2008/07/15ANAHEIM CITY COUNCIL
REGULAR ADJOURNED MEETING OF JULY 15, 2008
The regular meeting of July 15, 2008 was called to order at 3:00 P.M. and adjourned to
3:30 P.M. for lack of a quorum. Mayor Pringle called the regular adjourned meeting to
order at 3:46 P.M. in the Chambers of Anaheim City Hall located at 200 South Anaheim
Boulevard
A copy of the agenda for the Anaheim City Council meeting was posted on July 11, 2008
on the kiosk outside City Hall.
PRESENT: Mayor Curt Pringle and Council Members: Lorri Galloway, Bob Hernandez,
Lucille Kring and Harry Sidhu.
STAFF PRESENT: City Manager Dave Morgan, Assistant City Attorney Cristina Talley,
and City Clerk Linda Andal.
WORKSHOP -WORKFORCE INVESTMENT BOARD (WIB}
Elisa Stipkovich, Community Development Director, explained the workshop had been
prepared at the request of the Mayor to review the Anaheim Workforce Investment
program. She provided a brief overview of the program funded by the U.S. Department
of Labor through the State of California, with monies then allocated to work force
investment areas. She noted Anaheim was one of 49 workforce investment areas in
California and one of three in Orange County. The WIB was a mandated advisory board
with 31 merzbers, 16 from the private sector and 15 from required public entities; the
private sector holding the majority members including the chair. She added the
Chamber of Commerce served as the local entity which made business
recommendations to Council as to private sector representatives. Some discussion was
held on membership vacancies and the recruitment process. Mayor Pringle suggested
vacancies be handled in the same manner as other boards and commissions were, i.e.,
identified and advertised on the City's website and that consideration be given for other
methods to put names forward, whether it be from Economic Development staff or other
relationships and that a balance of employers representing companies from different
industries and with a diverse number of employees be encouraged.
Ms. Stipkovich reported the Workforce program consisted of three components: core
services, intensive services and training. She remarked anyone could receive core
services but the intensive services and training programs had e{igibility requirements.
She identified the types of programs in operation as well as services provided to the
business sector. She indicated that at a minimum, an annual survey of employers based
on the labor market was conducted to determine training needs and job openings
available with program services. She reported that training was then geared to those
particular needs.
In the last five years, she remarked, the program assisted over 2,322 employers and
21,458 job seekers. The Rapid Response Program, she added, provided services for
businesses which had layoffs of over 50 people in the City, with 68 companies and over
6,000 employees utilizing those services. Mayor Pringle remarked he would like to see
City Council Minutes of July 15, 2008
Page 2 of 22
the numbers of people using the intensive and training programs, those that were
successful in getting employment as well as the types of jobs provided.
Ms. Stipkovich pointed out funding had been increased to $2.7 million with the program
objectives to use funds appropriately and ensure training dollars were provided to
individuals. Council Member King remarked that the Gigante Company had been
bought out with a job loss of 725. Ms. Stipkovich indicated staff had preliminary
discussions with Gigante and hoped the new employer would assimilate the current
employees. Ms. Stipkovich remarked there was a 77 percent placement requirement for
everyone going through the program and the City had exceeded the replacement rate
with an 89 percentile and had also exceeded the nine month retention rate for those
jobs, which average a $14.77 hourly rate.
Mayor Pringle expressed dissatisfaction in the information provided stating it was not
clear to him by either this presentation or the annual reports filed on the Workforce
Investment Program on who the programs served, how the $2.7 million had been
expended or how the programs were implemented. He expressed interest in
outreaching to more businesses and new industries, and evaluating the current job
placement agreements which had not changed since they were signed seven years ago.
He requested additional information to study how the City should be focusing workforce
training opportunities or how different industry sectors could be involved. Ms. Stipkovich
responded that the department would provide a fuller, more detailed report to Council
addressing the concerns raised. Once the in-depth report had been submitted to
Council, Mr. Morgan recommended that another workshop would be scheduled.
WORKSHOP -WATER SHORTAGES
Marcie Edwards, General Manager, explained this report would forecast the
department's assumptions regarding water shortages, asking for Councils' reactions and
feedback on the presentation.
Overview -She stated Anaheim's primary water source was about 70 percent from the
Orange County (OC) groundwater basin with the remaining 30 percent imported from
Metropolitan Water District (MWD). MWD, she informed, relied on water from northern
California and the Colorado River Basin as its primary sources. Last year, there was dry
weather in all three areas, northern California, the Colorado River Aqueduct and
southern California which was further compounded by court-ordered restrictions which
reduced the amount of water MWD could move from the Bay Delta to southern California
{up to 30 percent reduction) to protect the endangered Delta smelt. Since that time, she
remarked, there had been below average rain fall in both southern California and
northern California and in response to these conditions, Governor Schwarzenegger
declared a statewide drought ordering immediate action to reduce water consumption for
the remainder of 2008 and to prepare for water conditions that could worsen significantly
in 2009. She indicated MWD had issued a water supply alert urging water agencies
adopt and/or enforce their drought ordinances to accelerate public outreach and develop
local supplies. MWD had been using water from storage reservoirs to cope with the loss
of northern California water with their reservoirs now at 50 percent capacity and
declining. She emphasized Anaheim supplies from MWD could be cut starting July 2009
if the dry weather pattern continued.
City Council Minutes of July 15, 2008
Page 3 of 22
Anaheim's Response - Ms. Edwards pointed out over the last 20 years, Anaheim's
population increased roughly 36 percent with water usage rising by seven percent.
Conservation related activities had been significant and were now being focused on
reducing outdoor water use. She reported that 70 percent of residential water use was
for landscaping and she detailed those programs and the equipment changes being
promoted, targeting large landscapes and homeowners associations. She discussed
some of the longer-term solutions to incorporate drought-proof water supplies into
Anaheim's portfolio such as developing recycled water supplies within the City through
smaller satellite-type recycled water plants and evaluating seawater desalination efforts
in Huntington Beach.
The City's drought ordinance adopted in 1991 was explained: with three shortage plans
to temporarily reduce water use in the City. Plan 1, which the department planned to
recommend to Council next month, defined a number of water use reduction measures
and urged all customers to voluntarily refrain from uses such as washing down
driveways and other paved surfaces and allowing water to runoff landscaped areas into
streets and precluding landscape watering between hours of 10 a.m. to 5 p.m. Plan 2
prohibited the same water uses identified in Plan 1 and permitted Council to adopt a
drought surcharge rate to further encourage customers to conserve. Plan 3 was the
highest level of drought response and rationed water to specific customers. With the
adoption of Plan 1 next month, the seriousness of the City's conservation message
would be highlighted and help get Anaheim customers ready for a potential increase in
drought response measures if water supplies were cut in 2009.
If No Action Taken - Ms. Edwards pointed out if the drought continued and the City took
no action to curtail water usage, the City would pay more for any additional water
mandated by MWD, at least three to five times higher. This action would provide very
little incentive for customers to reduce water usage and would mean that every customer
would pay regardless of their conservation efforts.
