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11-10-1998 Council MinutesAPPROVED BY THE CITY COUNCIL ON NOVEMBER 24, 1998 CITY COUNCIL MINUTES ORANGE, CALIFORNIA OF A REGULAR MEETING November 10, 1998 The City Council ofthe City of Orange, California convened on November 10, 1998 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 4:30 P.M. SESSION 1. OPENING 1.1 INVOCATION Ms. Maureen McLaren, Assistance League of Orange 1.2 PLEDGE OF ALLEGIANCE TO THE FLAG Led by Councilman Spurgeon 1.3 ROLL CALL PRESENT - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy 1. 4PRESENTATIONS/ ANNOUNCEMENTS/ PROCLAMATIONS Resolution No. 9033 was presented to Raul P. Ramirez of the Public Works Department expressing appreciation for more than 17 years of loyal and dedicated service.Bob Marlow, representing Mothers Against Drunk Driving (MADD), and Interim Police Chief Romero, presented Deuce Awards to the following Orange Police Officers: Officer Ken Adams, Officer Dung Nguyen, Officer Randy Houston, Officer Scott Barrett, and Officer Dave Pasino. Mr. Marlow stated that Orange County is one of the safest places in the country when it comes to drunk driving. Mr. Marlow invited Council and the public to attend the MADD Annual Law Enforcement recognition luncheon on November 19,1998 from 12:30 p.m. to 3:30 p.m. at the Nixon Library in Yorba Linda.The Superintendent of Leisure Services recognized staff members, sponsors and committee members for the successful "Trick or Treat through the Streets" event held on October 29, 1998 in which over 8,000 people attended. Staff members recognized were:Pam Doss, Dave Ramirez, Dave Benton, Bob Green, John Loertscher, and Jan McGovney. Council presented plaques to: Mary and Al Ricci, Dennis Michael, Carol and Jim Cox, Gail Alden, and Lisa Blanc.Mayor Coontz announced the Council will adjourn the 7:00 p.m. session in memory of a 32 year City of Orange employee Frank Ruiz, Community Services Field Maintenance Supervisor. PAGE 1 CITY COUNCIL MINUTES November 10, 1998 1.4 PRESENTATIONS/ ANNOUNCEMENTS/ PROCLAMATIONS (Continued) The Interim Police Chief, on behalf of the City of Orange Police Officers' Association, presented awards to the following: Reserve Officer of the Year - Oscar Montano; Officer of the Year - Derek Cook; Civilian Employee of the Year - Marilyn Evans; and Supervisor of the Year - Captain Gustafson.Mayor Coontz announced today is the birthday of the Marine Corps.The City Council recessed at 5:05 p.m. to a reception to honor the above employees and reconvened at 5 :28 p.m.2.PUBLIC COMMENTS Tape 890 Carole Walters, (address on file), requested the recycle bin charge be removed from the utility bill and that the issue be agendized. Appreciation was expressed to the police officers at the sobriety checkpoints in the City. Ms. Walters announced Orange Emblem Club No. 418 will sponsor a charity breakfast for the House of Hope on Sunday,November 15th from 8: 30 a.m. to 12:00 noon.Mary Hill, 2557 N. Crestwood, commented her wood fence, patio and plants have been damaged or destroyed due to the City's failure to properly maintain the flood channel located directly behind her back yard. Her neighbor, Mr. Milhouse, has also been affected. Numerous calls have been made to the City for three years. The City has indicated they would eliminate the ivy and maintain the property and channel. When is the City going to take care of this matter?The Director of Public Works responded a letter was received from Mr. Milhouse last week, which was the first time the matter came to his attention. The Street Sanitation Division has been given direction to contact the neighbors affected and resolve the problem, to the extent the City is responsible for damage. There is a long-standing heavy growth of vegetation along the channel. The issue will be resolved as soon as possible.The City Manager indicated to Ms. Hill the City will be in contact with her.Barbara DeNiro, (address on file), commented the Vietnam War Memorial Wall will be displayed at Knott' s Berry Farm on Veterans Day, November 11th. Was the agreement approved with U. S. Health Works at the October 27th meeting with a new group or a group the City had used previously? The City Manager indicated he believed it was a name change. The City Manager responded either the Personnel Director or his staff will contact Ms. DeNiro