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2002/11/19ANAHEIM, CALIFORNIA- CITY COUNCIL ADJOURNED REGULAR MEETING NOVEMBER 19, 2002 The City Council of the City of Anaheim met in adjourned regular session. The Notice of Adjournment was posted at 3:00 P.M. on November 19, 2002 on the exterior door of the Anaheim Council Chambers, announcing the adjournment to 4:30 P.M. due to a lack of quorum. PRESENT: Mayor Tom Daly, Council Members: Frank Feldhaus, Lucille Kring, Tom Tait and Shirley McCracken. STAFF PRESENT: City Manager David Morgan, Senior Assistant City Attorney Larry Newberry, City Clerk Sheryll Schroeder, Finance Director William Sweeney, Executive Director of Community Development Elisa Stipkovich, Purchasing Agent Carol Ayuso, Zoning Administrator Annika Santalahti, Executive Director of Planning and Community Development Joel Fick, Public Works Civil Engineer Natalie Meeks and Zoning Manager Greg Hastings. A copy of the agenda for the meeting of the Anaheim City Council was posted on November 15, 2002 at the City Hall inside and outside bulletin boards. Mayor Pro Tern Frank Feldhaus called the regular meeting to order at 4:35 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. Mayor Daly and Council Member Tait were absent and entered the Council Chamber at a later time. ADDITIONS/DELETIONS TO CLOSED SESSION: None. 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 4:36 P.M. Mayor Daly and Council Member Tait were absent. COUNCIL: 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 al., Orange County Superior Court Case No. 76-32-58 (and related cases). 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 al., 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: Melodyland Christian Center v. SMG, et al., Orange County Superior Court Case No. 02CC16604. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 2 Name of case: City of Anaheim v. Raymond G. Spehar, Orange County Superior Court Case No. 01CC00831. REDEVELOPMENT AGENCY: CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property: 1001 West Lincoln Avenue, Anaheim Agency negotiators: Joel Fick, Elisa Stipkovich Negotiating parties: Anaheim Redevelopment Agency and Christopher Ryan Under negotiation: Price and terms 119 123 AFTER RECESS: Mayor Daly called the adjourned regular Council meeting of November 19, 2002 to order at 5:13 P.M. and welcomed those in attendance. INVOCATION: Pastor Mark Bove, Calvary Chapel Anaheim FLAG SALUTE: Council Member McCracken PROCLAMATIONS AND DECLARATIONS: Recognizing long term City of Anaheim employees on their retirement. A recognition to be presented at a later date was a declaration recognizing Mars Office Services on its 40th anniversary. At 5:20 P.M., Mayor Daly recessed the City Council meeting until after the Redevelopment Agency meeting. Mayor Daly reconvened the City Council meeting at 5:25 P.M. 5:00 P.M. Continued Joint Public Hearinq: Executive Director of Community Development, Elisa Stipkovich, said that the property was a 6,700 square foot remnant parcel that the Agency had acquired from the railroad, which was near the property that was occupied by MCP Foods. The Agency had been working with them to sell the small remnant parcel in exchange for them doing $160,000 worth of landscaping on the entire site and she recommended that the property, which was valued at $94,500 be sold to them for the consideration of them installing the landscaping improvements. Mayor Daly opened the public hearing and hearing no testimony, closed the public hearing. Mayor Daly offered Resolution No. 2002R-235 for adoption. RESOLUTION NO. 2002R-235 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Disposition and Development Agreement by and between the Anaheim Redevelopment Agency and MCP Foods regarding certain property at the southwest corner of Broadway and Atchison Street in the City of Anaheim and making certain environmental and other findings in connection therewith. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 3 Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. ADDITIONS/DELETIONS TO THE AGENDA: City Clerk, Sheryll Schroeder, announced that Item A23A was an urgency matter, which needed to be added to the agenda. Mayor Daly moved, seconded by Council Member Feldhaus, to determine that the issue arose after the preparation of the agenda and that the action was needed before the next Council meeting to add A23A to the agenda. PUBLIC COMMENTS: Reade said he was offering a $5,000 reward for new information leading to the arrest and conviction of the person(s) responsible for the hate crime against him at his home. Esther Wallace thanked Council Members on behalf of West Anaheim Neighborhood Development group and noted that crime was down in west Anaheim and the area was becoming a nice neighborhood again. She said that west Anaheim was looking forward to the new skate center and library. Dane Libart stated that he lived in the Anaheim Colony Historic District and in a Mills Act home. He asked Council to approve Item A18, which was the residential rehabilitation program and was another step in creating that Anaheim district. Barbara Gonzalez said she was a resident of the Anaheim Colony Historic District and that she appreciated the Council's suppod of the Historic District and she said she thought that all of the City had benefited from restoring and preserving the cultural heritage. Alma Ramirez spoke about terrorism and said that those that had committed acts of hate and violence should be exposed. Pat Kotter noted that there were still several campaign signs up following the election and asked that they be taken down and she thanked the Council. Mayor Daly said that if the signs were on the public right-of-way or public property or touching public property, the City may remove the signs and bill the candidates. 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 - A23A: 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. Item A6 denied and Council Member Kring voted no; Council Member Tait abstained on Item AS. Item A18 acted upon separately. Mayor Daly offered Resolutions Nos. 2002R-236 through 2002R-239 and Ordinance No. 5843 for adoption. Motion carried unanimously. 118 178 117 173 105 160 160 160 123 ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 4 Al. Reject certain claims filed against the City. A2. Receive and file a notice regarding two water wells pursuant to Health and Safety Code Section 116455; the Investment Portfolio Report of October 2002; the Notice of Filing submitted by Southern California Edison Company, Docket No. ER03-103-000; minutes of the Deferred Compensation Committee meeting held July 10, 2002; minutes of the Golf Advisory Commission meeting held September 26, 2002; and minutes of the Public Library Board meeting held October 14, 2002. A3. Authorize the Purchasing Agent to issue a purchase order to Marina Landscape, Inc., in an amount not to exceed $35,000, for landscaping service at the Convention Center in accordance with Bid #6206. A4. Accept the Iow bid of Mitsubishi Electric & Electronics USA, Inc., in the amount of $58,995 (including tax), for the purchase and installation of an escalator deflection skirt for sixteen escalators located at the Convention Center in accordance with Bid #6322. A5. Authorize the issuance of a change order to Synchronex for an increase in the number of controllers, in an amount not to exceed 45 controllers, and for controller cabinets, in an amount not to exceed 25 controller cabinets, and increase the not to exceed amount by $58,100 (plus tax), per year, for the first and second year period for Public Works, Traffic Engineering in accordance with Bid #6208. A6. Approve the agreement with Electronic Data Systems for the support and maintenance of the City's information services, authorize the Finance Director to execute all service enhancement requests and amend the Finance Department's budget by increasing expenditure and revenue appropriations by $582,938 (Continued from the Council meetings of September 10, 2002; Item A14, September 24, 2002; Item A12; October 1, 2002, Item A9; and October 15, 2002, Item Al0). Council Member Feldhaus noted that there had been a lot of continuations and dialogues that had taken place over the past couple of months and he said he guessed from the input and the data received from two different sources, plus