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1986/09/02City ~m11, ~n~beim~ California - COUNCIL MINUTES - September 2, 1986, 10:00 A.M. The City Council of the City of Anaheim met in regular session. P~SENT: ~S~T: P~SENT: COUNCIL MEMBERS: Kaywood, Overholt, Bay, Pickler and Roth COUNCIL MEMBERS: None CITY MANAGER: William O. Talley CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl PROGRAM, DEVELOPMENT & AUDIT: Ron Rothschild HUMAN RESOURCES DIRECTOR: Garry McEae ASSISTANT DIRECTOR FOR ZONING: Anmika Santalahti CODE ENFORCEMENT SUPERVISOR: John Poole Mayor Roth called the meeting to order and welcomed those in attendance to the Council meeting. INVOCATION: Reverend David Walker, St. Mark's United Methodist Church, gave the Invocation. FLAG SALUTE: Council Member Irv Pickler led the assembly in the Pledge of Allegiance to the Flag. 119: INTRODUCTION & PRESENTATION: Tabitha Ann Faux, representing the California, Nevada Youth Lions Club, Student Exchange introduced Isobel Lousberg, a German Exchange Student visiting the United States and staying with the Faux Family. Ms. Faux had previously spent three weeks in Germany and stayed with Ms. Lousberg's family. Mayor Roth and the Council welcomed both ladies. Ms. Lausberg then presented the Mayor with two banners, one from the Host Lions Club in Vatten, Germany where her father is a member and the other a banner of the German Youth Exchange. 119: PRESENTATION - EMPLOYEE SUGGESTION AWARD: Gordon Hoyt, Public Utilities General Manager, introduced Marsha Grey, Customer Service, Utilities Department, and announced that Mrs. Grey is the recipient of an Employee Suggestion Award of $1,400 for a suggestion she submitted which will save the Utilities Department approximately $14,000 a year by making a chan~e in billing procedures. The Mayor and Council Members congratulated Mrs. Grey and expressed their appreciation for her efforts in bringing about the resultant savings, 119: PROCLAMATIONS: The following proclamations were issued by Mayor Roth and authorized by the City Council: International Literacy Day in Anaheim, September 7, 1986, PTA Month in Anaheim, September 1986. The International Literacy Day proclamation was accepted by Mary Stevens of Literacy Volunteers of America and the PTA Month proclamations were accepted by Betty Carl, President, Anaheim Elementary PTA Council, Betty Vion, 730 Cit~ Hall, Anaheim, Califor-ta - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. President, Anaheim Secondary PTA Council and Gwen Berger and Phillis Iser also of the Anaheim Secondary PTA Council. 119: RESOLUTION OF WELCOME: A Resolution of Welcome was unanimously adopted by the City Council to be presented at the American Business Women's Association Conference at the Grand Hotel, extending a sincere welcome to the Members of the Association as they convene in Anaheim. 119: RESOLUTION OF CONDOLENCE: A Resolution of Condolence was unanimously adopted by the City Council to be presented to the family of Judge Dave Bach, Jr. Judge Bach served on the bench of the Orange County Municipal Court for almost 20 years as well has having served as Orange County District Attorney and District Attorney of Imperial County. 119: RESOLUTION OF WELCOME - RATIFICATION: A Resolution of welcome was unanimously ratified by the City Council. The resolution was previously presented welcoming the 4th National Biennial Convention of Asian Indians in America held in Anaheim August 30 - September 1, 1986. MINUTES: Councilwoman Kaywood moved to approve the minutes of the regular meeting held August 12 and the adjourned regular meeting of August 15, 1986. Councilman Overholt seconded the motion. MOTION CARRIED. WAIVER OF READING - ORDINANCES AND RESOLUTIONS: Councilwoman Kaywood moved to waive the reading in full of all ordinances and resolutions of the Agenda, after reading of the title thereof by the City Clerk, and that consent to waiver is hereby given by all Council Members, unless after reading of the title, specific request is made by a Council Member for the reading of such ordinances or resolutions in regular order. Councilman Overholt seconded the motion. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $1,794,784.31, in accordance with the 1986-87 Budget, were approved. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Councilman Pickler, seconded by Councilwoman Kaywood, the following items were approved in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar; Councilman Pickler offered Resolution Nos. 86R-385 through 86R-391, both inclusive, for adoption. Refer to Resolution Book. Councilman Pickler offered Ordinance No. 4759 for first reading. 1. 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 William J. Burkhard & AIane D. Burkhard for bodily injury sustained purportedly due to actions of the City on or about April 4, 1986. 731 City Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. b. Claim submitted by William Workman for property damage sustained purportedly due to actions of the City on or about April 29, 1986. c. Claim submitted by William A. Kelley for property damage sustained purportedly due to actions of the City on or about May 29, 1986. d. Claim submitted by Peggy Miller for bodily injury sustained purportedly due to actions of the City on or about May 27, 1986. e. Claim submitted by Sheryl Cannon for property damage sustained purportedly due to actions of the City on or about June 21, 1986. f. Claim submitted by Dorothy Levinson, Barry Levinson and Joyce T. Gordon for wrongful death of Murray Levinson sustained purportedly due to actions of the City on or about June 3, 1986. g. Claim submitted by Shirley May Dixon for bodily injury sustained purportedly due to actions of the City on or about May 6, 1986. h. Claim submitted by Steve F. Munn for bodily injury sustained purportedly due to actions of the City on or about May 6, 1986. i. Claim submitted by Rebecca Warner for property damage sustained purportedly due to actions of the City on or about April 23, 1986. 2. Receiving and filing the following correspondence: (on file) a. 105: Community Redevelopment Commission, Minutes of July 30, 1986. 3. 108: Approving an application for a Public Dance Permit submitted by Jesus M. Frias, for the Empresa Frias, to hold a dance at the Anaheim Convention Center on September 6, 1986, from 6:00 p.m. to 1:00 a.m. in accordance with the recommendations of the Chief of Police. 4. 160/123: Accepting the low bid of Coleman Security Services, in the amount of $310,386.87 to provide school crossing guards for the 10 months beginning September 1, 1986, in accordance ~rith Bid No. 4349. 5, 170/123: Approving the assignment of special £ac~llt~e8 reimbursement agreement with The Prado Corporation to Municlcorp of California relating to Tract No. 12147 in Anaheim Hills. 6. 123/106: Authorizing an agreement with BSI Consultants, Incorporated, in the amount of $56,000 for consulting services to perform a Traffic Control Device Inventory; and authorizing the appropriation of a $60,000 grant from the Office of Traffic Safety into revenue account 01-3181 and expenditure account 01-263-6310. 7. 169: Authorizing the substitution of subcontractors of Steiny & Company for Moore Electrical Contracting for electrical work in connection with the construction of Anaheim Auto Center, Ball Road at Route 57, Street, Sewer and Electrical Improvements, Account No. 01-933-6325. 732 City Hall, Anaheim~ California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. 8. 150: Authorizing the City Manager, or his appointed agent to sign a statement of endorsement and agreement supporting the Orange Unified School District application for funds under the Henry J. Kaiser Family Foundation, Community Health Promotion Grant Program and authorizing staff to represent the City on the project community council. 9. 160: Authorizing the Purchasing Agent to issue a change order to J. A. Dillingham Roofing, Inc., (purchase order 37686-G), for an additional amount of $10,596 for repairing/replacing metal decking on Stadium Gate #4, canopy roof. 10. 160: Accepting the low bid of Warvi Construction, Inc., in the amount of $35,376 for wall reconstruction at the Martin Recreation Center, in accordance with Bid No. 4360. 11. 