Loading...
2004/02/10 ANAHEIM, CALIFORNIA - CITY COUNCIL REGULAR MEETING February 10, 2004 The City Council of the City of Anaheim met in regular session. PRESENT: Mayor Curt Pringle, Council Members: Shirley McCracken, Bob Hernandez, Tom Tait, and Richard Chavez. STAFF PRESENT: City Manager David Morgan, City Attorney Jack White, and City Clerk Sheryll Schroeder. A copy of the agenda for the meeting of the Anaheim City Council was posted on February 6, 2004 at the City Hall outside bulletin board. Mayor Pringle called the regular meeting to order at 3:25 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. WORKSHOP: Anaheim Sister City Association City Manager David Morgan introduced June Glenn, Anaheim Sister City Association board member, who offered Council background and history on the Sister City Association. Mrs. Glenn explained the goals of the Association and the selection process and criteria for potential sister city relationships as well as information on the two formal sister city relationships with Mito, Japan and Vitoria-Gasteiz, Spain. Presentation details are available in the Office of the City Clerk. Mayor Pringle thanked Mrs. Glenn for the opportunity to discuss the Sister City Association and the City's interaction with the Association. The Mayor explained his concerns: 1) the City should have some input into directing the sister city search process, 2) the City's input should not be reactionary in manner, by approving or vetoing a proposed sister city at the end of the selection process as described in the Sister City Association presentation; and 3) the criteria for new sister city relationships should include cities of similar size and stature, having some of the same industries as well as a tourism base. The Mayor felt by seeking cities with specific criteria, the cities would not later be offended when denied and Council would not be left to handle the embarrassment of such a denial, as had occurred with the city of Chun Chun, Korea. Council Member Tait asked if the Anaheim Sister City Association was typical for cities of this size. Mrs. Glenn replied that most were non-profit, but many were fully funded by their respective cities with paid staff. She cited the City of Los Angeles as having many sister city relationships, with the expense of hosting foreign visitors and honoring sister city delegations borne by Los Angeles. Council Member Tait inquired as to reasons for denial for sister cities and Mrs. Glenn indicated denials had been based on various reasons such as population size and the actual interest of the city making the inquiry. Mayor Pringle stated Anaheim might consider exploring ways to outreach to other cities on an international basis for tourism and business connections independent of the formalized sister city relationship citing the fact he spoke at a businesswoman's conference in Sonora, Mexico that was interested in hosting successful Mexican businesswomen at various conferences ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 2 throughout Mexico and the United Stated and had expressed an interest in Anaheim for that purpose. Council Member McCracken stated the Orange County Protocol Society had short-term relationships with other cities and suggested this was a possibility recognizing that a different structure than the Sister City Association might be used. Council Member McCracken felt there was a role for both long-term and short-term sister city relationships but that the long-term relationships were hard to maintain unless the City was going to invest funding in it. She felt the City should take a long and hard look at future goals. Mayor Pringle stated the City should also look long and hard at the criteria for seeking sister cities. He mentioned receiving suggestions to try to find a sister city in Canada with a professional hockey team or other cities in other countries with professional baseball teams. Council Member Tait suggested the current criteria for sister city selection may be too rigorous and that the Korean-American Friendship Society and Chun Chun, Korea were hurt by the denial of a sister city relationship with Anaheim. 103 Annexation Update Mr. Morgan introduced Assistant City Manager Tom Wood who provided a brief presentation on the annexation process of five small islands adjacent to or within Anaheim's sphere of influence. Mr. Wood pointed out the specifics behind the annexation efforts stemmed from legislation that occurred in 1999 that encouraged cities and counties to annex pockets of land and from the County's fiscal crisis in 1994 when their focus was to get out of municipal services business. Additionally, the Dad Miller lease extension obligated the City to start exploring annexation of those small islands. Replying to Mayor Pringle's question, there were five islands involved in this current annexation process and three other islands not involved, as issues with those islands were far more complex and would be addressed later. Mr. Wood informed Council the county completed their fiscal analysis of the remaining islands and City staff was reviewing the analysis and attempting to resolve and come to an agreement on how to proceed. David Morgan indicated one of the reasons for the City to move ahead with these five islands was that Anaheim agreed to make a good faith effort to move ahead on annexation with the Dad Miller lease extension and the City felt it could show a good faith effort with these five islands while trying to resolve the main issues on the remaining islands. Mayor Pringle concurred in that assessment but remarked he wanted to be as aggressive as possible on the other three areas. He stated that even though the perception was it may cost the City money to annex and we may never get enough funds from the annexation to provide those services, he would argue that the City probably already provided those services as the first responder. The Mayor also stated the residents were stranded without a voice as to what was going to be developed along Brookhurst, along the railroad and Edison right-of-ways through the middle of Anaheim. He recognized the costs involved but felt it was a fundamental service requirement of the City. Mr. Wood noted that the discussion with the County would be an attempt to recognize all of those issues and at the same time resolve the financial concerns so that both sides would be successful. Council Member McCracken inquired if there was a long-range plan to have the residences serviced by Anaheim Utilities. Mr. Wood replied if it was a matter of purchasing the