2009/03/31ANAHEIM CIN COUNCIL
REGULAR ADJOURNED MEETING
OF MARCH 31, 2009
The regular meeting of March 31, 2009 was called to order at 3:00 P.M. and adjourned to
4:00 P.M. for lack of a quorum. Mayor Curt Pringle called the regular adjourned meeting of
March 31, 2009 to order at 4:08 P.M. in the Chambers of Anaheim City Hall located at 200
South Anaheim Boulevard. A copy of the agenda was posted on March 27, 2009 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, Acting City Attorney Cristina Talley, and City
Clerk Linda Andal.
Council convened to closed session for the following items:
CLOSED SESSION ITEMS:
1. PUBLIC EMPLOYMENT
Title: City Manager, City Attorney
2. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
(Subdivision (a) of Section 54956.9 of the Government Code)
Name of case: Priceline.com Inc. et al. v. City of Anaheim et al., Orange County
Superior Court, Case No. 30-2009 00244120 and related cases
At 5:30 P.M., Mayor Pringle and City Council returned from closed session to consider the
remainder of the agenda.
Invocation: Dr. Art Aragon, Heritage Fellowship
Flaq Salute: Mayor Pro Tem Bob Hernandez
Presentations: Proclaiming April 19-25, 2009, as Tree Appreciation Week
Terry Lowe, Community Services Director, acknowledged the proclamation and explained
the City's efforts and continuing commitment to trees in the community. He pointed out Item
No. 6 was an action to designate the first in a series of trees as historic landmarks, indicating
that this tree would eventually be incorporated into a historic park to be built around the
Woelke Stoffel victorian house.
Presentation of the Tree City USA Award and Tree Line USA to the City
of Anaheim
Brandon Rogers, California Department of Forestry and Fire Protection, congratulated the
City on receiving two awards, one for meeting requirements of quality tree care for public and
City Council Minutes of March 31, 2009
Page 2 of 18
private utilities across the nation and the other for its ongoing commitment to an urban forest
program.
Acceptance of Other Recognitions (To be presented at a later date):
Recognizing Joel Fick on his retirement from the City of Anaheim
At 5:45 P.M., Mayor Pringle called to order the Anaheim Housing Authority (in joint session
with the City Council)
ADDITIONS/DELETIONS TO THE AGENDA: With the consent of Council, Item No. 36 was
trailed to be considered after public hearing Item No. 41, a complementary measure related
to the same property.
PUBLIC COMMENTS {all agenda items except public hearings):
William Fitzgerald, resident, objected to the proposed increase in water rates complaining
that increased costs related to contamination of water wells by Disneyland fireworks
pollution.
Linda Sandoval, resident, reported the St. Boniface local community organization held a
forum to discuss the Federal stimulus plan and its effect on the City of Anaheim and that
attendees recommended uses for those dollars.
Jim Oregel, resident, remarked during the St. Boniface community meeting, there was
discussion on jobs to be created as part of the American Recovery Investment Act. He
pointed out the expansion of the Anaheim Convention Center had been identified as
receiving stimulus funds and would create 6,000 jobs. He encouraged Council to insure
Anaheim residents were considered when the hiring process began for that development.
Mayor Pringle remarked that Anaheim, unlike many other cities, had put together shovel-
ready projects to be submitted for the economic stimulus funds as opposed to on-going
services. He stated the majority of those federal funds had been allocated to states with the
balance going to local transportation agencies rather than to municipalities for specific
projects. To make this process clearer to the community, Mayor Pringle recommended
information be placed on the City's website to show how the Economic Recovery funds
were being disseminated, what portion had been allocated to Anaheim and if there were any
restrictions on how those dollars could be spent. He added that none of the City projects
submitted in January were funded, although some local newspapers had incorrectly
indicated they were.
Jaime Valdez, resident and participant in the St. Boniface community organization,
encouraged more affordable housing in the city.
Jonas Serrano, resident, announced the St. Boniface community had a common desire to
do what's best for Anaheim and pointed to other cities, such as San Diego and Santa Ana,
which had allowed community forums to provide input as to how funding would be spent.
Carolyn Carpenter, Anaheim Family YMCA, announced their annual Good Friday breakfast
would be held on April 10~' at the Marriott and urged the community to attend this
inspirational event.
City Council Minutes of March 31, 2009
Page 3 of 18
Kevin Symmes, expressed concern over the loss of Fire Engine 21, which was being retired
this year, stating the City would lose the flexibility this engine offered to the fire fleet.
Mr. Kamar, United Here Local 11, offered questions and concerns related to the Lake
Development hotel and mixed use project at the corner of Katella Avenue and Harbor
Boulevard. He expressed his hope that Lake Development Hotel would provide well-paying
jobs to its hotel industry workers, especially as public funds were being used toward its
development.
Ed Fakari, former business owner, encouraged the City to help small business owners
succeed.
CONSENT CALENDAR: Council Member Sidhu removed Item No's 8 and 35 from the
consent calendar for further discussion. Council Member Kring waived reading in full of all
ordinances and resolutions on the balance of the consent calendar and moved to adopt 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 Galloway. Roll Call Vote: Ayes - 5: Mayor Pringle and Council Members:
Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
3. Receive and file minutes of the Senior Citizens Commission meeting of August, 14,
B105 2008, September 11, 2008, October 9, 2008, November 13, 2008, December 11,
2008, January 8, 2009 and February 12, 2009; Community Services Board meeting
of September 11, 2008, September 18, 2008, October 9, 2008 and January 8, 2009;
Public Library Board meeting of February 9, 2009 and Budget Advisory Commission
meeting of February 18, 2009.
4. Approve the Investment Portfolio Report for February 2009.
D117
5. 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 local emergency
exists.
6. Designate an existing tree located at 400 West Street as a Landmark Tree.
D150
7. Authorize the Planning Director to accept a donation from Anaheim Beautiful, in the
D159 amount of $1000, for the Graffiti Reward Program.