Another option if no action is taken, was a drought surcharge rate which reflected a
conservation-based tiered rate structure. Ms. Edwards detailed the specifics of that
tiered rate structure, stating that it would foster conservation. Although, for customers
already using a limited amount of water, there would not be much opportunity to
conserve and they would be impacted.
She emphasized if the intent was to motivate water conservation, then there had to be a
greater price differential. Right now, she revealed, voluntary calls for conservation in
San Diego and Los Angeles resulted in customers using more water not less since it
was one of the cheapest commodities around. Ms. Edwards recommended preparing a
drought surcharge which would be a form of conservation-based rate that protected the
health and safety of individual and would still allow the City to recover the dollars
necessary to pay higher fees to MWD and send a signal to water uses who could control
or manage landscape uses rather than use rationing, penalties or violations.
Council Member Sidhu asked how the situation became so severe. Ms. Edwards
responded that the water shortage was a combination of less than normal rainfall in the
areas of snow in the mountains and MWD relying to a greater extent on reservoir
supplies coupled with a reduction in the amount of water allowed into California from the
Colorado River Aqueduct. She elaborated that there was a seven state agreement
which cut California's allocation significantly and created much greater dependency on
City Council Minutes of July 15, 2008
Page 4 of 22
northern California water and adding the decision made by the court which ordered
protection to endangered species, the amount of water pumped from northern to
southern California was dramatically reduced. Council Member Sidhu remarked that it
would appear Southern California needed a permanent solution for water use not just to
address the drought with Ms. Edwards responding that he was correct. The City was,
she emphasized, moving in the direction of establishing drought proof water supplies
such as recycled water. She shared that different uses for shallow groundwater which
could be used for irrigation, was working with golf courses and looking into a number of
water development options. In addition, she mentioned the Energy Park would be
showcasing 65,000 square feet of artificial turf -all actions intending to make the City
more self reliant. She indicated that 19 cities pump water out of the Orange County
Groundwater Basin and it was managed by a percentage allocation method set by
OCWD and currently only 69 percent of Anaheim water needs was allowed to be
pumped out of the basin. Additionally, staff had been targeting homeowners
associations (HOA's) and working with Public Works Department on median islands and
parkways in an effort to balance aesthetic concerns and water use.
Council Member Sidhu recommended additional education efforts be implemented to get
the word out on conservation to all customers.
Ms. Edwards ended her report, emphasizing the money charged for water to customers
was only allowed to go into infrastructure improvements and the fact remained that the
only way to get users' attention was to be able to raise the price of the commodity so
they use it differently.
Council Member Hernandez remarked in the 40" years he lived in Anaheim, he did not
recall having a mandatory conservation program and wondered how it could be
implemented. Ms. Edwards responded that she would like the program to be mandatory
to gain as much compliance as possible but would not recommend any penalties or
violations be used. The key to the plan, she remarked, would be a drought surcharge
where household usage of water was protected at the lower rate but once a customer
started using outside water, the price would increase accordingly. She added the
Department would need some way of paying MWD if rates were increased three to five
times if Anaheim used over the allocated amount.
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
At 4:55 P.M., Council recessed to closed session for the following items:
CLOSED SESSION
PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Titles: City Manager, City Attorney, City Clerk, City Treasurer
With possible action on salary adjustments to be taken in open session under
Agenda Item No. 41.
At 5:39 P.M., Council returned from Closed Session to act on the remainder of the
agenda.
City Council Minutes of July 15, 2008
Page 5 of 22
Invocation: Pastor Rick Olsen, The Beacon
Flaa Salute: Council Member Kring
Presentations: Recognizing Father Seamus Anthony Glynn on his retirement
from San Antonia Catholic Church -Council and the Anaheim
community paid tribute to Father Glynn
Acceptance of Other Recognitions (To be presented at a later date}:
Recognizing Econolite on their 75th anniversary
Recognizing Diana Rios and Amy Shah on receiving a Disneyland
Resort Scholarship - Mr. Lowe, Disney Corporation, introduced
Diana Rios and Amy Shaw, two of 11 scholarship recipients
receiving $5,000 towards their college education.
AT 5:45 P.M., Mayor Pringle called to order the Anaheim Redevelopment Agency and
the Anaheim Housing Authority (in joint session with the Anaheim City Council).
ADDITIONS/DELETIONS TO THE AGENDAS: None
PUBLIC COMMENTS (all items except public hearing):
William Fitzgerald, Anaheim HOME, addressed his comments to Disney fireworks
alleged pollution and resulting pollution impacts.
Phyllis Delrigo, Lido Street, supported approval of Item No. 31 authorizing permit parking
on Claredge and Hermosa Drives and requested Council reevaluate permit parking on
Lido Street. She added that the original vote on Lido Street was in favor of permit
parking and had been deemed invalid by the City Attorney with no legal justification
given. Mayor Pringle remarked that staff would provide a written response to inform
Council of the Lido Street parking concerns and to address any next steps the
neighborhood could take and that response would be made available to Ms. Delrigo.
Larry Grandfieid, Lido Street, requested Council investigate the Lido Street parking
permit matter and to provide the neighborhood with written assurance to honor the
original vote to allow permit parking and to schedule this at the next Council Meeting.
Mayor Pringle responded that the first step would be for staff to provide a report to
Council for their information.
Martine Weir, Director of Juvenile Consulting Services, explained she was operating a
new program for at risk youths in Anaheim Hills and invited interested persons to find out
more information on their website, www.luvenileconsultingservices.com.
Paul Beckman, East Anaheim Community District encouraged CounciE to approve Item
No. 28 related to the dedication of Avenida de Santiago which had mistakenly remained
undedicated for 20 years, thanking Council Member Kring and staff for resolution of this
matter.
City Council Minutes of July 15, 2008
Page 6 of 22
At 6:06 P.M., Mayor Pringle recessed Council session to consider the Anaheim
Redevelopment Agency agenda, reconvening the Council meeting at 6:08 P.M.
CONSENT CALENDAR: Mayor Pringle removed Item No's. 11, 13, 18, 19 and 21 from
the consent calendar for further discussion. Council Member Hernandez moved to
waive reading in full of all ordinances and resolutions and adopt the balance of the
consent calendar in accordance with the reports, certifications and recommendations
furnished each council member and as listed on the Consent Calendar, seconded by
Council Member Sidhu. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members:
Galloway, Hernandez, Kring and Sidhu. Noes - 0. Council Member Kring recorded an
abstention on Item No. 23. Motion Carried
6. Receive and fife Southern California Gas Company's Notification of Revision of
s1o5 Notice of filing of Low-Income Program Application No. 08-05-025 and minutes of
Housing and Community Development Commission meeting of June 4, 2008.
7. Review the need for continuing the local emergency heretofore proclaimed by the
D175 Director of Emergency Services as ratified by previous action of the City Council
concerning land movement and property damage in the vicinity of 357, 365 and
373 Ramsgate Drive and the Hidden Grove Lane/Fox Glen Drive area in the City
of Anaheim, and, by motion, determine that the need for continuing the loca{
emergency exists.
