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2003/03/04 ANAHEIM, CALIFORNIA - CITY COUNCIL MEETING MARCH 4, 2003 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 March 4,2003 on the exterior door of the Anaheim Council Chambers, announcing the adjournment to 3:30 P.M. due to a lack of quorum. PRESENT: Mayor Curt Pringle, Council Members: Tom Tait, Shirley McCracken, Bob Hernandez and Richard Chavez. STAFF PRESENT: City Manager David Morgan, City Attorney Jack White, City Clerk Sheryl I Schroeder, Public Works Civil Engineer Natalie Meeks and Public Utilities General Manager Marcie Edwards. A copy of the agenda for the meeting of the Anaheim City Council was posted on February 28, 2003 at the City Hall outside bulletin board. Mayor Curt Pringle called the regular meeting to order at 3:39 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. ADDITIONS/DELETIONS TO CLOSED SESSION: None. PUBLIC COMMENTS - CLOSED SESSION ITEMS: None. Mayor Pringle moved to recess to Closed Session, seconded by Council Member McCracken. Motion carried. The Council recessed to Closed Session at 3:40 P.M. 1. 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 Case No. 02-40846-cb (SDNY). 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property: Arrowhead Pond of Anaheim, 2695 East Katella Avenue. Anaheim, California. Agency negotiators: Dave Morgan, Tom Wood, William Sweeney. Negotiating Parties: City of Anaheim, Anaheim Public Improvement Corporation, Covanta Energy Corporation, State Street Bank and Trust Company. Under negotiation: price and terms of lease and sublease; head lease and sublease; and arena management agreement. 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property: 1370 South Sanderson Avenue Agency negotiators: Joel H. Fick Negotiating Parties: City of Anaheim and Robert G. Jones. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 2 Under negotiation: terms of lease. 4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Parkin v. City of Anaheim, United States District Court Case No. SA CV-01-422 DOC (Anx). 5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Vista Media Group, Inc. v. City of Anaheim, et aI., Orange County Superior Court Cases Nos. 814050 and 00CC08157. AFTER RECESS: Mayor Pringle called the regular Council meeting of March 4,2003 to order at 5:14 P.M. and welcomed those in attendance. INVOCATION: Reverend Mary Hibbard, Anaheim United Methodist Church. FLAG SALUTE: Mayor Pro Tern Tait. PROCLAMATIONS AND DECLARATIONS: A Fireman's bell was presented to the city by the Sporn Family and accepted by the Fire Department. Recognitions to be presented at a later date were a proclamation recognizing March 2003 as Colon Cancer Awareness Month and a proclamation recognizing March 18, 2003 as California Space Day. At 5:20 P.M., Mayor Pringle recessed the City Council meeting until after the Redevelopment Agency meeting. At 5:22 P.M., Mayor Pringle reconvened the Anaheim City Council for a joint public hearing with the Anaheim Redevelopment Agency to consider: RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF ANAHEIM approving and authorizing the execution of the Sub-Sublicense/Sub-Sublease Agreement by and between G.D. Heil, Inc. and the Anaheim Redevelopment Agency and making certain findings in connection therewith. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM consenting to the Sub-Sublicense/Sub-Sublease Agreement by and between G.D. Heil, Inc. and the Anaheim Redevelopment Agency and making certain findings in connection therewith. Executive Director of Community Development, Elisa Stipkovich, explained that as required by State law, anytime the Redevelopment Agency disposed of property, it required a hearing by both the Redevelopment Agency and Council. Community Development recommended subleasing a property that the Agency currently subleased ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 3 from a group called Katella Operating Properties and it was the southern California easement property along Anaheim Boulevard, she noted. The proposed sublease was to the developer, G.D. Heil, Inc., and they were an adjacent property owner, she said. It was for a small portion of the property that the Agency was currently subleasing and she said she believed it would be appropriate to accommodate their needs and enhance the property and business that was located adjacent to the property. She recommended that the Agency approve the long-term lease and the initial market rate rent would be $5,000 per month, which was the same amount that the Agency was paying to Katella Operating Properties. Mayor Pringle opened the public hearing and hearing no testimony, closed the public hearing. Council Member McCracken offered Resolution No. 2003R-27 for adoption. RESOLUTION NO. 2003R-27 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM consenting to the Sub-Sublicense/Sub-Sublease Agreement by and between G.D. Heil, Inc. and the Anaheim Redevelopment Agency and making certain findings in connection therewith. Roll call vote: Ayes - 5; Mayor Pringle, Council Members Tait, McCracken, Hernandez and Chavez. Noes - O. Motion carried. At 5:25 P.M., Mayor Pringle recessed the City Council meeting until after the Anaheim Housing Authority meeting. Mayor Pringle reconvened the City Council meeting at 5:28 P.M. ADDITIONSIDELETIONS TO THE AGENDA: City Clerk, Sheryll Schroeder, announced that staff requested that Item A7 be removed from the agenda. PUBLIC COMMENTS: James Robert Reade spoke about his home being broken into and situations with the Police Department and redevelopment. Glenda Flora spoke about Item A 19, board and commission term limits, and said that she was a member of the Anaheim Public Library Board and that she believed it took two terms to understand the complexity of the city and the Library Board and to be a major contributor. If the proposed changes were made, some of the boards would be decimated and she asked Council to vote against term limits for Boards and Commissions. She announced that on March 23, 2003, the Anaheim Public Library was having its annual Author's Luncheon and because of the fiscal crisis in the City, the fund raiser was important to supplement income for the library and the Anaheim Library Foundation. She spoke about the Lincoln Beautification and thanked staff. Carolyn Yellis said she was in support of the proposed term limits for boards and commissions, Item A 19. She said it was important to have new faces and fresh ideas ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 4 and she said she was confident that staff was capable of orientating new commissioners and would bring them up to speed in a timely fashion. She stated she believed that Council would not have a problem filling the positions. She urged Council to vote in support of the proposal. Robert Flores said he was concerned about the safety of children crossing on Western Avenue at Twila Reid Elementary School and submitted a proposal to raise one half of the cost, which he said he believed was $75,000, to install a crossing light at the school. He said that studies had been done in regards to having a light installed there and there was still danger to the children. He said he hoped that the community could work together to find the funds for the light before a student was killed. He added that he was submitting his resume for the boards and commissions and there were many citizens that were willing to serve the community. Mayor Pringle noted that staff would respond regarding the light in Mr. Flores' community. Seferino Garcia said he was in support of the ordinance, Item A 19, regarding term limits for boards and commissions. Judith Saraphini spoke in favor of Item A 19, term limits for boards and commissions, and said that demographics had changed and it was time to bring new ideas forward. She spoke about Item A22, the 30 day occupancy limitation imposed on certain motels, and asked that the ban be lifted because she said she believed that it placed a lot of people on the street in a city that did not have enough affordable housing. Esther Wallace said she was from the West Anaheim Neighborhood Development group and she had gotten the impression that the 30-day restriction would be done away with completely. She read a letter into the record, hard copy available in the City Clerk's Office. Mike Ortiz stated that he worked for a company called Computer Education Institute Vocational Training School and he noted that there were programs and packages for students and they were able to send students to work at the Institute's expense. He offered to send volunteer students to the City to work for free. Pat Kotter encouraged the city to place all items on the agenda of importance, in the newspaper since there were a number of seniors that did not have access to the Internet. She spoke on Item A 19 and said that many people serving on the commissions had done a commendable job and once other volunteers find out the work, effort and time commitment involved, they no longer served and she believed that there needed to be enthusiasm and wisdom. She said that the way the problem could be solved was that at the end of the four year term, Council could decide if they wanted them to continue or not. Council Member Hernandez deferred to City Clerk Schroeder regarding the placement of the agenda in the newspaper. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 5 City Clerk Schroeder explained that the Council agenda was printed on the Friday prior to the Tuesday Council meeting. All of the local newspapers receive the agenda and related documentation, she said. MOTION: Council Member Hernandez 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 - A18: On motion by Council Member Hernandez, 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 A7 was removed from the agenda and Council Member Tait abstained on Item A8. Council Member Hernandez offered Resolutions Nos. 2003R-28 through 2003R-36 for adoption. Roll call vote: Ayes - 5; Mayor Pringle, Council Members Tait, McCracken, Chavez and Hernandez. Noes - O. Motion carried. 118 A 1. Reject certain claims filed against the City. 160 A2. Accept the bid from West-Lite Supply Company, Inc., in the amount of $60,900, plus tax, for 174 light fixtures for the Convention Center in accordance with Bid #6328A. 167 A3. Award the contract to the lowest responsible bidder, TDS Engineering, Inc., in the amount of $19,873, for street lights and signs restoration in the Anaheim Resort Area ™ and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 123 A4. Approve Amendment NO.5 to Cooperative Agreement No. C-95-965 with the Orange County Transportation Authority (OCT A) with respect to the delivery of projects funded through OCTA in the Combined Transportation Funding Program. 176 A6. A5. Approve the Acquisition Agreement with Palace Partners, in the amount of $1,295,000, for the purchase of real property located at 1015 and 1019 East Vermont Avenue for the purpose of locating expanded electrical facilities within the City. RESOLUTION NO. 2003R-28 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting a certain deed conveying to the City of Anaheim certain real property or interests therein (City Deed No. 10585). RESOLUTION NO. 2003R-29 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and service easements (Abandonment Nos. ABA2002-00060, 00061 and 00062). 