9. Accept the lowest responsive bid of West-Cite Supply Company, in an amount not to
D175 exceed $152,596 (including tax), for lamps and ballasts for the Convention Center for
a period of one year, with up to four one-year optional renewals and authorize the
Purchasing Agent to exercise the renewal options, in accordance with Bid #7227.
10. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the
D180 Purchasing Agent to issue a purchase order to Kelman North America, Inc., in the
amount of $39,328.75 (plus applicable freight costs), for the purchase of a portable
dissolved gas analyzer for the Public Utilities Department.
City Council Minutes of March 31, 2009
Page 4 of 18
11. Ratify the master agreement issued to Southern Counties Oil Company, in an amount
n18o not to exceed $2,220,000, for the as-needed purchase of petroleum fuel for Public
Works, Fleet Services Division, for aten-month period with four one-year optional
renewals and authorize the Purchasing Agent to exercise the renewal options, in
accordance with Bid # 7190.
12. Approve an Agreement for Acquisition of Real Property with Jodi R. Cebolski, in the
AGR-5639 acquisition amount of $1,144.44, for property located at 1772 South Dallas Drive, Unit
B, for the Katella Avenue Smart Street Project -Humor Drive to Jean Street (R/V1!
ACQ2005-00247).
13. Approve an Agreement fcsr Acquisition of Real Property with Jamie Castaneda and
AGR-5640 Leticia Castaneda, in the acquisition amount of $33,044.44, for property located at
1776 South Dallas Drive, Unit B, for the Katella Avenue Smart Street Project -Humor
Drive to Jean Street (R/V1/ ACQ2005-00247).
14. Approve an Agreement for Acquisition of Real Property with Jose Rumbaut and
AGR-5641 .Raquel Rumbaut, Trustees, in the acquisition amount of $32,894.44, for property
located at 1776 South Dallas Drive, Unit F, for the Katella Avenue Smart Street
Project -Humor Drive to Jean Street (RNV ACQ2005-00247).
15. Approve an Agreement for Acquisition of Real Property with John H. Kaneshiro Jr.
AGR-5642 and Joan F. Kaneshiro, in the acquisition amount of $35,344.44, for property located
at 1776 South Dallas Drive, Unit G, for the Katella Avenue Smart Street Project -
Humor Drive to Jean Street (R/W ACQ2005-00247).
16. Approve an Agreement for Right-of-Entry with Dutch Club Avio for property located at
AGR-5643 1557 West Katella Avenue for the Katella Avenue Smart Street Project -Humor Drive
to Jean Street.
17. Approve the First Amendment to Professional Services Agreement with KTGY Group,
AGR-5089.III.11f1C., in an amount not to exceed $198,500, for urban design services related to the
Anaheim Regional Transportation Intermodal Center (ARTIC) project.
18. Approve the First Amendment to Agreement with Transportation Studies, Inc., in an
AGR-5644.1 amount not to exceed $125,000, for citywide traffic counts
19. Approve the Temporary Construction Easement with Automobile Club of Southern
AGR-5646 California for property located at 5500 East Santa Ana Canyon Road for the Santa
Ana Canyon Road Street improvements, from Lakeview Avenue to Imperial Highway.
20. Approve Cooperative Agreement No. C-9-0306 with the Orange County
4183.A Transportation Authority relating to the roles and responsibilities for the next stage of
development for Anaheim's Go Local Step One Mixed-Flow Bus/Shuttle concepts.
21. Approve the Sixth Amendment to an agreement with the Anaheim/Orange County
AGR-2990.6 Visitor & Convention Bureau (VCB) defining the annual payment to be made by the
VCB to the City as an offset to the National Association of Music Merchants rental.
City Council Minutes of March 31, 2009
Page 5 of 18
22. Approve and authorize the Public Utilities General Manager to execute Amendment
AGR-4862.1 No. 1 to the General Agreement with eMeter Corporation to correct or change
references in the original agreement which includes services and licensing of
software products included as part of the Meter Data Management System.
23. Approve minutes of the Council meeting of March 10, 2009 and special meeting of
March 24, 2009.
24. RESOLUTION NO. 2009-045 A RESOLUTION OF THE CITY COUNCIL OF THE
D175 CITY OF ANAHEIM authorizing the destruction of certain City records more than two
years old (Public Works}.
25. RESOLUTION NO. 2009-046 A RESOLUTION OF THE CITY COUNCIL OF THE
D154 CITY OF ANAHEIM authorizing the destruction of certain City records more than two
years old (Human Resources).
26. RESOLUTION NO. 2009-047 A RESOLUTION OF THE CITY COUNCIL OF THE
P124 CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain
real properties or interests therein (Deed Nos. 11241-11244, 1 1 247-1 1 276 and
11279).
27. RESOLUTION NO. 2009-048 A RESOLUTION OF THE CITY COUNCIL OF THE
P124 CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain
real properties or interests therein (City Deed Nos. 11277 and 11278).
28. RESOLUTION NO. 2009-049 A RESOLUTION OF THE CITY COUNCIL OF THE
P110 CITY OF ANAHEIM vacating a portion of five foot public utility easement located upon
parcel number 082-341-22 pursuant to California Streets and Highway Code Section
8330, et seq. -Summary Vacation (Abandonment No. ABA 2009-00194).
29. RESOLUTION NO. 2009-050 A RESOLUTION OF THE CITY COUNCIL OF THE
D154.6 CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms
and conditions of employment for employees in classifications assigned to the
Service Employees International Union, Local 1877, and the City of Anaheim.
30. ORDINANCE NO. 6133 (ADOPTION) AN ORDINANCE OF THE CITY OF
C280 ANAHEIM amending Zoning Map referred to in Title 18 of the Anaheim Municipal
Code relating to Zoning (Reclassification No. 2008-00225; 1170 North La Palma Park
Way; Introduced at Council meeting of March 10, 2009, Item No. 17).
