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1977/04/05 77-375 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 10:00 A.M, The City Council of the City of Anaheim met in adjourned regular session. PRESENT: ABSENT: PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Kaywood, Seymour (arrived 10:10 a.m.), Kott, Roth and Thom COUNCIL MEMBERS: None PUBLIC UTILITIES BOARD: Townsend, White, Stanton, Anderson, Keesee and Keifer PUBLIC UTILITIES BOARD: Haynie CITY MANAGER: William O. Talley CITY ATTORNEY: William P. Hopkins CITY CLERK: Linda D. Roberts UTILITIES DIRECTOR: Gordon Hoyt UTILITIES DEPARTMENT MANAGEMENT SERVICES DIVISION: UTILITIES DEPARTMENT MANAGEMENT SERVICES DIVISION: SPECIAL COUNSEL: SPECIAL COUNSEL: Darrell Ament Bob Erickson Wynn Peterson of R. W. Beck and Associates and Frank Twohey of Wainwright and Ramsey Mayor Thom called the meeting to order at 10:05 a.m. Chairman Keesee called the Public Utilities Board to order. 175: UTILITIES - GENERATION - SAN ONOFRE UNITS 2 AND 3: Mr. Hoyt reported that since last week's meeting with the Public Utilities Board (March 29, 1977), in re- sponse to Council questions and concerns, the Utilities Department has provided additional information and conducted a special meeting with the Public Utilities Board last night which Councilman Seymour attended. At Mr. Hoyt's suggestion, Mr. Peterson of R. W. Beck and Associates reviewed the additional material in detail with the aid of slide transparencies. Specific areas covered were: comparison of Southern California Edison imbedded debt costs versus City of Anaheim imbedded debt costs in all projects in which the City is considering participation; an explanation of Southern California Edison demand and energy costs and what factors these cover and a comparison of similar costs for City of Anaheim resources; and relative levels of power costs if power continues to be purchased entirely from Southern California Edison. (Copies of the supplementary material presented to Council, as well as the slides used in Mr. Peterson's presentation are on file in the Office of the City Clerk.) At the conclusion of Mr. Peterson's presentation, at the request of Councilman Seymour, Mr. Bob Erickson of the Utilities Department, Management Services Division, pre- sented a summary of his review of rates by cents per kilowatt hour charged by various municipal and private utilities. He stressed in his remarks that there are a number of problems in such rate comparisons, in that to get a true picture one would have to consider the total objectives and philosophy of the particular utilities being reviewed and their governing boards. Councilman Kott pointed out that there is a return to local government and school districts in the form of property taxes from private utilities which he felt should be taken into consideration in these comparisons as a benefit received, and it was estimated in response to this comment that the total amount of taxes which would be 77-376 City Hall, Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 10:00 A.M. received by the City from its electric facilities at current tax rates would be $100,000 per year, versus a $2.2 million transfer to the General Fund received by the City as a result of operating its electrical distribution system. Mr. Hoyt recalled that at the request of Mayor Thom, he conducted a study of these comparative values and benefits in 1974 and discovered that the amount the electric utility was paying to the City's General Fund was considerably in excess, in a magnitude of more than two times as much as the City would receive in ad valorem taxes from a private utility. Councilman Seymour initiated discussion of the unlimited nuclear liability issue and what impact this might have on the San Onofre Project, during which Mr. Hoyt pointed out that this is an issue which is on appeal before the courts and would most likely go all the way to the Supreme Court. In conjunction with this, Mr. Hoyt noted that a portion of the Federal government's energy program calls for doing away with the plutonium cycle of light water reactors and this would essentially stop development of liquid metal in fast breeder reactors and stop the reprocessing of spent fuel elements in the process. If this becomes government policy, the nuclear fuel costs now being estimated could increase by up to 20%. He further indicated that there is a possibility of an increase in insurance costs if the Price/Andersen Act is declared unconstitutional. In view of the current uncertainty regarding the question of unlimited liability, Councilman Seymour inquired whether the Council's action, should it approve the forwarding of a letter of intent to participate, might be reversible in the event an unfavorable determination is made or the question impacts the project itself, to which Mr. Hoyt gave an unqualified affirmative answer. Mr. Hoyt elaborated that the Council's action to approve the letter would initiate activities by the cities of Anaheim and Riverside and Southern California Edison to review contracts, prepare agreements, and work with regulatory agencies to get the cities included on the necessary licenses and produce the required environmental impact report. Only after all these requirements are complete will a binding agree- ment regarding the City's participation and ownership be executed, and it would be after that agreement has been signed that the City would not be able to back out of the arrangement without some costs. In further response to Councilman Seymour, Mr. Hoyt described the process which would be employed by the City in any bonding for the $51 million necessary to participate in San Onofre Project; namely that the City would prepare a financial statement disclosing everything about the City and the San Onofre Project; the City would most likely employ R. W. Beck and Associates to prepare a letter to be included indicating the financial feasibility of the project; hold national meetings in New York and Los Angeles and sell the bonds at competitive bids, with Council making award to the bidder with the lowest interest rate. The interest rate would be determined by the market at the time the bonds are sold. Most likely, for such a large sum of money the bonds would be broken into two or three separate issues; the first being for $25 to $30 million. Mr. Twohey concurred with Mr. Hoyt's explanation and added that the current muni- cipal bond rate is in pretty good shape and that all calculations have heretofore been made assuming a rate of 6½%. Mr. Twohey felt the City could take an even high- er rate and still stay within the computations. Further he reported that the nuclear issue does not appear to be of concern in the financing of nuclear generating facili- ties. 77-377 City Hall, Anaheim~ California - COUNCIL MINUTES - April 5~ 1977, 10:00 A.M. Councilman Seymour remarked that the City does not presently have a Fixed Asset Accounting System although plans and preparations are currently in motion to install same and questioned how this might affect the City's bond rates. Mr. Twohey was of the opinion that this would have a minor effect, if any, and that it is doubtful the City would ever recoup the $225,000 spent on instal].a- tion of a Fixed Asset Accounting System to obtain an unqualified opinion on its financial statement through bond rates. He suggested that the accounting system might be of more value to the City in other areas as he has never been able to recognize any difficulty with a qualified opinion on Anaheim's accounts in the bond market. Mr. Hoyt pointed out that the system is even more critical when the City tries to bond for its municipal water system in that Arthur Young & Company would not even render an opinion on the water utility. Mayor Thom called Council's attention to the issue at hand, i.e., whether or not the Council will authorize the issuance of a letter of intent to participate in San Onofre Units 2 and 3. Councilman Seymour stated he believes that the San Onofre Project is a very sound investment for the bonding capacity approved by the voters of Anaheim. He further explained that he is convinced that one of the unique advantages the City of Anaheim has in entering the generation field is that its primary competitor, Southern California Edison, is faced with skyrocketing fuel costs as a result of the cost of oil and because their system is so geared to the burning of oil to produce energy, whereas the City of Anaheim can capitalize on the cheaper methods of producing electricity without having to carry the burden of past investment decisions as Edison does. MOTION: Councilman Seymour moved that the City Council authorize forwarding of the letter of intent for the City of Anaheim to participate in San Onofre Units 2 and 3. Councilwoman Kaywood seconded the motion. Under discussion of the motion, Councilman Kott explained that he has not been con- vinced that he has before him information which would dictate that he vote for the City to become part of this project in the best interest of the taxpayers of the community. He remarked that he has not seen any guarantee from R. W. Beck and Associates that if the City invests the $51 million that what the charts and tables show will actually come true. He commented that R. W. Beck and Associates made projections also regarding lower electric bills for the consumer prior to the Pro- position A (electrical generation bonds) election and these projections have not come true. In response to Councilman Kott, Councilman Seymour pointed out that it is difficult if not impossible, for anyone to provide information at any time that is going to absolutely guarantee some specific event to occur, and this is especially true in the field of electrical generation. He further commented that the negative attitude which has been conveyed by Councilman Kott relative to San Onofre is a carry over of a negative attitude to the electrical generation bond issue which was approved by the voters on a ratio of two to one. The approval of that bond issue directed the City Council to seek out reasonable and hopefully profitable ways of involving the City in generation of electricity and, in fact, to spend up to $150 million in this endeavor. He recalled that at the March 29, 1977 joint meeting with the Public 77-378; City Hall, Anaheim, California - COUNCIL MINUTES - April 5, 1977~ 10:00 A.M. Utilities Board, Councilman Kott offered a motion, which was seconded by Mayor Thom, to instruct the Public Utilities Board to get figures together regarding the sale of the City's electrical distribution facilities and that this demon- strates that their basic attitude is one of opposition to the City being involved in the electrical business in any way, either distribution or generation. Council- man Seymour pointed out that he too, if he were of that conviction, would also oppose every generation project no matter what the data looked like and how much of it there was. Relative to the bond issue which promised savings, Councilman Seymour felt that the public was not hood~ ~ked into voting for it, that according to the ballot arguments, the savings promised were savings which would occur as a result of the City's participation in generation projects, and since the City is not yet a partici- pating member in any of the generating projects, the savings cannot be there, He concluded that he feels the City has done an admirable job in maintaining rates below or the same as Southern California Edison during this period prior to its participation in generation. Councilwoman Kaywood stated that there is no question that Anaheim retail rates were lower than Edison's for many years, but the times dictated something which had never been foreseen in the cost of fuel. She felt that these decisions relative to electrical generation projects are analogous to those decisions made by our prede- cessors in California who had sufficient vision to construct the water distribution system which enables the current populations to reside in Southern California, Councilman Roth indicated support of the motion based on the necessity for the City to be able to supply power to additional industrY, al growth and because of the po- tential future annexations and development of 14,400 acres of land in the Hill and Canyon area. The foregoing motion was carried by the following vote: AYES: NOES: COUNCIL MEMBERS: Kaywood, Seymour and Roth COUNCIL MEMBERS: Kott and Thom MOTION CARRIED. 175: GENERATION - INTERMOUNTAIN POWER PROJECT BALLOT MEASURE: Councilman Seymour introduced for discussion the subject of the Intermountain Power Project, reCalling that it is his understanding this project will be formed by a partnership or Joint powers arrangement with other utility companies and that the Joint powers partner- ship so formed would then sell bonds, for which the City and citizens of Anaheim would be responsible for payment, the amount estimated at $600 million~ He noted that as he understands the proposal, voter approval to enter this project is not necessary. However, he stressed that he feels anytime the City is contemplating bonding or large capital improvements they should go to the voters for approval. Therefore he questioned whether the Council would be interested in setting this matter for a ballot decision in November 1977, inasmuch as the Council will be asked to make the decision as to participation in the Intermountain Power Project in approximately December, 1977. 77-3~79 City Hall, Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 10:00 A.M. Mayor Thom indicated that he would never consider encumbering the rate payers of the utility by such magnitude without their approval at an election. He commented that he could see no potentiality of the City being able to fiscally survive in- volvement in a business with such large capital requirements. He called attention to the fact that these investments would provide the City with only 20% of its energy demand needs and 80% would still have to be purchased from Southern Califor- nia Edison. MOTION: On motion by Councilman Seymour, seconded by Councilman Roth, the City Council directed the City Manager, City Attorney and Utilities Department to pre- pare a ballot question to be placed before the voters in November of 1977 request- ing approval of the City's entry into the Intermountain Power Project. Under discussion of the motion, Councilwoman Kaywood inquired whether the City has any money currently involved in this project to which Mr. Hoyt replied that the City currently is continuing to pay the ongoing costs for studies associated with Intermountain Power and Sundesert Projects as well as any other project in which they might hope to become involved. Should the City withdraw and the project go forward, then the monies spent on studies would be refunded to the City in time; however, should the City Withdraw and the project not go forward, then the City would have to write off an expense on the cost of participation. He commented that even though the costs of participation are very high, according to the information presented by the City's consultants this morning, there would still be a savings for the City in the magnitude of 30%. He concluded that his recommendation in these projects is based on the objective of providing a reliable power supply for the City at the best available cost. Prior to voting on the motion, Councilman Seymour wished to go on record that if Council vote continues to be split with two dissenting votes as it was this date on the San Onofre Project, that he would not support the Intermountain Power Pro- ject unless it is placed before the electorate for their approval first. Councilman Kott reiterated that he viewed these generation investments as a risk and a gamble and in his opinion the risk was too great. In response to Councilwoman Kaywood's remarks regarding the parallel between generation projects for future electricity and the water projects accomplished in the past, he concurred with her that in the case of water the present population would not have the systems but in the case of electricity this is not so. A vote was taken and the foregoing MOTION CARRIED. ADJOURNMENT - PUBLIC UTILIT%ES BOARD: On motion by Mr. White, seconded by Mr. Kiefer, the Public Utilities Board adjourned. MOTION CARRIED. (11:40 A.M.) ADJOURNMENT - CITY COUNCIL: Councilman Thom moved to adjourn. Councilman Seymour seconded the motion. MOTION CARRIED. Adjourned: 11:40 A.M. LINDA D. ROBERTS, CITY CLERK City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 19775 1:30 P.M. 77-380 The City Council of the City of Anaheim met in regular session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom COUNCIL MEMBERS: None CITY MANAGER: William O. Talley CITY ATTORNEY: William P. Hopkins CITY CLERK: Linda D. Roberts STADIUM-CONVENTION CENTER-GOLF DIRECTOR: Thomas Liegler CITY ENGINEER: James Maddox ASSISTANT PLANNING DIRECTOR - ZONING: Annika Santalahti AUDIT SUPERVISOR: Young Choi PUBLIC INFORMATION OFFICER: Ken Clements Mayor Thom called the meeting to order and welcomed those in attendance to the Council meeting. INVOCATION: Reverend Warren Pittman of St. Michael's Episcopal Church gave the Invocation. FLAG SALUTE: Councilman Don Roth led the assembly in the Pledge of Allegiance to the Flag. RESOLUTION OF CONDOLENCE: A Resolution of Condolence for the family of Mr. Richard A. Morley, City Planning Commissioner, on his untimely passing was unanimously author- ized by the City Council. MINUTES: On motion by Councilwoman Kaywood, seconded by Councilman Seymour, minutes of the Anaheim City Council regular meeting held February 15, 1977 were approved subject to corrections. MOTION CARRIED. WAIVER OF READING - ORDINANCES AND RESOLUTIONS: Councilwoman Kaywood moved to waive the reading, in full, of all ordinances and resolutions and that consent to the waiver of reading is hereby given by all Council Members unless, after reading of the title, specific request is made by a Council Member for the reading of such ordinances or resolution. Councilman Thom seconded the motion. MOTION UNANIMOUSLY CARRIED. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $500,870.03, in accordance with the 1976-77 Budget, were approved. 123: CEDRIC WHITE~ M.A.I.~ APPRAISAL SERVICES~ PROPOSED FIRE TRAINING FACILITY SITE (SE corner of Oran~ewood and Rampart): Councilman Kott offered Resolution No. 77R-222 for adoption as recommended in memorandum dated March 8, 1977, from the City Engineer. Refer to Resolution Book. RESOLUTION NO. 77R-222: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A LETTER AGREEMENT WITH CEDRIC A. WHITE FOR APPRAISAL SERVICES AND AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF ANAHEIM. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-222 duly passed and adopted. 77-381 ~City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977, 1:30 P.M. 175: CHANGE ORDER NO. 1 - WORK ORDER NOS. 1655 AND 1656 - AREA WIDE WATER IMPROVE- MENT: (Community Development Block Grant Program) On motion by Councilman Kott, seconded by Councilman Roth, Change Order No. 1 in the amount of $33,132 (credit) to Work Order Nos. 1655 and 1656, Community Development Block Grant Program Area- wide Water Improvement, Ace Pipeline Construction, Inc., contractor, was approved as recommended in memorandum dated March 28, 1977 from the City Engineer, bringing the contract price to $228,450.50. MOTION CARRIED. 123: GARCIA AND HUDSON AGREEMENT - FOOD AND BEVERAGE CONCESSION AT ANAHEIM HILI.$ MUNICIPAL GOLF COURSE: (Termination of prior agreement and authorization of new agreement with new concessionaire.) Mr. Tom Liegler, Stadium-Convention Center- Golf Director, briefed the Council on his report dated March 29, 1977, recommending termination of the concessionaire agreement at Anaheim Hills Municipal Golf Course with Yates Investment, Inc., at Mr. Yates' request and authorizing a new agreement for the same services with John R. and Kathleen H. Garcia and Ruth C. Hudson. At the request of Councilman Seymour, Mr. Liegler explained that the new agreement with Garcia and Hudson was identical with that of Yates in terms of return to the City, but it was streamlined to give the City a better control and greater voice in the operation. Also, all past debts due by Yates were to be paid by the proposed new concessionaires and all such contractual obligations due the City were made part of the escrow between Yates and Garcia/Hudson. Relative to the experience of the new concessionaires, Mr. Liegler explained that they operated a successful restaurant in Garden Grove and that their desire and intentions were compatible with the City's goals: (1) to provide a service to the golfing community and, (2) provide a restaurant service to the area and community of Anaheim Hills in terms of quality, service, fair prices and quantities with the ultimate goal to make money. Mr. Liegler also explained that they were residents of Anaheim Hills thus providing local representation. Councilwoman Kaywood questioned Item No. XIV, Page 7, of the agreement relative to material breach. City Attorney Hopkins assured Councilwoman Kaywood that there was adequate protec- tion for the City in the wording which applied both ways. Mr. John Garcia stated that plans were to provide a nice restaurant with Mexican food for the people of Anaheim Hills, opening early in the morning for breakfast, serving lunch and dinner, eventually with a closing time of 10:00 or 11:00 p.m. and extending the bar closing time to 2:00 a.m.. Mr. Garcia further explained that he had been in the restaurant business since he was twelve years old and owned Chico's restaurant in Garden Grove for two years. He would also be the cook at Anaheim Hills. He did not plan to lose money on the undertaking and was enthusi- astic and optimistic relative to its potential, and in the future plans to expand the restaurant to make it a dinner house. He confirmed for Councilwoman Kaywood that he did plan to open for breakfast and lunch, starting at 7:00 a.m. and closing at 8:30 p.m.. As business progressed, the hours would be extended as previously explained. He clarified that the restaurant in Garden Grove would also be retained. Councilman Roth offered Resolution Nos. 77R-223 and 77R-224 for adoption as recom- mended in memorandum dated March 29, 1977, from Tom Liegler. Refer to Resolution Book. 77-382 City Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. RESOLUTION NO. 77R-223: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH YATES INVESTMENTS, INC., TERMINAT- ING THE AGREEMENT DATED NOVEMBER 6, 1973, FOR THE OPERATION OF A FOOD AND BEVERAGE CONCESSION AT THE ANAHEIM HILLS MUNICIPAL GOLF COURSE. RESOLUTION NO. 77R-224: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH JOHN R. GARCIA, KATHLEEN H. GARCIA, AND RUTH C. HUDSON FOR THE OPERATION OF A FOOD AND BEVERAGE CONCESSION AT THE ANAHEIM HILLS MUNICIPAL GOLF COURSE. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL Mk~MBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution Nos. 77R-223 and 77R-224 duly passed and adopted. 153: ANAHEIM POLICE ASSOCIATION - POLICE SAFETY EQUIPMENT: The Mayor stated that a request had been received from a representative of the Anaheim Police Associa- tion to address the Council on the matter of Police safety equipment. When he became aware of their request, he contended it should be scheduled on the agenda. However, this caused staff a problem. He preferred that the discussion as to whether or not the Council would honor the request be taken up publicly and the subject of the request privately. He stressed that he would never discuss privately whether or not he would honor anyone's request to appear and wanted that aspect of the issue resolved before discussing the subject matter in Executive Session. For clarification purposes, as requested by Councilman Seymour, the Mayor read a letter dated March 28, 1977 received from Richard Goldman of Steven Warren Solomon, Inc., addressed to the City Clerk regarding police safety equipment on behalf of the Anaheim Police Associa- tion requesting the earliest date available on the Council agenda to hear the matter. City Manager Talley interjected that what was not stated in the letter was the fact that a separate letter was filed with his office demanding certain other things that he would prefer discussing in Executive Session since he did not have an opportunity to show the other letter to the Council. The ~nly purpose of the Executive Session would be to assure the Council understood all the ramifications of the request as far as staff was concerned before a decision was made. The Mayor reiterated that two issues were, (1) potential litigation and, (2) the request to address the Council. He would not discuss whether or not it was appro- priate for the Anaheim Police Association to address the Council, such a request was appropriate for everyone and he wanted that issue resolved in a positive, affirmative fashion. Councilman Seymour asked City Attorney Hopkins whether or not the matter could be discussed in Executive Session and, if so, his opinion as to the proper course of action. Mr. Hopkins stated that the subject matter involved potential litigation and for that reason he and the City Manager suggested it be heard in Executive Session to review the entire matter for subsequent open discussion if the Council wished to do so. Although anyone could address the Council, the subject matter was 77-3 8~ City Hall, Anaheim, California - COUNCIL MINUTES - April 5, 1977, 1:30 P.M. such that it would be advisable for the Council to first consider all of the ramifications, which matter involved the Police Association's attorney and possible resultant litigation. Mr. Hopkins confirmed for Councilman Seymour that on this particular subject, he was recommending it be discussed in Executive Session and subsequently a decision made as to whether or not the Association would be permitted to address the Council. Council Members Seymour, Kaywood and Roth agreed that the matter should first be discussed in Executive Session as recommended by the City Attorney. Mayor Thom stated, for the record, that he would not take part in the Executive Session. 128: AUDIT REPORT - ANAHEIM STADIUM PARKING LOT: Councilman Kott referred to Audit report of the Anaheim Stadium parking lot dated February 25, 1977 (on file in the City Clerk's Office) and questioned the City Manager relative to the basis upon which a petty cash audit was initiated and further, took issue with some of the recommendations made as being inappropriate for an Auditor to make as opposed to the particular department head. Mr. Talley explained that he tried to make the audit function as independent as possible and requested that prudent judgment be used in verifying or checking procedures having to do with every aspect of handling financial matters or dollars in the City. In the case of the Petty Cash Fund, the auditors chose to examine the six major funds which totaled 88% of all petty cash funds in the City and amongst those included were the Library and the Stadium. Relative to some of the recommendations made, Mr. Talley stated that C.P.A. and Governmental guidelines, as well as Federal Revenue Sharing guidelines, supported the view that an auditor should not only provide a balance sheet, but also point out operational discrepancies or poor practices. When something incorrect was found and in their estimation should be changed, a professional auditor had an obliga- tion to point out such discrepancies. Councilman Kott specifically referred to the situation where the Stadium parking lot audit revealed a shortage of funds of $1,500, yet he could not find any reference in the entire report indicating the department head was contacted to seek his concurrence or input. He checked personally and did not find that any communica- tion had taken place between those who performed the audit and the department head nor had Mr. Liegler even seen the report. Mr. Talley disagreed with Councilman Kott's assessment and explained that he talked to Tom Liegter about the matter on two occasions. Although he may not have seen the audit itself describing what was found, the conditions were described to him, the matter discussed, and subsequently he (Liegler) filed proposed control procedures with the City Manager's Office. 77-38'4 ~ity Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Discussion followed revolving around the joint use of the vault in Anaheim Stadium, and Mr. Talley explained for Councilman Kott that the problem was one of accounta- bility. When money was stored in somebody else's vault where there was no direct access to it but through another person, it was difficult to pinpoint the responsi- bility if something was missing. The auditors recommended that the City look at other alternatives. When the shortage was found, the supposition was made that it occurred during the transfer of monies between two individuals and possibly the funds were counted as parking funds instead of change funds. However, no one knew how it occurred. The Angels had control of the vault and not the City. Therefore, the auditor merely suggested that if the City had another way of safeguarding their change fund, this would be more appropriate. Councilman Kott thereupon asked Mr. Liegler his views surrounding the missing money and the suggested method of control. Mr. Liegler prefaced his explanation by stating he asked for on regular occasions routine audits of all his divisions and that he welcomed City audits which were beneficial for annual checkups. Normally, he received a copy of all the audits for a first draft review. In this case, he did not receive a copy but he did meet with Young Choi, Audit Supervisor, Kent Lem, Staff Auditor, and Ron Rothschild, Senior Administrative Analyst, to review the problem. Since he had not seen the audit report, professionally he could not comment. Since he did know the subject matter, he wrote a commentary to the City Manager relative to the problem. He explained that there were two on-going Change Funds which were accounted for on a daily basis and the $1,500 shortage occurred on the final event of 1976. Mr. Liegler further explained that after investigating the matter thoroughly with Dick Benson, the Parking Lot Manager, it was concluded that the error was an accounting one which occured between the last event in December and the time the auditors found that the money was missing. He was of the opinion that one safe and the safeguards used in the process were sufficient. By chance, the one person responsible was sick and had to go home slightly early the night of the last event in December. Therefore, the monies that could not get into the vault were put into another safe and the next day were transferred to the main safe and subsequently picked up and taken to the bank. Between that time and when the audit was taken, the money evaporated. Mr. Liegler emphasized evaporated rather than stolen because it was his strong opinion that no one associated with the Angels or City staff, either part-time or full-time, would have taken the small amount of money involved when the opportunity was ever-present to take substantial amounts of money at any time although a check was made nightly. In answer to Councilman Roth, Mr. Liegler explained that the dual use of the vault by both the Angels and the City was a case of semantics and practicability and in accordance with the City's agreement with the Angels, the City operated the Stadium and the Angels maintained office space on a year-round basis, but the ticket office was theoretically a responsibility of the City for all practical purposes. One person was responsible for the vault, acting as a joint user for the Angels, the City, and City tenants. This person was an Angel employee on a year-round basis and a part-time City employee. Mr. Liegler considered it to be impractical to have another vault for the small amount of use it would get. Further discussion followed between Councilman Kott and City Manager Talley relative to the benefits derived from audits such as those conducted. 77-385 ~ity Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Mr. Talley then explained for Councilman Kott that it cost $480 to perform the parking lot audit which he considered to be a minimum expense to audit funds in excess of $20,000 which funds had not been audited for over three years. He contended that substantial abuses could have been found and that was the purpose of the audit. Councilman Kott stressed that an audit should be meaningful and not harassment to the department involved. He was of the opinion that the audit was an harass- ment. Mr. Talley agreed that an audit should be meaningful and if it appeared to be harassment, he apologized. However, the intent was to continue to assure the Council that the funds of the City were being used properly and correctly and in those instances where it was found to be otherwise, it should be pointed out. Mr. Liegler requested of the City Manager that the present discussion not deter from his goals and requests to be audited on a regular basis. In answer to Councilwoman Kaywood, Mr. Liegler stated that he did not consider that any harassment was involved in the audit. His concern was that if items relative to his divisions were involved, he would like to have known what the accusations were beforehand and he would like to have seen that portion of the report related to his divisions. As yet, he was not aware of exactly what the report said. Councilman Kott stated that he was not opposed to audits, but the department head involved should be consulted if questionable practices evolved from the audit. Mr. Talley agreed that Mr. Liegler should have seen that portion of the report re- lating to his department rather than verbally discussing the matter with him and the same was true of the Library Facility Petty Cash Fund. He indicated, however, that a draft of the report was filed with both departments. He further maintained that a good, well-rounded, consistent, and surprise audit schedule be followed in the City to make sure the funds of the City were being treated in an appropriate manner. Audit Supervisor, Young Choi, explained for Councilman Seymour that the department heads received a copy of the draft report by mail distributed March 31, 1977, and there was no major difference between the draft and the final. The final was sent to the City Manager and the City Council only, but the draft report was discussed with each department head. He reiterated there were no major differences and that the recommendations were the same. Further discussion followed between the Council and Mr. Choi relative to, and clarifying, some of the recommendations that were made in the report. Councilman Seymour concluded that the amount of time spent at the request of Council- man Kott discussing the Petty Cash Audit was an attempt to glean something that was not there. Instead, he saw a wedge being driven between the City Manager and depart- ment heads, a matter which was of great concern to him. He maintained that if the breakdown in communication or line of authority and responsibility deteriorated, the City Council would be managing the City rather than the City Manager. 77-3~86 City Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Councilman Seymour recalled when he took office in 1974, the first job of Arthur Young was to take a look at the City's Budget and Audit Division, the result of which was that the division was almost totally eliminated because audits were not being performed. Since that time, restaffing of the Budget and Audit Division had occurred, and Councilman Seymour commended them for their efforts in auditing and asserted that they should be urged to continue the type of audit practices being carried on in the past 1½ years. If any mistake was made in the particular audit in question, it was that the report should have been handed to the department head involved, who in turn should have had full approval or the right to debate it or discuss it before the report was submitted to the Council. He reiterated his concern with an attitude that appeared to challenge the City Manager at every turn, discrediting him in the eyes of department heads, and con- sidered that that type of attitude could only cause chaos within the administra- tion of the City. If it continued, he predicted the City was going to be losing some valuable department heads. Councilman Kott stated that Councilman Seymour read a number of things into comments that were made. He was not opposed to audits but he predicted that if the present practices continued the City would, in fact, lose department heads as he had talked to some of them. Councilman Kott then relayed a similar incident regarding an audit of the Visitor's and Convention Bureau which resulted in the dismissal of an employee who prepared the Council-requested audit which, in Councilman Kott's estimation, was not an audit but a historical background and not what he wanted. When Councilman Kott discussed the matter with the employee, indicating it was not the kind of audit he was interested in, he (Kott) was told by the employee that if the original audit as prepared was presented, he (employee) was not going to be around much longer. As a subsequent meeting the City Manager admitted that he did say that to the employee indicating that since he worked for him, he was required to do things the way he was directed to do them. Councilman Kott continued that the employee was no longer in the employ of the City. Councilman Seymour asserted that as long as Anaheim had a Council/Manager form of government, then it was the City Manager's responsibility to direct and be respon- sible for the activities of the Auditor, as well as all City department heads and all City employees. When the authority of the top Executive Administrative Officer was usurped, chaos in the ranks would follow. He contended that if such matters were constantly broached in public and queried in the foregoing fashion, it was not only demeaning to the department heads involved, but also the City Manager. 