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2002/07/02 ANAHEIM, CALIFORNIA - CITY COUNCIL MEETING JULY 2, 2002 r The City Council of the City of Anaheim met in regular session. PRESENT: Council Members: Lucille Kring, Tom Tait and Shirley McCracken. Mayor Tom Daly and Council Member Frank Feldhaus entered Closed Session at a later time. STAFF PRESENT: City Manager David Morgan, City Attorney Jack White, City Clerk Sheryll Schroeder, Executive Director of Planning and Community Development Joel Fick, Public Works Civil Engineer Natalie Meeks, Redevelopment and Property Services Manager Clare Fletcher. A copy of the agenda for the meeting of the Anaheim City Council was posted on June 28, 2002 at the City Hall inside and outside bulletin boards. Council Member McCracken called the regular meeting to order at 4:08 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. ADDITIONSIDELETIONS TO CLOSED SESSION: See item 6. PUBLIC COMMENTS - CLOSED SESSION ITEMS: None. Council Member McCracken moved to recess to Closed Session, seconded by Council Member Kring. Motion carried. The Council recessed to Closed Session at 4:09 P.M. Mayor Daly and Council Member Feldhaus were absent. 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Kord Group v. The Fieldstone Company, et aI., Orange County Superior Court Case No. 76-32-58. 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: City of Yorba Linda v. City of Anaheim, Orange County Superior Court Case No. 01 CC09320. 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: In re: Ogden New York Services, Inc. et aI., U.S. Bankruptcy Court No. 02-40846-cb (SDNY). CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: South Coast Cab Co. v. City of Anaheim, Orange County Superior Court Case No. 80-03-59. 4. 5. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Initiation of litigation pursuant to subdivision (c) of Section 54956.9 of the Government Code) Number of potential cases: one ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 2 6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: The Grove of Anaheim, 2200 E. Katella Avenue, Anaheim, California Agency negotiator: Greg Smith Negotiating parties: SMG, a partnership, and the City of Anaheim Under negotiation: Price and terms AFTER RECESS: Mayor Daly called the regular Council meeting of July 2,2002 to order at 5:36 P.M. and welcomed those in attendance. INVOCATION: Pastor Ken Cartlidge, First Baptist Church of Anaheim FLAG SALUTE: Council Member Feldhaus A recognition to be presented at a later date was a proclamation recognizing July 14 - 20, 2002, as National Aquatic Week. At 5:38 P.M., Mayor Daly recessed the City Council meeting until after the Redevelopment Agency meeting. Mayor Daly reconvened the City Council meeting at 5:43 P.M. ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: James Robert Reade spoke about censorship, a website that he had created and he said he believed that there was a process that allowed all people to build and have access to the kind of neighborhoods that were good for everyone. Ada Torres spoke on behalf of the Hotel and Restaurant Employees Union, Local 681, about Ordinance 5453 and 5454 relating to the Hilton displacing seven of the shuttle drivers in order to comply with the City ordinance. She asked for Council's support and for the City to help the Hilton honor their contract with the shuttle drivers. City Manager Morgan suggested that Public Works - City Engineer, Gary Johnson, contact Ms. Torres and follow up. Dennis Leslie said he was one of the drivers for the Hilton that had been laid off. He said he was unemployed as of last Friday and the Hilton had summoned him back for one month and as of August 1, 2002 he would be unemployed. He asked for an extension of his contract for one year and he said he believed that Ordinances 5453 and 5454 were unjust. Judithanne Gollette spoke on behalf of the West Anaheim Neighborhood Development group and said that she had been asked to meet with the Orange County Transit Authority and they spoke about the next ten years of transportation in west Anaheim. She noted that there was a summer month's program with OCT A for the youth to ride the bus for a flat fee of $35 for unlimited rides. ,- " ~ -_. ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 3 Michael Baker spoke about the recent opening of the skate park near the Boys and Girls Club and reported on the status of the Boys and Girls Clubs in the City. He noted that in December 2001, the Boys and Girls Clubs ended the year with 1,287 members and as of July 1, 2002, there were 1,444 members. He added that there were 361 children living in motels that were registered in the program and the children were picked up from the motels and taken to and from the Boys and Girls Clubs. He thanked the Council for their support of the program. MOTION: Mayor Daly moved to waive reading in full of all ordinances and resolutions, seconded by Council Member McCracken. Motion carried unanimously. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR A1 - A20: On motion by Mayor Daly, seconded by Council Member McCracken, the following items were approved in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar. Mayor Daly offered Resolution No. 2002R-155 for adoption. Motion carried unanimously. 118 A1. 156 105 A2. 158 A3. 158 A4. 123 A5. 170 A6. 158 A7. 123 A8. Reject certain claims filed against the City. Receive and file the Crime and Clearance Analysis Report for May 2002; minutes of the Mother Colony House Advisory Board meeting held March 1, 2002; minutes of the Public Utilities Board meeting held May 2, 2002; and minutes of the Public Library Board meeting held May 13, 2002. Approve and authorize the Mayor and City Clerk to execute the Agreements for Reference of Just Compensation Issues to Referee with Halcoa, Inc. and Hollywood Entertainment Corporation for the property located at 1201 - 1235 South Euclid Street. Approve and authorize the Mayor and City Clerk to execute the Agreement for Acquisition of Real Property with William B. Koenig and Beryle Y. Koenig, in the amount of $278,000, for properties located at 1009 and 1011 West Lincoln Avenue for the Lincoln Avenue, Phase 11/ Street Widening Project. Approve Agency-State Agreement for the Federal Aid Projects No. STPLER-5055(088), Program Supplement No. M096, for Highways and Streets Landscape Improvement Project within the cities of Anaheim, Buena Park, Fullerton and Orange. Approve and authorize the Mayor and City Clerk to execute the Final Map and Subdivision Agreement of Tract No. 14429 located at the 300 block of Henning Way. RESOLUTION NO. 2002R-155A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed NO.1 0535). Accept the low bid of Superior Special Services, Inc., dba Onyx Environmental Services, and approve and authorize the Public Utilities General Manager to execute an agreement, in an amount not to exceed $40,400 (excluding tax), for polychlorinated biphenyls disposal, on an as-required basis, for the Public Utilities Department for the period of August 1, 2002 through July 31, 2003 with three one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #6265. ..