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1995/07/25CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES JULY 25, 1995 The City Council of the City of Anaheim met in regular session PRESENT PRESENT ABSENT: PRESENT MAYOR: Daly COUNCIL MEMBERS: COUNCIL MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl TRAFFIC AND TRANSPORTATION MANAGER: CIVIL ENGINEER-DEVELOPMENT SERVICES: UTILITIES GENERAL MANAGER: Tait, Lopez, Zemel, Feldhaus John Lower Natalie Meeks Edward Aghjayan A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 2:20 p.m. on July 21, 1995 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the meeting to order at 3:18 p.m. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session noting first that there are no additions to Closed Session items. PUBLIC COMMENTS - CLOSED SESSION ITEMS: There were no public comments relative to Closed Session items. Th~ following items are to be considered at the Closed Session: 1. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) - EXISTING LITIGATION: Name of case: In re: County of Orange, Debtor, U.S. Bankruptcy Court, Central District Case No. SA 94-22272; and In re: Orange County Investment Pools, U.S. Bankruptcy Court, Central District No. SA 94-22273. 2. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) - EXISTING LITIGATION: Name of case: Anaheim Stadium Associates v. City of Anaheim, Orange County Superior Court Case No. 44-81-74. 3. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) - EXISTING LITIGATION: Name of case: Neihaus vs. City of Anaheim, Orange County Superior Court Case No. 73-71-29. C~TY OF J~LNiB~E2K, C~L~FORN~ - COUNCIL ~NUTES - ~ULY 25, ~995 4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: one potential case. Existing facts and circumstances: Claim grievance of Convention Center Support Services Supervisor considering elimination of position due to departmental consolidation. RECESS: Mayor Daly moved to recess into Closed Session. Council Member Zemel seconded the motion. MOTION CARRIED. (3:20 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present, and welcomed those in attendance to the Council meeting. (5:33 p.m.). INVOCATION: Dr. Bryan Crow, The Garden Church, gave the invocation. FLAG SALUTE: Mayor Pro Tem Frank Feldhaus led the assembly in the Pledge of Allegiance to the Flag. 119~ DECLARATION OF RECO~NITION~ A Declaration of Recognition was unanimously adopted by the City Council and presented to Julie Mayer on being a designated recipient of the Los Angeles Times Orange County 1995 Volunteers of Distinction Award in the category of the Arts. Mayor Daly and Council Members congratulated and commended Mrs. Mayer on receiving this very prestigious award. The Mayor elaborated on the many arts and other community activities in which Mrs. Mayer is and has been involved over the years. 119: PRESENTATION OF CHECK TO THE ANAHEXM COMMUNITY FOUNDATION FOR USE IN THE CITY'S ANTI-GRAFFITI PRO(}RAM: Mr. John Berggren stated he was very pleased on behalf of the Directors of the Mobil Foundation to present a check for $5,000 in support of the City's Anti-Graffiti Program. He presented the check to Jackie Terrell of the Anaheim Community Foundation. Mrs. Terrell thanked Mobil for the generous donation from the Mobil Foundation. The check will be very beneficial in supplementing revenues for the City's Anti-Graffiti Program. She is certain that John Poole, the City's Code Enforcement Manager will put it to the most effective use to further combat graffiti in the City. 119: DECLARATION OF RECOGNITION: A Declaration of Recognition was unanimously adopted by the City Council and presented to Donald and Mary Lee for their long-time dedication to the operation of Jackson Drug Company in Anaheim, a business which served the citizens of Anaheim and surrounding communities for over 70 years. Donald Lee stated it was a difficult decision to close the business which he took over from'Mr. Jackson, the man who started the legacy of providing quality products and service. They were pleased to have worked with him and then to have the opportunity to buy out the business. Changing times and CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES - JULY 25, 1995 circumstances especially in the pharmaceutical and health care field, however, resulted in their ultimate decision to bring the business to a close. Mayor Daly and Council Members commended Mr. & Mrs. Lee noting that Jackson Drugs will be missed in the Anaheim community. 119= THE FOLLOWING WERE RECOGNITIONS AUTHORIZED BY THE CITY COUNCIL THIS DATE TO BE MAILED OR PRESENTED AT ANOTHER TIME: 1. PROCLAMATION recognizing August i - 7, 1995, as Breastfeeding Awareness Week. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $4,737,359.52 for the period ending July 21, 1995, in accordance with the 1995-96 Budget, were approved. Mayor Daly recessed the City Council meeting until after the Redevelopment Agency and Housing Authority meetings. (5:31 p.m.) Mayor Daly reconvened the City Council meeting. (5:33 p.m.) ADDITIONS TO THE AGENDA: There were no additions to agenda items. ITEMS OF PUBLIC INTEREST: No items of public interest were addressed. PUBLIC COMMENTS - AGENDA ITEMS: There were public comments on Agenda Items Al6. and Cl. See discussion under those items. MOTION: Mayor Daly moved to waive reading in full of all ordinances and resolutions to be acted upon for the Council meeting of July 25, 1995. Council Member Zemel seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Mayor Daly, seconded by Council Member Zemel, 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 Daly offered Resolution No. 95R-139, for adoption. Refer to Resolution. Al. 105: Receiving and filing minutes of the Senior Citizens Commission meeting held June 8, 1995. 105: Receiving and filing minutes of the Community Services Board meeting held June 8, 1995. A2. 123: Approving Cooperative Agreement C-95-046 with Orange County Transportation Authority to conduct a Project Study Report along Santa Fe Railway Company's Orangethorpe Corridor (the portion of the San Bernardino subdivision between Highland Avenue in Fullerton and Weir Canyon Road/Yorba Linda Boulevard in Yorba Linda). 3 C~TY OF ANAHE~H~ CALIFORNIA - COUNCIL ~INUTES - ~ULY 25~ ~995 A3. 123: Approving an Agreement with Trident Computer Resources, Inc., in an amount not to exceed $16,896 for computer hardware and software maintenance services for two mini mainframe computers used to operate the Anaheim Traffic Management System. A4. 123: (1) Approving completion of the Anaheim Transportation Network Feasibility Study for $15,000; (2) Extending the contract with CalTrans for the funding of the Anaheim Transportation Network through August 1, 1996; and (3) accepting $75,000 from the California Department of Transportation for the implementation and operation of the Anaheim Transportation Network. A5. 160: Accepting the low bid of Joslyn Power Products c/o Matzinger- Keegan, Inc., in the amount of $30,508 for 30 SF-6 fuse holders, 46 fuses and 60 accessory kits, in accordance with Bid $5315. A6. 160: Waiving Council Policy 306, and authorizing the Purchasing Agent to issue a Purchase Order to Southwest Power, Inc., in the amount of $33,000 for 300 elbow tap plugs for Warehouse inventory stock. A7. 160: Accepting the bid of The Okonite Company, in an amount not to exceed $89,581.46 plus applicable taxes and reel deposits for 3,480 feet of 15KY single conductor power cable, in accordance with Bid $5407. AS. 160: Accepting the low bid of Nobest, Inc., in an amount not to exceed $600,000 for the removal and replacement of asphalt concrete and cross gutters, for a period of one year beginning July 1995, with the options to renew for an additional three years, in accordance with Bid ~5397. A9. 123: Approving a First Amendment to Agreement with International Services, Inc., in an amount not to exceed $488,779.50 to provide school crossing guard services for one year beginning October 1, 1995, and ending September 30, 1996, with the option to extend for one additional year, in accordance with Bid #5256. Al0. 184: Reviewing the need for continuing the Sixth Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services On January 3, 1995, concerning the Santiago Landslide and Pegasus Landslide in the City of Anaheim; and taking no action to terminate the local emergency at this time. All. 123: Approving a Sixth Amendment to Agreement with Eberhart & Stone, Inc., for geotechnical services pertaining to the Santiago Landslide. Council Member Feldhaus. He again expressed his concern over the continuing services of the geotechnical consultant on the landslide. The Council has been told a final report was going to be forthcoming but that has not happened. He understands 40,000 gallons of water a day are still being pumped out of the hills and the inclinometer readings have not changed. City Attorney White. The report is now anticipated on August 15, 1995. The process has gone much slower than hoped for partially due to the massive amount of paperwork involved as a result of the extensive litigation the City is involved with because of the landslide and the documentation that is necessary in response to that law suit. 4 CITY OF ANAHE~ C&L~FORNIA - COUNCIL ~NUTES - ~ULY 25, ~995 Council Member Feldhaus. The consultant is now asking for an additional $500,000. The answer he gets from staff is that the City is being reimbursed by FEMA. Ne (Feldhaus) still feels it is tax dollars so