1993/03/09City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9~ 1993 - 5:00 P.M.
The City Council of the City of Anaheim met in regular session.
PRESENT:
ABSENT:
PRESENT:
COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly
COUNCIL MEMBERS: None
CITY MANAGER: James Ruth
CITY ATTORNEY: Jack White
CITY CLERK: Leonora N. Sohl
UTILITIES GENERAL MANAGER: Edward Aghjayan
UTILITIES FIN~NCIAL SERVICES MANAGER: Michael Bell
ASST. GENERAL MANAGEMENT WATER SRVS. & WAREHOUSE: Edward Alario
EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich
A complete copy of the agenda for the meeting of the Anaheim City Council was
posted at 1:50 p.m. on March 5, 1993 at the Civic Center kiosk, containing all
items as shown herein.
Mayor Daly called the meeting to order at 3:00 p.m.
REQUEST FOR CLOSED SESSION: City Attorney Jack White requested a Closed
Session to consider the following items:
a. To confer with its attorney regarding pending litigation pursuant to
Government Code Section 54956.9(a) to wit:
Golden West Baseball Co. vs. City of Anaheim, Orange County
Superior Court Case No. 40-92-46; Anaheim Stadium Associates vs.
City of Anaheim, et. al., Orange County Superior Court Case No.
44-81-74.
Gonzalez vs. Seymanek, et al, Orange County Superior Court Case
No. 66-43-93.
b. To meet with and give directions to its authorized representative
regarding labor relations matters - Government Code Section 54957.6.
c. To consider and take possible action upon personnel matters pursuant
to Government Code Section 54957.
d. To confer with its attorney regarding potential litigation pursuant
to Government Code Section 54956.9 (b)(1).
e. To consider and take possible action upon such other matters as are
orally announced by the City Attorney, City Manager or City Council
prior to such recess unless the motion to recess indicates any of the
matters will not be considered in closed session.
By general Consent, the Council recessed into Closed Session. (3:00 p.m.)
AFTER RECESS: The Mayor called the meeting to order, all Council Members
being present, and welcomed those in attendance to the Council meeting.
(5:08 p.m.).
INVOCATION: Mary L. Hibbard, Anaheim United Methodist Church, gave the
invocation.
FLAG SALUTE: Council Member Fred Hunter led the assembly in the Pledge of
Allegiance to the Flag.
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119: PROCLAMATIONS: The following proclamations were issued by Mayor Daly
and authorized by the City Council:
Red Cross Month in Anaheim, March, 1993
Hire the Older Worker Week in Anaheim, March 14-20, 1993
Mr. Steven Chavez accepted the Red Cross Month proclamation and Mel Miller and
George MacLaren accepted the Hire the Older Worker proclamation.
119: INTRODUCTION - MISS ANAHEIM, 1993 - STACI LEHMAN: Mrs. Earleen Jones,
Director, formally introduced Staci Lehman, Miss Anaheim, 1993 to the Council.
Ms. Lehman explained that she was born and raised in Anaheim as was her
father. It is an honor for her to represent the City. Her basic platform is
enthusiasm for education. She is also a ventriloquist and presently performs
in classrooms. She has found that children relate to puppets. She offered
her services to the City's schools.
Mayor Daly and Council Members greeted and congratulated Ms. Lehman on having
won the title of Miss Anaheim. She was presented with roses. Mayor Daly
stated it was a great year to be Miss Anaheim with the many events that will
be taking place including the opening of the Anaheim Arena in June.
FINANCIAL DEMANDS AGAINST THE CITY in the amount of $13,985,454.74 for the
period ending March 5, 1993, in accordance with the 1992-93 Budget, were
approved.
Mayor Daly recessed the City Council meeting until after the Redevelopment
Agency and Housing Authority meetings. (5:20 p.m.)
Mayor Daly reconvened the City Council meeting. (5:22 p.m.)
PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on City Council
Agenda items.
ITEMS OF PUBLIC INTEREST: No items of public interest were addressed.
MOTION: Council Member Daly moved to waive reading in full of all ordinances
and resolutions to be acted upon for the Council meeting of March 9, 1993.
Council Member Simpson seconded the motion. MOTION CARRIED.
CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member
Pickler, seconded by Council Member Daly, the following items were approved in
accordance with the reports, certifications and recommendations furnished each
Council Member and as listed on the Consent Calendar; Council Member Daly
offered Resolution Nos. 93R-41 through 93R-46, both inclusive, for adoption.
Council Member Daly offered Ordinance No. 5358 for adoption. Refer to
Resolution/Ordinance Book.
Al. 118: The following claims were filed against the City and action taken
as recommended:
Claims rejected and referred to Risk Management:
a. Claim submitted by Jesus Garcia for property damage sustained
purportedly due to actions of the City on or about December 13, 1992.
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b. Claim submitted by Phillip Castillo for property damage sustained
purportedly due to actions of the City on or about January 15, 1993.
c. Claim submitted by Curtis Warner, c/o Jeffrey A. Milman, for bodily
injury sustained purportedly due to actions of the City on or about
December 23, 1992.
d. Claim submitted by Elias Escobar, c/o Roberto A. Bohm, for bodily
injury sustained purportedly due to actions of the City on or about
November 17, 1992.
e. Claim submitted by William Vinovich for property damage sustained
purportedly due to actions of the City on or about January 17, 1993.
f. Claim submitted by Norwood B. Smith for property damage sustained
purportedly due to actions of the City on or about October 24, 1992.
g. Claim submitted by Doris Rodriguez, c/o Brian I. Vogel, for bodily
injury sustained purportedly due to actions of the City on or about
November 14, 1992.
h. Claim submitted by Michelle Olson for bodily injury and property damage
sustained purportedly due to actions of the City on or about November 6,
1992.
i. Claim submitted by Yolanda Rios for property damage sustained
purportedly due to actions of the City on or about October 27, 1992.
j. Claim submitted by Audrey Cherep for property damage sustained
purportedly due to actions of the City on or about December 7, 1992.
k. Claim submitted by David A. Currie, c/o Daniel A. Nassie, for indemnity
sustained purportedly due to actions of the City on or about March 13,
1992.
