use which has no right automatically to operate in that location, the school got its first CUP in 1981 and since then been granted seven additional CUP’s, has been allowed to grow and intrude into the industrial area and now has a total of 5.17 acres before the current CUP making it 6.06 acres, the owners of the 14.25 acres of surrounding industrial property have told the Council) in writing they oppose the expansion and that it is detrimental to their properly-zoned uses. The school today causes unbelievable traffic problems and it has been allowed inch by inch to take over Mable Street as its private driveway. There is no doubt that there are huge changes taking place in the area. The land is in transition as far as infrastructure, as far as access to arterials and the freeways, and the potential changes in patterns of use. The area has been planned for the last 30 years by use permits. It calls for a serious evaluation as to its proper zoning, its best future zoning, and what the best access for the entire area will be. To further brand that area with the imprint of the school is not the best thing that Anaheim can do for that community. Mr. Jackson has said time and again he is not expanding 19 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 because he is not increasing the number of students. The expansion gives them the opportunity to keep it at maximum capacity which at the present time is 795. He questions if he is not expanding, why does ne need the CUP. It would be better for the area including the school to hold things as they are and do a serious replanning of the area. He urged denial of the permit and to work together to replan the area to meet the future needs of the area. John Moresca , Bryan Industrial Properties, 146 E. Orangethorpe , Anaheim. He feels it is a travesty of justice not to have a full Council present to review this important issue. Even though the rehearing was requested by Bryan Industrial, it has been done on behalf of other property owners. He thereupon presented a depiction of the area showing the surrounding industrial properties whose property owners (naming each) signed the petition in opposition to the school expansion (evidence submitted previously). He then elaborated on some of the reasons why. In closing he referred to the Staff Report to the Planning Commission dated August 2, 1999 regarding the 5.8 acre site east of the school on Mable and Embassy (i.e., application for a Conditional Use Permit – CUP 4139 – by American National Properties on behalf of Laidlaw ) referring to and reading some of the findings made relating thereto. He then read th finding No. 10, pg. 8, and finding No. 27 on page 10 of the August 10 Staff Report which he requested be made a part of the record. The two findings clearly recognize the adverse impact of the Fairmont School and the proposed solution is to place an even greater burden on the industrial businesses on Embally Street. He believes that the required findings for a negative declaration as to the Fairmont School CUP cannot be made without considering that impact, which is new information. He urged the Council to take all the information into consideration and deny the CUP and Negative Declaration. David Jackson. He summed up and rebutted some of the testimony given. He signed the lease with the understanding that the CUP was approved. No one from the City or Bryan Industrial contacted him and gave him any warning they were going to appeal this. He was upset that it could even be appealed and signed the lease accordingly. In the discussion about the Samson property, he met with Mr. Hoyt and Bryan Industrial wherein it was discussed if Samson was not able to acquire the property the school was trying to get, the business might move. He made the offer in good faith that if it caused a problem they would be happy to sign a lease with Mr. Hoyt and Bryan but not to use it in any way as a school but just giving the power and control that anyone they leased it to would be more compatible with the school in the future. He has talked in the past to many of the owners and tenants in the area. The Council has some of the letters on file expressing that they do not have a problem with the school acquiring the additional building or working with Fairmont. Since it has been brought up, he was made aware by others besides Mr. Samson (including some property owners) that they really in principal did not have an objection but because of their relationship they were not able to come and vote in favor. They did not want to cause problems for themselves. One of the points brought up was tenants having to be told there is a private school in the area; they also have to be told there are two public schools across the street and another public school in the vicinity. There is more acreage in public and private schools in the area than there is in industrial. The traffic has been a problem but for only two small