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2013/03/05ANAHEIM CITY COUNCIL REGULAR MEETING OF MARCH 5, 2013 The regular meeting of March 5, 2013 was called to order at 3:01 P.M. in the chambers of Anaheim City Hall located at 200 Anaheim Boulevard. Present: Mayor Tom Tait and Council Members: Jordan Brandman, Gail Eastman, and Lucille Kring Absent: Council Member Murray Pursuant to Government Code Section 54953, Subdivision (b), the March 5, 2013 Council meeting included teleconference participation by Council Member Kris Murray from: Dupont Circle Hotel, Room Number 816, 1500 New Hampshire Avenue NW, Washington, D.C. The Notice and Agenda was posted at the teleconference location. Any public comment on the agenda from this address was allowed pursuant to Government Code Section 54954.3. Staff Present: City Manager Bob Wingenroth, Interim City Attorney Michael Houston and City Clerk Linda Andal WORKSHOP — WHOLESALE ENERGY PORTFOLIO: Marcie Edwards, Public Utilities General Manager, updated council on the legislative changes taking place in the electric industry. She announced the new and evolving technologies such as solar, wind, geothermal, landfill gas, and biomass set to replace the more traditional fossil fuel technologies used in the industry over the last 50 years, were principally carbon free, could be less expensive to operate and maintain and were regarded as clean energy. These renewable energy fuels were also less reliable and less predictable as energy was only generated when the wind blew or when the sun shined, and were more exposed to rapid technological change. On the other hand, she stated, there were some advancements in fossil fuel such as "fracking" which extracted both gas and oil from shale, however, she acknowledged, fossil fuels also carried far greater legislative and environmental risks. The result of these legislative changes was that public utilities must comply with mandates to increase renewable power and at the same time, reduce greenhouse gas emissions while continuing to operate the system in a reliable and cost effective way. She noted the purpose of this workshop was to show how Anaheim Public Utilities had and planned to continue to operate in a reliable and environmentally sound way and more importantly, in a cost effective manner. Ms. Edwards emphasized there were two legislative bills that seriously impacted utilities: AB32 and SBX12. AB32, also known as the global warming initiative, was signed into law in 2007 and called for a reduction in statewide greenhouse gas to 1990 levels. SBX12, signed into law in 2011 and known as the renewable portfolio standard or RPS, required large investments in renewable energy with the ultimate goal of requiring California utility companies to supply 33 percent of their retail load with renewable resources by the year 2020. Other bills, SB1, the million dollar solar roots bill, required spending another $30 million on solar incentives in the next four years and AB 1890 required greater spending on energy efficiency of $7 to $10 million a year. Another bill, AB1969, a new fee and tariff bill, provided for larger subsidies for those who installed local renewable power. Council Minutes of March 5, 2013 Page 2 of 21 Ms. Edwards indicated the effect of these mandates along with continued and systematic pressure from the legislature made it clear that the goal was less reliance on high content carbon fuels and more reliance on sustainable, renewable fuel sources. Of these laws, she stated, it would have a significant effect on the composition of the resource portfolio over time; there would be reductions in Anaheim's coal portfolio and continued growth in its renewable resources. The AB 32 mandate required major reductions in greenhouse emissions and directly impacted all the Utility Department's fossil fuel resources; i.e., coal and natural gas. She indicated the San Juan Power Plant and the Intermountain Power Plant (IPP) were Anaheim's two coal plants in the energy portfolio and because of AB32, the operation of those resources must be cut by at least 30 percent, if not more. In addition, those resources were also impacted by the California Emissions Performance Standard, SB 1368, which prevented all utilities from investing any financial capital in a coal facility that would result in operations past their normal and useful operating life. In essence, she explained, this meant over the next two decades, Anaheim's coal resources must be phased out and any investments to lengthen their life or increase their output was prohibited under current state law. The renewable portfolio standard mandate, which required 33 percent of Anaheim's retail load be supplied by 2020 for wholesale energy purposes would have a major impact on the city's natural gas resources, i.e., the Magnolia Power Plant in Burbank, the Canyon Power Plant in Anaheim, and the combustion turbine generator (CTG) in Anaheim. These gas powered facilities, she explained, represented a sizable amount of the city's energy portfolio, but since they burned natural gas, their greenhouse gas emission rates were already half that of coal plants and was a positive in lowering the carbon footprint in comparison to coal. A number of other mandates, such as the rooftop solar battery storage, energy efficiency requirements, and fee and tariff laws combined would cost another $14 to $20 million in state mandated energy efficiency costs. Also as a component of AB32, Ms. Edwards pointed out, the cap and trade program was designed to compel a reduction in greenhouse gas emissions over time and achieved this by placing limits on emissions to cap. As time advanced, the cap would gradually be reduced resulting in increasing the cost to operate higher emission resources which in turn would cause agencies to either reduce operations or buy emissions credit from other facilities in order to continue to operate. She indicated this was anticipated to have an annual fiscal impact of between 0 and $5 million annually, pointing out that the staff included zero within that range because it was believed this impact could be managed using a variety of mechanisms. By the year 2020, given the current legislation, Ms. Edwards reported the city's strategy was to transition out of the San Juan coal facility with only the Intermountain Power Plant remaining in the portfolio and subject to the emissions performance standards bill. The cost savings from the San Juan divestiture could then be used to offset the costs for additional renewable power contracts required to meet the 33 percent renewable portfolio standard obligation, and the net effect of the divestiture to the addition of renewable resources in the portfolio in terms of cost should be close to zero. Should the question arise as to why the costs to the overall generation supply portfolio were increasing over $30 million in that same time frame, Ms. Edwards remarked even with zero or close to zero cost for Anaheim's renewable portfolio standard, the customers demand for electricity would continue to increase over time, fuel costs would increase, maintenance costs would increase as facilities aged, and as a result, the overall power supply budget would continue to escalate over time as well. Looking toward 2030 and assuming current mandates were still in effect at their current levels; Ms. Edwards expected to have to transition out of the Intermountain coal plant and with that action, to finally discard the SB 1368 emissions portfolio standard requirement since there would no longer be coal in Anaheim's portfolio. She warned that the legislature was already Council Minutes of March 5, 2013 Page 3 of 21 contemplating a 50 percent renewable target by 2030; however, she believed that increase from 33 percent toward 50 percent would be spread out over the next two decades. If staff's expectations became reality, a portion of the savings from transitioning out of Intermountain coal plant could be used to offset the costs of any additional renewable compliance for customers; however, she remarked, any additional renewable energy past the 33 percent mark would require staff to carefully consider reliability of the electric system. This was because power systems, both local and regional, were built around predictable, sustainable fossil fuels, not intermittent rapidly evolving renewable resources. She added, it was likely Public Utilities would have to consider bringing in more natural gas to offset the loss of Intermountain and the increase of intermittency of supply caused by sizable renewable resources in the energy portfolio. Natural gas generation, she explained, should provide the stability and reliability to the city's electric system. Any new natural gas generation should be built inside the city as it placed far less reliance on the statewide electric system to provide support in the event of major statewide electric emergencies and would give the Department the greatest flexibility to manage customers' needs. With the fact that a new natural gas facility might be an option, Ms. Edwards added in preparation for the potential divestiture of Intermountain Power Plant in 2027, Anaheim Public Utilities had purchased the existing Canyon Power Plant site with enough land to build the second natural gas power plant, when and if it was needed. This second facility would add to the stability and reliability the City needed to maintain effective electric distribution and transmission system. And, in addition to a second natural gas facility at the Canyon site, staff was also evaluating the potential to repower the combustion turbine generator or CTG at Anaheim's Kraemer site. She reported the overall cost of managing the Public Utilities power supply portfolio continued to increase incrementally over time and reflected a slightly higher cost for 2030. To identify what the scenario would be if no actions was taken to mitigate the legislative impacts, she indicated compliance with AB32 emissions reduction legislation could cost roughly about $5 -10 million annually, assuming the City chose to operate under a business as usual mode, but it could easily increase to as much as $20 million or more in the next few years and perhaps much more if one considered penalties for non - compliance. For those reasons, she explained, it was important to have a strategy to mitigate as much of the exposure as possible. However, she emphasized, staff believed this cost exposure could be limited by as much as 70 -80 percent using a combination of measures. Those measures included reduced utilization of the current plants in favor of zero or lower emission resources, expediting the purchase of more renewable power, increasing use of energy efficiency programs which naturally lowered electric demand and therefore emissions that stemmed from demand, and increasing reliance on natural resources which emitted less than half the emissions of coal and divestiture of long -term coal contracts at the optimal time. Ms. Edwards remarked that SBX12 was the second key piece of legislation mentioned earlier, requiring all utilities to incorporate 33 percent of their retail load with renewable power by the year 2020. In order to meet that target, the state also established mandatory interim targets divided into three compliance periods and all utilities must meet those targets in order to avoid the significant financial penalties associated with noncompliance. Currently, she explained, Anaheim contracted enough renewable energy to meet the interim target of 20 percent for the first compliance period which would end December 2013 and was poised to meet the 25 percent interim target for the second compliance period. The department's current renewable budget was roughly $40 million, however, she stated, in order to reach and maintain the 33 percent renewable energy target, the cost of compliance was estimated to grow roughly to $70 million by 2020. Public Utilities strategic approach was to first recommend divestiture of its interests in San Juan coal plant by 2017 which should provide sufficient savings to offset the Council Minutes of March 5, 2013 Page 4 of 21 majority of additional $30 million in expected RPS costs without significant impacts to the budget. The next step was to recommend Anaheim exit Intermountain Power Plant on or before 2027 and replace it with local gas fired generation as well as more renewables. The current IPP contract would end in 2027 and now as a result of SB1368, Anaheim was prohibited from adding or extending the contract which left no choice but to divest; but again, she emphasized, only at the opportune time and not before. When that occurred, the intent was to replace a portion, if not all, with gas -fired generation local to Anaheim. This would help provide increased grid interdependence from the regional grid and lessen reliance on that same grid during emergency blackout conditions. Also, she added, the addition of newer generation resources would further reduce the legislative risks associated with having to retrofit older assets with expensive emissions management equipment as emission standards continue to escalate. Finally, she reported, local resources helped to offset costs charged by the statewide grid operator when Public Utilities imported energy from outside Anaheim. The Department also planned to pursue short term renewable investments to take advantage of reducing costs as technology matured as well as better manage the risks of rapidly involving technology. She added staff felt it was important to not lock into renewable technology which could become obsolete in the matter of a few years; which was why they intended to enter into small short- term contracts over the coming years to afford the greatest flexibility to manage resources in the most efficient and cost effective way. Ms. Edwards indicated the shift toward renewable technology was driven by these legislative mandates as well as the need to reduce dependence on the high concentration of out of state generation. Staff's original estimated long -term rate impact of transitioning away from coal and meeting state mandates was roughly a 12 to 17 percent increase over time. She explained the Department could take advantage of the current renewable market via short -term contracts as well as use the operational techniques outlined to meet current mandates and that the rate impact would range between seven to 12 percent across the next decade rather than the 12 to 17 percent which had previously been estimated. Recognizing that these estimated rate impacts were subject to variability, Ms. Edwards stated staff believed the rate impact to Anaheim's customers could be minimized with the strategy outlined today and would keep Anaheim competitive and the lights on. She ended the presentation emphasizing that any subsequent actions that involved divestitures, purchase of renewable energy or construction of new projects would be brought forward for council review and discussion on a case -by -case basis. Council Member Brandman inquired what was happening with the San Onofre Nuclear Generating Station (SONGS). Ms. Edwards remarked the San Onofre facility was owned by a consortium of agencies, Edison, San Diego and Riverside, in addition to several other smaller entities. In 2007, staff recommended and council accepted a plan to extricate the city from the three percent share that was held in the San Onofre facility offered because the consortium of owners wanted to make a substantial $700 million investment in generators and turbines and that large capital project opened up an escape hatch for any shareholder who wanted to take advantage of it. At the same time, she stated, Anaheim Public Utilities was under pressure to increase the amount of renewables in the energy portfolio but there was no room to add a power resource unless something was dropped and the City, therefore, exercised their option to separate. Since that time, the $700 million investment had been made in San Onofre but a variety of problems with tube wear occurred and the facility had been offline since January 2012. She added Edison was working hard to get the plant back online and they believed they had a plan to offset the potential for tube wear. At this point, Ms. Edwards remarked, Anaheim's involvement was limited to the plant being decommissioned, all of which was fully funded with no further dollar commitment necessary on Anaheim's part. Council Minutes of March 5, 2013 Page 5 of 21 Mayor Tait remarked it would be helpful for the general public to have access to this information, with Ms. Edwards indicating the presentation and text would be placed on the City's website. ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None City Clerk, Linda Andal, reported that Council Member Murray joined the meeting, via teleconference at 3:26 P.M. and would be present for the Closed Session agenda. Council Member Murray indicated there were no comments related to the Closed Session agenda from the teleconference location. At 3:27 P.M., Council recessed to closed session for consideration of the following items: CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of Case: Carlos Quezada v. City of Anaheim, Orange County Superior Court Case No. 30 -2012 00556997 2. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of Case: Moreno et al. v. City of Anaheim, Orange County Superior Court Case No. 2012- 00579998 3. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the Government Code) Agency designated representative: Kristine Ridge Name of employee organizations: Anaheim Police Association & International Brotherhood of Electrical Workers, Local 47 At 5:02 P.M., the City Council session was reconvened with Mayor Tait remarking Council Member Murray was participating in the council session via teleconference and would continue to participate in the public meeting from her teleconferenced location, as noticed. Invocation: Senior Pastor Joseph Grana, Anaheim First Christian Church Flag Salute: Council Member Jordan Brandman Presentations: Recognizing the 2012 Eagle Scouts from the City of Anaheim Mayor Tait remarked his son was one of the Eagle Scouts being recognized by the city, although he was away at college and unable to attend this meeting. Rita Burgueno, El Capitan Senior District of the Boy Scouts of America, explained the process to become an Eagle Scout, remarking these young men joined an elite group that included Bill Gates, Neil Armstrong and Sam Walton. Jorge Ruis de Somocurcio, Boy Scouts of America, then introduced the 2012 Eagle Scouts. Recognizing the Next Up Foundation for their contributions to the Boys and Girls Clubs of Anaheim Council Minutes of March 5, 2013 Page 6 of 21 Michael Baker, Boys and Girls Club, announced that Vinicius Tinoco and Andre Genovesi had offered their skateboard expertise to the kids at the Boys and Girls Club. Through a partnership between the City and the Boys and Girls Club, the skate park was now well attended and the Next Up Foundation operators taught kids the basics of skateboarding as well as life skills. Vini Tinoco accepted this recognition stating the goal of the skateboarding program was to help kids restructure their lives and to create well- rounded children who will inspire others to think for themselves and understand wrong from right. With the success of that program, similar operations had now been expanded to Santa Ana and Long Beach. Andre Genovesi expressed his appreciation to the city for this recognition. Acceptance of Other Recognitions (To be presented at a later date): Recognizing March 2013, as American Red Cross Month Recognizing March 2013, as National Women's History Month Recognizing "The Courage to Remember' Holocaust Exhibit On behalf of the National Organization of Women, an unidentified speaker thanked council for bringing awareness to National Women's History Month. Doug Watson, Desert to the Sea Chapter of the American Red Cross, thanked council for recognizing Red Cross Month, and to highlight the many services offered during emergency situations nationwide and in support of veterans and active military personnel and their families. ADDITIONS /DELETIONS TO THE AGENDA: A revised fee schedule, (Exhibit C -1) was submitted to council and made available to the public consistent with the contract amendment. PUBLIC COMMENTS (all agenda items, except public hearings): Cecil Jordan Corcoran, Outreach Homeless Ministries, reported drug trafficking was occurring on the Danbrook High School grounds. Joanne Sosa, ESCRE (East Street Community Renewal Initiative) announced a fund - raiser would be held on April 6 th to celebrate the 30 anniversary of the Eli Home for Abused Children. She also extended an invitation to the community to YOLO (You Only Live Once), the first Anaheim Business Cares event scheduled for April 20 at Freedom Bible Church. Seferino Garcia, resident, spoke in support of Item No. 15 on the agenda, requesting funding for the Mayor's assistant to complete the fiscal year. He also encouraged city recognition of the Cesar Chavez state holiday on March 31. An unidentified speaker remarked he had been pulled over by an unmarked vehicle with a red light and assaulted by men in uniform and with batons. He believed the assailants had targeted him and were masquerading as law enforcement personnel. Mayor Tait would follow up with Chief Welter regarding this incident. Corie Kline announced her mother, Kathy Whitehouse had passed away, attributing the cause of death to her mother's grievance over the loss of her son, Joe Whitehouse in 2007, in a police - officer involved shooting. Council Minutes of March 5, 2013 Page 7 of 21 Sonia Hernandez indicated there would be a community gathering on March 6 in the Ponderosa neighborhood for her brother Martin Angel Hernandez, a day of remembering and hoping there would be no harassment of those in attendance. Genevieve Huizar, resident, remarked the community was outraged over the report findings issued by the Orange County District Attorney's office on police officer involved shootings, and recommended the Federal Bureau of Investigation become involved. James Robert Reade stated the Eastside street gang had no future in Anaheim, emphasizing his website www.manuelangeldiaz.com reflected that viewpoint. Carolyn Carpenter, Anaheim YMCA, thanked council and the community for their support of the YMCA and for helping construct a third playground in Schweitzer Park through KaBoom efforts. She announced a Good Friday breakfast to be held on March 29 at the Marriott, inviting all to attend. Michael Baker, Boys and Girls Club, announced an upcoming major fund raiser on April 6 at the Disney's Grand California. He expressed his appreciation to council and staff for the care and concern for his and other non - profit organizations in the city. Christopher Perry spoke on behalf of residents of Walnut Street whose peace was disturbed on January 20 at 5:45 a.m. as a marathon race took place. He emphasized the problem was not that the race took place, but that it began at 5:45 a.m. rather than 7 a.m. in a local neighborhood on a Sunday morning. Liz Garcia, salon owner on Center Street, distributed flyers for Remedy Hairshop, within walking distance of City Hall, stating she looked forward to being part of the redevelopment in downtown Anaheim. Dorothy Rose, Orange County Symphony, invited the community to a concert on March 17 at Servite High School which would highlight the wind symphony ensemble, a group so extraordinary they had been invited to perform at Carnegie Hall. Michael Buss, addressing council as a resident, spoke in support of Item No. 15, approving a budget addition to allow the Mayor's assistant to remain during the rest of this fiscal year. Speaking on behalf of the Anaheim Arts Council, he announced a public discussion on after school arts programs on Thursday, March 7 specific details to be found on the website, www.anaheimartscouncil.com. Juan Alvarez, South Jr. High School, invited the public to attend and participate in a neighborhood cleanup at the Ponderosa Family Resource Center. The City was providing a dumpster at the park parking lot and all families were welcome to throw away any unwanted items. This event was scheduled on March 30 from 9 A.M. to 12 noon. Patricia T., a parent, spoke on behalf of a program at South Jr. High School, one of the largest schools in the city with 1,600 students and hoped to receive assistance from the city. Their recycle program was underway and blue and green recycle bins were needed to teach the students to separate bottles and food waste from the trash. The waste would be used in composting and the bottles would be turned in to fund school programs. The school also had a sustainable garden and parents hoped to build a fish pond and a solar cell water fall and windmill. In addition, this speaker requested the city's help with security cameras in the school to reduce violence and drug trafficking. Council Minutes of March 5, 2013 Page 8 of 21 Pastor Joaquin Garcia addressed Item No. 15, asking that council reconsider their earlier decision on budget cuts and fund the full year for the Mayor's assistant. Teri, Orange County resident, supported peaceful protest as do the families of Manuel Diaz, Joel Acevedo, Martin Hernandez, Joe Whitehouse, Cesar Cruz and Roscoe Cambridge, all fatalities resulting from police officer involved shootings. She added protesters were using cameras and cell phones to document protests. German Santos, resident, spoke out against police brutality and racial bias countywide Jean Thaxton remarked her group was not promoting violence but was looking for answers and solutions and protesting for changes to the status quo. For more