on Monday to respond to her question.Cindy Groom, 303 E. Everett, thanked Council again for the parking permit program she requested and wanted to let Orange citizens know that if they come to Council with a legitimate problem, there is an answer.PAGE 2 CITY COUNCIL MINUTES November 10, 1998 3. PUBLIC COMMENTS (Continued) Norm Phillips, 348 Redwood, brought to Council's attention that the City of Stanton allows five (5) minutes to speak under Oral Comments. Mr. Phillips read a sentence from the Brown Act, referring to his repeated request to agendize the cable franchise fee. Where does it say that he cannot have his request placed on the agenda? Mr. Phillips again asked that his request be agendized for the Council to vote on. The City Attorney responded the City's Administrative Policy Manual provides the two methods for items to be agendized are either through the City Manager or through the City Council. 3.CONSENT CALENDAR Tape 1333 3.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council agenda of a regular meeting of November 10, 1998 at Orange Civic Center, Taft Branch Library at 740 E. Taft Avenue, Police facility at 1107 North Batavia, the Eisenhower Park Bulletin Board, and summarized on Time- Warner Communications, all of said locations being in the City of Orange and freely accessible to members of the public at least 72 hours before commencement of said regular meeting.ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a public record in the Office of the City Clerk.3.2 Request Council Confirmation of warrant registers dated October 22 and 29, 1998.ACTION: Approved.3.3 Request approval of City Council Minutes, Regular Meeting, October 27, 1998.ACTION: Approved.3.4 Consideration to waive reading in full of all ordinances on the Agenda.ACTION: Approved. AGREEMENTS 3.5 Project No. 3243 - Agreement with Kabbara Engineering for Hewes Street realignment and widening from Bond Avenue to Santiago Canyon Road. (A2100.0 AGR- 3147)SUMMARY: This agreement authorizes the consultant for field survey, preparation of plans, specifications, cost estimates, legal descriptions and right-of-way plans for Hewes Street from Bond Avenue to Santiago Canyon CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) ACTION: Approved agreement in the amount of $53,480 with Kabbara Engineering and authorized the Mayor and City Clerk to execute on behalf of the City. FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and available in Account No. 285-5011-483300-3243 $148,100 ( TSIP Area "C").3.6 Project D-130 - Agreement with Merit Civil Engineering for the Community Development Block Grant Storm Drain Construction projects:Walnut Avenue Storm Drain from Lemon Street to Glassell Street Glassell Street Storm Drain from Walnut Avenue to Lomita Avenue ( A2100.0 AGR-3146)SUMMARY: This contract authorizes the consultant for field surveying, geotechnical investigation, and preparation of plans, specifications and cost estimates for the Walnut Avenue and Glassell Street CDBG Storm Drain projects.ACTION: Approved an agreement with Merit Civil Engineering, Inc. in an amount not to exceed $39,974.00 and authorized the Mayor and City Clerk to execute on behalf of the City.FISCAL IMP ACT: Funds are budgeted in the Capital Improvement Program and available in the following accounts: 310-9645-483400-5107 ( Detail No. 16128)310-9645-483400- 5107 (Detail No. 16129)313,500 ( Walnut/Glassell Storm Drain)196,800 (Glassell Street Storm Drain)3.7 Approval of SecondAmendment to Consultant Agreement for Plaza Renovation.A2100.0 AGR-2962. 2)SUMMARY: Approve Second Amendment to consultant agreement between the City and CathcartlBegin Associates, Inc., in the amount of $58,435 for additional services related to architectural, civil, electrical engineering and project coordination of the Plaza Renovation.FISCAL IMP ACT: Funds are budgetedin FY 98/ 99 in the following account: 500-7021-485100-9875: $58,435 (Plaza Renovation). NOTE: Councilman Alvarez CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) Discussion: Barbara DeNiro, (address on file) asked what the total cost has been? What was the initial agreement cost? Was this additional work asked for by the City? The Director of Community/Library Services responded the scope and magnitude of the project has expanded overall. The initial cost for the conceptual design was $15,000. