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1994/06/07City Hall, _Anaheim, California - COUNCIL MINUTES - JUN~E 7, 1994 - 2:00 P.M. The City Council of the City of Anaheim met in special session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Daly COUNCIL MEMBERS: Hunter CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANT CITY CLERK: Ann M. Sauvageau ASSISTANT CITY MANAGER: Dave Morgan FIRE CHIEF: Jeff Bowman DATA PROCESSING DIRECTOR: Janet Mace UTILITIES GENERAL MANAGER: Edward Aghjayan DEPUTY CITY MANAGER: Tom Wood RISK MANAGER: Tom Vance FINANCE/ADMINISTRATION MANAGER: Bill Sweeney LIBRARY: Bill Griffith CONVENTION CENTER GE};ERAL MANAGER: Lynn Thompson HUMAN RESOURCES DIRECTOR: Dave Hill A complete copy of the agenda for the special meeting of the Anaheim City Council was posted at 1:00 p.m. on June 7, 1994 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the special meeting of June 7, 1994 to order at 2:12 p.m. PUBLIC HEARING - CITY BUDGET: To consider the proposed 1994/95 Budget Plan. FISCAL YEAR 1994L1995 DEPARTMENTAL BUDGET WORKSHOP: City Manager James Ruth: This is a public hearing to review and adopt the City's 1994/95 Budget pursuant to City Charter Section's 1202, 1203, and 1204. The City Council has been provided the proposed budget document and supporting documents and information which has been available since May 10, 1994 for public inspection. Following today's presentations and public £nput, the hearing will be continued to June 14, 1994 and may at Council's discretion be continued to subsequent dat~es but prior to July 1, 1994 and still meet charter requirements. City Manager Ruth than briefed portions of his transmittal letter dated ~4ay 9, 1994 on pages 5 through 7 of the Sum~ary Budget Document - Annual Budget - City of Anaheim - 1994/95o His presentation was supplemented by slides which explained in more detail City-wide expenditures, General Fund Expenditures, General Fund Revenues, Sales Tax, and TOT (Transient Occupancy Tax) Revenues, Property Tax Revenues, etc. Despite weak economic conditions and revenue losses, the City has been able to maintain primary services such as Police and Fire protection but other City services have been reduced to 'the point where additional service level reductions would jeopardize their fundamental mission. The proposed budget has also required each department to further reduce expenditures (i.e., cut services) to meet their general fund discretionary targets. The budget also contains a number of strategies, including limited use of reserves which he would not normally recommend. The proposed budget totals $577,919,423.00, a decrease of $38,231,030.00 or 6.2% from the current fiscal year 1993/94 budget. This decrease is largely attributable to capital project reductions in Public Ut[l%ties and Public Works. The proposed General Fund 284 City H_all, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 2:00 P.M. Budget totals $136,914,962.00 an increase of $1,289,796.00 or 0.9% over the current year budget. This increase is primarily due to a $3,541,276.00 or 4.7% increase in public safety related expenditures with offsetting reductions in other general fund departments. Before concluding his presentation, Mr. Ruth gave a further explanation relative to the status of reserve funds. He then introduced the Assistant City Manager, Dave Morgan who will begin departmental presentations. Dave Morgan, Assistant City Manager: There are new programs which are a part of the City Council Budget - the Legislative Program and the Community Promotion Program (see budget page 29). The Community Promotion Program consists of the Visitor and Convention Bureau Programs with an operating budget for 1994/95 of $3,727,500.00. He then introduced Mr. Charles Ahlers from the Visitor and Convention Bureau to give a report. Mr. Charles Ahlers, Visitor and Convention Bureau. He noted that the competition continues to increase with adjacent cities having expanded their Convention Centers, the closest competition being Los Angeles, San Diego and San Francisco. Las Vegas has assumed Anaheim's identity becoming the new family-oriented destination. The tourism side involves the major portion of the economic down turn. He thereupon submitted and briefed a data sheet capsulizing the City's convention history (made a part of the record). The numbers looked good for the past ten years but were off in 1993 which is largely a product of competition. Also, Anaheim's infrastructure is a little dated and he feels it is necessary to do something with the Convention Center to maintain their competitive edge enjoyed for the last decade. The real measure of their success lies in convention attendance and bookings for the future and the number of visitors they bring to the area. City Manager Ruth then introduced each department's budget presentation giving its location in the budget document, budget totals, adjustments and capital improvements if any. He also reported to the extent which department's have made expenditure reductions. The following Department heads then gave an overview of their department's proposed budget, some explaining their plans and their objectives for the coming year and accomplishments in the past fiscal year. Any changes from the plan presented were also explained at this time. Questions were also posed by Council Members at the conclusion of some of the presentations which were answered by the department head or appropriate staff: Dave Morgan, Assistant City Manager (for City Manager Ruth) - Administration which includes City Manager's Office, Budget and Audit, Risk Management, Intergovernmental Relations, Public Information and Anti-Drug/Gang Coordination - Page 30-33 - Budget. Lee Sohl, City Clerk - City Clerk's Department - Page 36/37 - Budget Document. Bill Griffith, Library Director/Library Department - Page 54/55 - Budget Document. 285 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 2:00 P.M. Jeff Bowman, Fire Chief - Fire Department - Page 50/51 - Budget Document. Following Chief Bowman's presentation, issues discussed as a result of Council questions were: The need for Capital improvements to Station's 5 and 6 and replacement of Station 3 with Station 4, possible funding stream to accomplish the improvements, and potential restructuring of the Paramedic Fee (report to be submitted by Staff). ADJOURNMENT: Council Member Simpson moved to adjourn the Special Meeting of June 7, 1994. Council Member Daly seconded the motion, Council Member Hunter was absent. MOTION CARRIED. (3:22 p.m.) LEONORA N. SOHL, CITY CLERK 286 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter (entered Council Chamber at 5:46 p.m.), Daly COUNCIL MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANT CITY CLERK: Ann M. Sauvageau ASSISTANT CITY MANAGER: Dave Morgan FIRE CHIEF: Jeff Bowman DATA PROCESSING DIRECTOR: Janet Mace UTILITIES GENERAL MANAGER: Edward Aghjayan DEPUTY CITY FJ~NAGER: Tom Wood RISK MANAGER: Tom Vance FINANCE/ADMINISTRATION MANAGER: Bill Sweeney LIBRARY: Bill Griffith CONVENTION CENTER GENERAL MANAGER: Lynn Thompson HUMAN RESOURCES DIRECTOR: Dave Hill PARKS & RECREATION DIRECTOR: Christopher Jarvi PARKS & RECREATION PARK SUPERINTENDENT: Jack Kudron A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 1:00 p.m. on June 3, 1994 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the meeting of June 7, 1994 to order at 3:22 p.m. The meeting opened with the continuation of the Departmental Budget Workshop and presentation by the respective Department Heads: Janet Mace, Data Processing Director - Data Processing Department - Page 46/47 - Budget Document. Lynn Thompson, General Manager - Convention Center - Page 44/45 - Budget Document. Dave Hill, Human Resources Director - Human Resources Department - Page 52/53 - Budget Document. Jack White, City Attorney - City Attorney's Office - Page 34/35 - Budget Document. Ed Aghjayan, Public Utilities General Manager - Public Utilities Department - Page's 70-73 - Budget Document. (Mr. Aghjayan's presentation was supplemented by slides) Departmental presentations were concluded at this time. Mayor Daly. He asked to hear from the Chairman of the Budget Advisory Commission (BAC) on the recommendations of the Commission. Shirley McCracken, Chairman, Budget Advisory Commission. (Also see minutes of May 24, 1994 - Joint Meeting of Budget Advisory Commission with the City Council where the BAC Report of May 19, 1994 was submitted and input received from Mrs. McCracken and Members of the Commission). She briefed the background on the establishment of the Commission by the Council in 1991 and the charge given to the Commission. She also briefed the past recommendations 287 City Hall, Anaheim~ California - COUNCIL MINUTES - JUNE 7, 199~ - 5:00 P.M. given to the Council by the Commission and the recommendations made for the fiscal year 1994/95 Budget specifically, (1) Staff continue to monitor what other cities are doing. (2) Staff continue to review all activities for potential privatization. (3) The City continue to utilize part-time and contract employees where appropriate. The majority of