31. ORDINANCE NO. 6134 (ADOPTION) AN ORDINANCE OF THE CITY OF
C280 ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal
Code relating to Zoning (Reclassification No. 2009-00227; 2748 West Lincoln
Avenue; Introduced at Council meeting of March 10, 2009, Item No. 18).
32. ORDINANCE NO. 6135 (INTRODUCTION} AN ORDINANCE OF THE CITY OF
C280 ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal
Code relating to Zoning (Reclassification No. 2008-00224; 1735-1739 West Lincoln
Avenue).
City Council Minutes of March 31, 2009
Page 6 of 18
33. ORDINANCE NO. 6136 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
C280 ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal
Code relating to Zoning (Reclassification No. 2008-00226; 1001 North Mayflower
Street).
34. ORDINANCE NO. 6137 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
C280 ANAHEIM amending various sections of Title 18 of the Anaheim Municipal Code
(Zoning Code Amendment No. 2008-00066).
END OF CONSENT CALENDAR:
8. Approve the proposed policy guidelines for the implementation of the U.S.
D155 Department of Housing and Urban Development Neighborhood Stabilization
Program.
Elisa Stipkovich, Community Development Director, remarked that under the Federal
Housing and Economic Recovery Act of 2008, the City had received $2,653,436 in
Community Development Block Grant (CDBG) funds to provide assistance in the
redevelopment of foreclosed and abandoned residential properties, stabilize neighborhoods
impacted by such properties, provide long-term affordability and increase sustainability and
attractiveness of housing and neighborhoods.
Council Member Sidhu highlighted this effort which would help from 20 to 25 potential
homeowners in buying affordable homes. Ms. Stipkovich remarked information for any
interested person could be found on the City's website, stating the first step was to get on the
list for this program.
Council Member Sidhu moved to approve Item No. 8, seconded by Council Member
Hernandez. Roll Call Vote: Ayes - 5: Mayor Pringle and Council Members: Galloway,
Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
35. ORDINANCE NO. 6138 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
M142 ANAHEIM amending and renaming Anaheim Municipal Code, Chapter 10.18 by
adopting water reduction provisions applicable to reducing water usage.
Marcie Edwards, Public Utilities General Manager, reported this item would modify the
existing city Ordinance involving water, specifically addressing outdated language and
potentially ineffective mandatory water conservation measures and associated penalties, and
as a replacement establish a base approach to possible water shortages. She emphasized
the changes did not include any revisions to water rates, however, the staff report was
intended to give an advance understanding of how temporary water rates could be
constructed should the Metropolitan Water District (MWD) ration water to Anaheim later this
year. She pointed out if MWD rationed water, it would be done by charging Anaheim three to
five times the current price of water for any water used over the allotted amount. This would
mean Anaheim could be penalized significantly if unable to live within the allotment amount
and since the Utility operated in snot-for-profit fashion, the City would need a means by
which to allocate any financial penalties that MWD could assign. At present, she indicated
MWD was hovering between declaring a 10-20 percent regional shortage, and was still
awaiting rain levels and snow pack results through the end of April before making any final
decision. Staff's recommendation, if rationing were to occur later this year, would be to
establish a temporary conservation rate consisting of three tiers and much like the three tiers
City Council Minutes of March 31, 2009
Page 7 of 18
of electric rates; the cost would increase with more water usage. This method, Ms. Edwards,
reported was intended to provide a greater price signal to outdoor water users which, she
explained were those best able to reduce water use. She ended her presentation stating if
Anaheim customers could reduce their water use under the MWD allocation, no penalties
would occur. She explained if water rationing did happen, this water reduction rate would be
a temporary fix which would be brought to Council in late May/June time frame. Over the
longer term, she added, the Utility would likely recommend a tiered rate structure with water
budgets to allow for more specific tiers. The specific tiers would correspond to the amount of
water that is more specific to certain customers, but for now such was beyond the capability
of the current billing system, Ms. Edwards reported.
Council Member Sidhu asked for an update on the water shortages. Ms. Edwards
responded that currently MWD was approximately 75 percent short and would declare a
regional shortage in late April/May. The scope of that shortage varied between 10-20
percent; and since this would affect all of southern California, she indicated it would not be
surprising for MWD to start with a smaller percentage. She added if it were to rain
significantly or heavy snow pack happened, this shortage might be put off until next year.
She added reserves due to this three year drought were down by more than 50 percent.
Council Member Sidhu asked for more details on the proposed tiered rates. Ms. Edwards
stated if MWD rationed water and assigned penalties, water costs could be $2.5 million
more. Staff was recommending three rating tiers. Less than 30 percent of housing stock in
Anaheim used about 6,700 gallons per month and staff recommended those rates not be
changed. Another 55 percent of customers used between 6,700 gallons and 18,500 gallons
per month and their rates would adjust between one to two percent. The top 15 percent of
customers used 26 percent of the water, so for any customer over 37,000 gallons per month,
there would be no charge for the first 6,700, the same increase for the middle group and an
additional percentage for that top use of over 35,000 gallons per month. Ms. Edwards
pointed out that currently Anaheim was in the lowest percentile of all the rates in southern
California and to the extent rates increased, the increases would happen to all users.
Council Member Hernandez remarked that the Broadmoor Northridge Homeowners
Association (HOA) addressed water conservation and could be a model as to how to address
water shortages. Ms. Edwards remarked this HOA had dropped their water consumption by
21 percent, having saved over 8 million gallons of water through irrigation controllers. She
added the City would conduct a variety of water audits, and had incentive programs in place
and would be proactively involved in working with HOA's, the biggest users of water in the
City.