the information that the Finance Director had given Council, he was dubious about whether or not he wanted to approve a contract with EDS. There were still a lot of problems tracing and tracking EDS, he noted. He said he wanted to know that staff had diligently recommended EDS to Council and he asked to know the reasoning that staff was willing to go ahead with the original recommendation. Finance Director, William Sweeney, responded that he agreed with Council Member Feldhaus' comments regarding the uncertainty of current circumstances of Electronic Data Systems, which was the proposed firm. He said that enough time had passed that it may be worthwhile re- biding the item with a goal of obtaining a lower cost than the cost that was obtained in this bid process. He noted that the bid process was handled in an exemplary fashion and that staff had done a wonderful job. Unfortunately, EDS had encountered difficulties and there were some serious concerns, he explained, but it also presented the opportunity to go out for another bid process. He explained that there may be some gain in doing another round of bids and saving the tax payers additional money. Council Member McCracken asked what it would cost the City and if it would be a situation where Council would still be in a dubious situation six months from now. She asked what the ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 5 cost would be for the process over a period of months and if all of the companies were informed of the services that they would provide the City. Council Member Feldhaus said he thought that the cost would be negligible compared to millions of dollars that it could cost the City. Finance Director Sweeny explained that the action before Council was a staff recommendation to award a three-year contract to Electronic Data Systems Corporation. This was a culmination of a process that began in January of 2002 with a formation of a selection committee to develop a very comprehensive criteria. He informed Council that hundreds upon hundreds of staff hours were part of it and over a great many months, staff had followed the Council policy with respect to solicitation of proposals relating to data processing and it was heavily advertised both locally and on the Internet. He noted that the service was privatized by the City in 1997. The City had a five-year contract with a company called SCT, which was subsequently acquired by a larger company called Affiliated Computer Systems, or ACS, he explained. Affiliated Computer Systems contract expired in October 2002 and had been delayed since the September time frame, he said. Staff believed that they had preformed due diligence and had looked into all of the proposers' qualifications and were still comfortable despite the movement of the equity price. He said that EDS was qualified and fully capable of performing the work required by the City and were, by a sizeable distance, the lowest cost proposed, even though the cost was not the determining factor in the contract. In respect to the question about delay, he said if the City went out to re-bid, it could be done if that was the desire of the Council. He said he could not tell Council how much it would cost and it would primarily involve in house staff hours, advertising and those sorts of things. A more important thing to Mr. Sweeney was that they did not want to start new projects with a vendor when they may or may not be here, he said. He said he was sure there were employees of ACS that were interested in knowing whether they were going to have a position. He explained to Councilwoman McCraken, that in direct response the questions about cost, he did not have them. Council Member Kring said that since this was a bid and all the players knew what the bids were, it seemed if staff re-bid it, the other players would know what their bid was. Council Member Feldhaus said read the November 4th Business Week, where a CEO said he was going to cut as many as 5,500 jobs and ship at least 1,500 others overseas, sell off $500 million in nonrecurring assets and trim $75 million from it's overhead. Their biggest customer, General Motors, had declined 22% in the third quarter, he added, and noted they were not adding new businesses or replacing those, and he said he felt shaky about that. He said it would be an opportunity for the City to go out for another bid, and as Mrs. Kring had said, everyone knew the what the bids were. Council Member Tait said he agreed with Council Member Feldhaus and when the competition took place in January, there was a request for proposal and he said he would have voted for EDS at that time. Unfortunately, he noted, there had been negative publicity in the stock price that had dropped 80% since then, and he said he thought for the City to change from its existing carrier to a new firm that Wall Street was questioning, seemed a little risky. He said he understood the questions of fairness, but the bottom line was that Council had to look after the interest of the taxpayer and the handling of the entire data processing for the City for the next three to five years. He said he felt it was not a good time to switch firms. City Manager Morgan said if the Council was not comfortable in moving forward, there were a couple of options. He said Council could defer the item and staff could comeback with a ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 6 recommendation per phase and return with the same process in the next 60-days or start all over again. He said he thought staff would like the opportunity to regroup and understand which course of action would make sense. He added that it could be one of those two choices. Mayor Daly said it sounded that under either situation there would be another bid process at some time. City Manager Morgan said he thought that under the first process it would be a matter of demonstrating Electronic Data Systems fiscal stability over the next couple of years if their proposal could remain live for the next 60-days. In that short period of time staff had to start the whole process over again and would probably be back in six months. City Manager Morgan noted that the action to be taken could simply be to reject the proposal. Council Member Kring said it seemed to her that since three Council Members were not going to be here in a couple of weeks, that going out in six-months seemed to be an awful long time, when the new Council should be up to speed in a relatively short period of time. She said she thought that Council should go for the 60-days and then see what happened within that time. City Manager Morgan said he was suggesting that if the Council was not comfortable, they could vote to reject the proposal at this time. Staff will evaluate one of two courses of action and one would be to comeback within about a 60-day time frame, he noted. If EDS was not able to demonstrate the fiscal stability that Council wanted to see, staff would then go to alternative B, which would be to start the whole process over again, which would probably take six months, he explained. He said he thought his recommendation was based on what he had heard that Council would simply reject the proposal at this time. Council Member Feldhaus moved, seconded by Council Member Tait, to reject the proposal and have it brought back at the discretion of the City Manager. Motion carried unanimously. Council Member Kring later changed her vote to no. Mayor Daly noted that staff had done an excellent job on the very complicated, challenging subject and Council respected all the work that had been done and the process that had taken place. He said the item would be left in the hands of the City Manager and a recommendation would then be brought back or a process to move forward on the subject. 169 Council Member Kring said her vote was begrudged because she thought that it was a good process and that EDS deserved the contract and she changed her vote to no. A7. Award the contract to the lowest responsible bidder, Nativ Engineering, Inc., in the amount of $499,377.95, for the Lincoln Avenue Median Island Improvement and Beautification, Phase IV, from Beach Boulevard to Knott Avenue, and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 121 A8. Approve the Stipulation for Entry of Judgment in Condemnation and Final Order of Condemnation for the property located at 5700 East La Palma Avenue and authorize the settlement payment, in the amounts of $290,000, to Atlantic Richfield Company and $159,000 to Baku's Arco AM/PM Mini Market. Council Member Tait abstained on Item A8. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 7 123 158 158 113 123 113 174 153 161 A9. Approve and authorize the City Manager to execute a short-term rental agreement with Los Angeles Engineering, Inc., in the amount of $833 per month, for rental of the vacant property located on the east side of Manchester Avenue, south of Lincoln Avenue. Al0. Approve the Agreement for Acquisition of Real Property with Florence Elizabeth Mendoza, in the amount of $10,000, for property located at 1778 South Strathmore Place and approve the Grant Deed and Lot Line Adjustment Plant No. 529 for said property. All. Approve the Agreement for Acquisition of Real Property with Gary Dean Hell, Laura Lee Hell, Stephen R. McLain and Magda A. McLain for the purchase of real property located at 837 South East Street and authorize the acquisition payment of $950,000. RESOLUTION NO. 2002R-236 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. 10569). A12. RESOLUTION NO. 2002R-237 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 Nos. 10570, 10571 and 10572). A13. RESOLUTION NO. 2002R-238 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving an amended records retention schedule for the Public Utilities Department and rescinding Resolution No. 2000R-62. A14. Approve the attorney services agreement with Bannon, Green, Frank & Terzian to provide legal services on an as-needed basis from time to time. A15. RESOLUTION NO. 2002R-239 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (City Treasurer's Office). A16. Accept a grant from the California State Library, in the amount of $7,095, for tuition reimbursement for Library Division staff members and increase revenue and expenses by $7,095. A17. Authorize the Human Resources Director to execute a Second Amendment to Agreement with sixteen firms to extend the term of the vendor agreements to December 31,2003 for the acquisition of labor and services for temporary personnel. A18. Approve revisions to the Guidelines for the Residential Rehabilitation Loan and Rebate Programs in accordance with the Residential Rehabilitation Loan Program and Historic Housing Preservation Rebate guidelines. Mayor Daly noted that a rebate of up to $5,000 could be applied toward certain improvements to the home. The guidelines required that the home must have been constructed prior to 1949 and he asked if there were any federal or state requirement that 1949 be used. Director Stipkovich said that 1949 was a date that had been selected locally and was a current City guideline, in terms of the Colony Historic Preservation District, and how homes were ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 8 designated. She said that under the block grant, it would not be eligible for just any home because Community Development was doing it under a very specific category, which was historic preservation. Mayor Daly asked that beyond the age of the home, were there any other geographic requirements and Director Stipkovich responded that there was a priority in terms of the applications as they came in and those on the 1,100 list of qualified local Colony homes and Citywide. She said that a lot of the homes of that age were built on the outskirts of the City and older farmhouses and things that would technically qualify. Mayor Daly said that the way the program was set up was that if a historic home in Anaheim or in Peralta Hills, areas outside of the Colony Historic District, would be eligible and would be a lower priority in terms of the rebate program. The Colony District received first priority, he noted, and he asked what it would take to extend the program into the early 1950's and what type of process would be recommended. Director Stipkovich recommended going back to the consultants and that she would need to look into guidelines and further analysis and Community Development would make another recommendation to modify it. Mayor Daly asked if this was a self-funded program and he noted that the maximum contribution toward any property was $5,000 and he asked if there was a loan on top of that. Director Stipkovich said that there were two programs, one was a loan program and there was s rebate program, which was a grant and required matching funds. Mayor Daly asked if the program had to be approved in the annual budget process and Director Stipkovich said it did. Mayor Daly asked if Council wanted to pursue, at a future date, the types of modifications such as expanded eligibility and she said they could. Mayor moved, seconded by Council Member Kring, to approve Item A18 as recommended. Motion carried unanimously. 123 A19. Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Service Agreement with Daniel E. Clark, AIA, NCARB to add funds and extend the term of the agreement for planning and architectural review and design services for Community Development projects. 123 A20. Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Service Agreement with Adler Public Affairs, Inc. to extend the term of the agreement to November 30, 2004 for continued services in developing a comprehensive relations program targeting specific industry sectors. 123 A21. Approve and authorize the Public Utilities General Manager to execute an agreement with Nobel Systems, Inc. to provide professional engineering services to the Public Utilities Department related to the City's Geographical Information System. 179 A22. ORDINANCE NO. 5843 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2001-00051, located at 1025-1109 East Lincoln Avenue) (Introduced at the Council meeting of November 5, 2002, Item A9). 114 160 ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 9 A23. Approve minutes of the adjourned regular Council meetings held October 29, 2002 and November 5, 2002. A23A. Waive Council Policy 306 and authorize the Purchasing Agent to issue an emergency purchase order in an amount not to exceed $56,125 for the replacement/repair of a bus shelter located at 1111 S. Harbor Boulevard (north of Ball Road). END OF CONSENT CALENDAR 105 A24. Council Council Council Appoint a citizen to serve on the Redevelopment and Housing Commission for a term to expire June 30, 2003 (David Romero's term). Member Kring nominated James Bandy. Member Feldhaus nominated Steve Roscoe Member McCracken nominated Lee Howard. Mayor Daly moved, seconded by Council Member Feldhaus, to close nominations. Motion carried unanimously. Roll call vote on James Bandy: Ayes - 1, Council Member Kring. Noes - 0. Abstain - 4, Mayor Daly and Council Members McCracken, Feldhaus and Tait. Roll call vote on Steve Roscoe: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes - 0. Abstain - 0. Roll call vote on Lee Howard: Ayes - 1, Council Member McCracken. Noes - 0. Abstain - 4, Mayor Daly and Council Members Kring, Feldhaus and Tait. Council unanimously appointed Steve Roscoe to the Redevelopment and Housing Commission, term to expire June 30, 2003. 160 A25. Maintain the existing policy of providing Anaheim businesses a one percent discount on their bid price when determining the lowest responsive and responsible bidder. Council Member Feldhaus noted that he had asked that the item be agendized to give extra consideration to Anaheim businesses in the bidding process, as well as for those City departments who had budgeted amounts of money and create an awareness to those people responsible within the different departments that where they could, shop Anaheim businesses. He said he proposed that the City consider giving a two percent preference to Anaheim businesses because there had been some feedback, both from the Chamber of Commerce and other businesses. He said he had met with Finance Director Sweeney and Purchasing Agent Ayuso and they had agreed that there were some possibilities that could be used for a better system for advising to the different businesses in the City and how they could get on bidder lists, possibly even using the electric bills to notify them. He said that the City was contracting with the Chamber of Commerce at $75,000 per year to assist in promoting businesses and ask people to buy in the City and then when purchasing something under the $20,000 or $5,000 limit, it