-".- -" '.. .." -,.,--- 160 160 160 128 123 123 123 123 128 ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 4 A9. A10. A11. 160 A12. A13. A14. A15. 123 A16. A17. A18. A19. r Accept the low bid of S & C Electric, in the amount of $35,565 (excluding tax), for 15.5 kV, 1200 amp vacuum circuit breakers for the Public Utilities Department in accordance with Bid #6268. Accept the low bid of Canada Power Products Corporation, in an amount not to exceed $406,500 (excluding tax), for 15kV, SF-6 subsurface and 600 amp loadbreak switches, on an as-required basis, for the Public Utilities Department for the period of July 15, 2002 through July 14, 2003 with three one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #6284. Accept the low bid of Southwest Power, Inc., in an amount not to exceed $267,458.40 (excluding tax), for 69kV splices and terminators, on an as-required basis, for the Public Utilities Department for the period of July 15, 2002 through July 14, 2003 with three one- year renewals and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #6285. Accept the low bid of Edison O&M Services, in the amount of $100,275.57 (excluding tax), for the Fairmont Substation relay protection upgrade in accordance with Bid #6297. Approve the fiscal year 2001/02 write-off of uncollectible miscellaneous accounts receivable totaling $267,724.15. Accept the low bid and authorize the Mayor and City Clerk to execute the Security Service Agreement with International Services, Inc., in an amount not to exceed $748,995, for security guard services at City Hall East, City Hall West and various other Anaheim locations for a two-year period beginning August 1, 2002, with four one-year optional renewals and authorize the Purchasing Agent to execute the renewal options in accordance with Bid #6243 (refer to Agency Item 1). Approve the terms and conditions of the Services Agreement with Hernandez Cart Service, Inc., in an amount not to exceed $48,000, for the retrieval of abandoned shopping carts for the period of July 1, 2002 through June 30, 2003. Approve the First Amendment to License Agreement with Olive Crest, in an amount not to exceed $10,000 each fiscal year, for the continuation of parent education classes and parent education forums at the Manzanita and Ponderosa Park Family Resource Centers. Approve the Second Amendment to the Master Consultant Agreements with Purkiss- Rose-RSI, Inc. and Willdan Associates for professional services on capital projects for the Community Services Department. Approve an agreement with the Anaheim Family YMCA, in the amount of $49,000, to provide youth programs to families residing in the west Anaheim area. Approve the fiscal year 2001/02 net write-off of uncollectible utility accounts, in the total amount of $645,547, representing 0.206% of the current year's revenue of $312,791 ,629 (Public Utilities Department). ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 5 114 A20. Approve minutes of the Council meeting held June 4, 2002. END OF CONSENT CALENDAR 105 A21. Nominate and appoint a citizen to fill the vacancy on the Library Board, vacancy created by the resignation of Marjorie Rothrock, term to expire June 30, 2005. Council Member Kring nominated Susan Faessel. Mayor Daly moved, seconded by Council Member McCracken to close nominations. Motion carried unanimously. Mayor Daly moved, seconded by Council Member Kring to appoint Susan Faessel to the Library Board, term to expire June 30, 2005. Motion carried unanimously. 105 A22. Nominate and appoint a citizen to serve on the Planning Commission for a full four-year term, to expire June 30, 2006. Council Member McCracken moved that an appointment to the Planning Commission be continued to the July 23,2002 Council meeting, seconded by Council Member Kring. Motion carried unanimously. Items B1 throuah B12 From Plannina Commission Meeting of June 17. 2002: (No action by City Council required unless expressly indicated. Council may consider and act upon such matters at its discretion. Items requiring a public hearing may be set for hearing at a later date upon the request of any two Council members.) APPEAL PERIOD ENDS JULY 9,2002: 179 B1. DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 2002-00006 CATEGORICALLY EXEMPT - CLASS 1: OWNER: California State Teacher's Retirement 7667 Folsom Boulevard, Sacramento, CA 95826 AGENT: R. H. Properties, LLC., 34197 Pacific Highway, Suite 102 Dana Point, CA 92629 LOCATION: 650 North Euclid Street. Property is approximately 8.82 acres located at the northeast corner of Euclid Street and Crescent Avenue (Gigante Market). Request for determination of public convenience or necessity to permit retail sales of alcoholic beverages for off-premises consumption within a proposed grocery store. ACTION TAKEN BY THE PLANNING COMMISSION: Determination of Public Convenience or Necessity No. 2002-00006 denied (PC2002-91) (7 yes votes). Letter of appeal submitted by the Agent. Set for public hearing August 20, 2002. r ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 6 179 B2. GENERAL PLAN AMENDMENT NO. 2002-00402 RECLASSIFICATION NO. 2002-00070 WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 2002-04530 AND NEGATIVE DECLARATION: OWNER: James H. Kroll, 1970 Aspen Street Los Osos, CA 93402-2402 AGENT: Tait and Associates, Attn: Leslie Burnside 9089 Clairemont West Boulevard, # 300, San Diego, CA 92123 LOCATION: 1201 South Brookhurst Street. Property is approximately 1.2-acres located at the southwest corner of Ball Road and Brookhurst Street (Arco AM/PM Service Station). GENERAL PLAN AMENDMENT NO. 2002-00402 - Request amendment to the Land Use Element of the General Plan to redesignate the property from the Low Density Residential land use designation to the General Commercial land use designation. RECLASSIFICATION NO. 2002-00070 - Request reclassification of Portion A from the property from County of Orange, County C-1 (Commercial) Zone to the CL (Commercial, Limited) Zone or less intense zone. CONDITIONAL USE PERMIT NO. 2002-04530 - Request to permit a gasoline service station with an accessory convenience market with sales of beer and wine for off- premises consumption and an accessory car wash with waivers of a) maximum structural height abutting a single-family residential zone boundary and b) minimum distance between driveway openings adjacent to an arterial highway. ACTION TAKEN BY THE PLANNING COMMISSION: Applicant's request to withdraw accepted (7 yes votes). 