1996/10/08CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES
OCTOBER 8, 1996
The City Council of the City of Anaheim met in regular session.
PRESENT:
ABSENT:
PRESENT:
COUNCIL MEMBERS: Tom Tait, Bob Zemel, Frank Feldhaus, Lou Lopez, Tom Daly
COUNCIL MEMBERS: None
CITY MANAGER: James Ruth
CiTY ATTORNEY: Jack White
CITY CLERK: Leonora N. Sohl
DEPUTY CITY MANAGER: Tom Wood
FINANCE DIRECTOR: Bill Sweeney
PLANNING DIRECTOR: Joel Fick
A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 2:25 p.m. on
October 4, 1996 at the Civic Center Kiosk, containing all items as shown herein.
Mayor Daly called the meeting to order at 3:00 p.m.
REQUEST FOR CLOSED SESSION:
City Attorney Jack White requested a Closed Session noting first that there were no additions to
Closed Session items.
PUBLIC COMMENTS - CLOSED SESSION ITEMS:
There were no public comments relative to Closed Session items.
The following items are to be considered at the Closed Session.
CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION
54956.9 (a) - EXISTING LITIGATION
Name of case: California Credit Union vs. City of Anaheim, USDC ~CV-94-05991-ER.
CONFERENCE WITH REAL PROPERTY NEGOTIATOR:
Property: Anaheim Resort and Disney Resort Projects
Negotiating parties: City of Anaheim, Walt Disney World Co., and Walt Disney Co., 1301 South
Harbor Boulevard
Negotiator: City Manager
By general consent, the Council recessed into Closed Session. (3:01)
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
AFTER RECESS:
The Mayor celled the meeting to order, all Council Members being present, and welcomed those
in attendance to the Council meeting. (5:10 p.m.)
INVOCATION:
A Moment of Silence was observed in lieu of an invocetion.
FLAG SALUTE:
Council Member Tom Tait led the assembly in the Pledge of Allegiance to the Flag.
119: DECLARATIONS OF RECOGNITION: Declarations of Recognition were unanimously
adopted by the City Council to be presented to the following five citizens for their invaluable
assistance to the Anaheim Police Department: Tiffany Marie Morris, Vincent and Andrea
Peraza, Danny Valdez, Lonnie Magallenes.
Police Chief, Randall Gaston. Periodicelly, there is an opportunity to recognize individuals who step
forward under adverse conditions and assist the Police Department and Fire Department. Today is one
of those occasions. Chief Gaston then bdefed the incidents and explained how four of the individuals
being honored were involved in life-saving incidents both having to do with someone who, presumed
drowned, was rescued and brought back to life. The other incident was a young man who was able to
chase down and apprehend a suspect. Tiffany Marie Morris and Lonnie Magallenes saved the life of
Rosalie Dickenson and Vincent and Andrea Peraza (6 yrs. old) saved the life of Brenda Roddguez (6 yrs.
old). The victims were rescued from swimming pools and CPR administered. Danny Valdez chased a
suspect a long distance on foot to retdeve a purse stolen by force from a victim.
Mayor Daly and Council Members highly commended those involved noting that it is individuals like
them that make Anaheim the great City that it is. The large audience also expressed their appreciation
by a long round of applause.
119: PROCLAMATIONS: The following Proclamations were issued by Mayor Daly and
authorized by the City Council:
PROCLAMATION to kick-off the first Anaheim Senior Olympic Events Day, October 18, f996,
made possible by health care provider sponsorships.
PROCLAMATION recognizing October 1996 as National Arts and Humanities Month in Anaheim.
Mr. Steven Dixon, CEO, Martin Luther Hospital, Pastor Harry Stieff, Robert Jensen, SCAN Health Plan
and Fred Sohl and Tomi Ivey of the Gateway Medicel Group accepted the Senior Olympics Proclamation
and a briefing was given relative to the events that are to be a part of the Senior Olympics.
Shidey McCracken, President, Anaheim Arts Council and Liz Cason accepted the National Arts &
Humanities Proclamation. Mrs. McCracken noted that it has been nine years since the Arts Council has
been giving awards recognizing Anaheim businesses, churches and schools that provide aR in public
spaces. This year the award was given to three businesses and three churches.
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CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
RECOGNITIONS AUTHORIZED BY COUNCIL THIS DATE TO BE MAILED OR PRESENTED AT
ANOTHER TIME:
PROCLAMATION recognizing October 26, 1996, as Make a Difference Day in Anaheim.
PROCLAMATION recognizing the Mighty Ducks Hockey Team as they begin their next season.
PROCLAMATION proclaiming October, 1996 as Domestic Violence Month.
FINANCIAL DEMANDS AGAINST THE CITY in the amount of $4,414,305.48 for the peded ending
October 4, 1996, in accordance with the t 996-97 Budget, were approved.
Mayor Daly recessed the City Council meeting until after the Redevelopment Agency and Housing
Authority meetings. (5:35 p.m.)
ADDITIONS TO THE AGENDA:
There were no additions to agenda items.
ITEMS OF PUBLIC INTEREST:
VVilliam Fitzgerald, 856 Turquoise St., Anaheim. He is speaking on Measure B. Anaheim's bed tax is
one of the highest in the nation. He understands over one half goes to Disney who claim that it is only
paid by out-of-town visitom. He then explained why he feels this is not so noting that many poor people
have to live in mn down motels/hotels since they cannot pay the security deposit on an apartment and so
have to pay the large bed tax. The 15% bed tax does not help them. He feels there is a better way by
doing what other cities do, have a combination bed tax and entertainment tax. Visitors who pay $34 for a
Disney ticket can afford a tax, not the poor people forced to live in Anaheim hotels. He urged a no vote
on Measure B.
Maureen Chdstensen, 242 S. Date Street, Anaheim. The Anaheim City School Distdct is facing a
facilities crisis housing 7,000 more students than the schools were built to hold. Any agreement entered
into by the City that affects growth impacts the overcrowded schools. One of the solutions is to start a
double session schedule splitting the school day into two sessions. This will negatively impact the City.
Property values will plummet and more day care centers will be needed. She urged the City to get back
to basics and make Anaheim a place where people want to live and to build schools.
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
Penny Mitchell, 228 S. Date Street, Anaheim. She believes that the School District is in crisis and the
only solution may be double sessions. It will negatively impact the quality of life in the City. She urged
when entering into any agreement that impacts the School District that realistic consideration be given to
that impact. Children are the future of the community and the country.
Cordne Simpson, 105 S. Royal Place, Anaheim. She has seven children. All have gone through the
Anaheim School District. When she heam mention of double sessions, she tries to imagine what her
children's lives would have been like if they were subjected to it. She feels the priorities in Anaheim are
mixed up. Their children need schools. She does not want double sessions in the City. It has not been
done before.
Jeff Kirsch, 2661 W. Palais, Anaheim. He announced two programs he is trying to achieve in
connection with the upcoming City elections. One is Dial-A-Candidate. By dialing 821-5289, Anaheim
residents will get a voice mail message which will contain a statement from each of the candidates and
also announcements of upcoming election events. Another is, Candidates on Tape, covering all the
public candidate forums. So far, the Canyon Hills Community Association has sponsored a forum which
he was able to get on video tape. It will be duplicated and made available at all library branches for
checkout. He hopes this will lead to increased voter participation. It will be a trial ton to see if it is
successful in removing the financial barriers for grass roots candidates.
PUBLIC COMMENTS - AGENDA ITEMS:
Public input was received on Item A6 (see discussion under that item).
MOTION:
Mayor Daly moved to waive reading in full of all ordinances and resolutions to be acted upon for
the Council meeting of October 8, 1996. Council Member Tait seconded the motion. MOTION
CARRIED.
CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member Zemel,
seconded by Council Member Tait, the following items were approved in accordance with the reports,
certifications and recommendations furnished each Council Member and as listed on the Consent
Calendar; Council Member Zemel offered Resolution Nos. 96R-170 through 90R-173, both inclusive, for
adoption. Refer to Resolution Book.
Al.
118: Rejecting and denying certain claims filecl against the City. Referred to Risk Management.
The following claims were filed against the City and actions taken as recommended:
a. Claim submitted by Michael Atencio dba M.A. Electrical Contractors for property damage
sustained purportedly due to actions of the City on or about April 1, 1996.
4
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
b. Claim submitted by John Arnold, John Arnold Programming Specialist, Inc. cJo James R.