details, visit www.michaelnida.com She also objected to statements made by James Robert Reade and wondered how such intimate gang details were available to him. Danny Ramirez, Hollydale, remarked that March 6th marked a one year anniversary since the death of Martin Angel Hernandez and the community would be celebrating his life on that day and hoped there would be no interference from the police department. Renee announced the community continued to fight for change, accountability, justice and full public transparency. They were peaceful protesters with the goal of empowering the community and would document and film all interactions with law enforcement. Donna Acevedo remarked she had been pulled over for an expired license tag at the end of February, asking why it took four officers to give her a citation, alleging ongoing harassment from the police department. Theresa Smith remarked she had read an article over the weekend regarding a lost gun by District Attorney Tony Rackauckas who reported it to the Anaheim Police Department in 2009. She stated a 23 year veteran Anaheim officer took the report, followed proper procedures and eventually lost his job with the city after he turned his evidence over to the assistant attorney general because he believed something did not add up. She fully supported a civilian oversight committee to insure procedures were followed regardless of political consequences. William Fitzgerald took issue with Mills Act recipients alleging improprieties. Mayor Pro Tem Eastman remarked the city manager was aware of the issue brought up by Donna Acevedo and had met with Chief Welter. Mr. Wingenroth stated the traffic stop was legal in response to a 911 call. On other occasions, interactions with Ms. Acevedo and police officers involved bull horns used to engage and confront officers with accusations and the police chief and deputy chief were now working with officers and encouraging them to remain professional and patient with these groups and with these types of interactions. He remarked citizens who interfered with the officer's performance of their duties were strongly discouraged from doing so. The city manager added he was heartened to hear about earlier discussions regarding peaceful protests. Council Member Murray reported there were no speakers from the teleconference site to offer comments. CONSENT CALENDAR: Council Member Brandman requested Item Nos. 8 and 15 be removed from the consent calendar for further discussion and Mayor Pro Tern Eastman Council Minutes of March 5, 2013 Page 9 of 21 requested Item No. 6 be removed as well. Mayor Tait declared a potential conflict of interest on Item No. 8 as his firm had worked with Orange County Transportation Authority. Council Member Kring moved to waive reading in full of all ordinances and resolutions and to approve the balance of the consent calendar as presented, seconded by Mayor Pro Tem Eastman. Voice Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray) Noes — 0. Motion Carried. B105 1. Receive and file minutes of the Library Board meetings of December 10, 2012 and January 14, 2013 and Sister City Commission meeting of November 26, 2012. 2. Determine on the basis of the evidence submitted by Kaiser Foundation Hospitals, that the property owner has complied in good faith with the terms and conditions of AGR -4957 Development Agreement No. 2007 -00003 for the 2011 -12 review period for the development of the Kaiser Hospital Campus located at 3400 East La Palma Avenue. 3. Accept the bids and authorize master agreement purchase orders to eight suppliers, in an aggregate amount not to exceed $680,000 (including tax), for aircraft parts and repair D180 services for the Police Air Support Division for a one year period with four one -year optional renewals, and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #7800 and #7826 (Vector Aerospace Helicopter Services, Southwest Airmotive Corp., Dallas Airmotive, American Eurocopter, Advanced, Tom's Aircraft Maintenance, Pratt & Whitney Component Solutions, Heli -Mart). 4. Accept the lowest responsive bid and approve an agreement with Universal Building Maintenance, LLC, in the amount of $841,564, for custodial services for a one year AGR -7484 period, with up to six one -year optional renewals, and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #7807. 5. Waive Council Policy 4.0 and approve the Letter Agreement and Schedule A with LexisNexis Corporation, in the annual amount of $31,200, for continued online AGR - 3164.6 computerized search services to assist in criminal investigation, and authorize the Chief of Police to execute the agreement and any related documents, and take the necessary actions to implement the agreement, and any subsequent renewals. 7. Approve the First Amendment to Agreement with David Taussig & Associates, Inc., extending the agreement for an additional three years at a fixed annual cost of $67,000 AGR- 7179.1 for district administration services for the City's Community Facilities Districts and the Anaheim Resort Maintenance District. 9. Approve and authorize the City Manager, or his designee, to execute the First AGR- 7160.1 Amendment to CalWORKs Vocational Training Program Vendor Agreement with Medtech Educational Services for individuals receiving services through the Anaheim One -Stop Center (AnaheimJobs). 10. RESOLUTION NO. 2013 -036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting temporary closures to Caltrans State Route 57 8100 northbound off -ramp for the Angels Foundation 5K and Fun Run (northbound off -ramp at Katella Avenue; March 30, 2013). Council Minutes of March 5, 2013 Page 10 of 21 11. RESOLUTION NO. 2013 -037 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM authorizing the destruction of certain city records more than two years old (Audit Division). 12. ORDINANCE NO. 6270 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending subsection 18.108.040.020 of Chapter 18.108 of 0420 Title 18 of the Anaheim Municipal Code, relating to Specific Plan No. 90 -1 for the Anaheim Hills Festival (Specific Plan Amendment No. 2012 - 00064) (Introduced at the Council meeting of February 19, 2013, Item No. 14). ORDINANCE NO. 6271 (ADOPTION) AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Ordinance No. 5110, relating to Specific Plan No. 90 -1 for the Anaheim Hills Festival (Specific Plan Amendment No. 2012- 00064) (Introduced at the Council meeting of February 19, 2013, Item No. 14). 13. ORDINANCE NO. 6272 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Adjustment No. 12 to the northeast area Specific C420 Plan No. 94 -1 and amending subsection 18.120.100.050 of Chapter 18.120 of Title 18 of the Anaheim Municipal Code relating to the conversion of a freestanding full - service restaurant to a nightclub within the commercial area (Development Area 5) (Specific Plan Amendment No. 2012 - 00063) (Introduced at the Council meeting of February 19, 2013, Item No. 15). 14. ORDINANCE NO. 6273 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 C280 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2012 - 00251; DEV2012- 00143; 1256, 1266, 1272, 1280 -90 East Lincoln Avenue and 113, 115 and 117 South Fahrion Place). END OF CONSENT CALENDAR: 6. Ratify the master agreement issued to Marina Landscape Maintenance, Inc., in an amount not to exceed $987,200, for landscape maintenance services in the west sector AGR -7485 of the Anaheim Resort Maintenance District, for a one year period with up to four one - year optional renewals, and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #7834. To answer frequent questions posed to city council as to why the resort area received more funding than other areas of the city, Mayor Pro Tem Eastman asked that a staff report on this item be given. Natalie Meeks, Public Works Director, explained when the resort area was updated with additional landscaping, sidewalk and lighting improvements, a maintenance district was implemented as well to maintain those improvements. The funding of the maintenance district was through fees levied to each property owner in the district and, consequently, the Resort Area continued to look as good as it did after construction. Action on this item, Ms. Meeks noted, would ratify the master agreement to Marina Landscape Maintenance specifically for landscaping maintenance services in the west sector of the Resort Maintenance District. Council Minutes of March 5, 2013 Page 11 of 21 Mayor Pro Tem Eastman moved to approve Item No.6, seconded by Council Member Murray. Voice Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray. Noes — 0. Motion Carried. 