123: DAN L. ROWLAND & LE ROY ROSE & ASSOCIATES~ ARCHITECTURAL SERVICES FOR CIVIC CENTER PROJECT: Councilman Kott offered Resolution No. 77R-225 for adoption as recommended in memorandum dated April 1, 1977 from the City Attorney's Office. Refer to Resolution Book. RESOLUTION NO. 77R-225: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AN AGREEMENT FOR ARCHITECTURAL SERVICES WITH DAN L. ROWLAND AND ASSOCIATES, INC. AND LE ROY ROSE AND ASSOCIATES, AND AUTHORIZING THE EXECUTION THEREOF. C~it~v Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Seymour, Kott and Thom NOES: COUNCIL MEMBERS: Roth ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 77R-225 duly passed and adopted. 130: TERMINATION OF EXISTING CATV FRANCHISE WITH THETA CABLE OF CALIFORNIA: 77-387 Councilman Kott offered Resolution No. 77R-226 for adoption as recommended in memorandum dated March 28, 1977 from the City Attorney's Office. Refer to Reso- lution Book. RESOLUTION NO. 77R-226: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM RESCINDING RESOLUTION NO. 73R-388 ADOPTING RULES, REGULATIONS OR SPECIFICATIONS OF CONSTRUCTION, OPERATION AND MAINTENANCE OF A CABLE TELEVISION SYSTEM. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-226 duly passed and adopted. ORDINANCE NO. 3677: Councilman Kott offered Ordinance No. 3677 for first reading. ORDINANCE NO. 3677: AN ORDINANCE OF THE CITY OF ANAHEIM REPEALING ORDINANCE NOS. 3179 AND 3192 RELATING TO THE GRANT OF A CABLE ANTENNA TELEVISION FRANCHISE TO THETA CABLE OF CALIFORNIA. 113: CONFLICT OF INTEREST CODES - BOARDS AND COMMISSIONS: City Attorney Hopkins referred to his report dated April 1, 1977 resulting from a review of Conflict of Interest Codes. It was determined under the California Political Reform Act of 1974 that boards and commissions were not required to have such codes in that their function was a purely advisory one with no final or dispositionary authority. Deleted were the Housing, Golf Course, Cultural Arts, and Park and Recreation Com- missions and the Community Services, Public Utilities and Library Boards. Mr. Hopkins further explained that relative to City employees, his office had reviewed depart- mental requirements previously specified and had gone as far as possible in elim- inating employees not required to file codes. However, since changes were issued quite frequently from the Fair Political Practices Commission releasing many of their original stringent requirements, he would make another review of the matter. In answer to Councilwoman Kaywood, Mr. Hopkins confirmed the codes were still neces- sary for the Redevelopment Agency and the Housing Authority just as with the Council. Councilman Thom offered Resolution No. 77R-227 for adoption as outlined in a report dated April 1, 1977 from the City Attorney. Refer to Resolution Book. 77-388 .City Hall, Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. RESOLUTION NO. 77R-227: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DELETING CERTAIN ADVISORY BOARDS AND COMMISSIONS FROM RESOLUTION NOS. 76R-469, 76R-552, AND 76R-812 REQUIRING SAID BOARDS AND COMMISSIONS TO ADOPT A CONFLICT OF INTEREST CODE. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-227 duly passed and adopted. 105: APPOINTMENT OF REMAINING MEMBERS TO THE HILL AND CANYON MUNICIPAL ADVISORY COMMITTEE (HACMAC): The remaining six appointments to the HACMAC were made as follows: Councilman Kott appointed Mr. Tom Beckett, 714 South Camino Grande, Mr. Hans Gowa, 531 Paseo De Luna, and Mr. Red Moltz, 791 Circulo Miro. Council- man Roth appointed Mr. Ron Allen, 401 Paseo Real, Mr. Mike Perry, 4365 Alderdale Avenue, and Mr. Jerry Walsh, 995 South La Salle Circle. RECESS: By general consent, the City Council recessed for five minutes. (2:55 P.M.) AFTER RECESS: Mayor Thom called the meeting to order, all Council Members being present. (3:00 P.M.) 174: PUBLIC HEARING - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM~ THIRD YEAR APPLI- CATION AND THE HOUSING ASSISTANCE PLAN: To obtain the views and preferences of residents on the proposed application for Third Year Community Development Block Grant activities. Executive Director, Norm Priest, explained that the proposed application was one that had previously been brought before the Council on two occasions with the only substantive changes being in the Housing Assistance Plan (HAP) as explained in his memorandum dated March 29, 1977. The Mayor asked if anyone wished to be heard relative to the Third Year Application for the Community Development Block Grant Program; there being no response, he closed the public hearing. Councilman Seymour offered Resolution No. 77R-228 for adoption as recommended in memorandum dated March 29, 1977 from the Executive Director, Community Development Department. Refer to Resolution Book. RESOLUTION NO. 77R-228: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND FILE AN APPLICATION FOR A COMMUNITY DEVELOPMENT BLOCK GRANT PURSUANT TO THE HOUSING AND COMMUNITY DEVELOP- MENT ACT OF 1974. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-228 duly passed and adopted. 77-389 City Halt~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 1687: Application by Larry R. Smith, to permit on-sale beer in a proposed billiard parlor and arcade on CL zoned pro- perty located at 951 South Knott Street. The City Planning Commission, pursuant to Resolution No. PC77-51 reported that the Planning Director has determined that the proposed activity falls within the definition of Section 3.01, Class 1, of the City of Anaheim Guidelines to the requirements for an Environmental Impact Report and is, therefore, categorically exempt from the requirement to file an EIR and further, recommended that Condition- al Use Permit No. 1687 be denied. The Planning Commission action was appealed by Thomas Ferruzzo, Attorney for the Applicant, and public hearing scheduled this date. Miss Santalahti described the location and surrounding land uses. She outlined the findings given in the staff report which was submitted to and considered by the City Planning Commission. Miss Santalahti further clarified for Councilman Kott that liquor was being sold in close proximity to the proposed billiard parlor and the Planning Commission maintained that to permit on-sale beer would have a cumulative effect. The Mayor asked if the Applicant or Applicant's Agent was present and desirous of being heard. Mr. Thomas Ferruzzo, 2333 North Broadway, Suite 20, Santa Ana, Attorney for the Applicant, illustrated from a map the three different types of businesses in the commercial block where the proposed billiard parlor was to be located, consisting of a nursey school, and two similar establishments, The Sting and The French Quarter, both with nightclub atmospheres. The building adjacent to the French Quarter was the location of the proposed family billiard parlor with requested beer license. Mr. Ferruzzo also elaborated on the surrounding uses and he was of the opinion that there would be no prejudice to anyone in permitting on-sale beer in the billiard parlor. He also considered the billiard parlor to be a cushion between the other two establishments and the nursey school, which establish- ments were not conducive to a family-type atmosphere. He stated that there would be hardship to the billiard parlor if they had to compete without a beer license not only with adjacent businesses, but also other billiard establishments in Anaheim who had an on-sale beer license. He also explained that neither the nursery school nor the bureau which licensed them had any objection to the proposed adjacent use. In answer to Councilwoman Kaywood, Mr. Ferruzzo stated that the billiard parlor would be used mainly by youth 14 to 18 years old. Further, their intent was not to sell beer with food, but in the form of a refreshment incidental to the billiard parlor. Although they could sell beer to take out depending on the type of license acquired, it was not their intent nor would they do so; it would be for their patrons on the premises. The Mayor asked if anyone wished to speak ~ither in favor or in opposition, there being no response, he closed the public hearing. 77-390 City Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. RESOLUTION: Councilwoman Kaywood thereupon offered a resolution denying Condi- tional Use Permit No. 1687 based on the Police report relative to existing police problems, resultant problems that would be created outdoors because take-out beer would not be prohibited, and the possible detriment to children. The resolution failed to carry by the following vote: AYES: NOES: COUNCIL MEMBERS: Kaywood and Seymour COUNCIL MEMBERS: Kott, Roth and Thom Councilman Seymour explained that he voted "No" because there was no justification for compounding the sale of beer adjacent to a nursery school even though it was permitted in the two existing establishments. The Mayor stated that he could not deny the conditional use permit for the proposed use particularly when the petitioner's neighbors have a like use as well as other businesses in the City. Although he preferred that there be no nursery school next door, if they did not object, he would find it difficult to object. In answer to Councilman Kott, Miss Santalahti clarified that the Police Department made a comment in their report to the Planning Commission on the police problems in the existing two facilities. Their contention was that the proposed use might also attract such problems. Councilman Kott offered Resolution No. 77R-229 for adoption granting Conditional Use Permit No. 1687 subject to the following Interdepartmental Committee recom- mendations. 1. That trash storage areas shall be provided in accordance with approved plans on file with the Office of the Director of Public Works. 2. In the event that subject property is to be divided for the purpose of sale, lease, or financing, a parcel map, to record the approved division of subject property shall be submitted to and approved by the City of Anaheim and then be recorded in the office of the Orange County Recorder. 3. That subject property shall be developed substantially in accordance with plans and specifications on file with the City of Anaheim marked Exhibit Nos. 1 and 2. 4. That Condition No. 2, above-mentioned, shall be complied with prior to the commencement of the activity authorized under this resolution, or prior to the time that the building permit is issued, or within a period of one year from date hereof, whichever occurs first, or such further time as the Planning Commis- sion and/or City Council may grant. 5. That Condition Nos. 1 and 3, above-mentioned, shall be complied with prior to final building add zoning inspections. Refer to Resolution Book. RESOLUTION NO. 77R-229: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 1687. ~ity Hall, Anaheim, California - COUNCIL MINUTES - April 5, 1977, 1:30 P.M. 77-3.91 Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kott, Roth and Thom Kaywood and Seymour None The Mayor declared Resolution No. 77R-229 duly passed and adopted. PUBLIC HEARING - VARIANCE NO. 2913: Application by Cai-American Income Property to establish an auto and boat repair facility on CL zoned property located at the southeast corner of Lincoln and State College Boulevard with code waiver of per- mitted uses. The City Planning Commission, pursuant to Resolution No. PC77-64 recommended that the subject property be declared exempt from the requirement to prepare an Environ- mental Impact Report pursuant to the provisions of the California Environmental Quality Act and, further recommended that Variance No. 2913 be denied. The Planning Commission action was appealed by Peter F. Smeets, Attorney for the Applicant, and public hearing scheduled this date. Miss Santalahti described the location and surrounding land uses. She outlined the findings given in the staff report which was submitted to and considered by the City Planning Commission. The Mayor asked if the Applicant or Applicant's Agent was present and desirous of being heard. Mr. Peter F. Smeets, 500 South State College Boulevard, Attorney for the Applicant, spoke to the reasons why his client's petitions for variance was denied by the Planning Commission. He emphasized, however, that commercial tenants of the shop- ping center wherein his client's business was located had no objections at all and the surrounding commercial use was in no way hampered by the auto and boat repair facility. Relative to the surrounding residential area and the objection raised by two people at the Planning Commission hearing, Mr. Smeets emphasized there was no residential area in the immediate vicinity and presented