152/150: RESOLUTION NO. 86R-385: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE APPLICATION FOR BICYCLE AND/OR PEDESTRIAN FUNDS UNDER SB 821 AND APPROVING THE ADOPTION OF ITS BICYCLE AND/OR PEDESTRIAN PLAN. (Authorizing the City Manager to execute and file an application for Bicycle and/or pedestrian funds under SB 821 and adopting a bicycle and/or pedestrian plan) 12. 158: RESOLUTION NO. 86R-386: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE MAYORAND CLERK TO EXECUTE A DEED FOR ACCESS RIGHTS ALONG DURST STREET. (Authorizing the Mayor and City Clerk to execute a deed for access rights along Durst Street, as required by Variance No. 3572) 13. 153: RESOLUTION NO. 86R-387: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDINGRESOLUTION NO. 86R-123 WHICH ADOPTED THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ANAHEIM AND GENERAL TRUCK DRIVERS UNION, LOCAL 952. (Amending Resolution No. 86R-123, nunc pro tunc, which adopted the Memorandum of Understanding between the City and General Truck Drivers Union, Local 952, to correct the duration date to February 9, 1989) 14. 175/123: RESOLUTION NO. 86R-388: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA APPROVING THE FORM OF AMENDMENT NO. 4 TO THAT CERTAIN REVOLVING CI{EDIT AGREEMENT BY AND BETWEEN CITY OF ANAHEIM ~ BA/~K OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION DATED JUNE 1, 1983 (AS HERETOFORE AMENDED); AUTHORIZING EMPLOYMENT OF A FINANCIAL ADVISOR AND CO-BOND COUNSEL IN CONNECTION WITH ELECTRIC REVENUE ANTICIPATION NOTES AND WATER REVENUE ANTICIPATION NOTES; AND AUTHORIZING EMPLOYMENT OF A PLACEMENT AGENT IN CONNECTION WITH WATER REVENUE ANTICIPATION NOTES. (Approving as to form Amendment No. 4 to that certain revolving credit agreement with Bank of America National Trust and Savings Association dated June 1, 1983; and authorizing employment of Goldman Sachs as Placement Agent, James J. Lowrey as Financial Advisor and Mudge Rose GuthrieAlexander & Ferdon and Rourke & Woodruff as Co Bond Counsel in connection with the 1986 Water RANs) 175: RESOLUTION NO. 86R-389: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA AMENDING CERTAIN PROVISIONS OF RESOLUTION NO. 83R-169 OF THE CITY COUNCIL (AS HERETOFORE SUPPLEMENTED AND AMENDED). (Amending 733 City Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. Resolution No. 83R-169, relating to the issuance of Water Revenue Anticipation Notes, to provide that notes remain tax exempt) 175: RESOLUTION NO. 86R-390: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA AMENDING CERTAIN PROVISIONS OF RESOLUTION NO. 83R-168 OF THE CITY COUNCIL (AS HERETOFORE SUPPLEMENTED AND AMENDED). (Amending Resolution No. 83K-168, relating to issuance of Electric Revenue Anticipation Notes, to provide that notes remain tax exempt) 15. 158: RESOLUTION NO. 86R-391: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS CONVEYING TO THE CITY OF ANAHEIM CERTAIN REAL PROPERTIES 0R INTERESTS THEREIN. 16. 156/142: ORDINANCE NO. 4759: AN ORDINANCE OF THE CITY 0FANAHEIM RELATING TO THE CALIFORNIA BOARD OF CORRECTIONS PROGRAM. (Agreeing to adhere to the standards for selection and training established by the Board of Corrections to allow participation in the State training program) Roll Call Vote on Resolution Nos. 86R-385 through 86R-391: AYES: NOES: ABSENT: COUNCILMEMBEES: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Overholt, Bay, Pickler and Roth None None The Mayor declared Resolution Nos. 86R-385 through 86R-391, both inclusive, duly passed and adopted. End of Consent Calendar. MOTION CARRIED. 106: RESERVE APPROPRIATIONS FROM PRIOR FISCAL YEAR: Approving 512,551,197 of reserve appropriations from 1985-86 Fiscal Year into the 1986-87 Fiscal Year. Submitted was report dated August 26, 1986 from Eon Rothschild, Program Development & Audit Manager, recommending approval of the reserve appropriations from the prior Fiscal Year as listed in Schedules I, II and III attached to the report (report on file in the City Clerk's Office). Councilman Bay stated the recommendation was asking the Council to take the overages from last year's budget amounting to almost $21 millions, of which 8.3 is encumbered (already spent) and 512.5 million is unencumbered, and spread the excess across the coming year's budget to various operations. That transfer requires the Council's permission. Some of the totals being carried over are for capital improvements that were budgeted but not expended last year and he has no problem with that. His major concern is the 511.4 million called, Net Reserve Appropriation, being transferred to various departments across the City and added to those budgets. Some of the funds are restricted in their use, but what the report does not say, and something he would like to know, is how much of the transfer money is unrestricted vs. that which is restricted. He would like the Council to take a close look and find out how much of the funds are unreserved that could be put into an account to be used as "pay as you go" on the Police 2000 Project C or be set aside to make the payments since the Council has not yet determined where the revenue stream is coming from. Perhaps there should be a specifically controlled reserve 734 City Hall~ Anaheim~ California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. account that the Council could control without the monies being spent across the operating departments. He had no motions ready to offer today but he was not going vote in support of the recommendation. With those kinds of savings, he felt the worse thing the Council could do was to plow them back into the departments before looking at alternatives. City Manager William Talley reminded Councilman Bay that in June, 1986, staff recommended that the Council need not set aside a revenue source for the Police 2000 Project since there were sufficient revenues for the next two years without setting up additional revenue sources. He then reiterated the discussion which took place at the meeting of April 15, 1986 (see minutes that date - also verbatim minutes on file in the City Clerk's Office) where possible alternate revenue sources were discussed, one being a utility user tax in lieu of the 4% utility transfer fee. Because of the prudent actions of the City Council, staff's recommendation when the Council adopted the Resource Allocation Plan for 1986/87 was that there was sufficient revenue so that a specific revenue source would not have to be identified at least for the next two years. When adopting the proposed two-year budget in 1985/86, Council was advised that departments were going to be encouraged to manage their money over a 24-month period. If they did have money left over at the end of 1985/86 they could carry it forward if needed rather than spending it at the end of the Fiscal Year and there would be no penalty attached. The request today involves 512.5 million in reserve appropriations which are carry-forwards and 58.4 million which are encumbered. In the general fund, there is approximately 51.6 million and in Federal General Revenue Sharing 51.9 million for a total of over 53.5 out of the 520 million. The rest of the funds are restricted or committed. If the Council has areas they want staff to concentrate on, they could take a look as part of the ongoing budget process as adjustments in the budget. Twenty-four months of planning is the purpose. Most of the funds could have been spent in the April/May/June period. He believes it more prudent to carry-forward and only use the funds when needed. Councilwoman Kaywood stated at the time of discussion on the Certificates of Participation (COP) for the Police 2000 Project and the alternate means for paying for it were brought forth, she does not recall a single Council Member saying they liked it or agreed with the 3% utility tax or fee. She wanted that clear and, if necessary, requested a verbatim of the discussion that date (April 13, 1986). Councilman Bay stated it was obvious that Members of the Council were approving in concept the new fee. The verbatim was already available as public information. (Councilwoman Kaywood requested a copy). He also agreed that enough funds could be found to make the low payments on the Police 2000 Project loan through 1990 but was concerned about the 53 million a year needed to make payments after that time across the total maturity of that loan