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2007/07/31ANAHEIM CITY COUNCIL REGULAR MEETING OF JULY 31, 2007 The regular meeting of July 31, 2007 was called to order by Mayor Pringle at 3:15 P.M A copy of the agenda for the meeting of the Anaheim City Council meeting was posted on July 27, 2007 on the kiosk outside City Hall. PRESENT: Mayor Curt Pringle and Council Members: Lorri Galloway, Bob Hernandez, Lucille Kring and Harry Sidhu. SfiAFF PRESENT: City Manager Dave Morgan, City Attorney Jack White, and City Clerk Linda Nguyen WORKSHOP -FIVE YEAR PLAN -UNDERGROUND CONVERSION PROGRAM Dukku Lee, Utilities Project Manager, reported the underground conversion program had begun in 1990, funded through a surcharge on the electric utility bill and was now viewed as a benchmark by other agencies. As of today, he stated, the Department had completed the under-grounding of 93 circuit miles which equated to 40 roadway miles because of multiple circuits involved on electric poles. For the coming fiscal year the Department planned to underground four circuit miles. He pointed out that on average five circuit miles per year were completed; however last year there were two large projects which undergrounded nine circuit miles, Santa Ana Canyon and the Broadway project. Mr. Lee explained the five criteria used to select projects were project coordination, reliability and electrical engineering principles, geographic diversity, funding levels and aesthetics. Project coordination was the most important criterion to ensure coordination with any proposed street widening or rehabilitation projects. The five-year plan included three steps for the approval process; staff initially provided recommendations on projects which met the criteria and from the Underground Subcommittee a recommendation was made to the Public Utilities Board. Upon the Public Utilities Board approval, the plan was finally submitted to the Council for approval. He stated that once the five year plan was approved, each individual underground district would be submitted to Council for approval at a later date. This step, he added, was important as the resolution formed at that time compelled the telecommunication companies to underground their lines at their own expense. Of the plan approved fast year, Mr. Lee explained that there were a total of 18 projects with four under construction. The City's portion on Broadway, from Euclid to Manchester, was completed and all that remained was for the telecommunication companies to remove their facilities and for the poles to be removed. On Santa Ana Canyon Road, the City had undergrounded its facilities, placed the customers onto the new system and removed the overhead wires. The poles, he remarked, were anticipated to be removed after the telecommunication work sometime in October or November of this year. Mayor Pringle commented on the high cost for undergrounding which appeared to be almost $4 million for a linear roadway mile; Mr. Dukko concurred on the cost emphasizing expenses July 31, 2007 -Page 2 continued to increase. Council Member Sidhu asked for an explanation of the cost discrepancy of an $8.9 million for 2.5 circuit miles on the Broadway project and $9 million for 5.6 circuit miles on a second project. Mr. Lee responded there were a number of different design nuances involved in each project, whether the sub-transmission lines were 69,000 or 12,000 volts, the types of construction bids received, the types of materials being purchased, and whether the project was closer to the substation and required more or different cables. He reported on two other projects under construction, Underground District 41, La Palma/Imperial, an intersection where Caltrans grade separation was also going forward and the Department's scope of work was to remove the pole lines along La Palma and in this case underground both distribution and subtransmission lines. The Katella/Lewis project, from State College to the raiiraad tracks east of the 5 freeway on Katella and then on Lewis street from Katella just south of the railroad tracks, had pole lines on either side of the street. In addition, developments on that site were under construction as well which was why this project was implemented in multiple phases. Projects under design included Euclid and Sunkist, running north and south. Mr. Lee indicated there were several portions of Euclid already completed and the Department would accelerate the Katella/Euclid intersection due to the street widening on Katella, removing the poles at that intersection and returning to complete the balance of the district on Euclid. Harbor Boulevard was also in design, to underground fines on Harbor from Vermont to Water. Other projects identified were Lincoln/Magnolia and La Palma/Brookhurst. For these projects, the process of laying out the electrical system and negotiations with the property owners to site electrical transformers on their properties would begin. At the planning or pre-design stage, the next projects to bring forward to Council for district formation was Mira Loma from the 91 to Kramer, La Palma/Yorba from La Palma to the Yorba substation and Dale, which was in the western part of the City. Marcie Edwards, General Manager, emphasized the reason for a five year plan was to allow a lengthy window period to accommodate projects with changing priorities. She explained projects needed enough lead time so the Department could negotiate with customers to place transformers on their properties and make the process a positive experience. Mr. Lee added some utilities constructed to the property line and then had the customers take the rest of the facilities from the property line to their meters. He explained by doing this, a situation could arise where one or two customers could hold up an entire project and