1. Claim submitted by Joyce R. Little for bodily injury and property
damage sustained purportedly due to actions of the City on or about
August 3, 1992.
A2. 156: Receiving and filing the Anaheim Police Department Crime and
Clearance Analysis for the month of January, 1993.
105: Receiving and filing minutes of the Anaheim Public Library Board meeting
held January 27, 1993.
105: Receiving and filing minutes of the Anaheim Park and Recreation
Commission meeting held January 27, 1993.
105: Receiving and filing minutes of the Golf Advisory Commission meeting
held January 27, 1993.
A3. 123: Approving an Agreement with Blash Momeny for Tentative Tract Map
No. 14130 and authorizing the Mayor and City Clerk to execute same.
A4. 160: Accepting the bid of Heli-Turbine, Iht'l, in the amount of $38,000
for one 250-C20B Mini-Turbine for Police Helicopter Nl1082 in accordance with
Bid ~5132.
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A5. 113: RESOLUTION NO. 93R-41: A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN
100 DAYS OLD. (Erasure of Voice Recording Tapes #262 through #353 - Public
Utilities Department, Systems Operations Division.)
A6. 155: Approving a Mitigated Negative Declaration pursuant to CEQA
guidelines for the construction of the Lenain Filtration Plant Modifications
project.
Mrs. Law, 6587 E. Circulo Dali, Anaheim. She has received a letter from the
project engineer of the Lenain Plant. She is concerned about noise emissions.
The Oak Canyon Nature Center is a natural amphitheater between the dam where
the filtration plant will be located and the surrounding homes and there is
nothing to impede the sound. The residents are all exposed to a great deal
more noise than what the construction people might be aware of. The existing
noise in the canyon is not just from construction equipment but also from
noise that people make. Anaheim does not have a strong noise abatement
program. She feels they need to get stronger noise abatement laws including
strict start and stop times for construction. The Council needs to direct
both the maintenance yard and the site supervisor for the Lenain Plant to work
with his employees to control human noise and early starts. She heard noise
starting at 5:50 this morning. She hopes part of the Lenain Plant would
include a sign regarding start and stop times and noise before and after
working hours and that the noise abatement officer for the City monitor the
noise they create. It would make it much more pleasant to live with for a
year and a half.
Mayor Daly. He asked the City Manager to explore what kind of contractual
conditions they can place on whoever is going to do the work at the Lenain
Plant.
A7. 153: RESOLUTION NO. 93R-42: A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM AMENDING RESOLUTION NO. 91R-125 WHICH ESTABLISHED RATES OF
COMPENSATION FOR UNREPRESENTED PART-TIME CLASSIFICATIONS. (To expand the
salary range for the Unrepresented Part-time classification of Administration
Intern from two steps to six steps, and to create four new part-time
classifications of Engineering Intern I, Engineering Intern II, Engineering
Intern III and Stadium Grounds Worker in the Unrepresented Part-time Unit.)
153: RESOLUTION NO. 93R-43: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RESOLUTION NO. 91R-49 WHICH ESTABLISHED RATES OF COMPENSATION
FOR CLASSES ASSIGNED TO THE GENERAL UNIT REPRESENTED BY THE ANAHEIM MUNICIPAL
EMPLOYEES ASSOCIATION. (To create the two new classifications of Lead Stadium
Groundskeeper and Stadium Groundskeeper.)
153: RESOLUTION NO. 93R-44: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RESOLUTION NO. 92R-21 WHICH ESTABLISHED RATES OF COMPENSATION
FOR CLASSES DESIGNATED AS MIDDLE MANAGEMENT. (To create the one new
classification of Neighborhood Development Coordinator.)
Council Member Feldhaus. He asked if there is another middle management
position being replaced by the establishment of this new position.
City Manager Ruth. The position has been vacant almost a year due to
long-term disability. There is no indication when that person will return.
It has been a major impact on the work load. Should that person return to
work, there will be some reorganization and downgrading of the position in the
future. The work load is horrendous and he reiterated they have been doing
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without that position for almost a year. There will be some cost savings in
downgrading the position and they will try to generate other savings in the
organization during that period of time to fund it.
A8. 123: Authorizing the Data Processing Director to extend agreements for
contract programming and/or consulting services through June 30, 1993 with
John Cappelletti Associates, Harte Enterprises, International Management
Systems Corp., and Sizemore Computer Services; and amending the "not-to-exceed
$500,000" wording to read "not-to-exceed $750,000" for each of the contracts.
A9. 107: ORDINANCE NO. 5358 - ADOPTION: AN ORDINANCE OF THE CITY OF ANAHEIM
AMENDING SECTION 7.44.010 BY ADDING SECTION 7.44.015, 7.44.030, 7.44.040,
7.44.050 AND 7.44.060, INCLUSIVE, TO CHAPTER 7.44 OF TITLE 7 OF THE ANAHEIM
MUNICIPAL CODE RELATING TO GRAFFITI. (Introduced at the meeting of March 2,
1993, Item A19.)
Council Member Pickler. He is going to ask that this be made an emergency
ordinance and is taking the initiative to do so. He thereupon moved that
there be a separate vote by the Council to make the subject ordinance an
urgency ordinance.
Council Member Daly seconded the motion.
Before further action was taken, the City Attorney stated he does not have an
urgency ordinance for the Council to consider tonight. He clarified for
Council Member Pickler that he can have it prepared for next week. He
suggested that the Council act on the ordinance on the agenda and if Council
wants to direct him by motion to prepare an urgency ordinance for next week he
can do so.
It was determined by General Consensus that the City Attorney be directed to
prepare an urgency ordinance to be submitted at the Council meeting of
March 16, 1993 for Council consideration and action; City Attorney White noted
for the Council that it will also require a 4/5ths vote for adoption.
Al0. 184: Reviewing the need for continuing the Proclamation of the
Existence of a Local Emergency issued by the Director of Emergency Services on
January 19, 1993, and ratified by the City Council on January 26, 1993,
concerning the Santiago Landslide and Pegasus Landslide in the City of
Anaheim; and taking no action to terminate the local emergency at this time.
All. 175: Certifying that the adoption of the Electric Rates, Rules, and
Regulations, and Water Rates, Rules, and Regulations are statutorily exempt,
under the California Environmental Quality Act.
Adopting a resolution amending rates, rules and regulations for the sale and
distribution of electricity.
RESOLUTION NO. 93R-46: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF
ELECTRICITY AS ADOPTED BY RESOLUTION NO. 71R-478 AND MOST RECENTLY AMENDED BY
RESOLUTION NO. 92R-25.
RESOLUTION NO. 93R-45: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF
WATER AS ADOPTED BY RESOLUTION NO. 72R-600 AND MOST RECENTLY AMENDED BY
RESOLUTION NO. 91R-337.
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175: Authorizing and directing the Public Utilities General Manager to
prepare, promulgate, publish and implement changes to Electric and Water
Rates, Rules, and Regulations, effective March 24, 1993, with the exception of
the changes to the electric industrial GS-2 customers which would be effective
April 1, 1993.
This item was removed from the Consent Calendar and discussed separately upon
motion by Council Member Daly seconded by Council Member Simpson. MOTION
CARRIED.
See discussion and action taken on this item after the Consent Calendar.
A12. 174: Amending the 1992/93 FY Budget to reflect the CDBG final statement
amounts by increasing revenues and expenditures in 235-102 by $500; increasing
revenues and expenditures in 235-208 by $5,000; increasing revenues and
expenditures in 235-213 by $257,125; increasing revenues and expenditures in
235-309 by $5,418; increasing revenues and expenditures in 235-411 by
$2,152,290; increasing revenues and expenditures in 235-412 by $80,653;
increasing revenues and expenditures in 235-418 by $15,204; and reducing
revenues and expenditures in 235-521 by $500,000.
Al3. 114: Approving minutes of the Anaheim City Council meeting held
January 26, 1993.
Roll Call Vote on Resolution Nos. 93R-41 throuqh 93R-44, both inclusive, for
adoption~
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Feldhaus, Hunter, Pickler, Simpson, Daly
None
None
The Mayor declared Resolution Nos. 93R-41 through 93R-44, both inclusive, duly
passed and adopted.
Roll Call Vote on Ordinance No. 5358 for adoption=
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Feldhaus, Hunter, Pickler, Simpson, Daly
None
None
The Mayor declared Ordinance No. 5358 duly passed and adopted.
~ OF CONSENT CALENDAR. MOTIONS CARRIED.
175: AMENDMENT TO ELECTRIC AND WATER RATES, RULES AND REGULATIONS: Submitted
was report dated March 9, 1993 from Edward K. Aghjayan, Secretary Public
Utilities Board (and Public Utilities General Manager) recommending the
following:
(1) That the City Council, by Resolution, amend the
Rates, Rules and Regulations for the sale and
distribution of electricity as adopted by
Resolution No. 71R-478 and most recently amended by
Resolution No. 92R-25. Although staff continues to
recommend the original proposal, the next best
option, in staff's opinion, is Alternative #3.
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(2) That the City Council, by Resolution, amend the
Rates, Rules and Regulations for the sale and
distribution of water as adopted by Resolution No.
72R-600 and most recently amended by Resolution No.
91R-337. Although staff continues to recommend the
original proposal, the next best option, in staff's
opinion, is Alternative ~3.
Also recommended are additional actions, (1) certifying that the adoption of
the Electric Rates, Rules and Regulations and adoption of the Water Rates,
Rules and Regulations are statutorily exempt, under the California
Environmental Quality Act, (2) authorizing and directing the Public Utilities
General Manager to prepare, promulgate, publish and implement changes to
Electric and Water Rates, Rules and Regulations to be effective March 24,
1993, with the exception of the changes to the electric industrial GS-2
customers which would be effective April l, 1993. Changes shall be consistent
with the direction of the Council and shall be filed with the City Clerk prior
to the effective date for inclusion in the records.
The following people spoke to the subject:
Roland Krueger, 561 Peralta Hills Drive, Anaheim. (Also see minutes of
February 2 and February 9, 1993 where Mr. Krueger gave input regarding utility
rates.) Relative to water rates, he is concerned that even though the Council
asked staff to come back with a fairer proposal, he sees only that there are
several alternative plans for the rate schedule mostly shifting percentages
between different classes of users. No consideration at all has been given to
the two tier proposal in the residential rate structure which, as he has
stated previously, he feels is unfair and discriminatory. He again reviewed
his concerns with the present structure and recommended the following
regarding water rates:
That the two-tier charges in the residential rates
structure be eliminated and that the conservation rebate
and "give away" programs that the City has presently also
be eliminated since he feels they are unnecessary at this
time. The latter would permit a drop in the overall
increase of revenues needed from 4.95% to 3.1%. If the
Council chooses not to use any of the cost cuts talked
about at previous meetings, he is suggesting the adoption
of Alternative $4 in the staff proposal. This would apply
to the 3.1% rate increase instead of the current plan of
4.95% and it would be an across-the-board increase for all
classes of customers. It will be the fairest and
distribute the pain amongst everybody instead of only a
small group.
Jeff Kirsch, 2661 W. Palais, Anaheim. (Also see minutes of February 9, 1993
where Mr. Kirsch gave input on utility rates). Relative to water, he agrees
with taking another look at the rebate program if it would save a significant
rate increase. The data states it would be funded with debt if it were
continued but did not say what kind of debt. If it is just pushing an
unpleasant problem into the future, he would like to see the program
eliminated. He prefers Alternative $3 which has some moderation in all
classes but makes up for the existing severe imbalance in residential water
rates.
