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1977/08/1677-938 City. Hall, Anaheim, California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. 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: Tom Liegler PUBLIC WORKS DIRECTOR: Thornton Piersall UTILITIES STAFF SUPERVISOR: R. E. Butryn ASSISTANT UTILITIES DIRECTOR: Ed Alario ASSISTANT PLANNING DIRECTOR - ZONING: Annika Santalahti Mayor Thom called the meeting to order and welcomed those in attendance to the Council meeting. INVOCATION: Reverend Randy Rhoades of the Melodyland Hotline Center gave the Invocation. FLAG SALUTE: Councilman William I. Kott led the assembly in the Pledge of Allegiance to the Flag. 119: PROCLAMATIONS: The following proclamations were issued by Mayor Thom and approved by the City Council: "Warner-Lambert Day in Anaheim" - August 16, 1977 "American Legion Baseball Week in Anaheim" - August 22-28, 1977 MINUTES: On motion by Councilwoman Kaywood, seconded by Councilman Roth, minutes of the Anaheim City Council regular meeting held June 28, 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 read- ing of such ordinance or resolution. Councilman Roth seconded the motion. MOTION UNANIMOUSLY CARRIED. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $1,509,963.20, in accordance with the 1977-78 Budget, were approved. 174.123: ARTHUR YOUNG & COMPANY FINANCIAL AUDIT OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS: Councilman Thom offered Resolution No. 77R-568 for adoption authorizing an agreement with Arthur Young & Company to perform a financial audit of the financial statements for the first- and second-year Community Development Block Grant Program funds, in an amount not to exceed $3,000 and to expire October 31, 1977, as recom- mended in memorandum dated August 9, 1977 from the Executive Director of Community Development, Norm Priest. Refer to Resolution Book. RESOLUTION NO. 77R-568: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT WITH ARTHUR YOUNG AND COMPANY TO PERFORM AUDITING SERVICES AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY. 77-939 C__ity Hall~ Anaheim~ California - COUNCIL MINUTES - August 16~ 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-568 duly passed and adopted. 117: APPOINTMENT OF DEPUTY CITY TREASURER: On motion by Councilman Kott, seconded by Councilman Roth, Oletha M. Meadows was appointed Deputy City Treasurer, as recom- mended in memorandum dated August 9, 1977 from George Ferrone, Director of Finance. MOTION CARRIED. 148: VOTING DELEGATE AND ALTERNATE TO THE 1977 LRAGUE OF CALIFORNIA CITIES ANNNUAL CONFERENCE: Councilman Kott moved that Councilman Roth be appointed the official voting delegate to the 1977 League of California Cities Annual Conference to be held in San Francisco, September 25-28, 1977, with City Clerk Linda Roberts as the alternate. Councilman Thom seconded the motion. Before a vote was taken, Councilman Seymour stated that he supported Councilman Roth as the City's voting delegate, but considered it a personal affront to Council- woman Kaywood not to be appointed the alternate since she was attending the Conference. Councilwoman Kaywood was concerned that, under the present circumstances, she could not leave the City, especially since absence at a Council meeting would be involved, and stated she would not be going to the Conference this year. A vote was taken on the foregoing motion. MOTION CARRIED. 114 AND 151: AMENDMENT TO COUNCIL POLICY NO. 202 AND ADOPTION OF NEW COUNCIL POLICY NO. 803: On motion by Councilman Kott, seconded by Councilman Roth, an amendment was authorized to Council Policy No. 202 and adoption of new Council Policy No. 803, both as set forth below, prohibiting permanent encroachments within public easement areas and eliminating "airspace only" easements for overhead electrical transmission lines, both effective September 1, 1977 as recormnended in memorandums dated July 29 and August 12, 1977, respectively, from Jack L. White, Deputy City Attorney. COUNCIL POLICY NO. 202: It is the policy of the City Council that requests for encroachment permits not involving the erection of any permanent building or structure shall be handled as an administrative procedure, not requiring Council action. No encroachment permits shall be granted, however, except upon the execution of an agreement by the permittee indemnifying and holding the City harmless from any potential lia- bility relating to the exercise of said permit. It is the policy of the City Council that no encroachment permit shall be issued for the erection of any permanent building or structure. The City Council maY, at its discretion, however, abandon any portion of an existing public easement or right of way where it finds that such abandonment will not impair or limit the City's use or access to the easement or right of way for those purposes for which the same was obtained. 77-940 City Hall~ Anaheim~ California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. On September 16, 1961, by Resolution No. 7205, the City Council authorized the Mayor and City Clerk to execute all permits to encroach which have been cleared through all departments and agencies involved and that have been approved by the City Manager. It is the policy of the City Council that a license fee in the amount of Fifty Dollars ($50.00) be imposed for encroachment permits; and that a fee in the amount of One Hundred Dollars ($100.00) be imposed for abandonments requested by owners of private properties. COUNCIL POLICY NO. 803: It is the policy of the City Council that any public utility easement required and/or accepted by the City for overhead electrical lines shall include not only the grant of right-of-way for said transmission lines but also an easement for use of the underlying land itself. The width of said easement shall be determined by the City on an individual case basis. If an easement cannot be provided to the City in conformity with the preceding paragraph, it is the policy of the City Council to require the developer, builder or property owner to provide an easement unobstructed by any permanent structure and deemed suitable by the City or to provide for the rerouting, relocation and change of the electrical utilities to provide such an unobstructed easement and/or underground said electrical utilities and to pay to the City the appropriate charges for such undergrounding in accordance with the rates, rules and regulations established by the City therefor. MOTION CARRIED. 127: PROPOSITION 9 DISCLOSURE STATEMENTS - LETTER TO FAIR POLITICAL PRACTICES COMMISSION: City Attorney William Hopkins presented revised letter dated August 17, 1977 addressed to the Fair Political Practices Commission which con- tained additional explanatory material and incorporated suggestions made by the Council at the meeting of August 9, 1977. He also pointed out tw6 minor changes, one on Page 3, Item 3, deleting the words "annual passes" and a clerical correction on Page 3, Item 5. On motion by Councilwoman Kaywood, seconded by Councilman Kott, letter dated August 17, 1977 by the City Attorney to the Fair Political Practices Commission, requesting a formal opinion on Proposition 9 Disclosure Statements, Gifts, was approved. MOTION CARRIED. 105: RESIGNATION OF MRS. DIXIE EDWARDS FROM MOTHER COLONY HOUSE ADVISORY BOARD: On motion by Councilman Thom, seconded by Councilman Seymour, the resignation of Mrs. Dixie Edwards from the Mother Colony House Advisory Board was accepted with regret, effective September 1, 1977. Staff was also instructed to send a letter of thanks to Mrs. Edwards for her outstanding services. MOTION CARRIED. 123: FIRST AMENDMENT TO SUNDESERT NUCLEAR PLANT PLANNING AND FEASIBILITY STUDY AGREEMENT: On motion by Councilman Seymour, seconded by Councilwoman Kaywood, the First Amendment to the Planning and Feasibility Study Agreement for the Sundesert Nuclear Plant, to increase Riverside's percentage participation and to include the Los Angeles Department of Water and Power and the City of Burbank in the agreement, and authorizing the Utilities Director to execute said amendment, 77-941 .City Hall, Anaheim, California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. was approved as recommended in memorandum dated July 15, 1977 from the Utilities Director and memorandum dated August 5, 1977 from the Public Utilities Board. Councilman Thom voted "No". MOTION CARRIED. 158: PROPOSED SALE OF CITY-OWNED PROPERTY, ORANGEWOOD AVENUE AND RAMPART STREET - MATLOW-KENNEDY CORPORATION:~, Mr. Kenfield Kennedy explained that as discussed at the meeting of July 19, 1977, (see minutes that date), the necessary'documents were provided for Council consideration and his corporation was interested in moving forward and now it was just a matter of awaiting information from the MAI appraiser as to the value of the property in question. City Attorney Hopkins explained that the contract document provided was received on Friday, August 12, 1977 and he did not believe that the Council yet had an opportunity to review it. The Mayor asked if there was anyone else present interested in the consideration of an exclusive right agreement on the subject property. Mr. David Hook, 501 North Brookhurst, representing Sunset Construction, was con- cerned that in May, when it was revealed that the City was considering sale or lease of the property, he directed a letter to Mr. Thornton Piersall, Director of Public Works in June, but later was surprised to learn that consideration on the project was already being conducted with prospects of an exclusive agreement. Although Mr. Piersall acknowleged by phone that he had received the letter, no additional reply was forthcoming, and Mr. Hook did not consider that to be proper since he felt he was entitled to a response. Mr. Hook's main points of contention were: (1) The proposal was now referred to as a lease or sale; he wanted clarification if, in actuality, it was a sale or a lease. (2) The terms under which the City was negotiating should be made available and ground well-established and clear. (3) If guidelines were established and made known to those interested, including the stipulation of a security deposit of good faith, the City might get better terms. He contended no one was told the specific conditions. (4) The proposal, in reality, was a form of liquidation further down stream. (5) When the City made up its mind as to specific guidelines, he wanted to be in the running. He was willing to write out a check, but no one told him the conditions. (6) If the City were to list zonings and densities available for the site, they would then know how to approach. (7) If it was not yet decided how the City was going to sell or lease the land and yet $50,000 was required, that was asking a great deal; but for an exclusive right to negotiate, it was very inexpensive. Lengthy discussion followed between the Council and Mr. Hook wherein Mayor Thom explained, as he had at the previous meeting, that since the 1960s, it was no secret the City had been entertaining various proposals by a myriad of developers, all of which had come and gone as none could put anything together financially. 77-942 ~ity Hall~ Anaheim, California - COUNCIL MINUTES - August 16, 1977~ 1:30 P.M. Then, due to the amount of time being spent on analyzing proposals, a requirement for front money was imposed, not to be returned, thus recompensing the City for the exhaustive analysis that each required. Matlow-Kennedy made a proposal and indicated a willingness to put up the required money, and the City was interested in development proposals that would be an enhancement to the Stadium. He also stated that he was under the impression that because part of the land was pur- chased under a lease-back with Anaheim Stadium Inc., and the bonded indebtedness went with the land, the City could not sell, but only lease the property. City Attorney Hopkins interjected that it was determined the land was not included in the lease-back, but no formal opinion had been written on that aspect. Councilman Roth stated he voted against the Matlow-Kennedy proposal because he felt the City would be faced with the dilemma now before it relative to Mr. Hook's contention, and an appraisal should have been received before considering