that was why Anaheim constructed the line back to each customer's electrical panel. Other projects he identified in the pre-design stage were Nutwood/Cerritos, West/Westmont, and two transmission lines running along La Palma to the 57 freeway as well as some circuits along Sunkist where it transitioned to Mira Loma Way. The OliveNermont project would tie into the Anaheim substation project, and the Department would pick up as part of the conversion the balance south of Vermont on Olive Street. In addition, the Ball/Brookhurst project from Brookhurst over to Euclid and then to Magnolia from Crescent to Cerritos were planned. Mayor Pringle asked if those transmission lines were Edison wires. Mr. Lee responded they were Anaheim's wires although he pointed out Edison had some communication wires along that stretch and right now their power ran to the north of where this District was planned. He added Edison's line ran along La Palma and turned north on Magnolia up to the 91 freeway and beyond as they had a substation to the west of Magnolia. July 31, 2007 -Page 3 Sixteen projects from the previous five-year plan were being transferred to the proposed plan and one new project, Lincoln/Rio Vista would be implemented in phases. Phase 1 was in coordination with a planned project to put some parkway trees within that area and help beautify that area and Public Utilities was recommending their facilities be removed first. Phase 2 was much more substantial in scope and would be done at the back end of the five year plan. Mayor Pringle inquired why Phase 1 did not come all the way to the intersection. Mr. Lee replied there were transmission lines running east/west from the 57 freeway over to Rio Vista, turning north, and as a result there was a guide pole in place to secure the transmission pole from toppling over. The transmission fines would remain therefore the need to secure them also remained. Council Member Sidhu asked why Lincoln/Rio Vista was selected and Mr. Lee responded there was a planned project on Lincoln for beautification with some parkway trees and a monument on the east side, and the need to get utility lines underground and out of the way was important. Council Member Kring asked to what depth the lines were undergrounded. Mr. Lee indicated the conduits were encased in cement which prevented anyone from digging into them and there was 48 inches of cover between grade and the conduits. Mayor Pringle pointed out that 18 months ago neighbors had expressed concern about improving the Ralph's Center on Lincoln and that the beautification effort was moving forward. Mr. Morgan added that separate from the undergrounding program; the City had a major corridor beautification program as well although it did not have the regular funding that the Utility underground project had. Lincoln and State College, he pointed out, were the two most prominent beautification projects and this would be part of completing Lincoln. In terms of financing these projects, Mr. Lee reported bond dollars were infused into the program a number of years back and roughly $10 million per year was collected from ratepayers for the conversion program. Council Member Sidhu inquired whether Lakeview up to Imperial would be scheduled for conversion in the future. Mr. Morgan responded Council would be getting a presentation on the master plan for the entire stretch of Santa Ana Canyon, as there were other segments on that stretch including Lakeview which needed landscaping to become more of an asset to the community. Mayor Pringle remarked that on that segment of Lakeview, the asphalt in particular needed repair and he did not see where the Utility Department's timing would fit in to be able to coordinate with Public Works and he did not want to delay the resurfacing for two years to wait for coordination with the underground conversion program. Ms. Edwards remarked this project was on the alternative project list and the department did work with Public Works and their street resurfacing. She added if Public Utilities undergrounding came after the fact on this particular stretch of the road, a ribbon trench would be utilized and grind and cap from the Utility Department budget would return the road to optimal status. She added it was on the list and could be moved forward at the request of Council. She mentioned each project was reviewed individually and there were times when it was less expensive to follow behind Public Works projects and do a small trench and refix the road than to underground the lines prior to Public Works resurfacing projects. Mayor Pringle requested a fuller presentation on roadway projects for the future for Council to see what the timing aspects were for road projects. Mayor Pringle remarked he felt it was important for the City to maximize the look and improvements on the major corridors. He would support looking at other revenue sources that could be used to accelerate this program or loaning capital dollars to the Utility Department or even asking the voters if they wished to support such an effort as he felt it made a difference to the community and to how the City was perceived. Mr. Morgan asked Ms. Edwards to explain Rule20 change as it impacted Southern California Edison. She indicated this was a requirement by which July 31, 2007 -Page 4 Edison must underground minimal portions of their circuitry, but that it was probably a tenth of what the City of Anaheim does. Council Member Kring thanked staff for making an effect to locate a project in each part of the city so that everyone had a piece of the pie. Council Member Sidhu asked for a report on what it would take to expedite more undergrounding as it related to benefits, cost impacts and with a variety of strategies on how to generate extra revenue. ADDITIONSIDELETIONS TO CLOSED SESSION: NONE PUBLIC COMMENTS ON CLOSED SESSION ITEMS: NONE CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Approximately 50.29 acres generally northerly of Angel Stadium of Anaheim in the Platinum Triangle Stadium District, 2000 Gene Autry Way, Anaheim, California Agency negotiator: Dave Morgan, Joel Fick Negotiating parties: City of Anaheim and Archstone-Smith Operating Trust Under negotiation: price and terms 2. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Walt Disney World Co. v. City of Anaheim, et al., Orange County Superior Court Case No. 070001210 and 070001293. 3. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Torres & EI Vaquero, Enteprises v. City of Anaheim, et al., Orange County Superior Court Case No. 070007328. 4. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 of the Government Code) Facts and circumstances: dispute concerning amounts due to Southern California Edison Company pursuant to 1975 agreement relating to fringe account electric service provided by SCE since 1987. 5. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Title: City Clerk With possible action on salary adjustment to be taken in open session under Agenda Item 28. At 5:18 P.M., Council returned from closed session to continue the Council agenda. Invocation: Pastor Mark Bradarick, Magnolia Baptist Church Flag Salute: Council Member Lucille Kring Presentations: Recognizing the Mito (Japan) student delegation on their visit to the City of Anaheim -Marge Conway, President of Sister Cities Association introduced Yatsuko Maruro, the Japanese teacher accompanying the student delegation, who in turn, recognized each visiting student. July 31, 2007 -Page 5 ADDITIONS/DELETIONS TO THE AGENDA: NONE PUBLIC COMMENTS (all matters except public hearings): James Robert Reade, resident, spoke in support of not using eminent domain in an effort to revitalize areas of the City. Jim Adams, LA/OC Building and Construction Trade Council, spoke on behalf of his members, voicing their opposition to any zone change in the resort area and requesting Council either rescind their earlier approval of a zone change or set the date for an election by Anaheim voters. Brian Suttle, resident/Local 416, strongly opposed any zoning change asking Council to reconsider their prior vote. Diane Sergeant, resident, remarked the Maxwell Park expansion was viewed as a quality of fife improvement for the neighborhood and asked for Council's approval of Item No. 10. Konstantinos Roditis, 24/7 Yellow Cab, addressed his comments to Item No's 14, 15 and 16 on the agenda. Rather than extend the cab franchises, Mr. Rodidas urged Council go to a competitive bid process as 24/7 Yellow Cab would propose a bid of $1,000 per vehicle license per cab or $230,000 in franchise revenues each year. Carl Rodila, resident, was opposed to the zone change in the resort area requesting Council reconsider their vote. Richard Lucero, resident, opposed the zoning change in the resort area, and asked Council to reconsider. Stella Negrete, treasurer of Southwest Anaheim Little League, remarked the League had been in existence for 53 years and she was soliciting any level of assistance the City could provide. AI Ybarra, indicated he was present on behalf of the AFLCIO and had been directed by the executive board to oppose the rezoning of the resort district on behalf of its 125,000 Orange County members. Larry Slagle, chairman of Anaheim Visitors and Convention Bureau, spoke in opposition to the rezoning pointing out Garden Grove was in negotiations with Westin Resort to build a hotel and had an unnamed additional proposal to further build out that area. Given this information, he believed hotel development was not on the decline and that it would not be 20 to 50 years before the property under consideration would be attractive to hotel development. He further pointed out Garden Grove's bed tax had risen from an annual $2 million to $12 million emphasizing Anaheim should stay vigilant to retain that revenue in the City. Todd Ament, Anaheim Chamber of Commercelco-chair of SOAR, remarked SOAR was willing to accommodate additional discussion between Disney and SunCal for a few more days to determine if there was any reasonable compromise possible, but if no resolution was found, SOAR would seek all remedies to get their initiative on the ballot. He added any further delay beyond next week's Council meeting was not acceptable and he urged Council to act and let the voters decide whether high density housing in the resort was appropriate. Jeff Garcia, resident/Disneyland shop steward, spoke in opposition to the rezoning asking for the area to remain as resort and commercial uses. July 31, 2007 -Page 6 Ron Bengoshea, resident, implored Council to retain the resort district zoning and seek other sites for affordable housing. Steve Aldez, resident, spoke in support of the Maxwell Park expansion and identified a need for a score board for Boysen Park, asking that Council consider this request. Jerry Zomorodian, Sesquicentennial Commission, provided an update on recent events and thanked Council for their on-going support. He announced the Taste of Anaheim held on June 20tH had the largest attendance to date (5,000) and the July 4th celebration event was a success with over 1,300 runners, 650 breakfasts seared and about 5,000 parade attendees. In addition, he reported the Great American 2007 Cross Country raced finished in the City of Anaheim. . Patrick Pepper, resident, indicated he had been involved with land use issues in Anaheim for over 20 years and was opposed to the resort zone change, asking Council to rescind their action or place the issue on the ballot for the voters to decide and have the developer go through the normal process of submitting a specific plan for their site. Connie Rodriguez addressed the need for