179 B3. CONDITIONAL USE PERMIT NO. 2670 CATEGORICALLY EXEMPT - CLASS 1: OWNER: Italian Bruno's Restaurant, 1750 West La Palma Avenue Anaheim, CA 92801 AGENT: EI Patio Restaurant, 1750 West La Palma Avenue Anaheim, CA 92801 LOCATION: 1750 West La Palma Avenue. Property is approximately 1.12 acres located at the southeast corner of La Palma Avenue and Mohican Avenue (EI Patio Restaurant). Request to amend a condition of approval pertaining to hours of operation in conjunction with a previously approved semi-enclosed restaurant and to permit a public dance hall as an accessory use with on-premises sale and consumption of alcoholic beverages. ACTION TAKEN BY THE PLANNING COMMISSION: Request to amend Conditional Use Permit No. 2670 denied (PC2002-96) (7 yes votes). Letter of appeal submitted by the Agent. Set for public hearing August 20, 2002. B4. CONDITIONAL USE PERMIT NO. 2000-04277 179 AND NEGATIVE DECLARATION: OWNER: Gock Woey Jung, 433 South Vicki Lane Anaheim, CA 92804 AGENT: De Hua Jr., 12201 Brookhurst Street Garden Grove, CA 92640 -0-- ,... ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 7 LOCATION: 420-504 South Brookhurst Street. Property is approximately 1.5 acres with a frontage of 205 feet on the east side of Brookhurst Street located 492 feet north of the centerline of Orange Avenue (Seafood Place Restaurant). Requests reinstatement of this permit by the modification or deletion of a condition of approval pertaining to a time limitation (approved on November 6, 2000 to expire on November 6, 2001) to retain a banquet hall with service but no sales of alcoholic beverages for on-premises consumption and modification or deletion of a condition of approval pertaining to construction of a block wall. ACTION TAKEN BY THE PLANNING COMMISSION: Denied request for reinstatement of Conditional Use Permit No. 2000-04277 (PC2002- 97) (7 yes votes). Negative Declaration previously approved. Letter of appeal submitted by the Agent. Set for public hearing August 6, 2002. B5. VARIANCE NO. 2002-04506 179 MITIGATED NEGATIVE DECLARATION: OWNER: Bann-Shiang Liza Yu, 5720 EI Camino Road Las Vegas, NV 89118 AGENT: Reza Azarpour, P. O. Box 9800, Anaheim, CA 92812 LOCATION: 1733 South Anaheim Boulevard. Property is approximately 0.92-acre having a frontage of approximately 100 feet on the east side of Zeyn Street and approximately 100 feet on the west side of Anaheim Boulevard located approximately 580 feet north of the centerline of Katella Avenue. Request waivers of a) required improvement of setback areas, b) fences and walls in interior lot line setback areas, c) minimum hotel parking requirements and d) hotel sign standard matrix to permit a 150-room, 6-story hotel. ACTION TAKEN BY THE PLANNING COMMISSION: Variance No. 2002-04506 granted, in part, approving waivers (a), (b) and (c) and denying waiver (d) (PC2002-98) (7 yes votes). Mitigated Negative Declaration previously approved. B6. CONDITIONAL USE PERMIT NO. 3726 179 AND NEGATIVE DECLARATION: OWNER: Vineyard Christian Fellowship, 5340 East La Palma Avenue Anaheim, CA 92807 AGENT: C 3, Attn: H. E Sampson, 24722 Avondale Drive Laguna Hills, CA 92653 LOCATION: 5310 East La Palma Avenue. Property is approximately 23.1 acres having a frontage of 1,238 feet on the south side of La Palma Avenue located 2,370 feet west of the centerline of Imperial Highway (Fairmont Private School). Requests reinstatement of this permit by the modification or deletion of a condition of approval pertaining to a time limitation (approved on May 20, 1997 to expire June 20, 2002) to retain a maximum enrollment of 650 students for a previously approved private school accessory to an existing church. ACTION TAKEN BY THE PLANNING COMMISSION: Approved reinstatement of Conditional Use Permit No. 3726 with deletion of a time limitation (PC2002-99) (7 yes votes). Negative Declaration previously approved. -r 179 179 179 179 179 ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 8 B7. CONDITIONAL USE PERMIT NO. 3506 AND MITIGATED NEGATIVE DECLARATION: OWNER: Vineyard Christian Fellowship, Attn: Craig Pahl, 5300-5340 East La Palma Avenue, Anaheim, CA 92807 LOCATION: 5340 East La Palma Avenue. Property is approximately 23.1 acres having a frontage of 1,238 feet on the south side of La Palma Avenue located 2,370 feet west of the centerline of Imperial Highway (Vineyard Christian School). Request reinstatement of this permit by the modification or deletion of a condition of approval pertaining to a time limitation (approved on April 27, 1998 [retroactive to May 2, 1997] to expire May 18, 2002) to retain a private school (pre-school through 8th grade) in conjunction with a previously approved church. ACTION TAKEN BY THE PLANNING COMMISSION: Approved reinstatement of Conditional Use Permit No. 3506 with deletion of a time limitation (PC2002-100) (7 yes votes). Mitigated Negative Declaration previously approved. B8. CONDITIONAL USE PERMIT NO. 2002-04553 CATEGORICALLY EXEMPT - CLASS 1: OWNER: Chung Rho, 20439 Cunningham Place, Anaheim, CA 92806 AGENT: James Hahn, 10042 Lampson, Garden Grove, CA 92840 LOCATION: 825 North Euclid Street. Unit F. Property is approximately 0.94-acre having a frontage of 172 feet on the west side of Euclid Street located 130 feet north of the centerline of Glenoaks Avenue (K & J Nutrition). Request to permit a WIC (Women, Infant and Children) convenience market within an existing commercial retail center. ACTION TAKEN BY THE PLANNING COMMISSION: Conditional Use Permit No. 2002-04553 granted (PC2002-101) (7 yes votes). REPORTS AND RECOMMENDATIONS: B9. VARIANCE NO. 2001-04453 - REQUEST FOR TERMINATION: Anaheim Mazda/Hyunda, Attn: Rick Heinz, 1271 Auto Center Drive, Anaheim, CA 92806, requests termination of Variance No. 2001-04453. Property is located at 1231-1251 Auto Center Drive. ACTION TAKEN BY THE PLANNING COMMISSION: Variance No. 2001-04453 terminated (PC2002-87) (7 yes votes). B10. VARIANCE NO. 4387 - REQUEST FOR TERMINATION: Moussa Raiszadeh, 7649 East Hollow Oak Road, Anaheim, CA 92808, requests termination of Variance No. 4387. Property is located at 349 South Ramsgate Drive. ACTION TAKEN BY THE PLANNING COMMISSION: Variance No. 4387 terminated (PC2002-88) (7 yes votes). B11. CONDITIONAL USE PERMIT NOS. 2332. 2283 AND 2266 - REQUEST FOR TERMINATION: Gelb Enterprises, Attn: David Friedrich, 17547 Ventura Boulevard, Suite 201, Encino, CA 91316, requests termination of Conditional Use Permit Nos. 2332, 2283 and 2266. Property is located at 2424 West Ball Road, Units L, K, and Z. ACTION TAKEN BY THE PLANNING COMMISSION: -r ......,,-'- 179 176 ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 9 Conditional Use Permit Nos. 2332, 2283 and 2266 terminated (PC2002-89) (7 yes votes). B12. CONDITIONAL USE PERMIT NOS. 1066.2834.3189.3496.3704 AND 3870 AND VARIANCE NOS. 508 AND 2788 - REQUEST FOR TERMINATION: Everett H. Miller, Jr, 1500 East Ocean Boulevard, # 718, Long Beach, CA 92802-6933, requests termination of Conditional Use Permit Nos. 1066, 2834, 3189, 3496, 3704 and 3879 and Variance Nos. 508 and 2788. Property is located at 940-956 South Brookhurst Street. ACTION TAKEN BY THE PLANNING COMMISSION: Conditional Use Permit Nos. 1066,2834,3189,3496,3704 and 3870 and Variance Nos. 508 and 2788 terminated (PC2002-90). (7 yes votes). 6:00 P.M. PUBLIC HEARINGS: C1. To consider the abandonment of a portion of excess street right-of-way located along the Miraloma Avenue overpass at the 91 Freeway adjacent to the Palm Lodge Mobile Estates. At their meeting held June 4, 2002, Item A 12, the Anaheim City Council adopted Resolution No. 2002R-109 declaring its intention to vacate certain public streets, highways, and service easements (Abandonment No. ABA2002-00053) (Miraloma Avenue overpass at the 91 Freeway). REQUESTED BY: Department of Transportation, Legal Division, 865 South Figueroa Street, Suite 400, Los Angeles, CA 90017-5472. Public Works - Civil Engineer, Natalie Meeks presented a staff report and stated that as a result of some of the work that CalTrans had done adjacent to the Palm Lodge Mobile Estates there had been a lawsuit filed from Palm Lodge against CalTrans due to some drainage. She said that CalTrans, in turn, filed action against the City and Public Works had been working with both parties to resolve the issue and the City had agreed to abandon some right of way that was no longer in use along Miraloma and CalTrans would correct the drainage issue for the Palm Lodge Estates and resolve the issue. Mayor Daly opened the public hearing and hearing no testimony, closed the public hearing. Mayor Daly moved, seconded by Council Member McCracken, to approve the CEQA Finding of Categorically Exempt, Class 5. Motion carried unanimously. Mayor Daly offered Resolution No. 2002R-156 for adoption. RESOLUTION NO. 2002R-156 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM VACATING CERTAIN PUBLIC STREETS, HIGHWAYS AND SERVICE EASEMENTS. (ABANDONMENT NO. 2002-00053.) Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Tait, Kring and Feldhaus. Noes - O. Absent - O. Motion carried. Mayor Daly moved, seconded by Council Member McCracken, to approve the quitclaim of the City's right, title and interest in the abandoned area to the applicant. Motion carried unanimously. -,- 179 179 ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 10 C2. CONTINUED PUBLIC HEARING; CONDITIONAL USE PERMIT NO. 2001-04499 AND NEGATIVE DECLARATION: OWNER: Tosco Corp., 2585 West La Palma Avenue Anaheim, CA 92801 AGENT: Olfati Design Group, Attn: AIi R. Dogmetchi 5199 East Pacific Coast Highway, Suite 320N, Long Beach, CA 90804 LOCATION: 2585 West La Palma Avenue. Property is approximately 0.52-acre located at the northeast corner of Magnolia Avenue and La Palma Avenue [Union Oil (76) Service Station]. Requests to establish conformity with existing Zoning Code land use requirements for an existing automobile service station and to permit the conversion of the existing service station building into an accessory food mart with sales of beer and wine for off premises consumption. ACTION TAKEN BY THE PLANNING COMMISSION: Conditional Use Permit No. 2001-04499 denied (PC2002-31) (4 yes votes, Commissioners Bostwick, Boydstun and Vanderbilt absent). Negative Declaration approved. (Informational item at the Council meeting of March 19, 2002, Item B2. Planning Commission's decision appealed by the Agent Alj Dogmetchi. Continued from the Council meetings of April, 23, 2002, Item C5 and May 14, 2002, Item C2). Mayor Daly moved, seconded by Council Member McCracken, to continue Item C2 to August 6, 2002 as requested by the applicant. Motion carried. Council Member Tait abstained. C3. RECLASSIFICATION NO. 2002-00072 VARIANCE NO. 2002-04499 AND NEGATIVE DECLARATION: OWNER: Choco Realty Corporation., Attn: Kerri Rupert 455 South Main Street, Orange, CA 92868 AGENT: Mercy Housing California, Attn: Ben Phillips 500 South Main Street, #110, Orange, CA 92868 LOCATION: 2761 West Ball Road. Property is approximately 0.77-acre with a frontage of 100 feet on the north side of Ball Road located 465 feet east of the centerline of Dale Avenue. Reclassification No. 2002-00072 - Request reclassification of the property from the RS-A-43,OOO (Residential/Agricultural) zone to the RM-1200 (Residential, Multiple- Family) or less intense zone. Variance No. 2002-04499 - Request waivers of a) minimum number, type, and location of off-street parking spaces, b) maximum structural height, c) minimum unit size, d) minimum setback abutting one-family residential developments and e) additional incentives in lieu of a density bonus to construct a two to three story, 23-unit affordable "special needs" apartment complex. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 2002-00072 granted (PC2002-74) (6 yes votes, Commissioner Bristol absent). Variance No. 2002-04499 granted (PC2002-75). .- ,... ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 11 Negative Declaration approved. Informational item at the Council meeting of June 11, 2002, Item B2. Review of the Planning Commission's decision requested by Council Member Feldhaus and Mayor Daly). Mayor Daly asked that the City try wherever possible to rehabilitate the existing housing stock and he asked why staff would build new units versus remodeling existing units. Executive Director of Planning and Community Development, Joel Fick, stated that this was a request to rezone the property from the RS-A-43,OOO zone to the RM-1200 zone and to construct a two and three-story, 23-unit, affordable, special needs complex. The property was designated as medium density residential on the land use element of the general plan and was identified as a housing opportunity site within the housing element, he noted. The west Anaheim vision plan anticipated residential land uses and surrounding uses on both sides of the property consisted of apartments, he said, and there was one single-family home and the property reared onto Dale Junior High School. He noted that there was no opposition to the project expressed at the Planning Commission meeting and a local neighborhood group had expressed support. The President of the Board of Trustees of the Magnolia School District had submitted a letter indicating no overall negative attendance impact to schools within the area. Staff had been supportive of the rezoning of the property to provide for multiple-family residential development consistent with the medium density residential land use designation for the site, he informed. The primary initial concern was the number of waivers being requested and whether they could be justified in accordance with State law, he said. The Planning Commission looked carefully at the issue at their public hearing and determined that the flexibility to grant the waivers existed based on the City's density bonus ordinance and State law because of the City's affordability component, he explained. The Planning Commission deliberated carefully on the requested waivers in relation to affordability and the physical