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1997/09/23ANAHEIM, CALIFORNIA- CITY COUNCIL MINUTES SEPTEMBER 23, 1997 The City Council of the City of Anaheim met in regular session. PRESENT: PRESENT: ABSENT: PRESENT: MAYOR: Tom Daly COUNCIL MEMBERS: Shirley McCracken, Tom Tait, Bob Zemel, Lou Lopez COUNCIL MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANT CITY CLERK: Ann M. Sauvageau CODE ENFORCEMENT MANAGER: John Poole COMMUTER SERVICES TRANSPORTATION PROGRAMS PLANNER: Diana Kotler FIRE CHIEF: Jeff Bowman FINANCE DIRECTOR: Bill Sweeney OUBLIC AFFAIRS: Kristine Thalman PLANNING DIRECTOR: Joel Fick POLICE INVESTIGATOR: Tom Engle PURCHASING AGENT: Diane Hughart PUBLIC WORKS DIRECTOR/CITY ENGINEER: Gary Johnson SENIOR PLANNER: Cheryl Flores TRAFFIC & TRANSPORTATION MANAGER: John Lower A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 3:03 p.m. on September 19, 1997 at the City Hall Kiosk, containing all items as shown herein. Mayor Daly called the workshop portion of the meeting of September 23, 1997 to order and welcomed those in attendance. City Manager, James Ruth. He introduced Ms. Terry Maderas, Project Manager, Santa Ana River Flood Protection Agency. 146: STATUS REPORT AND FUNDING STATUS - PRADO DAM UPGRADE AND SANTA ANA RIVER MAINSTEM PROJECT: Terry Maderas, Project Manager, Santa Ana River Flood Protection Agency. This is a 1.3 billion dollar project for flood control in Orange County. She then showed a video (November, 1996) covering the project, the portions which have been completed, work in progress, etc. It is the largest project of its kind under way in the U.S. which began in 1990. There are seven features of the project, but today's presentation will focus on the status of the three main features -- the Seven Oaks Dam (550' high - 3,000 ft. long earth and rockfill dam) to be constructed within the San Bernardino National Forest (at present 50% complete), the Prado Dam (improvements include raising the existing embankment approximately 28 ft. to an elevation of 594.4 ft.), and the lower Santa Ana River feature (improvements to 23 miles of existing channel from Weir Canyon Road to the Pacific Ocean). Ms. Maderas also showed pictures to illustrate the progress in the past couple of months. She also submitted two brochures to the Council, one entitled, the Santa Ana River Mainstem Project (which also included pictures) explaining the existing flood threat, briefed the seven features of the project, the environmental and recreational value of the project, and depicted the funding "pie chart". The second brochure entitled, Santa Ana River Mainstem Project - Status Report as of July, 1997 - Orange County Flood Control District, explained the funding aspects in detail. Ms. Maderas' presentation further briefed the facts contained in the documentation. ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 The extensive presentation was followed by questions from Council Members; Mayor Daly also noted that Don Martinsen of the Flood Control District has been very helpful in answering questions in the past. Further, Council Member McCracken represents Anaheim on the Joint Powers Authority. Ms. Maderas recommended if the Council had the opportunity that they visit the Seven Oaks Dam site. It is the 12th highest in the country and about 70th highest in the world. Tours are given on weekends and many people have been taking their families. After additional discussion and questioning, the workshop was concluded. Mayor Daly thanked Ms. Maderes for the informative presentation. REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed Session noting first that there were no additions to Closed Session items. PUBLIC COMMENTS - CLOSED SESSION ITEMS: There were no public comments relative to Closed Session items. The following items are to be considered at the Closed Session. 1. CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) - Existing Litigation: Name of case: Delmonico, et al. v. City of Anaheim, et al. (and 18 related cases) Orange County Superior Court Case No. 70-80-71. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8: Property: 806 North Brookhurst Street Negotiating parties: Anaheim Redevelopment Agency and Home Depot, Mr. Yong Ung Kim, Brookhurst Motor, Inc. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (c) of Section 54956.9: __ cases. one potential PUBLIC EMPLOYMENT PERFORMANCE EVALUATION: (1996-97 Annual Performance Review) City Manager, City Attorney, City Clerk, and City Treasurer. CONFERENCE WITH LABOR NEGOTIATOR Agency negotiator: Dave Hill Employee organization: Anaheim Fire Association; Teamsters Local 192; IBEW Local 47; and AMEA. RECESS CLOSED SESSION: Mayor Daly moved to recess into Closed Session. Mayor Pro Tem Lopez seconded the motion. MOTION CARRIED. ( 3:40 p.m.) ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 AFTER RECESS: The Mayor called the meeting to order, all Council Members being present, and welcomed those in attendance to the Council meeting. (5:05 p.m.) INVOCATION: A Moment of Silence was observed in lieu of an invocation. FLAG SALUTE: Council Member Tom Tait led the assembly in the Pledge of Allegiance to the Flag. 119: PRESENTATION - ANAHEIM UNION HIGH SCHOOL DISTRICT AND ANAHEIM POLICE DEPARTMENT - SCHOOL SAFETY: Jan Billings, Superintendent, Anaheim Union High School District. She is speaking on behalf of the Board, parents, students, faculty and staff of AUHSD. They probably enjoy one of the best relationships and partnerships with the Police Department of any school district in the nation. This kind of relationship means a great deal to the quality of life in the City. She then introduced Bob Montegna who will give some introductory remarks. Mr. Bob Montegna first commented on and then introduced Mike Aquino, Police Gang Investigator and Rick Krey, Anti-Gang and School Safety Specialist, two men who are so vital to the program. Both Mike Aquino and Rick Krey elaborated on the specifics of the program and the positive effects and outcome in their partnership with the School District. Mayor Daly thanked Mrs. Billings and the Board of Trustees for the presentation and sharing the progress made relative to this very positive community program. 119: DECLARATION OF RECOGNITION - KODIAK-RIVERDALE-SANTA ANA CANYON-TUSTIN NEIGHBORHOOD ASSOCIATION: Officer Bill Moss explained how the association has made significant progress in reducing crime in their neighborhood. The people present today represent the core group and they have done walks with him in the neighborhood. Mr. Earl Moriarty explained in detail how the program works. One of the things they try to do is to conduct meetings and raise neighborhood awareness and educate people. He first acknowledged some special people who have contributed to the success of the program and also acknowledged City staff who have assisted in the program and especially Chief Gaston for encouraging the need for community policing. Mayor Daly and the Council assisted in presenting Declarations to the officers of the association including Officer Moss, the Community Policing Officer of the Year: John Clarke, Masura Fujiwara, Diane Mora, Mike Mora, Earl Moriarty, Denni Rackley, John Rackley. ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 RECOGNITIONS AUTHORIZED BY COUNCIL THIS DATE TO BE MAILED OR PRESENTED AT ANOTHER TIME: PROCLAMATION recognizing October 6 - 10, 1997, as California Rideshare Week in Anaheim. PROCLAMATION recognizing October 5- 12, 1997, as Operation Bank/Walk across America. DECLARATION recognizing Santiago Canyon College. FINANCIAL DEMANDS AGAINST THE CITY in the amount of $2,991,485.82 for the period ending September 19, 1997, in accordance with the 1997-98 Budget, were approved. Mayor Daly recessed the City Council meeting until after the Redevelopment Agency meeting. (5:32 p.m.) Mayor Daly reconvened the City Council Meeting ( 5:40 p.m.) ADDITIONS TO THE AGENDA: There were no additions to agenda items. ITEMS OF PUBLIC INTEREST: Richard Chavez, President, Anaheim Fire Association (AFA), representing Anaheim Firefighters. Their members, the Firefighters, Paramedics, and Hazardous Material Specialists have gone 438 days without a contract. They have been meeting in good faith for over 1 1/2 years. They were presented with two last, best and final offers from the City -- one was a 2% increase in wages over 2 1/2 years -- the second offer reflected an additional 2% increase in wages over a 3 1/2 year period. The offers were significantly less than the previous offer they received in December of 1996. It was demoralizing. The AFA Board of Directors took what they thought was the least offensive of the two offers to their membership and it was overwhelmingly rejected by greater than a 90% margin. Their concerns are: (1) They have not seen an offer from the City yet that reflects a wage increase for FY96-97 or 97-98. (2) the AFA is one of the finest and most cost effective Fire Departments in the country but their wages have eroded to below median in the County. The offers do not even come close to keeping up with the cost of living. (3) Entry level pay for Firefighters starting at $10.90/hr. is the lowest in the County and $300/month below median in the County. (4) Unacceptable is the inability of the City to resolve contracts for its dedicated employees. They are coming here again asking for leadership from the Council to resolve the contract disputes -- not only for their members, but also for the AMEA and the Electrical workers as well (IBEW). They are going to continue to take their message of unfairness to the public and they are going to support the other City labor groups in their efforts. ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Mayor Daly, speaking to the City Manager and City Attorney, he asked for clarification. Mr. Chavez cited some of the specifics of the negotiation. He asked to what extent is it customary for specific dollar figures to remain the subject of negotiations that are not disclosed to the public and to what extent now that some of those numbers have been made public has the City's offer been compromised. City Manager Ruth. This is not customary. Staff and the City will continue to negotiate in good faith within the parameters allowed by the City Council. It has not been their practice in the past to make that information public. Mayor Daly. His point and for the record, Mr. Chavez has introduced some of the numbers that have been discussed in negotiations which begs the question, who fills in the remainder of the information. Will they expect to hear more of that from Mr. Chavez in terms of the complete offer that has been put on the table by the City or is it an opening salvo. He (Chavez) explained some of the package and then the burden is on the City government to either abide by the confidentiality of the negotiations or release the rest of the numbers. He asked the City Attorney and City Manager to advise the Council accordingly either this evening or in the future. They have been in negotiations for many months but they have not heard the Council come to this setting and describe what those numbers are. If that is what is being suggested, he is asking for advice. City Attorney White. Rather than getting into that discussion this evening, he suggested they bring that information back to the Council as to what options may be permissible or available to the Council with regard to disseminating that type of information and give them the options they have and make recommendations in that regard. Mayor Daly. He wants it on the record for anyone who is watching and listening that the numbers presented at the podium a few minutes ago are by no means the complete story or the complete numbers. PUBLIC COMMENTS - AGENDA ITEMS: Public input was received on Item A8 and A25 (see discussion under those items). MOTION: Mayor Daly moved to waive reading in full of all ordinances and resolutions to be acted upon for the Council meeting of September 23, 1997. Council Member Zemel seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR ITEM A1 - A23: On motion by Mayor Daly, seconded by Council Member Zemel, the following items were approved in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar; Mayor Daly offered Resolution Nos. 97R-179 and 97R-180, for adoption. Mayor Daly offered Ordinance No. 5615 for adoption. Refer to Resolution/Ordinance Book. Al. 118: Rejecting and denying certain claims filed against the City. Referred to Risk Management. The following claims were filed against the City and actions taken as recommended: a. Claim submitted by AllState Insurance Company, Judy Ann Vaughan, Insured for property damage sustained purportedly due to actions of the City on or about October 21, 1996. ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 b. Claim submitted by Nye F. Bouslog, Joan C. Bouslog (parents), Nye F. Bouslog Administrator of the Estate of Lynn M. Douslog aka Lynn Bouslog aka Lyn Marie Bouslog for bodily injury sustained purportedly due to actions of the City on or about January 4, 1997. c. Claim submitted by Craig Christopher Crockett for property damage sustained purportedly due to actions of the City on or about June 2, 1997. d. Claim submitted by Jacqueline Carrillo for property damage sustained purportedly due to actions of the City on or about June 11, 1997. e. Claim submitted by Steven A. Speare for property damage sustained purportedly due to actions of the City on or about August 5, 1997. f. Claim submitted by Jose Manuel Flores Martinez c/o Rance D. Welch, Esq. for bodily injury sustained purportedly due to actions of the City on or about April 6, 1997. g. Claim submitted by Roy & Patricia Burns c/o Keith P. More, Esq. for property damage sustained purportedly due to actions of the City on or about February 20, 1997. A2. A3. A4. A5. A6. 112: Receiving and filing the Supplemental Law Enforcement Services Funds (SLESF) Report for the month of August, 1997, as submitted by the City Treasurer. 117: Receiving and filing the Investment Portfolio Report Executive Summary for the month of August, 1997, as submitted by the City Treasurer. 105: Receiving and filing minutes of the Anaheim Public Library Board meeting held August 6, 1997. 140: Receiving and filing the Anaheim Public Library Monthly Statistical Report for the month of July, 1997. 105: Receiving and filing minutes of the Public Utilities Board meetings held August 7, 1997, and August 26, 1997. 128: Receiving and filing the Monthly Financial Analysis presented by the Finance Director, for one month ended July 31, 1997. 164: Awarding a contract to the lowest responsible bidder, Beecher Construction Co., in the amount of $122,320 for Anaheim Way Sewer Improvements from Claudina Way to Anaheim Boulevard within the I-5 Freeway Widening (Sewer A9); and in the event said Iow bidder fails to comply with the terms of the award, awarding the contract to the second Iow bidder, as well as waiving any irregularities in the bids of both the Iow and second Iow bidders. 151: Authorizing the Public Works Director to issue a termination notice for Encroachment License No. 75-3E (located at 100 - 220 East Katella Avenue) as requested by the Department of Transportation, District 12, Right-of-Way, in connection with the Interstate 5 widening project. 158: Approving the Acquisition Agreement of real property for 416 West Katella Avenue (R/W 5180-56); approving the Right-of-Entry Agreement; authorizing the Mayor and City Clerk to execute said Agreements; and authorizing the acquisition payment of $7,250 to Ranjit Govan and Jagriti Govan in connection with the Katella Avenue Smart Street Improvement project. 158: RESOLUTION NO. 97R-179: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS CONVEYING CERTAIN REAL PROPERTIES, OR INTERESTS THEREIN TO THE CITY. (R/W 5180-56.) ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 A7. 123: Approving an Agreement with Southern California Edison Company for replacement of overhead facilities with underground electrical facilities I-5 Freeway Katella Avenue, Manchester Avenue and CEP-"O" Line Gene Autry Way; and authorizing the Mayor and City Clerk to execute said agreement. A8. 169: Accepting $100,000 from the Orange County Transportation Authority Combined Transportation Funding program to implement a network of 23 Electric Vehicle public access charging stations. (Continued from the meeting of September 16, 1997, Item AS.) (See minutes of September 16, 1997 where there was extensive discussion and input both at the 3:00 P.M. workshop and at the 5:00 P.M. portion of the Council meeting.) The following people spoke in opposition to approval of accepting $100,000 from the Orange County Transportation Authority (OCTA) combined transportation funding program to implement the subject electric vehicle (EV) public access charging stations. Several spoke on the technical aspects of the EV and why they feel either through their expertise or documentation presently available, that battery- powered electric cars have proven to be totally unacceptable to the average person, that it is inappropriate to use tax dollars for this purpose, that there are no environmental benefits, etc. Also submitted were various documents either supporting or opposing electric vehicles. In Opposition: Wayne King, Orange; Bill Ward, Costa Mesa; Jeff Kirsch, 2661 W. Palais, Anaheim; Anita Mangels, Californians Against Hidden Taxes; Steve White, 856 N. Clementine, Anaheim. The following people spoke in favor of approval of accepting the $100,000 to initiate the program. Reasons were given why electric vehicles are an important transportation alternative because of the real and significant emission benefits contributing to a significant increase in air quality, emissions from electric vehicles compared to the lowest emissions of gasoline vehicles are 95% lower, Anaheim is the best testing ground for the program, etc. In Favor: Miriam Kaywood (former Council Member), Anaheim; Jack Kitowski, representative of the State Air Resources Board; Ray Gorski, represents overall program sponsors for EV demonstration; John Cox, 22 Toronto Drive, Newport; Greg Hansen, 496 Barkwood, Irvine; Gardner Harris, 11791 Loara, Garden Grove. Council Member Zemel. There seems to be two points of logic used by the pro side -- one is the air quality issue and the other is that they are going to give the money to somebody else if Anaheim does not take it. He is having a difficult time making a link about what the voters were told on Measure M and this proposed public-private partnership. Measure M was about reducing vehicle trips. He does not believe it was a clear concept in Measure M that allowed for projects like this and he explained why. He sees it as a loophole that someone decided to drive electric vehicles through. To him, it is not about emissions, but whether or not it meets the criteria under Measure M. The bigger issue is whether they accept the money that is being offered just because it is available. The people who are going to receive the financial benefit should be the ones paying for the capital improvements. The larger issue to him is that the OCTA Board is not directly elected. He will not be supporting this proposal, not because he does not believe in EV's, but because he believes that the user should pay for the capital improvements. He feels there should be accountability directly to the voters. Council Member McCracken. This money was applied for under a grant process and a resolution was adopted by the Council a year ago in July, 1996. She was not on the Council at the time. It was a unanimous decision by the Council (Tait, Zemel, Feldhaus, Lopez, Daly) to do just this -- to send staff out with a proposed program and to find funding and they have done all that. Now that they have received the funding and a group of cities and entities are willing to work together with this funding, the City is saying they are not going to proceed. The whole process came from a Council that approved a resolution to go forward in 1996. ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Diana Kotler, Transportation Programs Planner. She confirmed that was correct. Prior to submitting the application to the funding agency, staff did submit a resolution requesting that the Council proceed with this proposal which was approved. Council Member Lopez. He had an opportunity to drive one of the EV's and it is a great vehicle and has great acceleration. He has some concerns but the bottom line is that a lot of citizens have purchased EV's. He believes it is an alternative to cut down on pollution. He previously voted for the $100,000 grant. Since it is important that they find ways to cut down on air pollution, he is going to support the recommendation. Council Member Tait asked for clarification if this will involve any Anaheim City money or General Fund money; Ms. Kotler stated there are no contributions from General Fund dollars. She confirmed that it is just accepting money from OCTA. Mayor Daly. Having participated in the vote over a year ago which authorized staff to seek the grant and coordinate it, and having read all the materials and listened to both sides, he feels this is a legitimate and worthwhile program with potential long-run benefits. He is prepared to support the recommended action. He also thanked staff for the hard work in coordinating all of the various cities and private sector companies who are involved. It is great that Anaheim is playing the coordinating role. MOTION. Mayor Daly moved to accept $100,000 from the Orange County Transportation Authority Combined Transportation Funding program to implement a network of 23 Electric Vehicle public access charging stations. Council Member McCracken seconded the motion. Council Member Zemel voted No. MOTION CARRIED. A9. Al0. All. A12. A13. A14. A15. A16. 106: Approving the adjustment to the Public Works Department's fiscal year 1997-98 Capital Improvement Budget, in the amount of $73,008. 160: Accepting the Iow bid of General Switchgear, Inc., in the amount of $162,779 for the upgrade of the 15KV Switchgear #2B at Yorba Substation, in accordance with Bid #5693. 160: Accepting the Iow bid of Safeway Sign Company, in an amount not to exceed $171,575 for City Street Signs, for a period of one year, beginning September 1997, in accordance with Bid #5698. 106: Amending the FY 1996/97 Budget by increasing Expenditure Appropriations in Account Number 101-309-2251-9319 by $1,178,774 for the replacement and upgrade of the countywide radio communications system (800 MHZ Communications). 105: Receive and file the minutes of the Budget Advisory Commission meeting held August 20, 1997. 106: Approving $11,752,427 of expenditure appropriations and $4,393,073 of revenue appropriations from the prior fiscal year. 113: RESOLUTION NO. 97R-180: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN TWO YEARS OLD. (CITY CLERK'S OFFICE) 107: ORDINANCE NO. 5615: (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM ADDING CHAPTER 7.50 TO TITLE 7 OF THE ANAHEIM MUNICIPAL CODE RELATING TO LOST, STOLEN OR ABANDONED SHOPPING CARTS. (Introduced at the meeting of September 16, 1997, Item A16.) ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 A17. 123: Approving an Agreement to designate Robert F. Driver Associates as the City's Broker of Record, to provide various professional insurance brokerage services to the City for the five-year period July 1, 1997, to June 30, 2002, at an annual fee of $57,500, with an option for additional property engineering services in the amount of $6,400 (not to exceed total of $63,900). A18. 177: Approving an application for $3 million under the Homeownership Zones Program, and authorizing the Executive Director of Community Development to execute the necessary documents. A19. 129: TO consider authorizing the City Manager/Fire Chief to initiate a Request for Proposal for emergency transport services. Submitted was report dated September 15, 1997 from the Fire Chief, Jeff Bowman recommending the initiation of an RFP for emergency transport services. Council Member Lopez. He is still getting a lot of input on this item; Council Member Zemel. He has comments to make and he was going to suggest that he make a motion at the appropriate time. Council Member Zemel. He recalls two years ago at the Council's annual meeting with the City Manager where the subject came up of the contract going out for ambulance service and potentially having the Fire Department handle the ambulance program. He thought they were going to wait on this until the Firefighter's contract was settled. City Manager Ruth. He does not recall that being a consideration. Just to reassure the Council, the Fire Department will not be bidding on the ambulance services, they do not have a contract with the present provider and it has been 20 years. They are looking at levels of service and how to improve it, not a revenue producer. They are recommending putting it out to competitive bidding and letting everybody bid. It could be that the same provider might be the successful bidder. Council Member Zemel. He has questions relative to the proposal and would like to discuss them with the City Manager. He is going to request a three-week continuance; City Clerk Sohl reminded the Council that there will be no meeting on October 14, 1997 due to the California League of Cities Meeting in San Francisco. MOTION. Council Member Zemel moved to continue this item to October 21, 1997; Mayor Daly. He can support the motion for continuance if it is for a shorter period. The request is straight forward. He can support a two-week continuance as a courtesy. After a discussion on the appropriateness and timing of the continuance, Council Member Zemel reiterated that his request is for a continuance to October 21, 1997 since he is not going to be present in two weeks at the October 7, 1997 meeting. Council Member Tait seconded the motion. Before a vote was taken, Mayor Daly stated he is opposed to a continuance to October 21, 1997. He believes the staff recommendation makes sense and he wants to move forward before October 21. A vote was then taken on the foregoing motion. Mayor Daly voted No. MOTION CARRIED. A20. 106: Amending the Stadium/Convention Center budget by: (1) increasing expenditure appropriations for the FY 1996/97 budget in account number 570-515-5758-7825 by $12,864,580 and (2) decreasing expenditure appropriations for the FY 1997/98 budget in account number 570-515-5758-7825 by $12,864,580. ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 A21. 175: Approving the third amended Plan of Reorganization for The Clothestime, Inc., and ratifying the Public Utilities General Manager's action on behalf of the City in executing the ballot to accept the plan for The Clothestime, Inc., scheduled to be confirmed on September 10, 1997 (in connection with the filing of a Chapter 11 Bankruptcy). A22. 123: Approving an Agreement with Parsons Engineering Science, Inc., in an amount not to exceed $280,523 to provide engineering services for the Anaheim Resort Area Well No. 55 Project; and authorizing the Public Utilities General Manager to execute said Agreement and any other related documents necessary to complete said Project. A23. 123: Accepting the bid, and authorizing the execution of an Agreement with All City Management Services, Inc., to provide school crossing guard services, in an amount not to exceed $500,000 for one year with options to extend for two one-year optional renewals commencing October 1, 1997; and authorizing the Chief of Police to exercise renewal options, in accordance with Bid #5697. (Continued from the meeting of September 16, 1997, Item A9.) City Attorney White. The proposed contractor on this item is in the process of renewing its private patrol license with the State. Such a license is required in conjunction with the contract which is scheduled to take effect prior to the next meeting. If the Council moves forward, he recommends that they incorporate that the contract award is contingent upon the contractor obtaining all necessary State licenses prior to commencement of their services. Diane Hughart, Purchasing Agent. The required documentation from the State was received late this afternoon; City Attorney White thereupon withdrew his request since it is no longer necessary to incorporate the recommended language. Roll Call Vote on Resolution No. 97R-179 and 97R-180 for adoption: AYES: NOES: ABSENT: MAYOR/COUNCIL MEMBERS: McCracken, Tait, Zemel, Lopez, Daly MAYOR/COUNCIL MEMBERS: None MAYOR/COUNCIL MEMBERS: None The Mayor declared Resolution No. 97R-179 and 97R-180 duly passed and adopted. Roll Call Vote on Ordinance No. 5615 for adoption: AYES: MAYOR/COUNCIL MEMBERS: McCracken, Tait, Zemel, Lopez, Daly NOES: MAYOR/COUNCIL MEMBERS: None ABSENT: MAYOR/COUNCIL MEMBERS: None The Mayor declared Ordinance No. 5615 duly passed and adopted. END OF CONSENT CALENDAR. MOTIONS CARRIED. 10 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 A24. 105: APPOINTMENTS TO ANAHEIM REDEVELOPMENT AND HOUSING COMMISSION: This matter was continued from the meetings of September 9 and September 16, 1997 to this date. At the meeting of September 16 (see minutes that date) appointments were made to fill four of the five general member seats (tenant members to be appointed at a later date when a qualified list is available) with one general member seat remaining to be filled. Mayor Daly opened nominations and nominated Mary Ruth Pinson to fill the term expiring June 30, 2001. MOTION. On motion by Council Member Tait seconded by Council Member Zemel, nominations were closed. MOTION CARRIED. Mayor Daly. Mary Ruth Pinson is eminently qualified to advise the Council on Redevelopment matters. City Clerk Sohl. She wanted to clarify the intent of the Council last week when they appointed four members at one time to staggered terms. The order listed on the agenda was the shortest term first and last week they appointed the first elected to the shortest terms. She wanted to be certain that was their wish. It was determined that the order of terms for those appointed was as the Council wished and as listed on the September 16th agenda. Mary Ruth Pinson was thereupon unanimously appointed to the Anaheim Redevelopment and Housing Commission for the term expiring June 30, 2001. A25. 123: AGREEMENT WITH SYSTEMS AND COMPUTER TECHNOLOGY CORPORATION (SCT) - PRIVATIZATION OF THE CITY'S INFORMATION SERVICES DIVISION: To consider an Agreement with Systems and Computer Technology Corporation (SCT) for the privatization of the City's information services and authorizing the Mayor to execute said Agreement. Submitted was report dated September 23, 1997 from the Director of Finance, William Sweeney, recommending that the Council approve the subject agreement. Bill Sweeney, Director of Finance briefed the detailed three-page staff report (with attachments) dated September 23, 1997 noting at the conclusion that "The total savings to the City over the five-year period of this agreement is projected at $1,337,502 (an average of $267,500 per year). This amount plus the value of the additional services to be provided by SCT under this agreement equates to $2,112,502 (an average of $422,500 per year) of total value to the City." Mayor Daly invited those who wished to speak on this issue to do so at this time. The following people then spoke and their comments are summarized: Peter Healy, President, Anaheim Municipal Employees Association - AMEA -(also see minutes of September 16, 1997). He is again speaking on behalf of members of the Association and the employees of the Information Services Division who will be adversely impacted if the Council decides to go forward in dismantling Information Services. He elaborated on the hardships that this change would cause to those directly involved. He also spoke to the proposed agreement noting that the independent conclusion of the City's primary Information Services consultant in 1995 was that the City's best means of adapting the changing technology would be by reorganizing and retaining the in-house Information Services Department. The memo concedes that the consultant's original independent conclusion was that privatizing the department would not show as much promise as having a reinvigorated, in-house Information Services Department. As well, each member of the Council received a copy of the Spencer report from them last week which was supplied at no cost to the City which he will not dwell upon at this time. In concluding, he stated the only way the taxpayers of Anaheim would benefit should the Council 11 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 go forward with the proposed contract with SCT would be if the day the contract was signed, the City bought SCT stock. Nick Berardino, Orange County Employees Association (OCEA). He is appealing on behalf of AMEA. OCEA has been in business for 60 years representing almost 73% of the non-sworn public employees in the County. Privatization is no new subject to them. There are occasions in which privatization would work but this is not one of them. The Warner Report that the City paid for says do not privatize these services. Reorganize the work, examine the efficiencies -- that is what guarantees the taxpayers a fair shake. He questions if $267,000 is enough of a savings for the City to give up Information Services. They feel the City will be slaves to an outside contractor to their most important technology. It is a sales job. The loss of control of the information systems is a major problem and one they should not get into. The employees will be discarded even though they will remain for six months. At the end of that time when SCT takes over, they are not going to want to have any "friends" to the City working for them. Bud Schultz, 156 S. Avenida Valencia, Anaheim. He has been in business in Anaheim for the last 20 years as a consultant. He has listened to the various arguments and read the staff report. In his 30 years's experience, he has seen technology go from the punch card to the personal computer. Technology changes rapidly and a small information services department cannot keep up. The proposal to outsource has a lot of emotion attached to it. A company the size of SCT has a great deal of technology to draw on to bring to the City. As a citizen and business person, he feels that technology alone could justify outsourcing. David Stoll, 716 N. Harbor, Anaheim. As Vice Chairman of the City's Budget Advisory Commission, he is present to report that the Commission has come to the conclusion that for the good of the City and as a prudent business decision to sign the contract with SCT. They feel the benefits far outweigh any concerns brought to the table. The true winners will be the citizens of Anaheim. Council Member Lopez then posed a number of questions which were addressed by Mr. Sweeney as follows: Staff has considered a number of things all of which require time and money. In the information services business, just about anything can be done if there are sufficient funds. With limited funds, that is why they are coming forward with the recommendation for privatization. They know what has to be done. They know the