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Relative to electrical, he would like to see the lowest residential rates but
he would be more comfortable with just a better explanation of how the numbers
came to be. Also funding the undergrounding program with short-term debt is
not explained. He prefers assessment districts for undergrounding instead of
spreading those costs across all rate payers. Also, if there is a greater
understanding about marginal cost, perhaps that could be shared with the
public before the Council votes. Before concluding, he referred to the notice
received by the Metropolitan Water District (MWD) regarding a rate hearing to
be held soon where the district is proposing a standby charge. He recommends
that City staff attend that meeting in the interest of the citizens.
Mayor Daly. The proposed MWD rate increase is an item he is going to ask be
addressed by staff. It is a proposed MWD parcel charge which he believes is
scheduled for adoption July 1, 1993. Notice was given via a small postcard
sent to property owners which explained the process and proposed rates.
Robert Knapp, 1025 S. Lemon, Anaheim. He took issue with the claims that the
City's electric rates are 15 to 20 percent below Southern California Edison.
He referred to a report by the United State Census Bureau showing the average
bill in Anaheim is 23~ percent higher based on 750 kw hours per month. For
commercial users, it is even worse. Relative to water rates, he agrees with
what has been said - that the two-tier system is unfair. Asking for an
increase of any kind particularly in electric is not well-founded.
Doctor William Kott. (Also see minutes of February 2 and February 9, 1993,
where Dr. Kott gave input regarding Utility rates.) He first questioned why
the proposed alternatives were not first brought before the Public Utilities
Board and also if the proposal would require another hearing since rates are
different than what was previously proposed.
City Attorney White answered that an additional public hearing was not
required; Mayor Daly noted that of the alternatives presented, none proposed
were higher than those proposed previously.
Doctor Kott. An increase is still being proposed and the Utilities General
Manager is merely presenting different ways of getting to that end. The
effort should be made toward not having an increase at all. He feels if the
current General Manager cannot do that, then the City should get one who can.
Bob Kazarian, 1463 Westmount Drive, Anaheim, Chairman of the Public Utilities
Board. He has heard a lot of information and misinformation. Many cost
increases are beyond their control or the control of anybody in the City. An
example relates to Federal Regulations which require more in-depth testing of
water causing the extensive remodeling of the Lenain Filtration Plant because
the rules have been drastically tightened on water quality. Further, they may
be asked to spend 25 million dollars to rectify a problem that is nonexistent
in California (he explained the details). Relative to undergrounding, it was
looked at 8 or 9 years ago but at the time it was felt the cost was too high.
If done at that time, they would have been a long way into the undergrounding
process. The undergrounding program was embraced by the Council and the City
and nobody objected to it when it was approved. Also, they approved a
purchase of a 10 percent interest in a power plant in the Four Corners area
(San Juan 4) and although it will cost money today, over the life of the
plant, it will save many millions of dollars for the City. Although it is a
very difficult time for the City's residents and businesses, they cannot look
just at today only. Another component of the cost increase is the utilities
bonding capacity and their bond ratings. The Anaheim Utilities Department has
an excellent bond rating. It is necessary to put more money in the reserve
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fund because they bought a power plant in order to maintain the bond rating.
They could let the bond rating slip, but later on it will cost many millions
of dollars. The Public Utilities Board did approve the higher rate increase
because they were not looking only at today but at the future as well. No one
likes rate increases or higher taxes, but they are necessary. It is a very
moderate rate increase, and not as great as some people who have spoken would
lead them to believe.
william Halus, 5075 E. Crescent Drive, Anaheim. He lives in Peralta Hills
where they used to get their water from a water company until some years ago
when they started receiving water from the City. His water bill in 1991 was
$792.54. Water is very expensive, however, the earth is a water planet and
water can be recycled. He then submitted letters with his
suggestions/recommendations on how he believes water problems in the Southern
California area could be solved forever (letter submitted and made a part of
the record).
Phil Knypstra. (Also see minutes of February 2, 1993 where Mr. Knypstra gave
input on utility rates.) Having done his homework and analysis relative to
water rates, he believes there is no justification based on fact for an
increase in the water rates for residential but has every bit of evidence to
support an increase in the industrial and commercial rates since those rates
are the lowest in the Orange County Water District and probably the entire
Metropolitan Water District service area. He questioned how they could be
satisfied with any one of the proposals presented unless they know the
individual rates for fixed charges and variable charges. He believes they are
never going to reconcile the differences between the different rate structures
until they go to what he calls a level pricing system where everybody pays the
same amount of money for a gallon of water. For some reason, the Public
Utilities Board cannot accept that concept because they are so hung up on
cost-of-service which is no longer valid. He would select an alternative that
would not raise residential water rates, but would on commercial.
Alternative #3 is a moderation but leaves a very regressive schedule. It is,
however, moving in the right direction but does not get to the level pricing
system. Ultimately they are going to go progressive.
Fares Batarseh, 3005 Via Sienna, Anaheim. He has no problem with rate hikes.
Three percent is not that much money. One of the Utilities Board Member was
quoted as saying there is so much money in reserves they do not know what to
do with it. He would like an answer to that from staff. Also, two Council
Members were elected on the promise of repealing the Utility Users' Tax. The
Utility Tax should be repealed before any new rate increases.
Nancy Vanderpol, 119 Peralta Hills Drive, Anaheim. She is disputing the water
rate increase because it discriminates against homeowners who have slopes and
trees and those who want to protect their property during fire season. Those
alone should preclude the residential split being proposed with two-tier
rates. She agrees with the increase, but they should all be sharing it. She
does not see how they can discriminate with one resident over another over a
life sustaining substance such as water. Water conservation cannot be an
issue because conservation was achieved by 30% without any rebates. What
Mr. Krueger said about eliminating rebates is a good one.
Fredrick Palmieri, 110 S. Strada, Anaheim. (Also see minutes of February 2,
1993 where Mr. Palmieri gave input on Utility rates.) He referred to his
letter of March 5, 1993 already sent to the Council. Before raising any
taxes, it is necessary to balance the budget and make cuts just as with the
Federal Government. Relative to undergrounding, this is a time when everyone
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is hurting. It is a time to conserve spending and perhaps delay
undergrounding. The water rate increase is a de facto tax on large properties
who it is surmised can afford to pay the increase. On behalf of himself, his
family and many other people who live in Peralta Hills, they cannot afford a
tax increase anymore than anyone else. It is a time to conserve and delay
public improvements. If a tax increase has to occur, it should be an
across-the-board increase.