characteristics of the site, which was long and narrow and different than a conventional apartment complex, he stated. He noted that in order to address the staff issues raised regarding the potential development transitioning into a different type of apartment complex and to limit the use of the complex to special needs tenants, the Planning Commission added a condition of approval requiring that an unsubordinated covenant be recorded on the property that restricted the occupancy of the complex to special needs housing or senior citizen apartments. He said when considering the factors together with community support for the project expressed at the hearing, Planning Commission unanimously approved the project. Mayor Daly asked if there were any alternatives in terms of design to not have as many waivers and Director Fick stated that the unique nature of the special needs and conditioning that the Planning Commission attached to the project eliminated the majority of staff concerns regarding the types of waivers being requested. Council Member Feldhaus asked if Planning Commission had found the same waivers applicable for private developers as they did for non-profit and Director Fick said he believed that they would have and the Planning Commission had viewed two aspects of the project, which were the affordability and unique characteristics of the site. He said that the Planning Commission had felt that the combination of the two items addressed those two things. Council Member Feldhaus said that the property jutted out into Ball Road and he asked if Ball Road was widened to its ultimate width. Director Fick responded that before the project would go forward, as any project of that type would, they would need to be in compliance with the dedication requirements for the arterial highway. r ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 12 Council Member Feldhaus said that they had originally asked for a $750,000 loan and it was adjusted down to $345,000 and he asked how the difference would be made up. Redevelopment and Property Services Manager, Clare Fletcher, said that the developer, out of necessity, changed its targeted primary financing source from a Housing and Urban Development Program that was specially devised for this type of housing to the more common use of low-income housing tax credits and it changed the whole financing scheme for the project. She said that should the project be approved, the burden was on the developer to ensure that the total financing could come together based on the City's limited ability to participate in the project as well as the other public agencies. She said the give and take was in how much they would be able to raise through the tax credit process and through other grants and or private donations. Before the project went forward, the Council would see the project once again in terms of its total financial feasibility. Director Fick added that at the last Board of Supervisor's meeting, there was a County component that received approval and some of the pieces of the project were contingent upon the other falling into place. Council Member Feldhaus asked about the funding and Director Fick said that staff had encouraged a quality design and there were both design enhancements and evaluations of what gap feasibility was needed in order for the project to be successful. Ms. Fletcher said that the Housing and Urban Development 811 money was what the developer was going to be using to build the project and it had its own set of rules and regulations and some funding restraints. In response to Council Member Feldhaus, Director Fick said that the size of the units were fixed based on the Planning Commission's approval and the tie of the approval to the exhibits. Ms. Fletcher said the Agency staff had recommended a tentative loan commitment of $15,000 per unit and the overall development costs were still subject to change and the applicant could confirm where they were and the amount of $4 million that had been quoted to Council was still relatively accurate. Council Member Feldhaus asked if the City was trying to put in too many units on the property and he asked if that was why it required the five waivers. Director Fick responded that a number of the waivers related to the special needs aspect of the project in terms of the size of the units and the overall number of units was within what would be acceptable within a medium density type of designation. Mayor Daly said it appeared that the design was for 23 studio apartments and he said he believed that this would be the third such project in Orange County and there were the same projects in Laguna Beach and Santa Ana. He asked if there were any other projects proposed in other Orange County cities and he asked how it would be determined countywide since there were 45-units in the County now and this project would bring the number of units up to 68. He also asked who determined who would get to live in the project, especially the Anaheim project. Director Fick stated that those were the only projects that staff was aware of and in the event that the affordability agreement was approved, they would have a preference for Anaheim residents. r'. ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 13 Council Member Feldhaus asked how special needs was defined and City Attorney, Jack White, stated that because the project would be occupied exclusively by lower income persons, they were entitled under both State law and the City's density bonus to certain benefits or incentives that were in addition to what the Code requirements were in terms of the development standards. Some, if not all, of the five waivers related to the issue of the density credit or bonuses that the project was entitled to, he said, because it would be limited to low-income persons. He said that the project was being proposed for AIDS or HIV positive patients and that did not provide the reason why it would be entitled to the special benefits under the City's zoning because it was limited in terms of the affordability of the housing itself. He said even if the project were an affordable housing project, it would still be entitled to the same type of benefits. Mercy Charities had chosen to make this a project for special needs and be used for AIDS inflicted people and that was not the basis that they were entitled to the zoning for people or for benefits under the density bonus credits. Mayor Daly noted that letters of support had been received from the Catholic Diocese of Orange and St. Joseph Hospital and there had been phone calls in support of the project. He said he believed that there was no correspondence in opposition. Mayor Daly opened the public hearing. Dara Kovel, Mercy Housing California, introduced Ben Phillips, Project Manager; Ken Genser from Lawson Associates who was the land use consultant; architect Ralph Metcher, from Ralph