was forgotten that there were Anaheim businesses and that there should be an attempt ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 10 to patronize those businesses first. He explained that there was some concern expressed that the City could possibly loose one percent of the sales tax by raising the incentive to two percent, and there was also some anxiety that the other businesses would not feel like bidding if they thought that Anaheim businesses had a two percent preference, they might as well not bid. He said that even if a bidder received two percent, it would amount to something like a $1,400 differential in most of the businesses that came in and when Council was asked to waive Council Policy 306. There was a huge disparity in some of those things and he said he felt strongly that more consideration should be given to Anaheim businesses and that they should not be bypassed and that Council Policy 306 be reviewed for changes. Mayor Daly said that the current situation allowed a break of one percent for Anaheim based businesses for procurements or other contracting. City Manager Morgan said that was correct, with the exception of Public Works projects and professional services. Mayor Daly stated that Council Member Feldhaus' proposal to raise the Anaheim based business rate to two percent was supported by the Chamber of Commerce. He asked if there had been any research done that an Anaheim business had received a contract from the City because of the one percent adjustment and was there any evidence that if it was changed to two percent, that it would have made a difference in either case; the one percent or two percent. Finance Director Sweeney said with the two percent case, he had found two instances where, if it were a two percent as opposed to one percent, two more bids would have gone to Anaheim based businesses and that was out of about 200 bids. Mayor Daly asked what the products or items were that were purchased and Director Sweeney said that in order for it to make a real difference, the bids were substantially higher than two percent. If there was a two percent policy, as opposed to one percent, two additional bids would have been awarded to Anaheim based businesses. Purchasing Agent, Carol Ayuso, noted that there was only one time when the one percent tipped the scale on a formal bid which was actually awarded because of a one percent in the last three years. She looked at fiscal year 2000/01 and 2001/02 as well as year to date and out of 200 formal bids brought to Council, there were only two that fell within the one to two percent range where two additional Anaheim businesses would have been awarded. The majority, she said, over 50 percent of the unsuccessful bids received from Anaheim bidders, were in the range of 20 to 100 percent higher than the Iow bid, she informed, and ranged all the way from five to 200 or 300 percent over those 200 and 50 percent of those fell between 20 to 100 percent high, she explained. She said she did not believe that raising the premium to two percent would achieve the objective. She said she agreed with the objective and she said she thought staff could be more effective in enhancing the vendor outreach and encouraging more Anaheim bidders to bid. Mayor Daly asked if there were cases in the last couple of years where Anaheim based companies were the Iow bid and received the award of the contract. Purchasing Agent Ayuso said that there were and the percentage of Anaheim businesses winning correlated closely with the percentages of businesses that were registered and the percentage of businesses that were solicited. In the purchasing source files, there were over 1,000 companies locally that had requested to be placed on the bid list and she had found that ten percent of those were Anaheim businesses and the rest were in surrounding areas and in the formal bid solicitations, ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER '19, 2002 PAGE 11 11 percent of those went to Anaheim businesses and 11 percent that had come back to purchasing, came from Anaheim businesses and 12 percent of those awards went to Anaheim businesses. Council Member Kring said a project she worked on in Leadership Anaheim was where they tried to teach Anaheim businesses how to get on the different bid lists. She said it seemed that instead of raising it to two percent, maybe the idea was to reach out to more businesses and let them know what the process was. She noted that people had told her that businesses frequently did not know had to get on the bid list. She referred to the recent world series banners. Council Member McCracken asked for clarification, noting she had received a memo regarding the world series banner that it did go out to bid. Purchasing Agent Ayuso said that the world series banner had gone out to bid. She said that the timing on it was very short and four informal bids had been received and were under the Council limit. She said she believed that the banner price was $6,000 and was not a Council action and was awarded to a Placentia business because they were the Iow bid and had the artwork to produce the banners in a two-day time frame, as opposed to needing to supply graphics and have someone produce them in such a short turn around time. Council Member McCracken said that the San Francisco ordinance had given preferences to businesses that were run by minorities and women. She said that it was shown in the report that if this were to be changed to two percent, it had to be supported by findings of the Council based on facts showing that businesses in Anaheim were at a competitive disadvantage with businesses in other areas, due to higher costs of doing business, at least part of which higher costs were caused by the City itself. She said she had a hard time saying that the City, who had a utility company that gave a tremendous advantage to Anaheim businesses, would cause a disadvantage to businesses. She asked how Council could say that they were causing a competitive disadvantage to businesses to Anaheim and the one percent given had been the one percent sales tax and it had been used as a way to return City money to the entities. She said she supported the outreach and getting more Anaheim businesses involved in submitting bids and being part of the whole cycle and there needed to be more of a study and the City needed to prove that the businesses were at a competitive disadvantage because of what the City did. Council Member Feldhaus said that in his opinion, this would provide a valid public purpose by attracting more business to the City. He said that the City needed to send a message to Anaheim businesses and businesses that were locating outside of the City, not taking into consideration the Anaheim Advantage and all of the advantages they had through the uility system. He said it was a matter of reaching out and letting businesses know that they were appreciated and that the City wanted them to bid. Council Member McCracken said there was a second finding that the Council had to show that based on the facts, the public interest was served by encouraging businesses to locate and remain in Anaheim. Both conditions had to be answered, she said, that the City had created a competitive disadvantage and that it was in the public interest to encourage businesses to relocate and remain in the City. She noted that there were dozens of cities that gave a one percent advantage to businesses in their community. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 12 Council Member Kring said she could not imagine a company moving here on the basis of a possibility of getting one or two percent because it was a competitive bid. Council Member Feldhaus requested that the City have some sort of a policy with staff that had discretionary purchasing within their budgeted dollars that they should be required to at least shop two Anaheim businesses to make the purchase. He said that there had be situations where Council Policy 306 had been waived because they had worked with the vendor in the past and they had a good performance record. He said that was bypassing someone else that might be in the wings and wanting to be included. It had been agreed to by the Finance Director and Purchasing Agent that the outreach program could be better, he said. He noted that the differential to the City, at the maximum worst scenario, could be $300,000 per year, and that number could never be reached. Council Member Tait said that giving a two percent discount to Anaheim bidders meant that the taxpayers would pay up to two percent more for the services. He said that it was interesting that ten percent of the award of the bids went to Anaheim businesses and also ten percent of the bidders were Anaheim businesses. It seemed clear, he said, that a greater percentage of Anaheim bidders, which cost effectively could be done through an outreach program at not a lot of cost to the taxpayers. He suggested the Chamber could be brought in on an outreach and he said to shoot for 20 to 30 percent of the bidders and then 20 or 30 percent of contract awards would be for Anaheim businesses. Mayor Daly said that this was a worthy goal to ensure that Anaheim-based businesses had the best possible shot at doing business with the City, which was a corporation that bought many products and services. He said that absent more details and more clear examples, there was not a level playing field and that Anaheim businesses did not have a more than decent shot at obtaining City business, especially with the existing one percent bonus program. He said he believed it was the recommendation of staff to keep the existing program in place and that made sense. He said it could be the topic of future discussion and there may be some ways to get more Anaheim businesses involved. City Manager Morgan stated that staff would develop ideas to strengthen the outreach program. Council Member Kring suggested working with the Chamber, Disneyland and maybe the other vendors in town and it should be approached as an outreach to Anaheim-based businesses. 179 Items B1 throuqh B3 From Zoninq Administrator Meetinq of October 31, 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 NOVEMBER 21, 2002: B1. WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 2002-04598 CATEGORICALLY EXEMPT - CLASS 3: OWNER: Miguel N. Perez and Francisco Perez 1629 E. Crestlane Avenue, Anaheim, CA 92805 LOCATION: 1629 East Crestlane Avenue. Property is 0.15-acre having a frontage of 60 feet on the north side of East Crestlane Avenue, having a maximum depth of 105 feet and is located 136 feet west of the centerline of Baxter Street. 179 ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 13 To permit and retain an existing 55-foot high ground-mounted amateur-operated radio transmitting tower and antenna in conjunction with a single-family residence in the RS- 7200 (Residential, Single-Family) Zone with waivers of maximum structural height and minimum distance from a neighboring residential structure (55 feet required; 35 feet proposed). ACTION TAKEN BY THE ZONING ADMINISTRATOR: Waiver of Code Requirement approved. Conditional Use Permit No. 2002-04598 approved (ZA2002-38). In response to Mayor Daly, Director Fick said that Planning staff had concerns about the variances that were requested because of the height impacts on the neighborhood. Initial concerns of staff were mitigated largely by the Zoning Administrator, he said, since she required, in dealing with the relocation of the antenna, consolidation of some panels and required that it be dropped down to a height that was conforming with the height limitation of the zone when it was not in use. Mayor Daly asked if it satisfied the neighbors that were opposed to it and Zoning Administrator Santalahti said that the interference was a big problem for them. Mayor Daly said that the antennas created an unsightly scene according to the neighbors and the Zoning Administrator said that the neighbors were not happy with the looks and there had been a different type of antenna that was located in front of the house and staff had not been aware of it initially and that one was conditioned to be relocated to the rear of the house, close to or connected to the other antenna. She said that in a six-month period of time, Planning staff would prepare a status report. Mayor Daly noted that this was a six-stow communications tower in a single-family neighborhood and it would be raised or lowered with some sort of vague guidelines and that did not seem fair to the neighbors and said he felt that the issue was not resolved. Director Fick stated that a formal report would be back in a six-month time period and he said that there would be no constraints for the neighbors and at any point in time the item could be rescheduled for reconsideration. B2. VARIANCE NO. 2002-04538 CATEGORICALLY EXEMPT - CLASS 1: OWNER: Alan T. Schwartz, 20515 Via Tenorio Yorba Linda, CA 92887AGENT: Jimmy T. Nguyen, P.O. Box 15751 Newport Beach, CA 92659 LOCATION: 504 South Brookhurst Street. Property is 0.79 acre property having a frontage of 125 ft. on the east side of Brookhurst Street, a maximum depth of 275 ft. and is located 492 ft. north of the centerline of Orange Avenue. Waiver of maximum fence height to waive fencing and screening requirements for a new parking lot for an existing banquet facility in the CL (Commercial, Limited) Zone. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Variance No. 2002-04538 approved (ZA2002-39). 179 179 179 ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 14 REPORT AND RECOMMENDATION: B3. SPECIAL CIRCUMSTANCES WAIVER NO. 2002-00021 CATEGORICALLY EXEMPT - CLASS 11: OWNER: Anaheim Gateway LLC, 120 N. Robertson Boulevard Los Angeles, CA 90048 AGENT: Patrick O'Daly, STDR Architects, 3190-K Airport Loop Drive Costa Mesa, CA 92626 LOCATION: 1430 North Lemon Street: Property is 26.34-acres located at the southeast corner of Lemon Street and Durst Street (24-Hour Fitness). Request for a waiver of Special Event Permit requirements to permit a temporary trailer and banners in conjunction with a proposed health club (under construction) within a commercial retail center of regional significance in the CL (Commercial Limited) Zone. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Special Circumstances Waiver No. 2002-00021 approved (SCW2002-00021). Items B4 throuRh B6 From Planninq Commission Meeting of November 4, 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 NOVEMBER 26, 2002: B4. WAIVER OF CODE REQUIREMENTS CONDITIONAL USE PERMIT NO. 2002-04616 CATEGORICALLY EXEMPT - CLASS 1: OWNER: James A Stovall, 2815 Stone Pine Road, Orange, CA 92667 AGENT: Irv Pickler, 2377 West Mall Avenue, Anaheim, CA 92801 LOCATION: 1178-1198 West Katella Avenue. Property is approximately 1 acre having a frontage of 200 feet on the south side of Katella Avenue and located 218 feet west of the centerline of Casa Vista Street (Taco Mi Pueblo). To permit the expansion of a restaurant within a legal nonconforming retail center with waiver of minimum number of required parking spaces. ACTION TAKEN BY THE PLANNING COMMISSION: Wavier of Code Requirement approved (7 yes votes). Conditional Use Permit No. 2002-04616 granted (PC2002-165). BS. VARIANCE NO. 2002-04535 CATEGORICALLY EXEMPT- CLASS 3: OWNER: Carolyn Wiljer, 203 North Charlene Terrace Anaheim, CA 92606 LOCATION: 203 North Charlene Terrace. Property is approximately 0.13-acre located at the northwest corner of Underhill Avenue and Charlene Terrace. Request for waivers of a) maximum fence height within required front yard setback area and (b) maximum fence height within required side yard setback area to retain and permit a 6-foot high block wall in conjunction with an existing single-family residence. ACTION TAKEN BY THE PLANNING COMMISSION: Granted Variance No. 2002-04535 approving waiver (a) and approving waiver (b), in part (PC2002-166) (7 yes votes). 179 ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 15 B6. WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 2002-04618 CATEGORICALLY EXEMPT - CLASS 1: OWNER: Amaral Julia, P.O. Box 1450, Nevada City, CA 95959 AGENT: Maria Lopez, El Vaquero Restaurant, 823 West Irving Place, Anaheim, CA 92805 LOCATION: 1168 South State Colleqe Boulevard. Property is approximately 1.3 acres located at the southeast corner of Almont Avenue and State College Boulevard (El Vaquero Family Restaurant). To permit and retain a public dance hall with a cover charge and on-premises sales and consumption of alcoholic beverages in conjunction with an existing restaurant with waiver of minimum number of parking spaces. ACTION TAKEN BY THE PLANNING COMMISSION: Waiver of Code Requirement denied (6 yes votes, Commission Romero absent). Conditional Use Permit No. 2002-04618 denied (PC2002-167). 