systems that are currently out there that need to be adapted for City use but the time to do that in house would be much higher than using an outsourcing firm. They will continue to do all of the hardware and software which is housed at City Hall West. They do not believe they are losing any of the technology they presently have and believe that outsourcing can do this more efficiently and give greater access to technology. It is not just a matter of cost savings but also staying on the cutting edge of technology. It is a rapidly changing environment and they believe the firm (SCT) has the expertise to draw upon to help the City with that cutting edge which is equally as important as the cost savings. Relative to the current City employees, there are presently 23 with an authorized strength of 30. They cannot keep on top of the technology that is happening around the country as effectively and efficiently as a large corporate structure can. In his opinion, unless his staff would like to offer anything further, his answer is no. He does not believe the 23 can do the job of the 30 (or that 30 could do so either). At present, he is receiving complaints from user departments. In his opinion, unless his staff would like to offer anything further, his answer is no. Council Member Lopez, in concluding his questions, asked, bottom line, would they have to spend millions of dollars to get this equipment to keep up with current technology. Bill Sweeney. They would have to reorganize the division and look at each individual classification, reclassify employees, have extensive training programs made available so they can move from the old style to the new client server systems. He is not going to use the term millions, but it would be a sizeable investment they would have to make. Even after they make that, the problem and one which the Warner Group saw when they did their evaluation, there are no guarantees it would work. It may make the staff more knowledgeable after making the capital investment but will they will ultimately still be facing the same kinds of problems. 12 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Mayor Daly asked Mr. Sweeney to summarize the time the Budget Advisory Commission spent on the issue. They took a unanimous vote to recommend this action and a representative of the Commission spoke this evening. Bill Sweeney. They have been involved for almost two years. They were involved with the Warner Group report and the subsequent recommendation to issue an RFI. They have been involved from the very beginning and concur with staff's recommendation in virtually each step of the process. Mayor Daly. The City Manager is charged with the broad view of the City departmental operation and this is a recommendation that ultimately comes from the City Manager. He asked Mr. Ruth if he was comfortable that this is a sound contract for the City and that the City will be protected and able to manage the contractor for the best benefit of the taxpayer. City Manager Ruth. He cannot recall during his tenure when any individual issue that has come before the Council has had the kind of scrutiny that this has had. It has been very extensive over a long period of time. They are very sensitive to the employees and the tremendous commitment they have made to the City but this is a technology issue. He supports the recommendation. It is a difficult one for the employees but they have tried to protect them to the best extent possible. They are open and willing to work with their employees to make this transition palatable to them. Mayor Daly. A key part of the recommendation is that the proposed contractor, SCT, has agreed to hire all existing employees. They will be offered jobs at rates of pay so their net pay will be no less than their current net pay. AMEA mentioned the pension issue but that appears to be outside the scope of what is recommended at this time. Staff deserves credit for bringing forward a package that focuses on the fundamental concerns of the employees in that the proposed contractor will be offering jobs. MOTION. Mayor Daly moved to approve the agreement between the City of Anaheim and Systems and Computer Technology Corporation (SCT) for the privatization of the City's information services and authorizing the Mayor to execute said agreement. Council Member Tait seconded the motion. Before a vote was taken, Council Member Lopez stated he knows that staff has done a good job but he is not going to support the privatization at this time. The bottom line for him is to give up Information Services for $250,000 a year is giving up too much for the City. He would hope that his colleagues would support him and re-evaluate those services and to find alternatives. Not even counting the 23 employees and how it is going to impact them and their families, SCT is only obligated to keep the employees for six months and after that, it is difficult to know what will happen. These are 23 employees who have committed to working for the City and they should continue to keep them employed. He feels there has to be a way to keep them and keep the information in the City. He is not going to support privatization at this time. A vote was then taken on the foregoing motion. Council Member Lopez voted No. MOTION CARRIED. Mayor Daly. He feels it will be helpful if staff will report on any issues that arise six months down the road as well as the management of the contract. Nick Berardino, OCEA. They need to try to find jobs in the City for the employees who want to remain. They have had extreme difficulty with that. It would be very helpful if the Council could at least take action tonight to direct and monitor the actions of the Personnel Department and Management in placing those who wish to remain. There is one person who is only a few months away from retirement. Mayor Daly. They asked the City Manager to keep them apprised of any issues that arise on the subject. Anything beyond that is part of the labor agreement. He will ask the City Manager to comment. He personally feels he (Ruth) has a track record of being sensitive to these issues. 13 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 City Manager Ruth. He would be more than happy to sit down with any impacted employees and to do everything they can as they have always done to find other positions within the City structure. He will personally be involved along with Human Resources and Mr. Sweeney to make sure they get assignments for the employees. They did take an action in closed session to mitigate one of the concerns in terms of giving employees who may be transferring to SCT up to three years service credit that would apply against their City service. They will continue to work with them. Any other problems they cannot resolve will be brought back to the Council for consideration. ITEMS B1 - B3 FROM THE PLANNING COMMISSION MEETING OF SEPTEMBER 3, 1997: INFORMATION ONLY -APPEAL PERIOD ENDS SEPTEMBER 25, 1997: B1. 179: CONDITIONAL USE PERMIT NO. 3659 AND NEGATIVE DECLARATION: OWNER: NOAH KHOURAKI AND MOHAMED KHOURAKI, 1217 South Brookhurst Street, Anaheim, CA 92804 AGENT: PAUL RUSSAVAGE, 9762 Fairtide Circle, Huntington Beach, CA 92646 LOCATION: 1217 South Brookhurst Street - Al Tayebat Market. Property is 0.31 acre located on the west side of Brookhurst Street, 280 feet south of the centerline of Ball Road. To amend or delete a condition of approval pertaining to a time limitation to retain a market. ACTION TAKEN BY THE PLANNING COMMISSION: APPROVED amendment to Condition No. 14 of PC94-15 for CUP NO. 3659, to expire 9/30/98, (PC97-122) (7 yes votes). Negative Declaration previously approved. An appeal of the Planning Commission's decision was submitted by the Agent Paul Russavage 9762 Fairtide Circle, Huntington Beach, Ca. 92646 in letter dated September 19, 1997 and, therefore, a Public Hearing will be scheduled at a later date. B2. 179: RECLASSIFICATION NO. 97-98-03 WAIVER OF CODE REQUIREMENT CONDITIONAL USE PERMIT NO. 3962 AND NEGATIVE DECLARATION: OWNER: ARGONAUT HOLDINGS, INC., 515 Matin Street #100, Thousand Oaks, CA 91360 AGENT: DENNIS K. LINVILLE, 515 Matin Street, Thousand Oaks, CA 91360 LOCATION: Northeast corner of Pullman Street and Old Canal Road. Property is 2.95 acres. To reclassify subject property from the CO (SC) (Commercial Office & Professional Scenic Corridor Overlay) Zone to the CL (SC) (Commercial, Limited Scenic Corridor Overlay) Zone. To construct a 70,825 square foot, 2-level automobile sales and service facility with accessory parts sales, an interior showroom, service bays, roof mounted equipment, outdoor (at grade) and second level vehicle display/parking area with waivers of (1) minimum parking lot landscaping - APPROVED, (2) permitted freestanding signs - APPROVED, and (3) permitted wall signs - APPROVED. ACTION TAKEN BY THE PLANNING COMMISSION: Reclassification No. 97-98-03 GRANTED, unconditionally, (PC97-123) (7 yes votes). CUP NO. 3962 GRANTED (PC97-124). Waiver of code requirement APPROVED, IN PART, approved waiver (1) as proposed, approved waiver (2) for a 40 sq. ft. double-faced sign, and approved waiver (3) for _6 wall signs. Approved Negative Declaration. 14 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 He asked if the free-standing signs are supposed to be monument signs. He believes he understands the whole sign package proposal except the height. Council Member McCracken just reminded him that at least part of the property is below grade. Cheryl Flores, Senior Planner. The wall signs will be on the elevations of the building. She does not have the exact height but there are six that were approved. The freestanding would be a maximum 8ft. high on Old Canal Road (or Savi Ranch). Council Member Lopez. He asked if in this case the signs are larger than normally allowed and if they are doing something different than in the past. Cheryl Flores. She answered no. It is the same as the sign(s) approved for the dealership to the north -- 8 ft. high and 40 sq. ft., which is consistent. B3. 179: CONDITIONAL USE PERMIT NO. 3963 AND NEGATIVE DECLARATION: OWNER: MELINDA H. GRUBBS, 2 Civic Plaza, Suite 240, Newport Beach, CA 92660 LOCATION: 323 East Ball Road. Property is 1.24 acres located on the north side of Ball Road, 480 feet east of the centerline of Technology Circle. To permit a 10,800 square foot auto repair facility, including paint and body repairs within an existing building. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3963 GRANTED (PC97-125) (7 yes votes). Approved Negative Declaration. ITEMS B4 - B5 FROM THE PLANNING COMMISSION MEETING OF SEPTEMBER 15, 1997: INFORMATION ONLY -APPEAL PERIOD ENDS SEPTEMBER 25, 1997: B4. 134: REQUEST FOR DETERMINATION OF CONFORMANCE WITH THE GENERAL PLAN FOR COUNTY USE OF LEASED SPACE: County of Orange, Social Services Agency, Attn: Paul Douglas, Chief of Real Estate, 888 North Main Street, Santa Ana, CA 92701-3518, requests determination of conformance with the Anaheim General Plan for County use of leased office space for the Greater Avenues for Independence Program. Property is located at 50 South Anaheim Boulevard. ACTION TAKEN BY THE PLANNING COMMISSION: Determined to be in conformance with the Anaheim General Plan. B5. 179: CEQA CATEGORICAL EXEMPTION - CLASS II FINAL SITE PLAN REVIEW NO. 97-15: Inn At The Park Joint Venture, c/o Dallas Hotel Associates, 600 East River Park Lane, #200, Boise, ID 83706 and Tim Zamberfin (authorized agent), 1255 Westlake Avenue N., Seattle, WA 98109, requests review and approval of final site plan including elevation plans and sign plans, to install four (4) wall-mounted signs and replace existing, window awning. Property is located at 1855 South Harbor Boulevard (West Coast Anaheim Hotel). ACTION TAKEN BY THE PLANNING COMMISSION: Approved Final Site Plan Review No. 97-15. END OF THE PLANNING COMMISSION ITEMS. 