Mayor Pringle referencing a chart made available to Council, stated in 2008, 58 percent of
Anaheim's water came from groundwater tables and 28 percent from MWD purchases. He
asked about well closures and potential contamination. Ms. Edwards stated the Utility met all
federal guidelines and monitored all wells. She remarked that contamination or plumes
migrated through the aquifer and if any of the wells were within 75 to 80 percent of the
contamination limits, the well would be shut down and testing would continue. She indicated
that frequently plumes migrate by. She further indicated one well that was within 80 percent
of the perchlorate limit in the west area of town had been shut down. With regard to
groundwater, she stated the groundwater management district established how much water
Anaheim could pump each year and that cost would increase while the percentage the Utility
was allowed to pump could potentially decrease which would make the City more dependent
on MWD water.
City Council Minutes of March 31, 2009
Page 8 of 18
Council Member Sidhu moved to introduce ORDINANCE NO. 6138 AN ORDINANCE OF
THE CITY OF ANAHEIM amending and renaming Anaheim Municipal Code, Chapter 10.18
by adopting water reduction provisions applicable to reducing water usage, seconded by
Council Member Hernandez. Roll Call Vote: Ayes - 5: Mayor Pringle and Council Members:
Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
37. Nominate and [re]appoint a Council Member to the Southern California Association of
0144 Governments, for a two year term, who will automatically serve as the city's
representative on the Orange County Council of Governments (OCCOG), and
appoint an alternate to the OCCOG_
SCAG/OCCOG:
(RE) APPOINTMENT: Bob Hernandez
(currently held by Mayor Pro Tem Hernandez}
OCCOG ALTERNATE: Lucille Kring
(currently held by Council Member Kring)
Mayor Pringle moved to reappoint Mayor Pro Tem Hernandez and Council Member Kring,
seconded by Council Member Hernandez. Both council members were appointed
unanimously.
38. Nominate and appoint an alternate member to the Santa Ana River Flood Protection
0144 Agency.
Alternate: Mark Vukoievic
Council Member Hernandez nominated City Engineer Mark Vukojevic as the alternate
member to the Santa Ana River Flood Protection Agency, seconded by Mayor Pringle. Mr.
Vukojevic was unanimously approved.
PUBLIC HEARINGS:
39. -This is a public hearing to amend the taxicab franchises for California Yellow Cab and
F130.2 Yellow Cab of Greater Orange County, Inc.
ORDINANCE NO. 6139 (INTRODUCTION) OF AN ORDINANCE OF THE CITY
OF ANAHEIM amending the CABCO Inc. dba California Yellow Cab to extend the
term of the franchise.
ORDINANCE NO. 6140 (INTRODUCTION) OF AN ORDINANCE OF THE CITY
OF ANAHEIM amending the non-exclusive franchise to Yellow Cab Company of the
Greater Orange County, Inc., to increase the number of taxicabs which may be
operated in the City of Anaheim and extend the term of the franchise.
Sheri Vander Dussen, Planning Director, reported Council had earlier directed staff to revise
the ordinance creating taxicab franchises so that all three of the current franchises would
expire at the same time. In addition, Council directed the allocation of 25 additional cabs to
Yellow Cab of Greater Orange County. She indicated the two ordinances before Council
City Council Minutes of March 31, 2009
Page 9 of 18
would amend the current franchises for California Yellow Cab and Yellow Cab of Greater
Orange County by extending their franchises to February 14, 2012, still subject to annual
reviews to determine franchise compliance and in addition, the ordinance granting a
franchise to Yellow Cab of Greater Orange County added 25 cabs to that franchise.
Mayor Pringle opened the public hearing.
Konstantinos Roditis, 24/7 Yellow Cab, requested Council continue action on this item and to
consider 24/7 Yellow Cab for the 25 additional cab permits. He expressed his objection to
this franchise renewal remarking the City had shown bias and favoritism and violated RFP
protocol. He indicated he was one of the applicants responding to the City's RFP process
last October when two franchise holders failed to refile for their permits and the City sought
other operators. He objected to the City extending franchise terms to the three existing
taxicab holders and granting an additional 25 cab permits to Yellow Cab of Orange County
and asked that 24/7 Yellow Cab be considered for those 25 permits to allow him to operate in
the City.
Council Member Sidhu moved to approve introduce ORDINANCE NO. 6139 OF THE CITY
OF ANAHEIM amending the CABCO Inc. dba California Yellow Cab to extend the term of the
franchise and to introduce .ORDINANCE NO. 6140 OF THE CITY OF ANAHEIM amending
the non-exclusive franchise to Yellow Cab Company of the Greater Orange County, Inc., to
increase the number of taxicabs which may be operated in the City of Anaheim and extend
the term of the franchise, seconded by Council Member Kring. Roll Call Vote: Ayes - 5:
Mayor Pringle and Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0.
Motion Carried.
40. CONDITIONAL USE PERMIT NO. 2008-05359 AND
C220 REQUEST FOR DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY
N O. 2008-0004
OWNER: Kum Hee Kim and Yong Sub Kim, Thomas Liquor, 1000 West Lincoln
Avenue, Anaheim, CA 92805
LOCATION: 1000 West Lincoln Avenue: This property is approximately 0.26
acre, having a frontage of 107 feet on the south side of Lincoln Avenue and 84 feet
on the west side of Illinois Street at the southwest corner of Lincoln Avenue and
Illinois Street.
Request to authorize the exchange and upgrade of the ABC license for an existing
legal nonconforming convenience market from a Type 20 (off-sale beer and wine)
license to a Type 21 (off-sale General) license.
Environmental Determination: The proposed action is Categorically Exempt from the
requirement to prepare additional environmental documentation per California
Environmental Quality Act (CEQA) Guidelines Class 1 (Existing Facilities).
ACTION TAKEN BY THE PLANNING COMMISSION:
VOTE:7-0 Approved the following items:
CUP No. 2008-05359 (PC2009-008)
Determination of Public Convenience or Necessity No. 2008-00048 (PC2008-009)
(Planning Commission meeting of January 21, 2009)
(Appealed by applicant)
RESOLUTION NO. 2009-051 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving Conditional Use Permit No. 2008-05359.