in 2008 or 2009 averaging roughly 52.2 million a year. The revenue stream to make those 53 million payments had not yet been identified. Those payments, and how they were going to be paid back, should be fully and openly discussed. Additional discussion followed between Council and staff wherein City Manager Talley stated there was not a program that the Council has not approved that 735 City Hall~ Anahefm~ California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. was bein~ carried forward. He also confirmed for Councilman Bay that they were carry-overs for programs Council had approved, they were not over and above the original budget, and there were no salaries involved. Councilman Bay reiterated he was not concermed about carry-overs for capital projects and infrastructure, but was with a carte blanche transfer of all the other monies being put into the departments on only a one-paragraph description. He has always expressed his concern relative to financing with Certificates of Participation and the way the Council borrows money to do things in the City without a vote of the people. Councilman Overholt repeated his question asked earlier in the discussion, if the recommended action was part and parcel of the function of having a 24-month budget; Mr. Talley answered, yes. Eon Rothschild, responding to Councilman Pickler, stated that Administration viewed this as being part and parcel of the two-year budget process. The appropriations were approved by the Council as part of the 1985 through 1987 Fiscal Year's budget. The recommendation was necessary at this time since the Charter calls for the Council to appropriate in a single year. Councilman Bay, in concluding, stated first that he was not opposed to keeping the City's Police Department up to the state of the art and there was no debate by him over the Police 2000 Project. His argument has always been the financing and the way the City borrows money to do things without a vote of the people. He felt there are also ways to make payments without new taxes. If the Council did not pay more attention to the way money was budgeted, allocated and spent in the City, eventually taxes would have to be raised to make payments on the billions of dollars of loans and that was the issue. MOTION: Councilman Overholt moved to approve $12,551,197 of reserve appropriations from 1985-86 Fiscal Year into the 1986-87 Fiscal Year, as recommended in memorandum dated August 26, 1986 from the Program Development & Audit Manager. Councilman Pickler seconded the motion. The motion carried by the following vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL HEMBEXS; COUNCIL MEMBE~S; Kaywood, Overholt, Pickler and Roth Bay None 134: GENERAL PLAN AMENDMENT NO. 218 - DATE AND TIME FOR A PUBLIC HEARING: Councilman Pickler moved to set the date and time for public hearing on GPA No. 218, as Tuesday, September 23, 1986 at 1:30 p.m. to consider the following: An amendment to the Land Use Element of the General Plan proposing a redesignation from the low density residential and low-medium density residential to a medium density residential designation on property located at 2900-2920 East Lincoln Avenue; and to hold a public hearing on Reclassification No. 86-87-3 (READV.), for a change in zone from RS-A-43,000 to RM-1200, and Variance No. 3588 (READV.), to construct a 220-unit, 2-story apartment complex, with Code waivers of maximum structural height and minimum structural setback and yard requirement in conjunction with GPA No. 218. Councilman Overholt seconded the motion. MOTION CARRIED. 736 City Hall, Anaheim~ California - COUNCIL MINUTES - September 2, 1986, 10:00 A.M. 105: YOUTH COMMISSION - ACCEPTING A RESIGNATIONANDAPPOINTINGALTERNATES: Councilwoman Kaywood moved to accept the resignation of Susan Kerr from the Youth Commission with regret. Councilman Pickler seconded the motion. MOTION Councilwoman Kaywood requested that a letter of thanks be sent to Ms. Kerr. Councilwoman Kaywood moved to appoint Leslie Freeland as one of the three alternates to the Youth Commission. Councilman Bay seconded the motion. MOTION CARRIED. Councilwoman Kaywood moved to appoint Joan Chang as an additional alternate, Alternate No. 3, from the current list of candidates. Councilman Pickier seconded the motion. MOTION CARRIED. Councilwoman Kaywood then noted that of the three remaining on the current list, Mario Kashou had moved and left Anaheim, Marie Gibbs had graduated from Anaheim High School and Sharon Quan now attends Lutheran High School in Orange and as discussed previously, the student needed to be attending an Anaheim school. Therefore, there were no candidates pending to be appointed to the Youth Commission should a vacancy occur. 170: TENTATIVE TRACT FROM THE PLANNING COMMISSION MEETING OF AUGUST 18, 1986 - TENTATIVE TRACT NO. 10974: Submitted by VTN Consultants, Inc., for an extension of time to Tentative Tract No. 10974, to create a 23-1ot, RM-3000(SC) zoned subdivision on the south side of Camino Grande, southeasterly of the centerline of Peridot Place. The City Planning Commission approved Tentative Tract No. 10974 to expire August 22, 1987. Submitted for informational purposes only. No action taken by Council. 171/142: ORDINANCE NO. 4756: Councilman Pickler offered Ordinance No. 4756 for adoption. Refer to Ordinance Book. ORDINANCE NO. 4756: AN ORDINANCE OF THE CITY OF ANAHEIM FIXING AND LEVYING A PROPERTY TAX ON FULL CASH VALUE OF ALL PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY 0FANAHEIM FOR THE FISCAL YEAR 1986/87. Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 0verholt, Bay, Pickler and Roth The Mayor declared Ordinance No. 4756 duly passed and adopted. 179: ORDINANCE NOS. 4757 AND 4758: Councilwoman Kaywood offered Ordinance Nos. 4757 and 4758. Refer to Ordinance Book. ORDINANCE NO. 4757: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP REFERRED TO IN TITLE 18 OF THEANAHEIMMUNICIPAL CODE RELATING TO ZONING. 737 CitH Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. (Amending Title 18, Reclass. 73-74-28, RS-HS-22,000(SC), southeasterly Serrano Avenue and Hidden Canyon Road) ORDINANCE NO. 4758: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (Ameuding Title 18, Reclass 84-85-28, CO(SC), northeast corner of Santa Aha Canyon Road and Plnney Drive) Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, NOES: COUNCILMEMBERS: None ABSENT: COUNCIL MEMBERS: None Overholt, Bay, Pickler and Roth The Mayor declared Ordinance Nos. 4757 and 4758 duly passed and adopted. 179/142: ORDINANCE NO. 4760: Adding new Subsection .135 to Section 18.61.050 of the Code, to include retail and wholesale carpet and/or petroleum based flooring businesses in the ML zone. City Attorney Jack White explained for Councilman Bay that the ordinance was drafted in a way that would add the subject uses as conditional uses only in the portions of the ML Zone that were not in the Canyon Industrial area by adding the new subsection. Councilman Pickler offered Ordinance No. 4760 for first reading. ORDINANCE NO. 4760: AN ORDINANCE OF THE CITY OF ANAHEIM ADDING NEW SUBSECTION .135 TO SECTION 18.61.050 OF CHAPTER 18.61 OF TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. 173: INTER-COUNTY AIRPORT AUTHORITY - APPROVING PARTICIPATION OF THE CITY OF IRVINE: Councilman Pickler offered Resolution No. 86R-392 for adoption, approving the participation of the City of Irvine as a member of the Inter-CountyAirport Authority. Refer to Resolution Book. RESOLUTION NO. 86R-392: A ILESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE PARTICIPATION OF THE CITY OF IRVINE AS A MEMBER OF THE INTEK-GOUNTY AIKPORT AUTHOtLITY. Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Overholt, Bay, NOES: COUNCILMEMBERS: None ABSENT: COUNCIL MEMBERS: None Pickler and Roth The Mayor declared Resolution No. 86R-392 duly passed and adopted. 