everybody pays. City Attorney White. Ne feels a sense of frustration as well. There is the need to be very prudent in the way the report is prepared and analyzed, not only the fact of the litigation, but also the need to fully analyze the soil conditions and what remedial measures need to be taken, if any. He was hopeful they would have had the report well before now. They have corresponded with the geotechnical engineers that they need the report expedited. They are not only working on the report, but a variety of other items related to the landslide. Mayor Daly. There are legal issues involved and they should ask staff to give a complete briefing on all the related issues; City Attorney White. He will be happy to do so. Council Member Feldhaus. They are being asked tonight to approve an additional $500,000. If they do not do so, he asked if that is going to create a situation where work will be stopped on the project; City Attorney White confirmed that was correct. He will schedule a briefing for Council next Tuesday in closed session because he feels uncomfortable discussing this in open session since most of what this relates to directly involves pending litigation. As suggested by Council Member Feldhaus, he (White) does not have a problem in continuing this item for one week. Ne also just checked with the Director of Public Works who concurred that they could wait a week on this item. Mayor Daly. Ne would strongly suggest that staff give a briefing to the Council occasionally on the item rather than waiting and asking for approval of $500,000 in extending the agreement from time to time. MOTION. Council Member Feldhaus moved to continue this item (All.) for one week. Council Member Lopez seconded the motion. MOTION CARRIED. A12 · 153: Authorizing full-time City of Anaheim Employees to participate in a one-time accrued vacation buy-out, to provide a cash donation to the survivors of a Parks, Recreation and Community Services Department employee who recently passed away. Al3. 123: Approving an Agreement with Orange County Health Services Agency for animal control services for the period of July 1, 1995, through June 30, 1996, in an amount estimated by the County of Orange to be $261,912 for the fiscal year 95/96 (precise cost to be based on field, shelter and licensing actions). Al4 · 152: Approving the funding recommendations, selection of new JTPA training agencies for the period from July 1, 1995 through June 30, 1996, and authorizing the JTP Manager to execute the necessary subcontract agreements and any modifications thereto; and approving a one year extension of the existing occupational skills training agencies for the delivery of services through June 30, 1996. A15 · 158: RESOLUTION NO. 95R-139: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS CONVEYING CERTAIN REAL PROPERTY OR INTERESTS THEREIN TO THE CITY. C~TY OF ANAHE~H~ CAL~FOI~A - COUNCIL H~NUTES - ~ULY 25~ L995 Al6. 150: Approving the Fiscal Year 1995/96 Community Services Agency Funding allotment plan to selected community organizations; and considering allocation of an additional appropriation of $71,191 from one-time funds to increase the Fiscal Year 1995/96 allotment plan to $200,000 to be distributed to selected community organizations. June Lowry, Chairman, Community Services Board (CSB) Subcommittee on Community Services Agencies funding. When she spoke before the Council in June, she was asked to come back with specific allocations which she did. (See memorandum dated July 10, 1995 to the City Manager/City Council from Mrs. Lowry and Community Services Agencies Funding FY95-96 - Community Services Board Recommendation dated July 13, 1995 - made a part of the record). She is also present to make two recommendations -- the first that the Council approve the FY95-96 Funding Plan as listed in the materials submitted to the Council which would fund nine agencies (see CSB recommendations dated July 13, 1995) and secondly that the Council consider the allocation of an additional appropriation of $71,191 from one-time funds to increase the FY95-96 funding to $200,000. In so doing, eleven agencies including the YMCA and Boys and Girls Club will be fully funded, four agencies in addition would receive 25% to 60% of their requested amount, with the remaining five agencies on the list not being recommended because they did not meet the criteria defined in the 1989 Needs Assessment Study. Council Member Feldhaus. He asked the City Manager to speak to the request for the additional $71,191 and if it can be factored into the budget. City Manager RUth. He first stated that the CSB has done an outstanding job but at least at this time, his recommendation is that the Community Services Agencies be funded at the $128,809 level and not at the $200,000 level. With all the uncertainty of the State budget and the Orange County Bankruptcy, he feels the City is still vulnerable relative to an attack on City revenues. He feels uncomfortable recommending additional funding levels until those issues are resolved. All departments in the City have been cut and this is consistent with the level of funding cuts across the City. It is difficult and painful. He recommends that at this time, they not fund the additional $71,191 but that the funding allocation be at the $128,809 level. Council Member Feldhaus suggested that they take a look at the situation in three months or six months to see if there is any change; City Manager Ruth stated he would be happy to do that. June Lowry. She realizes everyone has been cut but some of the agencies are going under and she feels if they do so, it will cost the City, County and State more in the long run. If the Council will not accept the recommendation for the $200,000 at this time, she asked that they accept the recommended CSB funding allocations at the $128,809 level and in three months to revisit the additional recommended allocations. Mayor Daly then posed questions relative to recommendations made specifically for two organizations where under the budgeted recommendation of $128,809 the Board recommended zero funding but if the additional $71,191 is approved, recommended that $5,000 be allocated (God's International Resource Link and Crippled Children's Society). He asked what the organizations provided and why the Board recommended funding in that fashion. Mrs. Lowry explained how both organizations provided services to the Anaheim community and why they felt they warranted allocations if funded under the $200,000 level. CITY OF ANAHEIM, CALIFORNIA - COUNCIL MINUTES - JULY 25, 1995 Mayor Daly. He noted that the Anaheim Museum was also recommended for zero allocation under the lower funding level, but $10,000 under the $200,000 level. He asked if that has been reconciled with the recent merger of the Museum into the City Library Department. City Manager Ruth. He answered, yes but the museum is drawing down on reserves and would be out of money in three months. They were able to absorb some administrative help through the Library system with existing staff. He reiterated there is still a need for additional funding and this would assist but not under the first allocation level. Mayor Daly. This item includes funding at the $128,809 level and not the additional $71,191 requested. It would take an additional action of the Council to approve the additional funding. City Manager Ruth again clarified for the Mayor the staff recommendation on this item. The CSB recommended for City Council consideration an appropriation of $128,809 to fund a variety of programs and services through the Community Services Agencies. The Council is approving the funding level but holding in abeyance the additional request for $71,191 and is asking him (Ruth) to revisit the matter and come back to the Council in 90 days based on what may or may not happen at the State level, additional ramifications from the Orange County bankruptcy, and the status of City funds. If there are sufficient funds at that time, the Council could approve the additional funding level as requested by the CSB. A17. 114: Approving minutes of the City Council meeting held June 27, 1995. Roll Call Vote on Resolution No. 95R-139 for adoption: AYES: MAYOR/COUNCIL MEMBERS: Tait, Lopez, Zemel, Feldhaus, Daly NOES= MAYOR/COUNCIL MEMBERS: None ABSENT: MAYOR/COUNCIL MEMBERS: None The Mayor declared Resolution No. 95R-139 duly passed and adopted. END OF CONSENT CALENDAR. MOTIONS CARRIED. ITEM B1 - B5 FROM THE ZONING ADMINISTRATOR MEETING OF JULY 6, 1995: DECISION DATE: JULY 13, 1995 INFORMATION ONLY-APPEAL PERIOD ENDS JULY 28, 1995 Council Member Lopez posed questions to staff for purposes of clarification on Items Bi., B2. and B5. which were answered by the Zoning Administrator, Annika Santalahti. Bi. 179: CONDITIONAL USE PERMIT NO. 3393 AND NEGATIVE DECLARATION: OWNER: INVESTOR REALTY COMPANY, i Civic Plaza, Suite 100, Newport Beach, CA 92660 AGENT: VIVA MEXICO RESTAURANT, c/o Art Bermudez, 10922 Beach Boulevard, Stanton, CA 90680 C~TY OF ANAHE~H~ CALIFORNIA - COUNCIL ~INUTES - ~ULY 25~ ~995 LOCATION: 1731 West Katella Avenue (Cabo's Mexican Restaurant). Property is approximately 2.67 acres located at the northwest corner of Katella Avenue and Euclid Street. To modify or add conditions of approval pertaining to the on-premise sale and consumption of beer and wine in an existing restaurant. ACTION TAKEN BY THE ZONING ADMINISTRATOR: CUP NO. 3393 APPROVED (ZA Decision No. 95-13). Negative Declaration previously approved. B2. 