the Commission Members were in favor of other recommendations as well but there was not sufficient time to come to a conclusion. As is evident from their report (see report of May 19, 1994 attached to which were additional recommendations to the Council in order of priority) there are a list of issues the BAC still needs to consider on an on-going basis. Mayor Daly then posed questions to Mrs. McCracken relative to the use of reserves and did the BAC recommend anything other than what the City Manager recommended. Mrs. McCracken advised that the Commission did not have sufficient time to discuss issues in depth but did indicate that the City does have to address the issue of additional funds somewhere to compete with what the State continues to take away from cities. It is necessary to look at a way in which to keep local money in the City. The BAC recommended a year ago that the Council use the Utilities User Tax for a year and do so on an annual basis until the economy recovers. As far as keeping local money in the City as the Commission has discussed with Staff, they have to continue to work with the League of Cities to foster legislation that prevents that from happening. Mayor Daly than invited public input on the budget. Mr. Dick Clark, Chamber of Commerce. (See letter dated June 7, 1994 from Mr. Clark as President of the Chamber - made a part of the record). Relative to the right-of-way fee transfer from the Utilities Department, he recommends that there be a time limit placed on that transfer and that it should not be made a fixed part of an ongoing program. The alternative the City will face if they do not do so is to increase industrial electric rates to where industrial user's will no longer be customers of the Anaheim Utility. Another issue that is tied with the TOT tax issue are the funds the City Manager is proposing the Council adopt to be used out of the Convention Center reserves. He feels there is an opportunity to offset the use of those funds by a different consideration of the privatization of the Golf courses than what the City Manager has recommended. The report from Staff has not been out very long and it appears to be highly biased, performed by people who are biased. There is an opportunity to get improved quality through privatization at the same time increasing revenues to the City. Mayor Daly. Relative to the Convention Center reserves which had been proposed, he believes the City Manager is prepared or is going to recommend a change to that. City Manager Ruth. Staff has revised their proposal and it is the recommendation to not take any of the TOT tax from the 1% which was going into the capital account but recommend that it continue to go into the capital account and accrue for the Convention Center and that revenue source be displaced by the PERS revenue rebate back from the State. Additional questions were posed relative to this issue which were answered by both the City Manager and Bill Sweeney, Budget and Audit Manager. Jeff Kirsch, 2661 W. Palais. He feels that one thing that has been overlooked by the BAC is something that Anaheim HOME has advocated repeatedly and that is 288 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. an Admissions Tax - a local tax not intercepted by the State. City services are provided to people who enjoy them and then leave. He is asking that some consideration be given to an Admissions Tax. MOTION: Council Member Pickler moved to continue the public hearing on fiscal year 1994/95 Budget to Tuesday, June 14, 1994 at 2:00 p.m. Council Member Daly seconded the motion. Council Member Hunter was absent. MOTION CARRIED. RECESS - CLOSED SESSION: City Attorney Jack White requested a Closed Session noting that there are is one addition to Closed Session items - Norman Right Mechanical Equipment vs. R.P. Richards Inc, etal., Orange County Superior Court Case No. 72-28-63. Since the agenda was prepared and posted, a request has been received from other parties to submit this construction contract dispute to mediation. Any decision to mediate needs to be made prior to the court schedule status conference which will occur before the next regular City Council meeting. Therefore, he recommends that the City Council by Motion make the appropriate finding and add this matter to the Closed Session Agenda. MOTION: Council Member Simpson moved to waive the 72 hour posting provision of the Brown Act noting that a decision to mediate this matter needs to be made prior to the court schedule status conference which will occur before the next regular City Council meeting. Council Member Daly seconded the motion. Council Member Hunter was absent. MOTION CARRIED. PUBLIC COMMENTS - CLOSED SESSION ITEMS: There were no public comments relative to Closed Session items. The following items are to be considered at the Closed Session: CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: David Hill Employee Organization: Anaheim Firefighters' Association 2. CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: David Hill Employee Organization: IBEW Local No. 47 3e CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: David Hill Employee Organization: Unrepresented employees. 4. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) - EXISTING LITIGATION Name of case: Shari Lyn Miles vs. City of Anaheim, Orange County Superior Court Case No. 69-80-46. RECESS: By general consent, the Council recessed into Closed Session. Council Member Hunter was absent. MOTION CARRIED. (4:32 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present, with the exception of Council Member Hunter. (5:26 p.m.) INVOCATION: Reverend Adam D. McCoy, St. Michael's Episcopal Church, gave the invocation. FLAG SALUTE: Council Member Frank Feldhaus led the assembly in the Pledge of Allegiance to the Flag. 289 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. 119: PRESENTATION - V.I.S.T.A. Proqram: Recognizing the new Volunteer Program adopted by the Anaheim Police Department. Sergeant Tom O'Donnell accompanied by Lauren Ware, Community Services representative narrated a slide presentation which assisted in explaining the newly instituted program developed to give interested residents an opportunity to serve their community. The community volunteers will then be able to foster a better understanding of the Anaheim Police Department and be advocates for the Police Department. Following the presentation there were questions by Council on the V.I.S.T.A. Program. Mayor Daly asked that within 60 to 90 days the Council receive a follow-up report from the Police Department as to how the program is working. The Mayor and Council Members commended the institution of such a program. 119: THE FOLLOWING WERE RECOGNITIONS AUTHORIZED BY COUNCIL THIS DATE TO BE MAILED OR PRESENTED AT ANOTHER TIME: Recognizing the Anaheim'Bullfrogs as they begin their second season at the Pond of Anaheim. Recognizing Martin Luther Hospital for its expanded Neonatal Intensive Care Unit. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $5,681,841.93 for the period ending May 31, 1994 and $2,141,012.46 for the period ending June 6, 1994, in accordance with the 1993-94 Budget, were approved. Mayor Daly recessed the City Council meeting until after the Redevelopment Agency and Housing Authority meetings. (5:40 p.m.) Mayor Daly reconvened the City Council meeting. (5:44 p.m.) ADDITIONS TO THE AGENDA: There were no additions to agenda items. Council Member Hunter entered the Council Chamber. (5:46 p.m.) ITEMS OF PUBLIC INTEREST: Dave PagenKopp, 7659 E. Northfield, Anaheim. He IS representing more than 900 Anaheim residents petitioning for a sound wall for safety reasons (East of Imperial Highway along the back side of the residents along Northfield and surrounding residential streets). He thanked the Mayor and the Council for calling a meeting of the major parties involved to discuss funding for the wall on Friday, June 10, 1994 and urged that the City take a strong stand so that the safety sound wall can be conStructed before the second railroad track is fully functional in early 1995. They are looking at transportation funding. If there is room for transportation improvement, there should be room for safety precautions. The residents would like to see Mayor Daly at the rest of the meetings to represent the residents and to see that the job gets done. City Manager Ruth. Staff has been working with the residents over a period of months and hope to be able to conclude negotiations and discussion this Friday. 