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2004/01/27 ANAHEIM, CALIFORNIA - CITY COUNCIL SPECIAL MEETING JANUARY 27,2004 The City Council of the City of Anaheim met in special session. PRESENT: Mayor Curt Pringle, Council Members: Bob Hernandez, Tom Tait, and Richard Chavez. ABSENT: Council Member Shirley McCracken. STAFF PRESENT: City Manager David Morgan, City Attorney Jack White, and City Clerk Sheryll Schroeder. A copy of the agenda for the meeting of the Anaheim City Council was posted on January 23, 2004 at the City Hall outside bulletin board. Mayor Pringle called the special adjourned meeting to order at 2:12 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. WORKSHOP: MID-YEAR BUDGET REVIEW City Manager David Morgan began the mid-year budget presentation with an overview of topics to be covered during the presentation with the goal of receiving City Council direction and comments during the process. Topics included a review of the economy, the impact of the State budget, the current fiscal year General Fund status and staff's best effort at General Fund projections for the next five years. Additionally, Mr. Morgan indicated staff would discuss the budget deficit of $3,800,000 for 2003/04 and the projected shortfalls for 2004/05 through 2008/09 as well as options for solving the deficits. Finance Director Bill Sweeney and Assistant City Manager Tom Wood provided a detailed power point presentation outlining those specific topics. The City Manager indicated it was staff's intention to build a budget based on a balanced set of strategies and taking into account Council's direction. He noted the actual budget would be presented to Council at the beginning of May, 2004 and that given the significant issues the City was trying to address, the mid-year review was presented for Council's consideration early in the calendar year. With regard to the $3,500,000 taken by the State to be repaid in Fiscal Year 2006/07, Mayor Pringle recommended these funds be recorded as a receivable. The State had indicated the funds would be returned to the City, the reimbursement was an obligation of the State and the City should budget those funds as if Anaheim expected and counted on receiving those monies. Mr. Sweeney indicated he would take a look at how other cities treat that fund, but it would probably be recorded as a receivable with a reserve fund established as well. Mayor Pringle requested clarification on the uncertain economic conditions. The City Manager stated the most significant unknown was the statewide election on the bond issue, and as was pointed out by Mayor Pringle during the presentation, should the ballot measure fail in March, the City could anticipate replacement action that would significantly impact local governments. Council Member Tait remarked the City had deferred retiree medical payments this year due to economic concerns and asked how this mid-year review addressed those payments. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 2 Mr. Morgan indicated Council had been told the deferred payments would be for one year and the plan before Council assumed the City would make the retiree medical payments next year. Council Member Hernandez noted the only area he could see an opportunity for enhancing revenue was in the transient occupancy tax on individual travel outside of conventions. He asked what kind of return the City received for each marketing dollar spent. Bill Sweeney replied that he would research that matter and provide Council with the information. Mr. Sweeney did indicate he anticipated a 6.5 percent growth in transient occupancy tax for the next year, but that the wild card would be the theme park's success or failure in the summer. Dave Morgan affirmed the transient occupancy tax offered the greatest potential for growth which was one of the reasons the City was currently engaged in a countywide marketing effort to bring new events to Anaheim and increase the resort area use. Due to the impacts of 911 and the softness in the economy, the $60,00,0000 projected for transient occupancy tax was well under anticipated figures. To answer the question as to what Anaheim received for each marketing dollar spent, Mr. Morgan reported the City was working on a study that showed not only what Anaheim got for each dollar spent but how that impacted the entire county. He remarked that for years Anaheim had carried the load for marketing in Orange County, and if the City could show how Anaheim's marketing impacted the rest of Orange County, it would be easier getting their support for increased advertising efforts. Council Member Tait encouraged maximizing partnerships with County agencies and asked at what point does marketing bring diminished returns. Mr. Morgan stated as part of the budget discussion, he would bring Council a report on the status of the new marketing effort and suggestions for moving forward. Mayor Pringle recapped that at the end of this fiscal year, Anaheim would have a $3,800,000 deficit which would increase to $16,300,000 for the upcoming budget year. Mayor Pringle acknowledged the difficulty in bringing about the proper blend of cuts or reductions to not adversely effect employee groups, the City's future economic strength, or projects the public viewed as beneficial to the City. He also remarked that early recurring reductions would reduce the growing deficit. In discussing state impacts, Mayor Pringle commented that last year there was a 1.3 billion dollar cut to local governments by the State of California that was defined as a loan and resulted in three months of lost vehicle license fees for Anaheim. Additionally, Mayor Pringle said there was a shift in redevelopment money to ERAF (educational revenue augmentation funds) and warned that the State administration strategy for this year was that the hit should be recurring. Mayor Pringle also mentioned there were two competing initiatives to address protection of local government funds and that he was supportive of the Hertzberg constitutional amendment which provided for local government to be funded primarily by property tax. The amendment traded sales tax and vehicle license fees to a larger extent with property tax base which was a more stable foundation for local government. This amendment would protect local resources and cities would not be faced with future concerns over State take-aways. Mayor Pringle thanked staff for having the discussion in January rather than focusing on the problem in May. Council Member Chavez also thanked staff for providing the budget information early. He mentioned that one of the recommendations under deficit solutions was for stabilization or adjustment to ALS (Advanced Life Support) or BLS (Basic Life Support) billing for paramedic services. Council Member Chavez was supportive if the City was considering billing insured residents but did have a concern if the fees caused more problems to the poor who were already in crisis. The City Manager reported the proposal would include provisions to protect on an ability-to-pay basis. Mayor Pringle inquired about Medicare reimbursement. Fire Chief Roger Smith stated that currently the way Anaheim was configured in the EMS system, the City was not allowed into that federal dollar reimbursement system. Chief Smith reported he was ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 3 working with the City's transport provider to establish a program by which the City would be eligible to seek reimbursement for some of those federal dollars. Since Anaheim was not the transport provider directly, the City was not allowed direct reimbursement. Mayor Pringle asked what the distinction was between ALS and BLS. Chief Smith replied the distinction was in the level of paramedic or EMT services provided and that any service as simple as doing a blood sugar check or routine cardiac monitor was considered advanced life support services. He noted the cost of an ALS response was $250, the cost of a BLS response was $150 and individuals receiving ALS always received emergency transportation. The costs were applicable to residents or guests of the City who were not members of the City's subscription program. Council Member Chavez discussed the payroll cost containment of $2,000,000 in the recommended structural deficit solution. With 2,000 employees, he remarked, that equated to $1,000 per employee which he stated was a lot to ask of employees. Council Member Chavez noted that part of what was driving labor cost increases was the PERS retirement rate, and that when the rate was at zero employees did not receive compensation. During that time funds were put into different accounts and employee groups would want to know there was not a reserve fund that could be accessed to decrease these costs. Council Member Tait felt that structural deficits needed to be addressed head on and the longer the City waited to take action, the worse the deficit. He commented that structural deficits must be both intradepartmental and citywide and should take into account not just a percentage reduction but reorganization as the demand for services was still there but with much less available funds. Council Member Tait recognized this would be a tough decision as the vast majority of the City's budget was payroll, but one which must be addressed. ADDITIONSIDELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS - CLOSED SESSION: None Mayor Pringle recessed to closed session at 3:22 P.M. for the following purposes: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Subdivision (a) of Section 54956.9 of the Government Code Name of case: Garcia v. City of Anaheim, United States District Court Case No. SACOV03382DOC. 2. CONFERENCE WITH LABOR NEGOTIATORS Agency designated representative: David Hill Employee organization: Anaheim Municipal Employees Association. 