low cost housing remarking tourism had grown and families were coming to Anaheim to work and existing affordable housing could not accommodate that growth. Bob Ball, resident, expressed disappointment that no compromise had been offered by the negotiating parties and resignation that no solution would be found this evening. Brian Freeman, resident, spoke in opposition to the resort zoning change and to SunCal's track record on affordable housing. Paul Goodwin, retired labor council, spoke in opposition to the rezoning, commenting on the revenues that would be lost and the on-going costs for providing subsidized housing. Eric Anderson, resident, remarked the city of Garden Grove was encroaching on Anaheim's tourism market with visions of their own theme parks, resorts, casinos and posh hotels while Anaheim focused on a debate as to whether residential homes should be allowed in the resort. CONSENT: Council Member Hernandez removed Item No's. 6, 11, 18 and 23 from the Consent Calendar for further discussion; Council Member Kring removed Item No. 10 and Council Member Galloway pulled Item No's. 14, 15 and 16. Council Member Sidhu moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the consent calendar in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the balance of the Consent Calendar, seconded by Council Member Hernandez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 1. Receive and file minutes of the Golf Commission meetings of April 26, 2007 and May 24, B1Q5 2007; the Cultural and Heritage Commission meeting of May 29, 2007; and minutes of the Senior Citizens Commission meeting of June 14, 2007. 2. Receive and file the Investment Portfolio Report for June 2007. D128 July 31, 2007 -Page 7 3. Approve an agreement with Carpi Clay & Smith for federal advocacy services and with 4729 Sloat Higgins Jensen & Associates for state advocacy services representing the City in Washington, D.C., both for a three year term (continued from the Council meeting of July 17, 2007, Item #14). 4. Accept the low bid of Clean Sweep Supply Co. Inc., in an amount not to exceed $170,227 D180 (including tax), for 100% recycled paper products for the Convention Center, for aone-year period, with up to three one-year renewal options and authorize the Purchasing Agent to exercise the options to renew in accordance with Bid #6957. 5. Accept the low bid of Controllix Corp., in the amount of $108,966 (plus tax), for the D180 purchase of one 12.47 kV pad mounted capacitor bank for the Public Utilities Department in accordance with Bid #6937. 7. Award the contract to the lowest responsible bidder, All American Asphalt, in the amount of 4732 $255,610, for the Magnolia Avenue Improvements and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 8. Award the contract to the lowest responsible bidder, All American Asphalt, in the amount of 4733 $278,391, for Anaheim Boulevard Improvements from Ball Road to Lorraine Drive and approve and authorize the Finance Director to execute the Escrow agreement pertaining to contract retentions. 9. Approve the Final Map and Subdivision Agreement of Tract No. 17040 with the Anaheim 4734 Redevelopment Agency for property located at 516 East Santa Ana Street. 12. Approve (i) a Parking Lease Agreement with the Orange County Transportation Authority, 1460 (ii) a Sublease Agreement with Anaheim Arena Management, (iii) an Amended and Restated Easement Agreement with Lewis R. Schmid and Judith E. Schmid and John O. Franklin, Trustee, Sidney E. Lewis Trust (the "Schmid Parties"), (iv) a License Agreement with the Orange County Transportation Authority and (v) authorize the Executive Director of the Convention, Sports and Entertainment Department to approve the terms of the Sub- sublease with Anaheim Arena Management and one or more of the Schmid Parties and, if necessary, changes to the Easement Agreement as requested by the Schmid parties. 13. Approve a Professional Services Agreement with Civic Solutions, Inc., in an amount not to 4736 exceed $200,000 for on-call planning services. 17. Approve the proposed Five-Year Underground Conversion Plan for Fiscal Years 2007-08 to D182 2011-12. 19. RESOLUTION NO. 2007-131 A RESOLUTION OF THE CITY COUNCIL OF THE D182 CITY OF ANAHEIM authorizing the destruction of certain city records more than two years old (Public Utilities Department). 20. RESOLUTION NO. 2007-132 A RESOLUTION OF THE CITY COUNCIL OF THE D175 CITY OF ANAHEIM authorizing the destruction of certain city records more than two years old (Public Works Engineering Department). July 31, 2007 -Page 8 21. RESOLUTION NO. 2007-133 A RESOLUTION OF THE CITY COUNCIL OF THE D116 CITY OF ANAHEIM authorizing the City Manager to enter into certain agreements for and on behalf of the City for amounts not to exceed one hundred thousand dollars ($100,000), exclusive of contingent liabilities. 22. ORDINANCE NO. 6066 (INTRODUCTION} ORDINANCE OF THE CITY OF M142 ANAHEIM adding new Section 1.04.396 to, and repealing Subsection .060 of Section 1.04.450 of, Chapter 1.04 of Title 1 of the Anaheim Municipal Code relating to removal of Board and Commission members due to excessive absences from meetings. 