290 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. Council Member Pickler. He assured Mr. Pagenkopp that it is something the City wants to resolve as much as the residents and had been actively working toward a positive resolution. Len Lawicki, 1676 Ord Way, Anaheim. He is present to plead for help for an area of apartments located at the intersections of Haster - Katella and Orangewood which involve about twelve hundred units of affordable housing. He is part of a limited partnership who own forty units. Over the period of 1984-90 there were no vacancies to speak of but since 1990, gangs have moved into the area. The owners have been pleading with the City and have met with the City Manager and Redevelopment Staff at the request of the Mayor and Council Member Feldhaus. They formed an Apartment House Owner's Association and conduct monthly meetings. They meet with the City and Police in order to remedy the situation. The gangs have taken over the area to the point where residents have vacated their apartments. He then explained the dire situation where people have been threatened with their lives, apartments broken into, graffiti, residents unable to move down the alleys unless they pay a fee, etc. Nobody is responding to the crimes and tenants will not move in. Police do not respond when they report drugs on site. They want officers to alleviate the problem. The owners have offered buildings and substations. The Police are not responding to their requests. Mayor Daly. He asked that the City Manager set up a meeting with all property owners and the Police Chief. Council Member Feldhaus. He was going to broach this issue under Council comments. He rode the area with the Code Enforcement Supervisor, Richard LaRochelle and also with the Police and subsequently asked the City Manager to meet with the owners. He feels it is an emergency situation; Mayor Daly. That is the reason for asking for a meeting with the Police Chief. Council Member Feldhaus. Gang members have gotten hold of the territory and it is a very serious situation in the City. He even questions the safety of Code Enforcement personnel driving through the property. He was going to ask Council to give some kind of direction to Staff to give this matter highest priority. Mayor Daly. He reiterated that he is asking the City Manager to convene all the involved departments and to come up with a better plan of attack to resolve the problems in this area. Ed Calvin, 140 E. Wakefield. He is also a property owner in that area. It is one of low income housing suffering from serious problems. It is a lighted area with an extremely high vacancy rate. Gangs and drug dealers roam the neighborhood. The property owners and tenants are subjected to street terrorism. The vacancy rate is 50% and some buildings are completely empty taken over by gang members. Gang members congregate on his property from 11:00 p.m. to 5:00 a.m. They have been fighting these problems for many years. There has been a direct impact on business as a result of gang and drug activity. They would like help from the City to remove this area from 291 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5=00 P.M. the clutches of the criminals and to vigorously pursue and prosecute the criminal element, even the smallest offense, including trespassing. Jack Schaeffer, 211 S. Beach Blvd., Space 21, Anaheim 92804 - Pacific Sunset Mobile Estates. He posed questions to Council Member Pickler relating to how he would vote if he is elected to the 68th Assembly District on state wide mobile home rent control issues: Council Member Pickler commented that this was not the proper time and place to answer those questions and invited Mr. Schaeffer to call him directly. PUBLIC COMMENTS - AGENDA ITEMS: There was public input under Agenda Item A26 and Item C3. (See discussion under those items) MOTION: Council Member Pickler moved to waive reading in full of all ordinances and resolutions to be acted upon for the council meeting of June 7, 1994. Council Member Simpson seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member Pickler, seconded by Council Member Simpson, 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 Pickler offered Resolution Nos. 94R-85 through 94R-89, both inclusive, for adoption. Council Member Pickler offered Ordinance No. 5428 for introduction. Refer to Resolution/Ordinance Book. Al. 118: The following claims were filed against the City and action taken as recommended: Claims rejected and referred to Risk Management: a. Claim submitted by Rigoberto Monteon for bodily injury sustained purportedly due to actions of the City on or about November 6, 1993 through May 5, 1994. b. Claim submitted by Peter & Associates (Max Peters) for property damage sustained purportedly due to actions of the City on or about April 18, 1994. c. Claim submitted by Vakhtang Arpiarian for property damage sustained purportedly due to actions of the City on or about January 10, 1994. d. Claim submitted by Robert Gerard Pinedo for Property damage sustained purportedly due to actions of the City on or about February 25, 1994. e. Claim submitted by Ronald E. West for property damage sustained purportedly due to actions of the City on or about April 18, 1994. f. Claim submitted by Dana Ohanesian for property damage sustained purportedly due to actions of the City on or about May 31, 1993. Al. 118: Rejecting and/or denying certain claims filed against the City. A2. 156: Receiving and filing a Monthly Crime Statistics Report from the Police Department for the month of April, 1994. 292 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. 105: Receiving and filing minutes of the Public Utilities Board meetings held March 17, 1994, and April 21, 1994. 173: Receiving and filing a Notice to Customers of Proposed Rate Increase, Application No. 94-05-026, which requests the Commission authorize an increase in SoCalGas' authorized rate of return from the current 9.22% to the proposed 9.88%. This return, if approved, includes an increase in our return on common equity from 11.00% to 12.50% which would increase SoCalGas' revenues by 37.886 million annually. SoCalGas believes the requested rate of return is necessary to attract capital at reasonable rates and compensate the utility for increased business risks. 173: Receiving and filing before the Public Utilities Commission of the State of California the Application (94-05-026) of Southern California Gas Company for authorization to establish its cost of capital for 1995. 107: Receiving and filing Statistical Report Summaries ending January 31, 1994, and February 28, 1994. 140: Receiving and filing the Anaheim Public Library Monthly Statistical Report for the month of April, 1994. 105: Receiving and filing minutes of the Anaheim Public Library Board meetings held March 23, 1994, and April 27, 1994. 105: Receiving and filing minutes of the Community Redevelopment Commission meeting held March 30, 1994, and the special meeting held March 8, 1994. 173: Receiving and filing correspondence received from Southern California Edison Company regarding Docket No. ER87-483/Compliance Filing, regarding revised rates to amend those rates currently keing charged the Cities of Anaheim, Azusa, Banning, Colton, and Riverside, the Arizona Public Service Company, and the Southern California Water Company. A3. 150: Awarding the contract to the lowest responsible bidder, Tamang Electric, in the amount of $149,647 for Security Lighting Systems for Twila Reid and Maxwell Parks; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A4. 175: Awarding the contract to the lowest responsible bidder, ELC Electric, Inc., in the amount of $261,181.98 for Dowling/Yorba/Anaheim Substation Construction of 69KV Line Positions and Block Wall; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A5. 175: Awarding the contract to the lowest responsible bidder, SRD Construction, in the amount of $282,948 for Meter Vault Rehabilitation and/or Replacement; and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waiving any irregularities in the bids of both the low and second low bidders. A6. 174: RESOLUTION NO. 94R-85: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING APPLICATION TO THE ECONOMIC DEVELOPMENT ADMINISTRATION 293 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. OF THE UNITED STATES DEPARTMENT OF COMMERCE FOR FUNDING FOR THE ANAHEIM TELECENTER PROJECT ($25,000). Council Member Feldhaus abstained on this item on the basis of a conflict of interest. A7. 123: Approving a Letter of Agreement for the acquisition of Union Pacific Rail Road Company right-of-way property from La Palma to north of Orangethorpe at a cost of $528,350 and authorizing the Director of Public Works to execute said Agreement. A8. 148: RESOLUTION NO. 94R-86: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE ORANGE COUNTY TRANSPORTATION AUTHORITY TO ALLOCATE COMBINED TRANSPORTATION PROGRAM FUNDS FOR THE ANAHEIM CONVENTION CENTER AUTO USE RESTRICTION ZONE FEASIBILITY STUDY A9. 148: RESOLUTION NO. 94R-87: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE ORANGE COUNTY TRANSPORTATION AUTHORITY TO ALLOCATE COMBINED TRANSPORTATION PROGRAM FUNDS (in the amount of $100,000) FOR THE COMMERCIAL RECREATION AREA-STADIUM BUSINESS CENTER TRANSPORTATION NETWORK FEASIBILITY STUDY. Al0. 148: RESOLUTION NO. 94R-88: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REQUESTING THE ORANGE COUNTY TRANSPORTATION AUTHORITY TO ALLOCATE COMBINED TRANSPORTATION PROGRAM FUNDS (in the amount of $100,000) FOR THE COMMERCIAL RECREATION AREA-STADIUM BUSINESS CENTER CLEAN FUEL FEEDER/DISTRIBUTION SYSTEM. Ail. 160: Accepting the bid of Civic Helicopter Parts, Inc., in an amount not to exceed $60,000 for helicopter replacement parts, as required for the period July 1, 1994, through June 30, 1995, in accordance with Bid #5270. Al2. 