an exclu- sive negotiation. Councilman Seymour, in answering some of Mr. Hook's concerns, also explained the many proposals that had been received relative to the subject property. His main concern was to protect the investment the citizens of Anaheim had at the Stadium and assuring that proper development took place enhancing that investment, and he was not interested in reaching any conclusion or entering into any trans- action until he knew the quality of the development and its subsequent impact. He had seen the property go through a series of proposals which never came to fruition. In this case, Mr. Kennedy put up $50,000 as a demonstration of good faith and thus far he was the only one who had done so. Mr. Hook stated that he would write out a check, but no one told him what the conditions were. If the City wanted to control the type of development, it should so stipulate. Councilman Seymour continued that Mr. Kennedy had also not been informed of any conditions and the whole point was that the Council should not design a proposal for the property, but review and react to proposals that came to ~them. He suggested that Mr. Hook leave a check for $50,000 and bring back a proposal they could react to. Further discussion followed between Councilman Seymour and Mr. Hook at the conclusion of which, Councilman Seymour urged Mr. Hook to participate in the proposal and the cut-off date would occur when the Council made up its mind to react favorably to a specific proposal. Mr. Thornton Piersall, Director of Public Works, clarified that it would be approxi- mately one month until the formal appraisal on the land would be submitted. At the conclusion of further discussion, Councilman Seymour expressed his concern relative to the City's ethics in dealing with Mr. Kennedy since he (Kennedy) was led to believe that once he submitted his $50,000, it was his understanding that the City would work with good intent at reaching some type of an agreement. Today, he sensed an opening to other proposals and if that was the case, in all fairness to Mr. Kennedy, the City should indicate that whatever promises he made be forgotten, and he should be given the opportunity to come up with a whole new transaction and a new letter of credit as a sign of good faith since he was the first developer since 1968 to put up the money in the first place. 77-943 ~ity Hall, Anaheim, California - COUNCIL MINUTES - August 16, 1977~ 1:30 P.M. The Mayor explained that the Council could do one of two things: (1) either accept the Kennedy proposal and give him an exclusive right to negoiate agreement, excluding all others, or (2) return his letter of credit and proposal and have him resubmit another proposal in 30 days. City Attorney Hopkins confirmed for Councilman Kott that relative to recommendation number one as articulated by the Mayor, at this point, there was no acceptance of a letter of credit. Although it was submitted, no action had been taken, thus there was no legal significance attached. If the Council accepted it, there would be an agreement. Mr. Kennedy, acknowledging the dilemma as explained by the Mayor, stated that first, he wanted to reach a harmonious solution, but secondly he'was told to put up $50,000 literally by "sunset" which he did. Another important point he wanted clarified with which Mr. Hook was not familiar, was the fact that the Matlow-Kennedy concept did not just include the Rampart Street property and that was an area where Mr. Hook was misled in his understanding. Their proposal included the sale of the Rampart Street property and the air rights and a lease of a portion of the Stadium parking lot to provide more income to the City. He wanted the matter resolved but would respect the judgment of the Council. They were very much interested in building a first-class major development. Discussion followed between Council and staff relative to proper notice being given to the public when municipal property was sold. It was the opinion of City Attorney Hopkins that placing the item on the Council Agenda, constituted public notice. Mr. Tom Liegler, Stadium-Convention Center-Golf Director, stressed that the dilemma with which the Council was faced, had occurred in the past. He thereupon elaborated on a number of proposals that had been submitted on the subject property. He sug- gested that past history would indicate that the first person or group who came in with an idea was given the opportunity to provide a proposal with a fair amount of time to comply. As soon as the City took an offer from one party, several parties suggested they could build something bigger and better, and one-by-one none fulfilled the expectations or brought their proposal to fruition. Mr. Hook reiterated his eagerness to establish at least a minimal guideline under which the City was working relative to either a sale or lease of the land. He also explained for Councilman Seymour that his company was in the business of building professional of{ice space, but they were currently out of real estate in the City, especially since they were informed that the State was going to acquire the 8 acres of property at Freedman Way for Caltrans purposes on which a conditional use permit was recently given to Sunset Construction. They had a large clientele, and occupancy in the City was running at 99.9 percent. The concept for the subject property was a professional park similar to a college campus with controlled landscaping for the entire 16.6 acres, controlled architecture and design, and a limitation on height. A bank building and food service would probably be included and that would be the extent of their project. MOTION: Councilman Kott was of the opinion that thus far the Council had not acted in bad faith relative to the proposals that had been received on the property. How- ever, in view of the changes, accusations and other possible proposals and with Mr. Kennedy's amenable attitude, he moved that Mr. Kennedy's letter of credit be returned 77-944 City Hall~ Anaheim~ California - COUNCIL MINUTES - August 16, 1977~ 1:30 P.M. and a date established, possibly October 1 or 15, 1977, to have