8. Approve City Council meeting minutes of June 10, 2008 and June 24, 2008.
9. Award the contract to the lowest responsible bidder, All American Asphalt, in the
5255 amount of $720,915.92, for the Gilbert Street Improvement Project from Crescent
AvenuF to Broadway and authorize the Finance Director to execute the Escrow
Agreement pertaining to contract retentions.
10. Accept the lowest responsive bid and authorize the Purchasing Agent to issue a
D18o purchase order to Boundtree Medical LLC, in an amount not to exceed $172,553,
for a period of one year and to exercise up to four one-year renewal options, for
medical supplies for the Fire Department, in accordance with Bid #7108.
12. Approve and authorize the Director of Public Works to execute Contract Change
5140.0.01 Order No. 1 with Vasilj, Inc., in the amount of $244,218.69, for additional work in
the Citywide Sanitary Sewer System Repair Project, Phase I.
14. Approve the Public Utilities Department fiscal year 2007/08 net write-off of
D182 uncollectible customer accounts, in the total amount of $606,284.
15. Approve and authorize the City Manager to execute a Memorandum of
5256 Agreement with the Cities of Santa Ana, Irvine, and Huntington Beach; the
Orange County Fire Authority and the County of Orange, by and through the
Orange County Sheriff-Coroner Department and Health Care Agency to
participate in the Orange County Intelligence Assessment Center, amulti-agency
and county-wide collaborative, to serve as an information and intelligence
sharing network related to all terrorist threats, criminal risks and safety threats to
residents, visitors, and critical infrastructure in Orange County.
City Council Minutes of July 15, 2008
Page 7 of 22
16. Approve and authorize the City Manager to execute a Professional Service
5257 Agreement with LSA Associates, Inc., in the amount of $200,000, for on-call
environmental consulting services related to Department of Housing and Urban
Development and National Environmental Policy Act compliance.
17. Approve and authorize the Public Utilities General Manager to execute the
3040.o.A Assignment and Assumption Agreement assigning rights and delegating duties
from J.J. Mac Intyre Co., Inc. to U.S. Collections, Inc. under which J.J. Mac Intyre
collects on delinquent Closing Bills for the Public Utilities Department.
20. Approve Parcel Map 2006-285 for parcel located at 1128 West Lincoln Avenue.
P174
22. Confirm the Public Works Director's authority to cast votes on eligible City-owned
D175 property in favor of the Mello-Roos District 08-1, The Platinum Triangle.
23. Determine, on the basis of the evidence submitted by Anaheim GW, LLC, that
AGR-1463 the property owner has complied in good faith with the terms and conditions of
Development Agreement No. 99-01 for the 2007-2008 review period for the
Anaheim Gardenwalk project in The Anaheim ResortT""
Council Member Kring abstained.
24. Determine, on the basis of the evidence submitted by BRE Properties, Inc., that
AGR-3504 the property owner has complied in good faith with the terms and conditions of
AGR-3506 Development Agreement Nos. 2005-00001 and 2005-00003 for the 2007-2008
review period for the Park Viridian and Stadium Park Apartment projects in The
Platinum Triangle.
25. Determine, on the basis of the evidence submitted by Anaheim Katella, LLC, that
AGR-3505 the property owner has complied in good faith with the terms and conditions of
AGR-3750 Development Agreement No. 2005-00002 for the 2007-2008 review period for
the Stadium Park Condominium project in The Platinum Triangle.
26. RESOLUTION NO. 2008-119 A RESOLUTION OF THE CITY COUNCIL OF
D175 THE CITY OF ANAHEIM authorizing the destruction of certain City records more
than two years old (Public Works).
27. RESOLUTION NO. 2008-120 A RESOLUTION OF THE CITY COUNCIL OF
P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of
Anaheim certain real properties or interests therein. (City Deed Nos.
11145,11147,11152,11153,11155,11156}.
28. RESOLUTION NO. 2008-121 A RESOLUTION OF THE CITY COUNCIL OF
P178 THE CITY OF ANAHEIM accepting an irrevocable Offer of Dedication of certain
property and/or facilities (Tract No. 8520).
29. RESOLUTION NO. 2008-122 A RESOLUTION OF THE CITY COUNCIL OF
P110 THE CITY OF ANAHEIM authorizing the sale of certain City owned property
located at 2516 West Glencrest Avenue (APN 071-295-19) (ABA 2006-00134).
City Council Minutes of July 15, 2008
Page 8 of 22
30. RESOLUTION NO. 2008-123 A RESOLUTION OF THE CITY COUNCIL OF
P110 THE CITY OF ANAHEIM vacating a portion of West Water Street and South
West Street pursuant to California Streets and Highway Code section 8330, et
seq. -Summary Vacation. (Abandonment No. ABA 2008-00175).
31. RESOLUTION NO. 2008-124 A RESOLUTION OF THE CITY COUNCIL OF
D175 THE CITY OF ANAHEIM designating Claredge Drive between Loara Street and
east end of Claredge Drive as "Permit Parking Only" street within Permit-Eligible
Parking District No. 1 (Permit Parking Area No. 1).
RESOLUTION NO. 2008-125 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM designating Hermosa Drive between La Palma Avenue
and Claredge Drive as "Permit Parking Only" street within Permit-Eligible Parking
District No. 1 (Permit Parking Area No. 1).
32. RESOLUTION NO. 2008-126 A RESOLUTION OF THE CITY COUNCIL OF
5259 THE CITY OF ANAHEIM terminating the existing agreement with Victor J.
Kaleta, appointing Michael H. Miller as the new City Hearing Officer pursuant to
Section 1.12.110 of the Anaheim Municipal Code, and approving an agreement
for Hearing Officer services with Michael H. Miller.
33. RESOLUTION NO. 2008-127 A RESOLUTION OF THE CITY COUNCIL OF
D129 THE CITY OF ANAHEIM authorizing the Fire Chief or his designee to submit a
grant application on behalf of the City of Anaheim to the Governor's Office of
Emergency Services for DR-1731 Hazard Mitigation Grant Program, and if
awarded, authorizing the acceptance of such grant on behalf of the City and
amending the budget for fiscal year 2008-09 accordingly.
34. RESOLUTION NO. 2008-128 A RESOLUTION OF THE CITY COUNCIL OF
D129 THE CITY OF ANAHEIM approving submission of the City of Anaheim
Emergency Operations Plan to the State of California Office of Emergency
Services.
35. ORDINANCE NO. 6107 (INTRODUCTION) AN ORDINANCE OF THE
C2so CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the
Anaheim Municipal Code relating to zoning (Reclassification No. 2007-00214;
717 South Dale Avenue).
END OF CONSENT CALENDAR
11. Authorize the Purchasing Agent to issue purchase orders, in an amount not to
D18o exceed $491,700 (plus applicable taxes), for the purchase of various alternative
fuel vehicles and increase the Department of Public Works fiscal year 2008/2009
expenditure appropriation accordingly.