160: Accepting the bid of P. S. Trading, in an amount not to exceed $90,000 for helicopter Jet A fuel and AVGAS 100, as required for the period July 1, 1994, through June 30, 1995, in accordance with Bid #5267. Al3. 123: Waiving Council Policy 306, and authorizing the Purchasing Agent to enter into a Lease/Purchase/Maintenance Agreement without competitive bidding or advertising with XES, Inc., in an amount not to exceed $95,000 for an electrostatic plotter for the Utilities Department, Water Engineering, for a period of forty-eight months beginning July 1, 1994,. Al4. 123: Waiving Council Policy 306, and authorizing the execution of an Agreement with Montgomery Elevator Company, in an amount not to exceed $199,400.37 to maintain the five elevators located at City Hall West for a period of five years beginning June 1, 1994. Al5. 123: Approving an Agreement with the County of Orange to provide funding assistance, in an amount not to exceed $50,000 in Urban Parks Program funds for the development of a Boys and Girls Club of Anaheim facility in downtown Anaheim, and authorizing the City Manager to sign said Agreement. 123: Approving an Agreement with the Boys and Girls Club of Anaheim for the transfer of $50,000 to the Club. 106: Approving an appropriation of $50,000 from the Parksites and Playgrounds Fund (216 Fund) into revenue account 216-213-4743-1823 and into expenditure/account 216-213-4743-8623. 294 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. Al6. 123: Approving a Tenant Rental Agreement with Jose Chavolla and Magdalena Chavolla for rental of an apartment at the Jeffrey-Lynne Neighborhood Center. Al7. 000: Approving the waiver of park user fees for the use of Chaparral Park by the Girl Scout Council of Orange County for Girl Scout Summer Day Camp, July 11-14, 1994. A18. 123: Approving an Agreement with City of Westminster for an eight-week lease of Anaheim's mobile recreation van for a summer recreation outreach program. Al9. 184: Reviewing the need for continuing the Fourth Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services on April 5, 1994, concerning the Santiago Landslide and Pegasus Landslide in the City of Anaheim, and taking no action to terminate the local emergency at this time. A20. 123: Approving the Third Amendment to Agreement with Eberhart and Stone, Inc., for geotechnical services pertaining to the Santiago Landslide. A21. 184: Reviewing the need for continuing the Second Proclamation of the Existence of a Local Emergency issued by the Director of Emergency Services on April 5, 1994, concerning damage within the City of Anaheim resulting from the Northridge Earthquake occurring on January 17, 1994; and taking no action to terminate the local emergency at this time. A22. 127: RESOLUTION NO. 94R-89: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ~nNAHEIM EXPRESSING SUPPORT FOR THE "COMMITTEE FOR 21,000 NEW JOBS" EFFORTS TO PLACE THE "ORANGE COUNTY/EL TORO ECONOMIC STIMULUS INITIATIVE" ON THE BALLOT. A23. 139: Approving the recommended positions on the following legislative proposals, and authorizing the Mayor to communicate said positions to appropriate representatives in Sacramento and Washington, D.C.: SUPPORT AB 2742 (Lee) regarding the imposition of conditions upon all liquor licensee requests. SUPPORT SB 1633 (Hurtt) regarding the voting requirement for South Coast Air Quality Management District representatives. SUPPORT PROPOSITION iA (SB 131 Roberti) regarding the Earthquake Relief and Seismic Retrofit Bond Act of 1994. SUPPORT INCLUSION OF LOCAL PARTNERSHIP ACT in the Federal Crime Omnibus bill currently under consideration by the House-Senate Conference Committee. Council in their approval of this item determined delete support of Proposition iA since the issue will be resolved in the election today. is the only item to be deleted. That A24. 161: Approving the first amendment to the HOME First-Time Buying Down Payment Assistance Program guidelines and procedures. A25. 107: ORDINANCE NO. 5428 - INTRODUCTION: Amending Sections 8.08.010, 8.08.020, 8.08.030, 8.08.060, 8.08.070, 8.08.080, 8.08.090, 8.08.100, 8.08.120, 8.08.140, and 8.08.160 of Chapter 8.08 of Title 8 of the Anaheim Municipal Code relating to Animal Control, Welfare and License Requirements. A26. 175: Approving the participation of the Public Utilities Department in the Commercial/Industrial/Institutional Water Survey Program (CII Program) by 295 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. Metropolitan Water District of Southern California which provides water audits at customers' facilities. 123: Approving an Agreement between the City of Anaheim and MWD's contractor, Pequod Associates, Inc., in an amount not to exceed $19,800 for the purpose of conducting water use audits, as recommended by the Public Utilities Board at their meeting of May 19, 1994. Phil Knypstra, 2520 S. Gelid, Anaheim. He is opposed to the $90,000 expenditure by MWD on the program. It is rate payers' and tax payers' money. The City is going to audit large volume water users. He questions why the City intends to spend $6,000 to do so when those companies have the expertise to do their own audits. He does not feel this joint venture is worth tax payer dollars. Ed Aghjayan, Public Utilities General Manager. As part of their customer service effort, they do not have enough water to go around and unless they help industries, companies, businesses, schools, hospitals, they will have another shortage and the price of water will go up. 75% of this program will be funded by MWD. These are very high quality audits, very intensive and will produce savings that automatically would not be there. Most companies do not have an extensive staff or expertise with respect to water conservation. It is good public policy and will hold down costs in the long run and to ensure adequate supply. A27. 123: Approving the Mona-Gonder Transmission Service Agreement between Deseret Generation and Transmission Co-operative and the City of Anaheim for transmission services; and authorizing the Public Utilities General Manager to execute said Agreement and any other related documents on behalf of the City, as recommended by the Public Utilities Board at their meeting of May 19, 1994. A28. 114: Approving minutes of the City Council meetings held May 10, 1994, and May 17, 1994. Roll Call Vote on Resolution No. 94R-85 for adoption: AYES: COUNCIL MEMBERS: Simpson, Pickler, Hunter, Daly NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: Feldhaus The Mayor declared Resolution No. 94R-85 duly passed and adopted. Roll Call Vote on Resolution Nos. 94R-86 throuqh 94R-89, both inclusive, for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly None None The Mayor declared Resolution Nos. 94R-86 through 94R-89, both inclusive, duly passed and adopted. END OF CONSENT CALENDAR. MOTION CARRIED. 296 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5~00 P.M. ITEMS B1 - B9 FROM THE PLANNING COMMISSION MEETING OF MAY 16, 1994 INFOR~tATION ONLY - APPEAL PERIOD ENDS JUNE 7, 1994 B1. 179: CONDITIONAL USE PERMIT NO. 3032 AND NEGATIVE DECLARATION: B2. OWNER: Bryan Crow Evangelistic Association and Euclid Street Baptist Church of Anaheim, Attn: Bryan Crow, 8712 E. Santa Ana Canyon Road, Anaheim, CA 92808 LOCATION: 8712 East Santa Ana Canyon Road (The Garden Church) Property is approximately 34 acres located on the south side of Santa Ana Canyon Road and approximately 3,689 feet west of the centerline of Gypsum Canyon Road (The Garden Church). Modification of a conditional use permit to permit the addition of a temporary prefabricated modular structure and modification of a condition of approval pertaining to the time limitation of a previously -approved semi-enclosed garden church. ACTION TAKEN BY THE PLANNING COMMISSION: APPROVED modifications to CUP NO. 3032 (PC94-55) (6 yes votes, 1 absent). Negative Declaration previously approved. 179: VARIANCE NO. 4250 AND NEGATIVE DECLARATION: OWNER: EMC Mortgage Corporation, 511 E. John Carpenter Fwy., Irving, Texas 75062 AGENT: THE ELI HOME, INC., 140 S. Imperial Hwy., Anaheim, CA 92804; JEFFREY FARANO, 2100 S. State College Blvd., Anaheim, CA 92806 Location: 100 S. Canyon Crest Drive. Property is approximately 0.22 acre located on the southeast corner of Santa Ana Canyon Road and Canyon Crest. Waiver of maximum structural height within the Scenic Corridor Overlay Zone to convert an existing barn to a habitable single-family residential structure. ACTION TAKEN BY THE PLANNING COMMISSION: WITHDRAWN. B3. 179: CONDITIONAL USE PERMIT NO. 3680 AND NEGATIVE DECLARATION: OWNER: EMC Mortgage Corp., Attn: Sheri Wilson, 51] E. John Carpenter Fwy., Irving, TX 75062 AGENT: THE ELI HOME, INC., 140 S. Imperial Hwy., Anaheim, CA 92804; JEFFREY FARANO, 2100 S. State College Blvd., Anaheim, CA 92806 LOCATION: 100 S. Canyon Crest Drive. Property is approximately 0.22 acres located at the southeast corner of Santa Ana Canyon Road and Canyon Crest Drive. To permit a group home for abused women and their children. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3680 GRANTED for one year (PC94-56) (6 yes votes, i absent). Approved Negative Declaration. The decision of the Planning Commission was appealed by Jean Secress, Representative of the Canyon Crest Drive Homeowner's and a public hearing will be scheduled at a later date. B4. 179: CONDITIONAL USE PERMIT NO. 3606 AND NEGATIVE DECLARATION: OWNER: Lederer Anaheim Ltd., 1990 Westwood Blvd., 3rd Floor, Los Angeles, CA 90025 AGENT: JOHN SCHROEDER, 1440 S. Anaheim Blvd., Anaheim, CA 92805 LOCATION: 1440 South Anaheim Boulevard. Property is approximately 14.74 acres located north and east of the northeast corner of Cerritos 297 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. Avenue and Anaheim Blvd. Amendment or deletion of a condition of approval pertaining to the time limitation of an existing restaurant with on-premise sale and consumption of alcoholic beverages in conjunction with an indoor swapmeet facility. ACTION TAKEN BY THE PLANNING COMMISSION: Approved amendment to Condition of approval (PC94-57) (5 yes votes, 1 no vote, and 1 absent). Negative Declaration previously approved. B5. 179: WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 3678 AND NEGATIVE DECLARATION: OWNER: Ellwin E. Ashwill And Alice Benae Ashwill, 333 City Blvd. West #2150, Orange, CA 92668 AGENT: JOANNA BARNES, 333 City Blvd. West, #2150, Orange, CA 92668 Location: 1010 N. Grove Street. Property is approximately 1.14 acres located on the east side of Grove Street approximately 895 feet south of the centerline of La Palma Avenue. To permit a boat sales, repair and manufacturing facility with retail sales of parts and accessories with waiver of minimum number of required parking spaces. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3678 GRANTED, IN PART, (PC94-58) (6 yes votes, 1 absent). Waiver of code requirement APPROVED, IN PART, with a minimum of 27 parking spaces to be provided. Approved Negative Declaration. B6. 179: CONDITIONAL USE PERMIT NO. 3677, CATEGORICALLY EXEMPT, CLASS 1: OWNER: West Anaheim Community Hospital and Wamed Medical Partnership, ATTN: David Culbertson, Executive Director, 3033 W. Orange Ave., Anaheim, CA 92804 AGENT: EDWARD H. ENDO, 3916 Sepulveda, #208, Culver City, CA 90230 LOCATION: 3033 West Orange Avenue (West Anaheim Medical Center). Property is approximately 11.2 acres located at the northwest corner of Orange Avenue and Beach Boulevard. To permit an approximate 390-square foot addition to an existing hospital for Magnetic Resonance Imaging (MRI) use. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3677 GRANTED (PC94-59) (6 yes votes, 1 absent). B7. 179: CONDITIONAL USE PERMIT NO. 3681 AND NEGATIVE DECLARATION: OWNER: Harold G. Peters, 3990 East Miraloma Ave., Anaheim, CA 92806 LOCATION: 3990 E. Miraloma Avenue. Property is approximately 0.51 acres located at the southwest corner of Miraloma Avenue and Van Buren Street. To permit a medical billing office within an existing industrial building. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3681 GRANTED (PC94-60) (6 yes votes, 1 absent). Approved Negative Declaration. BB. 179: RECLASSIFICATION NO. 93-94-12 AND NEGATIVE DECLARATION: OWNER: Lars T. Jensen, 15579 Ashgrove Drive, La Mirada, CA 90638 LOCATION: 131-135 West Elm Street. Property is approximately 0.11 acre located on the north side of Elm Street approximately 120 feet east of the centerline of Lemon Street. For a change in zone from the ML (Industrial, Limited) Zone to the 298 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. RM-1200 (Residential, Multiple-Family) or a less intense zone to retain an existing duplex. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 93-94-12 GRANTED, UNCONDITIONALLY, (PC94-61) (6 yes votes, 1 absent). B9. 123: WAIVER OF CODE REQUIREMENT CONDITIQNAL USE PERMIT NO. 3679 AND NEGATIVE DECLARATION: OWNER: Orange County Association for Buddhist Practices, Inc., 1501 West Katella Avenue, Anaheim, CA 92802 AGENT: DR. RUH-MING LI, 3636 Birch Street, Newport Beach, CA 92660 LOCATION: 1501 West Katella Avenue. Property is approximately 0.98 acre located northwest corner of Katella Avenue and Ninth Street. To permit a 2-story, 6,136 s.quare foot dormitory in conjunction with an existing Buddhist temple with waiver of (a) minimum number of parking spaces and (b) minimum setback of institutional uses adjacent to a residential zone boundary. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3679 GRANTED, IN PART, (PC94-62) (6 yes votes, 1 absent). Waiver of code requirement APPROVED, IN PART, waiver (a) approved for 15 open spaces, and waiver (b) approved for the east property line only. Approved Negative Declaration. ITEMS B10 FROM THE PLANNING COMMISSION MEETING OF JUNE 1, 1994 INFORMATION ONLY - APPEAL PERIOD ENDS JUNE lit 1994 B10. 179: RECLASSIFICATION NO. 93-94-10 WAIVER OF CODE REQUIREMENT CONDITIONAL USE PER34IT NO. 3686 TENTATIVE TRACT MAP NO. 14952 AND NEGATIVE DECLARATION: OWNER: S.C. District Council of Carpenters, C/O DeCarlo & Connor, 500 S. Virgil, 4th Floor, Los Angeles, CA 90020 AGENT: JAMBOREE HOUSING CORP., Attn: Lila Lieberthal, 17200 Jamboree Blvd., Ste, O, Irvine, CA 92714 LOCATION: 608 W. Vermont Avenue. Property is approximately 2.78 acres located on the south side of Vermont Avenue and approximately 190 feet east of the centerline of Citron Street. To reclassify subject property from the RS-A-43,000 zone to the RM-2400 zone. To construct a 2-story, 48-unit, affordable RM-2400 condominium complex with waiver of minimum number of required covered parking spaces. To establish a l-lot, 48-unit condominium subdivision. ACTION TAKEN BY THE PLANNING COMMISSION: Tentative Tract Map No. 14952 APPROVED (6 yes votes, 1 absent). Approved Negative Declaration. END OF THE PLANNING COMMISSION ITEMS, Bll. 179: ORANGE TREE MOBILEHOME PARK CONVERSION IMPACT REPORT: OWNER: Campanula Properties, Attn: Jack Stanaland, 1590-10 South Coast Highway, Laguna Beach, CA 92651 AGENT: TALLEY AND ASSOCIATES, INC., 500 N. State College Blvd., Ste. 1020, Orange, CA 92668 LOCATION: 1400 S. Douglass Road (ORANGE TREE MOBILEHOME PARK). Property is approximately 25 acres located on the east side of Douglass 299 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. Road and approximately 1080 feet north of the centerline of Katella Avenue. Review of a submitted Conversion Impact Report to close an existing mobilehome park pursuant to Government Code Section No. 65863.7. ACTION TAKEN BY THE PLANNING COMMISSION: Determined to be insufficient within the meaning of Government Code Section 65863.7 with the recommended revisions to the relocation cost requirements. The decision of the Planning Commission was appealed by Jack Stanaland, President, Campanula Properties in letter dated May 23, 1994 under the letterhead of Hart King Coldren, Attorney's at Law. At its meeting of May 24, 1994 the City Council determined that on June 7, 1994, the Council would either set a date for public hearing on this matter or refer it to a hearing officer. Someone from the audience spoke now as she did earlier in the meeting asking when the public hearing would take place. City Clerk Sohl. The City Council has the option tonight to either set the appeal for a hearing by the City Council with the suggested date of July 12, 1994 or refer the matter to a hearing officer for a hearing no later than July 22, 1994. Mayor Daly. He recommends that the Council refer the matter to a hearing officer. MOTION: Council Member Daly moved to refer the appeal of the Orange Tree Mobile Home Park Conversion Impact Report decision to a hearing officer as selected by the City Attorney for a hearing to be held on a date approved by the hearing officer but not later than July 22, 1994. Council Member Simpson seconded the motion. Before a vote was taken, Council Member Hunter asked if the hearing officer would be Judge John Flynn; City Attorney White. If the motion passes, it would be his intention to appoint retired Supreme Court Judge John Flynn and tentatively the date of the hearing would be July 8, 1994 subject to final clearance of his calendar. Notices would go out to all the tenants and owner of the mobile home park. Council Member Hunter. He would support that if somebody like Judge John Flynn is appointed who will be fair. He is pleased that the Council will be taking it out of the political arena to let an unbiased person make a decision. A vote was then taken on the foregoing motion. MOTION CARRIED. Cl. 127: PROPOSED AMENDMENTS TO CHAPTER 1.09 OF THE ANAHEIM MUNICIPAL CODE RELATING TO CAMPAIGN REFORM: To consider the adoption of an ordinance amending Chapter 1.09 of Title 1 of the Anaheim Municipal Code relating to the City of Anaheim Campaign Reform Law. Council Member Simpson offered Ordinance No. 5427 for adoption. Refer to Ordinance Book. ORDINANCE NO. 5427: AMENDING SECTION 1.09.055 OF, AND ADDING SECTION 1.09.125 TO, CHAPTER 1.09 OF TITLE 1 OF THE ANAHEIM MUNICIPAL CODE RELATING TO CAMPAIGN REFORM. (Introduced at the meeting of May 24, 1994, Item Cl.) 300 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. Roll Call Vote on Ordinance No. 5427 for adoption: AYES: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None C2. 