Flatebo, Esq. for property damage sustained purportedly due to actions of the City on or about
February 27, 1996.
176: RESOLUTION NO. 96R-170: A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM DECLARING ITS INTENTION TO VACATE CERTAIN PUBLIC STREETS,
HIGHWAYS AND SERVICE EASEMENTS; AND TO CONSIDER SETTING A PUBLIC
HEARING FOR THE ABANDONMENT OF THAT PORTION OF CITRON STREET, HALL
AVENUE, VICTOR STREET, JULIANNA AVENUE, BYWOOD AVENUE AND ALLEYS WITHIN
THE SOUTH OF ROMNEYA PROJECT (ABANDONMENT NO. 96-7A). (SUGGESTED PUBLIC
HEARING DATE: NOVEMBER 5, 1996, AT 6:00 P.M.)
^3.
169: RESOLUTION NO. 96R-171: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING SUBMITTAL OF FORTY-THREE IMPROVEMENT PROJECTS TO
THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE
COMBINED TRANSPORTATION FUNDING PROGRAM.
City Manager Ruth noted that 43 improvement projects am involved and not 42 as indicated on the
agenda and the resolution.
^4.
160: Accepting the Iow bid of Korlick Manufacturing Company, in the amount of $25,968.60 for
15 KPFF switches, in accordance with Bid #5578.
A5.
160: Accepting the bid of San Dieguito Publishem, Inc., in the not-to-exceed amount of $92,688
for printing throe issues of the Anaheim Magazine, in accordance with Bid #5573.
A6.
123: Authorizing the execution of an Agreement with Printrak Intemational, Inc., in an amount
not to exceed $446,690 per year, for a minimum seven year lease of an automated fingerprint
identification system, in accordance with Bid #5544.
123: Authorizing the Chief of Police to execute a Softwaro Escrow Agreement with Data-Safe
Storage.
160: Waiving Council Policy 306, and authorizing the Purchasing Agent to issue a Purchase
Order to AGFA Division, Bayer Corporation, in the amount of $107,713.95 for a photo mini-lab
for the Police Department.
Jeff Kirsch. He asked if there wero any standards for the data base that the computer finger print
samples are recorded on.
City Manager Ruth. Chief Gaston and staff aro prosent. They have done extensive rosearch on this
system over a considerable period of time. A workshop was held on March 26, 1996 (see minutes that
date - subject of workshop - Total Integrated Booking and Identification System) where the Chief and his
staff outlined the benefits and value of the system in detail.
Police Chief Gaston. He again bdefed the extensive boner, s of the program as explained at the meeting
of March 26, 1996; Council Member Tait. At the conclusion of the Chief's briefing, he stated that he
strongly supports the lease of this equipment which will decrease the I.D. process from one to five days
down to throe minutes. It gives a much groater 'bang for the buck' from the Police Department.
Mayor Daly. It would be helpful after six months or so to have a report from the Police Department on
how the system is working and the benefits gained vs. the cost.
5
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
A7.
160: Authorizing the Purchasing Agent to exemise the renewal option on Pumhase Orders to
Southem Counties Oil Company, and General Petroleum, in an aggregate amount not to exceed
$988,000 for an estimated 266,000 gallons of Diesel #2 and 651,000 gallons of premium
unleaded gasoline for a period of one year beginning November 1, 1996, in accordance with Bid
~5316.
Council Member Tait abstained on this item due to conflict.
A8.
113: RESOLUTION NO. 96R-172: A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM AUTHORIZING THE TRANSFER OF CERTAIN RECORDS FROM THE
CUSTODY OF THE GENERAL MANAGER OF THE PUBLIC UTILITIES DEPARTMENT TO A
DOCUMENT DEPOSITORY. (AUDIO TAPES OF WORK CREW TRANSMISSIONS AND
CUSTOMER SERVICE CALLS TO BE TRANSFERRED FROM THE PUBLIC UTILITIES
GENERAL MANAGER TO THE DOCUMENT DEPOSITORY.)
A9.
152: Authorizing the Director of Community Services to sign a release which would authorize
the publication of professional documents created by the Community Services Department in a
college textbook.
Al0. 123: To consider approving a five-year renewal of the existing Agreement dated November 2,
1976, as amended, with Anaheim Tennis Center, Incorporated, at a rental of $416.67 per month.
City Manager Ruth. Staff is removing this item from the agenda at this time to be rescheduled at a later
date.
All.
A12.
A13.
A14.
105: Receiving and filing minutes of the Investment Advisory Commission meeting held May 15,
1996.
123: Approving the renewal of the contract with the Inmate Communications Corporation to
provide telephone services to the Police Department Temporary Detention Facility from
September 29, 1996, through September 28, 1998.
117: Receiving and filing a revised portfolio status and transaction summary report for the
month of August 1996, as submitted by the City Treasurer.
184: RESOLUTION NO. 96R-173: A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM PROCLAIMING THE TERMINATION OF THE LOCAL EMERGENCY
PERTAINING TO THE SANTIAGO AND PEGASUS LANDSLIDES IN THE CITY OF ANAHEIM.
A15. 114: Approving minutes of the Anaheim City Council meeting held September 24, 1996.
Roll Call Vote on Resolution Nos 96R-170 throuqh 96R-173, both inclusive, for adoption:
AYES:
NOES:
ABSENT:
MAYOR/COUNCIL MEMBERS: Tait, Zemel, Feldhaus, Lopez, Daly
MAYOR/COUNCIL MEMBERS: None
MAYOR/COUNCIL MEMBERS: None
The Mayor declared Resolution Nos. 96R-170 through 96R-173, beth inclusive, duly passed and
adopted.
END OF CONSENT CALENDAR. MOTIONS CARRIED.
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CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
A16.
121: PUBLIC HEARING - ACQUISITION OF REAL PROPERTY LOCATED AT 2101 S.
HARBOR BLVD.. THRIFTY OIL NO. 191: To consider the adoption of a resolution finding and
determining the public interest and necessity for acquiring and authorizing the condemnation of a
portion of real property located at 2101 South Harbor Boulevard ('rhrifty Oil No. 191, a California
General Partnership - R/VV 5154) within the Anaheim Resort Area; and authorizing the law firm
of Rutan and Tucker, Special Counsel to the City, to proceed with said condemnation action.
Submitted was report dated October 2, 1996 from the Public Works Department recommending adoption
of the proposed resolution.
City Manager Ruth. A letter was received today from the property owner, Thrifty Oil, requesting a
continuance of the Public Hearing.
City Clerk, Leonora Sohl. The Public Works Department is in agreement with the requested continuance
and suggests that it be two weeks to 10/22/g6.
MOTION. Council Member Zemel moved to continue the subject Public Hearing for two weeks to
October 22, 1996. Council Member Feldhaus seconded the motion. Council Member Tait abstained due
to a conflict. MOTION CARRIED.
RESOLUTION NO. --- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM FINDING AND DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR
ACQUIRING AND AUTHORIZING THE CONDEMNATION OF A PORTION OF REAL
PROPERTY LOCATED AT 2101 SOUTH HARBOR BOULEVARD (THRIFTY OIL NO. 191~, A
CALIFORNIA GENERAL PARTNERSHIP - R/VV 51 54).
ITEMS BI - B6 FROM THE PLANNING COMMISSION MEETING OF SEPTEMBER 16, 1996:
INFORMATION ONLY -APPEAL PERIOD ENDS OCTOBER 8. 1996:
BI.
179: WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 3873 AND
NEGATIVE DECLARATION:
OWNER: CCSFERS STADIUM BUSINESS (3), Inc., 1985 S. State College Boulevard,
Anaheim, Ca 92806
AGENT: TRAMMEL CROW COMPANY, 1985 S. State College Boulevard, Anaheim, CA
92806
LOCATION: 1939 South State Colleae Boulevard tThe Catch Restaurant). Property is a
rectangularly-shaped parcel of land consisting of approximately 16.97 acres located at the
southwest corner of Gene Autry Way and State College Boulevard.
To permit a restaurant with a micro-brewery within a previously approved 8,327-square foot
banquet facility with waiver of minimum number of parking spaces.
ACTION TAKEN BY THE PLANNING COMMISSION:
CUP NO. 3873 GRANTED, IN PART, (PC96-93) (7 yes votes).
Waiver of code requirement DENIED on the basis that the requested waiver was deleted
following public notification.
Approved Negative Declaration.