Metcher and Associates; Scott McVie, land use attorney and several staff members from AIDS Services Foundation. Mayor Daly asked if it was acceptable to introduce the financial aspects as part of the hearing and City Attorney, Jack White, said that the decision to be made on the financial end of it should be separate from the zoning decision to be made at the public hearing. Ms. Kovel stated that Mercy Housing had served ten other communities in Southern California with similar types of developments and she noted some of the services AIDS Services Foundation would provide for the residents at the development of the proposed project. AIDS had identified housing as a crucial need and permanent housing was identified as a goal, she said, and that was when they had approached Mercy Housing. She said that this site had been identified, in particular, because the Children's Hospital of Orange County had it available and was interested in selling it. It was clear, she said, that there was an overwhelming need for individual households and that was how the 23-units or studios evolved and that was how the program for the housing had begun. She informed Council that there had been over 100 calls from residents for this type of housing and the AIDS Services Foundation would make sure that Anaheim residents who had the greatest need would be served. It was a housing facility and was not a hospice or transitional living, she informed, and it was for people who were prepared to live independently and AIDS Services Foundation would provide supportive services on site to make sure that stability could be maintained and occupants could continue to grow and strengthen. Mercy Housing had worked closely with staff and derived a site plan and she noted that the site was currently vacant and had multi-family apartments on both sides and she said that Mercy had been told that the first site plan did not fit into the neighborhood. Mercy Housing added more traditional colors and siding and she presented a power point presentation and added that the neighbors were glad to have Mercy Housing. She noted that there were many things derived from the community outreach process and the landscaping was great and there were multiple open spaces for the residents and parking was in the back of the site. or.' '" ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 14 Ben Phillips, Project Manager for Mercy Housing, said that the site was narrow and there was a single-family home that was land-locked behind an adjacent parcel that caused some additional setback requirements. The requested waivers had been kept as limited as possible in terms of number and degree so that the end result was that they were justifiable based on the site conditions, he said, as well as the affordable housing bonuses that were allowable. He said that the single-family dwelling required an additional 20-foot setback of landscaped buffer and an additional 30-feet where there was no structure allowed at all. Without any kind of waiver it would allow the entire back half of the very narrow site to be virtually un-built. In order to achieve the design direction that Mercy received from the community within the constraints, Mr. Phillips said that there were four deviations from the design standards and a zone change. The discussion at the Planning Commission centered around the affordable housing density bonus and the interpretation of it, he said. As a result of the way it was structured, Mercy requested two waivers that the project was entitled to based on its income incentives and that would the be zone change from RS-A-43,OOO to RM-1200 and the unit mix which was heavy on studios because of the targeted population, he noted. In addition to that, Mercy was entitled to additional waivers that were in lieu of a 25 percent density bonus and Mercy had requested the minor setback deviations, the exception to the two-story height limit and a small reduction to parking that was supported by a staff-approved parking study, he explained. He said Mercy felt that their requests were reasonable and that Mercy was presenting a viable, high quality project and that the site was designated in the General Plan as multi-family residential and that the development qualified for the waivers and that the waivers would be related to the target population and would not set any negative precedent citywide. He added that there was a great deal of community support for the development. Mr. Phillips spoke about specifics for the affordable housing incentive and said that Mercy was required to demonstrate that the incentives that Mercy had requested were of equivalent financial value to a density bonus and the additional incentives that any affordable housing developer would be entitled to. The numbers that were prepared by a consultant for Community Development had added up and the zoning change and unit mix, plus a density bonus, would equal $485,000 and the value of all the variances requested instead of the density bonus, was $470,000 and he noted that Mercy could meet the equivalency test. He noted that one of the issues brought up at the Planning Commission hearing was that the narrowness of the site met the previously established guideline for what would justify such a waiver. He explained that the Commissioners recognized that it was reasonable to make an accommodation for special needs, disabled households in order to have the type of housing needed in the City. In addition, he said, Mercy Housing had made it clear that they were willing to restrict the use of the property to special needs household and had brought along a draft covenant that Mercy had begun negotiating with the City Attorney's Office and he said Mercy was confident that an agreement would be reached on an acceptable covenant. Mr. Phillips stated that costs had come down slightly due to the change from an 811 project to a tax-credit project and due to the change in financing, Mercy did not have to comply with certain regulatory requirements of the program that presented higher costs such as prevailing wages. Dara Kovel concluded by saying that Mercy was present because of the local need and she hoped that AIDS Services Foundation and Mercy Housing could assist in addressing the need. She said that the entitlement request was restricted to special needs and there was a covenant that should provide Council and Planning Commission ease that the housing would not be converting to market rate family housing or overcrowding over the life of the property. She said that the financing request would leverage over $3 million in other types of financing and an -r ".,. ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 15 investment and amenity would be brought to the neighborhood and she stated that Mercy had worked to develop strong community support and people had participated in making the project a great amenity to the neighborhood. She said other requests had recently been received about other developments in Orange County and in Southern California. Mayor Daly asked about the other projects in Orange County and mentioned that he had heard about the Laguna and Santa Ana projects. Ms. Kovel said that Laguna and Santa Ana were the projects that she was familiar with and there may have been other projects that she was not aware of. She noted that Mercy had been talking to AIDS Services Foundation and Costa Mesa and other cities about looking for housing sites. Phil Yeager, Director of Housing for the AIDS Services Foundation, informed that there was Hagen Place in Laguna Beach which was 25-units for people disabled by HIV and AIDS and there was a Emanuel House in Santa Ana and it was a 21-bed, transitional living facility for homeless individuals living with HIV and AIDS. He said that across from Emanuel House was a development project in the planning stages that would be a rehabilitation of five apartment units and construction of a new four-bedroom, single-family home which was permanent housing for people living with HIV and AIDS. There were two facilities in Santa Ana that were operated by Straight Talk, Inc. and one was Start House which was a six-bedroom transitional facility for people living with HIV and AIDS and Gary House West, which was a six-bed treatment facility for individuals dealing with substance use issues and people with HIV and AIDS. There were two other facilities operated by Annie's House and one was in Santa Ana and was a four- bedroom, single-family residence and one in Huntington Beach and was a five-bedroom, single- family residence for permanent housing. Mayor Daly asked if there was anything upcoming that was similar to the 23-unit project and Mr. Yeager said that there was not at this time. Mayor Daly asked if existing apartments were looked at in the City and the possibility of rehabilitating existing units rather than building from scratch. Mr. Phillips said that the Santa Ana properties and most others mentioned by Mr. Yeager, other than the Hagen Place property, were congregate or transitional housing facilities. Across the street from one of the facilities, the owner/operator of the facility was expanding the operation by adding a small number of independent apartments and rehabilitating a single-family home as congregate living. He said Mercy Housing had intended to build independent living facilities for people who were prepared to live independently and needed permanent housing. He said a group home was not typically an appropriate facility for that and in terms of a site search there were a number of limiting constraints. He said it was difficult to find a site that worked because it needed to be vacant since most of the funding sources triggered extensive relocation costs if direct HUD funding was used and that could add upwards of $1 million of costs to a project of this size. Ms. Kovel said that several properties in Costa Mesa had been looked at by Mercy Housing and AIDS Services Foundation since they had a struggle finding vacant land. She said that the City's contribution for an equivalent number of units would be astronomical and would be three to four times what the financial request was for this project and she said the City would need to pay to relocate people. She said that the project would be similar to Jeffrey Lynne and would need to be the perfect size and fit and it would easily be well over $1 million that the City would need to chip in for the same housing and it might not be as good of a fit. She said Mercy had looked at and verged on infeasible and that was the challenge. r ... ,~;,'.^' ....,--_......._-~_.._-_.....-. ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 16 Mayor Daly said a larger loan would have been necessary to pursue a rehabilitation project and Ms. Kovel agreed and added that a loan of that size would not have a potential of being paid down from a development of this type given the costs to run something so small. Ben Phillips proceeded to show Council Members various pictures of facilities via a power point presentation. He noted that the Laguna Beach facility had previously been a commercial facility, a GTE switching station that had been changed into an apartment facility. Janice Barrettt-Kilbank said she was living with AIDS and that her daughter could no longer support her. There was a tremendous need for this type of housing, she said, and she said that people were probably chosen for the properties by lottery. Everyone who was HIV positive would sign up and numbers were drawn and the first 23 people get in and usually there would not be a vacancy until someone died. Kiley spoke about her grandmother, Janice Barrett-Kilbank, and said that she was an HIV victim and she needed housing. Ashley spoke about her grandmother, Janice Barrett-Kilbank, and said that her grandmother had AIDS and she needed a house to live in. Pearl Jemison-Smith said she was a founding board member of the AIDS Services Foundation and had a son that was infected with HIV and diagnosed with AIDS. She said that the AIDS Services Foundation had over 1,500 individuals that were living with HIV and AIDS and there was a need for survival services, such as housing, transportation and food. Although the AIDS Services Foundation received some federal funds, State and local funding and housing were also important, she said. She said she was involved in the City of Laguna Beach and the Hagen Place and rehabilitating the old GTE building had been a nightmare but the Foundation was proud of the way that the building had worked out. She informed that AIDS Services Foundation was a case management and non-profit, social service organization and served 178 clients that were Anaheim residents and provided subsidies to 24 clients in rental units in the City. The housing project would allow people to remain in their communities and capitalize on the new hope that existed in treatment breakthroughs, she said, and maintain their independence and self-sufficiency and resume their vital contribution to the community. Maya Dunne, St. Josephs Health System, said that there was an intricate connection to housing and that health status was directly affected by housing conditions and the ability of people to live independently in that type of setting would make a big difference in health status. Housing was also a major issue in other market areas and St. Josephs was working on that in other counties as well. She said she was familiar with other developments throughout California and she said that she thought that this was going to be a model. She said that AIDS Services Foundation and Mercy Housing were very strong partners and housing was of concern to St. Josephs' Health System because it affected the lower incomes in the community and she said that they believed it was important to support housing for