infrastructure from Southern California Edison, the City would probably do it now. However, there was pending litigation of exit fees and heavy penalties, which would equate to $2,000,000 for Anaheim. Council Member McCracken asked if legislators could be found to carry legislation ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 3 to address the exit fees, as annexation was a statewide issue. Mayor Pringle remarked this was an issue before the Public Utilities Commission (PUC) and there was a bill last year that exempted municipal utilities from paying exit fees from their part in an annexation process and it would appear everyone was waiting for the PUC to take action. Council Member Hernandez inquired as to the sewer situation for the upscale area west of Brookhurst. Candy Haggard from the County of Orange indicated that half of the homes in that area were on septic tanks and the rest had sewer connections. Mr. Wood remarked the County had invested considerable funds to resolve some of those issues in those areas over the years. ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS - CLOSED SESSION: None Jeff McDermott spoke regarding item 2 of the closed session. He indicated he had been informed by letter this date that he had been found non-responsive to Disadvantaged Business Enterprise (DBE) efforts and wanted to protest that position to the City. Mr. McDermott believed staff's conclusion was not correct since he had many projects with the state of California that utilized the same program Anaheim used and he had submitted the same DBE good faith efforts both when he had made the goal and had not made the goal and had never been rejected. Mr. McDermott indicated he had an excellent reputation as contractor and that with his low bid the City would save $100,000. Mr. McDermott believed the second low bidder misused the system to make the goal because he was unable to do a good faith effort. Mr. McDermott asked staff to see the good faith effort of the second low bidder but it was not available or there was not one submitted at the time. Mr. McDermott requested Council reconsider and award him as the lowest responsible bidder as the DBE used for this contract would not get this project because they were not listed by the second bidder. Mayor Pringle indicated Council would consider this matter during the regular portion of Council meeting and that the closed session item was for Council to hear the legal discussion presented by the City's legal counsel. The Mayor indicated Mr. McDermott would have an opportunity to express his point of view for Item 24 on the regular agenda during the public comment section of the council agenda. Mayor Pringle recessed to closed session at 4:35 P.M. for the following purposes: 1. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Section 54956.9 of the Government Code Number of potential cases: two 2. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 of the Government Code: one potential case. Existing facts and circumstances: possible litigation relating to City determination of whether low bid received for construction of BNSF Soundwall Corridor Project is responsive to federal requirements. 3. CONFERENCE WITH LABOR NEGOTIATORS Agency designated representative: David Hill Employee organization: Anaheim Municipal Employees Association; Anaheim Police Association; Anaheim Firefighters' Association; International Brotherhood of Electrical Workers' Union, Local 47 ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 4 AFTER RECESS: Mayor Pringle called the regular Council meeting of February 10, 2004 to order at 5:28 P.M. and welcomed those in attendance. INVOCATION: Pastor Charles Garbarini, Anaheim Community Church FLAG SALUTE: Council Member McCracken RECOGNITIONS (To be presented at a later date): Recognizing Kathy Wright for her contribution to the BNSF Corridor Soundwall Project Mayor Pringle recessed the City Council meeting at 5:30 P.M. to call to order the Anaheim Redevelopment Agency. Mayor Pringle reconvened the City Council meeting at 5:31 P.M. ADDITIONSIDELETIONS TO THE AGENDA: None PUBLIC COMMENTS: James Robert Reade spoke of Police Department concerns. Clint Reeves, resident, spoke of parking concerns in his residential neighborhood and requested Council's assistance. He also indicated the State building on Lincoln and Sunkist was a parking lot on most weekends which then overflowed onto his residential street. Mayor Pringle referred Mr. Reeves to William Sell, Code Enforcement Manager, to assist with his concerns. Jeff Kirsch offered a method to ease the State budget crisis. Remarking that voters are being asked by the Governor to vote on $15 billion in bonds, with interest two or three times that amount, Mr. Kirsch felt the voters should get a chance to purchase the tax free bonds that are now only offered in amounts of $25,000 or $50,000. By reducing the amount of bond purchase to $250, $500 or $1,000, Californians could get a better return on their savings tax free and the interest would then be returned to Californians who would put that money back into the California economy. Mr. Kirsch requested Council's support to communicate this idea to the State collectively or individually. Craig Durfee, founder of Parents Rights of Developmentally Disabled Children, provided literature on grant funding for training grants to stop abuse in children and developmentally disabled elders. He had read of Anaheim's interest in considering programs to prevent child abduction and suggested these types of grants could help with the funding of such programs. Alene Taber, resident, spoke in favor of the Home Improvement Holiday program. Ms. Taber expressed her concerns with the City permit process while trying to build a swimming pool with sonar system technology. Ms. Taber suggested the City establish an innovation solutions committee, chaired by Council Member Chavez and that a homeowners bill of rights be adopted. ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 5 Dave McCaffey, a 46-year resident, requested Council's support for a partial fee waiver for use of the Brookhurst Community Center for the 10th Buttons and Bows Square Dance for which 90 percent of the proceeds benefits Choc Hospital. Jeff McDermott spoke to Item A24, the BNSF Soundwall Corridor project. He indicated that his firm was the lowest bidder on the project and that his bid documents listed a legitimate DBE contractor, who hired people and put them to work on the project and was not a broker as was submitted by the second low bidder. He stated brokers charged fees to pass money through their books for DBE participation but according to the same rules for which his firm was denied, the second bidder would account for only two percent DBE and would have to process $32,000,000 of materials and equipment to meet the $1,600,000 DBE participation that the second low bidder had claimed. Mayor Pringle stated Item A24 would be removed from consent calendar for further discussion by staff and Council and Mr. McDermott could hear those comments at that time. CONSENT CALENDAR: Mayor Pringle removed Items A5, A 11 and A 12, A21 and A24 for discussion purposes. Mayor Pringle abstained from Item A20. Council Member Tait abstained from Item A13. Council Member McCracken abstained from Item A25. Council Member Hernandez moved approval of Consent Calendar Items A 1- A25, seconded by Councilmember Chavez, to waive reading in full of all ordinances and resolutions and to approve the following in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar. Roll Call vote: Ayes- 5; Mayor Pringle, Council Members: McCracken, Tait, Hernandez, and Chavez. Noes - O. Motion carried. 118 A1. 105 A2. 160 A3. 160 A4. 123 A6. Reject certain claims filed against the City. Receive and file minutes of the Public Utilities Board meetings held September 4, 2003, October 30,2003 and November 6,2003. Ratify the issuance of a change order to Air New Zealand Limited to increase the amount of the purchase order by $96,000, thereby bringing the total amount of the purchase order to an amount not to exceed $300,000, for repairs to the combustion turbine generator. Accept the low bid of Graybar Electric Company, Inc., in an amount not to exceed $162,149.33 (excluding tax), for the procurement of Modicom substation programmable logic controllers and related parts for a period of one year with four one- year renewal options and authorize the Purchasing Agent to execute the renewal options in accordance with Bid #6448. Award the contract to the lowest responsible bidder, ElectroServ Company, in the amount of $254,855, for 299kV fuel cell at Police Department East Station and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 123 170 105 000 123 123 123 123 158 176 174 ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 6 A7. Approve an agreement with RDK Consulting, Inc., in the amount of $405,577, for pre- construction services and project representative services during the construction of the Haskett Library. A8. Approve the Final Map and Subdivision Agreement of Tract Map No. 16477 with Brookfield Anaheim, LLC for property located at 2300-2340 West Lincoln Avenue. A9. Ratify the appointment of Nathan Zug as Magnolia School District's ex officio representative to the Park and Recreation Commission (Clifford Breeden's term) and Barbara Gonzalez as Anaheim City School District's ex officio member (Susan Preus' term), terms to expire June 30,2007. A 10. Approve a partial fee waiver for the Buttons and Bows Square Dance Club of Anaheim for a benefit event to be held at the Brookhurst Community Center on Sunday, March 7,2004. A 13. Approve and authorize the Public Utilities General Manager to execute the Joint Trench Agreement with Southern California Edison to facilitate joint trench construction cost for work within Underground District No. 44, Broadway Phase 1. Council Member Tait abstained. A 14. Approve and authorize the City Manager to execute Amendment No. 1 to the Workforce Investment Act Vendor Agreement with Mohammad Qamaruddin, an individual doing business as College of Information Technology, to increase the maximum subgrant amount to $100,000 and extend the term of the agreement to June 30, 2005 for continued occupational skills training. A 15. Approve and authorize the City Manager to execute Amendment No. 1 to the Workforce Investment Act Vendor Agreement with Brownson Technical School, Inc. to increase the maximum subgrant amount to $100,000 and extend the term of the agreement to June 30, 2005 for provision of occupational skills services. A16. Approve Amendment Number 1 to the Workforce Investment Act Costs Reimbursement Agreement with the County of Orange and increase revenues and expenditures by $96,151 in Fund 220. A17. RESOLUTION NO. 2004-17 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 10716, 10717, 10718 and 10719). A18. RESOLUTION NO. 2004-18 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and easements (Abandonment No. ABA 1998-00015, adjacent to 1380 South Auto Center Drive). A19. RESOLUTION NO. 2004-19 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing (I) the submittal of an application to the California State Department of Housing and Community Development for funding under the BEGIN Program for the Affordable Housing Project located at the 3100 block of West Lincoln Avenue, and (II) if selected for such funding, the execution of a standard agreement, ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 7 any amendments thereto and any related documents necessary to participate in the BEGIN Program. RESOLUTION NO. 2004-20 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing (I) the submittal of an application to the California State Department of Housing and Community Development for funding under the BEGIN Program for the Affordable Housing Project located at the southwest corner of Anaheim Boulevard and Santa Ana Street and (II) if selected for such funding, the execution of a standard agreement, any amendments thereto and any related documents necessary to participate in the BEGIN Program. RESOLUTION NO. 2004-21 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing (I) the submittal of an application to the California State Department of Housing and community Development for funding under the BEGIN Program for the Affordable Housing Project located at 2300-2330 West Lincoln Avenue, and (II) if selected for such funding, the execution of a standard agreement, and amendments thereto and any related documents necessary to participate in the BEGIN Program. 179 A20. RESOLUTION NO. 2004-22 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM agreeing to a redistribution of property taxes for reorganization RO-04-01 of the Serrano Heights/ Anaheim Hills Elementary School reorganization. Mayor Pringle abstained. 179 A22. ORDINANCE NO. 5900 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2003-00108, Downtown Mixed Use Overlay Zone) (Introduced at the Council meeting of January 27, 2004, Item A28). 179 A23. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2003-00112, Area 2). ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2003-00112, Area 3). ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF 142 ANAHEIM adding Subsection .030 to Sections 18.26.020 and 18.27.020 of Chapters 18.26 and 18.27, respectively, of Title 18 of the Anaheim Municipal Code relating to the u5-Points Neighborhood." 114 A25. Approve minutes of the Council meeting held January 27,2004. Council Member McCracken abstained. END OF CONSENT CALENDAR: 123 A5. Reject all bids submitted for the West Anaheim Youth Center and Police Station. ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 8 Mayor Pringle requested an explanation on the project status and staffs plans for the future. Gary Johnson, Public Works Director, indicated the project that was put out to bid had two estimates that were prepared, one by the pre-construction consultant, Turner Construction and one by a representative of the architect, both of which were not accurate as was determined when the bids were received. Upon further investigation, Mr. Johnson stated, it was found the extensive work on schools in southern California were driving up the costs of trades and building materials. Mr. Johnson indicated staff was working with the architect right now, the details of which Natalie Meeks would address. Ms. Meeks explained staff had gone back to the plans and tried to reduce some of the costs while maintaining the function and the square footage of the building. It was proposed to change some of the finishes and some of the architectural details that were driving up the costs of the building. She reported that staff had originally been trying to build the shared walls of the gym where the lower portions of the building wrapped around, but that this had turned out to be an expensive proposition. Instead the community center and police station portions of this building would be built and when the gym was constructed, it would have a parallel wall. Replying to Mayor Pringle's question, the estimates prior to receipt of the bids was $3.8 million and the low bid was $5.1 million, a significant difference from the estimates. The City Manager interjected that when staff discussed the options available, they did have the option of bringing the award forward to Council to find additional funding, however, the conclusion was given the significant variance and the opportunity to do some value engineering, the three to four-month delay would be worth going out to see what could be accomplished before coming back to Council. Mr. Morgan pointed out this action did not reflect any misunderstanding on staff's part about the priority Council had placed on the construction of this building. To Council Member Tait's question as to who was the architect, Natalie Meeks responded it was John Bates Associates. She also pointed out the $3,800,000 estimate was made right before the bid was advertised and that Turner Construction had not been aware that in the last six-to-eight months, prices had skyrocketed on a lot of different building materials. Mayor Pringle remarked there was much construction occurring in the public facilities area, but that the City wanted to get the best bang for taxpayers' bucks and it was wise to delay the project to go back out to bid, not to build an inferior product, but to see if some of those time issues would reduce the costs. Council Member Hernandez moved to reject all bids; seconded by Council Member Chavez. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: McCracken, Tait, Hernandez and Chavez. Noes - O. Motion Carried. 150 A 11. Reallocate funds for the sportsfield improvements pursuant to the recommendations of the Mayor's Youth Sports Facilities Taskforce [$529,000 from Program 4768-Athletic Fields to Programs 4705- Peralta Park (25,000), 4722-Riverdale Park ($180,000), 4762-Canyon Rim Park ($180,000), 4782-EI Rancho Middle School (72,000) and 4781- Canyon High School ($72,000)]. Terry Lowe, Community Services Director, expanded upon the staff report. He stated the recommended reallocation of funds were to be more specific to the projects listed which included development of lighted athletic fields at Riverdale and Canyon Rim Parks, the master planning of Peralta Park and Crescent School athletic complex, and the lighting study for development at EI Rancho Middle School and Canyon High School. Mr. Lowe indicated these ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 9 projects were all top priority items of the Mayor's Youth Sports Facilities Taskforce. City Manager David Morgan also mentioned these funds were originally designated for generic athletic field improvements and the reallocation tied the funds to specific projects and did not in any way take funds from projects that would otherwise be done. Council Member Chavez to approve Item A 11, seconded by Council Member Tait. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: McCracken, Tait, Hernandez and Chavez. Noes - O. Motion Carried. 150 A 12. Approve that the Mitigated Negative Declaration for the Tiger Woods Learning Center and Dad Miller Golf Course Modifications was adequate to serve as the required environmental documentation for the agreement, approve an agreement with the Tiger Woods Foundation for the Tiger Woods Learning Center and Dad Miller Golf Course Modifications and approve the reallocation of $400,000 from the budged Yorba Regional Park Project to the Tiger Woods/Dad Miller Project. Mayor Pringle asked for additional details on this project. Jack Kudron, Community Services Department, stated the Tiger Woods project was on track and the agreement was before Council for consideration. He noted staff had been working with consultants to modify the golf course in order for the learning center to be placed onto the existing driving range and that the plans were 95 - 98 percent approved. He mentioned with construction expected to begin in March of this year, modifications to the golf course would occur first and the existing range could be vacated and construction on the learning center would happen at that time. Dave Morgan indicated while this project was underway, the public grand opening of the new Anaheim Hills Club House would take place Saturday, February 21, 2004 from noon to 4:00 p.m. Council Member Hernandez moved to approve Item A12; seconded by Council Member Tait. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: McCracken, Tait, Hernandez and Chavez. Noes - O. Motion Carried. 