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
B2.
179: CONDITIONAL USE PERMIT NO. 3872 AND NEGATIVE DECLARATION:
OWNER: JAMES Y. TONG, 3983 Solano Drive, Buena Park, CA 90620
LOCATION: 1727 - 1731 West La Palina Avenue. Property is a rectangularly-shaped parcel of
land consisting of approximately 0.6 acre, having a frontage of approximately 100 feet on the
north side of La Palma Avenue and located approximately 340 feet west of the centedine of
Euclid Street.
To permit an amusement arcade within an existing retail store.
ACTION TAKEN BY THE PLANNING COMMISSION:
CUP NO. 3872 DENIED (PC96-94) (7 yes votes).
Approved Negative Declaration.
B3.
179: CONDITIONAL USE PERMIT NO. 3871 AND NEGATIVE DECLARATION:
OWNER: GRAND MARNIER, Attn: Dudley Frank, 505 N. Tustin Avenue, #153, Santa Aha, CA
92705
LOCATION: 426 South Euclid Street. Property is a rectangulady-shaped parcel of land
consisting of approximately 0.21 acre, having a frontage of approximately 50 feet on the east
side of Euclid Street and located approximately 100 feet north of the centeriine of Tedmar
Avenue.
To establish an automobile rental agency.
ACTION TAKEN BY THE PLANNING COMMISSION:
CUP NO. 3871 GRANTED (PC96-95) (7 yes votes).
Approved Negative Declaration.
Mayor Daly. He would like to clarify that the planning staff has recommended this C.U.P. for approval.
Joel Fick, Planning Director. That is correct. Staff did recommend approval and the Planning
Commission approved the item as well.
Mayor Daly. His concern was the compatibility of the uss and assumes planning staff is comfortable with
it.
Joel Fick answered yes, and also confirmed that there was no opposition at the Planning Commission
hearing.
179: CONDITIONAL USE PERMIT NO. 3870 AND NEGATIVE DECLARATION.
OWNER: EVERETT H. & ELMA M. MILLER, 270 Roycroft Avenue, Long Beach, CA 90803
AGENT: SERVICE STATION SERVICES, 3 Hutton Center Ddve, #711, Santa Aha, CA 92707
LOCATION: 956 South Brookhurst Street (Shell Service Station). Property is a rectangularly-
shaped parcel of land consisting of approximate 0.47 acre located at the northeast comer of Ball
Road and Brookhurst Street.
To construct a 1,126-square foot service station with a 1,000-square foot convenience market.
ACTION TAKEN BY THE PLANNING COMMISSION:
CUP NO. 3870 GRANTED (PC96-96) (7 yes votes).
Approved Negative Declaration.
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
RI~PORT AND RECOMMENDATION ITEMS:
B5.
179: CONDITIONAL USE PERMIT NO. 3301 - REQUEST FOR RETROACTIVE EXTENSION
OF TIME TO COMPLY WITH CONDITIONS OF APPROVAL:
LOCATION: Property is located at the northwest terminus of Gadand Circle.
Blash Momeny, 27762 Pebble Beach, Mission Viejo, CA 92692, requests a one-year retroactive
time extension to comply with conditions of approval for Conditional Use Permit No. 3301 (to
construct 2 dwelling units within the Flood Plain Oveday Zone to establish a 19-1ot, 18-unit, RS-
5000 residential subdivision with waivers of required lot frontage and minimum distance between
oil drilling sites and dwelling units) to expire on August 21, 1997. This petition was originally
approved on August 21, 1991.
ACTION TAKEN BY THE PLANNING COMMISSION:
Request for a retroactive extension of time for CUP 3301 APPROVED (to expire September 21,
1997).
179: CONDITIONAL USE PERMIT NO. 3899 - REQUEST FOR AN EXTENSION OF TIME TO
COMPLy WITH CONDITIONS OF APPROVAL:
LOCATION:. Property is located at 999 North West Street.
Reverend George N. V',:la, 319 N. Harbor Blvd., Anaheim, CA 92805, requests a one year
extension of time to comply with conditions of approval for Conditional Use Permit No. 3699 (to
permit a chumh with bell tower) to expire on September 27, 1997. This petition was originally
approved on September 27, 1994.
ACTION TAKEN BY THE PLANNING COMMISSION:
Request for retroactive extension of time for CUP NO. 3699 APPROVED (to expire September
27, 1997.)
A review of the Planning Commission's decision was requested by Mayor Daly concum[,*d in by Council
Member Feldhaus; therefore, a Public Hearing will be set at a later date.
ITEM B7 FROM THE PLANNING COMMISSION MEETING OF SEPTEMBER 30, 1998:
INFORMATION ONLY - APPEAL PERIOD ENDS OCTOBER 10~ 1996:
B7.
144: REQUEST FOR DETERMINATION OF CONFORMANCE WITH THE GENERAL PLAN
FOR COUNTY USE OF LEASED OFFICE AND WAREHOUSE SPACE:
LOCATION: 1530 South State Colleoe Boulevard.
COUNTY OF ORANGE, GENERAL SERVICES AGENCY, Attn: Camlee Condon, Real Property
Agent, 14 Civic Center Plaza, Third Floor, Santa Aha, CA 92701 requests determination of
conformance with the General Plan for County use of leased office and warehouse space for the
Sheriff Department's Commissary Operations and Fond Services Unit.
ACTION TAKEN BY THE PLANNING COMMISSION:
Determined to be in conformance with the Anaheim General Plan.
END OF THE PLANNING COMMISSION ITEMS.
9
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
DI.
175: CONTINUED PUBLIC HEARING - CREATION OF UNDERGROUND DISTRICT NO. 25:
BROADWAY/GILBERT STREET: To consider approval of the creation of Underground District
No. 25 (Broadway/Gilbert Street) in accordance with the requirements of Chapter 17.24 of Title
17 of the Anaheim Municipal Code relating to Underground Utilities. (Continued from the
meeting of September 24, 1996, Item D2.)
On May 14, 1996, the City Council approved the Public Utilities Department's Underground Conversion
Program Five-Year Plan. Underground Distdct No. 25 is being created in accordance with the Plan.
LOCATION: The proposed Underground Distdct No. 25 is created to provide for the
undergrounding of overhead utilities on Gilbert Street from north of Broadway to north of Lincoln
Avenue, and crossing streets as shown on the Underground District No. 25 - Broadway/Gilbert
Street map.
PUBLIC NOTICE REQUIREMENTS MET BY:
Publication in North County News- September 12, 1996
Mailing to preparty owners within 300 feet - August 30, 1996
Posting of property - September 6, 1996
STAFF INPUT:
Submitted was report dated September 25, 1996 from the Public Utilities General Manager, Ed Aghjayan
recommending approval of the subject Underground District.
City Clerk Sohl. This matter was continued from the meeting of September 24, 1996 due to
discrepancies in the legal notice causing some confusion.
Mayor Daly. A staff report was presented on this item at the previous meeting, the Public Hearing
opened, and subsequently continued to this date. He reopened the hearing and asked to hear from
anyone who wished to speak. There being no response, he closed the Public Hearing.
Mayor Daly. This is part of the City's five-year undergrounding plan and is consistent with prior Council
actions.
Mayor Daly offered Resolution No. 96R-174 for adoption. Refer to Resolution Book.
RESOLUTION NO. 96R-174: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM CREATING UNDERGROUND DISTRICT NO. 25 (BROADWAY/GILBERT STREET).
Roll Call Vote on Resolution No. 96R-174 for ado~)tion:
AYES: MAYOR/COUNCIL MEMBERS: Tait, Zemel, Feldhaus, Lopez, Daly
NOES: MAYOR/COUNCIL MEMBERS: None
ABSENT: MAYOR/COUNCIL MEMBERS: None
The Mayor declared Resolution No. g6R-174 duly passed and adopted.
10
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
D2.
176: PI)BI.lC HEARING - ABANDONMENT NO. 96-5A; In accordance with application filed
by California Drive in Theatres, Inc., 120 North Robertson, Los Angeles, CA 90048-3102, a
Public Hearing was held on the proposed abandonment of the water, elecrical and read
easements at 1520 North Lemon Street pursuant to Resolution No. 96R-175 duly published and
notices thereof posted in accordance with law.
At their meeting of September 10, 1996, the Anaheim City Council adopted Resolution No. 96R-151
declaring its intention to vacate certain public streets, highways and service easements and setting a
date and time to consider the subject abandonment.