114: PLANE CRASH OVER CITY OF CERRITOS - SUNDAY~ AUGUST 31~ 1986: Council Members expressed their deep sympathy to those many people who were affected by the tragic plane crash which took place over the City of Cerritos involving the collision of a private Piper aircraft and an Aeromexico DC-9 approaching 738 City Hall, Anaheim~ California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. Los Angeles International Airport from Mexico. Mayor Roth and his wife, having been in the immediate area, witnessed the crash seconds after it occurred and were deeply shaken by what they saw. He added his prayers as well as those of the Council for the families of the victims. RECESS - CLOSED SESSION: Mayor Roth announced that a Closed Session would be held to confer with the City Attorney regarding: a. Pending litigation pursuant to Government Code Section 54956.9(a), to wit: Golden West Baseball Co. vs. City of Anaheim, Orange County Superior Court Case No 40-92-46. b. Potential litigation pursuant to Government Code Section 54956.9 (b) (1). c. Personnel matters pursuant to Government Code Section 54957. Councilman Roth moved to recess into Closed Session and a lunch break. Councilwoman Kaywood seconded the motion. MOTION CARRIED. (11:12 a.m.) AFTER EECESS: The Mayor called the meeting to order, all Council Members being present with the exception of Councilwoman Kaywood. (1:47 p.m.) 153: SETTLEMENT AGREEMENT - DAVID HAMMOCK: Human Resources Director, Garry McRae, briefed his memorandum dated September 2, 1986, recommending approval of the Arbitrator's Award in the case of David Hammock. Councilman Pickler moved to approve the settlement agreement with David Hammock in the amount of 55,641.84 as recommended in memorandum dated September 2, 1986 from the Human Resources Director. Councilman Overholt seconded the motion. Councilwoman Kaywood was absent. MOTION CARRIED. 153: SETTLEMENT AGREEMENT - DAVID A. BERGMAN: Human Resources Director, Garry McRae, briefed his memorandum dated September 2, 1986, recommending a settlement agreement with David A. Bergman. Councilman Pickler moved to approve a settlement agreement with David A. Bet§man in the estimated strai§ht time amount of $8,791.00 as recommended in memorandum dated September 2~ 1986 from the Human Resources Director. Councilman Overholt seconded the motion. Councilwoman Kaywood was absent. MOTION CARRIED. 152/153: GRANTING AUTHORITY TO THE CITY MANAGER AND CITY ATTORNEY TO SETTLE WAGE CLAIMS: Human Resources Director, Garry McRae, briefed his memorandum dated September 2, 1986, recommending that the Council grant Joint Authority to the City Manager and the City Attorney to allow, compromise, or settle wage claims resulting from employee grievance up to 510,000.00. Councilman Pickler offered Resolution No. 86R-393 for adoption, as recommended in memorandum dated September 2, 1986 from the Human Resources Director. Refer to Resolution Book. 739 City Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. RESOLUTION NO. 86R-393: ARESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING JOINT AUTHORITY TO THE CITY MANAGER AND CITY ATTORNEY TO ALLOW, COMPROMISE, OR SETTLE WAGE CLAIMS OF EMPLOYEES UP TO $10,000.00. Roll Call Vote: AYES; NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Overholt, Bay, Pickler and Roth None Kaywood The Mayor declared Resolution No. 86R-393 duly passed and adopted. Councilwoman Kaywood entered the Council Chamber. (1:49 p.m.) 179: PUBLIC HEARINGS - CONDITIONAL USE PERMIT NO. 1703AND CONDITIONAL USE PERMIT NO. 2525: CONDITIONAL USE PERMIT NO. 1703: To consider modification or termination of Conditional Use Permit No. 1703, to permit a resource recovery and recycling operation on ML zoned property located on 6.4 acres at the southeast corner of Frontera Street and Newkirk Road, with Code waivers of minimum front setback and required block wall. CONDITIONAL USE PERMIT NO. 2525: To consider modification or termination of Conditional Use Permit No. 2525, to expand a resource recovery and recycling operation including an automobile dismantling business with wholesale and retail sales of auto parts on ML zoned property located at 3200 Frontera Street. EIR FINDING: A negative declaration status was previously approved on both Conditional Use Permit No. 1703 and Conditional Use Permit No. 2525. HEARING SET ON: An order to show cause hearing as to why Conditional Use Permit Nos. 1703 and 2525 should not be revoked was moved by Councilman Pickler at the meeting of July 15, 1986 and passed unanimously by the Council setting today as the date and time for such hearing. PUBLIG NOTIGEKEQUIEEMENT$ MET BY: Publication in Anaheim Bulletin August 8~ 1986. Posting of property August 8, 1986. Mailing to property owners within 300 feet - August 8, 1986. Special notice was also mailed to the principals via Certified Mail Returned Receipt Requested on July 29, 1986. PLANNING STAFF REPORT: Submitted was report dated August 12, 1986 from Annika Santalahti, Assistant Director for Zoning, recommending termination of Conditional Use Permit Nos. 1703 and 2525 pursuant to provisions of the Anaheim Municipal Section 18.03.092. 740 Cit7 Hall~ Anaheim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. The public hearing on Conditional Use Permit Nos. 1703 and 2525 was continued from the meeting of August 19, 1986 (see minutes that date), to this date. John Poole, Code Enforcement Supervisor, announced that representatives were present from the State Department of Health Services, Water Quality Control Board and the Environmental ProtectionAgency. Floyd Farano, attorney, Farano & Kieviet, representing Orange County Steel Salvage (0CSS). Some results of the testing done by his client's private analysis of the shredder waste material were now available. Twenty-three samples were taken - half sent to the State Department of Health to analyze and half to 0CSS Private Laboratory. The results of the private laboratory tests showed that PCB's were present in excess of 50 parts per million (ppm.) as provided by law. It appears that the content is about 100 ppm. Results of the State analysis are not complete and not officially released but in talking to the Department of Health Representatives, the State's results closely concur with the results obtained by the private laboratory. Mr. Adams is present today to submit a solution to the Council as discussed at the last meeting if PCB's were higher than the acceptable level. In the interim, Mr. Adams has traveled extensively to confer with various agencies to determine what could be done to solve the problem. George Adams, Jr., Orange County Steel Salvage. He briefed the Council on the meetings he had with various representatives of the State Department of Health Services, the State Water Quality Board and the Environmental Protection Agency (EPA) which took place in Sacramento, San Francisco and Washington, D.C. Relative to the EPA's position, that A~ency feels that the problem concerning the PCB's in the shredder waste is one of national significance. They do not want to see car bodies and appliances regulated as hazardous wastes. It is necessary to resolve where the PCB's are coming from. The last thing they want to see is the shredder industry shut down and the problems such action would ultimately cause. Mr. Adams then confirmed upon questioning that the tests done show less PCB's in the auto body waste than in appliances. The PCB's have not been found in other companies shredder waste at the levels of OCSS. It is necessary to determine where the PCB's are coming from. His company does not do anything different from other companies and everything possible is being done to remove any hazardous material. Once testing methodology is standardized, levels will be the same with all companies. Seven samples were taken strictly from auto bodies only and the PCB level was not acceptable. The following representatives spoke on behalf of their agencies: 741 City Ha!l, Anaheim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. Mr. Angelo Bellomo, Chief, Southern California Section, State of California, Department of Health Services (DOHS) Toxic Substances Control Division, 107 South Broadway, Room 7128, Los Angeles, Ca. 90012. Regarding the Department's position, with him today are members of his staff in Los Angeles as well as Dr. David Leu, representatives from the EPA and the Regional Water Quality Board. The lead agency is the State Department of Health Services. He will take full responsibility that the Agencies are moving in the same direction. He has had recent discussions with OCSS and the problem is not hopeless. There is a solution with the future generation of waste at the site. The Department has laid out some of the requirements for