photographs showing distances of the facility to the people who objected. He explained that to the contrary there were several neighbors present who lived in closer proximity to the business who would testify they had no objections regarding noise. Mr. Smeets stated that although the Planning Commission indicated the petitioner did not demonstrate a hardship, one definitely existed in that a new lease was negotiated on the building currently occupied by his client in anticipation that K-mart would move in and take over the building since the Hansen Development Com- pany was in the process of concluding a lease with them, which lease would generate new people and new revenue. If his client was not allowed to continue his business, there was a possibility that the K-mart lease could be in jeopardy. Mr. Smeets stated further that relative to traffic, the objections were of no sub- stance and he also refuted the claim that his client was open until 8:00 or 9:00 at night; he testified that the shop was closed at 5:30 or 6:00 p.m.. He stressed 77-392 City Hall, Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. that his client had built a good business, continuing what Grants had been doing previously; that his operation was a very clean one of benefit to those surround- ing it with no adverse impact. In answer to Councilwoman Kaywood, Mr. Smeets stated that when the lease was origi- nally negotiated with Hansen Development Company, his client was not told of uses not permitted, but to the contrary. Miss Santalahti explained for Councilman Roth that Grants was operating legally in the subject location as it was their right to do so just as the new tenant as long as they remained in the existing location. When relocation was discussed, however, it was decided that the business was no longer a legitimate non-conforming use, but expanded and changed enough to where they would have to file for a variance. Councilman Seymour questioned Mr. Smeets regarding the implication that K-mart would cancel their lease if the Council did not grant Variance No. 2913. Mr. Smeets explained that K-mart had not entered into a lease, but was involved in negotiations. If his client could not stay or relocate, then he would have to take possible legal actions against Hansen which would be detrimental to the potential K-mart contract. Although he could not give assurance if the petition for variance were granted, K-mart would move in, he stated that chances would be better. The Mayor asked if anyone wished to be heard either in favor or in opposition. Mr. Sylvester Shannon, 2312 East Paradise Road, was opposed to the granting of Variance No. 2913 because of the noise and air pollution generated in tuning up boats and running a dune buggy with straight pipes across an empty lot. The following people spoke in favor of the Applicant and the granting of Variance No. 2913 for the below listed reasons and supporting comments: Mr. Tom Rofer, address unknown, Mr. Irvin Wayne, 2233 East Westport, Mrs. Margaret Eckleman, 2218 Westport, Mr. Sikora, Sikora's Bakery, 2016 East Lincoln, Mr. Bob Sherwood, Sochat's Jewelers, 2218 East Lincoln, Mr. Gary Gardner, 2404 "B" North Glassell, Orange, Mr. Kenneth Wood, Wood's Stationery, 2030 East Lincoln. 1. It is doubtful that the noise problem is caused by the applicant's business. It is gratifying to know that an honest person is still in the automobile business and an extended closing time would be even more desirable. 2. The noise is not bothersome even to those residents who live directly across from the garage on Westport; dune buggies were only at the facility for a short time. 3. Ail the elderly people on Westport speak well of the business and are pleased to know that it is there and can be depended upon if there is any trouble. 4. The business has made the shopping center much better and brighter. No differ- ence in noise level between the prior tenants, Grants, and the present user even with the inclusion of boats. C_ity Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. 77-393 5. The business is not open at night or after closing hours. 6. The noise level is not offensive. 7. The business is an asset to the community and a very neat, clean operation. Councilman Seymour asked Mr. Wood, the last person to speak in favor of the variance, whether the reason why so many tenants of the East Anaheim Shopping Center were defending the Applicant was because his was a good sound business, an asset and should be allowed to continue or was it the possibility that K-mart would move in and bring people and customers to their stores. Mr. Wood stated from his standpoint he considered it to be a good sound business and should be allowed to continue. He also stated he was not certain, in his own mind, relative to the merits of K-mart being a tenant in the center. Councilman Roth questioned Mr. Ranson relative to the procedure used in rewing up boats, as well as controls used to mitigate noise. Mr. Peter Ranson, auto and boat crew, 2140 East Lincoln, explained the procedure and also emphasized it was done with the tail of the boat in the shop, thereby the noise was muffled on the inside rather than outdoors. Mr. Smeets interjected that the new proposed building would be located so that the noise would be reduced to an even greater extent; the front of the building facing Lincoln and the back facing Westport. Although there would be some noise, it would not be objectionable. Referring to the six-foot high chain link fence on the south side of the proposed building which would enclose an area of 1960 square feet, Councilman Seymour wanted to know if the plan was to have just an open fence. Mr. Ranson stated that the fence would have lattice work put into it with the possibility of some kind of design so as to prevent any eyesore. Mr. Smeets emphasized for Councilman Seymour that he did not want to give the impression that he was using the K-mart situation as a threat of any kind. There being no further persons who wished to speak, the Mayor closed the public hearing. Councilwoman Kaywo0d asked the City Attorney if the variance could be tied to the particular user or a time limit placed thereon. City Attorney Hopkins stated that a time limit would be possible for a year or more. Miss Santalahti stated that one year was a short period of time and if any of the conditions were violated, no matter what length of time was placed upon the variance, it could be revoked. Mr. Hopkins confirmed however that such revocation would require a public hearing. 77-~4 City Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Both Councilman Seymour and Mayor Thom pointed out that since the Applicant's investment into a new building would be considerable, if a time limit was placed on the variance, such an investment would be doubtful. Councilman Roth wanted to be certain that the residents were protected in the evening hours relative to the closing time and asked if the Applicant would stipulate to a 6:00 p.m. time; Councilman Seymour wanted confirmation that the chain link fence would be interwoven with plastic or redwood. Both Mr. Ranson and Mr. Smeets stipulated to a closing time of 6:00 p.m. and that metal or plastic slats would be installed in the chain link fence. Councilwoman Kaywood expressed her concern about the dual use with resultant prob- lems, especially if there was no way to tie the variance to the particular owner. Councilman Kott offered Resolution No. 77R-230 for adoption granting Variance No. 2913, subject to Interdepartmental Committee recommendations and additional stip- ulations by the Applicant. Refer to Resolution Book. RESOLUTION NO. 77R-230: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING VARIANCE NO. 2913. Roll Call Vote: AYES: COUNCIL MEMBERS: Seymour, Kott, Roth and Thom NOES: COUNCIL MBMBERS: Kaywood ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 77R-230 duly passed and adopted. 119: CARTOON IN ANAHEIM POLICE ASSOCIATION MONTHLY NEWSLETTER: Sergeants Donoghue and Jansen, on behalf of the Anaheim Police Association, presented each Council Member with a reproduction of a cartoon by Sgt. Donoghue printed in their monthly newsletter with the article from the Anaheim Bulletin entitled "The Smoke Filled Room" in which each Council Member was characterized. 150: AWARD OF WORK ORDER NO. 881 - BROOKHURST COMMUNITY BUILDING: (Second Stage Construction, EDA Project) Councilman Seymour offered Resolution No. 77R-231 for adoption awarding a contract in accordance with the renommendations of the City Engineer. Refer to Resolution Book. RESOLUTION NO. 77R-231: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING A SEALED PROPOSAL AND AWARDING A CONTRACT TO THE LOWEST RESPONSIBLE BIDDER FOR THE FURNISHING OF ALL PLANT, LABOR, SERVICES, MATERIALS AND EQUIPMENT AND ALL UTILITIES AND TRANSPORTATION, INCLUDING POWER, FUEL AND WATER, AND PERFORMING ALL WORK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVEMENT: BROOK- HURST COMMUNITY BUILDING, SECOND STAGE CONSTRUCTION, IN THE CITY OF ANAHEIM, WORK ORDER NO. 881, CA-0806-0, EDA 07-51-08031. (Near Cal Corp., for Item 3, $800,226) 77-395 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-231 duly passed and adopted. 169: AWARD OF WORK ORDER NO. 902 - BARRIER FREE ANAHEIM: (EDA No. 07-51-01053) Councilman Thom offered Resolution No. 77R-232 for adoption awarding a contract in accordance with the recommendations of the City Engineer. Refer to Resolution Book. RESOLUTION NO. 77R-232: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING A SEALED PROPOSAL AND AWARDING A CONTRACT TO THE LOWEST RESPONSIBLE BIDDER FOR THE FURNISHING OF ALL PLANT, LABOR, SERVICES, MATERIALS AND EQUIP- MENT AND ALL UTILITIES AND TRANSPORTATION, INCLUDING POWER, FUEL AND WATER, AND PERFORMING ALL WORK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVEMENT: BARRIER FREE ANAHEIM, IN THE CITY OF ANAHEIM, E.D.A. PROJECT NO. 07-51-01053, WORK ORDER NO. 902. (N-D-L Construction of La Habra, $78,076.50) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-232 duly passed and adopted. 169: AWARD OF WORK ORDER NO. 903 - LOCAL PUBLIC WORKS ALLEY IMPROVEMENT: (EDA Project No. 07-51-01052) Councilwoman Kaywood offered ResOlution No. 77R-233 for adoption awarding a contract in accordance with the recommendations of the City Engineer. Refer to Resolution Book. RESOLUTION NO. 77R-233: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING A SEALED PROPOSAL AND AWARDING A CONTRACT TO THE LOWEST RESPONSIBLE BIDDER FOR THE FURNISHING OF ALL PLANT, LABOR, SERVICES, MATERIALS AND EQUIPMENT AND ALL UTILITIES AND TRANSPORTATION, INCLUDING POWER, FUEL AND WATER, AND PER- FORMING ALL WORK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVE- MENT: LOCAL PUBLIC WORKS ALLEY IMPROVEMENT, IN THE CITY OF ANAHEIM, E.D.A. PROJECT NO. 07-51-01052, WORK ORDER NO. 903. (R.J. Noble Company, $141,925.70) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-233 duly passed and adopted. 77-396 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. 156: WORK ORDER NO. 1055 - REHABILITATION OF POLICE PISTOL RANGE: On motion by Councilman Roth, seconded by Councilwoman Kaywood, award of Work Order No. 1055 for the Rehabilitation of the Police Pistol Range was continued for one week. MOTION CARRIED. 160: PURCHASE OF EQUIPMENT - REPLACEMENT OF PAINT SPRAY BOOTH - BID NO. 3200: On motion by Councilman Seymour, seconded by Councilman Roth, the low bid of Sprayking, Inc., was accepted and purchase authorized in the amount of $5,953.85, including tax, as recommended by the Purchasing Agent in his memorandum dated March 25, 1977. MOTION CARRIED. 160: PURCHASE OF EQUIPMENT - FIFTEEN PAD MOUNT TRANSFORMERS - BID NO. 3206: On motion by Councilman Roth, seconded by Councilman Thom, the low bids of Westinghouse Electric Supply Company, Item 1, (8 transformers) and General Electric Company, Item 2 (7 transformers) were accepted and purchases authorized in the amount of $19,659.82, including tax and $29,800.84, including tax, respectively, as recommended by the Purchasing Agent in his memorandum dated March 25, 1977. MOTION CARRIED. 175: WORK ORDER NO. 6395 - 13.8 kV METAL CLAD SWITCHGEAR FOR YORBA SUBSTATION: On motion by Councilman Thom, seconded by Councilman Roth, award of Work Order No. 6395 for the 13.8 kV metal clad switchgear for Yorba Substation Electrical Utility System Extension was continued for one week. MOTION CARRIED. 114: CONSIDERATION OF EVENING COUNCIL MEETINGS - ANAHEIM JAYCEES: Mr. Oggie Kemp, 1148 South Chantilly, on behalf of the 70-member Anaheim Jaycees and Jaycettes, requested consideration of scheduling the first and third Council meetings of the month in the evening, thereby enabling at least one of their members to be present. Discussion followed between the Council and Mr. Kemp at the conclusion of which, the Mayor stated he would be supportive, on a trial basis, of holding night Council meetings if the Jaycees could obtain documented broad based community support in the form of lists from people, organizations, groups, clubs and the like. On the preponderance of such support, he would react favorably to the request. During the discussion, both Councilwoman Kaywood and Councilman Roth stressed the fact that in the past ten months, fifteen special night meetings had been held on issues of great importance to the community, and the Council never refused a request to hold such evening meetings. Councilman Seymour stated that he would be willing to hold night meetings since the best government was that in which the most people involved themselves, even considering the added expense that would be incurred. 105 AND 161: PROJECT AREA COMMITTEE: Councilman Thom offered Resolution No. 77R-234 for adoption, ms requested in memorandum from William Woods, Chairman of the Project Area Committee. Refer to Resolution Book. RESOLUTION NO. 77R-234: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM EXTENDING THE PROJECT AREA COMMITTEE FOR AN ADDITIONAL ONE-YEAR PERIOD. 77-397 _C. ity Hall, Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Seymour, Roth and Thom NOES: COUNCIL MEMBERS: Kott ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 77R-234 duly passed and adopted. RECLASSIFICATION NO. 74-75-2.3~ AMENDMENT OF CONDITIONS: Request by C. J. Queyrel, Anacal Engineering Company, for deletion of certain conditions of Reclassification No. 74-75-23, proposed RS-5000 zoned property located on the north side of La Palma Avenue, west of State College Boulevard. Mr. Jason Heltzer of the George J. Heltzer Company, developers of the subject property, requested relief regarding signalization at La Palma and Baxter Street relative to their project which was originally approved for 250 condominiums and subsequently revised to 164 detached houses adjusting the density downward. He stated that since there were many extra costs on the project such as the $250,000 storm drain requirement, he was requesting assistance from the City on the signal- ization. He also emphasized that signed approved plans had been received from the City with no indication of street signals and if the plans had included this re- quirement, it would have made it less difficult for them since at present the pro- ject was running very high, expense wise. The Mayor explained that in the past month, several citizen groups had approached the Council relative to what they considered very dangerous conditions existing around the development imperiling the lives of their children. Mr. Heltzer stated that there had been communication with Mr. Ed Reikes, the spokes- man for the area, indicating that Heltzer would work with them. The Mayor then referred to a similar case relative to signalization and explained that at a prior recent meeting, Councilman Seymour proposed a change in policy from full participation by the developer to 50-50 participation and questioned if the same motion would be appropriate at this time. Discussion followed wherein Councilwoman Kaywood indicated that it was a matter of .who was creating the impact; if it involved one project, then that developer would be responsible for signalization. Mr. Heltzer contended, however, that since the project was reduced in density, the resultant impact was considerably less than anticipated. Mr. Cal Queyrel, Anacal Engineering Company, stated that the basic point to consider was that Tract Map No. 8866 was approved without the condition that a signal be required. Although the condition was stipulated to on the reclassification in March of 1975 when rezoning to RM-4000, allowing the original 250 units, there was no condition requiring a signal on the tract map itself. Consequently no money was allowed in the development of the tract for signalization. Theoretically, therefore, it was a new condition, while technically it could be imposed because of its inclusion on the reclassification. In September, at the request of the Heltzer Company, Mr. Queyrel, sent a letter to Traffic Engineer Paul Singer. Although Mr. Singer was on vacation at that time, when he returned, he called Mr. Queyrel and stated the signal was not required. 77-398 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~. 1977, 1:30 P.M. Councilwoman Kaywood stated that according to the staff report, a 20% reduction of traffic from the original proposal was not of sufficient magnitude to eliminate the requirement for a traffic signal and, further, it would be appropriate for the City to participate by providing one-eighth of the funds to do so. Mr. Queyrel stated that if, in fact, the condition were imposed on the developer, a 50-50 participation would be fair. In answer to Councilman Seymour, Mr. Queyrel stated that he did not ask for relief from the reclassification condition when the tract map was approved in view of the fact that there was no such condition for signalization on the map and, therefore, it was not considered that the condition of the prior zoning would carry over to the tract map. It was then that he asked the Traffic Engineer if the signal was required and was told no. Discussion followed between Councilman Seymour and staff wherein Miss Santalahti explained the particular case was one of the early instances where traffic sig- nals were required and the condition was on the reclassification only. It had been done in this manner before and the reclassification was typically what staff was most interested in because the tract could be revised and conditions deleted. A rezoning action for a given zone would require another public hearing, whereas a tract map would not. She further explained that under the present procedure, conditions were stated in every zoning action possible to be sure that they were not overlooked. Although there may be some similarities, tract maps often had more conditions than reclassifications and the tract map conditions were typically applied entirely by the Engineering Division and usually pertained to the develop- ment itself. Further discussion followed revolving around the condition for signalization not having been included on the tract map; staff maintained it was not an unusual occur- rence and the Mayor pointed out that staff could never arbitrarily delete a ~ondi- tion originally imposed. Mr. Queyrel reiterated that the condition was not included because signalization was not then required. MOTION: Councilman Seymour gave some background on the policy for participation in signalization which, up until his recent motion for 50-50 participation, required the developer to pay for the full cost. He moved that in this case the cost of the traffic signal at La Palma and Baxter Avenues be shared on a 50-50 basis with the developer. Councilman Roth seconded the motion. Councilwoman Kaywood voted "No". MOTION CARRIED. MOTION: Councilman Seymour also moved that a Council Policy be established stating participation in signalization be on a 50-50 basis in order to preclude the recurring discussion regarding participation every time the subject arose. Councilman Thom seconded the motion. Before a vote was taken, Councilwoman Kaywood stated that if there was a situation where a clear impact was being made by one developer only, it would be fair for that developer to pay the full amount. Miss Santalahti interjected that in several instances estimates had been made on how much traffic would be generated by different sources at a given intersection and suggested that rather than the 50-50 participation being the optimum, a pro- portionate share be calculated. 77-39 9 City Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977, 1:30 P.M. Councilman Seymour thereupon amended his motion directing staff to draw up a Council Policy stating in the future the cost of participation in signalization be calculated on a pro rata basis. MOTION CARRIED. CONSENT CALENDAR ITEMS: On motion by Councilman Seymour, seconded by Councilman Roth, the following actions were authorized in accordance with the reports and recommendations furnished each Council Member and as listed on the Consent Calendar Agenda: 1. 118: CLAIMS AGAINST THE CITY: The following claims were denied and referred to the City's insurance carrier or the self-insurance administrator: a. Claim submitted by Mrs. Lois McFarlin for property damages purportedly sustained as a result of her car striking a deep hole on South Euclid at Romneya on or about February 11, 1977. b. Claim submitted by Allstate (John Roll, insured) for property damages purportedly sustained as a result of a burned out street light on or about January 17, 1977. c. Claim submitted by Allstate (Szabo Food Service, insured) on behalf of Mary Rushing, for personal injuries purportedly sustained as a result of slipping and falling on water at Anaheim Stadium on or about February 28, 1977. 2. CORRESPONDENCE: The following correspondence was ordered received and filed. a. 175: Federal Power Commission re Southern California Edison Company filing changes of rates for transmission services with Cities of Anaheim and Riverside, effective January 13, 1977. b. 132: State Solid Waste Management Board re July 1, 1977, deadline for desig- nation of a local solid waste management enforcement agency. c. 105: Community Redevelopment Commission - Minutes of March 16, 1977. d. 105: Project Area Committee - Minutes of March 8, 1977. e. 105: Community Center Authority - Minutes of March 7, 1977. f. 140: Monthly report for February, 1977 - Library. g. 102: Orange County Vector Control District - 1976 Annual Report. h. 105: Public Library Board - Minutes of February 22, 1977. i. 173: Public Utilities Commission of the State of California Application of Buena Park Development Corporation, dba Holiday Inn of Buena Park, for authority to operate as a Passenger Stage Corporation between Holiday Inn in Buena Park and the Disneyland Amusement Park in Anaheim; Response, Protest and Motion to Dismiss by Town Tour Fun Bus Company, Inc. MOTION CARRIED. 77- 400 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. RESOLUTION NOS. 77R-235 THROUGH 77R-240: Councilwoman Kaywood offered Resolution Nos. 77R-235 through 77R-240, both inclusive, for adoption in accordance with the reports, recommendations and certifications furnished each Council Member and as listed on the Consent Calendar Agenda. Refer to Resolution Book. RESOLUTION NO. 77R-235: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS AND ORDERING THEIR RECORDATION. (Eugene M. Prather, et ux.; Warmington Development, Inc.; Francis R. Hall, et ux.; Russell L. Hafdahl, et ux.; Wilber Newton, et ux.; Clara M. Kirkhart, et al.; Phil W. Bastin, et ux.; Roy H. Kliss, et ux.; Russell J. Brooks, et ux.) RESOLUTION NO. 77R-236: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE TERMS AND CONDITIONS OF AN ENCROACHMENT PERMIT AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID ENCROACHMENT PERMIT WITH BIXBY LAND COMPANY (76-6E). RESOLUTION NO. 77R-237: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUC- TION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: TIMKEN ROAD/COYOTE LANE SEWER IMPROVEMENT, IN THE CITY OF ANAHEIM, WORK ORDER NO. 1273; APPROVING THE DESIGNS, PLANS, PROFILES, DRAWINGS AND SPECIFICATIONS FOR THE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be opened April 28, 1977, 2:00 P.M.) RESOLUTION NO. 77R-238: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUC- TION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: MODIFICATION AND INSTALLATION OF PEDESTRIAN SIGNAL INDICATIONS AT VARIOUS LOCATIONS, IN THE CITY OF ANAHEIM, WORK ORDER NO. 802-A; APPROVING THE DESIGNS, PLANS, PROFILES, DRAWINGS AND SPECIFICATIONS FOR THE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVE- MENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be opened April 28, 1977, 2:00 P.M.) RESOLUTION NO. 77R-239: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUC- TION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: GRAND AVENUE STREET IMPROVE- M~NT, LINCOLN AVENUE TO DEL MONTE DRIVE, IN THE CITY OF ANAHEIM, WORK ORDER NO. 806-A; APPROVING THE DESIGNS PLANS, PROFILES, DRAWINGS AND SPECIFICATIONS FOR THE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be opened May 5, 1977, 2:00 P.M.) RESOLUTION NO. 77R-240: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUC- TION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: KATELLA AVENUE STREET IMPROVE- MENT, W/O NINTH STREET, IN THE CITY OF ANAHEIM, WORK ORDER NO. 807-B; APPROVING THE DESIGNS, PLANS PROFILES, DRAWINGS AND SPECIFICATIONS FOR THE CONSTRUCTION THEREOF; AUTHORIZING THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be opened May 5, 1977, 2:00 P.M.) City Hall~ Anaheim, California - COUNCIL MINUTES - April 5, 1977, 1:30 P.M. 77-'401 Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution Nos. 77R-235 through 77R-240, both inclusive, duly passed and adopted. CITY PLANNING COMMISSION ITEMS: Actions taken by the City Planning CommiSsion at their meeting held March 14, 1977, pertaining to the following applications were submitted for City Council information and consideration. On motion by Councilman Roth, seconded by Councilman Thom, the City Council author- ized the actions pertaining to the following Environmental Impact Requirements as recommended by the City Planning Commission and took no further action on the following applications. (Item Nos. 1 through 4) 1. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: The Planning Commission recommended to the City Council that the subject project in the following listed zoning application be declared exempt from the requirement to prepare an Environ- mental Impact Report pursuant to the provisions of the California Environmental Quality Act: Variance No. 2911 2. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: The ~lanning Director has determined that the proposed activities in the following listed zoning applications fall within the definitions of Section 3.01, Class 3, of the City of Anaheim guide- lines to the requirements for an Environmental Impact Report and are, therefore, categorically exempt from the requirements to file an EIR: Conditional Use Permit No. 1688 Conditional Use Permit No. 1692 3. CONDITIONAL USE PERMIT NO. 1688: Submitted by Kenney Golf Enterprises, Inc., to permit a billboard on ML zoned property located at the southeast corner of La Palma Avenue and Shepard Street, with certain code waivers. City Planning Commission Resolution No. PC77-59 denied Conditional Use Permit No. 1688. 4. CONDITIONAL USE PERMIT NO. 1692: Submitted by William C. Stookey, to permit the continued use of two existing billboards on CG zoned property located at 254 South Anaheim Boulevard with waiver of permitted location. City Planning Commission Resolution No. PC77-66 granted Conditional Use Permit No. 1692 for one year. MOTION CARRIED. 77-~02 City Hall~ Anaheim, California - COUNCIL MINUTES - April 5, 1977~ 1:30 P.M. VARIANCE NO. 2911: Submitted by California Evangelistic Association, Inc., to construct an ll-unit, two-story apartment complex for the elderly on RM-1200 zoned property located at 118 West Adele Street with certain code waivers. City Planning Commission Resolution No. PC77-58 granted Variance No. 2911, in part, for a 10-unit complex. Councilman Kott questioned staff as to whether or not Variance No. 2911 was a tax-exempt project as he did not approve of religious, tax-exempt organizations entering the profit-making business and not paying taxes. Miss Santalahti explained that the Planning Commission asked whether the housing would be Federally financed in some manner. They were told that the project would not be Federally financed but instead was one the congregation was undertaking on their own. City Attorney Hopkins also confirmed that the only thing that would not be taxed, as stated by Councilman Roth, would be a church sanctuary. Although he would have to investigate in this particular instance, that was the usual procedure. The City Council took no further action on the application. CONDITIONAL USE PERMIT NO. 1694: Submitted by Dunn Business Parks, to construct a 45-unit motel on ML zoned property located on the north side of La Palma Avenue, west of Woodland Drive. The Mayor stated he had received a telephone call and a letter from Dunn Properties relative to traffic signalization in conjunction with the proposed project wherein the Planning Commission Resolution stated that the entire financial responsibility for the installation of traffic signals would be borne by the developer. In light of the previous policy set for 50-50 participation, the only way the condition could be changed was to set the matter for public hearing. The Mayor thereupon requested that Conditional Use Permit No. 1694 be set for public hearing. VARIANCE NO. 2705 - EXTENSION OF TIME: Submitted by Fred J. Barbour, Curci-Turner Company, for an extension of time to Variance No. 2705 for outdoor storage of trucks and equipment on RS-7200 zoned property located on the south side of Cypress Street, west of Vine Street. On motion by Councilman Thom, seconded by Councilman Roth, extension of time was denied on Variance No. 2705 as recommended by the City Planning Commission. MOTION CARRIED. Councilman Thom offered Resolution No. 77R-241 for adoption terminating Variance No. 2705, as recommended by the City Planning Commission. Refer to Resolution Book. RESOLUTION NO. 77R-241: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM TERMINATING ALL PROCEEDINGS IN CONNECTION WITH VARIANCE NO. 2705 AND DECLARING RESOLUTION NO. PC75-124 NULL AND VOID. City Hall, Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. 77-403 Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-241 duly passed and adopted. CONDITIONAL USE PERMIT NO. 1570 - REQUEST FOR TERMINATION: Submitted by Curt Bosworth, Star-Dust Charters, Inc., requesting termination of Conditional. Use Permit No. 1570 to permit a bus depot on property located on the north side Lincoln, west of Magnolia Avenue. Councilwoman Kaywood offered Resolution No. 77R-242 for adoption, terminating Conditional Use Permit No. 1570, as recommended by the City Planning Commission. Refer to Resolution Book. RESOLUTION NO. 77R-242: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM TERMINATING ALL PROCEEDINGS IN CONNECTION WITH CONDITIONAL USE PERMIT NO. 1570 AND DECLARING RESOLUTION NO. PC75-217 NULL AND VOID. Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MF21BERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Resolution No. 77R-242 duly passed and adopted. 170: TENTATIVE MAP, TRACT NO. 9792: Developer, John D. Lusk and Son; tract located on the north side of Nohl Ranch Road, east of Villa Real Drive, con- taining 29 RS-HS-10,000 proposed zoned lots (EIR No. 132 certified February 25, 1975). Miss Santalahti explained that a letter was received the day before from the Riding and Hiking Trails Committee of the Hill and Canyon area, as well as an aerial map showing the location of the requested trail relating to the subject tract. Mr. Don Steffenson, representing John D. Lusk and Son, indicated that he had not seen the letter but requests had been received from the Trails Committee to con- sider granting an easement. Lusk's basic concern was not that of granting the easement, but whether their residents in the Nohl Ranch area who would be partici- pating in its maintenance would benefit from it. They suggested to the Trails Committee that they meet with the Rockypoint Community Association, the people who would be paying for the maintenance of all the slopes adjacent to the area to solicit their comments. It was his understanding that they did meet and the con- census was they did not feel they would benefit from the trail and had no particu- lar interest in its being located there. However, the Nohl Ranch Homeowners Association indicated it would be an asset to the community. 77-~04 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. Mr. Steffenson explained that Lusk was also concerned over the fact that the trail was not considered in any of their initial lengthy discussions on the project, as well as on the original tentative maps. Now, this would have to be done and addi- tional public input would have to be solicited particularly from the Peralta Hills people who would benefit the greatest. It had been suggested in previous discussions that all or part of the trail might be on their properties which was not possible at the present time. Mr. Lusk did not have any objection to the trail itself other than the future benefits of those who would be living in the development. Councilman Seymour suggested that the tentative tract be continued until input was received from ?eralta Hills. Mr. Steffenson did not consider the tract to be part of the trail because it was not adjacent or connected to it. It was immediately below Nohl Ranch Road and did not touch the trail at any point. He reiterated there was no objection to granting the easement, but they wanted input from the residents who were paying for maintenance adjacent to it to ascertain if it was going to be a benefit. Mr. Steffenson clarified for Councilman Seymour that Tract Nos. 8647 and 8418 were the tracts that were approved and they abutted the easement. The first increment of homes was scheduled to start in May. He also explained for Councilman Seymour that the Rockypoint Community Association was a mandatory one responsible for the two tracts although the Association was initially formed for Tract No. 8153. Councilman Seymour stated that if the Community Association was approached first, they would reject the trail so the only course of action in order to insure that there would be a trail was to have it established beforehand. Mr. Steffenson stated that the Association preferred not to have the trail. Since they were responsible for maintenance of the slopes immediately adjacent to the trail, they were concerned over the kinds of liabilities and problems that would be incurred and the recourse for reimbursement for such costs. Councilman Seymour indicated the reason they were impacted was due to the fact there was one large mandatory association covering slope maintenance for both Tract Nos. 8418, 8647 and possibly 8792. He emphasized that the trail had to go in, but the problem had to be resolved before and not after houses were built as to its optimum location, Peralta Hills property or Lusk property. Mr. Steffenson stated they also wanted the issue resolved beforehand because they did not want to sell houses with unresolved questions; the unknowns being the responsibility and cost of maintenance. In order to resolve the problem and short of making it a condition of the tract, he would inform Lusk the City wanted the trail. Subsequently Lusk would grant the easement, and the City would provide improvements and maintenance. Mr. Steffenson wanted clarification that was the correct assumption. Miss Santalahti explained that typically the trail was constructed by the developer and the assumption by everyone was that the City would maintain it. However, it was very unclear because there was no assessment district, although some work was being done by the Trails Committee to come up with a definite proposal as to what would be involved in maintaining the trail. 77-405 City Hall~ Anaheim, California- COUNCIL MINUTES- April 5, 1977, 1:30 P.M. Councilman Seymour stated that although he did not want to hamper the development, the only solution was to attach a condition to the tentative tract unless some other assurance could be given to the City relative to dedication of the trail. Mr. Steffenson indicated they did not object to granting an easement as a condition of the tract, but were concerned relative to the requirement for improvements. Be- cause of the terrain involved, the trail would ultimately have to traverse back and forth between their property and Peralta Hills property. Carol Cramer, speaking on behalf of Peralta Hills and the Riding and Hiking Trails Committee, indicated she would be happy to answer any questions. Councilman Seymour asked if the trail could traverse Peralta Hills property where rough terrain was encountered and, if so, who would be financially responsible for the maintenance. Mrs. Cramer could only speak to the first question and explained that most Peralta Hills homes on the perimeter had been established for many years and already had block walls, chain link fences, trees and like improvements. Therefore, there would be a problem installing a trail in areas already maintained expensively for many years, whereas on the Lusk side it was free and clear. She also maintained that the trails would be for the people of the Canyon, hikers, as well as horseback riders, and horseowners only should not always be asked to pay for the trails. She did not have an answer relative to who would pay for maintenance but, as suggested by Councilman Seymour, she would solicit a recommendation from the Trails Committee. Janice Hall, 545 Tumbleweed Road, President of Westridge Homeowners Association, ex- plained that since the trails system traversed their common area, they were running into a severe insurance problem and in danger of losing their insurance. Under- writers and engineers alike were asking questions about ratings and liability insur- ance involving animals which they could not answer. She urged that a yet-to-be-formed homeowners association not be burdened with the liability of a horse trail because the problem would never be resolved. That burden should not be placed on associations not horse oriented since the trail was strictly an amenity for horseowners and that's where the responsibility should lie. She did not want to have her association pay for such insurance. Councilman Seymour indicated that the City should investigate the possibility of insuring the trails since they were City trails for which an easement was granted, yet the homeowners were being asked to insure them. It was his opinion the home- owners should be relieved from assuming that liability. On motion by Councilman Seymour, seconded by Councilman Thom, the proposed sub- division, Tentative Map Tract No. 9792, together with its design and improvement, was found to be consistent with the City's General Plan, and the City Council approved said Tentative Map subject to the following conditions recommended by the City Planning Commission, and one additional condition requiring dedication for a riding and hiking trail in Tract Nos. 8418 and 8647. 