PUBLIC NOTICE REQUIREMENTS MET BY:
Publication in North County News ~ September 19 & 26, 1996
Mailing to property owners within 300 feet - September 23, 1996
Posting of property - September 27, 1996
Natalie Meeks, Civil Engineer, Public Wo~s Department. She gave a brief staff presentation on the
reason for the proposed abandonment.
Mayor Daly opened the Public Hearing and asked to hear from anyone who wished to speak on the
propesed abandonment. There being no response, he closed the Public Hearing.
ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Mayor Daly,
seconded by Council Member Tait, the City Council finds that the proposed activity fall within the
definition of sections 3.01 Class 5 of the City of Anaheim guidelines to the requirements for an
Environmental Impact Report and is, therefore, categorically exempt from the requirements to file an
EIR. MOTION CARRIED.
Mayor Daly offered Resolution 96R-175 for adoption. Refer to Resolution Book.
RESOLUTION NO. 96R-175: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM VACATING CERTAIN EASEMENTS FOR ROAD, WATER AND ELECTRICAL
PURPOSES (NORTH LEMON STREET) (ABANDONMENT NO. 96-5A).
Roll Call Vote on Resolution No. 96R-175 for adoption:
AYES: MAYOR/COUNCIL MEMBERS: Tait, Zemei, Feldhaus, Lopez, Daly
NOES: MAYOR/COUNCIL MEMBERS: None
ABSENT: MAYOR/COUNCIL MEMBERS: None
The Mayor declared Resolution No. 96R-175 duly passed and adopted.
11
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996.
D3.
134/155/185: FINAL EIR NO. 31'1 (PREVIOUSLY CERTIFIED) AND ADDENDUM AND
MODIFIED MITIGATION MONITORING PROGRAM NO. 0067.
AMENDMENT NO. 3 TO THE DISNEYLAND RESORT SPECIFIC PLAN NO. 92-t
(INCLUDING ZONING AND DEVELOPMENT STANDARDS. DESIGN PLAN AND
GUIDELINES AND PUBLIC FACILITIES PLAN)
THE ANAHEIM RESORT PUBLIC REALM LANDSCAPE PROGRAM AMENDMENT.
DEVELOPMENT AGREEMENT NO. 96-01.
APPLICATIONS
INITIATED BY: THE WALT DISNEY COMPANY, Attn: Douglas M. Moreland, Vice-President,
Wait Disney Imagineedng, 700 Ball Road, Anaheim, CA 92803, and THE CITY OF ANAHEIM
PLANNING COMMISSION per Planning Commission Resolution No. PC96-69.
LOCATION: The proposed project area, which encompasses 490 acres, plus approximately 11
acres of right-of-way improvements, is located within the Anaheim Resort area of the City of
Anaheim and is generally adjacent to and southwest of the Santa Ana Freeway (I-5) between
Ball Road and Katella Avenue (with approximately 24.7 acres located south of Katella Avenue)
and east of Walnut Street.
The Anaheim Resort Public Realm Landscape Program Amendment pertains to public streets
within and adjacent to The Disneyland Resort Specific Plan area.
Development Agreement No. 96-01 pertains to properties within the Specific Plan area owned or
controlled by The Walt Disney Company, its successors or assigns.
PUBLIC NOTICE REQUIREMENTS MET BY:
Publication in North County News - September 27, 1996
Mailing to property owners within 300 feet - September 26, 1996
Posting of property - September 27, 1996
PROPOSAL:
The proposed project actions include:
A): Final Environmental Imoact Reoort No. 311 (Previously Certified) and Addendum and
Modified Mitioation Monitorino Prooram No. 0067. Request for determination that the
previously-certified Final EIR No. 311, with the Addendum and modified Mitigation Monitoring
Program No. 0067, are adequate to serve as the required environmental documentation for the
proposed project actions. Final EIR No. 311 was previously-certified and Mitigation Monitoring
Program (MMP) No. 0067 was adopted by the Anaheim City Council on June 22, 1993 in
conjunction with the approval of The Disneyland Resort Specific Plan No. 92-1 and General Plan
Amendment No. 331. The Final EIR No. 311 addresses the environmental impacts and
mitigation measures associated with the development of The Disneyland Resort. In connection
with the certification of Final EIR No. 311, the City also adopted a Statement of Findings and
Facts and a Statement of Overriding Considerations for the project in compliance with the
California Environmental Quality Act. In connection with the proposed project actions, an
Addendum has been prepared to the Final EIR and modifications to the previously-adopted MMP
No. 0067 are proposed. The Addendum analyzes the proposed project actions and describes the
minor modifications to the Final EIR and MMP which are necessary to address the proposed
project actions. Staff review indicates that for all environmental issues, the Addendum
demonstrates that the project actions will not resuit in new significant impacts or substantial
increases in significant impacts above those covered in the previously-certified Final EIR No.
311 and that no supplemental or subsequent environmental review is required. Staff review
further indicates that the previously-certified Final EIR No. 311, with the Addendum and modified
Mitigation Monitoring Program No. 0067, are adequate to serve as the required environmental
documentation for the proposed project actions;
12
E)
F)
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
B): Amendment No. 3 to the Disnevland Resort Specific Plan No. 92-1 The proposed
Amendment No. 3 to The Disneyland Resort Specific Plan No. 92-1 would encompass certain
minor modifications to the Disneyland Resort Project including a Revised Phasing Plan, make
modifications to the Specific Plan (including the Zoning and Development Standards, Design
Plan and Guidelines, and Public Facilities Plan) to implement the Revised Phasing Plan and
incorporate minor textual and graphical modifications to the document including, but not limited
to, the following:
1): The Revised Phasing Plan would implement the Specific Plan land uses in throe phases
instead of two;
2): Modifications to the Project/Specific Plan include revisions to the perking layout and
associated phasing, revisions to the drop-off area in the Theme Park Distdct along Hart)or
Boulevard, minor realignment of West Street/Disneyland Ddve between Cerritos Avenue and
Katella Avenue to keep the alignment in its current configuration (it was previously approved to
be curved within a portion of this area) and to lower the elevation of the street to provide for a
potential pedestrian overcrossing and Retail Entertainment Center straddling the street; prevision
of a new signal on Harbor Boulevard and on West Street/Disneyland Ddve, retention of the
existing Monorail alignment; and, relocation of the Southern California Edison (SCE) electrical
lines within the approved alignment, with the 220-kY circuits to remain aerial; and,
3): Other textual and graphical modifications include incorporation of vadous nomenclature and
other minor modifications consistent with the adopted Anaheim Resort Specific Plan No. 92-2;
clarification of the relationship of the Disneyland Resort Specific Plan to the adopted "Anaheim
Resort Public Realm Landscape Program" and "The Anaheim Resort Identity Program"; addition
of an updated description of the applicable General Plan previsions; modifications to the street
cross-sections to reflect revised streetscape landscaping proposed as part of the Anaheim Resort
Public Realm Landscape Program Amendment; and, typographical corrections;
C): The Anaheim Resort Public Realm Landscace ProRram Amendment The proposed
amendment to the Anaheim Resort Public Realm Landscape Program would amend the
landscape concept plans for public streets adjacent to and within The Disneyland Resort Specific
Plan area (Freedman Way, Harbor Boulevard, Walnut Street and West Streel/Disneyland Ddve);
D): Develooment Aoreement No. 96-01 The proposed Development Agreement No. 96-01
between the City of Anaheim and Walt Disney World Co. pertains to the vesting of project
entitlements and would further address the implementation of The Disneyland Resort Project;
Air dghts vacation and/or encroachment permits; and,
Other related actions.
ACTIONS TAKEN BY THE PLANNING COMMISSION:
THE PLANNING COMMISSION, BY RESOLUTION AS INDICATED BELOW, HAS MADE
RECOMMENDATIONS TO THE CITY COUNCIL REGARDING THE PROPOSED ACTIONS.
THE CITY COUNCIL WILL HOLD ADDITIONAL PUBLIC HEARINGS AND MAKE THE FINAL
DECISIONS.
FINAL ENVIRONMENTAL IMPACT REPORT NO. 311 (PREVIOUSLY CERTIFIED) AND
ADDENDUM AND MODIFIED MITIGATION MONITORING PROGRAM NO. 0067
RESOLUTION NO. PC96-79.