179: VARIANCE NO. 4275 AND NEGATIVE DECLARATION: OWNER: GEORGE BRODY, P.O. Box 50383, Irvine, CA 92619-0383 LOCATION: 2082 and 2083 South Mountain View Avenue. Property (1) is approximately 0.44 acre located at the northeast corner of Orangewood Avenue and Mountain View Avenue, described as 2082 South Mountain View Avenue; property (2) is approximately 0.44 acre at the northwest corner of Orangewood Avenue and Mountain View Avenue, described as 2083 South Mountain View Avenue. Waivers of maximum fence height and minimum number of parking spaces, to convert garage spaces into a breezeway, add storage and laundry rooms, also to construct an 8-foot 6-inch wrought iron fence. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Variance No. 4275 APPROVED, IN PART (ZA Decision No. 95-14). Approved Negative Declaration. B3. 179: ADMINISTRATIVE USE PERMIT NO. 95-04: OWNER: CAROLYN JACKSON, 7320 Calle Durango, Anaheim, CA 92808 AGENT: ANA HARRISON, 7320 Calle Durango, Anaheim, CA 92808 LOCATION: 7320 Calle Durango. To permit a large family day care home to allow up to twelve or fewer children. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Administrative Use permit No. 95-04 APPROVED (ZA Decision No. 95-15). B4. 179: ADMINISTRATIVE ADJUSTMENT NO. 0095: OWNER: CAROL BARNES, 6543 East Via Estrada, Anaheim, CA 92807 AGENT: ROBERT LINNAUS, 910 South Camino Real "B", San Clemente, CA 92672 LOCATION: 6543 East Via Estrada. Property is approximately 0.17 acre, having a frontage of approximately 70 feet on the northwest side of Via Estrada, having a maximum depth of approximately 102 feet and being located approximately 490 feet southwest of the centerline of Via Arboles. Waiver of maximum lot coverage, to construct a 310 square-foot room addition (to expand an existing master bedroom). ACTION TAKEN BY THE ZONING ADMINISTRATOR: Administrative Adjustment No. 0095 APPROVED (ZA Decision No. 95-16). B5. 179: ADMINISTRATIVE ADJUSTMENT NO. 0096: OWNER: LEONARD & CYNDIE CHAIDEZ, P.O. Box 29, Anaheim, CA 92805-0029 Petitioner requests waiver of maximum fence height, to construct a one-foot and 2-inch high barbed wire addition to an existing six- foot high blockwall. ACTION TAKEN BY THE ZONING ADMINISTRATOR: CITY OF ~NAHEIM, CALIFORNIA - COUNCIL MINUTES - JULY 25, 1995 Administrative Adjustment No. 0096 APPROVED (ZA Decision No. 95-17). END OF THE ZONING ADMINISTRATOR ITEMS. D1. 176: PUBLIC HEARING - ABANDONMENT NO. 95-6A: To consider abandoning certain public streets, highways and service easements, and to consider abandoning those certain abutter's rights of access (being thirty-six feet in width) to Santa Ana Canyon Road located on the south boundary of Santa Ana Canyon Road, approximately 650 feet west of Fairmont Boulevard, generally known as 6270 Santa Ana Canyon Road. At their meeting of June 13, 1995, Item A36, the Anaheim City Council adopted Resolution No. 95R-94 declaring its intention to vacate certain public streets, highways and service easements, and to consider abandoning those certain abutter's rights of access (being thirty-six feet in width) to Santa Ana Canyon Road located on the south boundary of Santa Ana Canyon Road, approximately 650 feet west of Fairmont Boulevard, generally known as 6270 Santa Ana Canyon Road. (ABANDONMENT NO 95-6A.) The Resolution was duly published in the Anaheim Bulletin and notices thereof posted in accordance with law. REQUESTED BY: Doug Browne, P.O. Box 10821, Anaheim, CA 92817-8021 Report of the City Engineer dated June 8, 1994 was submitted recommending approval of said abandonment. Public input was received at the meeting of July 18, the Public Hearing was closed and the matter continued to this date for a Council decision. Natalie Meeks, Civil Engineer, Public Works. She gave a brief summary of the proposed Abandonment (see minutes of 7/18/95). Approval is recommended by staff. As a result of the questions at the last meeting, staff obtained a copy of the title report for the property adjacent to Santa Aha Canyon Road. There is no indication in the report that there is a recorded easement that allows access to the Hughes Market although the property owner indicated that had been discussed at one time. Relative to accidents at that location, staff checked accident reports over the last 10 years and there was only one involving the driveway back in 1989. There were four other accidents in that area that may have been related to the driveway, but none involved injuries, only property damage. John Lower, Traffic and Transportation Manager. There were four reported accidents over a seven-year period, property damage only. There is no traffic safety problem at that location. He confirmed that the use of the property