8. Approve the Fifth Amendment to Agreement with KPMG expanding the scope of work AG R-5089.5 and increasing compensation by an additional $500,000 to a not -to- exceed amount of $2,680,000 for management consultant and financial advisory services for the ARTIC project, and authorize the Public Works Director to approve additional expenditures up to 15% of the total maximum if additional services are needed to complete the project. At 6:43 P.M., Mayor Tait reported a potential conflict of interest on this item and excused himself from the dais. Mayor Pro Tem Eastman requested a staff report on this item. Natalie Meeks, Public Works Director, reported action on Agenda Item No. 8 was to amend an existing contract with the firm of KPMG, who provided a vital service on the Anaheim Regional Transportation Intermodal Center ( ARTIC) project as financial advisor throughout the development of the project. Currently, the process included finding an operating and maintenance firm for the ARTIC project when completed and to ensure the general fund would not have to contribute towards that service, staff was working with KPMG to find a cost neutral revenue and expense model to be bid out to the maintenance and operating community. The requested action on this item would expand KMPG's scope of work by an additional $500,000 and would ensure ARTIC would be maintained in the future without the need for supplemental city general funds. Council Member Brandman requested an update on the ARTIC project with Ms. Meeks replying much of the foundation and base work had been done, the utilities component was underway and anticipation was that construction on the facility itself would occur later this year. Council Member Brandman then moved to approve Item No. 8, seconded by Mayor Pro Tem Eastman. Voice Roll Call Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and Murray.) Noes — 0. Abstention — 1: Mayor Tait. Motion Carried. 15. Amend the appropriation for part-time labor within the City Council fiscal year 2012/13 D116 budget by $40,000. Mayor Tait began discussion on this item, stating he had requested this item be brought before council for consideration as his personnel budget had been cut by 40 percent by council majority at the time of the budget hearings in June, 2012. He explained this budget reduction effectively shortened his assistant's tenure with the city effective March 7, 2013 and explained the impacts of that action. A survey of cities comparable to Anaheim revealed the following: Oakland's mayor had nine full -time staff with the top aide receiving $100,000 annually; San Jose's Mayor had 17 full -time staff members, with the top aide receiving $125,000 annually and Sacramento's Mayor had three full -time staff members with the top aide receiving $110,000 annually. Riverside, smaller in size compared to Anaheim, had six full -time mayoral aides with a top salary of $106,000 and Long Beach had six full -time mayoral aides with a top salary of $110,000. In comparison, he emphasized, Anaheim had one part-time mayor's assistant with a salary of $39,780 this fiscal year, but in the previous five years, that same position reflected $65,000 annually. Mayor Tait highlighted the background and experience of his assistant, remarking she was extremely qualified and experienced and was a bargain at her previous salary of $65,000. Mayor Tait then Council Minutes of March 5, 2013 Page 12 of 21 respectfully requested his assistant be allowed to stay for the remainder of the fiscal year, remarking that necessary funding had been identified in the City Manager's budget for this purpose. He then moved for approval of Agenda Item No. 15. Receiving no second to the motion, the motion failed. 16. Form a Housing Element Ad Hoc Committee, to be comprised of ten City Council B105 appointees (Continued from Council meeting of February 19, 2013, Item No. 19). Appoint one resident and one stakeholder to the Housing Element Ad Hoc Committee. Sheri Vander Dussen, Planning Director, remarked the city recently began updating the General Plan Housing Element, reporting state law required municipalities to take this action prior to October 15th of this year. As part of this effort, staff was planning numerous public outreach events, including a series of community workshops beginning this spring. Staff was also recommending the formation of a ten member housing element ad hoc committee in order to encourage a broad range of input recommending each council member appoint one Anaheim resident, and one stakeholder (not necessarily residing in Anaheim) to this committee. Ms. Vander Dussen indicated a similar committee was formed in 2007 when the Housing Element was last updated and found that the committee provided valuable input on behalf of the community and the various stakeholders. If formed, this committee would assist in the review and preparation of the Housing Element, helping to insure the final document accurately reflected the city's vision for future housing development within Anaheim. Mayor Pro Tern Eastman moved to establish a housing element ad hoc committee with each council member appointing two members as recommended by staff, seconded by Council Member Kring. Voice Roll Call Vote: Ayes — 5: (Mayor Tait, Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion carried. The mayor and council members appointed the following members to the Housing Element Ad Hoc Committee: Mayor Tait Appointments: Appointment: John Leos (Resident) Appointment: Je'net Kreitner (Stakeholder) Mayor Pro Tern Eastman Appointments: Appointment: AB Abdulrahman (Resident) Appointment: John O'Brien (Stakeholder) Council Member Murray Appointments: Appointment: Kelly Buffa (Resident) Appointment: Michael Promo (Stakeholder) Council Member Brandman Appointments: Appointment: Grant Henninger (Resident) Appointment: Phyllis Greenberg (Stakeholder) Council Member Kring Appointments: Appointment: Candice Richardson (Resident) Appointment: Greg McCafferty (Stakeholder) Council Minutes of March 5, 2013 Page 13 of 21 17. RESOLUTION NO. 2013 -038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, amending and restating the rules and B105 procedures establishing and governing the Citizens Advisory Committee on Elections and Community Involvement. Appoint a subcommittee composed of Council Members Jordan Brandman and Lucille Kring to select new members to fill unscheduled vacancies of Committee members that were appointed by former Council Members. Greg Garcia, Deputy City Manager, announced this item was an amendment to the resolution pertaining to the Committee on Election and Community Involvement and the staff recommendation for the establishment of a subcommittee in order to fill unscheduled vacancies of committee members that were originally appointed by former council members. On February 26, 2013, the city received a notice of resignation from committee member Peter Agarwal, originally appointed by former council member Harry Sidhu. Since the resolution did not provide direction on how to fill vacancies of committee members originally appointed by former council members, staff recommended amendments to the resolution that would allow the entire city council to select replacement members in those circumstances. Alternatively, he explained, the amendment would allow council to appoint a subcommittee composed of two members of the city council that would be authorized to replace members that have resigned. He added staff recommended council approve the amendments as described in the resolution and appoint a subcommittee composed of Jordan Brandman and Lucille Kring to select new members to fill unscheduled vacancies if committee members were appointed by former council members. This would allow for Council Members Brandman and Kring the opportunity to jointly appoint members to the committee since they were not in office when the committee was established. Council Member Eastman moved to approve RESOLUTION NO. 2013 -038 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, amending and restating the rules and procedures establishing and governing the Citizens Advisory Committee on Elections and Community Involvement, which was seconded by Council Member Kring. Voice Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. PUBLIC HEARINGS: Mayor Tait remarked the two public hearings, Item Nos. 18 and 19, would be conducted separately, however one oral staff presentation would relate to both properties. He indicated Council had received a written staff report for each of the proposed