Mayor Pringle reported that based on comments arising from the budget presentation on
the Public Works fleet program and alternative fuel vehicles (AFV), Council Member
Galloway and he had met earlier with Transportation Liaison committee and staff to
receive an overview of the City's fleet program. Of 1,340 vehicles, 852 were motorized
in the fleet vehicle maintenance program, 280 of which were police vehicles of which low
emission fuel standards might not address the needs of public safety staff and another
City Council Minutes of July 15, 2008
Page 9 of 22
250 reflected oversized vehicles which might not allow for alternative fuels. The goal
suggested at the budget meeting was to draft a plan to build towards greater use of
AFVs in the fleet. Currently, he pointed out, the City had 40 AFVs, which was too few in
his opinion and he recommended the City move forward in determining the types of
AFV's to use, as well as consideration of where hybrid vehicles could be used and
encouraging the Police Department to look for AFV's which could serve some of their
needs.
This item, Mayor Pringle remarked, was to purchase 15 alternative fuel vehicles for the
Public Utilities Department. Council Member Sidhu inquired why CNG vehicles had
been selected. The Public Works Director, Natalie Meeks, responded the department
had a history with CNG, and it was a reliable, clean burning vehicle and there was a
fueling station located in the City yard.
Council Member Sidhu moved to approve Item No. 11, seconded by Council Member
Kring. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez,
Kring and Sidhu. Noes - 0. Motion Carried.
13. Approve fiscal year 2007/08 write-off of uncollectible miscellaneous accounts
n128 receivable, in the total amount of $678,880.
Mayor Pringle asked for a clearer understanding of the makeup of uncollectible accounts
receivables. Bill Sweeney, Finance Director, responded these write-offs represented
miscellaneous accounts receivables that were over one year old for which collection
efforts by the Finance Department, City Attorney's staff and/or outside collection agency
had not been successful. He added efforts would continue to pursue collection of these
accounts but that generally accepted accounting principles required the write-down of
receivables for financial reporting purposes. There were six categories identified:
property damage, booking fees, emergency cost recovery, engineering, citation and re-
inspection fees and false alarm fees. The first category of uncollectible accounts, he
explained, related to damage to City property which in the last fiscal year reflected
$133,000. Booking fees were fees assessed to people arrested, booked and convicted
of a crime and reflected $256,000 this past fiscal year. Mayor Pringle inquired what
percentage of booking fees were written off and Mr. Sweeney replied that roughly three-
quarters were written off with a 25 percent collection rate. Emergency cost recovery
related to certain police and fire billings, fire preventions, various types of inspections
which reflected $86,000 and false alarm charges reflected $47,000.
Mayor Pringle questioned $47,000 in false alarm fees with Mr. Sweeney responding that
the commercial establishment at times refused to pay and he did not recommend
pursuing litigation fora $250 charge. Mayor Pringle asked for a breakdown of
information related to the false alarm fees, both residential and commercial. Council
Member Hernandez recommended linking the unpaid fees to business license renewals.
Ms. Talley, Assistant City Attorney responded that business licenses could not be used
in a regulatory manner as it was revenue generating only.
Council Member Kring moved to approve Item No. 13, seconded by Council Member
Hernandez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway,
Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
City Council Minutes of July 15, 2008
Page 10 of 22
Mayor Pringle remarked that with regard to Item No. 17, he would like to see where the
City stood on the collection of those items, the total amount that was being collected and
what rate was being paid.
18. Approve an electric transmission and telecommunications right-of-way License
297G.A Agreement with Southern California Edison Company for the Barre-Villa Park
220 kV transmission line right-of-way (Claudina Way to Lewis Street; Property
No. POBVP799B22).
19. Approve an electric distribution right-of-way License Agreement with Southern
1955.8 California Edison Company for the electric distribution facilities within Barre-Villa
Park 220 kV transmission line right-of-way (North of Katella Avenue, between
Anaheim Boulevard and the Southern Pacific Railway right-of-way; Property No.
POBVP799B21).
Mayor Pringle had pulled Item No's 18 and 19 from the consent calendar as an
opportunity to find out the status of the last set of right-of-way agreements where there
had been action to be taken in terms of dedication and transitioning certain easements
into public use.
Dukku Lee, Public Utilities Department, responded that with regard to O Line, in the
franchise agreement with SCE, 15 percent of their fines had to be removed for the
agreement and 4.5 circuit miles ended up being designated for removal. That work, he
reported, was under way, the City had met with Edison and they were required to
remove those lines by June of 2010. He added Edison maintained their schedule was
on track, and were working on design plans but had not yet shared them with the City.
Mayor Pringle requested he be notified when those plans were submitted to the City, as
he had received questions by impacted neighbors as to when the work would
commence.
Mayor Pringle moved to approve Item No's. 17 and 18, seconded by Council Member
Kring. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez,
Kring and Sidhu. Noes - 0. Motion Carried
21 Approve response to the Orange County Grand Jury Report entitled, "No County
CONT'D for Old Boomers -When Orange County Baby Boomers Retire, Where Will They
Live?" regarding future planning for senior housing and authorize the Mayor to
execute a letter and forward the response to the Presiding Judge of Orange
County Court and the Orange County Grand Jury.
Mayor Pringle remarked the last grand jury response letter he was authorized to sign
showed up in political campaigns so he was much more concerned about the wording so
it was not misconstrued as the last letter was. He asked if the HCD comments had been
received and if so, he stated they should be reflected in this letter. Mr. Morgan
responded the HCD comments had been received last Friday afternoon and staff was
working on adding them to the response letter. He indicated this item could be
continued to July 29th at which the time response letter would be updated.
Council Member Hernandez felt the grand jury completely disregarded Regions{ Housing
Needs Assessment regulations pointing out the City's job was to balance housing across
City Council Minutes of July 15, 2008
Page 11 of 22
the economic demographics rather than focusing on housing for retired baby boomers.
Mayor Pringle concurred stating he would fee! more comfortable pointing out Anaheim's
housing strategy in full rather than focusing on one area.
With the consent of Council, Mayor Pringle continued this ifem to July 29, 2008.
36. Consider appointments to complete an unexpired term on the Library Board, term
8105 to expire June 30, 2009 and on the Park and Recreation Commission, term to
expire June 30, 2010.
LIBRARY BOARD:
Appointment: Roberto Baeza (expires June 30, 2009)
(Mary Hibbard)
Council Member Kring nominated Roberto Baeza and Council Member Hernandez
nominated Diane Sergeant. The straw vote for Mr. Baeza reflected Ayes - 4, Noes - 0
and Abstention - 1(Council Member Hernandez). The straw vote for Ms. Sergeant
reflected Ayes - 1(Council Member Hernandez), Noes - 0 and Abstentions - 4 (Mayor
Pringle, Council Members: Galloway, Kring and Sidhu.) Mr. Baeza was appointed to the
Library Board.