179 A21. RESOLUTION NO. 2004-23 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM modifying building, construction, grading and other development fee schedules to establish and promote a Home Improvement Holiday. Mayor Pringle remarked that one of the most important jobs Council had was to support the community, particularly in the area of home ownership and this program was to inspire and encourage reinvestment in Anaheim's neighborhoods. Sheri Vander Dussen, Planning Director, stated the Home Improvement Holiday program was intended to promote investment in Anaheim's neighborhoods and the City proposed to waive all City fees associated with review and issuance of permits for improvements to single family homes from March 1 through May 31st. Improvements that would be eligible, explained Ms. Vander Dussen, were new water heaters, new swimming pools, new roofs, kitchen remodels to room additions and anything in between. She noted the City would guarantee a review time of five working days for all the applications submitted and the goal would be to process most of the applications over the counter. Penalty fees would also be waived so if someone had done improvements to their home and did not obtain permits for those improvements, they could come in and obtain permits during this time period provided they complied with all building and zoning code provisions and the City would not charge any penalty fees. The City also intended to provide higher level of service for people that submitted applications for amnesty in providing ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 10 some technical assistance in determining what would be necessary to bring their improvements up to code. Ms. Vander Dussen pointed out the City was not intending to waive fees for discretionary approvals that might be required, such as variances, or for granting permits that involved removal of more than 100 cubic yards of dirt. She also indicated that some applications might have to pay school or sanitation fees. As a bonus, the Utilities Department was going to provide a tree with every permit issued so people would have an opportunity to beautify their yards as well as their homes. Council Member Tait indicated he was supportive of the program. Council Member McCracken pointed out the permit fees charged were for services given by the City and those revenues had been budgeted for this fiscal year and she would be more comfortable postponing the program until budget time for the next fiscal year and schedule the program for the summer so the City would not be using other funds to make up the loss in revenue of from $250,000 to $500,000. Council Member Hernandez stated there was a cost to this program and with the budget shortfall the City was facing, he did not feel he could support the program. The City Manager indicated the first $273,000 cost associated with the program would come from the budgeted Neighborhood Improvement Fund which was designed to do improvements in neighborhoods and those improvements were 100 percent City funded. He indicated that what was unique about this program was that the homeowner was contributing monies as well to make improvements to his or her property. Since the funds were in this year's budget and were designed to do neighborhood improvements, staff saw some consistency in using the funds in this fashion to help underwrite private investment in homes. Mr. Morgan remarked that to the extent the cost of the program exceeded $273,000, the general fund reserve would make up the difference. Council Member Hernandez remarked that the contingency fund was sacrosanct. He felt at a time when the City was high on the terrorism target list and there was a shortage of officers in the police department, he could not be supportive of the program. Council Member Chavez felt government needed to be responsive to the community and with this program homeowners would be able to make home improvements, increase property values, and beautify neighborhood landscaping. He pointed out the loss of funds would be offset in the future by increased property values. Mayor Pringle indicated the City could spend $200,000 in neighborhood improvements as a one time expenditure or it could encourage the leverage of those dollars multi-fold by allowing homeowners to make improvements to their homes and signal to all that the City encouraged investment in their homes with the increased property values as a benefit in the future. Council Member Tait moved to approve Item A21 and Council Member Chavez seconded the motion. Roll Call vote: Ayes - 3; Mayor Pringle, Council Members: Tait and Chavez. Noes- 2; Council Members Hernandez and McCracken. Motion Carried. 123 A24. Award a construction contract for the BNSF Railroad Corridor Soundwall Project from Imperial Highway to Weir Canyon RoadNorba Linda Boulevard (Continued from the Council meeting of January 7,2004, Item A29). ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 11 Gary Johnson, Public Works Director, stated bids were opened three weeks ago with the City receiving seven bids for the BNSF Soundwall project. He indicated the City reviewed the low bidder as to whether he was responsive in regard to the failure to meet the required DBE goal and then reviewed the documentation submitted as to a good faith effort. The City's DBE coordinator found the good faith effort was insufficient. Mr. Johnson noted the process allowed for an appeal that was requested by the apparent low bidder, Banshee Construction Company, and a reconsideration hearing was held the morning of February 9th with the finding upholding the original determination, which resulted in Banshee Construction being non-responsive. Consequently, Mr. Johnson stated, staff recommended contract award to Peterson Chase General Engineering Construction Company. Mayor Pringle indicated that Council had heard the protests of Banshee Construction on this date. He also confirmed staffs position that the City of Anaheim was required to insure that the proper standards were met on the DBE goals as the City would receive federal funding for this project, that Banshee Construction did not meet that federal standard and that the City was recommending award of the contract to the second lowest responsible bidder, Peterson Chase. Council Member Hernandez asked for clarification on the earlier comment that DBE's were goals, not quotas. City Attorney Jack White clarified that the numbers were not quotas and because federal funds were involved, the City was required to comply with the code of federal regulations for this project to make sure the contractor had made good faith efforts to use disadvantaged business enterprises. A goal had been stated in the project and in the specifications