3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 of the Government Code): One potential case. Existing facts and circumstances: Determination of lowest responsible bidder for construction contract for the BNSF Railroad Corridor Soundwall Project from Imperial Highway to Weir Canyon Road/Yorba Linda Boulevard. AFTER RECESS: Mayor Pringle called the regular Council meeting of January 27,2004 to order at 5:00 P.M. and welcomed those in attendance. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 4 INVOCATION: Council Member Tom Tait FLAG SALUTE: Council Member Hernandez RECOGNITIONS (To be presented at a later date): Proclaiming February 2-8, 2004, as Make Kindness Contagious Week Mayor Pringle recessed the City Council meeting at 5:02 P.M. to call to order the Anaheim Redevelopment Agency. Mayor Pringle reconvened the City Council meeting at 5:03 P.M. ADDITIONSIDELETIONS TO THE AGENDA: Consent Calendar Item A29 was removed by staff and continued to February 10, 2004. PUBLIC COMMENTS: Kelly Gonis, Community Affairs Manager for Adelphia Communications, announced the February 7,2004 Annual Soiree, a fund-raiser for the Anaheim Arts Council and requested the support of Council. Charlie La Chance, representing United Food and Commercial Workers, thanked Council Member Chavez for his support of the United Food and Commercial Workers on Martin Luther King weekend. Richard Palm, resident, recommended that any candidate filing for election for City Council include their biography on the City's website. City Clerk Sheryll Schroeder indicated the last day for filing was August 9, 2004. James Robert Reade commented on Police Department concerns. CONSENT CALENDAR: Consent Calendar Item A29 was removed by staff and continued to February 10, 2004. Council Member Tait abstained on Items A14 and A25 due to a potential conflict of interest. Mayor Pringle abstained on Item A 17 due to a potential conflict of interest. Council Member Chavez abstained on Item A27 as he resided within 500 feet of one of the sites. Council Member Hernandez moved approval of Consent Calendar Items A 1- A30, seconded by Councilmember Chavez, to waive reading in full of all ordinances and resolutions and to approve the following in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar. Roll Call vote: Ayes- 4; Mayor Pringle, Council Members: Tait, Hernandez, and Chavez. Absent - 1, Council Member McCracken. Noes - O. Motion carried. 128 A 1 . 117 126 174 1J5 Receive and file the Monthly Financial Analysis presented by the Finance Director for five months ended November 30,2003; the Investment Portfolio Report for December 2003; Crime and Clearance Analysis for December 2003; Southern California Edison Company Rate, Application No. A03-10-022; minutes of the Golf Commission meeting ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 5 160 A2. 123 A3 123 A4. 10~ A5. 123 A6. 123 A7. 139 A8. 129 A9. 123 A10. 153 A11. 123 A12. held September 25, 2003 and October 23, 2003; minutes of the Deferred Compensation Committee meeting held October 8, 2003 and special meeting held November 25, 2003; and minutes of the Public Library Board meeting held November 3, 2003 and December 8, 2003. Accept the low bid from SCS Flooring Systems, in an amount not to exceed $37,972 (tax inclusive), for the purchase and installation of carpet tile for City Hall East in accordance with Bid #6449. Award the contract to the lowest responsible bidder, Sierra Pacific Electrical Contracting, in the amount of $197,893, for the CDBG street light system upgrade improvements for Coolidge Avenue, Monroe Avenue, Tyler Avenue and Polk Avenue and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. Award the contract to the lowest responsible bidder, L.H. Engineering Company of Anaheim, in the amount of $33,320.60, for the Harbor Boulevard Pedestrian Safety Fencing Improvement and Beautification Project from Manchester Avenue to East Shuttle Area and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. Approve the payment of a Caltrans invoice, in the amount of $61,800, to modify SR-55 directional signing by adding "Anaheim" to the current "Riverside" control city designation. Approve the annual services agreements with RJM Design Group, Inc., Cornerstone Studios, and Nuvis, in an amount not to exceed $75,000 annually per agreement ($225,000 total annually), for the landscape architectural on-call and support services for public works improvement projects. Approve a fee increase of thirty-five dollars per hour for special counsel services pursuant to the attorney services agreement with Freeman, Freeman & Smiley, LLP. Receive and file reports from our legislative advocates: Sloat Higgins Jensen Associates, Townsend Public Affairs, and Smith Esposito and Lyerly and approve the legislative positions. Authorize the Fire Chief to accept a grant award from the Emergency Preparedness and Response Directorate for the fiscal year 2003 Assistance to Firefighters Grant Program and increase the Fire Department's fiscal year 2003/04 budget by increasing revenues and expenditures, in the amount of $127,302. Waive Council Policy No. 306 and approve the First Amendment to Agreement with CARE Ambulance Services, Inc. for continued services. Approve a rate reduction for the Aetna U.S. Healthcare Temporary Disability Income Plan to be effective March 1, 2004. Approve and authorize the City Manager to execute Amendment No. 2 to Professional Service Agreement with Thirtieth Street Architects, Inc. to increase the maximum ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27, 2004 PAGE 6 compensation to $300,000 and extend the term of the agreement to April 30, 2005 for continued planning and architectural review and design services. 161 A13. Approve an amendment to the HOME budget and the 2000-05 Consolidated Plan Document to establish a HOME-Funded Tenant-Based Rental Assistance Program, in an amount not to exceed $1.5 million. 123 A14. Approve the Third Amendment to Professional Services Agreement with The Planning Center, in an amount not to exceed $31,853, to analyze and incorporate additional refinements to the Recommended Land Use Alternative and an agreement with EDAAW, Inc., in an amount not to exceed $116,000, for consultant services to prepare a mixed-use overlay zoning ordinance, design guidelines and a public realm identity and landscape program for the Stadium Area. Council MemberTait abstained. 123 A15. 123 A16. 123 A17. Approve and authorize the Public Utilities General Manager to execute an agreement with Kema-Xenergy, Inc., in a total funding amount not to exceed $576,878, to implement and administer the residential Advantage Services for Anaheim Public Utilities Department for one year with the option for two consecutive extensions, up to one year each. Approve and authorize the Public Utilities General Manager to execute an agreement with GRT and Associates, Inc., in a total funding amount not to exceed $225,000, for a period of one year with the option for two consecutive extensions, up to one year each, for a total cost not to exceed $675,000, to implement and administer six commercial energy programs for the Public Utilities Department. Approve and authorize the Public Utilities General Manager to execute a contract between the Orange County Water District, Municipal Water District of Orange County and the City to construct a new well in Anaheim that will be funded by the Metropolitan Water District of Southern California (MWD) and be used to extract MWD stored water during a drought or other emergency. Mayor Pringle abstained. 158 A18. 123 A19. 11 7 A20. Approve and authorize the Public Utilities General Manager to execute the Metrolink Railroad Right-of-Way License Agreement with the Orange County Transportation Authority for the construction and maintenance of a proposed 230kV transmission line. Approve and authorize the Public Utilities General Manager to execute a twenty year agreement with Southern California Public Power Authority for the purchase of renewable energy produced by the Ameresco Landfill Gas Project and an Interim Agreement with the City of Glendale for an energy exchange. RESOLUTION NO. 2004-9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the City Treasurer to sell certain securities acquired by the City for support of the Mother Colony House and to reinvest the proceeds thereof. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 7 174 A21. 158 A22. 153 A23. 153 A24. 142 A25. RESOLUTION NO. 2004-10 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving submission of a grant application to the Mobile Source Air Pollution Reduction Review Committee. RESOLUTION NO. 2004-11 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. 10720, 10721, 10722, 10723, 10724, 10725 and 10726). RESOLUTION NO. 2004-12 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding with the International Brotherhood of Electrical Workers, Local 47 representing the Anaheim Part-Time Customer Service employees. RESOLUTION NO. 2004-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Letter of Understanding between the International Brotherhood of Electrical Workers, Local 47 and the City of Anaheim. ORDINANCE NO. 5897 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 18.55.044 of Chapter 18.55 of Title 18 of the Anaheim Municipal Code relating to zoning (off-premises sale of alcoholic beverages in Brookhurst Commercial Corridor Overlay, Zoning Code Amendment No. 2003-00027) (Introduced at the Council meeting of January 13, 2004, Item A33). Council Member Tait abstained. 179 A26. 161 A27. ORDINANCE NO. 5898 (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. 2002-00085, 1597 West Katella Avenue) (Introduced at the Council meeting of January 13, 2004, Item A34). ORDINANCE NO. 5899 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM eliminating the time limit on establishment of loans, advances and indebtedness with respect to the redevelopment plans for Project Alpha and River Valley and making other findings in connection therewith (Introduced at the Council meeting of January 13, 2004, Item A35). Council Member Chavez abstained. 179 A28. ORDINANCE NO. (INTRODUCTION) 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. 2003-00108, Downtown Mixed Use Overlay Zone). 114 A30. Approve minutes of the Council meeting held January 13, 2004. END OF CONSENT CALENDAR: 123 A29. Award a construction contract for the BNSF Railroad Corridor Soundwall Project from Imperial Highway to Weir Canyon Road/Yorba Linda Boulevard. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 8 Item A29 was continued to February 10, 2004. A31. Consider appointing a citizen to serve on the Sesquicentennial Commission, term to expire December 31, 2007. APPOINTMENT: (Expire December 31,2007). Without objection from Council, Mayor Pringle continued this item to February 10, 2004. 105 A32. Consider appointing two members to serve on the Cultural and Heritage Commission, each member to serve four year staggered terms. APPOINTMENT: Gary Murray (Expire June 30, 2005). Council Member Hernandez nominated Gary Murray as a member of the Cultural and Heritage Commission; the appointment was unanimously approved by Council. APPOINTMENT: (Council Member Tait) (Expire June 30, 2007). Without objection from Council, Mayor Pringle continued the remaining appointment to February 10,2004. A33. Consider appointing two members to serve on the Housing and Community Development Commission, one member to represent the South and one to represent the West Neighborhood Council. APPOINTMENT: APPOINTMENT: (Expire June 30, 2006). (Expire June 30, 2007). Without objection from Council, Mayor Pringle continued this item to February 10, 2004. 105 A34. Consider appointing a citizen to serve on the Senior Citizen Commission, term to expire June 30, 2004 (Beryle Koening's term). APPOINTMENT: Carol Morrow (Expire June 30, 2004). Council Member Chavez nominated Carol Morrow to the Senior Citizen Commission; the appointment was unanimously approved by Council. Mayor Pringle recessed the Anaheim City Council at 5:26 P.M. to reconvene at 5:30 P.M. PUBLIC HEARINGS: 179 B1. RECLASSIFICATION NO. 2003-00112 REQUEST FOR REVIEW OF "GRANDFATHER" PROVISIONS AND NEGATIVE DECLARATION: AGENT: City of Anaheim, Planning Department, 200 South Anaheim Boulevard, Anaheim, CA 92805 LOCATION: 1101,1107,1111,1115,1119,1123,1127,1131,1133, 1139, 1143, and 1145 West Broadway, 1100, 1104, 1110, 1114, 1118, 1122, 1124, 1126, 1130, 1204, ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 9 1207, 1209, 1210, 1215, 1218, 1224, 1227, and 1229 West Center Street, 114, 118, 120, 122,128,200,206, and 210 South Cherry Street, 1114, 1115, 1116, 1119, 1120, 1123, 1124, 1127, 1128, 1132, and 1133 West Chestnut Street, 1200, 1204 and 1226 West Lincoln Avenue, 110, 115, 116, 120, 121, 122, 125, 126, 131, 200, 201, 205, 206, 210,213,214,217,223 and 225 South Walnut Street, 115, 123, 125,203,211, and 215 South West Street. The 74 properties are contiguous to and located immediately west of the Anaheim Colony Historic District, in the "5 Points Neighborhood" encompassing approximately 12.5 acres, bounded by Lincoln Avenue to the north, West Street to the east, Broadway to the south and the 1-5 (Santa Ana Freeway) to the west. City-initiated (Planning Department and Community Development Department) request on behalf of the Anaheim Colony Neighborhood Council (see Attachment No.1) for reclassification of the properties in the "5 Points Neighborhood" as follows: Area 1 as shown on the attached Vicinity Map and further described as the properties located approximately 535 feet west of the centerline of West Street and east of the 1-5 (Santa Ana Freeway), between Center Street and Lincoln Avenue from the CG (Commercial, General) zone to the RS-5000 (Residential, Single-Family) zone or a less intense single-family residential zone; Area 2 as shown on the attached Vicinity Map, located at the northwest corner of Broadway and Walnut Street, containing four (4) parcels of land (3 vacant parcels and 1 parcel developed with apartments, 213 South Walnut Street) from the RM-2400 (Residential, Multiple-Family) zone to the RS-5000 (Residential Single-Family) zone or a less intense single-family residential zone; and Area 3 as shown on the attached Vicinity Map containing the remainder of the subject properties from the CG (Commercial, General), PD-C (Parking District - Commercial), and the RM-1200 and RM-2400 (Residential, Multiple-Family) zones to the RS-7200 (Residential, Single-Family) zone or less intense single-family residential zones. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 2003-00112 granted (PC2003-156, Area 1; PC2003-157, Area 2; PC2003-158, Area 3) (6 yes votes, Commissioner Flores absent). Granted Grandfather Provisions (5 yes votes, Commissioner Vanderbilt voted no and Commissioner Flores absent). Negative Declaration approved (6 yes votes, Commissioner Flores absent). (Appeal of the Planning Commission's decision submitted by John C. Zahn). MOTION TO APPROVE CEQA FINDING: NEGATIVE DECLARATION. MOTION TO APPROVE REVIEW OF GRANDFATHER PROVISIONS. RESOLUTION NO.: 2004-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE SHOULD BE AMENDED AND THE BOUNDARIES SHOULD BE CHANGED (RECLASSIFICATION NO. 2003-00112, Area 1). RESOLUTION NO.: 2004-15 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE SHOULD BE AMENDED AND THE BOUNDARIES SHOULD BE CHANGED (RECLASSIFICATION NO. 2003-00112, Area 2). RESOLUTION NO.: 2004-15 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT THE ZONING MAP ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 10 REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE SHOULD BE AMENDED AND THE BOUNDARIES SHOULD BE CHANGED (RECLASSIFICATION NO. 2003-00112, Area 3). Sheri Vander Dussen, Planning Director, stated a resident was appealing the Planning Commission's decision to reclassify the 5 Points Neighborhood from commercial and multiple family zoning to single family zoning. The 5 Points Neighborhood was bounded by Lincoln Avenue to the north, West Street to the east, Broadway to the south and the Santa Ana Freeway to the west. Ms. Vander Dussen reported the appellant single family home was located at 1127 West Broadway and constructed in 1922. The historic fourplex on the westside of this property and the existing single family home on the eastside were also constructed in 1922. Ms. Vander Dussen explained the twelve properties fronting Broadway on the appellant's block consisted of four apartment complexes, the historic fourplex, one single family home with an accessory second unit and one single family home with two units in the rear and the remaining five lots still maintained vintage single family homes. There was limited off-street parking along Broadway between West Street and Walnut Street. Ms. Vander Dussen stated if the current multiple family zoning was retained for the 12 parcels fronting this section of Broadway, a total of 76 units could be constructed in place of the approximately 33 units that were there now which could exacerbate parking problems during peak parking periods. She also noted that one third or more of the parcels on Broadway were owner-occupied and 43 percent of the properties in the entire 5 Points Neighborhood were owner-occupied. It was expected that single family zoning would increase the number of owner-occupied houses as properties with vintage homes were sold to new owners in the future for rehabilitation and restoration. Ms. Vander Dussen described the existing land uses of the 74 parcels in the 5 Points Neighborhood. Ms. Vander Dussen reported there were many other examples of historic and architecturally significant structures throughout the neighborhood that contributed to the desirability of the area. Chestnut Street represented the neighborhood as it would have been in the 1920's. These residences were becoming more and more valuable and in demand as homeowners were looking for this limited supply of housing. Even though there were eleven apartment complexes located in this primarily single family neighborhood, Ms. Vander Dussen indicated the majority of residents had expressed their desire to retain and improve the neighborhood in its present character that was predominantly single family. The residents supporting the reclassification also believed continued redevelopment of properties into apartments would further diminish the historical and architectural character of the area. Recognizing the existences of multiple family residential units that had evolved in this neighborhood, Ms. Vander Dussen explained the City Attorney's office had prepared a grandfather ordinance which, if adopted, would preserve the legally established multiple family dwelling such as second dwelling units, granny units, duplexes, triplexes and apartment complexes that would become nonconforming by reclassification of the zone. This would ensure those property owners continued to enjoy the same rights they had today to refurbish and rehabilitate their properties. Rezoning to single family zoning was requested by the majority of the property owners and was recommended by staff and the Planning Commission supported the predominant commitment to the residents to preserve, maintain and improve the neighborhood with its current mix of land uses. Council Member Tait asked how the majority that was in favor of the project was determined. Greg Hastings, Zoning Manager, replied the majority was determined by working with the residents of the neighborhood and from the Planning Commission hearing during which many ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 11 spoke in favor, a petition of support was offered and two spoke in opposition. The petition and speakers included both residents and non-residents of the area. The public hearing was opened by Mayor Pringle for those wishing to speak in support of the reclassification. Steve Faessel, President of the Anaheim Historical Society, spoke in favor of the downzoning on behalf of the Historical Society for the following reasons: downzoning stabilizes and revitalizes older neighborhoods; downzoning removes incentives to demolish historic homes to make way for multi-family dwellings and business structures; older homes were now ranked among the most desirable in Anaheim, valued for their architecture, quality building materials and proximity to community services and affordability; and Anaheim's future generations would judge the City on the historical monuments left behind. Stewart Pontel, resident of 5 Points Neighborhood, indicated the majority of the residents in the area were supportive of the reclassification. Joyce Morris, resident of 5 Points Neighborhood, indicated that homes were now cared for and being restored and the neighborhood was greatly improved as a result of the reclassification. Her concerns centered on increased parking problems should apartment complexes be built in place of single-family homes. Carol Capone, resident of 5 Points since 1966 expressed pride for her neighborhood and the positive changes that were occurring and supported the reclassification as an impetus for the neighborhood continuing to change for the better. Cynthia Ward, provided a detailed history of the 5 Points Neighborhood. Noting it was subdivided 100 years ago as single family residences, it was upzoned in recent years to encourage property owners to demolish homes that were blighted and old. Bungalows were replaced with apartments and lawns were replaced with cement pads and the quality of life for those that had been there for years had suffered. She pointed out under the downzoning the existing use would still be allowed. She also commented that the purchase of property for other than occupational use was an investment and the City had no obligation to protect the investor from the risk or guarantee awards from the investment. Her son spoke of his neighborhood and the lack of privacy. Mathew Tucker, resided in the Colony Historic District where beautiful old houses and been turned into apartment buildings and was unhappy with the result. He did not want to see the 5 Points Neighborhood develop as his neighborhood had. Gail Kramer, mortgage broker, read from an appraisal report on the value of property being adversely affected by its location in a mixed use area of multiple family and single family residents. Alejandro Gonzales, purchased a duplex on Center Street and spoke of the domino effect of improving his property with neighbors doing the same. Myrna Beach, a 50-year resident of the 5 Points Neighborhood, saw the neighborhood deteriorate as apartments replaced older homes and was looking forward to seeing improvements due to the downzoning. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 12 Robert Morris, resident, stated he did not make improvements to his home until he was confident downzoning would occur as it would be a waste of money to improve a property that had the potential of having an apartment built next door. Barbara Gonzales, indicated the tenants of the 5 Points Neighborhood were supportive of the downsizing as well as the residents. Several tenants on South Ohio Street had signed the petition of support. Alan Geoffrey purchased investment property at another location on West Broadway and last year voted in favor of downzoning that neighborhood and was supportive of the positive effects from that downzoning. Bill Taormina, asked supporters of the downzoning to stand. He indicated with Council's