their continued operation from their perspective and that of the EPA. The technology the Department has implemented along with a generator of shredder waste in Los Angeles is that that same technology, which now renders the newly generated waste at that facility non-hazardous, can be applied in this case. It does not say anything for the huge mountain of hazardous waste stockpiled on the site. He wants to distinguish between that very serious problem and the continued operation of the facility. He is encouraged that they have not given up on OCSS regarding the operator's ability to play a constructive role in the process. The Department wants to exhaust all opportunities before inheriting a problem. They have explained to OCSS some of the conditions under which they would be allowed to operate. Any agreements made with OCSS will not be merely a gentlemen's agreement but consent agreements issued by the Court and enforced by the Court. Mayor Roth questioned Mr. Bellomo on where the Department had been for the last six months while the Council had been put in a position of battling the problem themselves. He asked what the DOHS was going to do about the problem and the existing fluff since his was the lead agency. Mr. Bellomo. The existing shredder waste pile is not unlike other was:e piles in the State and nation. EPA is extremely concerned about the findings which they do not believe are unlike findings across the country. He does not have a ready solution relative to the existing pile. It is on their current list and money has been set aside so that in the event the operator does not do what has to be done, public funds can be expended. With regard to the ongoing operation, he has purposely distinguished between that and the existing shredder pile. He clarified for the Mayor that the storage of toxic materials over 90 days is illegal without a permit issued by the DOHS. OCSS has not been issued a permit nor are they subject to a variance 742 City Hall, Anaheim~ California - COUNCIL HINUTES - September 2~ 1986, 10:00 A.M. and, therefore, are operating illegally. That was the subject of the referral previously to the prosecutorial agency. He also confirmed for Councilman Pickler that public funds will be spent if the party involved does not expend the funds. Councilwoman Kaywood. She expressed her concern with having to shut down a recycling facility, an operation which is so needed. She wanted to know the process involved in detoxifying the waste and also how quickly the pile could be removed and where it would go if funds were used to remove it. Mr. Bellomo. Dr. Leu will address the first question. Relative to the latter, the procedures set out in a Bond Act that was issued about a year ago by the State Legislature allocated 3200 million to fund remedial action on sites across the State. He then explained the provisions of the act. What they are really talking about doing is directing OCSS to do a study that will assess the best method for dealing with the mountain of waste - do they burn it onsite, or remove it to a more remote location in Orange County, or elsewhere or simply go in and move it to another dump site. OCSS has the option of conducting that study and implementing the final solution at their expense. If not, that is when the tax funds enter into the picture. Relative to burning the material, they have never issued a permit in California to burn auto fluff and it may be very difficult to obtain a permit to do so in the basin but it is an option. The State has no intent to pre-empt the City. The City will play a major role in deciding the options. Answering further questions posed by the Council, Mr. Bellomo explained a process that had been implemented at Hugo New Proler (HNP) in Los Angeles which rendered their waste non-hazardous. There was no reason why the same process could not be applied to OCSS with the same result. HNP voluntarily ceased operations until they were able to generate non-hazardous waste destined for the BKKdump site. That site can no longer accept hazardous waste but it is accepting the waste from HNP. The process involves a chemical bonding procedure where chemicals are sprayed on the fluff when it is generated and ties up the lead in the fluff. Dr. David Leu Ph.D, Chief, State Department of Health Services Toxic Substances Control Division, Alternate Technology and Police Development Section, 3151 I Street, Sacramento, Ca. 95814. In the last two years, the Development Section has been working with the industry in trying to best characterize the waste, identify the concerns and then to identify viable treatment systems that can render the waste non-hazardous, primarily focusing on two areas of concern, inorganics or heavy metals and 743 City Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. organics, primarily PCB's. It is not a fixation process but an actual chemical bonding process. He then explained a waste extract test which was developed and a process called the trezack process. It does not work on the PCB's so the subject fluff would not be rendered non-hazardous if treated with the process. It works on heavy metals. If OCSS was allowed to operate with the trezack process, the company would have to institute preshredding management techniques similar to that of HNP. In answer to questions, he reported that the new fluff would then be able to be dumped in BKK as long as the treatment was instituted. Periodic samples will have to be taken of the waste. There is no method at this time to do something with autoshredder fluff that already contains PCB's. The concern is over what is generating the PCB's into the waste. It could be brake fluids or hydraulic fluid and prior to 1977, transmission fluids. It is necessary to, (1) identify the sources of the material being shredded at OCSS, (2) analyze it for potential sources of PCB and, (3) isolate and remove the potential sources before cars and materials are shredded (pre-shredding management). One of the reasons why Mr. Adams has such high PCB's, he has told his clients to removes seats from cars. Although it is not expected that these contained PCB's, if shredded along with the cars would create a great amount of fluff added to the volume. Since they are instead removed, this increases the PCB's. He emphasized, however, that dilution is not the solution to pollution. Mr. Richard Vaille P.E. Chief, Pesticide and Toxics Branch, United States Environmental Protection Agency (EPA), 215 Fremont Street, San Fransisco, Ca. 94105. EPA first became involved in early spring when it came to their attention that there were PCB's present in the steel shredder waste. Preliminary samples seemed to indicate that some shredders were above the acceptable level of 50 p.p.m, and some below. It was never contemplated that steel shredders would generate large amounts of low concentration PCB contaminated waste. EPA is going to implement an evaluation of the PCB contamination in steel shredder waste and determine if there is a need for further rule making. They do not know if it is an industry-wide problem or just particular to Mr. Adams' operation. They would be amenable to an agreement with Mr. Adams or any other business if certain conditions were met such as financial assurances that regardless of the outcome of any future rule making, waste would be disposed of in accordance with Law. EPA would require a bond that would cover the financial costs involved. If waste is stored onsite - temporarily, it would need to be contained adequately and the situation monitored. Any future waste generated would have to utilize the best available technology to reduce it to below 50 ppm. He felt that the present waste on the site could be dumped in Kettleman, a Class I landfill. Relative to the financial assurances that the waste would be disposed of, he is 744 City ~]~ A~beim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. referring to any waste that would come under PCB disposal regulations. The storage of the waste on the OCSS site at present is inadequate and in violation of storage regulation. There is no way that site could come into compliance with the storage regulations; however, with a settlement agreement, they could issue special criteria for the site which would ensure that environmental and health concerns were