of 13.5 percent, which did not mean that a quota had to be met. Mr. White explained there were two ways to show good faith efforts in complying with the goal. One was to actually meet the standard of 13.5 percent, which the second and third low bidder both did in their bids. The other way was if a contractor did not meet the standard of 13.5 percent, the contractor could demonstrate that all necessary and reasonable means were used to try to meet that standard which was what happened in this case. Mr. White remarked the ostensible low bidder, Banshee, incorporated 6.3 percent instead of 13.5 percent, less than half of the required standard. Upon calculating that, City staff notified Banshee and gave them the opportunity to explain how they had made good faith efforts to try to meet the standard. Banshee submitted additional information, the contract compliance officer in the Public Works Department reviewed that submittal and determined Banshee had not made sufficient good faith efforts. Mr. White reiterated the process allowed an appeal from that decision and a hearing officer heard that appeal on February 9th and concurred that good faith efforts had not been demonstrated in the evidence that had been presented by Banshee primarily because when you determine that other bidders were able to meet the standard, it became a higher burden then as to why this contractor was not able to do what other bidders were able to do. It was determined that the efforts that were made to encourage or solicit bids from DBE subcontractors was not adequate in this case to demonstrate good faith efforts to meet the standard. Council Member Hernandez commented that the City of Anaheim was not being arbitrary or less than diligent in taking the next lowest bid and this action was being taken because the City was compelled to do so. Mr. White replied in this instance where the legal requirements were not met, it put the City at risk with regard to a future federal audit of these funds as to how they were used and how the contract was awarded. He pointed out it was in the City's best interests to make sure federal procedures were followed. ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 12 Council Member Hernandez moved to approve Item A24; seconded by Council Member Tait. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: McCracken, Tait, Hernandez and Chavez. Noes - O. Motion Carried. 105 A26. Consider appointing a citizen to serve on the Sesquicentennial Commission, term to expire December 31,2007. APPOINTMENT: (Expire December 31,2007). Without objection from Council, continued to February 24, 2004. 105 A27. Consider appointing a member to serve on the Cultural and Heritage Commission, term to expire June 30,2007. APPOINTMENT: (CounciIMemberTa~ (Expire June 30, 2007). Without objection from Council, continued to February 24, 2004. 105 A28. Consider appointing two members to serve on the Housing and Community Development Commission, one member to represent the South and one to represent the West Neighborhood Council. APPOINTMENT: (Expire June 30, 2006). APPOINTMENT: (Expire June 30, 2007). Without objection from Council, continued to February 24, 2004. PUBLIC HEARINGS: 179 B1. GENERAL PLAN AMENDMENT NO. 2003-00415 RECLASSIFICATION NO. 2003-00113 WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 2003-04800 REQUEST FOR CITY COUNCIL REVIEW OF ITEM NOS. 9a, 9c, 9d AND ge AND MITIGATED NEGATIVE DECLARATION: OWNER: Melvin R. Schantz, 21 Chelsea Point, Dana Point, CA 92629 AGENT: Hossein Zandi, Caliber Motors, 5395 East La Palma Avenue Anaheim, CA 92807 LOCATION: Property is approximately 5.7 acres, located at the northeast terminus of Via Cortez and south of the SR-91 (Riverside Freeway), having a frontage of 161 feet on the terminus of Via Cortez, located 837 feet north of the centerline of Santa Ana Canyon Road. GENERAL PLAN AMENDMENT NO. 2003-00415 - To amend the Land Use Element Map of the Anaheim General Plan redesignating the property from the Hillside Low- Medium Density Residential land use designation to the General Commercial land use designation. CONDITIONAL USE PERMIT NO. 2003-04800 - To permit and construct an automotive sales dealership with accessory roof-mounted equipment with a structural height greater than 35 feet with waivers of: (a) maximum number of wall signs, (b) maximum structural ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 13 height adjacent to a single-family residential zone, (c) minimum structural setback adjacent to a freeway, and (d) required landscape setback adjacent to an interior site boundary line abutting a residential zone. RECLASSIFICATION NO. 2003-00113 - To reclassify the property from the RS-5000 (SC) (Residential, Single-Family; Scenic Corridor Overlay) zone to the CL (SC) (Commercial, Limited; Scenic Corridor Overlay) zone. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended adoption of General Plan Amendment No. 2003-00415, Exhibit A (PC2003-171) (6 yes votes, Commissioner Romero absent). Reclassification No. 2003-00113 granted (PC2003-172) Waiver of Code Requirement Section (b) approved (5 yes votes, Commissioner O'Connell voted no and Commissioner Romero absent); Sections (a), (c) and (d) approved (6 yes votes, Commissioner Romero absent). Conditional Use Permit granted, in part (PC2003-173) (6 yes votes, Commissioner Romero absent). Recommended City Council Review of Item Nos. 9a, 9c, 9d and ge. (Scheduled for a public hearing due to the General Plan). MOTION: CEQA FINDING: MITIGATED NEGATIVE DECLARATION. RESOLUTION NO.: 2004-24 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AN AMENDMENT TO THE LAND USE ELEMENT OF THE ANAHEIM GENERAL PLAN AMENDMENT DESIGNATED AS AMENDMENT NO. 2003- 00415. RESOLUTION NO.: 2004-25 RESOLUTION F THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMING THAT THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE SHOULD BE AMDNEDED AND THAT THE BOUNDARIES OF CERTAIN ZONES SHOULD BE CHANGED RECLASSIFICATION NO. 2003-00113. RESOLUTION NO.: 2004-26 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 2003-04800 IN PART. Sherri Vander Dussen, Planning Director, indicated Item B1 involved a general plan amendment which required Council approval. She noted the existing general plan designation allowed single family residential at a maximum of 34 units for the 5.7 acre site and that the applicant had requested the general plan designation of commercial. In addition to the amendment, Council would also be considering reclassification from a residential district to a commercial zone and a conditional use