173: COMMERCIAL AIRPORT AT EL TORO: Discussion requested by Council Member Pickler at the meeting of May 24, 1994, following the E1 Toro Reuse workshop, regarding the support of an initiative being circulated for a commercial airport at E1 Toro. Mayor Daly. Item A22 on today's agenda was a resolution in favor of placing the initiative on the November ballot regarding the conversion of E1 Toro to a civilian airport. Council Member Pickler. That item took care of part of the issue. He would like to see the City work with the Chamber and the Visitor and Convention Bureau to make sure their support is there as well. Perhaps next week or in two weeks that could be done. By that time, the initiative will have qualified. A representative from the Chamber of Commerce present in the chamber audience stated they are already supportive. Mayor Daly asked if anyone wished to comment on this item; there were no additional comments at this time. It was determined that the matter be continued for two weeks and that Staff work with the Chamber and Visitor and Convention Bureau to coordinate information on the matter; Council Member Pickler suggested that Staff work with other cities as well. C3. 135: PRIVATE SECTOR PROPOSALS TO OPERATE THE CITY GOLF COURSES: To consider the recommendation to reject all proposals submitted in response to the Request for Proposals for private operation of the City's golf courses, and continue to self-operate the golf courses with the intent to maximize net revenues. Submitted was report dated May 23, 1994 from Christopher Jarvi, Director of Parks and Recreation and Community Services recommending that the Council reject all proposals submitted in response to the Request For Proposals for private operation of the City's golf courses and continue to self operate the golf courses (Dad Miller and Anaheim Hills Golf Course) with the intent to maximize net revenues. city Clerk Sohl. A letter was received today from Anaheim Golf Corporation in Long Beach requesting a two week continuance of this item and the Chamber of Commerce also requested that it be continued for two weeks. Mayor Daly. Staff is ready and prepared to make a presentation this evening along with the consultant. He is asking that Staff give their presentation and any input Staff would like the consultant to give. Subsequently, he will ask that the Council hold off and honor the request for continuing decision on this matter for two weeks. If Council grants the two week continuance, that public comments also be given in two weeks. Council Member Hunter. He feels that those who wish to do so should have the opportunity to speak this evening. 301 City Hall, Anaheim, California - COUNCIL MINIK RECESS: By General Council consensus, the Coun correct a technical difficulty with the video e AFTER RECESS: The Mayor called the meeting to being present. (6:50 p.m.) City Manager Ruth. At the direction of the Cit to prepare an RFP for privatization of the City diligently with consultants over the past sever solicited proposals and received four which wer process. Staff will be walking the Council thr analysis of the RFP process. Chris Jarvi, Director of Parks/Recreation Commu consultant, Mr. Gene Krekorian will be making a comprehensive report which has been provided to the press, City Clerk, and Libraries for public Chris Jarvi, Director of Parks/Recreation Commu gave the history on the matter which started in Council requested that Staff look at the possib City's two golf courses. The City Manager comm concluded in July 1993. The study indicated th. to the City in the neighborhood of three hundre. thousand dollars a year if the courses were pri Council directed Staff to put out an RFP to cla He then briefed the RFP process, the response (~ Trust/Landscape List, Heritage Golf Properties, evaluation process. The City's consultant is a approach used for the financial analysis. (Also Golf Course Privatization Report - May, 1994). Gene Krekorian, Economic Research Associates (El to assist the City in evaluating the financial proposals received. They were asked first to c~ of the various proposals. They received propos~ services and also ones which were concessionair, operations. Subsequent to that, they were aske~ proposal with continued City self-operation of difficult to compare the proposals for a variet to compare one against the other, let alone to continued self-operation. The RFP is one of th various proposals which came back were scored q~ forced to adopt a large number of assumptions a] clearly in the report Staff presented to the Coq extensive presentation covered the material pre~ to the specifics of the financial analysis. report) Chris Jarvi. He explained the preliminary find2 American Golf was the candidate most capable of service with minimal risk, (2) that the service determined not to be that desirable and they fo% ever done on a service contract and, (3) that t~ provided is comparable or better than similar g( courses in almost all categories. He then brie~ first five years of operation, net revenue comp~ proposal, present value, all proposals, summary 302 !ES - JUNE 7, 1994 - 5:00 P.M. =il recessed for ten minutes to ~uipment. Drder, all Council Members y Council, Staff was requested 's Golf Courses. Staff worked al months, prepared the RFP, ~ evaluated through a lengthy )ugh their findings and ~ity Services and Golf and the presentation. It is a the Council and distributed to distribution and review. ~ity Services and Golf. He January of 1993 when the [lity of privatization of the [ssioned a study which was ~re was a potential advantage thousand to five hundred atized. As a result, the ~ify the actual dollar amounts. %merican Golf Corporation, Golf Golf Holding, Inc.) and the [so present to explain the see report, City of Anaheim {A). ERA was retained in April ~lement of the various )nduct a comparative analysis ~ls for management contract or lease of facility to examine the strongest he courses. It is very , of reasons. It is difficult :ompare them with the City's best he has seen. The ite differently. They were ~d factors which are designated ~ncil. Mr. Krekorian's ~ented in the report relating ~e pages 7 through 13 of the .ngs in the analysis - that (1) duplicating Anaheim's level of contract approach was ~nd they had done the only RFP ~e City service level currently ,If'courses run like the City's ~ed net revenue comparison .rison for the full term of the comparison and net revenue City Hall~ Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. difference. He also briefed the nine conclusions listed on page 14 of the report followed by the recommendation of Staff upon which he elaborated. The recommendation is as follows: RECOMMENDATION: He then elaborated on the recommendation by Staff, some of the points being, that of 65 cents out of every new dollar, the City would get 35 cents. If the City maintained the courses they would get the entire dollar. Staff is confident they can do just as well; they have been in the business and can operate the courses efficiently. In the first year in their holdings of the golf courses, their department already has reduced operating costs by $200,000. Other measures - reduce full-time employees to part-time, they expect to experience less irrigation repairs and expect to have less expenses relative to the club house, cut expenditures by $36,000 by driving over the driving range channel, double decking the driving range which would add another $70,000, declare Fridays a weekend and establish a non-resident fee of one dollar which would raise $90,000 and rebuild the Anaheim Clubhouse as a Community Center which would increase food and beverage income. Golf is not an industry that is showing any signs of down turn. The only reason for a down turn would be poor management or the weather and Southern California has an average of about twelve days of rain a year. Staff does not see a good business reason to turn the courses over to the private sector. The department has recommended privatization where it makes good sense. They recommend that all proposals be rejected in favor of self operation. City Manager Ruth, answering the Mayor, stated he has nothing to add but in his 35 to 36 years of public service, he has never seen a more comprehensive report. It is very thorough and, in his opinion, very objective. The report has attempted to address the concerns of the Council and public. Staff is prepared to respond to any questions or elaborate on any issues. Mayor Daly. He reiterated that there are two requests for continuance. He will leave it to the Council whether or not they wish to ask questions this evening. Council Member Hunter. He would like to hear from the public tonight; Council Member Simpson. His preference would be tempered by whether or not the item is continued, if the matter is going to be continued two weeks, he feels it is better to have those who wish to do so speak on the night the decision is going to be made. He does not know how many are going to