City Council Minutes of March 31, 2009
Page 10 of 18
RESOLUTION NO. 2009-052 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 1000 West Lincoln Avenue, Anaheim, California.
Sheri Vander Dussen, Planning Director, reported Thomas Liquor was an existing
convenience store located at the southwest corner of Lincoln Avenue and Illinois Street,
across from Anaheim High School. She explained the store presently had a license to sell
beer and wine and in January, the Planning Commission approved the applicant's request to
exchange and upgrade the existing liquor license to allow the store to sell a full range of
alcoholic beverages. The applicant then appealed the Planning Commission decision to the
Council due to the inclusion of two conditions of approval restricting the sale of individual
containers with beer and wine. She noted the business currently sold individual containers
and did not want to lose the privilege as it upgraded its liquor license. She remarked since
August of 1998, all off-sale licenses included conditions of approval restricting the sale of
single containers as the City began to oppose these conditions due to problems that
occurred at business locations that sold these containers. These problems included
panhandling for cash to buy liquor, loitering, public drinking and other problems at or near
sites. Thomas Liquor, she explained, was established prior to the requirement for a
conditional use permit and did not have a restriction on the sale of singles. She indicated the
Police Department reviewed its records and determined there were no calls for service for
the entire year, even though Thomas Liquor had been allowed to sell single containers.
Because the sale of singles had not created any crime problems at this location, staff
recommended Council grant the appeal and approve the conditional use permit and remove
the two conditions of approval. This would allow Thomas liquor to expand the liquor license
and also continue to sell singles.
Mayor Pringle opened the public hearing.
Justin Kim, representing the owners of Thomas Liquor, stated the Kim's opened their
business in 1992, and were the original operators and property owners as well. He stated
they had invested time and money into the City and had run a respectable business for 17
years.
He explained that on January 25t'', the Planning Commission granted by a 7-0 vote the
opportunity to upgrade the conditional use permit and off-sale privileges to include full line of
alcoholic beverages, however, conditions No. 6 and 7 were placed at the recommendation
of the Police Department related to single sales. He noted this was a convenience market
and sold a full range of goods for the home and was convenient to the neighborhood. He
offered census tract statistics from the Alcohol Beverage Control Board showing this site
was a low crime area and there was an under-concentrated number of alcohol licenses in
this area. He noted a petition had been submitted to the Planning Commission with over
1,000 signatures requesting the upgrade. As a result of the imposed conditions regarding
single sales, Mr. Kim provided 185 single letters in petition form stating these customers did
not wish to lose single sale privileges they were accustomed to having at this store. Mr. Kim
ended his presentation stating as there were no calls for police service from this business
and the Department was now supportive of this appeal, the Kim's requested Council grant
the appeal.
Mayor Pringle closed the hearing thanking planning and police staff for working through this
matter and for Mr. Kim in presenting information which showed this business had been well
City Council Minutes of March 31, 2009
Page 11 of 18
operated. Council Member Sidhu moved to approve RESOLUTION NO. 2009051 OF THE
CITY OF ANAHEIM approving Conditional Use Permit No. 2008-05359 and RESOLUTION
NO. 2009-052 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 1000 West Lincoln Avenue, Anaheim, California,
seconded by Council Member Kring. Roll Call Vote: Ayes - 5: Mayor Pringle and Council
Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
41. MITIGATED NEGATIVE DECLARATION
C410 GENERAL PLAN AMENDMENT N0. 2008-00470
SPECIFIC PLAN AMENDMENT NO. 2008-00055
MISCELLANEOUS CASE NO. 2009-00297
CONDITIONAL USE PERMIT N0.2009-05403
VARIANCE NO. 2008-04761
REQUEST FOR DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY
N0.2009-00056
FINAL SITE PLAN NO. 2008-00004
REQUEST FOR COUNCIL REVIEW OF ALL ACTIONS
OWNER: Zaby's LP, 444 West Katella Avenue, Anaheim, CA 92802
AGENT: Lake Development, Anaheim, LLC, 20241 Southwest Birch Street, Suite
102, Newport Beach, CA 92660
LOCATION: Hotel Project - 1820 South Harbor Boulevard: This property is
approximately 2.45 acres, having frontages of 202 feet on the east side of Harbor
Boulevard and 540 feet on the south side of Katella Avenue.
Specific Plan Amendment No. 2008-00055 and Miscellaneous Case No. 2009-00297
apply to 1820 South Harbor Boulevard and other properties in the Anaheim Resort
Specific Plan Zone.
The applicant proposes to construct anine-story, 252-room hotel with 75,593 square
feet of supporting retail, spa, nightclub, lounges, restaurants, conference/meeting
rooms and hotel offices.
Proposed actions include the following:
Environmental Determination: A Mitigated Negative. Declaration has been
prepared to evaluate the potential environmental impacts of this project in
accordance with the provisions of the California Environmental Quality Act (CEQA).
General Plan Amendment No. 2008-00470 -Request to amend the text in the
General Plan Land Use Element to reflect a new density category created for the
Commercial Recreation District of the Anaheim Resort Specific Plan. The new
density category will be called "Low Medium Density (Modified)" and would
accommodate the additional square footage of accessory uses proposed with the
hotel.
Specific Plan Amendment No. 2008-00055 -Request to amend the Anaheim
Resort Specific Plan to add the "Low Medium Density (Modified)" density category,
modifications to the Central Core and Special Intersection Landscape Treatment to
allow special landscape and hardscape treatments at the corner of Harbor Boulevard
and Katella Avenue, and modifications to the sign code to allow a greater number
and larger signs than currently permitted by Code for hotels and accessory retail,
allow a changeable copy sign for a hotel when not visible from street level subject to
approval of a conditional use permit, allow murals subject to approval of a
conditional use permit and allow multi-tenant signs integrated with the building
City Council Minutes of March 31, 2009
Page 12 of 18
architecture in lieu of a freestanding monument sign subject to approval of a
conditional use permit.