24. Approve minutes of the Council meeting of July 17, 2007. END OF CONSENT CALENDAR 6. Authorize the Purchasing Agent to competitively bid and immediately purchase electrical D180 transmission and distribution equipment and materials from the lowest responsive bidders, as required to meet the needs of the Public Utilities Department. Marcie Edwards, Utilities General Manager, remarked that over the last few years the components that went to the purchase of electric infrastructure had dramatically increased in cost and lead time and suppliers had been unwilling to bid. Now when bids were received, there was frequently a one week turn around time to respond to the bids, and consequently, staff was requesting authorization for spot bid purchases, still using the existing bid process but shortening the overall time frame in order to be able to purchase infrastructure to be able to continue to do capital programs. Council Member Hernandez had removed this item from the consent calendar to make it clear that this accelerated process was now the most efficient and effective way to handle this type of bid and moved to approve Item No. 6, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 10. Approve the License Agreement with Southern California Edison Company (SCE) for the 4735 use of SCE property for the development, operation and maintenance of recreational facilities at the proposed Maxwell Park Expansion. Council Member Kring had removed this item from the consent calendar to thank staff for their efforts at getting this long-awaited project underway and moved to approve Item No. 10, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 11. Approve the Workforce Investment Board's recommended selection of training agencies for D155 delivery of occupational skills training to participate under the Workforce investment Act and other certain funding sources through June 30, 2008. Council Member Hernandez indicated an extensive list of training providers had been submitted by the Workforce Investment Board, asking whether it would be a conflict of interest should a member of Council have an interest in one of the agencies. Elisa Stipkovich, Executive Director, responded she had no specific knowledge, pointing out Council was not approving contracts with this action and the list of entities. had been pre-certified by the State of California as possible vendors the City could consider. City Attorney Jack White further explained there was a separate conflict of interest July 31, 2007 -Page 9 provision in State law for contracts and it would prohibit the City from entering into a contract if any council member had an interest in one of these training agencies remarking that he had no knowledge of any affiliation by a council member. Mayor Pringle remarked that he had not reviewed the 180 listed training providers and with the consent of Council, continued this item to August 215Y to allow time for further review. As Item No's. 74, 15 and 76 were related, Council considered them in one action: 14. Approve cone-year extension to the current franchise with A Taxi Cab Company. F 130.2 15. Approve aone-year extension to the current franchise with California Yellow Cab'Company. F 130.2 16. Approve aone-year extension to the current franchise with Yellow Cab of Greater Orange F130.2 County Cab Company. Bill Sell, Code Enforcement, reported when Council elected to go to a franchise agreement process for cab companies operating within the City, a consultant was hired to determine how many cabs Anaheim could accommodate; that quantity was 230 cabs. Cab companies were then asked to submit bids to obtain one of the franchises and the City ended up with three separate companies, one with 130 cabs, and two with 50 cabs each. The franchise agreement, he explained, was for a five year fixed period with the ability to extend that for one year for each year they were in compliance with the ordinance and in which they submitted a request. A total of 10 years for each franchise was available if criteria were met. Mr. White added the three franchises that currently existed would expire in February of 2009, February of 2010 and February of 2011. Council could then award a new franchisee beginning 2009. He pointed out all the franchises were awarded at the same time in 2002, however, none of the companies timely requested an extension for all five years, which was why there were three different expiration dates. Council Member Galloway asked if the 230 cabs handled Anaheim's needs; Mr. Sell replied there were no complaints received as to the number of cabs available and hotels had not indicated there were any problems. He added for big conventions, a temporary franchise to extend their fleets could be requested. In answer to Council Member Kring's question, Mr. Sell indicated A Taxi Company franchise expired in 2009, California Yellow expired in 2010 and Yellow Cab in 2011. Council Member Galloway asked if the City always had three cab franchises; Mr. Sell answered that there was only one for a long time prior to 2002, Yellow Cab of North Orange County, until staff determined the need to analyze whether to allow other cab businesses within the City and hired a consultant to determine what those needs were. Council Member Sidhu moved to approve Item No's. 14, 15 and 16, seconded by Council Member Kring. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 18. Certify that the adoption of the Developmental Schedule D-TOU (Domestic Time-of-Use) D182 rate to the City of Anaheim's Electric Rates, Rules and Regulations is statutorily exempt under the California Environmental Quality Act. RESOLUTION NO. 2007-130 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adding to the rates, rules, and regulations for the sale and distribution of electricity as adopted by Resolution No. 71-478 and most recently amended by Resolution No. 2006R-188. July 31, 2007 -Page 10 (This item was considered after lfem No. 6). Marcie Edwards, Public Utilities, reported this item requested Council's approval for a residential Time of Use rate intended to provide Anaheim's residential customers who had higher electric usage, a market pricing signal. This rate, she explained, would allow those customers to respond to that signal should they choose to do so by lowering their electric usage within certain hours of the day. Rather than paying 11 cents a kilowatt hour around the clock, customers would pay nine cents for low usage hours and 13 cents for high