permit for an auto sales agency. Ms. Vander Dussen noted the project received unanimous approval from the Planning Commission. She pointed out the developer had determined the land was not suitable for housing due to physical constraints and numerous easements running through it and the proposed project was intended to be a satellite facility for Caliber Motors Mercedes Benz. It was pointed out that no access would be provided through any residential area. In addition, a substantial amount of landscaping was provided for on the site. The location would not include any facilities for service repair, parts or body shop and large trucks were not expected as all vehicles for sale at this site would be individually driven from the main facility at La Palma Avenue. Ms. Vander Dussen explained that no outdoor audio systems would be used and signage would be ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 14 restricted to three wall signs. The hours of operation would be limited from 9:00 A.M. to 7:00 P.M. She reported four waivers to the zoning code were being requested: 1) increasing the maximum number of wall signs in exchange for not including any free standing signs, 2) increasing the maximum building height adjacent to the residential zone boundary, 3) reducing the setback adjacent to the freeway because of narrowness of the property and 4) reducing the landscaping to adjacent residential tract because of the existing drainage channel that prevents landscape installation. The Planning Commission approved and reviewed the revised building plans which improved the aesthetics of the buildings by reducing height and eliminated roof-mounted equipment, using enhanced building materials and reducing window area facing residential uses. Mayor Pringle opened the public hearing and requested applicant and supporters of the project speak first. Don Bering, Chief Financial Officer for Caliber Motors, indicated the dealership had been in Anaheim for twenty years and was expecting sales to come in this year around $200,000,000 to generate in excess of $1,000,000 a year in sales tax revenue for the City. The new site would be a vehicle sales facility only and display cars in an outdoor setting in a highly landscaped environment and he hoped approval of the project would permit the dealership to expand and stay in the City of Anaheim. He explained the Planning Department had opposition to certain elements in the design and he had worked with planning staff, took public input and came up with the plan before Council. Mr. Bering requested one change which was to leave the illuminated sign on after the 9:00 P.M. closing in order to have it viewed by vehicles on the 91 freeway. Joe Marca, Marka Architect Inc, indicated his firm specialized in design of automobile dealerships. He was aware of opposition to the project and tried to incorporate and mitigate the public's concerns. Caliber's main efforts were reducing operations on the site to include only vehicle sales and vehicle detailing on the site with no service drives and no regular servicing of customer vehicles and no dropping off of vehicles through transport trips. He indicated the site plan had less than eleven percent buildings that were below the commercial standard and 18 percent of the site would be landscaped with high quality landscaping as conditioned by planning staff. He noted that in response to the Planning Commission and community concerns, Caliber had reduced sight lighting standards to 18 feet and to 12 feet adjacent to residential property. City staff required there be less than two foot candles and mostly zero foot candles at the property line at all sides of project. The exterior of the building had also been revised as requested by the Planning Commission and the facility would not be seen from the Santa Ana Corridor. Council Member Hernandez asked if there would be any physical barrier between the property and the freeway. Mr. Marca replied the barrier proposed was the required Caltrans chain link fence although Caliber intended to work with Caltrans to enhance the landscape along that area. James Smelling spoke in support of the project indicating that Caliber Motors took him on a tour of the facility and he believed the operation was quiet and would not impact the neighborhood but would do much for the community. ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 15 Ken Freeman, resident of Anaheim since 1951, spoke in support of the project. Stephanie O'Neill, resident, spoke in favor of the project, representing Concerned Citizens of Canyon. She pointed to the land as being unsuitable for parks and homes and that the City would gain revenue during this economic downturn. Upon careful review, Ms. O'Neill stated the Board of Concerned Citizen supported the project. Lucille Kring spoke in support of the projected and felt the area was appropriate to redesignate as commercial. She pointed to enabling expansion of a business that had been part of the community for many years and the additional revenue and new jobs that would be added as reasons for her support. Cheryl Thomson, resident, spent over one year and half doing due diligence for this piece of property, as project manager for the Canyon Oaks Project. She indicated the property was not suitable for homes or a sound wall because of the municipal water district pipeline and was supportive of Caliber Motors development. Jack Jakowski, managing partner of Canyon Plaza Shopping Center, was supportive of the high quality and creative land use that Caliber Motors had designed for a challenging site. Sherry Garcia, resident, spoke in opposition to the project citing pedestrian safety and traffic considerations with test driving of new vehicles. Corey Shin, Anaheim Hills resident, had just learned about the development yesterday and was opposed to the project indicating homes could be built there as well as a sound wall. Roy Brown, resident, took issue and exception to the conclusions and assumptions made by Planning Commission and felt neighborhood property values would be negatively impacted by the development. Mr. Brown expressed concerns related to traffic, visual blight, and pedestrian safety. Skip Spence, was opposed to the project and personally circulated a petition in opposition to the project receiving 500 to 600 signatures. Phil John LaRoche, resident, helped found the Santa Ana Canyon Property Owners Association to preserve the rural atmosphere of the Santa Ana Canyon, and believed the proposed dealership was incompatible with existing residential uses and would blight the scenic corridor. Cosh Oza, resident, opposed the project voicing traffic concerns and requested Council delay decision on the project until all homeowners in the Canyon Oaks projects had moved in and had an opportunity to comment. William Smith, resident, spoke in opposition to development as a member of silent majority indicating the project would intrude on the scenic corridor and the property should be saved should the need to widen the 91 freeway occur. Dan Reeves, resident, was opposed to the project and requested the City be patient until a project was found that fit the location better. Paul Egger, resident, opposed the project for safety and traffic concerns. ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 16 Sonya Grewal, speaking on behalf of Anaheim Citizens Coalition, spoke in opposition citing the effect on the scenic corridor and the impacts to the neighborhoods. Virginia Ashton Hardy, resident of Canyon Oaks, voiced concerns regarding traffic safety. Monty Egger, resident, was opposed to the project for traffic concerns. Derek Erglock, resident, spoke of safety concerns when people test drive vehicles. Mayor Pringle closed the public hearing. Mayor Pringle clarified the three locations for signs on the property. The applicant indicated there might be a small directional sign at the entrance on Via Cortez but that would depend on the City's standards for that sign as to whether it would be illuminated. Ms. Vander Dussen explained there was a condition of approval that required the applicant to display the address numerals on the roof of the building so that it was visible from a helicopter and that does have to be in four foot high letters but it would not be visible unless viewed from above the roof. The only additional signage allowed under the code that was not on the plans was directional signage and that was restricted to very small square footage, ground-mounted, to direct people onto the property. Council Member Chavez requested clarification on lighting. Mr. Marka indicated the lighting would be dimmed to security level at 9:00 p.m. which would mean some low pressure sodium light would remain on to allow the site to be safe. Council Member Chavez recommended a policy for the dealership that when there was test driving it was performed in the commercial area and away from the neighborhoods. Caliber Motors indicated they would be willing to post a couple of test drive routes that salesmen would adhere to. Ms. Vander Dussen indicated that there was a conditional of approval that stipulated to that fact. Council Member McCracken indicated she had a concern for the community as well as for the scenic corridor, traffic, and pedestrian safety. She recognized the challenges involved in building on the property with the drainage channel running through it and that the real challenge was to find a suitable use for the property and hoped the citizens could work and develop some alternatives for the site. Council Member Hernandez stated he was sensitive to the numbers of voices in opposition to the project, recognized the revenue that Caliber Motors had brought to the City, but would not support the development. Council Member Chavez thanked all residents for their input and stated the decision was difficult. He had received a few emails from the community but had not been contacted by Caliber Motors. He felt neighboring property values would not be impacted, and that the lighting on the site after 9:00 p.m. would be less than lighting impacts from the 91 freeway. With test driving routes approved by the Planning Department, and the fact that the property owner had the right to development, he was supportive of the project. Council Member Tait was supportive of the project, indicating that Caliber Motors delivered a quality project, with less traffic impacts to the neighborhoods than a residential development would have and moved to approve the project as presented. ANAHEIM CITY COUNCIL MEETING MINUTES February 10, 2004 PAGE 17 Mayor Pringle indicated the applicant met with him with a proposal that was quite different from the proposal before Council on this date. He had recommended Caliber Motors speak to the community and staff and work through the process, which they did. The Mayor stated the struggle was the right use for the property at this time, indicating that it had been approved for 22 multi-story homes and had the ability to construct 34 homes on the site per the code, which would have been more of an impact to the existing residential neighborhoods than the current development. Park development had been considered for the site but physical constraints and other impacts to the community precluded that use. The Mayor pointed out there were 45 conditions of approval to this development and the Planning staff and Caliber Motors had worked hard to come up with a suitable design and he was supportive of the project. Council Member Tait moved to approve the CEQA finding of Mitigated Negative Declaration, to approve Resolution No. 2004-24 amending the General Plan, to approve Resolution 2004-25 reclassifying zoning and to approve Resolution 2004-25 for Conditional Use Permit No. 2003- 04800; seconded by Council Member Chavez. Roll Call Vote: Ayes - 3; Mayor Pringle, Council Members Tait and Chavez. Noes - 2; Council Members McCracken and Hernandez. Motion Carried. REPORT ON CLOSED SESSION ITEMS: Mr. Jack White reported two items from the closed session: The City Council unanimously authorized the City Attorney to file legal action against All American Asphalt Company for indemnification. In the case of Pacific Islandia California U.S. Bankruptcy Court, Case No. SA0311173, the City Council unanimously authorized settlement of claims for transient occupancy tax by accepting the sum of $134,879.53 in full settlement of delinquent tax. COUNCIL COMMUNICATIONS: Council Member McCracken announced the groundbreaking of Orange County Sanitation District and Orange County Water District's pipelining of their groundwater replenishment system on Thursday, February 19th at the Arrowhead Pond. Mayor Pringle announced the ground breaking for the BNSF Soundwall project to take place next week. He also mentioned his participation in the Mayor's Institutive on City Design, a conference offered at no cost to the taxpayers to provide solutions to design challenges for cities. ADJOURNMENT: There being no further business to come before the City Council, Mayor Pringle adjourned the meeting at 8:35 P.M. Res96~tfully submi~d: dd~a $t~j./:1- Sheryll Set1roeder, CMC City Clerk