1. That should this subdivision be developed as more than one subdivision, each subdivision thereof shall be submitted in tentative form for approval. 77-406 Cit~ Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. 2. That in accordance with City Council policy, a 6-foot high, open, decorative wall shall be constructed at the top of slope on the south property line separ- ating Lot Nos. 22 through 29 from Nohl Ranch Road. Reasonable landscaping, in- cluding irrigation facilities, shall be installed in the uncemented portion of the arterial highway parkway the full distance of said wall, plans for said landscaping to be submitted to and subject to the approval of the Superintendent of Parkway Maintenance; and following installation and acceptance, the City of Anaheim shall assume the responsibility for maintenance of said landscaping. 3. That all lots within this tract will be served by underground utilities. 4. That a final tract map of subject property shall be submitted to and approved by the City Council and then be recorded in the Office of the Orange County Recorder. 5. That the covenants, conditions, and restrictions shall be submitted to and approved by the City Attorney's Office prior to City Council approval of the final tract map and, further, that the approved covenants, conditions, and re- strictions shall be recorded concurrently with the final tract map. 6. That prior to filing the final tract map, the applicant shall submit to the City Attorney for approval or denial a complete synopsis of the proposed function- ing of the operating corporation including, but not limited to, the articles of incorporation, bylaws, proposed methods of management, bonding to insure mainte- nance of common property and buildings, and such other information as the City Attorney may desire to protect the City, its citizens, and the purchasers of the project. 7. That street names shall be approved by the City Planning Department prior to approval of a final tract map. 8. In the event that subject property is to be divided for the purpose of sale, lease or financing, a parcel map, to record the approved division of subject prop- erty, shall be submitted to and approved by the City of Anaheim and then be re- corded in the Office of the Orange County Recorder. 9. That the owner of subject property shall pay to the City of Anaheim the appro- priate park and recreation in-lieu fees as determined to be appropriate by the City Council, said fees to be paid at the time the building permit is issued. 10. That drainage of said property shall be disposed of in a manner satisfactory to the City Engineer. If, in the preparation of the site sufficient grading is required to necessitate a grading permit, no work on grading will be permitted between October 15th and April 15th unless all required off-site drainage facilities have been installed and are operative. Positive assurance shall be provided the City that such drainage facilities will be completed prior to October 15th. Necessary right-of-way for off-site drainage facilities shall be dedicated to the City, or the City Council shall have initiated condemnation proceedings therefor (the costs of which shall be borne by the developer) prior to the commencement of grading operations. The required drainage facilities shall be of a size and type sufficient to carry runoff waters originating from higher properties through said property to ultimate disposal as approved by the City Engineer. Said drain- age facilities shall be the first item of construction and shall be completed and 77-407 City Hall, Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. be functional throughout the tract and from the downstream boundary of the property to the ultimate point of disposal prior to the issuance of any final building in- spections or occupancy permits. Drainage district reimbursement agreements may be made available to the developers of said property upon their request. 11. That grading, excavation, and all other construction activities shall be con- ducted in such a manner so as to minimize the possibility of any silt originating from this project being carried into the Santa Ana River by storm water originating from or flowing through this project. 12. If permanent street name signs have not been installed, temporary street name signs shall be installed prior to any occupancy. 13. That fire hydrants shall be installed and charged, as required and determined to be necessary by the Chief of the Fire Department, prior to commencement of structural framing. 14. That dedication shall be made to the City of Anaheim for a 10-foot wide eques- trian and hiking trails easement along the northern boundaries of Tract Nos. 8418 and 8647; said dedication to be filed and recorded in the Office of the Orange County Recorder prior to the recordation of a final tract map. An added condition of approval by the Council of Tentative Tract No. 9792 is the requirement for dedication of a riding and hiking trail. MOTION CARRIED. 170: TENTATIVE TRACT NO. 9149: Request by David E. Cunningham for waiver of Council Policy No. 538 for Lot Nos. 87 and 88 of Tract No. 9149, proposed l17-1ot, RS-5000 subdivision on property located on the northwest corner of Orangethorpe Avenue and Kraemer Boulevard. On motion by Councilman Seymour, seconded by Councilman Roth, request for waiver of Council Policy No. 538 for Lot Nos. 87 and 88 of Tract No. 9149 was approved as recommended by the City Planning Commission. MOTION CARRIED. 123: ORDINANCE NO. 3675: Councilwoman Kaywood offered Ordinance No. 3675 for adoption. Refer to Ordinance Book. ORDINANCE NO. 3675: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. (1959 Survivor's Benefit Coverage) Roll Call Vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom None None The Mayor declared Ordinance No. 3675 duly passed and adopted. ORDINANCE NOS. 3678 THROUGH 3683: Councilman Thom offered Ordinance Nos. 3678 through 3683, both inclusive, for first reading. 77-408 City Hall~ Anaheim~ California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. ORDINANCE NO. 3678: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 14, CHAPTER 14.32 OF THE ANAHEIM MUNICIPAL CODE BY ADDING SECTION 14.32.430 RE- LATING TO PARKING. (designated parking for physically handicapped) ORDINANCE NO. 3679: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (71-72-44(20), RS-5000) ORDINANCE NO. 3680: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (76-77-24, RM-1200) ORDINANCE NO. 3681: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (73-74-55(3), CL) ORDINANCE NO. 3682: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (67-68-7(7), RS-HS-iO,O00) ORDINANCE NO. 3683: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (76-77-30 and 31, RM-2400) 105: AD HOC CULTURAL NEEDS COMMITTEE: At the request of Councilwoman Kaywood, staff clarified that the date time and place of the meeting with the ad hoc Cultural Needs Committee was Tuesday, April 12, 1977, at 7:30 P.M. in the Council Chamber. 142: REQUEST FOR REHEARING - NATIONAL ELECTRICAL CODE: On motion by Councilman Seymour, seconded by Councilman Thom, request for rehearing on the National Electri- cal Code adopted by Ordinance No. 3661, was approved and public hearing set for April 26, 1977, 3:00 p.m. MOTION CARRIED. 166 AND 179: ENFORCEMENT OF SCENIC CORRIDOR OVERLAY ZONE ORDINANCE: Councilman Seymour explained that a number of citizen complaints had been received regarding the roof-mounted equipment on the Alpha Beta Market at Nohl Ranch Road and Canyon Rim Road which equipment did not meet the standards of the Scenic Corridor Overlay Zone Ordinance. On motion by Councilman Seymour, seconded by Councilman Thom, staff was instructed to enforce the Scenic Corridor Overlay Zone Ordinance to its highest standards especially relevant to the Alpha Beta Market at Nohl Ranch Road and Canyon Rim Road. MOTION CARRIED. 149: "FOR SALE" VEHICLES IN COMMERCIAL SHOPPING CENTERS: Councilman Seymour explained that he received several inquiries and complaints from commercial property owners in various parts of the City who owned shopping centers relative to the parking of vehicles in their lots with "for sale" signs on them. These owners found no recourse through the Police Department in having the vehicles removed since there was no City ordinance enabling them to do so. On motion by Councilman Seymour, seconded by Councilwoman Kaywood, the City Attorney was directed to investigate a Newport Beach city ordinance relative to precluding of vehicles offered for sale in commercial shopping centers. Council- man Kott voted "No". MOTION CARRIED. 105: APPOINTMENT TO COMMUNITY SERVICES BOARD: Councilman Thom appointed Mrs. Shirley Moss, 1019 Via Vista, to the Community Services Board to fill the un- expired term of Mr. Andres Fernandez, term ending June 30, 1979. 77-409 ~ity Hall~ Anaheim, California - COUNCIL MINUTES - April 5~ 1977~ 1:30 P.M. 105: RECOGNITION BANQUETS - CITY BOARDS~ COMMISSIONS AND OTHER OFFICIAL BODIES: The Mayor referrred to memorandum dated April 4, 1977 from Public Information Officer, Ken Clements, on the proposed recognition banquets to be held May 13 and June 3, 1977 for members of City Boards, Commissions and other official bodies. Council discussion followed relative to the recommendations, at the conclusion of which it was suggested that the Chairman of each of the bodies submit a list of names of the members to be invited who have attended at least 50 percent of their meetings thus far. Councilwoman Kaywood and Councilman Seymour would sub- mit a list of Task Force members. The newly established and appointed HACMAC and Youth Commission were not to be included. Councilman Seymour noted, for the press, that Anaheim was one of the very few cities where boards, commissions and advisory committees served without pay; Councilman Kott added that it was also one of the few cities where people were willing to work without being paid. The Mayor stated he had always maintained those groups should be paid, but in lieu of such payment, it was appropriate that they be thanked in an extraordinary way. RECESS - EXECUTIVE SESSION: By general consent, the Council recessed into Executive Session; Councilmen Kott and Thom refrained from attending. (5:30 P.M.) AFTER RECESS: Mayor Pro Tem Seymour called the meeting to order, all Council Members being present. (6:10 P.M.) 153: ANAHEIM POLICE ASSOCIATION - POLICE SAFETY EQUIPMENT: On motion by Council- man Seymour, seconded by Councilman Roth, the request of the Anaheim Police Association to discuss Police saps was approved and public meeting set for April 19, 1977. MOTION CARRIED. Councilman Kott explained that two attorneys were at the meeting today and the matters they brought before the Council could also be potential litigation but the Council still heard them. Although he understood the matter at hand, he made the choice not to participate. The Mayor stood on his statement made earlier in the meeting that he would meet privately or publicly with anyone at anytime on request. Councilman Seymour, speaking on behalf of the remainder of the Council, stated that the Police Association matter was taken up in Executive Session on advice of the City Attorney as a subject of potential litigation. Until he no longer had faith in the City Attorney, he would follow his advice. ADJOURNMENT: By general consent, the meeting was adjourned. Adjourned: 6:12 P.M. LINDA D. ROBERTS, CITY CLERK