people who had HIV and AIDS and also for large families. St. Josephs' had assisted in providing loan funds through a competitive loan program for non-profits called the Community Investment Loan Program, she informed, and St. Josephs' would lend out funds to organizations like Mercy Housing. She said she believed that Mercy Housing would deliver a quality project and they provided excellent management of the project and supportive services and this was an opportunity to make a difference in the lives of people. r ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2,2002 PAGE 17 Wendy Lords urged Council to support the construction and support of affordable housing for HIV disabled in the City. She noted that people struggled on a fixed income and many could only afford to rent substandard dwellings that contributed to the blight of the City rather than improve it. Mercy Housing demonstrated that the City was a forward-thinking community that worked to increase the quality of life for all of its residents, she said, and she urged Council to move forward with the project. Ignacio Alvarez said that the construction of affordable housing for people disabled with HIV/AIDS was important for the City and important for people who were disabled. He said as a resident, community leader, homeowner and a person living with HIV that it was a need of the community. David Merino said that the City needed to grow in its humanitarian efforts especially for HIV and AIDS assistance. He had a brother that died of AIDS and he said he felt that this was a strong project. The construction of affordable housing would help the City and improve its goals. Catie Lacy spoke on behalf of the Spectrum Club fitness and sports complex and said that the Club's experience with AIDS Services Foundation had been great. She spoke to the 2,000 to 3,000 members at the Club and many who lived in the City said that nothing but good could come from the project and she asked that Council support the project. Orlando Vasquez stated that he was an employee of St. Josephs Health System and a resident and he encouraged Council to support the project. Charles Bradley stated he was part of the West Anaheim Neighborhood Development Land Use Committee and the group had met with Mercy Housing and they and the developer went along with any of the suggestions or requests proposed by WAND to make the apartments fit into the neighborhood and blend. He noted that the property no longer jutted out into Ball Road and that there were curbs, gutters, sidewalk and the street was paved where there was dirt. He said that the property had been out in the street and vacant since he had become a resident in 1964. He said that the group did not have any objections to Mercy's proposal. Judithanne Gollette said she was a representative of the West Anaheim Neighborhood Development (WAND) Land Use and Business Development Committee and she did not want Mercy Housing to loose the opportunity for their application. She said there had not been one negative comment from the community and Mercy Housing had gone to the School District and the community and there had been total support for the project. Mercy Housing had worked in unison with WAND from the beginning and taken their suggestions to heart. She said that WAND had asked for proof that there were Anaheim residents that needed the housing when the project first started and they came back with the fact that there were 180 requests for housing from Anaheim residents. Ms. Gollette said she attended a Southern California Agency of Non Profit Housing conference and she had seen all different types of housing developments that had been done for affordable housing. She asked to change the negative connotation of affordable housing to make it a quality housing for a balanced community. West Anaheim residents and WAND had taken a stand that they were trying to provide a balanced housing stock for the entire community, she noted. There were 180 requests for housing for special needs, she informed, for people with AIDS. She noted that there were the other projects throughout Orange County and she invited the City to create a special needs housing ordinance. She asked Council to build quality housing for the entire community and WAND asked that if for some reason the project did not get the funding, the rezoning from RS-A-43,000 down to RM-1200 revert back to RS-A-43,000. She stated that the West Anaheim ''''- -. .....--_. ---... ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 18 Neighborhood Development group stood in support of the project and they were willing to continue to work together. Mayor Daly closed the public hearing. Council Member Kring said she supported the project and she asked that affordable housing be renamed to balanced housing. She noted that Mercy Housing had quality development and superior management. Council Member McCracken asked if the zone change of the property would revert back and Director Fick said that the zoning could not revert to another zoning and the guiding principal was that the condition that the Planning Commission approved was the condition that coveted the property for a special needs and/or senior project. Council Member McCracken said that it was a concern that some of the community had that the property would become an overly dense apartment project and she stated that this would really be quality housing for those who had limited income and had some challenges to face in the remaining years of their lives. Director Fick stated that the covenant did provide that protection. Council Member McCracken moved, seconded by Council Member Kring, to approve the CEQA Finding of Negative Declaration. Motion carried unanimously. Council Member McCracken offered Resolutions Nos. 2002R-157 and 2002R-158 for adoption. RESOLUTION NO. 2002R-157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE SHOULD BE AMENDED AND THAT THE BOUNDARIES OF CERTAIN ZONES SHOULD BE CHANGED. (RECLASSIFICATION NO. 2002-00072.) RESOLUTION NO. 2002R-158 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING VARIANCE NO. 2002-04499. Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes - O. Motion carried. Report on Closed Session Actions: None. Council Communications: Council Member Kring had invited everyone to the annual 4th of July events with a 5K110K run, and included a pancake breakfast, picnic, parade and ended with fireworks at Peralta Park. Council Member Feldhaus informed everyone that the Orange County Transit Authority had a summer youth program for youth under the age of 18 and can ride for $35 for the months of July and August. Adjournment: r -" -...~_... ~._-. .-_. ... ANAHEIM CITY COUNCIL MEETING MINUTES JULY 2, 2002 PAGE 19 There being no further business to come before the City Council, Mayor Daly adjourned the meeting at 7:30 P.M. Respectfully submitted: ~~ Sheryll Schroeder, CMC/AAE City Clerk -,-