Amendment to The Anaheim Resort Pubfic Realm Landscape Program
(Miscellaneous Case No. 2009-00297) -Request to amend this program to allow
special landscape treatment and sculptural urban design elements and require
special hardscape treatment within the public right-of-way at the intersection of
Harbor Boulevard and Katella Avenue;
Conditional Use Permit No. 2009-05403 -Request to permit a nightclub, health
spa, murals visible to the public right-of-way, two changeable copy signs not visible
from street level, multi-tenant signs integrated with the building architecture and
projecting signs.
Variance No. 2008-04761 -Request to allow smaller interior setbacks and fewer
parking spaces than permitted by code.
PCN2009-00056 -Request for determination of public convenience or necessity to
permit alcohol sales for a nightclub and sales of beer and wine at a retail store for
off-premises consumption.
Final Site Plan No. 2008-00004 -Request for approval of a Final Site Plan for the
development of 252-room hotel and 75,593 square feet of accessory uses.
ACTION TAKEN BY THE PLANNING COMMISSION:
Recommended City Council review of all Commission actions; Vote: 6-0
(Commissioner Faessel absent).
City Council Review of the following approved actions (Vote: 5-1-0: Commissioner
Eastman voted no and Commissioner Faessel absent):
Approved General Plan Amendment No. 2008-00470 (PC2009-035)
Approved Specific Plan Amendment No. 2008-00055 (PC2009-036)
Approved Miscellaneous Case No. 2008-00297 (PC2009-037)
Approved Conditional Use Permit No. 2009-05403 (PC2009-038)
Approved Variance No. 2008-04761 (PC2009-039)
Approved Final Site Plan No. 2008-00004, with two added conditions (PC2009-040)
Approved Request for Determination of Public Convenience or Necessity No. 2009-
00056 (PC2009-041).
(Planning Commission meeting of March 2, 2009)
MOTION: H/K Approve a Mitigated Negative Declaration
RESOLUTION NO. 2009-053 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving General Plan Amendment No. 2008-00470
pertaining to the land use element.
RESOLUTION NO. 2009-054 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving Amendment No. 13 to the Anaheim Resort
Specific Plan No. 92-2 (Specific Plan Amendment No. 2008-00055) and amending
Ordinance No. 5453 accordingly.
ORDINANCE NO. 6141 (INTRODUCTION) AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM approving Amendment No. 13 to the
Anaheim Resort Specific Plan No. 92-2 (SP92-2), amending Ordinance No. 5453, as
previously amended, and amending zoning and development standards set forth in
Chapter 18.116 of Title 18 of the Anaheim Municipal Code.
City Council Minutes of March 31, 2009
Page 13 of 18
RESOLUTION NO. 2009-055 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving Amendment No. 4 to the Anaheim Resort Public
Realm Landscape Program (Miscellaneous Case No. 2009-00297).
RESOLUTION NO. 2009-056 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving Conditional Use Permit No. 2009-05403.
RESOLUTION NO. 2009-057 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving Variance No. 2008-04761.
RESOLUTION NO. 2009-058 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 1820 South Harbor Boulevard, Anaheim, California
(Determination of Public Convenience or Necessity No. 2009-00056).
RESOLUTION NO. 2009-059 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving Final Site Plan No. 2008-00004.
Sheri Vander Dussen, Planning Director, announced this item was a proposal to construct a
252 room hotel with accessory commercial uses and that the Planning Commission
recommended Council approve the project on March 2"d. The 2.45 acre project site
consisted of three parcels, two of which were vacant and one improved with the 79 room
Zaby Motor Inn. The hotel proposal would include 252 rooms but also contained additional
accessory uses equivalent to an additional 126 rooms which meant the applicant's proposed
amendments to the various plans would create a new category as low medium density
modified.
Ms. Vander Dussen stated the amendment to the specific plan and landscape program
would establish special design provisions for developments at the intersection of Harbor
Boulevard and Katella Avenue with the setback along Harbor Boulevard reduced to 11 feet
where elsewhere in the Anaheim Resort, 26 feet was required. In addition, provisions would
be added to allow canopies and balconies to encroach into this required setback area and
would include a double row of Date Palm trees along Harbor Boulevard to match those on
Katella Avenue. Enhanced paving within the public areas was also proposed at all four
corners of the intersection and lighting and water features would provide an urban design
element intended to complement any adjacent development. She noted the applicant
proposed to construct a nine story, 252 room hotel with almost 76,000 square feet of
supporting retail uses, spa, nightclub lounges, restaurants, conference meeting rooms and
hotel offices. The first level of the project included ground floor retail along Katella and
Harbor and would be anchored on the corner by a 14,000 square foot drug store. The hotel
pool deck was proposed for the second level, a full service spa on the third level and a
rooftop nightclub on the 8th level.
She indicated the applicant proposed amendments to the resort sign code to accommodate a
greater number and larger signs than currently permitted for hotels and accessory retails.
These signs, she added, included changeable copy signs not visible from public right of way
and signs not currently addressed by the resort sign code such as murals and multi-tenant
signs. Ms. Vander Dussen stated staff felt the proposed modifications of the sign code were
appropriate standards for hotel and accessory uses in this area and explained in detail the
waterfall with video project to be located at the rooftop nightclub and the LED screen at the
City Council Minutes of March 31, 2009
Page 14 of 18
2"d level pool deck. She emphasized the applicant had submitted plans demonstrating
neither image would be visible from street level across Harbor or Katella. She noted staff
and the Planning Commission had recommended approval of all signs, including those
subject to a conditional use permit.
The Commission also approved a conditional use permit and a determination of public
convenience and necessity for the rooftop nightclub which staff believed was an appropriate
entertainment use in the Anaheim Resort. The Commission approved another determination
of public convenience or necessity to allow beer and wine to be sold within the retail
pharmacy and a conditional use permit for the spa. A parking variance was also approved to
provide less parking than required by code per a parking demand study which demonstrated
parking proposed on sight would be more than adequate to accommodate anticipated
demand. The Commission also approved smaller buildings setbacks along the eastern and
south side of the building since a substantial amount of land must be dedicated for a future
lane on Katella.