at that time was a nursery (trees, plants, etc.). Council Member Zemel. As he recalls, the nursery business was there for about 10 years with not too much traffic. The land use is now a preschool which will have high activity during peak traffic hours. He asked Mr. Lower if he felt the traffic rate would go up or stay the same. John Lower. The accident rate is rated based upon the ADT (Average Daily Traffic) volume through that location. The proposed permanent project is conditioned upon closure of the median island resulting in only right turns in 9 CITY OF ANAHEIMv CALIFORNIA - COUNCIL MINUTES - JULY 25v 1995 and out of the location. In his professional judgment, the accident rate should improve. Discussion followed between Council Member Zemel and Mr. Lower wherein Council Member Zemel continued to express his concern that traffic problems would be further exacerbated by the increased traffic volume with the new use and why he felt that would be so. Mr. Lower gave a more detailed explanation of what would occur when the median is closed making it less likely that accidents would occur especially in the east-bound through lanes. Council Member Feldhaus interjected and stated that he asked for the week's continuance to give him an opportunity to go out and look at the area more in depth. With his further investigation along with staff's recommendation and the Planning Commission's conditions for the permanent project, he is satisfied that there will be no problem. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Council Member Feldhaus, seconded by Council Member Lopez, the City Council finds that the proposed activity falls within the definition of Section 3.01 Class 5, of the City of Anaheim guidelines to the requirements for an Environmental Impact Report and is, therefore, categorically exempt from the requirements to file an EIR. MOTION CARRIED. Council Member Feldhaus offered Resolution No. 95R-141 for adoption, approving Abandonment No.95-6A. Refer to Resolution Book. RESOLUTION NO. 95R-141: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIMVACATING A PORTION OF THE ACCESS RIGHTS ADJACENT TO THE SOUTHERLY RIGHT-OF-WAY OF SANTA ANA CANYON ROAD (95-6A) Roll Call Vote on Resolution No. 95R-141 for adoption: AYES: COUNCIL MEMBERS: Tait, Lopez, Feldhaus, Daly. NOES: COUNCIL MEMBERS: Zemel ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 95R-141 duly passed and adopted. Cl. 175: CHANGES TO WATER RATES, RULES AND REGULATIONS: To consider the adoption of a 1.5% system revenue increase and a water rate restructuring proposal, and amendments to the water rules and regulations, as recommended by the Public Utilities Board. This item was continued from the meeting of July 18, 1995 where a staff presentation was made and extensive input received (see minutes that date). Mayor Daly. He asked, if the Council is only interested in approving the restructuring of the water rates over the next five years resulting in a decrease of residential water rates and an increase in commercial rates, but are not in favor of the 1.5% system-wide increase, how would that be done. City Attorney White. There are three actions before the Council -- one is a motion on the CEQA finding and the others are a resolution and a motion and incorporated into each is a two-part action. One part relates to the 1.5% overall system revenue increase and the other restructuring of the rates to accommodate the differential between residential and commercial. The Council could approve all three of the actions but simply delete from the resolution 10 C~TY OF ANAHEI~ CALiFORNiA - COUNCIL ~NUTES - ~ULY 25~ ~995 and one motion the approval of the 1.5% system revenue increase. They could act on those in a bifurcated manner. In any event, the recommendation would still be to approve the overall rate restructuring. Mayor Daly. The issue was discussed at length last week and there was public input (see minutes of 7/18/95). MOTION. On motion by Mayor Daly, seconded by Council Member Feldhaus, the City Council certified that the adoption of the water rates is statutorily exempt under the California Environmental Quality Act, Public Resources Code, Section 20180(b)(8) and Title 14 of the California Administrative Code Section 15273(a). MOTION CARRIED. After a brief Council discussion, City Attorney White stated based on what he has heard, the Council wishes to act separately on the remaining motion and resolution and to delete the 1.5% increase. MOTION. Council Member Feldhaus moved to authorize the Public Utilities General Manager to prepare, promulgate, publish, and take all actions necessary to implement changes to the Water Rates, Regulations and Rules as set forth herein, but without the 1.5% proposed