usage hours. That market signal was then intended to prompt their behaviors to reset pool filter pumps to non high usage hours, or change thermostats and turn computers off during the day and by taking these actions, would lower their overall electric bill. She explained while the development of this rate was federally mandated, the Department wanted to encourage residential customers to be able to test it out so if a customer tried this rate and they were not able to lower their bill, the Utility Department would refund them what would have been the difference had they never selected the Time of Use rate which removed any financial risk from the customer. With Council's approval tonight, she stated, this rate would be available to use by customers on August 1, 2007. She added staff was currently in the process of acquiring the meters necessary for this rate and estimated the rate would be fully available by the end of the calendar year to all those residents that wished to apply. Council Member Hernandez remarked this was a good example of the City being sensitive to the environment and he believed this was a good program for its residential customers. Ms. Edwards added this program was presently being used by some industrial and commercial users and it allowed, through direct wireless connection at the meter, a continuous running of signals so the Utility Department knew exactly how much power was being used at that time. Council Member Hernandez moved to approve Item No. 18, seconded by council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 23. ORDINANCE NO. 6067 (INTRODUCTION) AN ORDINANCE OF THE CITY OF M142 ANAHEIM adding Chapter 4.20 to Title 4 of the Anaheim Municipal Code prohibiting the establishment and operation of medical marijuana dispensaries. Chief John Welter reported years of research had gone into issues related to medical marijuana dispensaries and the ordinance now before Council for consideration would prohibit the establishment of such a facility in Anaheim. Currently, he stated, there was one medical marijuana dispensary operating in Anaheim. He explained Proposition 215 was approved by voters in 1996 which allowed for limited possession, cultivation and use of medical marijuana for certain seriously ill patients, however, that legislation did not provide much detail or explanation as to how the public could obtain the substance or any guidance to government on how to deal with this issue in general. SB 420 was passed in 2004 and was expected to provide some clarification into the questions which arose from Prop 215. Chief Welter emphasized marijuana use was a clear conflict between State and Federal law and police departments were caught in the middle. Experts in the field had looked at this issue and believed the vast majority of people using medical marijuana were not seriously ill and in fact were using these facilities to purchase marijuana and use it in illegal ways. Under the Act, he pointed out, the dispensaries were not defined, cities were not required to allow them, and, in fact, the Juiy 31, 2007 -Page 11 dispensaries were retail businesses, selling untested, unregulated products of unknown strength. He added there were no safeguards in place to protect the buyer, and each one of these facilities could sell what they want to whomever they want with no age limits on who could purchase. Standard pharmacies, on the other hand, he pointed out, were strictly controlled and regulated by the government. He added in California, serious problems were documented in the many communities which contained medical marijuana dispensaries and in Anaheim, when the first dispensary opened, there was a violent armed robbery, frequent illegal drug activity and a perceived decrease in public safety by the number of businesses surrounding the dispensary. He added businesses were closing and relocating because of these facilities in many communities. The ordinance, Chief Welter explained, did not conflict with SB 420 or federal law. He remarked that over 100 cities in California had temporarily suspended the opening up medical marijuana dispensaries or permanently banned them in their communities due to the negative impacts. Six cities in Orange County had also done the same. Chief Welter added there were a compilation of research papers attached to his written report detailing the negative effects on jurisdictions and impacts resulting from those dispensaries and recommended Council adopt the attached ordinance as a crime prevention measure. Council Member Sidhu moved to introduce Ordinance Number 6067 of the City of Anaheim adding Chapter 4.20 to Title 4 of the Anaheim Municipal Code prohibiting the establishment and operation of medical marijuana dispensaries, seconded by Council Member Hernandez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 25. Form the Housing Element Ad Hoc Committee, to be comprised of ten City Council B105 appointees, one member of the Planning Commission and one member of the Housing and Community Development Commission and each City Council member appoint one resident and one stakeholder to the Committee. Council Member Kring moved to approve the formation of the Housing Element Ad Hoc Committee, seconded by Council Member Sidhu. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. With the consent of Council, Mayor Pringle continued the following appointments to August 21, 2007. Mayor Pringle Appointments: Resident: Stakeholder: Council Member Hernandez Appointments: Resident: Stakeholder: Council Member Galloway Appointments: Resident: Stakeholder: Council Member Kring Appointments: Resident: Stakeholder: July 31, 2007 -Page 12 Council Member Sidhu Appointments: Resident: Stakeholder: 26. Referendum Petition concerning General Plan Amendment No. 2006-00448. C410 Reconsideration of General Plan Amendment No. 2006-00448 relating to approval of amendments to the Land Use Element of the General Plan to authorize awholly-residential development, fifteen percent of which must be composed of rental units affordable to low or very-low income households, on a designated 26.7-acre site in the Anaheim Resort, possible adoption of one of the following alternative resolutions and approve an increase to the City Clerk's FY 06/07 budget by $70,797.80 (continued from the Council meetings of July 17, 2007, Item #50): A. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, repealing Anaheim City Council Resolution No. 2007-053 which approved General Plan Amendment No. 2006- 00448 relating to the land use element of the Anaheim General Plan. OR B. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ordering the submission of a referendum measure to the electors of said City at the general municipal election to be held November 4, 2008. OR C. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a special municipal election to be held on Tuesday, June 3, 2008, for the submission to the voters of the City of Anaheim of a referendum measure relating to Anaheim City Council Resolution No. 2007-053 approving Anaheim General Plan Amendment No. 2006-00448; and requesting the Board of Supervisors of the County of Orange to consolidate said election with the statewide primary election to be held on that same date pursuant to Section 10403 of the Elections Code of the State of California. OR D. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a special municipal election to be held on Tuesday, February 5, 2008, for the submission to the voters of the City of Anaheim of a referendum measure relating to Anaheim City Council Resolution No. 2007-053 approving Anaheim General Plan Amendment No. 2006-00448; and requesting the Baard of Supervisors of the County of Orange to consolidate said election with the statewide primary election to be held on that same date pursuant to Section 10403 of the Elections Code of the State of California. OR July 31, 2007 -Page 13 E. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a special municipal election to be held on Tuesday, 200_, for the submission to the voters of the City of Anaheim of a referendum measure relating to Anaheim City Council Resolution No. 2007-053 approving Anaheim General Plan Amendment No. 2006-00448. In the event the City Council adopts Resolution B, C, D or E above, it is recommended that the City Council also adopt the following two additional resolutions relating to authorizing ballot arguments, preparation of an impartial analysis by the City Attorney, and rebuttal arguments for said election. F. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, setting priorities for filing written arguments regarding a referendum measure to be submitted to the electors of the City at the (special) (general) municipal election to be held in said City on , 200_, and directing the City Attorney to prepare an impartial analysis of such referendum measure. G. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, providing for the filing of rebuttal arguments for a referendum measure submitted to the electors of the city at the (general) (special) municipal election to be held in said city on , 200 Council Member Galloway announced a note had been received from Elfend and Associates requesting additional time and she moved to continue this item until August 21, 2007, seconded by Council Member Kring. Mayor Pringle responded Council had voted to continue this item for the past two weeks hoping the two parties would negotiate a resolution and he was not made aware of any results occurring from that process. He indicated he was prepared to make a decision today and move forward with either rescinding the previous zoning change or setting a date for an election rather than continue the item at the request of one individual when a significant number of referendum/initiative petitioners and public commenters had requested this issue be placed on the ballot. Council Member Kring announced she had been made aware that Suncal and Disney representatives had negotiated and generated a confidentiality agreement to which Council was not privy. She added she had been told the principals had met and were moving forward but needed additional time and she hoped by continuing the decision, the principals could come to a compromise and there would be no need for a costly election. Mayor Pringle clarified that some months ago he and Council Member Sidhu had proposed a compromise as it was their goal to avoid the divisiveness surrounding this issue. He discussed the process as it had occurred over that period of time and its resulting cost to the City. He added that by continuing a decision to August 21St, options to get the initiative on the February ballot could be lost and it was his opinion that both the referendum and the initiative should be placed on the first available election to allow the residents to make a decision on both items and move on. Council Member Sidhu believed there were two choices available, to either repeal the action already taken on the zoning and to have Suncal and Disney's new compromise plan submitted for Council to make the decision on what development would be best for the City or to schedule an July 31, 2007 -Page 14 election date. He made a substitute motion to approve Option A, Resolution of the City Council repealing Council Resolution No. 2007-053 which approved General Plan Amendment No. 2006- 00448 relating to the land use element of the Anaheim General Plan, seconded by Mayor Pringle. Roll Call Vote: Ayes - 2: Mayor Pringle, Council Member Sidhu. Noes - 3; Council Members: Galloway, Hernandez and Kring. Motion Failed. On the earlier motion made by Council Member Galloway to continue