acquisitions and the respective written reports and oral staff presentation would be deemed part of the record for each of the two hearings. Natalie Meeks, Public Works Director, reported the resolutions for Item No's. 18 and 19 were for the acquisition of right of way necessary for the construction of the Katella Avenue Improvement Project 1A (from State College Boulevard to Lewis Street). The proposed project would accommodate four thru -lanes and include new sidewalks, driveways, curb and gutter, traffic signal improvement, landscaped medians and parkways, drainage improvements and pavement resurfacing. She stated the project would relieve existing and future traffic congestion and enhance aesthetics by implementing design features of the Platinum Triangle Master Land Use Council Minutes of March 5, 2013 Page 14 of 21 Plan. The project had been environmentally cleared through EIR No. 339 with construction scheduled for the summer. She added the construction schedule was critical for funding requirements and overall plan implementation and coordination with other projects. The first hearing for agenda Item No. 18 was for property located at 1701 E. Katella Avenue and included acquisition of a permanent roadway and public utility easement and a temporary construction easement. An offer based on fair market value was made to the property owner and staff had been communicating with their representatives, however, they had been unable to obtain an executed acquisition agreement. Ms. Meeks stated staff recommended council adopt the resolution of necessity to move the acquisition forward and maintain the construction schedule. The second hearing, Agenda Item No. 19, was for property located at 1801 S. State College Boulevard and included acquisition of a permanent roadway and public utility easement and a temporary construction easement. An offer based on fair market value was made to the property owner and although staff had been communicating with the representative, they were unable to obtain an executed acquisition agreement. Again, staff recommended council adopt the resolution of necessity to move the acquisition forward and maintain the construction schedule. 18. This is a public hearing to consider a resolution to determine the public interest and necessity for acquisition of portions of property located at 1701 East Katella Avenue for P121 the Katella Avenue Improvement Project 1A. RESOLUTION NO. 2013 -039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for acquisition of portions of property located at 1701 East Katella Avenue for the purposes of the Katella Avenue Improvement Project 1A (R/W ACQ2011- 00410). Mayor Tait set the ground rules and timelines for the public hearings, remarking testimony would be limited to the following five issues only: that the public interest and necessity require the project, that the project was planned and located in a manner that would be most compatible with the greatest public good and the least private injury, that the properties sought to be acquired was necessary for the project, that the offer required by government code section 7267.2 was made to the owner or owners of record and that the city met all other prerequisites to the exercise of eminent domain in connection with the property. The public hearing for Item No. 18 was opened. No owner or representative of 1701 E. Katella Avenue offered comments. William Fitzgerald, Anaheim Home, stated the use of eminent domain was not in the public interest or for the greater good of Anaheim and opposed this action. No others offered comments, from either the council chambers or the teleconference location. Mayor Tait closed the public hearing. Mayor Pro Tern Eastman moved to approve RESOLUTION NO. 2013 -039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for acquisition of portions of property located at 1701 East Katella Avenue for the purposes of the Katella Avenue Improvement Project 1A, seconded by Council Member Kring. Council Minutes of March 5, 2013 Page 15 of 21 Voice Roll Call Vote: Ayes — 5: (Chairman Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. 19. This is a public hearing to consider a resolution to determine the public interest and necessity for acquisition of portions of property located at 1801 South State College P121 Boulevard for the Katella Avenue Improvement Project 1A. RESOLUTION NO. 2013 -040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for acquisition of portions of property located at 1801 South State College Boulevard for the purposes of the Katella Avenue Improvement Project 1A (R/W ACQ2011- 00412). Mayor Tait reiterated the guidelines for receipt of public testimony and opened the public hearing. No property owner or representative of 1801 S. State College Boulevard offered comments. William Fitzgerald, Anaheim Home, restated his earlier comment that Agenda Item Nos. 18 and 19 were not for the greater good of Anaheim and should not be approved. No others offered comments, from either the council chambers or the teleconference location. Mayor Tait then closed the public hearing. Council Member Kring moved to approve RESOLUTION NO. 2013 -040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for acquisition of portions of property located at 1801 South State College Boulevard for the purposes of the Katella Avenue Improvement Project 1A, seconded by Mayor Pro Tern Eastman. Voice Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring, and Murray.) Noes — 0. Motion Carried. At 7:16 P.M., Mayor Tait indicated he had a potential conflict on Item No. 20 and turned the gavel over to Mayor Pro Tern Eastman. 20. CONDITIONAL USE PERMIT 2008- 05372A VARIANCE NO. 2012 -04917 OWNER: Daniel Akarakian, 7343 Trask Avenue, Playa Del Rey, CA 90293 C220 APPLICANT: Mike Snyder, Ware Malcomb, 10 Edelman, Irvine, CA 92618 LOCATION: 5635 East La Palma Avenue To amend a previously- approved conditional use permit that allowed the construction of a 10,000 square foot commercial building in order to permit the construction of an approximately 3,900 square foot drive through restaurant in conjunction with a 4,875 square foot retail building. The project also includes a variance request to modify a legal nonconforming freestanding sign. Environmental Determination: The proposed action is Categorically Exempt from the requirement to prepare additional environmental documentation per California Environmental Quality Act (CEQA) Guidelines - Class 3 (New Construction or Conversion of Small Structures). ACTION TAKEN BY THE PLANNING COMMISSION: Approved Conditional Use Permit No. 2008- 05372A with an added condition of approval requiring the submittal of an on -site circulation plan to be reviewed and Council Minutes of March 5, 2013 Page 16 of 21 approved by staff. Approved Variance No. 2012 -04917 in part, approving the installation of four tenant panels on the existing freestanding sign but denying the electronic readerboard component (VOTE: 4 -1: Chairman Ramirez and Commissioners Faessel, Lieberman and Persaud voted yes. Commissioner Bostwick voted no. Commissioners Agarwal and Seymour were absent) (Planning Commission meeting of January 14, 2013) (Appealed on January 23, 2013 by DeBeikes Investment Company, Agent for Bayport Imperial Promenade Associates, LP) RESOLUTION NO. 2013 -041 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM denying that portion of Variance No. 2012 -04917 relating to the request to install an electronic reader -board sign in place of an existing freestanding sign; approving that portion of Variance No. 2012 -04917 relating to the installation of sign cabinets on an existing freestanding sign; and approving an amendment to Conditional Use Permit No. 2008 -05372 (DEV2009- 0042A; 5635 East La Palma Avenue). Sheri Vander Dussen, Planning Director, reported this item related to the construction of a new McDonald's drive - through at the Cinema City Theater sit on La Palma Avenue. In 2009, the City approved a conditional use permit allowing a new 10,000 square foot building on this site which included a mix of retail and restaurant space, including an additional 1,500 square feet of outdoor dining area. The approval also allowed a reduction in the number of parking spaces required by Code and required improvements to the parking structure and pedestrian walkways to encourage the use of the parking structure. She explained the construction was not done and the applicant had not implemented the permit. Last December, the Planning Commission approved an amendment to the conditional use permit which would reduce the size of the