various proposals submitted with $50,000 deposits, and in the meantime, as suggested by the City Attorney, advertise for an appropriate amount of time. These actions would thus eliminate many problems and a decision could be made at the end of that period. Councilman Roth seconded the motion. Before a vote was taken, Councilwoman Kaywood was of the opinion that the proposed motion would change the whole situation from Mr. Kennedy's standpoint and she was interested in knowing his reaction. Mr. Kennedy stated that time was of the essence and he was in the same position as Mr. Hook relative to the office space market. He was told to come up with $50,000 and to prepare an agreement for Council consideration subject only to the mutual approval of the sale price of the ground being appraised by the MAI appraiser. They were proposing a bridge across Orangewood and utilization of a portion of the Stadium parking area to provide income and not just acquisition of the Rampart property. They wanted to proceed as quickly as possible and did all they could to accomplish what they were asked to do. From his point of view, he wanted the matter resolved. Councilman Seymour indicated he was inclined to be sympathetic with Mr. Kennedy's point of view since he had dealt totally above board and in a straightforward manner. He felt obligated to honor the agreement with Kennedy and stated for the Council, press, and members of the public, in order not to lose sight of the basic issue, it should be made clear that any finalized agreement with Kennedy would be subject to the City's approval, as well as the value placed on the land by the qualified MAI appraiser. This would eliminate any allegations or inference that because the matter was not bid to the open public, a financial arrangement was reached not in the best interest of the taxpayer. He was also inclined to go ahead with the Matlow-Kennedy proposal not only because of their track record of success and ability, but also because of the quality of the dealings the City Council had experienced since Mr. Kennedy initially made the proposal and his coming forth with the required good faith deposit without hesitation. Actual performance was difficult to find. A vote was taken on the foregoing motion by Councilman Kott and failed to carry by the following vote: AYES: NOES: COUNCIL MEMBERS: Kott and Roth COUNCIL MEMBERS: Kaywood, Seymour and Thom Thereupon, Councilman Seymour offered a motion directing the City Attorney to proceed with the analysis of the agreement delivered to the City by the Matlow- Kennedy Corporation on Friday, August 12, 1977 and report back to the Council at the earliest practicable date with an agreement that he could recommend to the Council for final decision and further, subject to the appraisal of the property. Councilman Thom seconded the motion. Councilman Roth voted "No". MOTION CARRIED. 108: DINNER DANCING PLACE PERMIT: Application for Mr. Stox Restaurant, 1105 East Katella Avenue, for dancing 7 days a week from 7:00 P.M. to 2:00 A.M., continued from August 9, 1977. was submitted. Disapproval was recommended by the Chief of Police. 77-945 .City Hall, Anaheim, California - COUNCIL MINUTES - August 16~ 1977, 1:30 P.M. On motion by Councilwoman Kaywood, seconded by Councilman Roth, application for dancing 7 days a week from 7:00 P.M. to 2:00 A.M. at Mr. Stox Restaurant, 1105 East Katella Avenue, was approved as recommended in memorandum dated August 15, 1977 by the Police Department, advising that the applicant was now in compliance with City Code. MOTION CARRIED. 108: DINNER DANCING PLACE PERMIT: Application for The Loose Caboose, 801 East Kmtella Avenue, for dancing Tuesday through Saturday from 7:00 P.M. to 1:30 A.M. continued from August 9, 1977, was submitted. Disapproval was recommended by the Chief of Police. On motion by Councilwoman Kaywood, seconded by Councilman Thom, continuation of the subject Dinner Dancing Place Permit application for two weeks, as requested by the Applicant, was approved subject to a continuance fee. MOTION CARRIED. 150: AWARD OF CONTRACT - PROGRAM NO. 806-18~ PEARSON PARK SEATING IMPROVEMENT (PHASE II, ACCOUNT NO. 16-4309-806-18-0000): Councilwoman Kaywood offered Resolution No. 77R-569 for adoption awarding a contract to the only bidder in accordance with the recommendations of the City Engineer. Refer to Resolution Book. RESOLUTION NO. 77R-569: 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: PEARSON PARK SEATING IMPROVEMENT, PHASE II, IN THE CITY OF ANAHEIM, PROGRAM NO. 806-18, ACCOUNT. NO. 16-4309-806-18-0000. (Herk Edwards, $42,982.80) 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-569 duly passed and adopted. 150: AWARD OF CONTRACT - PROGRAM NO. 809-18~ BOYSEN PARK PROPERTY LINE BLOCK WALL: (Account No. 16-4309-809-18-0000) Councilwoman Kaywood offered Resolution No. 77R-570 for adoption awarding a contract to the lowest bidder in accordance with the recommendations of the City Engineer. Refer to Resolution Book. RESOLUTION NO. 77R-570: 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: BOYSEN PARK PROPERTY LINE WALL CONSTRUCTION, IN THE CITY OF ANAHEIM, PROGRAM NO. 809-18. (Granstrom Construction, Alternate Bid 2, $24,740.51) 77-946 C__ity Hall, Anaheim, California - COUNCIL MINUTES - August 16~ 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-570 duly passed and adopted. 160: PURCHASE OF EQUIPMENT - ONE CAPACITOR BANK - BID NO. 3266: On motion by Councilman Thom, seconded by Councilman Roth, the lowest responsible bid of General Electric Company was accepted and purchase authorized in the amount of $14,190.22, including tax, as recommended in memorandum dated August 9, 1977, from the Purchasing Agent. MOTION CARRIED. 176: ABANDONMENT NO. 76-9A - EXTENSION OF TIME: Submitted by Dr. and Mrs. E. Charles Hendricks requesting a six-month extension of time to abandon a portion of a dedicated public street commonly known as McDuff Street located south of Stonybrook Drive, east of Dale Avenue. On motion by Councilwoman Kaywood, seconded by Councilman Roth, a six-month exten- sion of time to Abandonment No. 76-9A, was approved, as recommended in memorandum dated August 8, 1977 from the City Engineer. MOTION CARRIED. 