6:00 P.M. PUBLIC HEARINGS: C3. 179 CONTINUED PUBLIC HEARING: GENERAL PLAN AMENDMENT NO. 2001-00396 RECLASSIFICATION NO. 2001-00060 OWNERS: City of Anaheim, Community Development Department, Attn: Elisa Stipkovich, 201 South Anaheim Boulevard Anaheim, CA 92805 Dorothy Brunson Trust, 2455 Tuckahoe Terrace Watsonville, CA 95076 Danros Inc., 511 Helberta Avenue, Redondo Beach, CA 90772 Andres Fernandez, 3123 West Lincoln Avenue, Anaheim, CA 92801 Thomas Tislow, 17319 Alexandra Lane, Cerritos, CA 90703 100 South Beach Boulevard. Area 1 is approximately 0.58-acre located at the southeast corner of Beach Boulevard and Lincoln Avenue. 120-320 South Beach Boulevard and 2970 West Lincoln Avenue. Area 2 is located south and east of the southeast corner of Beach Boulevard and Lincoln Avenue located 238 feet south of the centerline of Lincoln Avenue. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended adoption of Exhibit A of General Plan Amendment No. 2001-00396 (PC2002-60) (7 yes votes). Reclassification No. 2001-00060 granted (PC2002-61) (7 yes votes). Recommended adoption of Exhibit A of General Plan Amendment No. 2001-00399 (PC2002-62) (6 yes votes, Commissioner Boydstun voted no). (Continued from the Council meeting of July 23, 2002, Item C5). Mayor Daly asked for public input. No public input received. Request for the public hearing made by the staff was withdrawn. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 16 176 C1. Continued public hearing to consider the abandonment of a portion of Atchison Street, south of East Broadway and a portion of public alley right-of-way located between Atchison Street and Kroeger Street. At their meeting held September 10, 2002, Item A8, the Anaheim City Council adopted Resolution No. 2002R-200 declaring its intention to vacate certain public streets, highways and service easements (Abandonment No. ABA2001-00044, a portion of Atchison Street extending southerly from east Broadway and a portion of a public alley located between Atchison Street and Kroeger Street) (Continued from the adjourned Council meeting of October 29, 2002, Item C1 ). REQUESTED BY: Firmenich INC, 424 South Atchison Street, Anaheim, CA 92805. Public Works Civil Engineer Natalie Meeks presented a staff report and said that portions of street and alley right-of-way were no longer necessary for public use and the property owner owned all of the contingent property. There were two properties owned by the Redevelopment Agency, she said, and Council approved transfer to Firmenich and the owner now owned all continuous property. Mayor Daly opened the public hearing and hearing no testimony, closed the public hearing. Mayor Daly moved, seconded by Council Member Kring, to approve the CEQA Finding of Categorically Exempt, Class 5 and approve the quitclaim of the City's right, title and interest in the abandoned area. Motion carried unanimously. Mayor Daly offered Resolution No. 2002R-240 for adoption. RESOLUTION NO. 2002R-240 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING ABANDONMENT NO. 2001-00044. Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. 176 C2. Continued public hearing to consider the abandonment of a portion of an electrical utility easement located at 5449 East La Palma Avenue At their meeting held September 10, 2002, Item A9, the Anaheim City Council adopted Resolution No. 2002R-201 declaring its intention to vacate certain public streets, highways and service easements (Abandonment No. ABA2002-00055, 5449 East La Palma Avenue) (Continued from the adjourned Council meeting of October 29, 2002, Item C2). REQUESTED BY: LBA Industrial Fund-Canyon, Inc., 4440 Von Karman Avenue, Suite 150, Newport Beach, CA 92660 Public Works Civil Engineer Natalie Meeks presented a staff report and said that the abandonment had been requested to correct an improper legal description that was previously recorded for a utility easement. The existing electrical easements were outside of the recorded easement and Public Works was abandoning the existing easement and the property owner was dedicating an easement at the proper location for the public utilities, she informed. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 17 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 and approve the quitclaim of the City's right, title and interest in the abandoned area to the applicant/owner. Motion carried unanimously. Mayor Daly offered Resolution No. 2002R-241 for adoption. RESOLUTION NO. 2002R-241 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ABANDONMENT NO. 2002-00055. Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. 179 C4. CONTINUED PUBLIC HEARING: CONDITIONAL USE PERMIT NO. 2000-04277 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 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. (Informational item at the Council meeting of July 2, 2002, Item B4. Planning Commission's decision appealed by Agent, De Hua Jr. Continued from the Council meetings of August 6, 2002, Item C4 and September 24, 2002, Item C2). Executive Director of Planning and Community Development, Joel Fick, said that staff had been consistently supportive of the subject use of the property, subject to the applicant complying with the conditions of approval that were previously imposed by the Planning Commission. At the last hearing, there were four outstanding conditions that had not been completed and he reported that all of the conditions had been completed to satisfactory level and as a result, he said that staff recommended reinstatement of the conditional use permit for a two-year period, to expire on November 19, 2004. Mayor Daly opened the public hearing. Jimmy Tong Nguyen said he followed the recommendation of Council and complied with conditions set forth in a short period of time and he asked that Council grant the three-year extension. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 18 Mayor Daly closed the public hearing. In response to Mayor Daly, Director Fick said the recommendation was for a two-year with the only change being a recommended deletion of Condition Number 15 since it was no longer necessary. Mayor Daly moved, seconded by Council Member Kring, to approve the CEQA Finding of Negative Declaration. Mayor Daly offered Resolution No. 2002R-242 for adoption. RESOLUTION NO. 2002R-242 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING CONDITIONAL USE PERMIT NO. 2001-04277. Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. 179 C5. CONDITIONAL USE PERMIT NO. 2002-04584 CATEGORICALLY EXEMPT - CLASS 1: OWNER: Joseph T. Kung, 20866 East Quail Run Drive Diamond Bar, CA 91789 AGENT: Ron Lee, 1105 West Orangethorpe Avenue Fullerton, CA 92833 LOCATION: 5557 East Santa Ana Canyon Road, Suite 101. Property is approximately 5.0 acres located at the northwest corner of Santa Aha Canyon Road and Imperial Highway. Request to permit a computer rental and internet amusement (arcade) business. ACTION TAKEN BY THE PLANNING COMMISSION: Conditional Use Permit No. 2002-04584 granted for one year (PC2002-129) (6 yes votes, Commissioner Koos absent). (Informational item at the Council meeting of October 1, 2002, Item B2. Review of the Planning Commission's decision requested by Council Members Kring and McCracken). Director Fick recounted the action taken by the Planning Commission, which was the approval of the request for a one-year trial period, based on the business owner having a similar establishment in Fullerton that had not experienced major problems and other internet facilities that had conditional use permits in the City and had not been problematic in surrounding neighborhoods. He said that Planning Commission had also felt that the conditions of approval that they imposed, including hours of operation, would help prevent problems from occurring at the site. In addition to the one-year time limitation, conditions imposed by the Planning Commission included hours of operation conditions, from 10:00 A.M. to 10:00 P.M., Sunday through Thursday, and 10:00 A.M. to midnight, Friday and Saturday; maximum of 42 computer stations; minors not allowed without a parent or guardian on school days between 8:00 A.M. and 3:00 P.M. and any day after 9:00 P.M.; video surveillance cameras; a security guard from 6:00 P.M. through closing and a restriction from