speak in favor or in opposition, but he is concerned about having public input tonight and then having Staff meeting with American Golf or anyone else in the meantime. Council Member Hunter. Two members of the Council wanted to take a look at privatization of the Golf Courses which he was opposed to and still is. Staff has done a "Yeoman's" job in analyzing the situation and have come back with a recormmendation that the courses not be privatized. He cannot believe that three members of the Council are ready to give up the "cash register". This is a grave decision. If somewhere down the line the Council is going to make a decision to privatize, the question should go to a vote of the people and put on the November ballot. It is an issue that every citizen of the City should be concerned about. He feels the Council should vote tonight. He understands present day value because he sees it every day in court. It is not a lot of money. To sell out the golf courses for a hundred thousand dollars a year should not be done. He questioned, what happened to the 303 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. "Anaheim Way" and the concern of the quality of life in Anaheim. Giving up the courses is giving up both. The courses are a valuable asset and golf is one of the most popular sports in the world. It is not a losing business enterprise and there is money to be made by government. When the Council said to send the matter out and see what comes back, it was his assumption that they would not even look at a proposal that would not bring in at least $500,000 more a year - it is only $100,000. He reiterated, he wants public input tonight and the Council to vote on the matter tonight. Mayor Daly. The report was made available late Friday afternoon concluding a six month process of inviting, receiving and analyzing proposals. He sees nothing wrong with allowing two additional weeks so that members of the public and the business community who asked be given some additional time. Members of the public who are present and asked to speak have every right to do so and subsequently the matter continued two additional weeks. Council Member Simpson. Speaking to the City Manager stated that the presentation made was pretty comprehensive. He asked if people were interested in hearing that presentation in groups, could he make Staff available; City Manager Ruth. Staff would be happy to do so. MOTION: Council Member Daly moved to continue a decision on the recommendation of Staff relative to private sector proposals to operate the City golf courses for two weeks to June 21, 1994. Council Member Feldhaus seconded the motion. MOTION CARRIED. Before a vote was taken the following people spoke on the issue and gave their views as summarized: Sharon Ericson, President AMEA and a resident adjacent to Anaheim Hills Golf Course. Two years ago, the City built a 2.3 million dollar club house at the Dad Miller Course, paid for from golf revenues, and since then over $800,000 has been invested in course improvements at the two courses. During the past three years, the courses have contributed 3 million dollars to the City's general fund and 2.5 million in reserve retained earnings. Anaheim's courses are the envy of cities all over the country. Anaheim can be extremely proud of the unique combination of public and private enterprise. Many of the functions at the courses are already privatized such as the Pro Shop, restaurant, driving range, etc. The care and maintenance of the courses are in the hands of dedicated and highly skilled maintenance workers-all trained in the Anaheim way. She elaborated further on the excellence of the courses and that quality should not be sacrificed for profit. There is no reason to continue the matter for two more weeks. The sixty five plus full-time and part-time employees at the courses and contractors have put their lives on hold for a long time. She urged the Council to vote tonight to continue with the current successful golf operation and, if not tonight and the Council decides to go with American Golf in two weeks, that the people be allowed to vote on this important issue. The courses are not the Council's courses. Steve Cahodes, resident of Anaheim Hills. The City Council should take Mr. Jarvi's Staff recommendation and consider USGA'S findings. He urged the Council whether tonight or in two weeks to follow Staff recommendation and not privatize the courses. It is not in the City's best interest to tie the courses up for twenty years. Brad White, 7681 Alter Lane, Anaheim~ He asked that the Council consider the proposal from American Golf especially if it can save the City money. 304 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. David Stewart, 204 W. Ball Road, Anaheim. He is for anything that can save the City money and if there are dollars that can be spent on Police, it is more important than golf. Rob Yule, 1919 E. Romneya, Anaheim. He supports streamlining City services. The Council should consider supporting the proposal. Dick Clark, President, Chamber of Commerce. The City golf courses are top quality. Nobody is challenging the quality of the courses, service, or quality of life in Anaheim. It was an extensive study, the report was just released and it is only fair that there is an opportunity to have some dialogue on it - separate work shop meetings. That is the reason for the Chamber's request for a continuance. Loretta Sanchez, 1308 N. Paradise Court, Anaheim. She received the report on Friday and has gone through it. Her background is looking at the efficiency of government and businesses. If saving $200,000 or $100,000 means more Police, more Youth Development Programs, and more additional Library hours, she is supportive. It is important that the matter be continued for a couple of weeks. Saving money is very important for the City. Danielle Provota, 1112 W. Broadway, Apt. 5, Anaheim. She supports privatization. Jim Aiken, 21561 High Country Drive, Trabuco canYon. He is a former Anaheim resident and is Vice President of the Anaheim Hills Golf Club. He is also a member of other golf courses whose rates for golf are higher than those at Anaheim Hills. Perhaps they do not need to look at cutting expenses but instead the possibility of some elasticity in raising rates which will enhance the revenue picture. Marilyn Hauk, Camino Carrer, Anaheim. She first read the statement of goals of the Golf Department. She is opposed to privatization of the courses. For any one to say that $100,000 can be better used for Police is overlooking the fact that a lot of the City's youth play golf and there are many school golf programs which are a positive contribution to the well being of the youth of the community. Council Member Pickler. He sat down with Staff and went through the privatization report. If they are talking about a $100,000 he wants to be sure that is the figure. One of the reasons he agreed to go out for RFP's was the possibility that there could be $500,000 to one mJ. llion dollars more in revenue than the courses are presently bringing in. Staff is saying they can bring in 1.1 or 1.2 million and American Golf 1.6. If the figure is four hundred to $500,000, it is ~omethlng he wants to look at. His mind is st£11 not made up and he is going to analyze the situation to the point where he is satisfied. He agrees to a two week continuance. A vote was then taken on the foregoing motion to continue the matter for two weeks to the meeting of June 21, 1994 and carried by the following vote: AYES: Feldhaus, Pickler, Daly NOES: Hunter ABSTAINED: Simpson 305 City Hall, Anaheimr California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. C4. COUNCIL COMMENTS: There were no Council comments. C5. 112: REPORT ON CLOSED SESSION ACTIONS: Report by City Attorney. City Attorney Jack White. City Council in Closed Session authorized mediation of the construction contract claims in the case of Norman Wright Mechanical Equipment Corporation v. R. P. Richards, Inc.~ Orange County Superior court Case No. 72-28-63. The vote of the Council was all Ayes. SWEAR IN OF THOSE TESTIFYING AT PUBLIC HEARINGS: The City Attorney announced that it is appropriate at this time for all those intending to testify at any or all of the public hearings including staff be sworn in at this time. Those testifying were requested to stand by the City Clerk and asked to raise their right hand. The oath was then given. Mayor Daly. He is advised by the City Attorney that we can combine the public hearings for Agenda Item's D1, D2, and D3 into one hearing since they all involve the same issue. Therefore, unless there is an objection from other members of the Council, he proposes that the public testimony on Item's D1, D2, and D3 be received at one time. D1, D2, and D3. 