123: REVISION TO ECONOMY ENERGY AGREEMENT WITH NEVADA POWER COMPANY: Mr. Ed Alario, Assistant Utilities Director, referred to memorandum dated July 15, 1977 from Utilities Director Gordon Hoyt, and explained that the proposed revision to the subject agreement was necessary to correct its intent ~since the incorporated contract formula was not what was originally agreed upon. The revision would be advantageous to the City and several thousand potential dollars could be saved. In answer to Councilman Kott, Mr. Dick Butryn, Utilities Staff Supervisor, further explained that when the contract was originally negotiated, the formula established did not truly reflect the City's cost. Thus, it was re-evaluated and subsequently discovered by the Utilities Director that the original equation for decremental cost was understated and costing the City more than that which was stated. The discrepancy was pointed out to the Nevada Power Company in a letter dated December 30, 1976 from Mr. Hoyt along with work sheets showing the method of calculation proposed by the City. The new equations would reflect the City's best interest and result in a decrease in cost of approximately .1 percent. On motion by Councilwoman Kaywood, seconded by Councilman Seymour, a revision to the Economy Energy Agreement with the Nevada Power Company to correctly reflect the City's actual decremental value for kwh not purchased from California Edison Company, and authorization for the Utilities Director to sign the letter agreement was approved. MOTION CARRIED. ' RECESS: By general consent, the City Council recessed for ten minutes. (2:50 P.M.) AFTER RECESS: Mayor Thom called the meeting to order, all Council Members being present. (3:00 P.M.) 77-947 City Hall~ Anaheim, California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 1714: Application by Michael J. and Jeri J. Garan, to permit office and storage facilities on RM-2400 zoned property located at 1821 East Center Street with code waivers of: a) maximum fence height b) permitted uses c) minimum landscaped setback The City Planning Commission, pursuant to Resolution No. PC77-140 recommended that the subject property be declared exempt from the requirement to prepare an environmental impact report, pursuant to the provisions of the California Environmental Quality Act and, further, denied Conditional Use Permit No. 1714. Action of the Planning Commission was subsequently appealed by the Applicants 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. Michael Garan, 2310 East Romneya, first explained that he owned the office building adjacent to the west of the subject property as well as the property to the north, With the plan of developing the whole corner for office buildings. In the meantime, the intent was to utilize the property to its best advantage with the existing buildings contained thereon. The property was originally zoned CO and subsequently changed to RM-2400, but Mr. Garan considered the property to have a higher use than RM-2400. He then elaborated on the steps he took to clean up the property and considered the present use no better or worse than any- thing presently existing in the general locale. He then presented some photographs to the Council depicting existing conditions in the surrounding area. He then explained the difficulty he would have with the Code relative to conditions necessary to comply, contending it would require the demolition of buildings that were already there. If there were unsightly problems, he wanted the City to specifically tell him what these were and what he could do that would be agreeable to all parties in order to maintain a status quo until the corner could be developed. He was asking for 5 years maximum to do so with the requested conditional use permit. Councilman Roth asked Mr. Garan if he proposed a method of screening the unsightli- ness he saw in his personal inspection of the property. Mr. Garan explained that he asked the same question of the Planning Department and accordingly asked his tenants if the City had certain requirements, were they willing to comply so that they could make the choice as to whether or not they wanted to be located on the property. He further explained that Mr. Whitey Walp, the City's Zoning Enforcement Officer, issued a citation requesting that the storage yard be oiled. He reiterated that he would prefer to have the City recommend what they wanted done and he could subsequently pass these requirements along to his tenants as conditions of tenancy. 77-948 .~ity Hall~ Anaheim, California - COUNCIL MINUTES - August 16~,1977~ 1:30 P.M. Discussion followed between Mr. Garan and Councilwoman Kaywood relative to other six-foot high chain link fences in the area, and Mr. Garan's further contention that Coffman Street was not truly a residential one. The Mayor asked if anyone wished to be heard either in favor or in opposition. Mrs. Hemerling, 114 North Coffman, explained that she and her husband owned the lot just across from the subject property on the northeast corner and had lived in the area for 54 years. It was their understanding that the subject property was for office or dental buildings and they, likewise, were holding their property on this assumption. Otherwise, it could have been sold or rented many times. Mrs. Hemerling then elaborated on the following conditions which were unacceptable and contributed to the deterioration of their living environment: (1) The mess existing on the subject property was deplorable and it was offensive to open their front door because of the piles of junk in evidence; it was not only a junk yard, but a dump yard. (2) The dust created was excessive and if oiling was required, it would merely create black dust. (3) Employees parked on both sides of COffman Street thus preventing the street- sweeper from cleaning the street and two cars coming in opposite directions could not be accommodated. (4) In the evening, trucks and heavy equipment were parked in front of their residence. (5) The dogs they utilized barked day and night, causing