AMENDMENT NO. 3 TO THE DISNEYLAND RESORT SPECIFIC PLAN NO. 92-1(INCLUDING
ZONING AND DEVELOPMENT STANDARDS, DESIGN PLAN AND GUIDELINES AND PUBLIC
FACILITIES PLAN) RESOLUTION NO. PC96-80.
13
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
A RESOLUTION OF THE CITY OF ANAHEIM PLANNING COMMISSION RECOMMENDING
ADOPTION OF AN AMENDMENT TO THE ANAHEIM RESORT PUBLIC REALM LANDSCAPE
PROGRAM RESOLUTION NO. PC96-81.
A RESOLUTION OF THE CITY OF ANAHEIM PLANNING COMMISSION RECOMMENDING
CITY COUNCIL APPROVAL OF DEVELOPMENT AGREEMENT NO. 96-01 BY AND
BETWEEN THE CITY OF ANAHEIM AND WALT DISNEY WORLD CO. A DELAWARE
CORPORATION, AND MAKING CERTAIN FINDINGS RELATED THERETO RESOLUTION
NO. PC96-82.
Informational item at the City Council meeting of September 10, 1996, Item B2.
Submitted were the following staff reports:
Report dated September 30, 1996 from Deputy City Manager, Tom Wood
Subject: Transmittal of Infrastructure & Parking Finance Agreement for
the Disneyland Resort, the Anaheim Resort and the Convention Center
Expansion
Report dated October 1, 1996 from the Planning Department, with attachments,
rocemmending adoption of Resolutions and Ordinances relating to approval of
the Disneytand Resort Project
Report dated October 3, 1996, with attachments, from James D. Ruth,
City Manager - Subject: Infrastructure and Parking Finance Agreement
for the Disneyland Resort, the Anaheim Resort and the Convention Center
expansion
A verbatim transcript of this portion of the meeting is on file in the City Clerk's Office.
Mayor Daly. Prior to opening the Public Hearing, he explained the procedures to be followed in
conducting the hearing noting that it is the same procedure followed for every land uso Public Hearing
before the City Council.
Before proceeding, the City Clerk announced that to date, 15 letters have been received in favor of the
project, three opposed, four addressing the EIR and other issues -- all made a part of the record. Eleven
telephone calls were received today in favor. Two letters have also been received from Latham &
Watkins dated October 8, 1996 which ara also on the record. She clarified for the Mayor that many other
calls were received, but only 11 today; Mayor Daly stated that the Council has received hundreds in
recent days~ He then asked to hear from the City Manager.
City Manager, James Ruth. Today represonts a significant milestone in the history of the City. After six
years, thousands of hours, and teams of experts in the fields of land use, planning, landscaping,
transportation, air quality, fiscal analysis, bond financing and many more, City staff stands before the
council with one of the most ambitious economic development plans in the nation. The key to the plan
resides in the Anaheim Resort Area (ARA). For the past 40 years, this area has sorved as a cdtical
revenue source to fund City-wide services. Tourism and convention activities within the area result in
approximately $11 million net revenues to the General Fund every year. In order to protect the City's
long-range financial future, it is necessary to socure the continued cernpetitiveness of the area. Without
the increased revenues from an expanded resort area, the City could not afford to invest additional
dollars in the ARA without jeopardizing the General Fund. The proposal before the Council minimizes
dsks and maximizes City-wide benefits for all residents. It will secure Anaheim as a premier tourist and
14
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
convention destination in Southern California into the next millenium. He then introduced Tom Wood,
Deputy City Manager.
Presentations were then made by the following staff members (presentations am summarized and key
points outlined):
Tom Wood, Deputy City Manager (presentation supplemented by slides). The biggest risk facing the
City today is the status quo. City staff has worked diligently over the past several years to devise a plan
to secure the long-term competitiveness of tourism and convention businesses within the Anaheim
Resort. This required an ambitious plan that hinged on throe key elements - a completely revitalized
ARA, the Disney Resort expansion, and an expanded Convention Center. Without all three, the City
could not guarantee that the ARA con compete at the same level it does today. The Council put in place
a set of criteria which paved the way to developing a framework to: provide revenues to pay for
improvements needed in the area to maintain the City's tourism industry well into the futura including an
expanded revitalization program and a $150 million expansion of the Convention Center, pay for
increased operating costs rasuiting from the development, provide net new dollars to the General Fund
to support City-wide services, protect the General Fund from risks associated with the deal, and finally,
be a promotion draw to assist Anaheim businesses in the highly competitive tourist industry.
Joel Fick, Planning Director. He gave an overview of land use related actions and outlined all of the
documents before the Council tonight as well as the documents previously submitted. The Council has
also received amended documents reflecting the Planning Commission recommendations as well as new
refinements and errata which were specifically described in Attachment B of the staff report dated
September 30, 1996 which the Council received in conjunction with tonight's material. He noted that the
refined Disney Resort Project has essentially the same scope as approved in 1993 but with a revised
phasing plan. Modificotions to the Specific Plan to implement the new phasing plan have been
incorporated as well as associated text and graphic changes. All modifications have been adequately
covered in the amendments and EIR addendum. The refinements to the original plan (Wescot) cause no
additional significant environmental impacts. The previously certified final EIR with the addendum and
the modified mitigated monitoring program are adequate to serve as the required environmental
documentation for the project.
In 1993, the Disney Resort Project Specific Plan was approved and exhaustive environmental
documentation was prepared. Before its final approval, the project endured extensive review by over 27
Iocol, regional, State and Federal agencies and was subject to extensive public review and countless
public hearings before the Planning Commission and City Council which resulted in a number of
revisions and improvements designed specificolly to address community concerns. City staff believes
that the proposed project has been comprehensively planned and totally analyzed. Staff is
recommending approval of all land use related actions before the Council today. At this time, he would
like to enter the staff report and the documents referenced into the record of the hearing.
Tom Wood, Deputy City Manager. He gave an historic overview of the project from 1993 to date. The
City has since approved two modificotions to the Specific Plan and a third modification is before the
Council tonight for consideration. One of these modificotions changes the fundamental project elements
consisting of a second theme park and up to 5,600 hotel moms. The Development Agreement before
the Council tonight was drafted with one primary goal in mind, to insure that the Disney Resort opening
date would move forward in a timely manner in order to solidify the benefits to Anaheim. He then briefed
the major provisions of the Development Agreement and subsequently the major provisions of the
Financing Agreement. He concluded that the agreement(s) will result in significant growth in net General
Fund revenues from tourism for City-wide use, provide Convention Center funding that otherwise would
15
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
not exist, avoid future Convention Center capital costs through an innovative joint parking arrangement,
complete the entire ARA capital revitalization program, provide $5 million in funds for adjoining
neighborhood improvements, and protect the General Fund from what would otherwise be a debt dsk.
The bottom line - the net General Fund revenues from the ARA will increase dramatically even after
paying for a completely renovated resort area, an expanded Convention Center and associated operating
costs. He then deferred to Bill Sweeney, the City's Finance Director to describe the fiscal framework and
provide an overview of the Financing Agreement details.
Bill Sweeney, Finance Director. Before the Council tonight is an infrastructure and parking financing
agreement which implements the Development Agreement for the Disney Resort project by providing for
expansion of the Convention Center and infrastructure improvements that will accommadate both
projects. As Mr. Pressler will describe later, Disney will commit to building a second theme perk, a new
750-room hotel and a new retail, dining and entertainment center on Disney property. These facilities
are expected to generate, above an escalating base, over $10 milion in 2001 which will escalate
thereafter to the City of Anaheim in incremental transient occupancy taxes, sales taxes and property
taxes. He then outlined the plan in detail.
City Manager Ruth. Now is the time to move fonvard and begin to develop the Anaheim Resort of the
21st Century. Staff has worked hard over the past six years to find a solution to the Anaheim Resort's
future and believe they have a very viable plan. The project went through extensive public review and
scrutiny before final EIR approval. The changes have been responded to and adequately addressed.
The Financing Agreement accomplishes the needs of the Anaheim Resort Area in the future and meets
the Council's criteria. It minimizes the City's risk and maximizes benefits for all residents of Anaheim.