Mayor Daly. This is an appropriate time to hear from staff. He requested
first that in the future years when such proposals are considered, that water
and electric rates be heard as separate items. They can be on the same agenda
but considered separately.
Ed Alario, Assistant General Manager Water Services. He first addressed the
proposed standby charge by MWD. Last year a $5 per parcel charge was adopted
or if larger than an acre $5 an acre. This year they are proposing an
additional $3.55 for Anaheim residents. The maximum is $8.55. It is a tax
imposed by the MWD and is beyond the control of the City. The monies are to
be used for capital projects.
Ed Aghjayan. The MWD has the power and ability to recover revenue from two
sources unlike the City's Utilities Department which recover revenues from
rates. MWD can do it by rates or assessments. Some years they have done it
both ways. It has been more of a trend lately to recover from their rates.
Mike Bell, Financial Services Manager, Public Utilities Department. He first
addressed some of the comments and questions raised. Relative to the two-tier
water rate structure, which in the opinion of some is a discriminatory rate
structure toward large users, the issue was explored thoroughly when the
package was reviewed with the Public Utilities Board. What they see, and this
was part of the testimony of Mr. Knypstra, the large users are getting quite a
bargain compared to smaller users who pay a fixed charge. Staff suggested a
two tier package that sets the second tier at 37 units of consumption. That
will have a negative effect on less than 10 percent of the residential rate
payers. There are many ways to deal with the issue and this was staff's
suggestion. He then addressed the Utility's rate structure compared to
Edison's, the undergrounding program and the rate increases needed to fund the
program. He subsequently showed slides (hard copies of the majority of the
slide shown were submitted to the Council and made a part of the record). The
slides showed the department's electric proposal, department's water proposal,
electric rate alternatives listing alternatives 1 through 5, original funding
and alternate funding, electric rate alternatives compared to Edison, water
rate alternatives, adoption of electric/water rates. Mr. Bell briefed the
data contained in each of the sheets shown in the slide presentation.
Alternatives 3 through 5 under electric rate alternatives provide for
continuing undergrounding; however, funding that program through the issuance
of short-term debt rather than increasing rates by 1 percent. In the future,
rates will need to be adjusted in order to pay for the program plus pay for
the debt incurred to keep that program going. Under those alternatives
(Alternative $3) they were able to lower the rate request amongst each of the
classes. The reason why from staff's standpoint Alternate $3 is preferable,
comparing the alternatives with Edison rates, Anaheim's industrial rates are
now slightly higher than those of Edison and a major concern of staff. To the
extent that they increase or provide for any increases to that class, there is
going to be less of a competitive relationship between Anaheim and Edison
which makes it more difficult in their business retention efforts and efforts
to attract new business to Anaheim. Depending on how much of an increase is
allocated to the industrial class, that problem potentially becomes worse.
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City Hall, Anaheim~ California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
Relative to the water proposals, five alternates have also been provided. The
first to call for the initial funding proposed and the 4.95 percent rate
change. Alternatives 3 through 5 provide for a lower rate increase or 3.1
percent. They have removed the one-half million dollar cost of the ultra-low
flush toilet program and will bring that program back independently to the
Council for review and consideration outside of the whole process. They are
confident they can sell that program which is one of the best in terms of
avoiding high cost water proposals from MWD. They have varied the amount
distributed between the residential class and the commercial-industrial
classes anywhere from 3.1 percent across the board to a 2.6 percent decrease.
Given the two tier structure when looking at the alternatives, residential
rate payers would actually see from a 7 percent decrease in rates to about a
l0 percent increase. The increase is less than l0 percent of the customers
that fall above that break point.
In concluding, he stated that any of the proposals will fund the adopted
budget. If modified and adopted with alternatives that are lower, it will
modify the budget so that those costs are removed. Any of the proposals will
meet that criteria. It will keep the department in compliance with all bond
covenants and financial obligations. They do have several covenants which
require them to maintain rates and charges that provide for adequate debt
service coverage on existing bonds and provide for their ability to maintain
their timely payments of all debts. Any of the proposals they believe will
maintain their good credit ratings. He cannot stress strongly enough how
important those strong debt ratings are.
Council Member Simpson asked Mr. Bell why there is a two-tier system in water
- is it for purposes of conservation to discourage the use of water by high
end users as opposed to low end.
Mike Bell. They do not presently have a two-tier system. They are proposing
lowering their fixed customer charge and then creating a tier out beyond
37 units that is slightly higher to make up for those differences. The main
reason is the small users on the system compared to rates in many other cities
in Orange County or Southern California that pay proportionally a much greater
share than those in other cities. If it is a discriminatory rate structure,
it is discriminatory toward the small user who can do very little with those
fixed charges. Conservation is a secondary reason for this type of rate
structure. The primary reason is to try and move more of what they are
collecting from the small user on an average cost basis to the large user.
The question becomes how fast and how much. What they are proposing for that
last block is not a major change in rates. The very highest users, a very
small number on the system, would see about a 10 percent increase at the most
with this type of structure. He confirmed that relative to electrical, there
is no two-tier system.
council Member Simpson. He noted that Mr. Knapp used 750 kw hours as a base
comparison and when comparing Anaheim's system on this usage, that Anaheim was
higher than most cities in Orange County; Mr. Bell answered that is not
correct. Staff can get together with Mr. Knapp and go over all the figures
but that is not the case.
Roland Krueger. He took issue with the statement made by Mr. Bell that the
water rates structure is not primarily for water conservation and quoted from
the document submitted wherein it states, "it sends a price signal to these
consumers to conserve water".