building from 10,000 to 5,000 square feet and allow construction of a 3,900 square foot McDonald's drive - through restaurant. The Commission also approved modifications to the existing movie theater marquee sign. She stated the Commission's decision was appealed by representatives of the adjacent Imperial Promenade Shopping Center. Providing background detail, Ms. Vander Dussen indicated the movie theater had been expanded and the parking structure constructed in 1991 and as part of this expansion, a 20 percent reduction in parking was allowed. The approval of the retail building in 2009 also included a parking variance which permitted a 17 percent reduction in the required parking. The current proposal included a request for a reduction in required parking spaces which, she emphasized, was within the scope of the parking variance originally approved for the retail building and the applicant was proposing a combination of improvements including way- finding signs, pedestrian walkways, and landscaping and awnings to draw movie patrons to the parking structure. The Cinema City and Imperial Promenade properties share access to La Palma Avenue. The appellant believed that the McDonald's restaurant would create traffic impacts on each of these properties and on the adjacent streets. The appellant also stated that a vehicle stacking issue would occur in the shared driveway which could deter customers from patronizing businesses within the Imperial Promenade Shopping Center. Ms. Vander Dussen remarked the City's General Plan required preparation of a traffic impact analysis if new development was forecast to generate 100 or more peak hour vehicle trips in the morning or evening. As this proposal exceeded this threshold, an analysis was prepared which showed the development would reduce the size of the approved building and associated outdoor dining space, resulting in 50 fewer peak hour trips in the morning and 12 additional peak hour trips in the evening. Because there would not be a significant change in vehicle trips, the Planning Commission found that the Council Minutes of March 5, 2013 Page 17 of 21 proposed development would not create any additional traffic impacts to either property. However, the analysis did recommend that the southbound lane of the main driveway exiting onto La Palma Avenue be re- striped to more clearly identify how to make left turns out of the site, noting this striping improvement was included as a condition of approval. The Planning Commission also added a condition of approval requiring the applicant to submit a more detailed plan identifying improvements to the on -site circulation designed to direct motorists to the parking structure and improve the flow of traffic to and from the site. Regarding signage, Ms. Vander Dussen remarked Cinema Theatre also proposed to add an electronic reader board and cabinet signs to the existing freestanding sign. Although the appellant did not express concerns regarding the proposed sign modifications, Ms. Vander Dussen pointed out, the Zoning Code required Council to consider the entire scope of the project upon appeal. She pointed out the existing sign was a legal, non - conforming structure as it was taller than permitted by current Code standards and any change to the sign would require a variance. She added the property was located in the Scenic Corridor Overlay Zone, which included most of the city east of the 55 freeway and although reader board signs with manually - changed letters were permitted within that zone corridor, electronic reader board signs were not permitted in order to preserve the area's visual character. She further added as variances could only be used to provide relief from a development standard, and not to approve prohibited uses, the Planning Commission could not approve the proposed electronic reader board and the Code must be amended to remove this restriction if an electronic reader board was allowed. The sign variance, she further explained, would allow the applicant to replace a section of the existing freestanding marquee with four tenant panels to provide identification for the drive - through restaurant and businesses in the retail center. Because this property had a lot of width that was much narrower than similarly zoned properties in the vicinity, the proposed commercial building was perpendicular to the street, limiting the visibility of the wall signs from cars travelling on La Palma Avenue. The Planning Commission found that the deep and narrow shape of this property created a special circumstance that denied this property owner the same opportunity for business identification that other properties in the vicinity had and approved the tenant identification signs. She noted the appellant expressed concerns regarding traffic and circulation at the Planning Commission meeting and the Commission found the project would not increase traffic congestion on this property, and would not impede vehicular access to and from adjacent properties. The Commission also added a condition of approval to help ensure the proper flow and direction of traffic in and out of the property. She ended her presentation indicating staff recommended Council deny the appeal and uphold the Planning Commission's decisions. Mayor Pro Tern Eastman opened the public hearing, setting rules and timelines for discussion. Britanny Debeikes, representing Imperial Promenade & Associates, owner of the shopping center located adjacent to and sharing a single access point west of the Cinema City property. She indicated 80 percent of future McDonald customers were expected to use the right turn only exit in the far corner, labeled as the secondary exit in the traffic study. She believed this assumption was incorrect and the customers would not head towards the 91 freeway or to Imperial Highway and neighborhoods on La Palma. Secondly, the Planning Commission never reviewed a traffic circulation study that presented solutions to an inevitable increase in trips and traffic at the intersection of La Palma and Imperial. Her third point was that 21 local business owners that operated their stores in the Imperial Promenade center had called with concerns as to how the incoming traffic generated by a new McDonalds would be handled in an already busy Council Minutes of March 5, 2013 Page 18 of 21 shopping center. She asked council to consider returning this matter to the Planning Commission for further review with accurate information using reasonable assumptions and to allow the proper time and analysis to identify specific solutions to a circulation issue that seemed inevitable in their opinion. Pete Mitchell, representing the applicant, remarked this project was brought forward for consideration in 2009 and at that time the Planning Commission nearly unanimously approved the project, along with the city council. He pointed out Cinema Theatre had remodeled with stadium seating, allowed food to be taken into the theater by patrons, added digital projection and other improvements which made it one of the flagship, successful theaters. The large and under - utilized parking structure in the back of the center would add relief to parking problems and free marketing would be offered to business owners. The addition of a McDonalds was seen as an economic advantage, with customers using a new ingress and egress point to allow traffic to flow quickly. The KFC business owner and tenant at Imperial Promenade, stated the shopping center already had congestion and businesses were affected with the present traffic and existing parking conditions. The new project would bring more traffic, more parking problems and hurt businesses and he pointed out, the parking structure had been in place for many years and had never helped with the parking situation as it was more convenient for patrons to seek parking close to the businesses they visited. He asked that the project be denied. Rudy Dimitri, student at Canyon High School, remarked students frequented the plaza for food and movies and he had never used the parking structure in the back. It was his experience that the center was always crowded and parking was difficult. He believed the project would add more problems to the neighboring areas. An unidentified speaker recommended that this project go back to the drawing board and postpone the hearing between the property owners and the city to come up with a solution that would satisfy all. William Fitzgerald objected to this project stating the movie theater front lot was always full forcing illegal parking on neighborhood