PARK AND RECREATION COMMISSION:
Appointment: Andrea Manes (expires June 30, 2010)
(Samantha Navarro)
Council Member Kring nominated David Lopez and Council Member Hernandez
nominated Andrea Manes. The straw vote for Mr. Lopez reflected Ayes - 1; (Council
Member Hernandez), Noes - 0, Abstentions - 4 (Mayor Pringle, Council Members
Galloway, Hernandez and Sidhu). The straw vote for Ms Manes reflected Ayes - 5,
Noes - 0. Ms. Andrea Manes was appointed to the Parks and Recreation Commission.
PUBLIC HEARINGS:
37. This is a continued public hearing for the fiscal year 2008/2009 changes in fee
D129 schedule for the Anaheim Fire Department.
RESOLUTION NO. 2008-109 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM revising fees for services rendered by the Anaheim Fire Department
and establishing the effective date of fees (Continued from City Council meeting of June
24, 2008, Item No. 38-M.)
Chief Roger Smith remarked the fire department had various fees for plan reviews, false
alarms and inspection activities pointing out that in 2006, the department had retained a
consulting firm to establish fees that were equal to actual costs, reviewed methodology
and calculated an appropriate hourly rate that would equal an amount reflecting true
costs in relation to inspection services. Since adoption in 2006, no fee increases had
been implemented while labor and burden rates for both fire prevention personnel and
inspection personnel had increased since 2006. To maintain a fee that reflected the true
City Council Minutes of July 15, 2008
Page 12 of 22
costs for both, staff recommended a 10 percent for inspection and raising false alarm
fees from $200 to $250.
Council held a lengthy discussion on plan check and inspection processes for both the
Fire Department and Building Division. Mayor Pringle felt the Fire Department fees were
too high in relation to similar fees identified in the Building Division and Utilities
Department.
Council Member Hernandez moved to approve Resolution No. 2008-109 of the City of
Anaheim revising fees for services rendered by the Anaheim Fire Department and
establishing the effective date of fees, seconded by Council Member Kring. Roll call
vote: Ayes - 4; Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 1:
Mayor Pringle. Motion Carried.
38. CEQA SUBSEQUENT EIR NO. 334 (PREVIOUSLY CERTIFIED)
C220 CONDITIONAL USE PERMET NO. 2007-05284
TENTATIVE TRACT MAP NO. 17241
DEVELOPMENT AGREEMENT NO. 2007-00006
MISCELLANEOUS CASE NO. 2008-00246
OWNER: Robert Wells Family Partnership , L.P., 506 Via Lido Nord, Newport
Beach, CA 92663 and Twedt Family Partnership, L.P., 3200 Park Center Drive,
Suite 720, Costa Mesa, CA 92626
APPLICANT: Trammel Crow Residential, 949. South Coast Drive 40, Costa
Mesa, CA 92626
LOCATION: 2100 East Orangewood Avenue: Property is approximately 6.98
acres, having a frontage of 497 feet on the south side of Orangewood Avenue
and located 308 feet east of the centerline of State College Boulevard.
Requests to construct a 689-unit residential development in five buildings, each
ranging in height from 4 to 5 stories. This project requires approval of the
following requested actions:
Conditional Use Permit No. 2007-05284 - to modify setback requirements.
Tentative Tract Map No. 17241 - to establish a 4-lot (1-lettered and 3-
numbered), 689-unit airspace residential condominium subdivision.
Development Agreement No. 2007-00006 -request to adopt a Development
Agreement between the City of Anaheim and TCRSC Development Limited
Partnership, Robert Wells Family Partnership Limited Partnership and Twedt
Family Partnership Limited Partnership.
Miscellaneous Case No. 2008-00246 - to request an extension for the
execution of the development agreement between the City of Anaheim and
Robert Wells Family Partnership, Twedt Family Partnership, and TCRSC
Development Limited Partnership.
ACTION TAKEN BY THE PLANNING COMMISSION:
VOTE: 6-0 (Commissioner Karaki absent) on the following items:
Approved Previously-Certified CEQA Subsequent EIR No. 334
Approved and Recommend City Council review of Conditional Use Permit No.
2007-05284 (PC2008-60}.
Approved and Recommend City Council review of Tentative Tract Map No.
17241 (PC2008-61 }
City Council Minutes of July 15, 2008
Page 13 of 22
Recommend City Council approval of Development Agreement No 2008-00006
with a modification to add a condition of approval pertaining to fencing/screening
(PC 2008-62).
Recommend City Council approval of Miscellaneous Case No. 2008-00246
(Planning Commission Meeting of May 12, 2008)
(Continued from City Council meeting of June 10, 2008, Item # 52)
MOTION: S!K Determine that Subsequent Environmental Impact Report
No. 334 is adequate to serve as the required environmental documentation for
this request.
RESOLUTION NO. 2008-129 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM granting Conditional Use Permit No. 2007-05284.
ORDINANCE NO. 6108 (INTRODUCTION) AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF ANAHEIM (i} approving Development
Agreement No. 2007-00006 by and between the City of Anaheim and Robert
Wells Family Partnership, a California Limited Partnership and Twedt Family
Partnership, a California Limited Partnership, as tenants-in common and
TCRSC Development Limited Partnership, a Texas Limited Partnership (ii)
making certain findings related thereto, and (iii} authorizing the Mayor to execute
said agreement for and on behalf of the City.
RESOLUTION NO. 2008-130 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM granting Tentative Tract Map No. 17241.
MOTION: S/K Approve an agreement between with Trammell Crow
Residential extending the timeframe for executing the development agreement.
CJ Amstrup, Planning Department, reported this project was requested by Trammel
Crow Residential to enter into a development agreement with the City to develop the
Alexan Orangewood project, a 689 unit residential development. On May 12, 2008, the
Planning Commission recommended Council approve the proposed conditional use
permit to modify building setbacks and a tentative tract map for afour-lot subdivision
and a 689 unit condominium subdivision. Although the applicant requested a
condominium map, he stated, they intended the development to be initially occupied as
apartments. The Commission also recommended Council approve the development
agreement with a term of five years and an agreement to extend the time frame for
executing the development agreement to allow completion of negotiations with the
property owner.
The project, Mr. Amstrup point out, would be located on 6.9 acres on the south side of
Orangewood Avenue, currently developed with an industrial business and zoned
Industrial/ Platinum Triangle Mixed Use Overlay. It was also located across from A-
Town Stadium and Orangewood Condominium projects and south of the Archstone
Gateway project. Buildings 1, 2, 4 and 6 would be six stories tall and buildings 3 and 5
would be five stories tall and the project would have a density of 99.4 units per acre.
He described in detail the various amenities included in the project, noting that the
buildings met design requirements for the Platinum Triangle and recommended
approval.
City Council Minutes of July 15, 2008
Page 14 of 22
Mayor Pringle opened the public hearing.
Steve Sheldon, applicant, stated he had worked 18 months with City staff and was
pleased with the product that was being presented. He had read and accepted the
conditions of approval.