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City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
Ed Aghjayan. Conservation is still very important. The primary reason for
recommending the two-tier structure, it is currently unfair to the small user
and average user and even those that use more than average. Their rates are
among the highest in the County, whereas the large residential users are much
fairer. The point Mr. Bell is making, they are being accused of
discriminatory rates now to the small users and the two-tier structure is a
way of addressing that. Ninety percent of their current customers under
Alternative $3 as proposed would actually experience a decrease in their water
bill and not an increase.
MOTION: Council Member Simpson moved to certify that the adoption of the
electric rates, rules and regulations and water rates, rules and regulations
are statutorily exempt under the California Environmental Quality Act.
Council Member Pickler seconded the motion. MOTION CARRIED.
Council Member Daly offered Resolution No. 93R-45 for adoption, amending
rates, rules and regulations for the sale and distribution of water as adopted
by Resolution No. 72R-600 and most recently amended by Resolution No. 91R-337
- Alternative $3 which calls for zero percent average increase in residential
rates, 3.6 percent increase in multi-family residential and a 7.3 percent
increase in commercial and industrial for system wide increase of 3.1 percent.
Refer to Resolution Book.
RESOLUTION NO. 93R-45: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF
WATER AS ADOPTED BY RESOLUTION NO. 72R-600 AND MOST RECENTLY AMENDED BY
RESOLUTION NO. 91R-337.
Before action was taken, Mayor Daly explained he offered the resolution for
purposes of discussion. Alternative $3 reflects rates which are 1.85 percent
lower than the proposal brought to the Council 5 weeks ago. It deletes from
the budget at this time the rebate program for low-flush toilets which will be
handled as a separate future item to be funded from revenues outside of this
rate increase. They have not had the results of the program nor a full
discussion on how it is working.
Ed Aghjayan. They feel the program needs a full hearing. They made a full
hour presentation before the Public Utilities Board. If at the time the
Council hears it they do not like it, they can eliminate the program. If they
like it, there will be a funding alternative which will not be in the proposed
rate increase.
Mayor Daly. It is fair to say that Alternative $3 which for the coming year
proposes a zero percent increase for single-family residential begins moving
toward a more level playing field in water rates. Staff has heard loud and
clear that Council wants to continue to move in that direction because they
are sensitive and concerned. He is concerned that single-family water users
in Anaheim pay slightly higher water prices than some surrounding cities.
Anaheim's is a great system and he believes they invest more in their water
system than surrounding cities.
A vote was then taken on the foregoing resolution as offered by Council Member
Daly.
Roll Call Vote on Resolution No. 93R-45 for adoption:
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Feldhaus, Pickler, Simpson, Daly
Hunter
None
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C£t¥ Hallr Anahe£mr Cal£forn£a - COUNCIL MINUTES - 14ARCH 9, 1993 - 5:00 P.M.
The Mayor declared Resolution No. 93R-45 duly passed and adopted.
Council Member Hunter. His no vote is for any increases across the board.
Council Member Feldhaus. Offered a resolution adopting Alternative #4 on
electric rates giving all classes a proportionate share, a one percent
increase across all classes. He would prefer zero percent for residential but
it is not one of the alternatives.
Before further action was taken, Council Member Pickler spoke against
Alternative #4. The Council in 1982 established a process whereby a citizens
group was formed working with the Public Utilities Department to come back to
the Council with a plan that would accomplish undergrounding. He feels it is
imperative that they maintain their undergrounding program. He prefers
Alternative #2 (2.0 percent increase in residential, 3.5 percent in
commercial, 1.0 percent in industrial) as opposed to Alternative #4 because 94
eliminates revenues for undergrounding, something the City has been waiting
for for a long time.
Ed Aghjayan. He confirmed for the Mayor that relative to undergrounding, if
the 1.0 percent increase for that program is not approved that they are
prepared to go out on the short-term money market to get 5 or 6 million
dollars. They could put in another 2 million and fund this years program to
keep the program alive at the current level. The negative part is that
eventually it is necessary to pay for the borrowing and also it means that
next year in January when they present the new 5 year program, they would be
going from 1 percent to 3 percent. Every year they will bring the Council up
to date on the undergrounding program. The current 5 year program totals
45 million dollars.
MOTION: Council Member Hunter moved that relative to electric rates that
Alternative #4 be adopted but amended so that there is a zero percent increase
in residential rates (zero percent residential, 1.0 percent commercial,
1.0 percent industrial). Council Member Feldhaus seconded the motion.
Before a vote was taken, Council Member Hunter explained as Mr. Palmieri
stated, he feels they should hold the line for a while and reactivate the
undergrounding program later. Residential customers were hit hard last summer
with big utility rates because of the hot weather. He reiterated it is time
to hold the line on residential rates. Many of the people who fall under
commercial and industrial do not live in the City.
Council Member Pickler stated that they also had to pay for the San Juan 4
Power Plant that would keep electric rates low in the future.
Mayor Daly asked staff to speak to the proposal by Council Member Hunter, that
of adopting Alternative #4 for a 1.0 percent system wide increase with the
exception that residential rates would be at zero percent.
Ed Aghjayan. The problem with the proposed alternative, they would lose that
much revenue for the residential class and unless it was spread to the other
classes to absorb that amount of revenue, they would lose the total amount of
the increase. It would not solve the problem unless industrial is increased
to 1.4 or 1.5 percent or an increase in commercial. Somewhere the 1 percent
from residential would have to be spread to the other classes in order to make
up for the lost revenue. They are willing to live with Alternative #4 as
amended if that is where the Council wants to go. One option is, when they
come back with the targeted savings, that they may want to credit some of it
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City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
to residential as well as industrial and go ahead with one of these
alternatives. The loss in revenue is $500,000. They will somehow have to
make it up somewhere. They need to put closure to the matter. They are
preparing to refinance and they want to go back to New York and tell the
rating agencies that the increase has been approved by the Council. Nothing
is served by continuing the proposed increases any longer.
Council Member Simpson. He would suggest that the 1 percent (taken from
residential) be spread equally between commercial and industrial if the
Council agrees. He also would very much like to move on.