using the area outside of the rear door facing the residents for a smoking area. In addition, a condition imposed on the shopping center owner in 1998 to replant trees along Santa Ana Canyon Road had still not been fulfilled and Planning Commission again conditioned the replanting within 30-days. He said that the planting of those trees was required whether this conditional use permit would be approved or not. The ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 19 Orange Unified School District and the Principal of Canyon High School had submitted letters in opposition of the Internet business due to the negative affect it would have on the school and he noted that Council had received comments expressing concern from some of the residents during public comments at other Council meetings. He said Planning Department staff continued to have concerns about the application such as the noise, loitering and late night activity and would directly affect the residential neighborhood that was situated directly north of the property. Old Santa Aha Canyon Road, which separated the residents to the north, was a dead-end public street that had caused noise and experienced loitering problems for the residents adjacent to the site over the years. He said staff was concerned about the affect that the facility would have on nearby Canyon High School and the high school campus was approximately 250 feet from the subject property and the campus was 850 feet from particular unit that was proposed for occupation. He said that as a result, staff recommended denial of the conditional use permit application. Mayor Daly asked if the property owner was present and found that he was not. He said it was difficult to proceed since the property owner was not present and a lot of the conditions on the property had not been complied with, such as the tree planting, pertained to the property owner and not the proposed tenant. Mayor Daly asked if the Council could proceed since the owner was not present. Senior Assistant City Attorney Larry Newberry said that if the public hearing was properly noticed, the Council could proceed without the property owner being present. Director Fick pointed out that the property owner had signed an authorized letter authorizing the applicant to represent this particular conditional use permit. Mayor Daly said if the applicant, in this case the proposed business tenant, made representations about tree planting or parking or signage or anything under the scope of the conditional use permit, the property owner would need to adhere to that. Director Fick stated that any conditions imposed by the Council would be binding with this application. Senior Assistant City Attorney Newberry said he had not seen the delegation of authority and if the delegation of authority assumed an obligation to install any mitigated measures that might be agreed to by the individual that was present, it would be satisfactory. Council Member Tait said that the property owner had failed to plant trees and that was a requirement of a previous action. Director Fick said it was and was a condition that was associated with the center, in general. The property owner had indicated that he intended to install the trees and staff had discussed that with him, even though that had not yet occurred since 1998. Mr. Lee had been authorized to represent the application. Mayor Daly opened the public hearing. Benjamin No said that he wanted to provide a safe and controlled environment for his customers. He said he realized that the business was a concern in the community and he wanted to improve his City rather than cause any harm. He said he wanted to solve any concerns that the City and the community members had for the business. The first business, which was located in Fullerton, had no problems with customers or any problems with the City of Fullerton or its police department. He said his business was friends with the neighboring stores as well as the community and the parents that came into the store. He said that they tried to provide more than a gaming environment and had installed software such as Microsoft ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 20 Office and the customers had more options than just playing computer games. He said he would be hiring a security guard at peak hours and surveillance cameras would be installed to monitor the store and ensure safety of the clients. A program called Nicometer was installed to monitor the clients' computer doings and to make sure that they were not going into any sites that they should not be going into and it provided a firewall which would not let the customers go to sites that they should not be going into, he explained. Many lights had been installed inside the personal computer store and it was brightly lit and he said it was better for employees so that the customers could be monitored better. A custom built fan had been installed and went into the air circulation vents and the customers would have clean, fresh air, he said, and a strict curfew policy would be enforced where minors under the age of 18 would not be allowed in the store before 3:00 P.M. and after 9:00 P.M. He said that with regard to Canyon High School, if they believed that a minor was at the store during school hours, or after 9:00 P.M., they could either call the store or come to the store in person. The back door would remain closed during business hours and it would not be used for a smoking area as it was before and there would be no loitering around the back door area and it would make it easier for the residents that lived behind the business, he added. Sarah Alevezon said she had met with the owner of the center, Joe Kung, and asked for an opportunity to have the people go to Mr. Kung, since he was not aware of any problems. She said she was aware of one cyber caf6 in Anaheim hills that had serious problems and Mr. Kung was not aware of what it was like to have a business like that in his center. Mayor Daly asked how many existing cyber cafes were in the City and Director Fick said that there were three conditional use permits. Mayor Daly asked if there was a public hearing scheduled on a cyber caf6 in west Anaheim and Director Fick stated that there was a hearing regarding West Lincoln near Magnolia Street scheduled for December 17, 2002. The following spoke in opposition: Joan Coy and said that her husband was a children's' dentist and was right next door to a cyber caf~ and there was trash all over, unsuitable language, cigarette butts everywhere and smoking out in front. She did not want to see this happen in another center, especially with Sylvan Learning Center and a high school so close. Linda Lewis said she was from the Sylvan Learning Center located in Imperial Plaza and she was not far from where the business wanted to locate. She said she was opposed to the cyber caf~ and said it was a business where unsupervised young people hang out and it was an attractive nuisance. It was difficult to find a place to park and she was very concerned about the residents. The students would loiter in the parking lot, she said, and she said that there was trash on the ground at the other location and disrespect and bad language. She added that it was a poor atmosphere to have that type business located so close and she asked Council to follow staff recommendation and deny the request. Mayor Daly asked if Ms. Lewis had communicated her concerns to her landlord, Joe Kung. She stated that she had talked to him about her concerns and he said he was not going to be present at the hearing and he understood that it probably would not go in. Beverly Nehay said she lived in the tract immediately behind the center and the neighborhood had been inundated with traffic problems. She said that there was loitering from another cyber ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 21 cafb. For some reason, Avenida Margarita was considered a street only to get to the shopping center or post office and not to the tract behind it, she noted. It had been a continual problem and when the tract was built, none of that was there and this would be an attractive nuisance. Melissa Smith said she was a Trustee for the Orange Unified School District and a pastor and had worked with junior high and senior high youth for years. She said that her two of her children attended