The Wait Disney Company, a world-class partner, has taken an unprecedented step to combine the
revenues of the project with the financial power of the company in order to help the City realize its goals
with no debt risk to the General Fund. As the City's independent fiscal analysis consultant stated in the
assessment, this proposal will provide a greater fiscal benefit to the City than can be expected from the
status quo. As a result of the additional fiscal benefits and reduction in City debt obligations, there is less
risk to the City's General Fund by proceeding with the project than would exist othenvise. Today, City
staff stands before the Council recommending approval of a prudently structured economic development
initiative, one that will go a long way to help solidify the City's financial future without imposing any new
taxes on the citizens of Anaheim. Following testimony by the applicant and the public, staff will be happy
to respond to any questions.
Mayor Daly opened the Public Hearing and invited the applicant to make a presentation.
The following representatives from Disneyland each gave a presentation relative to the project:
Paul Pressler, President, Disneyland Resort, 1313 Harbor Blvd., Anaheim
Doug Moreland, Vice President of Development
Bar~y Braverman, Vice President of Creative Development
Doug Moreland, Vice President of Development, confirmed the goals of the project, the same as those
identified in 1993 to transform a world-renowned theme park into a world-class destination resort.
Although the new expansion plan remains consistent with the approved plan, it has a completely new
creative vision including some minor modifications to the Specific Plan. The project wil also be done in
three phases instead of two as previously proposed. He then explained the three phases and
subsequently briefed the major project components. (His presentation was supplemented by slides).
Barry Braverman, Vice President, Creative Development. He presented the creative vision for the new
Disney theme park - Disney's California Adventure, the goal being to celebrate the special magic of the
California Dream. (His presentation was supplemented by slides).
16
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8~ 1996
Paul Pressler, President, Disneyland Resort. He spoke about the partnership between Disneyland and
Anaheim that hopefully will make the dream come tree, a partnership that has been ongoing since 1955.
He first explained why they feel the expansion is necessary not only for Disney, but also the City,
emphasizing the formidable competition for the tourism market by nearby cities and states. He noted
that last Saturday when the park had to be closed for several hours because of overcrowding that there is
little doubt they can fill two theme parks which will provide an engine for economic growth. He also
briefed the many community activities that Disney has been and is involved in including those activities
committed to when the Wescot project was proposed but subsequently withdrawn. They nevertheless
maintained their commitment to fully honor every community service obligation outlined in the EIR.
Tonight he is also pleased to announce one of the most significant educational initiatives to date. They
are prepared to move forward with a drag abuse prevention program that will reach children in the most
effective way possible. It will reach them at the right age, eight years old, when it is not too late to make
a difference. It will be brougM to every third grade student in every school in Anaheim. Although
Disneyland will fully fund and implement the program, it will be mn in partnership with all Anaheim
schools, the Anaheim Police Department and the Orange County Sberrif's Department. In concluding his
extensive presentation, Mr. Pressler asked that they look beck at the spirit that built Anaheim and to look
forward to what together they can begin. It is a City that has the courage and vision to build upon its past
and never stop dreaming about its future.
Mayor Daly invited public participation at this time, first by those in favor of the project.
City Clerk Sohl announced she had received a request from a group called, Wescor 2000. Mr. Keith
Murdoch has requested to speak along with approximately 18 other speakers in that group.
The following people spoke in favor of the project:
Keith Murdoch, former Anaheim City Manager
Reon Boydstun Young, 501 N. Pine, Anaheim
Chades Ahlers, President, Anaheim/Orange County Visitor & Convention Bureau
Wayne Wedin, Board of Directors and Exec. CommJOrange Cty. Business Council
Start Pawlowski, 1433 W. Janeen, Anaheim
Slim Ten.ell, School Board Member
Susan Klaran, Board of Directors, Anaheim Chamber of Commerce
Joe Persek, Retired Postal Supervisor (submitted cards of support from 4,890 residents)
Dan McKelvie (presented letters, proclamations, etc., in support - showed video)
Mollie McGee, President, Anaheim Union H.S. Distdct Board of Trustees
Andrea Manes, 1475 Wedgewood, Anaheim
Eliza B. Cason, 1118 S. Case Street, Anaheim
Mel Miller, 5311 Yale St., Westminister (Anaheim businessman)
Ken Sammons, 709 Agate, Anaheim
Miriam Kaywood, former Anaheim City Council Member
Dick Clark, Environmental Engineer, Rockwell
Jack C. Dutton, former Anaheim City Council Member and Mayor
Ron Dominguez, 18472 Roseknight Dr., Villa Park (former principal of Disneyland)
Roger Embrey, 1919 S. State College, Anaheim, Chrmn., O.C. Econ. Dev. Consortium
Reed Royalty, Executive Vice President, O.C. Taxpayer's Association
* Jen'y O'Connell, President, Pacific Coast Sightseeing and Gray Line Tours
Pres Argubright, Executive Director, Boys & Gids Club
Trudi Wilson, Executive Director, Hispanic Chamber of Commerce of O.C.
Richard Ramsey, 1186 N. Dresden, Anaheim
Hani Purl, Chairman, Economic Development Department, Cai State Fullerton
Paul Mercier, Superintendent, Magnolia School District
Joseph Weatherby, 2230 E. Belmont, Anaheim
Lucy On', 5412 Willowick, Anaheim
17
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
*Mr. O'Connell expressed concern regarding the landscaping plan (see below).
A summary of the masons for support and topics which were broached follows:
Emphasis was placed on the importance of the project to the City from an economic development
standpoint, increased employment within the City and the ama, increase in sales tax, the project will be a
positive for businesses and residents, Disney is not responsible for overcrowded schools, it is a project
that the toudsm and convention industry needs to stay competitive, it is an opportunity to benefit the
citizens and visitors of Anaheim, the County of Orange and the entire State, it is the right plan and the
right time to move for~vard into the 21st Century, in case of a shortfall, Disney will guarantee the bend
payments, Disney has been a good neighbor and has been good for the City and the community at large,
Anaheim businesses need the benefits that will accrue as a result of the expansion, the Council's 5-0
vote in support is chtical to let the people know they have confidence in the project and will further
encourage a Yes vote on Measure B (retention of the T.O.T. increase), the Disney way is good business,
Disney has not just talked about but has shown good leedemhip in reaching out to the community and the
schools, Disneyland has provided jobs in the past for Anaheim families and now will continue to do so in
the future, the project will create 14,500 new jobs, it will contribute to a better tomorrow, the expansion
will provide beautification and improvements in the resort area as well as better accessibility from the
perspective of the handicapped, the project will conribute 1.4 billion dollars to the economy of Southern
California of which 730 million will occur in Anaheim each year, Disneyland has been an ongoing asset to
the City since it opened in 1955, the new plan results in far less environmental impact relative to traffic
and noise, Disney and the City are and have been good financial partners, the partnership between
public and private investment is well demonstrated with this project, it is an investment with a Iow risk
and high rate of return, the proposed investments in the ARA are a good deal for taxpayers, the Orange
County Taxpayer's Association urges approval of the project as well as the Orange County Economic
Development Consortium, Disney has contributed hundreds of thousands of dollars to the Boys and Girls
Club and the prospect of 8,000 new jobs by the year 2000 is a bright prospect for the youth of Anaheim
and Orange County, the expansion will make Anaheim an even better place in the future, the expansion
of Disneyland is also a dream come true for the 2,300 Disney cast members who live in Anaheim, the
Orange County economy has lost 58,000 jobs over the last five years from the recession and defense
cutbacks - defense is not coming back, but tourism plays an essential role and this is an opportunity to
insure its growth, in addition to the cultural, entertainment, economic, social and other benefits to the
City, the three school districts entirely within Anaheim also express their support for the additional
educational benefits the California Adventure will provide, the plan will be another source of pride for the
citizens of Anaheim.
Mr. McKelvie's presentation included an approximate four-minute video wherein people around the City
were interviewed (businesses and residents) and expressed their approval and support for the proposed
expansion and gave their reasons why. He also referred to the letters of support and
proclamations/resolutions which wers submitted (displayed on easels in the Chamber) in supped
including a letter from Governor Wilson, a resolution from the Orange County Board of Supervisors,
Proclamations or Resolutions from 17 cities in Orange County, 14 Chambers of Commerce, Orange
County Business Council, five school districts, three local Assemblyman, and the Business Industry
Association.
Joe Persek submitted a box of information request cards sent out by Wescor 2000 returned by
approximately 4,890 people expressing support for the ballot measure (Measure B on the 11/5196 ballot
relating to retention of the increase in the City's T.O.'r) as well as the proposal before the Council tonight.