Ms. Vander Dussen remarked this project was envisioned as a sophisticated destination
hotel with upscale amenities, integrated with ground floor retail, restaurant uses and inviting
public spaces. Staff recommended Council approve the project as recommended by the
Planning Commission. She pointed out two conditions that should be modified or added to
the resolution approving the conditional use permit; i.e., condition 27 be modified for
consistency with the timing of the economic agreement so the condition would read "the time
period to satisfy conditions of approval shall be finro years from the date of this resolution."
The applicant proposed an additional condition to address the content of the images to be
displayed on LED and waterfall screen. This condition read "The applicant has designed the
LED screen on the pool deck and the water screen at the rooftop lounge to not be visible
from pedestrian or vehicular traffic at Katella venue/Harbor Boulevard intersections. She
noted the fact the applicant proposed this condition was significant, because the City was not
able to regulate content of images displayed on these types of signs.
Lastly, pursuant to the hotel incentive program approved by Council last April, Ms. Vander
Dussen reported the applicant requested financial incentives to help bridge the gap between
a three star hotel and a luxury hotel. The hotel was projected to generate about $30.2 million
in bed tax revenues over the first 15 years, net of the economic assistance payments. Over
a 20-year period, the total would increase to approximately $52.2 million.
Mayor Pringle was supportive of the look of the pedestrian space at the intersection and
asked how the remaining three corners would look when developed. C.J. Amstrup, Planning
Services Manager, stated the conditions of approval for the Resort require the paving
treatment be the same at all four intersections and would be upgraded at the remaining three
corners at the time they are substantially developed.
Council Member Sidhu asked for details on the required 25 foot setback. After discussion,
Council concurred 11 feet was sufficient especially with retail was on the ground floor of
buildings.
Mayor Pringle opened the public hearing. Ken Ryan, representing Lake Development,
presented highlights of the project remarking Lake Development was in full support with the
staff recommendation and conditions of approval as well as the new conditions of approval.
City Council Minutes of March 31, 2009
Page 15 of 18
The overall vision, he stated, was to provide for a premier urban resort hotel, with the best in
terms of culinary and accommodations, entertainment and retail. The proposed design was
to offer a stronger, walkable urban district through architecture, landscape and place-making
elements. Because of its location, Lake Development believed this site was a good location
for mixed visitor-serving uses with an inviting public space and some of the design principles
used were water, color, and fire to reflect high-end urban experiences. Of the 252 rooms,
there would be a wide variety of accommodations included 15 two-level sky lofts on several
floors. The 8th floor sky lounge had an indoor/outdoor water feature with a retractable roof.
The ground level retail contained an indoor/outdoor restaurant and the 11 feet of additional
setback allowed for a comfortable indoor/outdoor space. There was also an indoor/outdoor
cafe on the 2"d floor which stepped up to the pool area, spa and fireplace area with cabanas
and the view on the 8th floor looked down into the pool.
Charles Ahlers, Orange County Visitors & Convention Bureau, supported the project, stating
it would help Anaheim compete with other resort destinations such as New York and San
Diego. He added recent statistics showed Anaheim eclipsing $100,000 median income for
leisure visitors looking for upscale rooms and he believed this project would help set the bar
for convention rates in the City.
Council Member Hernandez explained some concerns had been raised that a venue such as
this would take business away from other hotels. Mr. Ahlers responded the City had 20,000
guest rooms and a smaller luxury hotel with 252 rooms would create a niche for those
looking to stay in a luxurious space and would help provide a greater array of opportunities
for visitors.
Council Member Sidhu inquired how many four star hotels were located in Anaheim. Mr.
Ahlers responded the Grand California was an upscale hotel but he was unsure if there were
others.
Michael Corfield, representing Zaby family, who was leasing property to Lake Development,
expressed their support for the concept. The property has been in the Zaby family for 45
years and they now looked forward to their relationship with Lake Development to take this
property to the next level.
Mayor Pringle closed the public hearing.
Council Member Galloway complimented the developer and architect for this design
remarking when the project was first proposed there was no discussion regarding the need
for financial assistance until a few days ago. For this reason only, she would not support a
project asking for $44 million of taxpayer subsidy that would not be paid back.
Mayor Pringle thanked the developer for bringing a product to the City which reflected
Council's vision for the resort. He added that last April when the City recognized the
economics of a high-end hotel were difficult, an incentive program was created for hotel
development above athree-star level, and the difference in tax revenues between the three
star and four star level would be given back to the hotel for a limited time period. He added
this was the first project to fall under that incentive. He provided that after completion of this
project, the City anticipated receiving $1.5 million a year in bed tax revenues. The differential
from the three star level to the four star level would be rebated back to the hotel developer
for 15 years in order to help the developer finance those luxury amenities and since the
developer needed the funds now, the net present value of those dollars generated for 15
City Council Minutes of March 31, 2009
Page 16 of 18
years (above the three star level) equated to $24 million to help this developer finance the
hotel to a four-star level. Over the first 15 years of this project, he remarked, the City would
receive $28 million in tax revenues. Every year thereafter, the City would bring in $5.5 to $6
million per year because of the value of this four star property.
Council Member Hernandez stated this was more of an investment than a subsidy and the
eventual return would be much larger than the investment and for that reason, he would
support it. Council Member Sidhu concurred, stressing this property was earning zero
dollars and the hotel development would be creating jobs and helping improve the economy.
Council Member Kring also voiced her support, stating you build in poor times and open in
good times, and this high-end construction would add a true entrance to the Resort area.