loss of sleep. (6) They could not open their windows for fresh air because of the existing situation. Mr. James Collins, 115 Coffman Street, stated that he was opposed to a dirt lot with vicious dogs on it, not only because of the dust raised, but also because of the loud incessant barking, disturbing sleep and not conducive to peace of mind. Mrs. Sharon Braumbar, stated that they rented from Mr. Garan the back lot of the subject property facing Coffman Street and the dogs were placed there after a break-in of their business occurred and subsequently they decided to retain them to protect their equipment. They decided against a doberman and instead were using two dogs that had previously been their house pets. She further explained the situation surrounding the dogs and arrangements made with the Collins should they become a problem. She also explained that they cleaned the lot, no equip- ment was loaded or unloaded in the street but in the yard, and not more than five or six employee cars were parked on the public street at one time. She con- ceded, however, that dust was a problem. Relative to what they were willing to do to clean up the area as questioned by Councilman Seymour, Mrs. Braumbar explained that they were waiting for a decision by the Council or the Planning Commission; however, the weeds were removed, two sheds were constructed to store materials, they had sprayed for insects, and they were willing to install suitable landscaping. 77-949 .City Hall~ Anaheim~ California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. Councilman Seymour was of the opinion that although attempts were made to correct some of the problems, they were trying to run a business at the wrong location. Since the neighborhood was going through a transition, he was inclined to be reasonable and provide relief, but unless they were willing to make the situation a livable one, he suggested to Mr. Garan that he find another reasonable use. What was needed was asphalting of the lot, elimination of the dogs, installation of landscaping, and interlacing of the chain link fence with appropriate material for sight screening of the storage areas. Mrs. Braumbar said they would work with Mr. Garan to do whatever was specifically required. There being no further persons who wished to speak, the Mayor closed the public hearing. Councilman Seymour summarized by saying the situation was a difficult one to resolve because he had not heard specifically from Mrs. Braumbar as to what extent they would be willing to rectify the situation other than an indication of willingness to work things out. Thus, what he would do in order to permit storage, as was existing in the neighborhood presently, would be to attempt to clean up a bad situation in the four ways previously articulated. If they could comply with the foregoing conditions, he would be receptive to the existing use, not to exceed a five-year period. Councilwoman Kaywood questioned staff relative to when the first complaint was received regarding the matter. Miss Santalahti explained it was approximately six months prior that the first complaint was received. She also gave a brief historical background of the property, as well as other surrounding non-conforming outdoor storage uses. Councilwoman Kaywood stressed her concern over the fact that in the past six months, in spite of complaints, nothing was done to alleviate the situation and she was not convinced that anything would change at this point. The Planning Commission denied the request and the Zoning Enforcement Officer had to be called out. She was of the opinion that some other kind of compatible business would be more suitable at the location. She also would not favor granting a conditional use permit for a three to five-year duration. Discussion followed between Councilman Seymour and Mr. Garan at the conclusion of which it was ascertained that first, Mr. Garan filed for the CUP between March 17 and April 17, 1977 after the citation was initiated by Mr. Walp on the dry wall business to the front of the property, and the complaint was originated not as a result of the Braumbar's business, but the dry wall operation. Mrs. Braumbar clarified for Councilwoman Kaywood that their's was a landscape maintenance business. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Councilman Seymour, seconded by Councilman Roth, the City Council finds that this project will have no significant effect of the environment on the basis that if the property were developed 77-950 City Hall, Anaheim, California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. in accordance with the minimum RM-2400 site development standards and if adequate buffering were provided to protect the nearby residential uses there would be no significant individual or curmmulative adverse environmental impact and is, therefore, exempt from the requirement to prepare an EIR. Councilwoman Kaywood voted "No". MOTION CARRIED. Councilman Seymour offered Resolution No. 77R-571 for adoption granting Conditional Use Permit No. 1714 for a period of three years only, subject to the following Interdepartmental conditions, as revised, to be complied with within 60 days and reversing certain findings of the Planning Commission. 1. That the owner(s) of subject property shall deed to the City of Anaheim a strip of land 53 feet in width from the centerline of the street along Center Street and a strip of land 25 feet in width from the centerline of the street along Coffman Street for street widening purposes; and that encroachment permits shall be obtained, if necessary, for any existing structure which may encroach into the ultimate right- of way. 2. That the owner(s) of subject property shall pay to the City of Anaheim the sum of $2.00 per front foot along Center Street and Coffman Street for street lighting purposes. 3. That sidewalks shall be installed along Center Street and Coffman Street as required by the City Engineer and in accordance with standard plans and specifications on file in the Office of the City Engineer. 4. That subject property shall be served by underground utilities. 