15 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 B6. 155: ORDINANCE NO. 5614: (ADOPTION) Amending specific plan no. 93-1 (HOTEL CIRCLE). (Introduced at the meeting of September 9, 1997, Item D, and continued from the meeting of September 16, 1997, Item B4.) Council Member Zemel. He asked for a continuance on this item. Joel Fick. Staff has been working cooperatively with the City Attorney's Office to prepare the ordinance in accordance with the action the Council took. The applicant is interested in having the ordinance enacted rather quickly. Council Member Zemel stated his request for a continuance to October 21, 1997 still stands; Mr. Fick clarified for the Mayor that the continuance will have no effect on the City side at all. MOTION. Council Member Zemel moved to continue adoption of Ordinance No. 5614 to October 21, 1997. Council Member Lopez seconded the motion. MOTION CARRIED. B7. 179: ORDINANCE NO. 5616: (ADOPTION) Amending Title 18 to rezone property under Reclassification No. 97-98-01 located at 424,605,605 1/2 East Adele Street (PARCEL B) from the RS-5000 zone to the RM-3000 zone. (Introduced at the meeting of September 16, 1997, Item B5.) Mayor Daly offered Ordinance No. 5616 for adoption. Refer to Ordinance Book. ORDINANCE NO. 5616: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 TO REZONE PROPERTY UNDER RECLASSIFICATION NO. 97-98-01 LOCATED AT 424,605, 605 1/2 EAST ADELE STREET (PARCEL B) FROM THE RS-5000 ZONE TO THE RM-3000 ZONE. Roll Call Vote on Ordinance No. 5616, for adoption: AYES: NOES: ABSENT: MAYOR/COUNCIL MEMBERS: MAYOR/COUNCIL MEMBERS: MAYOR/COUNCIL MEMBERS: McCracken, Tait, Zemel, Lopez, Daly None None The Mayor declared Ordinance No. 5616, duly passed and adopted. B8. 179: ORDINANCE NO. 5617: (ADOPTION) Amending Title 18 to rezone property under Reclassification No. 97-98-01 located at 300 North Olive Street; 300, 301,306, 306 1/2, 308, 309, 310, 311,312, 312 1/2, 315 and 317 North Sabina Street; 300, 305, 307, 312, 318, 322, and 412 North Pauline Street; and 411,415,419,421,517, 521 and 527 East Cypress Street (PARCEL B) from the RM-2400 zone to the RM-3000 zone. (Introduced at the meeting of September 16, 1997, Item B6.) Mayor Daly offered Ordinance No. 5617 for adoption. Refer to Ordinance Book. ORDINANCE NO. 5617: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 18 TO REZONE PROPERTY UNDER RECLASSIFICATION NO. 97-98-01 LOCATED AT 300 NORTH OLIVE STREET; 300, 301,306, 306 1/2, 308, 309, 310, 311,312, 312 1/2, 315 AND 317 NORTH SABINA STREET; 300, 305, 307, 312, 318, 322, AND 412 NORTH PAULINE STREET; AND 411,415,419,421,517, 521 AND 527 EAST CYPRESS STREET (PARCEL B) FROM THE RM-2400 ZONE TO THE RM-3000 ZONE. 16 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Roll Call Vote on Ordinance No. 5617, for adoption: AYES: MAYOR/COUNCIL MEMBERS: McCracken, Tait, 7emel, Lopez, Daly NOES: MAYOR/COUNCIL MEMBERS: None ABSENT: MAYOR/COUNCIL MEMBERS: None The Mayor declared Ordinance No. 5617, duly passed and adopted. D1. 179: PUBLIC HEARING - CONDITIONAL USE PERMIT NO. 1731 AND NEGATIVE DECLARATION: OWNER: LA LANGOSTA MEXICAN RESTAURANT, Attn: Cheng Chai Lee and Jin Yen Lee, 408 South Brookhurst Street, Anaheim, CA 92804 AGENT: MICHAEL MIGAN, 2400 East Katella Avenue, Suite 640, Anaheim, CA 92806 LOCATION: 408 South Brookhurst Street - La Lan,qosta Mexican Restaurant. Property is 0.3 acre located on the east side of Brookhurst Street, 516 feet south of the centerline of Broadway. To amend or delete conditions of approval pertaining to a time limitation to retain an existing restaurant with sales of beer and wine for on-premises consumption ACTION TAKEN BY THE PLANNING COMMISSION: Approved modification to conditions of approval, to expire 8/4/99 (PC97-111) (7 yes votes).Negative Declaration previously approved. HEARING SET ON: A letter of appeal of the Planning Commission's Decision was submitted by the Agent Michael J. Migan 2400 East Katella Ave., Suite 640, Anaheim, Ca. 92806. Informational item at the meeting of August 19, 1997, Item B6. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News - September 11, 1997. Mailing to property owners within 300 feet - September 12, 1997. Posting of property - September 12, 199. STAFF INPUT: See staff report to the Planning Commission dated August 4, 1997. Joel Fick, Planning Director, briefed the staff report to the Planning Commission dated August 4, 1997 regarding the proposed amendment. The request revolves around the time limitation for the original granting of the CUP. Planning staff recommended that a two-year extension be granted. There have been no difficulties or problems but based upon the sensitive location, did not recommend that the time limitation be removed in its entirety. The Planning Commission approved that limitation as well. Tom Engle, Investigator, Police Department. The Police Department supported the Planning Commission in their recommendation of two years instead of one. There have been no problems at the location at all. Mayor Daly opened the Public Hearing and asked first to hear from the applicant or applicant's agent. Applicant's Statement: Michael Migan, Attorney, 2400 E. Katella, Ste. 640, Anaheim, Agent for the owners. He first briefed the history of the restaurant. It is their third restaurant and they are considering other restaurants and locations. There have been no problems at the location. His client is concerned 17 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 that there does not seem to be any basis for a two-year time limit and it seems to be arbitrary. It will cause lack of stability and uncertainty as to whether or not the CUP would be granted again. One of the significant concerns is that they are lumped together with banquet halls and dance halls. Regarding the Paradiso to the north of them, although he does not know what happened, he heard it was the "nightclub from hell" and it seems they are being lumped together as well. La Longosta is not a nightclub. There is no dance floor and there are no plans to have one. It is strictly a family restaurant and the only thing they would like to have is the time limit eliminated. That is their first preference but if the Council wants to consider an alternative, they would also -- that the CUP be automatically renewed or that a longer time limit be granted. Two years is too short a limit and too uncertain for a business like this. There were no further persons who wished to speak either in favor or in opposition. Mr. Migan. In summation, he stated the only opposition they had before was a letter from a school several blocks away. Otherwise, none of the neighbors had any problems and he believes everybody in the neighborhood is in favor. Council Member McCracken. She questioned if there would be a disadvantage to making it a five-year time limit instead of two. She understands there have been problems along Brookhurst with restaurants and nightclubs. However, if they have one that is operating successfully, they would want it to stay. She asked staff their opinion as far as extending the CUP. If it managed to successfully be there for five years, she feels there would then be no reason to have a time limit. Joel Fick. The Planning Commission commended the operator for the successful and quality operation they had been running. Regarding time limits on uses, the policy and practice to do that has been a successful way to safeguard against problems occurring. Based upon the track record in the past, the Planning Commission and Council have extended those limits. Based upon this relatively short operation, they are recommending two years at this time. Council Member Tait. He feels it is difficult to have a businessman invest in his business when he has uncertainty beyond two years. If they are going to encourage this operation, they need to give more than two years. As an incentive, in addition to perhaps a five-year extension if there are no violations, that it automatically be renewed for another five years with a provision that if the business is sold, that the CUP automatically be reviewed. City Attorney White. He explained if this were turned into a nightclub, it would not be in conformity with the CUP and would be in violation. Under the law, they would have to give a due process hearing to review it. A hearing would have to be granted so that they could establish that they either are or are not a nightclub. They would not be able to operate a nightclub under this permit. It would require a new CUP and they would have to come back and reapply. It would be a violation of the zoning code. Relative to the automatic renewal after five years, that would also need to come back for a hearing; Council Member Tait. He assumes then that there is no such thing as an automatic renewal. He will remove the automatic renewal portion and go with the five years. Council Member Tait. He is going to offer approval with a five-year extension of the CUP. (Council Member McCracken concurred). Before action was taken, Mayor Daly stated he respects what was said encouraging a business person to succeed. Something more than two years would be OK but because of the problems on Brookhurst, and the fact that the business could be sold and the CUP runs with the property, he cannot support five years. He hopes the restaurant continues to operate in a clean manner but if it is sold they will not have the ability to control a particular operator. They need to be strict with businesses along that portion of Brookhurst. 18 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Joel Fick. He clarified for Council Member Zemel that all of the existing conditions remain. This is to address the specific points addressed in the resolution only; John Poole, Code Enforcement Manager also clarified if there are violations, the Code Enforcement Division would go out and investigate. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Council Member Tait, seconded by Council Member Zemel, the City Council approved the Negative Declaration upon finding that it has considered the Negative Declaration together with any comments received during the public review process, and further finding on the basis of the initial study and any comments received that there is no substantial evidence that the project will have a significant effect on the environment. MOTION CARRIED. Council Member Tait offered Resolution No. 97R-181 for adoption. Refer to Resolution Book. RESOLUTION NO. 97R-181: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AN AMENDMENT TO CERTAIN CONDITIONS OF APPROVAL IN CONDITIONAL USE PERMIT NO. 1731 AS SET FORTH IN RESOLUTION NO. PC77-157 AS AMENDED BY RESOLUTION NO. PC96-72 ( to expire August 4, 2002). Roll Call Vote on Resolution No. 97R-181 for adoption: AYES: NOES: ABSENT: MAYOR/COUNCIL MEMBERS: McCracken, Tait, Zemel, Lopez MAYOR/COUNCIL MEMBERS: Daly MAYOR/COUNCIL MEMBERS: None The Mayor declared Resolution No. 97R-181 duly passed and adopted. D2. 179: PUBLIC HEARING - VARIANCE NO. 4307 CATEGORICALLY EXEMPT, CLASS 11: OWNER: WATT COMMERCIAL COMPANIES, INC., 2716 Ocean Park Boulevard, Suite 3040, Santa Monica, CA 90405-5218 AGENT: SIGN METHODS, 1749 East 28th Street, Signal Hill, CA 90806 LOCATION: 5711-5799 East La Palma Avenue - Canyon Village Plaza. Property is 9.91 acres located north and east of the northeast corner of La Palma Avenue and Imperial Highway. Waiver of permitted freestanding signs and permitted type of sign (deleted) to construct two (2) freestanding pole signs. ACTION TAKEN BY THE PLANNING COMMISSION: Variance No. 4307 DENIED (PC97-117) (5 yes votes, 1 no vote, and 1 abstained). HEARING SET ON: A letter of appeal of the Planning Commission decision was submitted by the agent Sign Methods 1749 E. 28th Street, Signal Hill, Ca. 90806. Informational Item at the meeting of Sept. 9, 1997, Item B4. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News - September 13, 1997. Mailing to property owners within 300 feet - September 12, 1997. Posting of property - September 12, 1997. 19 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 STAFF INPUT: See staff report to the Planning Commission dated August 18, 1997. City Clerk Sohl. The applicant has requested a continuance of the subject Public Hearing to October 21, 1997. There was no one present to speak. MOTION. Mayor Daly move to continue the Public Hearing on Variance No. 4307 to October 21, 1987 at the request of the applicant. Council Member Zemel seconded the motion. MOTION CARRIED. D3. 179: REHEARING PUBLIC HEARING- WAIVER OF CODE REQUIREMENTS CONDITIONAL US PERMIT NO. 3922, DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 97-07 AND NEGATIVE DECLARATION: OWNER: CARL N. & MARGARET M KARCHER TRUST, 1200 North Harbor Boulevard, Anaheim, CA 92801 AGENT: ARCO PRODUCTS COMPANY, 4 Center Pointe Drive, La Palma, CA 90623 LOCATION: 1244 North Harbor Boulevard. Property is 1.16 acres located on the east side of Harbor Boulevard, 240 feet north of the centerline of Romneya Drive. To permit a 2,944 square-foot service station with an accessory convenience market with retail sales of beer and wine for off-premises consumption with waivers of (a) minimum distance between signs and (b) minimum required landscaping adjacent to interior property lines and to determine public convenience or necessity for retail sales of beer and wine for off-premises consumption. ACTION TAKEN BY THE PLANNING COMMISSION: CUP NO. 3922 GRANTED, IN PART, denying the retail sales of beer and wine for off-premises consumption (PC97-49) (6 yes votes, 1 absent). Waiver of code requirement APPROVED, IN PART, waiver (a) was denied on the basis that it was deleted following public notification, and waiver (b) was approved. DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY NO. 97-07 DENIED (PC97- 50). Approved Negative Declaration. Informational item at the meeting of May 20, 1997, Item BT. At the meeting of July 22, 1997, Item D2, the Anaheim City Council by Resolution voted to grant CUP NO. 3922 (Resolution No. 97R-145) with sales of beer and wine and denied Determination of Public Convenience and Necessity No. 97-07 (Resolution No. 97R-146) based on the belief that the applicant could purchase and transfer an existing abc license. At the meeting of September 9, 1997, Item B12, the City Council determined to readvertise this item as the applicant would not be able to transfer an existing license without the Determination of Public Convenience and Necessity. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in North County News - September 13, 1997. Mailing to property owners within 300 feet - September 12, 1997. Posting of property - September 12, 1997. 2O ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 STAFF INPUT: See staff report to the Planning dated April 28, 1997. Council Member Tait declared a conflict and stated he will, therefore, be abstaining from any discussion or voting. He left the Council Chamber temporarily (7:55 P.M.). Mayor Daly asked to first hear from the City Attorney because of the legal issues involved. City Attorney White. When the original hearing was held (see minutes of July 22, 1997) on this application, he reviewed the minutes and it was apparent that the City Council was under the impression, primarily due to information provided by him, that if the determination of Public Convenience and Necessity (PC&N) were denied, which it was, that the applicant would still be able to obtain an ABC license for these premises by purchasing and transferring (premise to premise transfer) an existing license from another location. It appeared that the Council decision, at least amongst some members, was based on that advice and belief. When he brought that to the Council's attention, two weeks ago, (see minutes of September 9, 1997) the Council determined to give this a rehearing to redetermine that issue as to whether or not a PC&N determination should be approved and at the same time to rehear the CUP itself and possibly include language relating to premises to premises transfer of a license. The rehearing today is a new hearing to redetermine these issues. Council Member Zemel asked if they have to go through each and every item as they did at the original hearing since the only item in question is the determination of PC&N. City Attorney White. The Council can incorporate by reference in this hearing the testimony taken at the hearing held on July 22, 1997 so it need not be reheard. The testimony taken at the meeting of July 22, 1997 was thereupon incorporated into the record of this hearing -- see minutes of the City Council Meeting of July 22, 1997. Council Member McCracken. She asked if it was legally acceptable to amend the CUP to indicate that it would be approved with a transfer of a license in that census tract. City Attorney White. He answered, yes. As he understands from the staff report, the applicant is proposing to purchase a license but in an adjacent tract. That is one of the issues the Council can act on tonight. He believes the business is two blocks away. Council Member Lopez. He understands then that the license they purchased is in a different tract; City Attorney White. He does not know if it has been purchased but what has been proposed is to purchase a license that is in census tract 1423 and the property that is the subject of this hearing is in reporting tract 1424. Tom Engle, Investigator, Police Department. The license he understands is being purchased is 866.01 on the west side of the street to be transferred to 865.01 on the east side. It will be adding another license into that census tract which will take it two over what is allowed. Three licenses are allowed, presently there are four and this will take it to five. What it does to the other side of the street -- five are allowed, there are already three and if this license is transferred, it will bring it down to two. He also clarified that the crime rate is 212% above average and that is the basis for recommending denial. After additional discussion and questioning between Council Member Lopez and staff, Mayor Daly asked to hear from the applicant or applicant's agent. Paul Loubet, Arco Products Company, 4 Center Pointe Drive, LaPalma 90623. The project is one they have seen before (see minutes of July 22, 1997) which was approved including the sale of beer and wine with the 12 standard conditions regarding such sale; however, the Council did not grant the determination of PC& N that would allow them to transfer the ABC license to the site. That is required for a transfer 21 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 when there is an undue concentration of licenses or high crime. They did go out and put into escrow a license currently existing at 1037 N. Harbor. Escrow is closing next week and they had to pay quite a premium to get the license. He respectfully requested that the Council approve the letter of necessity and convenience so they can build and operate under the CUP which was granted/approved. They would like to see a condition that the license in escrow would satisfy a condition bringing a license from the area to the site. He also recently found out that the convenience store, F & M Market that operates at Romneya and Harbor, is operating in violation of a deed restriction that does not allow any convenience markets, mini-markets, or restaurants to operate on that site. He requested approval of their letter of necessity and convenience. Mayor Daly then asked to hear from those who wished to speak either in favor or in opposition. The following people spoke in opposition -- their comments are summarized: Greg Michael, World Oil Marketing Company, owner of the Exon station across the street (also see Mr. Michael's testimony given at the Council Meeting of July 22, 1997). He is again present to ask the Council to vote no against the beer and wine license. There are really seven such licenses in the area and not five. He does not see how necessity could be the issue. After reiterating concerns previously expressed, he urged the Council to vote against the beer and wine license. Sue Berlanga, 1428 W. Marlboro, Anaheim. On behalf of the Patrick Henry Neighborhood, they do not want another liquor store in their community. She submitted a petition containing signatures from those in the Patrick Henry community opposing the proposed project -- a liquor store to be located on Romneya and Harbor (adjacent to Carls Jr. Restaurant). The covering letter dated September 17, 1997 by Zoraida Green, Principal, Patrick Henry Elementary School, expressed the concerns the school/community has with the proposal - made a part of the record). Pam Ireland, 1135 N. West Street, Anaheim representing the Patrick Henry Neighborhood. They do not mind the gas station and selling food. There are two schools in close proximity and also LaPalma Park. There are plenty of liquor stores. They do not need another. She asked that they continue to keep the community safe. Mrs. Vasquez, 1209 N. Dresden, Anaheim. She lives next to a liquor store and sees a lot of crime right behind her house. She is against this. They have a lot of drugs and gang members. They represent Patrick Henry School and they do not want any more (liquor stores). (It was determined that the liquor store she lives next to is the Minute Market on Romneya and Euclid). Chris Roberts (security alarms business), 1150 N. Harbor, Anaheim. (See testimony given at the Council meeting of July 22, 1997). They do not need another liquor license in the area. As Council Member Zemel indicated at the last hearing, he did not want to hurt the businessman. He (Roberts) believes they are not hurting him but instead showing favoritism. The community does not want approval of this license. It is not necessary. The crime is higher in the area. If they do approve it, which he feels they will do, then he urged that they put additional restrictions on it. Summation by Applicant: Paul Loubet. Their intention all along has been to help the community. That is why they went out and purchased the license. In answer to the Mayor, he then stated that the name of the business where they purchased the license is Van's Market at 1067 N. Harbor (across from LaPalma Park). The conditions that staff and the Police Department have recommended should alleviate the concerns of the citizens -- no serving singles, no selling beer and wine after 11:00 P.M., etc. They do not encourage children in their business -- there are no bike racks, pay phones, video games, etc. They are catering to the automobile public and not children. They have a security system and cameras which will help deter any crime or activities in the parking lot. The Council has granted the CUP and now they would like to have the determination of PC&N approved so they can transfer the existing license. 