137: PUBLIC HEARING - CITY COUNCIL HEARING TO CONSIDER ALTERING THE TYPES OF PUBLIC FACILITIES FINANCED BY THE CITY OF ANAHEIM COMMUNITY FACILITIES DISTRICT NO. 1989-1 (SYCAMORE CANYON), COMMUNITY FACILITIES DISTRICT NO. 1989-2 (THE HIGHLANDS}, COMMUNITY FACILITIES DISTRICT NO. 1989-3, (THE SUMMIT): To consider altering the types of public facilities financed by City of Anaheim Community Facilities District No. 1989-1 (Sycamore Canyon), Community Facilities District No. 1989-2 (The Highlands), Community Facilities District No. 1989-3 (The Summit) by (i) abandoning the proceedings or (ii) after passing upon all protests and determining that a majority protest does not exist, adopting a resolution submitting the question of changing the types of public facilities to be financed by said District to the qualified electors of the District. Submitted were reports from the City Attorney dated May 23, 1994 and April 27, 1994 regarding the subject. Mayor Daly then clarified that the only issue under consideration is whether the City Council should call a special election in each of the three Community Facilities Districts. The purpose of the election would be to allow the residents in the three districts to vote on whether the district funds currently restricted to the Santa Ana Canyon Road widening project should be reallocated to the construction of the Police Substation currently designated to be built on the Dream Street site in the Sycamore Canyon Project. Any public comments or testimony should be limited to whether or not an election should be called to allow the district residents to vote on this issue. To date, the City Council has received many petitions and letters supporting an election in each district. Therefore, it is not necessary that every person supporting an election testify at this hearing. In fact, it would be helpful to the Council if the residents would limit testimony in favor of the election to one representative for each district. If they feel there is pertinent additional information which is not been mentioned by the representative speakers or if there is opposition to the calling of an 306 City Hall~ Anaheimf California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. election in their respective districts, those people are also welcomed to speak. It will be necessary for each speaker to state his or her name, address and indicate which of the three districts he or she resides in. Also, any written protest to the calling of the election must be submitted to the City Clerk prior to the close of the public hearing. Before taking public input, City Attorney White explained that the election would be a mailed ballot election and the date is tentatively September 9, 1994; City Clerk Sohl clarified that the ballots would have to be returned by September 9, 1994. She also reported for Council Member Pickler that the cost for the election will be between $5,000.00 and $6,000.00. City Attorney White explained that the funds for the election are currently held in district funds for each of the three districts. The following public input was received: Vincent Lee Wertenberg, 831S. Parkland Place, Anaheim 92808. Sycamore Community Facilities (CFD 89-1) he is present to encourage the Council to allow the election to take place. Steve Cohodes, 7878 E. Rainview Court, Anaheim (Highlands CFD 89-2) he is Treasurer of the Highland's Maintenance Association. They fully support and encourage the City to hold the election. Mari Penny, 8125 Oxley Court, Anaheim (Summit CFD-3) she is present to encourage the Council to put the issue to a vote. They are pleased to have the chance to be before the Council today. The reason they want to consider having the funds go from the Santa Ana Road widening to the Police Substation is because they want to see a Police Substation built. She then asked even if the money is devoted to substation funds which will make about 4.6 million, when could they expect the substation to be built. City Manager Ruth. Based on the initial analysis, the City would still be about two million dollars short to construct a thirty thousand square foot facility which has been proposed by the department and the consultants, and are looking at whether it can be phased. They would be hiring an architect in the near future to design the facility. If the Council approved the funding for the project, construction could start some time mid-year and be completed in a year's time. A year from January would be eighteen months. There are operational issues as well. The facility can be built but operating costs are associated with that. Staff is in the process of doing an evaluation of those costs and they will come back to Council with a full analysis of those costs as well. Mayor Daly. It would be helpful if Staff, as accurately as possible, could characterize what the shift in Mello Roos funds will mean in terms of the time table for a new Police Substation. At some point, it would be helpful to have all the information in writing. City Manager Ruth. Staff would be able to come back within 30 days. A good deal of data is readily available. Assuming that the election will show that the residents want to reallocate that money, it would help substantially in expediting the project. 307 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5~00 P.M. Mari Penny. She understands the proposed substation would be about thirty thousand square feet at a cost of six million dollars plus. She feels a nice facility can be built for less than that. If it is phased so that it could be built with the funds that are available, that would be a plus. Mayor Daly. That question as well as the phasing question will be addressed as the City Manager reports back to the Council in writing. Council Member Hunter. The Police Department has leased approximately twenty five hundred square feet next to ACE Hardware in the Anaheim Festival Shopping Center for about $800.00 a month. The people who own the Festival are giving this to the Police Department temporarily for a Police Substation. The real issue is something for a future Council to decide. Even if they come up with the money to build the substation, it is going to take a lot more to man the facility with additional offices. This or another Council is going to have to "Bite the Bullet" about raising taxes to hire more officers. City Clerk Sohl announced that she had not received any written objections to calling an election. Mayor Daly closed the Public Hearing. Council Member Pickler offered Resolution 94R-90 through 94R-95, both inclusive, for adoption. Refer to Resolution Book. RESOLUTION NO. 94R-90: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALLING A SPECIAL ELECTION OF THE QUALIFIED ELECTORS RESIDING WITHIN THE TERRITORY OF COMMUNITY FACILITIES DISTRICT NO. 1989-1 (SYCAMORE CANYON) PURSUANT TO SECTION 53338 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA TO CONSIDER CHANGING THE TYPES OF PUBLIC FACILITIES TO BE FINANCED BY SAID DISTRICT. RESOLUTION NO. 94R-91. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALIFORNIA, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS FOR A MEASURE ON SPECIAL ELECTION TO BE HELD SEPTEMBER 9, 1994 IN COMMUNITY FACILITIES DISTRICT NO. 1989-1. RESOLUTION NO. 94R-92: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALLING A SPECIAL ELECTION OF THE QUALIFIED ELECTORS RESIDING WITHIN THE TERRITORY OF COMMUNITY FACILITIES DISTRICT NO. 1989-2 (THE HIGHLANDS) PURSUANT TO SECTION 53338 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA TO CONSIDER CHANGING THE TYPES OF PUBLIC FACILITIES TO BE FINANCED BY SAID DISTRICT. RESOLUTION NO. 94R-93: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF A/~AHEIM CALIFORNIA, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS FOR A MEASURE ON SPECIAL ELECTION TO BE HELD SEPTEMBER 9, 1994 IN COMMUNITY FACILITIES DISTRICT NO. 19~9-~. RESOLUTION NO. 94R-94: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALLING A SPECIAL ELECTION OF THE QUALIFIED ELECTROS RESIDING WITHIN THE TERRITORY OF COMMUNITY FACILITIES'DISTRICT NO. 1989-3 (THE SUMMIT) PURSUANT TO SECTION 53338 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA TO CONSIDER CHANGING THE TYPES OF PUBLIC FACILITIES TO BE FINANCED BY SAID DISTRICT. RESOLUTION NO. 94R-95: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALIFORNIA, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL 308 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 7, 1994 - 5:00 P.M. ANALYSIS FOR A MEASURE ON SPECIAL ELECTION TO BE HELD SEPTEMBER 9, 1994 IN COMMUNITY FACILITIES DISTRICT NO. 1989-3. Roll Call Vote on Resolution Nos. 94R-90 throuqh 94R-95, both inclusive, for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly None None The Mayor declared Resolution Nos. 94R-90 through 94R-95, both inclusive, duly passed and adopted. City Attorney White. The impartial analysis will indicate the transfer of funds requires a two thirds favorable vote of those persons voting in each of the districts. It is not just a majority but a two thirds vote for the actual effectiveness of the transfer. City Clerk Sohl. She announced that the date set to receive arguments in favor or against would be July 5, 1994. Anyone interested in writing arguments in favor or against should contact her at the City Clerk's office. ADJOURNMENT: By General Council Consent the meeting of June 7, 1994 was adjourned to 2:00 p.m. on June 14, 1994. (8:10 p.m.) LEONORA N. SOHL, CITY CLERK 309