met. Mr. Robert Holub, P.E., Senior WRC Engineer, State of California, California Regional Water Quality Board, Santa Aha Region No. 9, 6809 Indiana Avenue, Suite 200, Riverside, Ca. 92506. There were two issues where his office has been involved at OCSS. Their concern is whether the existing temporary storage of the auto shredder waste is presenting a threat to ground water. Because of that concern, they requested Mr. Adams to conduct a site investigation at his facility which he did. Results of that investigation are in and have temporarily assured the Water Quality Board that there are no immediate threats to ground water at the site. PCB's and lead were indicated in the surface and top couple of feet, but below 5 feet nothing was found in the borings that have been taken. For the time being at this site, no immediate threat to ground water appears to be evident. The other aspect is the disposal of non-hazardous auto shredder waste. They are currently having discussions with all three counties under their jurisdiction trying to work out conditions upon which these counties (Orange, San Bernardino and Riverside) can accept non-hazardous auto shredder wastes at selected landfills within their Jurisdiction. Councilman Bay then asked what happened to the PCB testing being done by the State at the University of California in Berkeley for the past three weeks. The Council was expecting that the test results of the 23 samples taken would be available at this meeting. Mr. James McNally, M.P.H. Program Manager, Southern California Section, State of California, Department of Health Services, Toxic §ubstanees Control Dtvi~ion, 107 South Broadway, Rm. 7011, Los Angeles, Ca. 90012. Approximately three weeks ago, 23 samples were taken at their shredder waste pile and 10 of the samples have come back from testing, all of them being well in excess of the regulatory standard of 50 ppm. They averaged approximately 98 ppm. They have actually done 30 analysis taking each sample and splitting it into three units in an attempt to determine what fraction of waste contains the PCB's. It is being done in the Hazardous Materials Laboratory in Berkeley under the direction of Dr. Robert Stevens. Based upon what they have seen so far, there is no trend. There seems to be a trend towards equal PCB concentration throughout the fractions. Conversations with the Laboratory on Friday indicate they should have a complete sample 745 CitH Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. analysis sometime next week at the latest. The tests Mr. Adams conducted are not the same as the State. Mayor Roth then opened the hearing for public input on the issue, that of considering modifications of conditions or termination of Conditional Use Permit Nos. 1703 and 2525. PUBLIC INPUT: Hyman Budnick, Scrap Metal Dealer. His business is ferrous and non-ferrous metals. It is all clean and new material. If OCSS conditional use permits are revoked, it will put hiTM and others like him out of business from the standpoint of price if they have to haul their material to the harbor or Los Angeles to be processed. At least 200 families will be affected. Action should be delayed and efforts made to resolve the matter. Lewis Freedman. It is better to have the waste in one spot than spread all over the countryside which will occur if the business is closed. Ed Sirotnak. He has been working for other people for ten years and Just this year started hauling for himself. He is concerned over what he is going to do if OCSS is shut down. It will put everybody out of business. Ail the agencies are trying to work with Mr. Adams. The City should work with him also and go the extra one-half mile. They will not be able to get rid of junk cars. Mayor Roth interjected and reiterated the great deal of time and effort expended by the City for two years in working with the problem. Today Mr. Adams conceded that the material is toxic and yet the pile is continuing to build. Solutions now had to come from the lead agency. Carl Van Couvering. He is associated with the towing business. He is personally trying to do something about the end result of the PCB pile. He has driven through the center of California, has seen the storage of cotton and other things utilizing large covers, piles larger than on the subject site. The immediate problem is the percolation into the ground water. He suggested that the pile be covered with plastics or other materials so that water does not get into it. Jim Stratton, All-4 Auto Wrecking. He is in favor of continuing the shredding operation. If disposing of such waste material in landfills has been going on for years, adding the waste at OCSS would not be a significant increase. He understands a large part of the problem is lead oxides. He also understands there are large amounts of lead oxides in the material along the freeways from cars. It is 745 City Hall~ Anaheim~ California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. short-sighted to shut OCSS down and not think about the thousands of tons of toxins that are on the street. Rob Dougharty. If the City shuts OCSS down, he questioned if it would make the other agencies act faster in moving the pile. If they did not move it, who would do so. Councilman Bay suggested that Mr. Adams again be heard at this time since he indicated he was going to provide a resolution to the problem. If other people still wanted to speak, they could do so after the solution is offered. George Adams, Jr. The shredder waste pile is not posing a threat to the citizens of Anaheim unless it catches fire or percolates into the ground water. There has been no leaching into the ground. They have done everything possible to mitigate the possibility of a fire. The pile is not flammable as long as it is wet. He then gave his input and comments on the testimony given by representatives of the various agencies. In concluding, Mr. Adams stated whatever it takes to implement a solution, he was going to do it and whatever it takes to copy the Hugo New Proler System to render the waste non-hazardous, he would do that. He will do whatever necessary after this hearing to solve the problem. He then answered questions posed by Councilman Bay wherein he confirmed that there were some changes of rules coming from the EPA in Washington and that there were only two solutions relative to the existing pile of shredder waste, i.e., land disposal or incineration. They have applied to do a test burn up of the material using a process developed by Surlite and are expecting answer from Air Quality on September 9, 1986. The test burn utilizing the new system which supposedly will meet Air Quality standards will be done in September as long as Air Quality approves. Relative to land disposal of the material, the only area close by is the Salton Sea in Imperial County. The Director of the Water Quality Board there stated he would allow the material to go into the local landfills. However, the local landfills are under the Jurisdiction of the public agencies. If OCSS buys their own landfill in Imperial County, it would take years to put together. If it is a feasible alternative, they could transport the material and store it above ground until they obtain the proper permits to buy the land fill. Within the next three to six months there will be a solution and a position on the waste is going to be determined. The pile might remain a little longer but there was no other way to go around it. It is better where it is than elsewhere. Shutting him down today was not going to get rid of the pile and it will put a tremendous amount of people out of business including OCSS. 747 City Hall, Anahetm~ California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. Councilman Pickler. He asked Mr. Adams if he will stop shredding at his facility until he gets all the papers signed and has everything on line relative to the new process of treating the waste to render it non-hazardous. At that time, he could start shredding again. He does not want Mr. Adams to shred another piece of material until he can see some proof by signed documents that he is going to follow all the rules and regulations and prove that he is in conformance with all the requirements of the various agencies. He has not changed his mind relative to his position on