approval, Anaheim's historical structures would be preserved, property owners would be encouraged to spend dollars to improve their properties, blight would be eliminated and the reclassification would have a positive impact on crime and property values at the gateway to Anaheim's downtown area. Mayor Pringle invited those in opposition to the reclassification to speak. John Zahn, the appellant, stated his position was that his property had no value as a single family home due to the number of apartments already in place on Broadway. He remarked that at the time he purchased his property, three or four years ago, the City told him he could build four units on the rear if the property. He purchased the property as an investment and for his retirement. Mr. Zahn was requesting he be allowed the same rights he had when he purchased the property stating that under the reclassification, he was denied those same rights. Mayor Pringle closed the public hearing. Council Member Tait asked what the appellant could do on his property. Greg Hastings, Zoning Manager, stated Mr. Zahn could, in addition to a single family residence, request a conditional use permit to add a granny unit to the back of the property or alternatively, add a second dwelling unit provided one of those two units were owner-occupied. Mayor Pringle stated single family neighborhoods were vital to the community. He noted that 5 Points Neighborhood was a single family residential neighborhood and the City was trying to preserve the neighborhood integrity even though changes to the zoning were allowed in the past. The Mayor was in support of the Planning Commission's actions as those actions allowed the City to reverse the destruction of the character of Anaheim. It was pointed out that Mr. Zahn still had the ability to build on his property under the reclassification. Council Member Chavez commented on the housing shortage in Anaheim and the need for affordable housing. Council Member Chavez remarked that due to the uniqueness of 5 Points Neighborhood and the improvements that would occur to the properties in that area as a result of the reclassification, he was in favor of the downzoning. Council Member Tait was also supportive of the change as the City was bringing back the character of this historic area and Mr. Zahn retained the ability to build on his property under the new zoning. Council Member Hernandez concurred with the reasons offered in support of the downzoning and moved to approve the CEQA Finding of Negative Declaration, the Review of Grandfather ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 27,2004 PAGE 13 Provisions, and offered Resolution No. 2004-14 related to Reclassification No. 2003-00112, Area 1, Resolution No. 2004-15 related to Reclassification No. 2003-00112, Area 2 and Resolution No. 2004-15 related to Reclassification No. 2003-00112, Area 3 for approval. Council Member Chavez seconded the motion. Roll Call vote: Ayes - 4; Mayor Pringle, Council Members: Tait, Hernandez and Chavez. Absent - 1; Council Member McCracken. Noes - O. Motion Carried. REPORT ON CLOSED SESSION ITEMS: No items reported for closed session. COUNCIL COMMUNICATIONS: Council Member Chavez noted that an agreement had been worked out between the Orange County Water District and Richard Dumke, a homeless gentleman who had taken refuge on Water District property in City of Anaheim and Mr. Dumke would no longer be staying on the property but would be allowed access during the day to care for his plants. Council Member Hernandez noted the passing of Carl H. Wise, Public Utilities Department retiree and Allan F. McDougal, retired Public Works employee. Mayor Pringle indicated he and staff had attended the U.S. Conference of Mayors in Washington D.C. this past week. During that conference, the Mayor had contacts with representatives of the Homeland Securities Department, Transportation Departments and elected representatives in Congress on behalf of the interests of Anaheim. The Mayor had also visited President George Bush who had expressed enthusiasm for the great potential of the Angels baseball team. The Mayor also thanked staff for their participation in the State of the City address presented on January 26th and thanked the Chamber of Commerce for providing a forum. The State of the City address touched on a variety of issues, including a program, Home Improvement Holiday, whereby residents would be encouraged to promote home improvement and build community neighborhood pride and the general plan outlining the future for the City of Anaheim. ADJOURNMENT: There being no further business to come before the City Council, Mayor Pringle adjourned the meeting at 6:31 P.M. Re. s~ectfully SUbm)tted:. ' _ ~~~ ~~L/~ Sheryll Schroeder, CMC City Clerk