158 Public hearing set for April 1, 2003. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 6 123 A7. Approve the Electrical Utility Agreement with CES Electrical, Inc. for electrical services, on a non-exclusive basis, to persons at the Convention Center who require such services in connection with events. Removed from the agenda as requested by staff. 123 A8. Approve a loan agreement with the United States Department of Housing and Urban Development for a Section 108 loan, in the amount of $10,000,000, for funding assistance related to development of the Anaheim Westgate Center on former landfill properties at the northeast corner of Beach Boulevard and Lincoln Avenue and approve an increase of appropriations and expenditures, in the amount of $10,000,000 in Fund 237. Council Member Tait declared a potential conflict of interest and abstained on Item A8. 106 A9. Decline a request for annual funding for the Miss Anaheim Program, in the amount of $5,000. 174 A10. RESOLUTION NO. 2003R-30 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the application for grant funds for RiverlTributary Parkways under the California Clean Water, Clean Air, Safe Neighborhoods, and Coastal Protection Bond Act of 2002 for the Oak Canyon Nature Center Project. 113 A11. RESOLUTION NO. 2003R-31 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the destruction of certain City records (Community Services Department). 113 A 12. RESOLUTION NO. 2003R-32 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the destruction of certain city records more than two years old (Public Utilities Department). 175 A 13. RESOLUTION NO. 2003R-33 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2002R-67, Nunc Pro Tunc, relating to the Magnolia Power Project. 153 A14. RESOLUTION NO. 2003R-34 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Letter of Understanding between the City of Anaheim and the International Brotherhood of Electrical Workers, Local 47 (Part-Time Customer Service employees). 174 A 15. RESOLUTION NO. 2003R-35 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Chief of Police to submit a grant proposal on behalf of the City of Anaheim to the Office of Criminal Justice Planning for Title II Funding for the Positive Alternatives Program component of the Delinquency Prevention Program for the Anaheim Police Activities League Center. 174 A16. RESOLUTION NO. 2003R-36 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Chief of Police to submit a grant ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 7 proposal, on behalf of the City of Anaheim, to the Office of Criminal Justice Planning for the 2002-2003 Juvenile Accountability Incentive Block Grant Program. 142 A17. ORDINANCE NO. 5850 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending various sections of Title 18 of the Anaheim Municipal Code relating to parking for single-family residences. 114 A 18. Approve minutes of the Council adjourned meeting held February 4, 2003. END OF CONSENT CALENDAR 142 A19. ORDINANCE NO. 5851 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding new Section 1.04.395 to Chapter 1.04 of Title 1 of the Anaheim Municipal Code relating to limitations on Board and Commission service (Continued from the Council meeting of February 25,2003, Item 19). Council Member Tait offered Ordinance 5851 for introduction. Council Member Hernandez said he agreed that there was a need for new members and participation on the boards and commissions. He said he felt that it was the responsibility of the Council to oversee each board and member and remove the members that were not doing a good job and replace them. He noted that there was an abundant number of people willing to step forward and work on boards and commissions. He said he desired to maintain and carry through with the responsibility to the citizens as a Council Member to interject his ideas, feelings and knowledge about the different people chosen for the positions. He said the issue was not to infuse new people onto the boards and it was the manner in which they would be chosen. Council Member McCracken said that there was an appointment to be made to the Budget Advisory Commission and she tried calling some of the people on the list from as far back as 1998 and she was not able to get through and left messages. She said she had worked to come up with a revision or a process and she said she believed that this created chaos before securing a decent process to appoint people to commissions. Commissions were supposed to be advisory bodies and members needed to have experience and skills in the area that they wished to volunteer in, she noted. One-fourth of the commissioners were up for renewal in June, she reported, and with the additional section of the proposed ordinance, everyone else that had ever served for two terms would be added which would create chaos. She said she believed that the ordinance may have some merit but the timing was off. Mayor Pringle noted that the process offered by Council Member Tait was to limit the process to a maximum of eight consecutive years and allow someone to take a break and return for eight more years. He said he believed that the process established a much smoother transition than what the city had today and there would be continuity as opposed to a process where certain members serve for a continuous time with no scrutiny. He said he believed that this opened the door to new people and a diverse community to participate in every commission. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 8 Council Member McCracken noted that the appointment process for Council would be overwhelming. Mayor Pringle said that the city should solicit people who had talents that the Council would like to place in key areas and he said he would do his part to be proactive in seeking out people. Council Member Chavez said he did not see that it was necessary that someone have a lot of experience in a particular field to be chosen for a board or commission. He said that as a volunteer, and as the years went by, the person would learn more about the particular commission and act as an advocate for their constituents. He said that Council should thank those that had served and that this was an opportunity for new people and there were people that were interested in the positions. He said if no one volunteered, he could find people who would be interested. Council Member Tait noted that citizens had passed term limits for the Council by approximately 80 percent and he believed that this was a natural extension of the desire of the citizens for fresh ideas and to extend that to term limits for board and commission advisory members. Council Member Tait offered Ordinance No. 5852 for introduction. 142 A20. ORDINANCE NO. 5852 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding new Section 1.04.900 to Chapter 1.04 of Title 1 of the Anaheim Municipal Code relating to the Golf Commission (Continued from the Council meeting of February 25, 2003, Item 20). 105 A21. Consider appointing a citizen to serve on the Budget Advisory Commission to a term, which will expire June 30, 2004 (Continued from the Council meeting of February 25, 2003, Item 21). Council Member Tait moved, seconded by Council Member Hernandez, to continue Item A21 to March 18, 2003. Motion carried unanimously. 179 A22. Discussion regarding the 30-day occupancy limitation currently imposed as an operating condition upon certain motels (Requested by Mayor Pro Tern Tait at the Council meeting of February 25, 2003). Council Member Tait noted that a few years ago, the city imposed a 30-day move-out limit on a few of the city's motels, requiring that once a resident had stayed 29-days, they had to move out on the 30th day and could not move in for 90-days. He said he felt that this created an undue burden on the poor of the city and forced them to leave. If children were enrolled in school, on the 29th day, they would need to drop out of school and move to a different school and possibly a different district and go through the process again if they happened to move into one of the motels with this restriction. It did nothing for public health and safety and had nothing to do with safety code violations of ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 9 the motel, which he was interested in enforcing and it accomplished nothing and created a hardship. Council Member Tait moved, seconded by Council Member Chavez, to direct staff to go through the process to remove the restriction of the occupancy limitation; set public hearings on the three conditional use permits for motels with the restriction and that a resolution be created to change the policy in the city of placing that restriction on future motels. He asked that this be brought back at the next Council meeting. Council Member McCracken said she was willing to review the conditional use permits of the three motels that had the condition. It had been removed from one motel, she noted, and it improved it's conditions and it made it function like a motel. For the other three, she was more than willing to have a hearing on each of them to see where they would be willing to make their places better. She said she believed that the hotel owners were taking advantage of the poor and she expressed concerned that the city was not saying they would put more effort into enforcing the fact that the hotel owners were not creating a safe place for children. She noted that she wished to re-examine the conditional use permits of the three motels that still had the restriction and they could come forward to amend the conditional use permits and it did not need to be a policy decision. Mayor Pringle said he believed that Council Member Tait had talked about one condition that was placed on three existing hotel operators, which was the limitation of the 30-day stay and a 90-day period. He asked the City Manager if it were true that there were 30 to 40 conditions dealing with health and safety code issues, maid service, code enforcement review, requirement for smoke detectors and all of the various health and safety code issues that were part of the conditional use permit and those would not be affected by the discussion. Council Member Hernandez said that the 30-day and 90-day did not work and it punished the lowest economic strata in society who had no alternative but to live in those places. It would not work to improve the conditions for the people that needed to be protected and the hardship had been on the tenant when it needed to be on the landlord or operator. He said he believed that the unit should be taken out of service so that the unit could not continue to be rented out while the operator stalled with the rehab of the unit. If the room was out of service, the operator was not receiving rent and the burden should be placed on the landlord to relocate the family and consider having the landlord pay the relocation cost for the family. He said that the City might even wish to consider an