increase, and to implement the remaining portions of the five-year water rates restructuring plan transition, effective July 1, 1996; July 1, 1997; July 1, 1998, and July 1, 1999 respectively. Council Member Zemel seconded the motion. Council Member Feldhaus offered Resolution No. 95R-140 for adoption but eliminatinq the proposed 1.5% increase. RESOLUTION NO. 95R-140: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF WATER AS ADOPTED BY RESOLUTION NO. 72R-600 AND MOST RECENTLY AMENDED BY RESOLUTION NO. 95R-114. Before a vote was taken on the motion and resolution, City Attorney White stated if the motion and resolution are adopted without the 1.5% increase, it would be necessary for recalculation of the structure based upon the fact that there was not a 1.5% increase. Mayor Daly. The Council has received a memorandum from the Public Utilities General Manager, Ed Aghjayan (see Memorandum dated July 25, 1995 to the City Manager from the Public Utilities General Manager - made a part of the record) clarifying the 1.5% increase and some of the rationale for it. As he (Daly) said last week, although there is not competition within the City in terms of setting water rates, there is an "apples-to-apples" comparison looking at the rates charged by cities adjoining Anaheim which are valid. Anaheim's rates do need to be restructured to reflect the market place within this part of Orange County. Council Member Feldhaus. One of the reasons he is asking for the issues to be bifurcated, last week he asked for the additional time in order to contact the citizens who were on the Citizen's Committee formed to provide input to the consultants, the Public Utilities Department, and the Public Utilities Board on issues pertaining to the structure of the City's water rates. He compiled a list of the comments of those he talked to and read some of the comments for the Council. He surmised from the information he received, that generally, the Citizen's Committee supported and endorsed the restructuring plan, but they did not address or discuss the proposed 1.5% increase. 11 CITY OF ANAHEIMt CALIFORNIA - COUNCIL MINUTES - JULY 25v 1995 Mayor Daly. The Council appreciates the hard work of staff and the Citizen's Con, nitres in bringing the new rate structure forward and look forward to the information as to the need for capital improvements and any other relevant information as they consider the water rate structure over the coming months and years. The Council knows that some type of Metropolitan Water District (MWD) increase will be coming soon. Ed Aghjayan, Public Utilities General Manager. There was an increase from MWD on July 1, 1995 coupled with the OCWD increase resulting in a 3.1% pass- through increase which is in their water cost adjustment. It is automatically passed on with notification sent to the Council but it does not require Council approval. Wholesale water rates are going up rapidly. The MWD multi- billion dollar expansion is moving ahead which is driving their rates up. Another increase is expected next July i (1996) and will continue as long as they continue their expansion plan. The City's newest MWD Board Member, Ed Alario, is poised to try to "kill" all that but there are 50 Board Members so he is not certain how successful he will be. Ne then explained with regard to the present action, the numbers will have to be recalculated because they were run with the 1.5% increase included and since it appears the increase is not going to be approved, will have to be rerun. It is a revenue neutral change and they are not losing or gaining anything by passing it on August 1st. To insure accuracy, staff is asking that it be effective September 1, 1995. City Attorney White. Mr. Aghjayan pointed out in order to make the necessary calculations, they would recommend making the structure adjustment effective September 1, 1995 which would give staff the necessary time to make those recalculations. The effective date of September 1, 1995 would be incorporated in both the motion and resolution. A vote was then taken first on the foregoing motion offered by Council Member Feldhaus, seconded by Council Member Zemel. MOTION CARRIED. Roll Call Vote on Resolution No. 95R-140 for adoptions AYES: NOES: ABSENT: MAYOR/COUNCIL MEMBERS: MAYOR/COUNCIL MEMBERS: MAYOR/COUNCIL MEMBERS: Tait, Lopez, Zemel, Feldhaus, Daly None None The Mayor declared Resolution No. 95R-140 duly passed and adopted. C2. COUNCIL COMMENTS: There were no Council Comments at this time. C3. REPORT ON CLOSED SESSION ACTIONS: City Attorney Jack White stated that there are no actions to report. ADJOURNMENT: By general Council consent, the City Council Meeting of July 25, 1995 was adjourned (6:40 P.M.) LEONORA N. SOHL CITY CLERK 12