City Attorney White. The motion on the floor is to amend the resolution which
is Alternate #4 to provide for a zero percent increase in residential and to
spread the necessary increase to commercial and industrial equally to get to a
total of 1 percent overall.
Council Member Hunter amended his motion, amending the resolution to provide
for a zero percent increase in residential and spreading the necessary
increase to commercial and industrial equally to get to a total of 1.0 percent
overall. Council Member Feldhaus agreed in his second. MOTION CARRIED
UNANIMOUSLY.
Council Member Hunter offered Resolution No. 93R-46 for adoption, amending
rates, rules and regulations for the sale and distribution of electricity as
adopted by Resolution No. 71R-478 and most recently amended by Resolution
No. 92R-25 - amended as Alternative #4A for a zero percent increase in
residential rates and spreading the one percent to commercial and industrial
equally. Refer to Resolution Book.
RESOLUTION NO. 93R-46: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AMENDING RATES, RULES AND REGULATIONS FOR THE SALE AND DISTRIBUTION OF
ELECTRICITY AS ADOPTED BY RESOLUTION NO. 71R-478 AND MOST RECENTLY AMENDED BY
RESOLUTION NO. 92R-25.
Before a vote was taken, Council Member Pickler wanted to be sure that
undergrounding will not be eliminated.
Ed Aghjayan. He answered it would not be eliminated and it will continue
until they bring it back to the Council in September or October and at that
time the Council will need to make a decision on funding of the program and at
what level for the next five years. Because they are going to be doing
short-term borrowing for the two million dollars needed at this time, it will
allow for the current program to move forward.
Council Member Simpson. 'If two of his colleagues will agree, he is requesting
of Mr. Aghjayan, (1) that they move away from a two-tier system in water for
residential in particular and, (2) that they not bring rate increases for
water and electrical to the Council at the same time.
By General Consensus of a majority of the Council, the Council agreed with
Council Member Simpson's recommendations.
A vote was then taken on the resolution offered by Council Member Hunter
amending the rates, rules and regulations for the sale and distribution of
electricity including Alternative #4 as amended, now 4A - 0.0 percent increase
for residential with the 1.0 percent as proposed to be spread between
commercial and industrial.
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City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
Roll Call Vote on Resolution No. 93R-46 for adoption:
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Feldhaus, Hunter, Pickler, Simpson, Daly
None
None
The Mayor declared Resolution No. 93R-46 duly passed and adopted.
MOTION: Council Member Pickler moved to authorize and direct the Public
Utilities General Manager to prepare, promulgate, publish and implement
changes to Electric and Water Rates, Rules, and Regulations, effective
March 24, 1993, with the exception of the changes to the electric industrial
GS-2 customers which would be effective April 1, 1993. Council Member Simpson
seconded the motion. MOTION CARRIED.
Mayor Daly. Before concluding, he would ask that the public participate as
the Council considers the City budget since they will again be considering the
water and electrical budgets in June and at least once each year will be
considering the 5 year plan for undergrounding. There will be many future
opportunities to look at the rates and the equity issues that have been
raised. Further, if citizens have strong feelings about the Metropolitan
Water District increases scheduled for July 1, he urged that those be
communicated directly to MWD. One additional request of staff, he does not
feel that electric or water rate increases should be on the Consent Calendar
in the future, but that there should be separate hearings on those items.
D1. 174: PUBLIC HEARING - NINETEENTH YEAR (1993-1994) COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROGRAM AND BUDGET:
Approving the fiscal year 1993-1994 CDBG Program and Budget, in the
amount of $3,455,000 as recommended by the Communitywide CDBG Citizen
Participation Committee. This matter was continued from the meeting of
February 23, 1993 to this date.
Submitted was report dated February 17, 1993, asking for a continuance of the
subject public hearing from February 23, 1993 to this date since the U.S.
Department of Housing and Urban Development notified staff that the
entitlement amount for Fiscal Year 1993/94 represents a significant increase
of $855,000 thus necessitating reconvening the Communitywide CDB Citizen
Participation Committee to develop allocation recommendations for the
additional monies.
City Manager James Ruth announced that staff is requesting an additional
continuance of the subject public hearing to Tuesday, April 6, 1993.
MOTION: Council Member Simpson moved to continue the public hearing on the
Nineteenth Year CDBG Program and Budget to Tuesday, April 6, 1993. Council
Member Pickler seconded the motion. MOTION CARRIED.
D2. 179: PUBLIC HEARING - WAIVER OF CODE REQUIREMENT, CONDITIONAL USE PERMIT
NO. 3563 AND MITIGATED NEGATIVE DECLARATION:
OWNER: M.E. Johnson, 1214 W. Katella, Anaheim, CA 92802
AGENT: Robert W. Kent, 16315 Oaktree Circle, Chino Hills, CA 91709
LOCATION/REQUEST: The property is located at 511-520 South Manchester
Avenue and 500-520 South Walnut Street and is approximately 2.1 acres
located at the southwest corner of Manchester Avenue and Santa Ana
Street. The request is to retain an auto repair, towing and dismantling
facility (including the storage and retail sale of used auto parts) and
a proposed 768-square foot office building and a shop canopy with waiver
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City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
of required improvement of parking and outdoor storage area, maximum
structural height adjacent to residential zones, minimum structural
setback, improvement of required setback areas and permitted
encroachments into required yards.
ACTION TAKEN BY THE PLANNING COMMISSION:
CUP NO. 3563 DENIED (PC93-11) (6 yes votes, 1 vacancy).
Waiver of code requirement DENIED.
Denied Mitigated Negative Declaration.
HEARING SBT ON: A letter of appeal was submitted by the Agent, Robert W. Kent
and public hearing scheduled this date.
PUBLIC NOTICE REQUIREMENTS MET BY:
Publication in Anaheim Bulletin - February 25, 1993
Mailing to property owners within 300 feet - February 25, 1993
Posting of property - February 26, 1993
Letter dated February 24, 1993 was received from the applicant Robert W. Kent
requesting a continuance of the hearing to April 6, 1993.