inspection fee so that staff time could be recuperated. Council Member Chavez said that the City had used motel renters as a tool against the landlord by saying that they would be bumped out. He said as a firefighter in the city for nineteen years, he had been in motels and had seen bad living conditions and people living in garages, cars, alleys and that included children. As mothers waited for the city to help them with Section 8 money to obtain an apartment, and no place was found because there were no affordable apartments at that level, 30 days would go by and then there would be no place for them to live and they would have to live in their car. He said he believed that the ordinance was very wrong from the beginning. Council Member Tait moved, seconded by Council Member Chavez, to direct staff to go through the process to remove the restriction of the occupancy limitation; set public ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 10 hearings on three conditional use permits for motels with the restriction and that a resolution be created to change the policy of placing that restriction on future motels. He asked that this be brought back at the next Council meeting. Roll call vote: Ayes - 5; Mayor Pringle, Council Members Tait, McCracken, Hernandez and Chavez. Noes - O. Motion carried. Mayor Pringle asked if this item would return to Council at its next meeting and City Attorney White stated that he would work with the City Clerk and Planning Department staff to see how soon public hearings could be set on the three motels that had the condition and he doubted that it could be done since notices would need to be published ten days in advance. Mayor Pringle informed that the item would not be back to Council in two weeks but would return on March 25, 2003. He asked that all three public hearings be placed on one agenda as well as the resolution. 6:00 P.M. PUBLIC HEARINGS: 179 B1. A public hearing to consider the abandonment of a 13-foot wide portion of an easement for road and public utility purposes adjacent to the property located at 125 East Commercial Street. At their meeting held February 4, 2003, Item A6, the Anaheim City Council adopted Resolution No. 2003R-15 declaring its intention to vacate certain public streets, highways and service easements (Abandonment No. ABA2002-00059, 125 East Commercial Street). REQUESTED BY: Walden & Associates on behalf of Carcore Inc. 1314 North Anaheim Boulevard, Anaheim, CA 92801. Public Works Civil Engineer, Natalie Meeks, said that the current circulation element called for a 90-foot right of way on Commercial Street, which dated back to when the 91 Freeway had an onramp there. A number of years ago, she said, one of the property owners along Commercial Street dedicated to the full 90-feet. She said that public works was in the process of revising that circulation element with the general plan update and anticipated reducing the 90-foot right of way. The property owner had requested that the city abandon the 13-feet that was not anticipated to be used to allow for his development to move forward so that he could use the 13-feet. Staff recommended moving forward with the abandonment even prior to the revision to the circulation element. Mayor Pringle opened the public hearing and hearing no testimony, closed the public hearing. Council Member Hernandez moved, seconded by Council Member Chavez, to approve the CEQA Finding of Categorically Exempt, Class 5. Motion carried unanimously. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 11 Council Member Chavez offered Resolution No. 2003R-37 for adoption. RESOLUTION NO. 2003R-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING ABANDONMENT NO. ABA2002- 00059. Roll call vote: Ayes - 5, Mayor Pringle, Council Members Tait, McCracken, Chavez, Hernandez. Noes - O. Motion carried. Council Member Hernandez moved, seconded by Council Member Chavez, to approve the Quitclaim Deed of the City's right, title and interest in the abandoned area. Motion carried unanimously. Report on Closed Session Actions: City Attorney, Jack White, reported that the Council unanimously approved the withdrawal of the previously issued March 31 st termination notice for the lease at 1370 South Sanderson Avenue, Rancho Del Rio Stables. Council Communications: Council Member McCracken congratulated Ms. Anaheim, Rebecca Baumback. She congratulated Director of Public Works, Gary Johnson, upon receiving top honors from colleagues in the League of California Cities Public Works Officers Institute in Monterey, where he was presented with an award for outstanding city public works official and for significant contributions to the profession through outstanding career service, leadership, expertise and innovation. She requested that the Planning Commission minutes be returned to the Council agenda and was concerned about being in violation of the Brown Act if she were to ask more than one Council Member if they wished to set an item for public hearing. She noted that it took two Council Members to set an item for public hearing. Mayor Pringle stated that the Planning Commission items were in all of the packets and he noted that any Council meeting was an opportunity to say that she wished to have a Planning Commission item heard by Council. He noted that it would take two to designate an interest in having an item reheard. City Attorney White noted that the way the code was written, if two members of the Council said at a Council meeting, under public comments, that they wished an item be heard or set for a public hearing, it did not take an action by the Council and did not need to be on the agenda since it was not being acted on or even discussed. Two members of the Council could inform the City Clerk outside of the Council meeting anytime within the appeal period limit. Council Member McCracken was correct that she could not make contact privately with Council Members. Mayor Pringle said that Council Member McCracken would need to notify the City Clerk that she would like an item set for public hearing and cannot notify other Council Members due to the Brown Act. If a Council Member was publicly soliciting interest to see if other Council Members had the same concern, it could be brought up during Council Communication at a meeting. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 12 Council Member Chavez stated that eighteen new firefighters were hired about one month ago which was a good step since the country was possibly going to war and was fighting terrorism. Council Member Hernandez said that the Governor was looking for ways to increase his cash flow or garner cash flow and had asked the Federal Energy Regulatory Commission to look into abuses in the area of energy transactions in the State. It appeared that the Governor accused public and private utility entities of abuses and he asked the Public Utilities General Manager to explain what was happening in the energy area and in the press to reconcile the differences. Public Utilities General Manager, Marcie Edwards, said that the energy industry was deregulated and as a result, wholesale prices went through the roof. The California Public Utilities Commission decided not to pass prices onto the customer base of investor owned utilities and the investor owned utilities had accumulated a significant amount of debt, she informed. PG&E had filed for bankruptcy, Edison was close and at that point, California itself had stepped in as the power purchaser for the customers in the investor owned utilities and they had also accumulated a significant amount of debt. The investor owned utilities, in conjunction with some California entities, filed with the Federal Energy Regulatory Commission to get back approximately $9 billion in refunds and a substantial amount of information was provided. A federal administrative law judge reviewed that information and determined that, given the amount of unpaid bills, California did not deserve refunds and actually owed $1.3 billion. The California parties were Edison, PG & E, State Attorney General's Office, California Public Utilities Commission and an oversight board that oversaw the activities of the California Independent System Operator. Public utilities was a small player in the grand scheme of accusations and the issue came up about the City potentially engaging in a market manipulation tactic. She assured the Council that utilities did not withhold power from the market and there was protocol on behalf of the agency that managed the power system in California that said any power that was bid in must be able to respond to their instructions in ten minutes. Anaheim did not have anything that could respond in ten minutes and that the combustion turbine did not work that way and power could not be cut or adjusted flowing in on transmission lines, she informed, and the City had no way to bid into the advanced market. Resources were secured on the market sometimes months in advance, she said, and when the day arrived, it could be cooler or warmer and the City might need to purchase or sell and that was what went into the wholesale market and utilities was not buying to resale energy. She reassured Council that utilities would continue to put forth the correct information and by March 20, 2003, reply comments were due at FERC and utilities would be commenting. FERC had intended to rule by the end of March or April and while no one could tell what a regulatory body would do, indications were that FERC would not change their original ruling and the intent behind the release was to lay the ground work for return to the Ninth District Court and an attempt to further implicate the marketers to obtain greater amounts of refunds and that other cities were looking at partial municipalization. Mayor Pringle noted that Manager Edwards would be going to New York to speak to the rating agencies to make sure that the Anaheim Public Utility had the highest and best rating by the agencies. ANAHEIM CITY COUNCIL MEETING MINUTES MARCH 4, 2003 PAGE 13 Council Member Tait noted that with war possibly looming in Iraq, he offered appreciation to the troops who were placing their lives on the line. Mayor Pringle asked that a Mayor's Task Force be created to review youth sports facilities in Anaheim hills and he asked that five residents review the potential youth facilities needs in that area; review all potential sights, which included greater utilization of schools, parks, other City property and other open space; identify the potential use for those properties for youth sports facilities and prepare a report for Council on the priority of feasibility in those locations. He had also asked Director Chris Jarvi, Community Services, to assist the task force in moving forward. He encouraged those who wished to apply for the boards and commissions to submit an application and contact Council Members individually. Adjournment: There being no further business to come before the City Council, Council Member Hernandez moved to adjourn the meeting, seconded by Council Member Tail. Hearing no objections, the meeting adjourned at 6:54 P.M. Respectfully submitted: ~{)~~?1- Sheryl! Schroeder, CMC/ME City Clerk