A compiled list of all the names was also submitted (made a part of the record). Measure B, placed on
the ballot by the City, is an important issue. If the measure fails and the City does not have the funds to
complete resort area improvements, the Disney expansion will not become a reality and the adjacent
hotels/motels will attract fewer guests. The Council's action tonight is critical in letting all the people of
Anaheim know that the City has confidence in the project and the best way will be with a unanimous
decision of support.
18
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
Mollie McGee, President, Anaheim Union High School Distdct Board of Trustees. Besides voicing her
support for the project, she also addressed the school overcrowding issue in the Anaheim City School
District. That issue deserves and demands attention but it has not been brought about by the proposed
project nor is it one that the City Council has the opportunity to solve. The problem lies with the
Governor and the State Legislature. It is a totally separate issue.
*Jen'y O'Connell, President, Pacific Sightseeing and Grayline of Anaheim & Los Angeles. He expressed
concern regarding the landscaping plan. The expansion plan will bring in visitors to the City but the
landscaping plan will negatively impact the guest travel experience. Safety and operational hazards will
develop due to the elimination of curb-side service. The issues have been discussed with City staff and
progress has been made to come up with workable solutions. He referred to his letter of August 30, 1996
which addressed the issue. He would like the matter to remain open for changes.
There being no further persons who wished to speak in favor, Mayor Daly asked to hear from those in
opposition to the project. The following people spoke in Opposition to or gave comments regarding the
expansion project:
Tim Murphy, 819 N. Roanne Street, Anaheim
Henry Barbosa, Barbosa Garcia & Barnes, 500 Citadel Dr., Los Angeles
Dennis Willut, Anaheim property owner
*Steve White, Spokesman for Anaheim HOME and Committees of Correspondence
Jeff Kirsch, 2661 W. Palais, Anaheim
*Mr. White prefaced his presentation by stating that they do not oppose the Disney
expansion (see a summary of his presentation below).
Tim Murphy. Since Disney is in the City of Anaheim, Disney should not dictate what they want. Disney
wants and needs this project. He questioned who is going to guarantee what was $450 million and is
now up to $560 million. Much has been said about reinvesting but what he hears is borrowing. It would
be a foolish decision to put the City in debt. Disney should pay because it is their business and industry.
Henry Barbosa. He is not arguing for a fiat rejection of the proposal, but is present to object and cry out
a warning before the Council makes a decision. He refen'ed to his letters already submitted dated
September 25 and October 8, 1996 (made a part of the record) with an attachment to the second letter.
He asked that Council consider and review the issues outlined before making a determination. He
briefed the concems expressed, one of the main issues being that the essence of Council's action tonight
is providing an approval for a vesting of certain development rights 20 and 40 years into the future. It is
simply giving Disney a blank check for all future development and cutting off any future public
participation in the process. He feels the proposal before the Council tonight is not protecting the City.
Dennis Willut. He owns property in the area. His major concern is that Katella Avenue has been
neglected. Going past Euclid on Katella, one lane becomes flooded when it rains. Nothing has ever
been done about the situation. He has celled the City Manager and basically got no help. If the Council
is going to vote for the project this evening, Katella is going to have to be repaired as well. It is a major
concern for him, his tenants and other property owners.
Steve White. They do not oppose the Disney expansion. The park is Anaheim's largest employer and
tourism is a signilicant segment of the City's economy. The proposal asks the taxpayer's of Anaheim to
provide $545 million in public funding to benefit a single segment of the community. At $6 million a
year, it would take 91 years to recoup that level of public investment. He touched upon the City's T.O.T.
(Transient Occupany Tax) noting that in the communities that surround Anaheim, all of their T.O.T. is
available for public services whereas only 6% of Anaheim's 13% tax is used for public services. The
principal objection to the proposal is that it amounts to corporate welfare with no means test. The City
should bo focused on public needs, not on providing public financing to the most profitable segment of
19
CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
the City's economy. They know how the vote is going to go tonight. In four weeks, they hope that the
voters in considering Measure B will consider it a referendum on the Council's approval tonight and
reject it as they did Measure R.
Jeff Kirsch, 2661 W. Palais, Anaheim. He submitted a handout to facilitate his presentation which was
augmented by a slide presentation. The Council has already given full approvals of the project and by
the legal status of Wescot, Disney should be digging the foundations for the project. It is not Anaheim
that is holding up the project. Disney pulled it back and what is holding it up is clever marketing. He
then touched on a number of issues involving the City budget commenting that there is no mention of
beth existing and future unmet revenue demands of this and other City segments over the 50 year
potential term of the project. It limits certain important aspects of the City's taxing authority to pay the
debts. If so, he questioned who will carry those debts in the future if not the residents.
In summarizing and concluding his extensive presentation, he stated Anaheim needs a project of
revitalization, but he feels this agreement needs some serious work, assessment by the Council, or
direction for staff to look at the financial impacts outside of the CRA on the City in the future not just
inside to achieve the goal of financing the project. If it has that, it will have his support.
Mayor Daly asked if there was any further opposition or comments; there were none. He then invited the
project applicant to present rebuttal testimony if any.
Paul Pressler, President, Disney Resort Project. There is no rebuttal at this time.
Mayor Daly asked the Council if there were any questions of staff or anyone else; there were none.
Mayor Daly closed the Public Hearing. He then stated, as one of the speakem remarked, this is an
opportunity to make history. He believes they have an excellent case before them prepared by
professional City staff to move forward, to take a step into the future and to approve the proposal. He
cannot wait for the project to begin. He thereupon offered the four resolutions for adoption and the two
ordinances for introduction with the two ordinances to be voted upon at the next scheduled Council
meeting (October 22, 1996).
RESOLUTION NO. 96R-176: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM MAKING CERTAIN FINDINGS AND DETERMINATIONS RELATING TO
PREVIOUSLY CERTIFIED FINAL EIR NO. 311 AND THE ADDENDUM DATED JULY 31, 1996
AND ADOPTING MODIFIED MITIGATION MONITORING PROGRAM NO. 0067.
RESOLUTION NO. 96R-177: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING SPECIFIC PLAN NO. 92-1 FOR THE DISNEYLAND RESORT AND
AMENDING RESOLUTION NOS. 93R-146 AND 93R-147, AS PREVIOUSLY AMENDED,
ACCORDINGLY (AMENDMENT NO. 3).
RESOLUTION NO. 96R-178: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING THE ANAHEIM RESORT PUBLIC REALM LANDSCAPE PROGRAM.
RESOLUTION NO. 96R-179: A RESOLUTION APPROVING, AUTHORIZING AND
DIRECTING EXECUTION OF CERTAIN DOCUMENTS RELATING TO THE FINANCING OF
AN EXPANSION TO ANAHEIM CONVENTION CENTER, CONSTRUCTION OF A PUBLIC
PARKING FACILITY AND CONSTRUCTION OF CERTAIN OTHER INFRASTRUCTURE
IMPROVEMENTS, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH
RESPECT THERETO.
20
CITY OF ANAHEIM~ CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
ORDINANCE NO. 5580: (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM
AMENDING ORDINANCE NOS. 5377 AND 5378 AS PREVIOUSLY AMENDED, RELATING TO
THE DISNEYLAND RESORT SPECIFIC PLAN NO, 92-1, AMENDMENT NO. 3 (CHAPTER
18.78 OF THE ANAHEIM MUNICIPAL CODE).
ORDINANCE NO, 5581: (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM (i)
APPROVING DEVELOPMENT AGREEMENT NO. 96-01 BY AND BETWEEN THE CITY OF
ANAHEIM AND WALT DISNEY WORLD CO., A DELAWARE CORPORATION, (ii) MAKING
CERTAIN FINDINGS RELATING THERETO, AND (iii) AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT FOR AND ON BEHALF OF THE CITY.
Before a vote was taken, Council Members commented on the project:
Council Member Tait. He agrees relative to making history. It is an honor to be representing the people
of Anaheim at this moment in time. He was on the City's Planning Commission when the Disney Wescot
project was presented and approved. When that project did not go forward, he was disappointed. The
Califomia Adventure is truly a remarkable project and he is convinced it will be very successful. He
looks at the risks of the project and if it does not work out - what happens to the General Fund. His job
is not to be a cheedeeder for the project, but to be a guardian of the public trust as former Mayor/Council
Member Jack Dutton, a man he greedy admires, said. Essentially, they will be borrowing about $400
million with a General Fund budget of $135 million. The big tuming point for him was that Disney came
up with a guarantee for the downside risk. Without that, he would not have been able to vote for the
project. With it, it eliminates the downside. Something that might not seem that important today, but 15
years from now if the project dipped, the City will be very glad to have that guarantee. It means the City
will not have to dip into the General Fund revenues thereby possibly having to decrease Police, Fire and
community services. With that said, he looks at the positive side. This truly will be a huge economic
engine not only for Anaheim, but also the whole state, It revitalizes the center part of the City and
provides $6 million in revenue although he feels that is a conservative estimate. It will provide a priority
for Anaheim residents for jobs. Also, as Mr, Pressler announced, a drug prevention program is going to
be started for all third graders in Anaheim schools. He reiterated, he supports the project and does so
enthusiastically.
Council Member Feldhaus. The question has been asked how can the City justify a multi-million dollar
deal that benefits a profitable pdvate company like Disney. It is not just Disney that it benefits - the City
is a bigger beneficiary. Without the commitments by Disney, the City could not accomplish the public
improvements contemplated by this program nor maintain and enhance the City's position as a nationally
prominent convention and tourist destination. The ARA is a critical funding source for City-wide services
and must be protected. It currently provides $11 million annually to the General Fund. This proposed
plan will realize revenues generated exclusively from tourism to fund critical improvements which include
renovating and replacing an aging infrastructure that needs to be accomplished whether or not the plan
takes place. He then bdefed the financial benefits of the expansion project as previously outlined, he
feels the $6 million figure is very very conservative and believes it will be somewhere around $10
million. Disney and the future bond insurers and buyers are assuming all the risks. The risk for the City
is to do nothing. The Anaheim Resort Area is a major revenue-producing asset for services City wide
and has to be protected. Anaheim has a vital industry and an Economic Development Plan that most
cities just dream about. The Council's job is to make sure the plan is implemented in a way that protects
the City from risk and does not impose any new taxes on its residents. Competitiveness in the toudsm
and convention market is critical to the City's financial future. The future of the ARA directly impacts
every resident of the City. A healthy and thriving ARA means a healthy City overall. It is an asset just
as the Arena, Convention Center and Stadium. For these reasons, he is voting Aye on this forward-
looking and progressive opportunity.
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CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
Mayor Pro Tem Lopoz. He support~s the project. Pdor to becoming a Council Member, he was on the
Board of Education. Disney was always there to "step up to the plate" year in and year out. He has been
a Police Officer for 28 yearo and during that time Disney was always there. He rolayed his personal
experiences dealing with Disneyland over the yearn. Relative to the Disney expansion plan and the
proposal beforo them tonight, he has roviewed all of the documents and also had the opportunity to
review them with staff and the attorneys for the pest year - volumes of documents. He feels it is a great
project and is happy to be a part of the vote. The partnemhip started over 40 years ago when the City's
leadership also 'stepped up to the plate' and the City got Disneyland when othem hesitated and then
later the Stadium and the Arena. The City has done a number of historical and courageous things that
have made it a No. 1 attraction world wide. This proposal is a win-win situation and he wholeheartedly
supports it.
Council Member Zemel. During this process, he has rosorved himself to being watchful. He can ropert
that the process has been complete, out front and forthright. Thero have been many opportunities for
public scrutiny, public input and dialogue. The Council, up front, had the chance to set goals and
objectives for the staff. For him, the main goal was to watch out for the General Fund and protect
taxpayer's dsk. Dudng the process that preceded today's headng and while reviewing the volumers of
materials, he found soverel items that concerned him. Over the past severol months, he took the time
and staff gave him ample time to pursue the items and give input and some of his fears wero allayed. It
is true he does not believe this is a perfect deal; however, negotiations are give and take and no deal
can be perfect. His job tonight and during the process has been to try to establish to the pest of his
ability if they took enough to warrant what they gave up. He feels he has done that job. He rocently did
the same with the Anaheim Stadium deal which he voted against after going through the same type of
process and scrutiny. This project to him is very much unlike that deal. It provides real revenue streams
to pay beck the bonds and provide cash flow to the Generol Fund. There aro secudty measures in place
to protect the taxpayers. This also provides for 14,00 new jobs, 8,000 in Anaheim. Thero will, in fact, be
a tremendous boon to the economy. While thero are in this agreement cooperative arrangements, thero
is no corporate welfaro. It is a good opportunity for Anaheim and the City was well represented.
Council Member Zemel then stated he wanted to take the time to thank the staff members and
especially Tom Wood, Deputy City Manager and his efforts and accomplishments. It is a groat time for
the stakeholders of Anaheim, i.e., the taxpayers, rosidents, the business community and especially the
next generotion of Anaheimers. To only stand pat on what Anaheim has to offer in the tourism arona is
to begin to watch the backslide of Anaheim. It was with that thought last August that he signed the ballot
argument in favor of Measuro B. Tonight he is proud and pleased to cast his vote in favor of the
California Adventuro.
Mayor Daly. Before proceeding, he referred to a letter received from Palmieri, Tyler, Wiener, Wilhelm &
Waldron of Irvine dated October 8, 1996 which raises a point about the agroement. He asked if staff was
comfortable with that letter.
City Attorney White. The letter will be entered as part of the record of the proceeding. He confirmed
that staff has had a chance to roview the letter and they aro comfortable with it.
A vote was then taken on Resolution 96R-176 through 96R-179, both inclusive, for adoption.
Roll Call Vote on Resolution Nos. 96R-176 through 96R-179, both inclusive~ for adoption:
AYES:
NOES:
ABSENT:
MAYOR/COUNCIL MEMBERS: Tait, Zemel, Feldhaus, Lopez, Daty
MAYOR/COUNCIL MEMBERS: None
MAYOR/COUNCIL MEMBERS: None
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CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES OCTOBER 8, 1996
The Mayor declared Resolution Nos. 96R-176 through 96R-179, both inclusive, duly passed and
adopted.
Mayor Daly offered Ordinance Nos 5580 and 5581 for first reading.
ORDINANCE NO. 5580: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING
ORDINANCE NOS. 5377 AND 5378 AS PREVIOUSLY AMENDED, RELATING TO THE
DISNEYLAND RESORT SPECIFIC PLAN NO. 92ol, AMENDMENT NO. 3 (CHAPTER 18.78 OF
THE ANAHEIM MUNICIPAL CODE).
ORDINANCE NO. 5581: AN ORDINANCE OF THE CITY OF ANAHEIM (i) APPROVING
DEVELOPMENT AGREEMENT NO. 96-01 BY AND BETWEEN THE CITY OF ANAHEIM AND
WALT DISNEY WORLD CO., A DELAWARE CORPORATION, (ii) MAKING CERTAIN
FINDINGS RELATING THERETO, AND (iii) AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT FOR AND ON BEHALF OF THE CITY.
Before concluding, Mayor Daly again acknowledged the City's outstanding staff led by City Manager,
James Ruth, Assistant City Manager, Dave Morgan, Deputy City Manager, Tom Wood, all City staff and
departments that were involved for the last five years and also the City's consultants who did an
outstanding job. Gary Johnson, Public Works Director and City Engineer will be responsible for
overseeing all the crucial public works that will be necessary to carry out the project. He again thanked
Tom Wood who lived with the project more than anyone else. They were all so concerned when City
Manager Ruth had to undergo bypass surgery but who came back and completed negotiations to bring in
this great project. He again thanked all staff and offered huge congratulations for a job well done. He
looks forward to a short constrection pealed.
By general Council consent, the Council meeting was recessed in order to reconvene the Anaheim
Public Financing Authority Meeting to act on a resolution authorizing the issuance of $560,000,000
aggregate original principal amount lease revenue bonds (Anaheim Public Improvements Project). See
Anaheim Public Financing Authority Meeting minutes this date. (9:45 P.M.)
After recess, Mayor Daly recenvened the City Council Meeting (9:46).
Cl. 114: REPORT ON CLOSED SESSION ACTIONS:
City Attorney Jack White Stated that there are no actions to report.
C2. COUNCIL COMMENTS:
There were no comments.
23
CITY OF ANAHEIMm CALIFORNIA - COUNCIL MINUTES OCTOBER 8m 1996
ADJOURNMENT: By general Council consent, the City Council Meeting of October 8, 1996 was
adjourned (9:47 P.M.). The next regular meeting of the City Council is scheduled for October 22, 1996.
LEONORA N. SOHL
CITY CLERK
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