Alison Morely, Trammell Crow Residential, highlighted Trammel Crow's background
and its proven record of success having completed over $2 billion of development in
this area over the last ten years. She described the various elements of Alexan
Orangewood units, stating it had been designed in two different architectural styles to
create an urban village feel and to allow the project to be phased and operated
separately, if necessary. She explained the project would offer every type of unit from
traditional flats to flexible open floor plan lofts and townhomes, would be constructed
built to green standards employing such elements as a cool roof and vinyl windows and
would range from 550 square feet to 1,470 square feet. To gain a competitive edge,
she noted, the apartments would have the highest quality of amenities including 3.2
acres of recreational leisure space and condominium grade finishes, three courtyards
and four plazas, lush landscaping, pools, spas and water features as well as
barbeques, lounge areas, outdoor fireplaces and fire pits, weaving walkways, and
special paving treatments and dog runs. There would also be a club house, media
entertainment room, full service kitchen and fitness center with additional community
space available such as a business center and conference rooms. The amenities, she
emphasized, were not limited to community space, and units would have top grade
appliances, washers and dryers, wood cabinetry, granite counter tops, the flooring and
carpet at a similar finish level to those found in condominiums. She remarked the
project reflected a $200,000,000 investment in Anaheim, 11,000 construction trade and
management jobs, 18 on-site property management and operation jobs, and municipal
fees of $9 million.
With no other public comments, the hearing was closed.
Council Member Sidhu remarked it was good to see this project coming forward during
tough economic times and this project had his full support.
Council Member Kring asked how parking would be addressed. Ms. Morely responded
that there would be subterranean parking in all five of the buildings, with one
subterranean lot going from buildings 3, 4 and 5, and a separate subterranean lot under
buildings 1 and 2. Buildings 1, 2 and 4 would also have two levels of at grade parking,
not able to be seen from the street and in all there would be 1,105 parking spaces and
50 visitor stalls which met code. Council Member Kring added this project had her
support.
Council Member Galloway also expressed her support of the project and asked that the
developer be considerate of having rental prices affordable to the workforce helping to
build the apartments. She asked how the potential lawsuit affected this project. Ms.
Morely responded that the lawsuit was taken into consideration in the timing schedule
provided to the City. Minus the lawsuit, the project could have opened before 2011.
Council Member Sidhu moved to determine that Subsequent Environmental Impact
Report No. 334 was adequate to serve as the required environmental documentation for
this request; to approve RESOLUTION NO. 2008-129 OF THE CITY OF ANAHEIM
City Council Minutes of July 15, 2008
Page 15 of 22
granting Conditional Use Permit No. 2007-05284; to introduce ORDINANCE NO. 6108
approving Development Agreement No. 2007-00006 with Robert We{Is Family
Partnership, a California Limited Partnership and Twedt Family Partnership, a California
Limited Partnership, as tenants-in common and TCRSC Development Limited
Partnership, a Texas Limited Partnership (ii) making certain findings related thereto, and
(iii) authorizing the Mayor to execute said agreement for and on behalf of the City; to
approve RESOLUTION NO. 2008-130 OF THE CITY OF ANAHEIM granting Tentative
Tract Map No. 17241; and to approve an agreement with Trammell Crow Residential
extending the timeframe for executing the development agreement, seconded by
Council Member Kring. Roll call vote: Ayes - 5; Mayor Pringle, Council Members:
Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
39. CONTINUED PUBLIC HEARING
0220 CEQA NEGATIVE DECLARATION
GENERAL PLAN AMENDMENT NO.2008-00464,
RECLASSIFICATION NO. 2008-00216,
CONDITIONAL USE PERMIT NO. 2008-05309
DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 2008-
00040
OWNER: Ishkhan K. Sahagian, 1 Bormes Street, Irvine, CA 92614
APPLICANT: Joseph Karaki, Western States Engineering, 4887 East La Palma
Avenue, Suite 707, Anaheim, CA 92807
LOCATION: 770 North East Street: Property is approximately 0.57-acre,
located at the southeast corner of La Palma Avenue and East Street, having a
frontage of 150 feet on the south side of La Palma Avenue and 230 feet on the
east side of East Street.
Request to permit a service station with a car wash and a convenience market
with sales of beer and wine for off-premises consumption. This project requires
approval of the following actions:
General Plan Amendment No. 2008-00464 - to amend the Land Use Element
Map of the General Plan to redesignate the property from the Low-Medium
Density Residential designation to the General Commercial designation.
Reclassification No. 2008-00216 - to reclassify the property from the Single-
Family Residential (RS-2) zone to the General Commercial (C-G}zone.
Conditional Use Permit No. 2008-05309 - to permit a service station with a car
wash and a convenience market with safes of beer and wine for off-premises
consumption.
Public Convenience or Necessity No. 2008-00040 - a Determination of Public
Convenience or Necessity to permit sales of beer and wine for off-premises
consumption.
ACTION TAKEN BY THE PLANNING COMMISSION:
VOTE: 6-0 (Commissioner Karaki abstained)
Recommended City Council approval of General Plan Amendment No. 2008-
00464 (PC2008-51)
Approved and Recommended City Council review and approval of the following:
CEQA Negative Declaration
Reclassification No. 2008-00216 (PC2008-52)
Conditional Use Permit No. 2008-05309 (PC2008-53) and added condition of
approval regarding a lighting plan and final landscape plan.
Public Convenience or Necessity No. 2008-00040 (PC2008-54}
City Council Minutes of Jufy 15, 2008
Page 16 of 22
(Planning Commission Meeting of April 28, 2008)
(Appealed by citizen on May 19, 2008)
MOTION: H/K Approve Negative Declaration.
RESOLUTION NO. 2008-131 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving General Plan Amendment No. 2008 00464,
pertaining to the Land Use Element.
RESOLUTION NO. 2008-132 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM finding and determining that the Zoning Map referred
to in Title 18 of the Anaheim Municipal Code should be amended and that the
boundaries of certain zones should be changed (Reclassification No. 2008-
00216).
RESOLUTION NO. 2008-133 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM granting Conditional Use Permit No. 2008-05309.
RESOLUTION NO. 2008-134 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM finding and determining that the Public Convenience
or Necessity would be served by the issuance of an alcoholic beverage control
license for the premises located at 770 and 752 North East Street, Anaheim,
California.
C.J. Amstrup, Planning Department, reported this applicant was proposing to construct
a service station with a self service car wash and a convenience store with sales of
beer and wine for off premise consumption on the southeast comer of East Street and
La Palma Avenue. He stated On April 26, 2008, the Planning Commission
recommended Council approve the project which included an amendment to General
Plan Land Use Element to redesignate the property from low medium density
residential to the general commercial land use designation. He added the proposed
commercial designation would be compatible with the 7-Eleven property across East
Street and be consistent with the goals of the land use element of the general plan to
encourage commercial uses along major corridors. Additionally, this property was
previously developed as a service station and three of the four corners of this
intersection had historically been non-residential uses. Staff recommended approval of
this request as the site was suitable for commercial development and the amendment
continued the general plan goals.