an elementary school that was located next to Canyon High School, which was in close proximity to the cyber cafb. She expressed her opposition to the cyber cafb opening near several schools in the community. She said that students should not be able to have access to material that might be viewed as objectionable by parents not when the school district, community colleges and library services had provided adequate, supervised access to the Internet for educational purposes and provided safeguards for the children. If students did not have resources at home, they may avail themselves to a number of sources, including Canyon High School, El Rancho Charier School or any elementary schools in Orange Unified, she informed and Canyon Hills Library also provided access to the information. This made it all too easy for children to be exposed to excessive violence, explicit sexual content and unsavory material, she said, and many parents may not yet know the potential dangers that were associated with cyber cafes. She asked that Council not place children at risk by upholding the Planning Commission's decision to allow the cyber caf~ to open in the community. Gloria Duncan said she was the principal of Canyon High School and that she was gravely concerned about the Internet cafb being placed in the neighboring community. She said her job as an educator was difficult and that there was a major responsibility to supervise the children. A lot of time was spent interviewing and hiring appropriate people to work at the school and she was concerned about who would be hired to work at the Internet cafb. Her only experience, she said, was at the other Anaheim hills area where young teenagers worked to supervise other teenagers. She said that she was concerned that this was so close to Canyon High School and she asked who would hold the people at the caf~ accountable. She said that she needed to make sure that her children were provided a very safe environment and even though this was only for a year, why wait and see if something happens. She asked how close the other Internet cafes were to schools and were they as close as this one was to Canyon High. Canyon High School was a digital high school and there was a lot of technology for students and she said that the Internet cafb was to attract students and she said she wanted to make sure that the appropriate environment and instruction in computers and technology and she said she was opposed to the cafb and said it was not in the best interest of the students and asked that Council oppose it. Nancy Clark said she was the activities director at Canyon High School and said that this did not meet the needs of the community. She said there were students that worked at a neighboring business by the other cyber caf~ at Imperial Highway and La Palma Avenue and they said that there was cigarette smoking all the time, people loitering in the parking lot and all types of things. Students walk home to the residential area and this was not the type of environment that was needed for the children, she noted. Her student body officers said that there was not a need for this type of environment in the community and a lot of people had computers at home and the Anaheim hills community did not need to attract people from outside of the community. She said what was needed were businesses in the community that provided the needs of the students. She added that parking was also a problem. Mark Pitzer said he agreed with all that were in opposition and said that a point had been raised that parents did not know things that had gone on in other cyber cafes. He said that there was a young man that had frequented the other cyber cafb in Anaheim hills until his parent discovered, ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 22 after speaking to a lot of people about the issues, that there was a lack of supervision and problems with illicit things going on. He said that this had been a parent that had been involved in the schools and community and she was not aware of the situation. Pat Kotter said she agreed with the comments in opposition of the application. She encouraged Council to deny the permit since this was not a good thing for the City and that there should be no cyber cafe in any part of the City. Benjamin No said that he did not have anything that controlled the amount of parking spaces that were available to the customers or neighboring businesses. He said that after closing hours, all the trash was cleaned up from in front of the stores. Peak hours averaged from after school to around 6:00 P.M. and was probably different than Mandarin Taste and parking would be available for Mandarin Taste, he informed. The security guard to be hired would monitor inside and outside of the store at all times. Mayor Daly closed the public hearing. Mayor Daly noted that correspondence and e-mails had been received from Anaheim hills residents in opposition to the proposed cyber caf~ and letters had been received from the Superintendent of the Orange Unified School District and the principal of Canyon High School. He noted that the property owner was not present and there were other tenants of the center that had concerns about parking. Council Member Kring said it seemed as if the parking was a bit of concern and in Garden Grove and elsewhere, there had been tremendous problems with cyber cafes. She said she had not heard of any problems with the stores in Anaheim or Fullerton and it seemed that children should be playing sports and getting exercise. She said that the cyber caf8 that was away from the school and in an establishment where there were multiple places to park and there would not be any interference and she believed that the applicant was well intended with the security guard and did not have control over the parking issues. She noted that the applicant might wish to look at other areas in the City that would better serve the clientele than this particular location. She said that the community would be well served to not have this business in this particular location. Mayor Daly said that since the shopping center owner was not present, it created an odd disconnect as to who would be accountable. He urged everyone to be vigilant on these types of businesses. Council Member McCracken said that she frequented that shopping center and there were signs all around it that said two hours parking. She said she was frustrated with the parking situation and was concerned about the neighborhood behind it and that Mr. Kung should have been present to answer to the Council and community. Council Member Tait said he would not come to the conclusion that all cyber cafes were bad and in this case, there was a landlord that had not complied with conditions from the prior approval of four years ago. He did not know how the Council could go forward and approve another use, especially this one where there were so many conditions such as planting trees that the owner had agreed to and coupled with the parking issue, he said he could not support the use. ANAHEIM CITY COUNCIL ADJOURNED REGULAR MEETING MINUTES NOVEMBER 19, 2002 PAGE 23 Mayor Daly moved, seconded by Council Member McCracken, to deny the CEQA Finding of Categorically Exempt, Class 1. Motion carried unanimously. RESOLUTION NO.: 2002R-243 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DENYING CONDITIONAL USE PERMIT NO. 2002-04584. Roll call vote: Ayes - 5, Mayor Daly and Council Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. Report on Closed Session Actions: None. Council Communications: Council Members congratulated the Police Department for their successful 70 percent clearance rate. Council Member Tait noted it was the last meeting of this Council and stated that it was a pleasure to have served together. Council Member McCracken noted that this Council had been a great working entity and done great things for Anaheim. Council Members McCracken, Kring and Feldhaus wished everyone a happy Thanksgiving. Council Member Feldhaus noted that Casa Garcia restaurant on the corner of Chapman and Harbor Boulevard needed Thanksgiving help since they would be serving 20,000 Thanksgiving dinners. Adjournment: There being no further business to come before the City Council, Mayor Daly adjourned the meeting at 8:08 P.M. Respectfully submitted: Sheryll Schroeder, CMC/AAE City Clerk