this item to the meeting of August 21, 2007 and seconded by Council Member Kring, the following votes were cast. Roll Call vote: Ayes - 3: Council Members: Galloway, Hernandez and Kring. Noes - 2: Mayor Pringle and Council Member Sidhu. Motion Carried. By vote of the City Council, this item was continued to August 21, 2007. PUBLIC HEARINGS: 27. CEQA NEGATIVE DECLARATION C410 GENERAL PLAN AMENDMENT NO. 2007-00459 AGENT: Planning Department, City of Anaheim, 200 South Anaheim Blvd, Anaheim, CA 92805 LOCATION: PARCEL A: 2000 South State College Boulevard: This triangle-shaped .07-acre property is located in the City of Orange and has a frontage of 26 feet on the north side of Orangewood Avenue, a maximum depth of 350 feet and is located approximately 480 feet east of the centerline of Rampart Street and is further described as 2000 South State College Boulevard- Anaheim Stadium Parking Lot. PARCEL B: 2337 South Manchester Avenue: This rectangular-shaped 394 square foot parcel is located in the City of Orange and is a landlocked parcel with a maximum depth of 26 feet and located 172 feet north of Compton Avenue and is within an existing mobile home park. General Plan Amendment No. 2007-00459 -City-initiated amendment to the City of Anaheim General Plan to redesignate Parcel A from the Open Space to the Mixed Use Land Use designation and to designate Parcel B for Medium Density Residential in the City of Anaheim in order to facilitate two boundary line adjustments between the City of Orange and the City of Anaheim. ACTION TAKEN BY THE PLANNING COMMISSION: Negative Declaration approved (6 yes votes, Commissioner Velasquez absent). Recommended Council approval of General Plan Amendment No. 2007-00459 (PC2007- 61). Reclassification No. 2007-00203 granted (PC2007-62). Reclassification No. 2007-00204 granted (PC2007-63). (Planning Commission meeting of June 25, 2007) MOTION: K/G CEQA NEGATIVE DECLARATION. RESOLUTION NO. 2007-134 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving General Plan Amendment No. 2007 00459, pertaining to the Land Use Element. Sheri Vander Dussen, Planning, Director, reported these actions were being requested to accommodate a proposed boundary reorganization for the City. On June 25th, the Planning Commission recommended approval of this general plan amendment and approved two July 31, 2007 -Page 15 reclassifications that were initiated by staff. These requests, she explained, would provide land use designations and pre-zoning for two parcels proposed to be annexed from the city of Orange to the City of Anaheim. The Local Agency Formation Commission (LAFCO) required the application to be completed prior to considering the annexation application. Parcel A, she noted, was owned by the City of Anaheim and was located in the City of Orange. It was developed with a driveway serving the Angel Stadium parking lot. The Orange and Anaheim general plans presently designated the parcel for open space land uses and Ms. Vander Dussen indicated the site was proposed to be redesignated for mixed use and zoned public recreation with the Platinum Triangle Mixed Use Overlay consistent with the existing land use designation and zoning on the remainder of the parking lot. Parcel B was also located in the city of Orange and was vacant under the same ownership of the adjacent mobile home park located in the City of Anaheim and was a remnant parcel created as a result of the Santa Ana Freeway widening and the realignment of Manchester Avenue. Ms. Vander Dussen added the city of Orange general plan presently designated Parcel B for low medium density residential uses and was proposed to be designated for medium density residential and zoned transition consistent with land use designation and zoning with the contiguous mobile home park. She ended her presentation stating staff recommended approval of this request in order to submit the application to LAFCO pointing out annexation of these parcels would resolve minor boundaries discrepancies between the two cities. Mayor Pringle opened the hearing for public comment. With no speakers participating, the hearing was closed. Council Member Kring moved to approve CEQA Negative Declaration and to approve Resolution No. 2007-134 of the City Council approving General Plan Amendment No. 2007-00459 pertaining to the Land Use Element, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. Report on Closed Session Actions: None Council Communications: Council Member Hernandez remarked on a poor sportsmanship incident occurring during a recent Angel's game, apologizing to Mike Piazza. Council Member Galloway spoke of her appreciation of the City Manager's Office staff. Council Member Kring requested reports on the history of scoreboards at park ball fields and the need expressed for one at Boysen Park as well as requests for street lights, specifically at Lomita and Claridge. She also offered an invitation to the community on open Mosque Day on August 19tH extended from the Islamic Society of Orange County and reported on her attendance at the 2007 Scattergood conference in San Antonio. Council Member Sidhu requested a report on environmentally friendly asphalt. He commented on the student visitors from Mito, Japan, on Employee Appreciation Day at City Hall and benefits received by attending the Housing Authority Housing Fair. Mayor Pringle reported on the Great Race finish of vintage era cars that left North Carolina on June 30th and ended in downtown Anaheim on July 14th. He also saluted Marcie Edwards and the July 31, 2007 -Page 16 Public Utilities Department on receiving the 2007 Scattergood Award, a national public power association which recognized Anaheim for its extraordinary service. Adjournment: At 7:17 P.M., Mayor Pringle adjourned the July 31S` meeting. Respectf submitted, Linda Nguyen, City Cle