businesses. Pete Rizutto, appellant traffic engineer, remarked that based on his findings, the intersection at La Palma and Imperial would be impacted by this project. It was currently at an unacceptable level of service and this project would not only add to that problem, the inbound /outbound from the site would be impacted as well. Also, because of that the Planning Commission imposed a condition for further circulation improvements to be developed and presented. He believed the improvements were significant enough to require another hearing. He added the analysis that was submitted as part of the project relied on a reduction of traffic by 50 percent for the restaurant for bypass traffic or captured traffic. If that were the case, he explained the traffic that was coming into the McDonald's restaurant would proceed and go westbound on La Palma. The analysis showed that 60 percent of that traffic would actually make a U -turn and travel eastbound and he believed some reduction was warranted, but not the 50 percent identified. He restated the need for Planning Commission to reconsider this project, and to reconcile the numbers with the improvements being proposed. Richard DeBeikes, owner of Imperial Promenade Shopping Center, stated the Center was 100 percent leased for a year, and patrons and businesses had expressed their concerns over parking issues with the theater because their patrons did not use the parking structure in the rear of the lot. He received frequent calls from tenants stating parking must be enforced to Council Minutes of March 5, 2013 Page 19 of 21 ensure it was available to their patrons and movie patron's vehicles had been towed on occasion. With the addition of KFC franchise and In -N -Out, came an economic revitalization of this property along with traffic issues. The problem with the traffic study, he pointed out, once McDonald's Restaurant was in place, were the cars queuing up past the intersection resulting in gridlock and blockage to the Imperial Promenade property. He added there was no parking easement found on the bank parking area, and those spaces had been counted in the proposed project's parking study. He ended his presentation with a request to return this project to the Planning Commission to come up with solutions to solve the anticipated parking and congestion issues. Council Member Murray indicated there were no speakers at the teleconference location to speak to this item. With no further comments offered, the public hearing was closed. Council Member Kring stated she was present in 2009 when the original conditional use permit was approved and the applicant had indicated there would be lighting, interesting walkways and other incentives for patrons to use the rear parking lot. She asked what the current plans were to entice patrons to the rear parking lot. Mr. Mitchell, responding for the applicant, stated those items were still included and identified in the recommendation and the intent was to use the rear parking structure. Mayor Pro Tern Eastman suggested there could be signage added to the bank parking lot indicating the spaces were available for use after 6:00 P.M. Mr. Mitchell concurred. Council Member Eastman indicated she had been on the Planning Commission when the original application was approved and she wanted to confirm those incentives were in place with Mr. Mitchell stating those items would be completed to present an attractive draw for parking in the rear lot. She also suggested the theater owner give an incentive to those that park in the parking structure. Council Member Kring moved to approve RESOLUTION NO. 2013 -041 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM denying that portion of Variance No. 2012 -04917 relating to the request to install an electronic reader -board sign in place of an existing freestanding sign; approving that portion of Variance No. 2012 -04917 relating to the installation of sign cabinets on an existing freestanding sign; and approving an amendment to Conditional Use Permit No. 2008 - 05372, seconded by Council Member Brandman. Council Member Brandman disclosed he had discussed this matter with representatives of the applicant and was sympathetic to the appellant's concerns asking that the applicant work with the adjacent property owner in making sure those issues were mitigated. Council Member Kring reported she had a phone conversation with the applicant and everything discussed during this hearing mirrored her phone conversation. Mayor Pro Tern Eastman had also met with the applicant's representatives stating it appeared to her that the project had been improved, took up less space than the original proposal but also encouraged the applicant and appellant work out a way to ensure theater owners do not park in the Imperial Promenade parking lot. Voice Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council Members: Brandman, Kring and Murray.) Noes — 0. Abstention — 1: Mayor Tait. Motion Carried. Mayor Tait returned to dais at 8:00 P.M. Report on Closed Session Actions: None Council Minutes of March 5, 2013 Page 20 of 21 Council Communications: Council Member Brandman spoke about his attendance at the KaBoom! park dedication ceremony, YMCA Growing Together Open House, Anaheim Pony Baseball League opening day, the APAC Gala fundraiser, the Cypress College Americana Awards ceremony and the Anaheim Ducks S.C.O.R.E. first flight field trip at Honda Center. As a matter for council consideration, he requested staff prepare the following proclamations for the March 26th agenda: proclamations to support the labor and business movement principles for an immigration process that created a road map to citizenship for aspiring Americans, to recognize Caesar Chavez Day on March 31st, and a proclamation for Holocaust Remembrance Day on April 7 -8. He also requested support for the 13th MEU Easter basket fundraiser from March 11 — 27, with Easter basket and gift card donations to be dropped off at city hall. Council Member Murray thanked everyone involved in the KaBoom! park project at Schweitzer Park and congratulated West Anaheim Medical Center for being named in the nation's top 100 hospitals. She announced the Cops for Kids Golf Tournament on March 18th, the Canyon Hills Library subscription donations, and the Canyon Hills Library Young Adult Council Dress Drive for the YMCA April Prom Project, seeking donations of prom dresses. She provided clarifying comments regarding the Police Citizen Review Board and requested the City Manager keep a record of any letters, emails and phone calls regarding support or opposition to the Police Citizen Review Board. She further stated her office had received 18 letters of opposition and three in support of a Police Citizen Review Board. Council Member Kring stated her office had received 15 letters of opposition and 4 to 5 letters in support of a Police Citizen Review Board and reported that the dispute between the SEI Union and Disney had been settled. She spoke about her participation in the KaBoom! Build -a -Park project, Adopt -a- Neighborhood clean -up on March 16 and her tour of the Disneyland Princess exhibit, and attendance at the Samueli Foundation luncheon honoring non - profits in Anaheim. Mayor Pro Tern Eastman spoke of the KaBoom! park dedication and provided an update on the OCTA Go Local program. She spoke in support of bringing Trader Joes to the City and encouraged residents to write to Trader Joes in support of that effort. She also provided information on her Volunteer Recognition Program and announced the annual Health Fair scheduled for June 30 at Magnolia High School. She stated she also received letters regarding the Police Citizen Review Board and looked forward to a full report from the City Manager. Mayor Tait shared his luncheon experience with the 4th and 5th graders of Danbrook Elementary and his visits to various schools for the Read Across America program. He requested Mayor Pro Tern Eastman, as the City's OCTA representative, provide council with the annual operating cost for the OCTA alternative transportation program as it related to the street car and details about the congestion on Katella. He further clarified the intent of his motion with regard to the Police Citizen Review Board was to include the civilian component and shared his disappointment on Item No. 15, relating to staffing for the Mayor. Council Minutes of March 5, 2013 Page 21 of 21 Adjournment: At 8:23 P.M. with no other business to conduct, the March 5, 2013 council meeting was adjourned. Re tfully submitted, Linda N. Andal, CIVIC City Clerk