windows of time the situation will be greatly enhanced with the changes that have been made. There is no conceivable reason why the other neighbors need to be using Mable with their big trucks. All have access through Broadway and Embassy Street. Someone said there will be a significant increase of traffic. The study they had done (previously submitted) stated that there would be no increase in traffic. The opponents brought in Mr. Paul Singer who disputed the study. However, in July 16, 1993, Mr. Singer (the former City Traffic Engineer) was hired by the school at the request of the City to do a parking and traffic study. They had approached the City for a long-term plan to increase the school from 500 to 1,015 students, one-half of which were going to high-school students. Mr. Singer’s findings on page 16, “Traffic generated by this school expansion will not significantly increase traffic volumes at the four study intersections. Year 2010 traffic growth will affect the intersections of Euclid Street and Lincoln in a significant manner. The Fairmont Private School project, howerver, will not significantly contribute to this condition”. He is disputing some of his own findings from earlier and there are only 695 students allowed maximum, not 1,015 and none of which are high-school students. Mayor Pro Tem McCracken closed the Public Hearing. 20 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 Joel Fick , Planning Director. The subject before the Council is the expansion of the .89 acre piece and not the existing school. Council Member Tait . The expansion was previously granted by the Planning Commission 7-0. It came to the Council on appeal and passed on a 3-2 vote. He has not heard any new information that would change his mind. He is going to vote to grant the CUP. Council Member Kring . As she mentioned last time, there is a problem with traffic for only about 15 – 20 minutes two times a day. The proposal is taking a building out that would have the ability to bring tractor trucks in and that is being eliminated. ENVIRONMENTAL IMPACT REPORT – NEGATIVE DECLARATION : On motion by Council Member Tait, seconded by Council Member Kring, 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. Mayor Daly was absent. MOTION CARRIED. Council Member Tait offered Resolution No. 99R-175 for adoption. Refer to Resolution Book. RESOLUTION NO. 99R-175 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 4075. Roll Call Vote on Resolution No. 99R-175 for adoption: AYES: MAYOR/COUNCIL MEMBERS : Kring, Tait, McCracken NOES: MAYOR/COUNCIL MEMBERS : Feldhaus ABSENT: MAYOR/COUNCIL MEMBERS : Daly The Mayor Pro Tem declared Resolution No. 99R-175 and duly passed and adopted. Welcome – Assemblyman Lou Correa: Mayor Pro Tem McCracken noted that Assemblyman Lou Correa was in the Chamber audience; Assemblyman Lou Correa stated he came by to say hello after six months in office representing the th people of the 69 Assembly District and to ask their advice on what the needs are locally. Mayor Pro Tem McCracken . She first stated that they appreciate the fact that the State managed to pass the budget on time. She also acknowledged that they have met with Assemblyman Correa. The City’s issues are vitally important to the area and to all Orange County since they involve the tourist trade, industrial issues and jobs, etc. Assemblyman Correa . He will continue to listen and wants to thank the Council for their vision in continuing to move ahead in securing open space and parks for the area. He noticed the park going in on Vermont and Anaheim Boulevard in his neighborhood and he thanked the Council for that new park. 21 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES, AUGUST 10, 1999 COUNCIL COMMENTS: Council Member Tait : He extended congratulations to the Anaheim Hills West All-Star Team (12-year olds) who won the Southern California Sectional Championship. They have beaten 300 teams in Southern California. Thursday night they play for the Regionals in San Bernardino aand if they win the Regionals , will go back to Williamsport to play for the National Championship. Council Member Kring : She would like to adjourn the Council Meeting in memory of Robert Skinner who, for many years, was the Engraver for the Chamber of Commerce. He is survived by his wife Vivian. Council Member McCracken . She reported on the passing of Dee Noble, a long-time resident of Anaheim, Past President of the Ebell Club and also involved in just about every volunteer organization in Anaheim, the Arts Council, Art Association, Auxilia d’Arts of the Assistance League of Anaheim, Woman’s Division of the Chamber, Harp Guild, etc., along with raising her family of three. Her long-time dedication to community activities will be sorely missed. ADJOURNMENT: Mayor Pro Tem McCracken stated that the Council Meeting of August 10, 1999 is adjourned in memory of both Robert Skinner and Dee Noble (8:17 P.M.) SHERYLL SCHROEDER CITY CLERK 22