He remarked that a conditional use permit was required to permit the service station,
self-service car wash and convenience market with off premise sales of beer and wine
noting that the proposed plans complied with code requirements and the property had
been appropriately designed to provide the required number of parking spaces,
vehicular circulation and would minimize impacts to adjacent residential uses. The
applicant also requested a determination of public convenience or necessity to permit
the sale of beer and wine for off premise consumption with Mr. Amstrup pointing out the
determination was required as this property was located within a reporting district with a
crime rate of 107 percent above City average. He added while the Police Department
was initially concerned about the proximity of the convenience store to the pre-school
and multi-family residences, the conditions of approval added by the Planning
Commission requiring additional trees along the property line along with an eight foot
high block wall separating the uses addressed their concerns.
City Council Minutes of July 15, 2008
Page 17 of 22
Mr. Amstrup explained the Planning Commission decision had been appealed to the
Council by the business license holder for the 7-Eleven across the street from the
property stating there were too many alcohol licenses in this area and that this project
would bring more traffic, noise and loitering to the area. He reported the appellant's
letter also stated there was a petition of 300 signatures collected in opposition to this
proposal and that the owner of the adjacent pre-school was opposed to the project;
however the City had received no petition or any correspondence opposing the project
from the preschool owner. He indicated there was a change to the types of trees to be
planted along the property line adjacent to the residential uses to evergreen trees and
to increase their numbers to twice that required by code and that they be a minimum of
10 feet at the time of planting. He also reported the number of alcohol licenses for off-
site sale of beer and wine for this area was four and if approved, this license would
make the fourth.
Leon Alexander of Briggs Alexander, spoke on behalf of the owner stating the project
would help revitalize that corner of East Street and La Palma which had been vacant
since 1998. He explained the site contained a service station from 1961 to 1998 and
when the applicant purchased the property in 1998, he completed an environmental
cleanup of the property and was now requesting to build a high tech Chevron
ultramodern service station with convenience store along with a car wash. The project
was on a one acre parcel and went through a rigorous plan check in terms of security
and protection. He stated the applicant would also be dedicating some property for the
widening of East Street. He added that the appeal was not directed to the service
station use but to the determination of public convenience and necessity to allow beer
and wine sales for off-site use.
Mayor Pringle opened the public hearing.
Frank Juevara, resident in the area, objected to the project for a variety of traffic and
safety reasons, stating a Planning Commissioner as applicant to this project had an
unfair advantage.
Malik Delsalmon, an owner of the 7-Eleven on 1201 East Santa Ana Street opposed the
sale of beer and wine stating it would contribute to criminal activity.
Mr. Raj, franchise owner of the 7-Eleven located on East street and La Palma, opposed
the project remarking it was a high crime area and the sale of beer and wine at another
establishment would only add to the crime activity in the area.
Jody Gajh, another 7-Eleven franchise owner, opposed the sale of beer and wine at this
location due to the high crime rate in the area. He pointed out the service station would
be very profitable without an alcohol license.
With no other public comments offered, Mayor Pringle closed the hearing.
Council Member Kring asked if the parking followed code and Mr. Amstrup responded
the parking was consistent with the use.
Council Member Galloway asked how the project would mitigate any impacts to the
nearby preschool. Mr. Alexander remarked there had been no opposition from the pre-
school and since the children were under parental supervision during delivery and
City Council Minutes of July 15, 2008
Page 18 of 22
pickup, there should be no impact. He added the station would have high security and
lighting and be a benefit to the neighborhood. Council Member Galloway asked if the
owner had a track record with this type of business. Mr. Alexander responded the
owner had two service stations in Orange County, which also sold beer and wine, and
was successful with those operations, receiving no Alcoholic Beverage Control
violations. Council Member Hernandez requested the hours of operation; Mr. Amstrup
indicated the store would close at 11 P.M. and open again at 5:00 A.M. consistent with
the hours of operation with the 7-Eleven across the street.
Council Member Sidhu requested a clearer understanding of what 107 percent above
crime rate meant. Chief John Welter addressed that question, stating a formula was
used to look at the crime rate and determine whether it was consistent with other areas
of similar size and use. Council Member Sidhu asked why the Police Department
recommended approval after initially recommending denial of the request for beer and
wine. Chief Welter stated that conditions placed on the sale of alcohol, the closing of
the store at 11 o'clock and the landscaping buffer and block wall contributed to their
revised recommendation.
Council Member Hernandez asked if Chief Welter found there was an increase in
alcohol related crimes when a new business such as this operation opened. Chief
Welter replied there were many variables that came into play and that he could not say
in general there was an increase in crime. He added that based on the type of
operation; there could actually be a decrease. Council Member Hernandez added that
any Planning Commissioner or other board or commission member had the right to own
a business in the City.
Mayor Pringle commented that this project would be a tremendous improvement to the
community and that it would serve the neighborhood well. He added he concurred in
that there was crime in this area but that it would not be caused by a business that
cleaned up a corner that had been vacant for twenty years. He emphasized with
neighbors, businesses and the Police Department working together, the crime issue
could be addressed. Council Member Sidhu also voiced his approval for the project,
stating all of the objections raised had been answered and he could find no reason to
deny this project.
Council Member Hernandez moved to approve the Negative Declaration, to approve
RESOLUTION NO. 2008-131 OF THE CITY OF ANAHEIM approving General Plan
Amendment No. 2008 00464, pertaining to the Land Use Element; to approve
RESOLUTION NO. 2008-132 OF THE CITY OF ANAHEIM finding and determining that
the Zoning Map referred to in Title 18 of the Anaheim Municipal Code should be
amended and that the boundaries of certain zones should be changed (Reclassification
No. 2008-00216); to approve RESOLUTION NO. 2008-133 OF THE CITY OF
ANAHEIM granting Conditional Use Permit No. 2008-05309; and to RESOLUTION NO.
2008-134 OF THE CITY OF ANAHEIM finding and determining that the Public
Convenience or Necessity would be served by the issuance of an alcoholic beverage
control license for the premises located at 770 and 752 North East Street, Anaheim,
California; seconded by Council Member Kring. Roll call vote: Ayes - 5; Mayor Pringle,
Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
City Council Minutes of July 15, 2008
Page 19 of 22
40. CEQA CATEGORICAL EXEMPTION, CLASS 1
C22o CONDITIONAL USE PERMiT N0. 2008-05297
OWNER: Mari-Ann Lewis Trust, GELB Enterprises, P.O. Box 8370, Van Nuys.
CA 91409
APPLICANT: Jian Yi, 841 Fairview Avenue #J, Arcadia, CA 91007
LOCATION: 2424 West Ball Road: Property is approximately 2.5 acres,
having a frontage of 440 feet on the south side of Ball Road approximately 205
feet west of the centerline of Gilbert Street.
Request to permit and retain a massage business.
ACTION TAKEN BY THE PLANNING COMMISSION:
Motion to Approve; VOTE: 2-4. Motion failed. (Chairman Buffa and
Commissioner Eastman voted yes; Commissioner Karaki absent)
Denied -CEQA Categorical Exemption, Class 11
Denied -Conditional Use Permit No. 2008-05297 (PC2008-57)
(Planning Commission Meeting of May 12, 2008)
(Appealed by applicant on June 1, 2008)
MOTION: PIK Deny CEQA Categorical Exemption, Class 1
RESOLUTION NO. 2008-135 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM denying Conditional Use Permit No. 2008-05297.