22 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Council Member Zemel. He asked one of the speakers if she was under the impression that something other than beer and wine was going to be sold; Sarah Berlanga answered, yes and when they went around the neighborhood to ask their opinion and gather signatures, most were young parents with school children who like to go to Carls Jr. for their Happy Meals and fast food. The concern was how close is the liquor store. Council Member Zemel. Also in the letter submitted (see letter dated September 17, 1997 from the Patrick Henry Elementary School) the business was referred to as a liquor store and selling alcoholic beverages. It is hardly a description of the proposal and gives instead a whole different image of what is actually being proposed on the property. There is no sale of alcohol except beer and wine and it is not a liquor store. They may still oppose it but he wanted the community to know that it was a different business than they envisioned. A person from the audience stated that she was the author of the letter (Zoraid Green signed the letter). They are not used to doing this (getting opinions and signatures of the community). The information given to them was that there was going to be an establishment selling alcoholic beverages. The parents are obviously not supporting this. There are already five licenses. The consensus was that the community was still opposed. Mayor Daly closed the Public Hearing. Council Member Zemel. His comments are similar to those he made previously (see minutes of July 22, 1997). There is a need for quality development in the area. He does not believe this is favoritism but a way of getting the property developed, i.e., responsible development. He reiterated his concern that as a City, they should be providing more Police protection in the area, not preventing development. Council Member Lopez. This is a quality of life issue, one which Council Members ran on -- making communities a better place to live. The residents do not want the beer and wine and he does not want it either. He does not want any more locations where there is going to be beer and wine. He has been very familiar with the subject area in his 28-year tenure as a Police Officer. He is going to vote no along with the community and urged his colleagues to do the same. Mayor Daly. This is a difficult neighborhood for a variety of reasons. On the one hand, many improvements are under way -- the freeway interchange will be dramatically improved, Harbor Blvd. was recently widened near LaPalma Park, and the City is putting in a lot of public resources to try to redevelop the area. Progress is occurring. What has been inherited from many years ago is a variety of beer and wine licenses and liquor licenses which are a different breed. It is all alcohol, but liquor stores are a different challenge than beer and wine sold at a modern gas station. The operator of the proposed new gas station will adhere to strict new rules and has purchased an existing beer and wine license so it will be one subtracted and one added and the one added much better operated and much more tightly controlled at a better location than that presently at Harbor and Juliana. This is a step towards progress and many other steps should be taken. He feels the area is improving and the proposed service station will go a long way to improving the neighborhood. Before concluding, he noted that Mr. Roberts has a business in the strip center and the convenience market in that center may be operating improperly. It deserves to be looked at. That strip center has been a source of problems as well. On the whole, there is an attitude of progress in that area. Council Member McCracken. She is torn because she is concerned about the community. They have no way of getting rid of some of the beer and wine licenses in the mini marts that seem to be havens for youngsters. Youngsters are more likely to go into the mini marts than they are gas stations and it would be beneficial to get rid of some of the mini marts and the attractions they have for youngsters. The one right opposite LaPalma Park is a disaster waiting to happen. The other side is trying to get quality development in certain areas. There are places where they are not getting gas stations and the lots remain empty all over Anaheim because they cannot make ends meet just selling gas. She noted that 23 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 some of the concerns they heard today involved a mini mart on the corner of Euclid and Romneya which is no where near the subject area. She has mixed feelings on the whole issue. City Attorney White. If a resolution is offered to approve the PC&N determination that a condition be added that would provide that the applicant shall acquire and transfer or eliminate the existing ABC license for the premises located at 1067 N. Harbor Blvd. The reason he stated transfer or eliminate, he is not sure technically these are the same class of license. The substance is that the Van's Liquor Store license disappears in exchange for this one. ENVIRONMENTAL IMPACT REPORT - NEGATIVE DECLARATION: On motion by Mayor Daly, seconded by Council Member Zemel, the City Council approved the Negative Declaration upon finding that it has considered the Negative Declaration together with any comments received during the public review process, and further finding on the basis of the initial study and any comments received that there is no substantial evidence that the project will have a significant effect on the environment. MOTION CARRIED. Council Member Zemel offered Resolution No. 97R-182 for adoption approving the Public Convenience & Necessity determination including the same conditions on the purchase of the existing license at 1067 N. Harbor Boulevard. Refer to Resolution Book. RESOLUTION NO. 97R-182: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING AND DETERMINING THAT THE PUBLIC CONVENIENCE OR NECESSITY WOULD BE SERVED BY THE ISSUANCE OF AN ALCOHOLIC BEVERAGE CONTROL LICENSE FOR THE PREMISES LOCATED AT 1244 NORTH HARBOR BLVD., ANAHEIM, CALIFORNIA (APPLICATION NO. 97-07) Roll Call Vote on Resolution No. 97R-182 for adoption: AYES: NOES: ABSENT: TEMP. ABSENT MAYOR/COUNCIL MEMBERS: McCracken, Zemel, Daly MAYOR/COUNCIL MEMBERS: Lopez MAYOR/COUNCIL MEMBERS: None MAYOR/COUNCIL MEMBERS: Tait (abstained) The Mayor declared Resolution No. 97R-182 duly passed and adopted. Council Member Zemel offered Resolution No. 97R-183 for adoption. Refer to Resolution Book. RESOLUTION NO. 97R-183: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM GRANTING CONDITIONAL USE PERMIT NO. 3922 (REHEARING). Roll Call Vote on Resolution No. 97R-183 for adoption: AYES: MAYOR/COUNCIL MEMBERS: McCracken, Zemel, Daly NOES: MAYOR/COUNCIL MEMBERS: Lopez ABSENT: MAYOR/COUNCIL MEMBERS: None TEMP. ABSENT MAYOR/COUNCIL MEMBERS: Tait (abstained) The Mayor declared Resolution No. 97R-183 duly passed and adopted. 24 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Council Member Tait entered the Council Chamber (8:47 P.M.). C1. 173: SOUTHERN CALIFORNIA COACH - PROPOSED CHANGES IN RATES: Determining whether or not to give notice regarding the Southern California Coach proposed changes to increase the schedule of rates of their jitney type transportation service. Submitted was report dated September 19, 1997 from the Director of Public Works for information purposes relative to the subject request. City Clerk Sohl. She has given to each of the Council Members just before the meeting a memo from John Lower, Traffic and Transportation Manager regarding the subject. Mayor Daly. The Council can apparently choose to set a future Public Hearing. He asked to hear from Mr. Lower. John Lower, Traffic and Transportation Manager. He clarified that staff is recommending a future hearing on this application. They would like to have the opportunity to have Southern California Coach submit the requested information to them, i.e., what airport or airports they are proposing to serve and what the stop locations would be in Anaheim. Lacking that information, it is staff's recommendation that the Council set a hearing. City Clerk Sohl clarified for the Mayor that this involves the Business License Section of the Anaheim Municipal Code adopted in 1966. She has not seen one come forward. The only issue tonight is giving notice to the owner, probably the only one they would notice, with a Public Hearing to be held at 5:00 P.M. giving the owner the opportunity to speak. If the Council does not give direction to notify the owner within 20 days, the Council gives up their rights to do anything about the change. ("The City Council may, if it desires, conduct a public hearing into the subject matter of the owner's notification by notifying the owner in writing of its intention to do so within 20 days from the date of receipt by the City Council of the owner's notification".) MOTION. Mayor Daly moved to give notice to Southern California Coach of its intention to conduct a public hearing into the subject matter of the owner's notification. Council Member Tait seconded the motion. MOTION CARRIED. C2. 127: DISCUSSION - SELECTION OF SPECIAL INDEPENDENT COUNSEL TO ADVISE ON CONSTITUTIONALITY OF CITY'S CAMPAIGN REFORM LAW: Discussion requested by Council Member Zemel to consider ideas for a process to select special independent counsel to advise the City Council on the constitutionality of the City's Campaign Reform Law and the potential liability of the taxpayers if a law is prosecuted but later determined to be unconstitutional. (See minutes of the Council Meeting of September 16, 1997 where the subject was first discussed.) The following summarizes the discussion and actions that took place at this meeting under this item. (A verbatim transcript of the entire proceedings is on file in the City Clerk's Office.) Council Member Zemel. He referred to the discussion that took place last week (see minutes of September 16, 1997) wherein the subject matter was discussed. After briefing what took place at that meeting and the reasons why, he stated he is proposing to have an independent counsel handle the matter. He thereupon made the following motion: 25 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 MOTION A. - Council Member Zemel moved that the Council appoint an independent counsel to advise on four matters: (1) unprosecuted potential violations by Mayor Daly and former Council Member Pickler and additional potential violations which may have gone unprosecuted at this time with regard to (the City's) Campaign Reform Law, (2) advise the Council on whether additional laws may or may not have been broken, (3) provide an opinion on the constitutionality of Anaheim's Campaign Reform Law, (4) liability to the taxpayers in the event the City prosecutes a law later determined to be unconstitutional. Council Member Lopez seconded the motion. Before further action was taken, Mayor Daly stated he intends to participate in the discussion as it pertains to the request to expend Anaheim City funds on an outside attorney to advise on the constitutionality of the City's ordinance. City Attorney White. As to two of the four issues (Items 3 and 4 above), he does not think that there is any question but that all five Council Members can participate. As to the other two issues (Items 1 and 2 above), he is not sure there is an actual conflict but perhaps a perception that would make it advisable to abstain from participating. One way to handle the matter could be a motion to divide the question in four separate parts; Council Member Zemel stated that, as maker, he is not willing to divide the motion. MOTION B. - Council Member McCracken moved that the foregoing motion by Council Member Zemel be divided into four parts. Mayor Daly seconded the motion. Before a vote was taken, Council Member Zemel requested a ruling on the status of the second motion; City Attorney White, quoting from Council rules, stated that any Council Member may move to divide the subject matter of a motion. The motion is not debatable and takes precedence over the main motion in terms of the order of voting. A vote was then taken on the motion (Motion B) and carried by the following vote: Ayes - McCracken, Lopez, Daly. Noes: Tait, Zemel. MOTION C. - Council Member Zemel moved to hire independent counsel to advise the Council of additional violations of the campaign reform laws by Mayor Daly and former Council Member Pickler and the potentiality of any others. Council Member Lopez seconded the motion. The MOTION CARRIED by the following vote: Ayes - Zemel, Lopez. Noes - McCracken. Abstained - Tait, Daly. MOTION D. - Council Member Zemel moved, relative to additional scope of advice that independent counsel look at other potential violations and advise the Council accordingly. Council Member Lopez seconded the motion. Before a vote was taken, discussion ensued between Mayor Daly and Council Member Zemel at the conclusion of which, Mayor Daly asked him (Zemel) the intent of his motion. Council Member Zemel thereupon restated his motion (Motion D.) that the scope of independent counsel's authority to advise the Council would include looking at violations that may have occurred on those aforementioned committees (Daly - Pickler) with regard to State law as well as Anaheim law and any other violations that may have occurred with regard to campaign reform and the committees that are involved in Anaheim. Mayor Daly. He stated it does not involve him but it is City wide. 26 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Council Member Zemel then again restated (and amended) his motion that the independent counsel's scope include advising the City Council on whether or not Mayor Daly's and Mr. Pickler's committees violated State law in addition to City law. Council Member Lopez again seconded the motion as restated. The amended MOTION D. CARRIED by the following vote: Ayes - Zemel, Lopez. Noes: McCracken. Abstained - Tait, Daly. MOTION E. Council Member Zemel moved that under the constitutionality issue, that independent counsel be asked to give his opinion as to where the City's law stands relative to the 1st Amendment. Council Member Lopez seconded the motion. Before a vote was taken, extensive discussion took place in which input was given by Mayor Daly and comments made by Council Members Tait and McCracken at the conclusion of which, a vote was taken on the foregoing motion (Motion E.) and CARRIED by the following vote: Ayes - Tait, Zemel, Lopez. Noes - McCracken, Daly. MOTION F. - Council Member Zemel moved that independent counsel look to see if the City's law can be tightened up to eliminate some of the ambiguities and still retain its constitutionality. Council Member Tait seconded the motion. Before a vote was taken, Mayor Daly asked Council Member Zemel to restate his motion. Council Member Zemel restated (and amended) his motion - MOTION F. - as follows: That the independent counsel also provide the City Council with advice on whether or not the (City's) existing law can be toughened up and tightened up, any ambiguities removed, and still remain within the Constitution. Council Member Tait seconded the motion as restated. After additional input by the Mayor, a vote was taken on the foregoing motion (Motion F. as restated) and CARRIED by the following vote: Ayes - Tait, Zemel, Lopez. Noes - McCracken, Daly. MOTION G. - Council Member Zemel moved that the independent counsel give a clear view of what liability may lie in store for the taxpayers if the City prosecutes laws that ultimately end up being determined unconstitutional by a higher court. Council Member Tait seconded the motion. After questions posed by Mayor Daly to the City Attorney, a vote was taken on the foregoing motion (Motion G.) and CARRIED by the following vote: Ayes - Tait, Zemel, Lopez. Noes: McCracken, Daly. MOTION H. Council Member Zemel. Going back to the first two items (Motions C. and D. above), re: campaign reform laws that may or may not have been violated, he is proposing the following motion: That the Council hire the Chairman of the Fair Political Practices Commission (FPPC), Attorney and former Prosecutor, Ravi Mehta. Council Member Lopez seconded the motion for purposes of discussion. Council Member Lopez. An item of concern to him would be what Mr. Mehta charges for his services. Council Member Zemel. He amended his motion that whoever is appointed, that the charges be in line with normal attorney fees and that the City Attorney advise the Council if the charges are out of line. City Attorney White. As he understands, the motion is to hire Ravi Mehta. He asked for clarification relative to the fees; Council Member Zemel confirmed that he (White) review the fees and if they are not in line, he is to advise the Council. 27 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 A vote was then taken on the amended motion (Motion H.) that Ravi Mehta be hired as independent counsel to determine if campaign reform laws may or may not have been violated and that the fees be reviewed by the City Attorney to determine if they are in line and advise the Council of same. Council Member Lopez seconded the motion as amended. Motion H., as amended, CARRIED by the following vote: Ayes - Zemel, Lopez. Noes - McCracken. Abstained - Tait, Daly. Council Member McCracken. She is opposed to any individual person being considered without some background material so that they can be properly evaluated by the Council. She also believes that Ravi Mehta is no longer Chairman of FPPC. MOTION I. - Council Member Zemel moved that Ravi Mehta also advise the Council on whether or not any State laws were violated on Mayor Daly's or Mr. Pickler's independent expenditures. Council Member Lopez seconded the motion. A vote was taken on the foregoing motion (Motion I.) and CARRIED by the following vote: Ayes - Zemel, Lopez. Noes - McCracken. Abstained - Tait, Daly. MOTION J. Council Member Zemel moved that relative to the constitutionality and potentiality of tightening up the (City's) Campaign Reform Law, while maintaining the constitutionality, he proposes the same independent counsel to serve in that capacity. Council Member Lopez seconded the motion. Before a vote was taken, Mayor Daly, assuming he was able to participate in this discussion, stated that a better and more appropriate way to proceed would be to ask the City Attorney to suggest three or four qualified persons. He then gave his reasons why he will be opposing Mr. Mehta to advise the City on constitutional matters. After additional discussion and input between Mayor Daly and Council Member Zemel, Council Member Zemel WITHDREW HIS MOTION (Motion J.) and Council Member Lopez his second. MOTION K. - Council Member Zemel thereupon moved that the City Attorney suggest four or five names of qualified attorneys to advise the Council on the issues of constitutionality and tightening up of the City's Campaign Reform Law including Council Member Tait's suggestion that it be a constitutional scholar. Council Member Tait seconded the motion. Mayor Daly. He will be voting no because he opposes the idea of hiring an outside counsel for reasons previously stated. A vote was then taken on the foregoing motion (Motion K.) and CARRIED by the following vote: Ayes - McCracken, Tait, Zemel, Lopez. Noes- Daly. MOTION L. - Council Member Zemel moved that relative to the remaining issue, the potential liability to the taxpayers, in the event the City may be prosecuting a case which later may be determined to be unconstitutional, that the City Attorney provide four or five names to the Council and that the Council, at a later date, select from that list. Council Member Lopez seconded the motion. Mayor Daly. He will be opposing for reasons previously stated -- that he believes it is a waste of Anaheim taxpayer money to ask an outside attorney to advise the Council on a subject that has not yet been researched by the City Attorney and the Council has not yet asked the advice of the City Attorney. A vote was then taken on the motion (Motion L.) and CARRIED by the following vote: Ayes - McCracken, Tait, Zemel, Lopez. Noes: Daly. 28 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 Mayor Daly. He is curious as to what Council Member Zemel's intention is in terms of the scope -- is it an investigation of potential prosecution by Mr. Mehta or simply advice to the City Council on the first two issues. Council Member Zemel. He would assume he would have to investigate first to give his advice. He has left out prosecution on purpose so they could confer with the City Attorney in case that were to be the advice and to see how comfortable he was in handling it. He is looking for outside independent opinion on the subject without knowing what that advice or opinion would be. He cannot make any comment beyond that. Mayor Daly. He asked if it was his intention that Mr. Mehta's investigation include probing any and all activities of the Business and Taxpayers Good Government Independent Committee, for instance; Council Member Zemel. It was not in the motion. It was specifically about the currently unprosecuted issue that a citizen brought forward in a formal complaint and then he brought up a motion to have it looked at. The Good Government Committee is being prosecuted and he does not intend to stop or advance that. City Attorney White. Since the Council is not meeting for two weeks, he assumed he will be bringing back to the Council at the next meeting the names they asked him to provide. He was not instructed to contact Mr. Mehta. He asked if they wanted him to do that or if someone else would do so. Council Member Zemel. Personally, he feels that is a good idea -- that the City Attorney make available the documents he has and that he (White) develop a working independent relationship with him and oversee that to the tune of the billing. City Attorney White. He asked if the Council would like him to make the contact; Council Member Zemel asked if the Council agreed that the contact person should be the City Attorney's Office in providing documents and reviewing the billing. Three Council Members indicated agreement (Council Members McCracken, Zemel and Lopez). Mayor Daly. He asked Council Member Zemel if he had any personal contacts with Mr. Mehta; Council Member Zemel. He called to see if he (Mehta) was leaving FPPC and that was the extent of the discussion. Mayor Daly. He intends to bring back issues relating to the November, 1996 election cycle and a potential for more independent investigation of all potential violations that may have occurred by various persons. C3. REPORT ON CLOSED SESSION ACTIONS: City Attorney Jack White stated that there are no actions to report. 29 ANAHEIM, CALIFORNIA - CITY COUNCIL MINUTES SEPTEMBER 23, 1997 c4. COUNCIL COMMENTS: Council Member McCracken reported on her attendance at recent events -- the recent Anaheim Police Department Open House, and the celebration of the 30-year Anniversary of Anaheim Independencia and its service to the community. Relative to the latter, although it is located in the County, it serves many citizens of Anaheim. Mayor Daly. Anything that can be done to encourage the unincorporated areas to join with the City should be done, particularly the area between Brookhurst and Gilbert south of Broadway which should be part of the City. That area should be encouraged to join Anaheim in a full way. Mayor Daly. He would like to have agendized for the next Council Meeting (October 7, 1997) a discussion of potential allocation of $100,000 of City funds to the Anaheim Prep Sports/Activities Foundation. He will bring more background to the Council at that meeting. It is an after-school program for Junior and Senior high school students in the greater Anaheim area. ADJOURNMENT: By general Council consent, the City Council Meeting of September 23, 1997 was adjourned (9:55 P.M.) The next scheduled City Council Meeting is Tuesday, October 7, 1997. LEONORA N. SOHL CITY CLERK 3O