5. That drainage of subject property shall be disposed of in a manner satisfactory to the City Engineer. 6. That the existing structure shall be brought up to the minimum standards of the City of Anaheim, including the Uniform Building, Plumbing, Electrical, Mechanical and Fire Codes as adopted by the City of Anaheim. 7. That subject property shall be developed substantially in accordance with plans and specifications on file with the City of Anaheim marked Exhibit No. 1. 8. That all outdoor storage areas shall be effectively view-screened, as stipulated to by the petitioner, from adjoining properties and streets by the following: (a) The existing 6-foot high chain link fence shall be entirely interwoven with redwood or cedar slats; and (b) A minimun 3-foot wide landscaped buffer shall be located inside and adjoining said fence, said buffer to consist of plant materials approved by the Planning Department as to species, size, and spacing; and, further, that said planting shall be permanently maintained in a neat and orderly manner. 9. That all outdoor storage areas shall be paved, as stipulated to by the petitioner. 10. That there shall be no guard dogs or other guard animals on the subject property. 77-951 ~ity Hall, Anaheim, California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. ll. That the subject use is granted for a period of three (3) years, provided however, that upon written request by the petitioner, an additional period of time may be approved by the City Council. 12. That condition Nos. 1, 2, 8 and 9, above-mentioned, shall be complied with within a period of sixty (60) days from date hereof, or such further time as the C~ty Council may grant. ]3. That Condition Nos. 3, 4, 5, 6 and 7, above-mentioned, shall be complied with prior to final building and zoning inspections. Refer to Resolution Book. RESOLUTION NO. 77R-571: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 1714. Roll Call Vote: AYES: COUNCIL MEMBERS: Seymour, Kott, Roth and Thom NOES: COUNCIL MEMBERS: Kaywood ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 77R-571 duly passed and adopted. Councilwoman Kaywood again emphasized that the Planning Commission had asked for many of the foregoing conditions and indicated the petitioner showed no desire to conform to site development standards or to visually buffer the use and she reiterated she was not confident it was going to happen now. Mayor Thom left the Council Chamber. (3:51 P.M.) 179: SITE PLAN FOR PROPOSED SAVANNA STREET APARTMENTS: On motion by Councilman Kott, seconded by Councilman Roth, the City Council concurred with the Anaheim City Planning Commission recommendation that the subject project be denied on the basis that it does not comply with Anaheim's Zoning Standards, as recommended in staff report to the Planning Commission dated August 15, 1977. Councilman Thom was temporarily absent. MOTION CARRIED. CONSENT CALENDAR ITEMS: On motion by Councilman Roth, seconded by Councilwoman Kaywood, 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 Lynne Rezac and Farmers Insurance Group for property damages purportedly sustained as a result of street disrepair (West and Harbor) on or about April 29, 1977. b. Claim submitted by Patricia Ann McConnell for personal damages purportedly sustained as a result of actions of the Anaheim Police on or about April 30, 1977. 77-952 ~ity Hall~ Anaheim, California - COUNCIL MINUTES - August 16, 1977~ 1:30 P.M. c. Claim submitted by Evelyn McVicar for personal injuries purportedly sustained as a result of a trip and fall at 2281 West Ball Road on or about June 16, 1977. d. Claim submitted by Bobbi L. Todd for food spoilage purportedly sustained as a result of electricity shut-off at 1827 Glencrest on or about August 1, 1977. 2. CORRESPONDENCE: The following correspondence was ordered received and filed: a. 114: City of Seal Beach Resolution No. 2681 requesting the Orange. County Board of Supervisors to provide sufficient funds in the 1977-78 Budget for purchase of badly needed rolling equipment at solid waste - trash - transfer stations and county land-fills. b. 105: Anaheim Housing Commission - Minutes of July 13, 1977. c. 175: Monthly report, June 1977 - Water Division. d. 105: Community Redevelopment Commission Resolution Nos. CRC77-3 and CRC77-4 establishing the time and place for the holding of regular meetings. Councilman Thom was temporarily absent. MOTION CARRIED. CONSENT CALENDAR ITEMS: Councilman Seymour offered Resolution Nos. 77R-572 and 77R-573 for adoption in accordance with the reports, recommendations, and certi- fications furnished each Council Member and as listed on the Consent Calendar Agenda. Refer to Resolution Book. 158: RESOLUTION NO. 77R-572: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS AND ORDERING THEIR RECORDATION. (Walter Holt Shears, et ux.; G. L. Lewis Company; Roshel; Vincent R. Clement, et ux.; Michael F. De Meo, et ux.; Frederick G. Yungkans, et ux.; Richard A. Hermann II, et ux.) 169: RESOLUTION NO. 77R-573: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINALLY ACCEPTING THE COMPLETION AND THE FURNISHING OF ALL PLANT, LABOR, SERVICES, MATERIALS AND EQUIPMENT AND ALL UTILITIES AND TRANSPORTATION INCLUDING POWER, FUEL AND WATER, AND THE PERFORMANCE OF ALL WORK NECESSARY TO CONSTRUCT AND COMPLETE THE FOLLOWING PUBLIC IMPROVEMENT, TO WIT: KATELLA AVENUE STREET IMPROVE- MENT, WALNUT STREET TO 1322' W/0 BROOKHURST STREET, IN THE CITY OF ANAHEIM, ACCOUNT NO. 13-4309-739-16-0786. (Amah Brothers, Inc.) Roll Call Vote: AYES: NOES: TEMPORARILY ABSENT: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Kaywood. Seymour. Roth. and Kott None Thom None Mayor Pro Tem Kott declared Resolution Nos. 77R-572 and 77R-573 duly passed and adopted. 77-953 ~ity Hall, Anaheim~ California - COUNCIL MINUTES - August 16, 1977~ 1:30 P.M. Mayor Thom returned to the Council Chamber. (3:53 P.M.) ORDINANCE NO. 3754: Councilman Kott offered Ordinance No. 3754 for adoption. Refer to Ordinance Book. ORDINANCE NO. 3754: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (69-70-39(5), ML) 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. 