C.J. Amstrup, Planning Department, reported on May 12, 2008, the Planning
Commission had denied an application to retain a massage business at a commercial
center located at 2424 West Ball Road concluding the continued operation of the
business would adversely impact the surrounding neighborhoods. That decision had
been appealed to Council by the applicant. Mr. Amstrup informed Council that the
business had been established in August 2007 without obtaining a conditional use
permit, a massage operator's permit or business license. Shortly after the business
opened, Code Enforcement staff issued a notice requiring the business operator to
obtain proper City approvals and as the operator failed to obtain the required permits,
the citation went to court. The court then placed the business owner on probation for
not complying with the City's regulations and in addition, the owner received two
additional citations after being placed on probation. In February 2008, the Anaheim
Police Department arrested the business owner for unlawful sexual activities on this
site.
The business owner subsequently transferred this application to the current applicant,
Jiang Yi, after her arrest in February. Mr. Yi, the current applicant, owns a massage
business in the city of Orange and Orange staff stated there had been no recorded
violations or illegal activities at that location.
Mr. Amstrup explained the establishment and operation of a massage use required two
City approvals, the first being a conditional use permit which determined the
appropriateness of the land use at the proposed location. Conditions of approval were
then applied to insure the operation would not adversely impact the adjacent uses. The
second requirement was approval of a massage operator's permit which determined the
operator's suitability and ability to conduct a business in a legal and acceptable fashion.
He indicated a comprehensive background check was conducted and the applicant had
to pass an exam pertaining to the code requirements to insure compliance with an
understanding of City business requirements for massage uses. He added the permit
City Council Minutes of July 15, 2008
Page 20 of 22
could be denied if the person owning the business or employees had been convicted of
certain criminal activities. Based on the distinction of these two required permits, he
stated, planning staff recommended approval of the conditional use permit, however the
Planning Commission expressed concern about secondary impacts of the uses to
Magnolia High School and residential uses across Ball Road and Gilbert Street. Due to
the proximity of the business to the school and residences, the Commission believed it
was important that this type of business comply with City requirements and since the
prior business owner received three code enforcement citations prior to submitting this
application, the Commission concluded that it had been reasonably demonstrated that
this type of use could not be operated at this location without an unacceptable risk to
nearby uses. He ended his presentation remarking that staff was now recommending
Council uphold Planning Commission's denial.
Council Member Hernandez asked why Planning staff had changed their
recommendation. Mr. Amstrup responded that sufficient concerns were raised during
the hearing about the location of the massage operation to the high school and adjacent
residential uses and that staff revisited its analysis about the appropriateness of that
location for this conditional use permit and changed its recommendation to uphold the
Planning Commission's denial of the operation.
Mayor Pringle remarked that he did not like the fact that a massage business must go
through a conditional use permit process before it becomes licensed. He believed the
reverse should be done, i.e. the operation should be licensed first and then an
application for conditional use permit could be made. He asked what the relationship
was between this applicant and the former business owner. Mr. Amstrup replied that the
new operator has assumed the previous business owner's application for a conditional
use permit. There were no leases or utilities bills transferred as of yet, however it was
the applicant's intention to assume those if he was successful in this process.
Jiani Yi, applicant, indicated he took over this application at the request of the former
owner and that he pays on a month to month basis and would sign a new lease once the
application was approved. Mayor Pringle asked Mr. Yi why this particular location was
good for his business given the history of the previous owner and the location next to a
high school. Mr. Yi indicated he was told by Police Department staff that this location
was okay for his business and felt the school fence provided a physical barrier between
his business and would not impact the school.
Mayor Pringle opened the public hearing.
Esther Wallace stated with the history of illegal massage parlors in this area and the
knowledge of how much work and time was needed by community members and the
police to establish a case against an operator, the conditional use permit should be
denied. She added that should this application be approved, the community would have
the sense that the same illegal operation had been allowed to continue.
With no other comments offered, Mayor Pringle closed the hearing.
Council Member Hernandez, after reading the Planning Commission minutes and
testimony offered by Mr. Yi, believed there was a relationship between the previous
owner and Mr. Yi, and that this transfer of business appeared to be a way to get around
the former problems and he was not comfortable approving this application.
City Council Minutes of July 15, 2008
Page 21 of 22
Mayor Pringle remarked that massage establishments had to prove their legitimacy and
be beyond reproach and demonstrate confidence to the community and he questioned
Mr. Yi's actions and those of the previous owner. He added Mr. Yi should get a high
level of support in any location he chooses to do business and not build on someone
else's relationship to foster good will when that person had already been arrested for
criminal activity in the City and moved to support Planning Commission denial of CEQA
Categorical Exemption, Class I and to approve Resolution No. 2008-135 of the City of
Anaheim denying Conditional Use Permit No. 2008-05297, seconded by Council
Member Kring. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway,
Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
Report on Closed Session Actions:
41. Possible action on Council appointees' salaries.
D114
Mayor Pringle reported the City Council unanimously rated the performance of City
Manager, Dave Morgan, City Attorney, Jack White, City Treasurer, Hank Stern and City
Clerk, Linda Andal, as outstanding. Mayor Pringle then recommended a 3.5 percent
salary adjustment for the above positions and moved to approve those increases,
seconded by Council Member Hernandez. Roll call vote: Ayes - 5; Mayor Pringle,
Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
Council Communications:
Council Member Hernandez commended the Canyon Hills Community Council on the
success of their 4th of July festival and reported on his meeting with Paul Beckman and
David Wade from the East Anaheim Neighborhood Council.
Council Member Galloway reported on her meeting with members of the Anaheim
Community Engagement organization.
Council Member Kring thanked the Canyon Hills Community Council, Anaheim Chamber
of Commerce and volunteers for the success of the 4th of July festival and commended
City Treasurer, Hank Stern for receiving Standard and Poor's AAA credit rating for the
Anaheim treasury investment pool.
Council Member Sidhu commented on the student exchange visit to Anaheim's Sister
City Mito, Japan and the arrival of Mito, Japan delegates. He also announced the
Downtown Anaheim Association's live concert to be held on July 18 and the Ringling
Bros. and Barnum & Bailey Circus scheduled for July 23~d to August 3~d at the Honda
Center.
Mayor Pringle recommended a member of the City Council be selected as designated
member of the Anaheim Sister City Association. He commented on SB 974 re railway
import of goods from ports and its positive impact on Anaheim and other southern
California communities with container fees going towards infrastructure improvements.
In addition, he requested school board members be invited to Council meetings to
update the community on district activities in an effort to bridge communications between
the school districts and the City.
City Council Minutes of July 15, 2008
Page 22 of 22
Adjournment: At 9:29 P.M., with no further business, Mayor Pringle adjourned the
July 15, 2008 Council meeting.
Respe ly submitted,
Linda N. Andal, CMC
City Cierk