revoking the permits. He is concerned with the two things Mr. Adams mentioned, the possibility of a fire and percolation of toxins into the soil. If he (Adams) could not guarantee that he will not shred until everything is in place, he will not vote to keep the business in operation. George Adams, Jr. The problem in shutting down the shredder will make it impossible for him to make payments on the land which costs $3.4 million. What the agencies were talking about today, if OCSS does not cooperate and perform, their problems will be worse than just revoking the use permits. They will be criminal problems. Relative to the new process which has only been approved by the Water Quality Board in the last week to ten days, they will start implementing that process tomorrow. Councilwoman Kaywood. As much as she is committed to recycling, there is a problem with Mr. Adams and the lack of cooperation on his part regarding violations going back to 1977 such as landscaping that was never installed, tree planting, the crane and other issues. It was necessary to see some effort on Mr. Adams' part living up to the conditions of approval that were established at the outset. COUNCIL ACTION: Mayor Roth closed the public hearing. Mayor Roth then expressed and reiterated his concerns and frustrations over the shredder waste problem and the many efforts he had made over the months writing letters to the various agencies and legislators alerting them to the problem. Nothing has been resolved and the shredder waste pile continues to grow. Mr. Adams' intentions are good but there are too many contingencies as far as he is concerned and too many things have to be done for him to feel safe relative to the situation. Mr. Adams does not want to stop shredding. He feels that if they give Mr. Adams more time, it was going to result in a repetition of the same type of hearing being conducted today with the same actors and the same charades. They are going nowhere and it was time to act. 748 City Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. George Adams, Jr. He was not asking the Council to let him continue to generate waste and the State was not going to allow him to do so. They are going to take the new material being generated, it will go into a separate area to be treated so that it can be disposed of. The conditions and agreements he is entering into with the Health Department is that the waste they generate is going to be removed. According to Mr. Bellomo, it will take a month or six weeks to install the new process. If the Health Department said they are going to enter into Court orders and they are taking over Jurisdiction of the problem, then the Council should turn it over to the Health Department and allow them to take over. The Council's responsibility is to its citizens and as long as there is no danger, the Council has done its Job. Mr. Farano interjected to answer for Mr. Adams; Councilman Overholt repeated his question asking if his client would be willing to stop shredding today to give him an opportunity to satisfy the requirements of health services and, if successful, he could start shredding again. Mr. Farano stated what he thought Mr. Adams would tender as a solution is a method and means by which the new shredder waste can be segregated from the existing shredder waste, install the new system and treat the waste accordingly. It would not involve shutting down the shredder and it satisfies Mr. Bellomo's concern that the new shredder waste be segregated and treated; Councilman Overholt surmised that the answer is no, Mr. Adams would not shut down and stay shut down until the system is installed to satisfy the Health Department. Angelo Bellomo. He is not prepared to offer a proposal. The facility is currently operating in violation. It is generating hazardous waste and storing without permission. In order for him to compel the facility to no longer generate the waste, he is going to have to go into Court to enforce a provision. They are hopeful they can explain their position to OCSS and get them interested in consenting to an order they would have issued by the Court. The position is, no new generation of hazardous waste that will add to the existing waste pile. They would first have to get on a constructive track to implement the new technology that would render the waste non-hazardous. On a parallel track, any future generation of waste starting tomorrow or when he can enforce the issue through the Courts, or a voluntary agreement issued by the Courts that they would haul away the waste as it is generated. It could go to any one of a number of facilities used by prime auto shredders, out of State or Kettleman Hills in Kern County or as another option arrangements to segregate the material from the existing waste pile, store it for short periods of time enough to get the waste pile arranged for disposal. They want the problem that has been 749 City Hall, Anaheim, California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. generated at the facility to stop. They believe OCSS can come to an agreement and can comply. He does not know if the amount of waste existing on site is going to have to be hauled away or processed on site. It contains PCB so the new technology cannot be used to render it non-hazardous. However, they do believe there is an answer to the newly-generated waste. Additional extensive discussion and questioning of Mr. Bellomo, Dr. Leu, Rob Holub, staff and Mr. Adams by Council Members followed. Mr. Bellomo stated he would be willing to keep the Council apprised of the success in dealing with OCSS. Only time will tell if they could come to an agreement and comply with an order eventually issued by the Court. He does not know how long it will take nor the prospects of succeeding; City Attorney Jack White clarified if the Council acted to modify the conditions of the Conditional Use Permits today, those would be effective immediately subject to the right of application for rehearing; Dr. Leu explained that the expenditure for capital procurement of the two pieces of equipment that would be necessary to treat the newly generated waste would be approximately $50,000 to $60,000 consisting of a mining shaker and an automatic line feeder. Treatment costs are approximately $7.50 to $10.00 a ton. If Mr. Adams was motivated, it would take approximately two months to get the trezack process; Robert Holub reported that late last year the Water Board took a formal action and designated three land fills in the region they felt could accept non-hazardous auto shredder waste, Coyote Canyon Land Fill in Orange County and one in San Bernardino and Riverside County. Technically the Coyote Landfill has been designated to accept the waste. However, the condition is that the waste is still defined as hazardous and certain controls would need to be implemented at the landfill before the shredder waste could be accepted. The needed controls are presently under discussion. RECESS: By general consent, the Council recessed for five minutes. (4:47 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (4:58 p.m.) City Attorney Jack White, then explained for Councilman Pickler the process involved should the Council terminate the CUPts notin~ that the decision of denial is not final until the applicant has been given the right to exhaust all of his administrative remedies, one of which is the right to request a rehearing. Revocations would not be final and he would not be in a position to go into Court to enforce those until after the time for rehearings had expired which would be approximately three weeks. However, modifications of the CUP's would be effective immediately with the same time frame as far as requesting rehearings. The Council could not build into the action today an automatic revocation if the applicant did not comply with any modified conditions but would necessitate a new Order to Show Cause Hearing. 