Mayor Daly asked if anyone was present regarding the subject public hearing;
no one was present.
Council Member Simpson moved to continue the public hearing on Conditional Use
Permit No. 3563 to Tuesday, April 6, 1993 as requested. Council Member
Pickler seconded the motion. MOTION CARRIED.
ITEMS B1 - B4 FROM THE ZONING ADMINISTRATOR MEETING OF FEBRUARY 18, 1993~
DECISION DATEs FEBRUARY 25, 1993 INFORMATION ONLY - APPEAL PERIOD ENDS
MARCH 12, 1993:
B1. 179: CONDITIONAL USE PERMIT NO. 3578 AND NEGATIVE DECLARATION:
OWNER: Vipin Goel, 24992 Largo Drive, Laguna Hills, CA 92652
AGENT: Rene F. Gonzalez, 895 S. Euclid Street, Anaheim, CA 92802
LOCATION: 895 South Euclid Street. Property is approximately .37 acre
located at the northwest corner of Euclid Street and Beacon Avenue.
To permit on-sale beer and wine in an existing restaurant with waiver of
minimum number of parking spaces.
ACTION TAKEN BY THE ZONING ADMINISTRATOR:
CUP NO. 3578 APPROVED with modified conditions (Decision No. ZA93-14).
Approved Negative Declaration.
B2. 179: CONDITIONAL USE PERMIT NO. 3577 AND NEGATIVE DECLARATION:
OWNER: Alpine Development, 13702 Holt Avenue, Santa ana, CA 92705
AGENT: Robert Hicks, 4331 Nestle Street, Cypress, Ca 90630
LOCATION: 404 North State College Boulevard. Property is approximately
0.51 acre, having frontage of approximately 117 feet on the east side of
state College Boulevard, with a maximum depth of approximately 190 feet
and being located approximately 380 feet south of the centerline of
Sycamore Street (Poor Bob's).
To retain a 2,550 square foot cocktail lounge with on-premise sale and
consumption of alcohol with waiver of minimum number of parking spaces
(59 parking spaces required; and 28 spaces existing).
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City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
ACTION TAKEN BY THE ZONING ADMINISTRATOR:
CUP NO. 3577 DENIED, business located in high crime area as described by
Alcoholic Beverage Control; existing use has adversely impacted
neighborhood; testimony by officer indicated no food was noted in
establishment and existing use is for restaurant and on-sale alcohol
(Decision No. ZA93-15).
Approved Negative Declaration.
The decision of the Zoning Administrator was appealed by the applicant and,
therefore, a public hearing is scheduled for April 6, 1993.
B3. 179: CONDITIONAL USE PERMIT NO. 3587 AND NEGATIVE DECLARATION:
OWNER: Euclid Shopping Center/General Partnership, 2293 West Ball Road,
Anaheim, CA 92804
AGENT: Art Rodriguez, 211 West Almeda Avenue, Suite 101, Burbank, CA
91502
LOCATION: 1612 West Katella Avenue (Euclid Shopping Center). Property
is approximately 18.6 acre located at the southeast corner of Katella
Avenue and Euclid Street, having approximate frontages of 1,350 feet on
the south side of Katella Avenue and 600 feet of the east side of
Katella Avenue.
To permit on-premise sales and consumption of beer and wine in
conjunction with a restaurant.
ACTION TA/~EN BY THE ZONING ADMINISTRATOR:
CUP NO. 3587 APPROVED, with added Conditions (Decision No. ZA93-16).
Approving Negative Declaration.
B4.
179: VARIANCE NO. 4219, CATEGORICALLY EXEMPT, CLASS 5:
OWNER: Michael Langford, 1255 North Piedmont Drive, Anaheim, CA 92807
LOCATION: 1255 North Piedmont Drive. Property is approximately 0.11
acre, with frontage of approximately 50 feet on the west side of
Piedmont Drive and having maximum depth of approximately 100 feet and
being located approximately 170 feet east of the centerline of
Northfield Avenue.
Waiver of maximum lot coverage (1,750 square feet permitted and 1,945
square feet proposed) to construct a 245 square foot family room
addition.
ACTION TAKEN BY THE ZONING ADMINISTRATOR:
Variance No. 4219 APPROVED (Decision No. ZA 93-17).
END OF THE ZONING ADMINISTRATOR.
B5. 179: ORDINANCE NO. 5359 - ADOPTION: Amending Title 18 to rezone
property under Reclassification No. 66-67-61(107) located at northwest corner
of Katella Avenue and Harbor Boulevard from the CL zone to the C-R zone.
(Introduced at the meeting of March 2, 1993.)
Council Member Daly offered Ordinance No. 5359 for adoption. Refer to
Ordinance Book.
ORDINANCE NO. 5359: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING
MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING.
(Reclassification No. 66-67-61(107) located at northwest corner of Katella
Avenue and Harbor Boulevard from the CL zone to the C-R zone.)
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City Hall, Anaheim, California - COUNCIL MINUTES - MARCH 9, 1993 - 5:00 P.M.
Roll Call Vote on Ordinance No. 5359 for adoptions
AYES=
NOES=
ABSENT=
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Feldhaus, Hunter, Pickler, Simpson, Daly
None
None
The Mayor declared Ordinance No. 5359 duly passed and adopted.
Cl. 114: COUNCIL COMMENTS - SISTER CITY COMMITTEE - TRIP TO MITO, JAPAN -
MAY, 1993:
Council Member Feldhaus. On May 12, 1993, the Sister City contingent is going
to Anaheim's Sister City - Mito, Japan. He would hope that members of the
Council will be able to go as well. He and his wife are going and it has been
suggested that if no one else is going that the Council consider making him
Mayor Pro Tem temporarily in order to represent the City while there because
of Japanese protocol.
Mayor Daly. He suggested that Council Member Feldhaus work with the City
Attorney on some appropriate title change for the purposes of the trip.
ADJOURNMENT: By General Consent the Council adjourned. (7:30 p.m.)
LEONORA N. SOHL, CITY CLERK
177