Council Member Hernandez moved to approve the following resolutions and ordinances,
seconded by Council Member Kring:
1) Motion to approve a Mitigated Negative Declaration; 2) to approve
RESOLUTION NO. 2009-053 OF THE CITY OF ANAHEIM approving General
Plan Amendment No. 2008-00470 pertaining to the land use element; 3) to
approve RESOLUTION NO. 2009-054 OF THE CITY OF ANAHEIM approving
Amendment No. 13 to the Anaheim Resort Specific Plan No. 92-2 (Specific
Plan Amendment No. 2008-00055} and Amending Ordinance No. 5453
accordingly; 4) to introduce ORDINANCE NO. 6141 OF THE CITY OF
ANAHEIM approving Amendment No. 13 to the Anaheim Resort Specific Plan
No. 92-2 (SP92-2), amending Ordinance No. 5453, as previously amended,
and amending zoning and development standards set forth in Chapter 18.116
of Title 18 of the Anaheim Municipal Code; 5) to approve RESOLUTION NO.
2009-055 OF THE CITY OF ANAHEIM approving Amendment No. 4 to the
Anaheim Resort Public Realm Landscape Program (Miscellaneous Case No.
2009-00297); 6} to approve RESOLUTION NO. 2009-056 OF THE CITY OF
ANAHEIM approving Conditional Use Permit No. 2009-05403; 7) to approve
RESOLUTION NO. 2009-057 OF ANAHEIM approving Variance No. 2008-
04761; 8) to approve RESOLUTION NO. 2009-058 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 1820 South Harbor Boulevard, Anaheim, California
(Determination of Public Convenience or Necessity No. 2009-00056}; and 9)
to approve RESOLUTION NO. 2009-059 OF THE CITY OF ANAHEIM
approving Final Site Plan No. 2008-00004.
Roll Call vote: Ayes - 4: Mayor Pringle, Council Members: Hernandez, Kring and Sidhu.
Noes - 1: Council Member Galloway. Motion Carried.
36. Approve and authorize the City Manager to execute the Development and Economic
AGR-5655 Assistance Agreement, in substantial form, with Lake Development-Anaheim LLC, for
the development of a luxury boutique hotel and other uses and approve the
preliminary design of the project (Staff requests this item be trailed following public
hearing Item No. 41 ).
City Council Minutes of March 31, 2009
Page 17 of 18
Council Member Galloway stated Lake Development requested this subsidy as the project
could not be sustained by the market and needed subsidies to make it pencil out. The bottom
line, she stated, was the developer could not afford to build this hotel. She noted in the first
year of this agreement, the City would be receiving $1.5 million in tax revenues instead of
$3.3 million if the hotel had a three star rating rather than four stars. This would mean in 15
years the City should be receiving $70 million in tax revenues but would only be getting $26
million and the developer would be getting the benefit of the other $44 million. She added
that currently the transient occupancy tax (TOT) revenues had dropped and because of that,
every department in the City was asked to cut back on their budget and while she was not
opposed to the project, she could not support it being built with a taxpayer subsidy.
Mayor Pringle stated there would be no revenue stream from this hotel if it was not built. He
pointed out every single affordable housing project in Anaheim had received a subsidy and
that was because the City had made affordable housing a priority. He added in this case, the
City was banking on future revenues generated from this project to ensure there was a
growing economic base for the Resort's future.
Council Member Kring pointed out that in 2000, Garden Grove had taken most of the land on
Garden Grove Boulevard and Chapman Avenue by eminent domain as they wanted to bring
in hotels and restaurants to generate revenue. In those instances, the land had been given
to the developers but in Anaheim, she pointed out, no land was given away. The City helped
developers by giving them a piece of the transient occupancy tax received as revenue from
the hotel and ended up with three star hotels coming to Anaheim. This effort worked and she
would support this project.
Additional discussion was held related to affordable housing funding, redevelopment project
areas and related issues.
Council Member Sidhu moved to approve Item No. 36, seconded by Council Member Kring.
Roll Call vote: Ayes - 4: Mayor Pringle and Council Members: Hernandez, Kring and Sidhu.
Noes - 1: Council Member Galloway. Motion Carried.
Report on Closed Session Actions:
During closed session, Council voted unanimously to ask the Human Resources Director to
negotiate with Cristina Talley for purpose of hiring her for the position of City Attorney.
Council Communications:
Mayor Pro Tem Hernandez reported on recent meetings he attended in Washington D.C.
area with legislators regarding several issues affecting the City, the National League of Cities
Youth Development Committee, the National Organization on Disabilities and the Distributive
Education Clubs of America as well as his attendance at a meeting in San Francisco on
transportation issues. He also remarked on his attendance at the Anaheim Substation
dedication.
Council Galloway congratulated Cristina Talley on her appointment as City Attorney and
wished everyone a Happy Easter. She also reported attending meetings in Washington D.C.
regarding the economic recovery investment act as well as providing background on Steven
Okimoto, City employee with the Reprographics Division.
City Council Minutes of March 31, 2009
Page 18 of 18
Council Member Kring also reported on her meetings in Washington D.C. on behalf of the
City and informed the community the Public Utilities Department had scheduled four
workshops to discuss California friendly landscaping this April and May. She requested
Council consider a meeting change of schedule in July.
Council Member Sidhu had met with several legislators in Washington D.C. on various topics
of interest to the City. He also remarked on the success of the recent urban planning and
design conference held on March 13t"~, the Claudina Anaheim electric substation dedication
and the health fair scheduled for June 7m at Brookhurst Community Center.
Mayor Pringle congratulated Anaheim resident, Joseph Acaba, NASA astronaut on his space
shuttle mission and announced Mr. Acaba would be recognized at a future Council meeting.
He also congratulated Public Utilities Department as recipients of the 2009 Seamen
Community Award, spoke of the AC-NET 2009 Clean Tech Business Plan Competition and
thanked Joe Fick for his years of service to the City.
ADJOURNMENT: At 9:00 P.M., Mayor Pringle adjourned the March 31, 2009 meeting.
Respectfully submitted,
Linda N. Andal, CMC
City Clerk