750 Cit~ Hall~ An~heim~ California - COUNCIL MINUTES - September 2~ 1986~ 10:00 A.M. Mr. Adams then confirmed for Councilwoman Kaywood that if he had to remove all new waste generated until the new process is implemented that is what he would do. Councilman Pickler offered a resolution, terminating Conditional Use Permit No. 1703, finding that the use for which the approval was granted has been so exercised as to be detrimental to the public health and safety and constitutes a public nuisance and that the permit has been exercised contrary to the conditions of approval and in violation of applicable statutes, ordinances, laws or regulations. Before any action was taken, Councilman Pickler stated his reasons for wanting to terminate the Conditional Use Permit. A couple of months ago he had asked Mr. Adams if he would stop shredding and he would not do so. The various agencies explained a process that could remedy the situation and render newly generated waste non-hazardous with the concurrence of the operator. He feels that shredding should be stopped in the interim. It is and it has been a problem which has to be eliminated. Councilman Overholt. He going to vote against the proposed resolution. There are two problems, the existing pile and the problem of working something out so that OCSS can run a clean operation. Mr. Bellomo indicated with the new system something can be worked out so they will have a clean operation. If the CUP is revoked right now he believes OCSS will utilize the entire period to apply for a rehearing and operate for another month. They will not be motivated to worry about the existing pile or cooperating with the Health Department if they are going to have to shut down in 30 days with a Court order the City is going to obtain. On the other hand, Mr. Adams stated he is willing to subject himself to a condition that starting tomorrow, any new fluff generated will be hauled away to the dump which will accept it which is an expensive process. With that type of condition, he feels there is an opportunity for solving not only the ongoing production problem but also the opportunity of attacking the big pile problem. The City will als0 monitor the situation very closely and if Mr. Adams is not cooperating, then he will be in favor of Councilman Pickler's proposed resolution. Councilwoman Kaywood. With the stringent conditions in place and Mr. Adams realizing there is no longer any place to play games if he wants to remain in business, he has to be cooperating with the agencies for his own benefit to get the new process in place so that he can be running a clean operation. It is to the City's interest also to have him continue the shredding if he is going to be trucking it away immediately and not starting a new pile so there is not a build up of abandoned vehicles that will be cluttering up the City. She, too, is going to oppose the resolution at this time. 751 Cit~ Hall~ Anaheim, California - COUNCIL MINUTES - September 2, 1986~ 10:00 A.M. A vote was then taken on the proposed resolution, terminating Conditional Use Permit No. 1703 and failed to carry by the following vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: Pickler and Roth COUNCIL MEMBERS: Kaywood, Overholt and Bay COUNCIL MEMBERS: None Mayor Roth stated he voted for the resolution because during this lengthy hearing, he has heard many "ifsn. He predicts that they will be back in a month or six weeks revoking the conditional use permits. Councilman Bay. Mr. Adams also talked about some other possibilities of getting rid of the shredder waste pile already on the premises whether by EPA change of rules, land disposal in Imperial County or a new gasfire incineration. Putting 0CSS out of business will stop those actions while not eliminating the problems. He sees a great deal of cooperation and many high level people working with the situation. He thanked all those representatives for being present today. There should be stronger conditions placed on the CUP's - no new hazardous fluff will be produced and left on the site, any new shredder waste will have to be hauled off the site and the trucking off of some of the existing pile. He asked Mr. Adams if it was economically feasible for him to get rid of any new fluff generated as he continues his operation. Mr. Adams conceded it would be costly, about $3,000 per truck load of 20 tons. If he is shut dow-a, he would have no chance to do anything. If there is a way to do it hew ill do it. Councilman Pickler wanted to know how they could ensure that no additional waste was added to the existing pile; John Poole, Code Enforcement Supervisor, explained staff would have to designate what the pile consists of tomorrow and then take aerial photographs with onsite inspections in the next 30 to 60 days and meeting with OCSS to determine where the new pile is to be placed and how it will be removed. Councilman Bay offered Resolution No. 86R-394 for adoption, modifying the conditions of Conditional Use Permit No. 1703 by adding the following: (1) Ail fluff (shredder waste) generated starting Wednesday, September 3, 1986 will be removed from the premises daily. (2) The operator, Orange County Steel Salvage (OCSS), shall submit evidence and submit to such inspections as are deemed necessary by the City to assure compliance with the conditions. (3) OCSS, with reasonable haste, to pursue the development and installation of appropriate equipment in cooperation with State and Federal agencies that will enable the facility to produce fluff that is ultimately not toxic. (4) OCSS to continue borings to insure there is no leaching of toxic substances into the ground; sprinklers will continue to be utilized on the shredder waste pile; that there will be control of any runoff from the waste pile. 752 City ~11, Anaheim, California - COUNCIL MINUTES - September 2~ 1986, 10:00 A.M. These modifications are necessary to protect the public peace, health, safety and general welfare. Refer to Resolution Book. RESOLUTION NO. 86R-394: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING CONDITIONS OF CONDITIONAL USE PERMIT NO. 1703. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Overholt and Bay Pickler and Roth None The Mayor declared Resolution No. 86R-394 duly passed and adopted. Councilman Overholt offered Resolution No. 86R-395 for adoption, modifying the conditions of Conditional Use Permit No. 2525 by adding the same conditions placed on Conditional Use Permit No. 1703 (aformentioned) with the finding that these modifications are necessary to protect the public peace, health, safety and general welfare. Refer to Resolution Book. RESOLUTION NO. 86R-395: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING CONDITIONS OF CONDITIONAL USE PERMIT NO. 2525. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Overholt and Bay Pickler and Roth None The Mayor declared Resolution No. 86R-395 duly passed and adopted. 179: R~QUEST FOR REHEARING - CONDITIONAL USE PERMIT NO. 2756 - ORANGE COUNTY STEEL SALVAGE: Request for a rehearing submitted by Floyd L. Farano, Attorn=y for Orange County Steel Salvage, for Conditional Use Permit No. 2756, to permit temporary outdoor storage of shredder waste and dismantled automobiles on RS-A-43,000 zoned property located at 3200 East Frontera Road, denied by Council on July 15, 1986, Res. 86R-335. Councilman 0verholt felt it would be appropriate to continue the request for a rehearing for approximately 90 days and at that time Mr. Farano would be able to tell the Council how his client was doing. Councilwoman Kaywood asked Mr. Adams if he was going to put the new fluff on the subject property or someplace else; Mr. Adams stated he will be placing the fluff on the existing property and the subject property would not be involved. Floyd Farano. It would be appropriate to continue the matter until such time as Mr. Adams has had an opportunity to get the new system in place and then come back and tell the Council what Mr. Adams has accomplished. 753 City Hall, Anaheim~ California - COUNCIL MINUTES - September 2, 1986~ 10:00 A.M. MOTION: Councilman Overholt moved to continue the request for rehearing on Conditional Use Permit No. 2756 to Tuesday, December 2, 1986. Councilman Bay seconded the motion. MOTION CARRIED. RECESS - CLOSED SESSION: Councilman Roth moved to recess into Closed Session to discuss the balance of the items previously announced by the City Attorney. Councilman Pickler seconded the motion. MOTION CARRIED. (5:42 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (6:26 p.m.) ADJOURNMENT: Councilman Roth moved to adjourn. Councilwoman Kaywood seconded the motion. MOTION CARRIED. (6:26 p.m.) LEONORA N. SOHL, CITY CLERK 754