3754 duly passed and adopted. ORDINANCE NOS. 3755 THROUGH 3758: Councilman Seymour offered Ordinance Nos. 3755 through 3758, both inclusive, for first reading. ORDINANCE NO. 3755: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (67-68-100(2), CL) ORDINANCE NO. 3756: AN ORDINANCE OF THE CITY OF ANAHEIMAMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (76-77-51, RM, 1200 on Portion A and CL on Portion B) 142 AND 170: ORDINANCE NO. 3757: AN ORDINANCE OF THE CITY OF ANAHEIM REPEALING SECTION 17.08.180 OF TITLE 17, CHAPTER 17.08 OF THE ANAHEIM MUNICIPAL CODE AND ADDING NEW SECTION 17.08.180 TO TITLE 17, CHAPTER 17.08 RELATING TO SUBDIVISIONS. (Council approval of final tract maps) ORDINANCE NO. 3758: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. (75-76-28, RS-HS-10,000, Tract No. 9268) 115: AVENUE OF THE FLAGS PROPOSAL: Councilman Seymour explained that at the time the Avenue of the Flags concept was discussed, it was decided a committee should be formed to study the matter and subsequently recommendations made to the Council. He was the Council Member assigned to work with that committee. He referred to Mr. Bill Erickson's letter dated August 11, 1977 now seeking Council direction relative to two alternatives. Many meetings had been held, but to no avail, result- ing in understandable frustration, thus the request for pointed direction by the Council at this time. Mr. Bill Erickson, 301 East North Street, explained the make-up of the committee, the dates on which they had met, some of the actions taken to bring the project to fruition, the specifications for the flag poles and the costs attendant thereto. They considered the plan to be unique, exciting, aesthetically pleasing and a boon to tourist oriented Anaheim. The committee had met with Anaheim Beautiful on the matter and a further meeting was scheduled with the Chamber of Commerce the next morning, August 17, 1977. He stressed that time was of the essence and commented that he was also willing to make the project a civic venture wherein financial support would be solicited. 77-954 ~ity Hall, Anaheim, California - COUNCIL MINUTES - August 16, 1977~ 1:30 P.M. Councilman Seymour recommended that, considering the frustration involved, relative to the differences of opinion between various departments, it would be quite some time before the committee could bring all opinions into accord. Therefore, he suggested that Mr. Erickson approach the Council for their consideration of the two alternates proposed in the August 11, 1977 letter. If the Council was in favor of either one, staff could then be directed accordingly or if there was no interest in the project, they should so state. Councilman Seymour thereupon moved that staff be directed to report back to the Council with an analysis of the two proposals presented for subsequent, decision. Councilman Kott seconded the motion. MOTION CARRIED. 132: COMPLAINT - ACCUMULATED TRASH AND DEBRIS IN PUBLIC ALLEY: Councilman Kott requested the City.Manager to investigate a complaint by Mrs. Gray on West Glen Street wherein she claimed that in four and one-half years the alley at the rear of her residence had been cleaned only twice resulting in trash conditions that were deplorable. 123: MAN IN WASHINGTON PROGRAM: Councilman Kott noted that the Man in Washington was voted a pay increase but subsequently resigned to take on another position. He inquired, in the new search for a consortium leader, how the salary situation was approached in terms of amount and specifically if the new person would be offered a lower salary rate or start at the existing level. City Manager Talley explained that candidates were normally provided to the consortium by the National League of Cities at which time they also quoted salary. The present Budget anticipated a 5 percent increase if the National League of Cities awarded such an increase. The City Managers of the Consortium Cities would be meeting on August 22, 1977 to discuss the entire matter and to bring back recommendations to all of the City Councils. If the same situation occurred as last time, they would ask the National League of Cities to submit certain individuals and the Cities or Mayors would decide on the selection process and screening down to a limited number of candidates and fly those individuals out for review. At that time, salary would be discussed and everyone would be informed. In his opinion, the new person would be starting at a lower rate unless an outstanding individual was able to be selected. He also noted for Councilman Kott that the new salary rate had not been awarded when the previous Man in Washington accepted a new position, but it was included in the Budget in case a salary increase was to be granted. 105: APPOINTMENT TO HACMAC COMMITTEE: Councilman Roth first thanked the media for the excellent coverage provided relative to the vacancy on the HACMAC Committee due to the resignation of Mr. Ron Allen. As a result, there was good response and from those responding, he selected as his nominee Mr. William G. Dumper, a resident of Anaheim Hills for two years and of Anaheim since 1965. On motion by Councilman Roth, seconded by Councilman Seymour, Mr. William G. Dumper, 6188 Paseo Rio Verde, was appointed to the HACMAC Committee to fill the vacancy due to the resignation of Mr. Ron Allen. MOTION CARRIED. RECESS - EXECUTIVE SESSION: By general consent the City Council recessed into Executive Session. (4:06 P.M.) AFTER RECESS: Mayor Thom called the meeting to order, all Council Members being present. (4:22 P.M.) 77-955 C_ity Hall, Anaheim~ California - COUNCIL MINUTES - August 16~ 1977~ 1:30 P.M. 108: CAMELOT - ANAHEIM CARD PARLOR: On motion by Councilman Kott, seconded by Councilman Roth, the recommendation by the City Attorney that the Council issue an Order to Show Cause why a permit issued to Mr. Joseph London, Camelot-Anaheim should not be revoked; said hearing to be held on Tuesday, September 13, 1977, 3:00 P.M., in the Council Chamber, was approved. MOTION CARRIED. ADJOURNMENT: Councilman Roth moved to adjourn. Councilman Kott seconded the motion. MOTION CARRIED. Adjourned: 4:24 P.M. LINDA D. ROBERTS, CITY CLERK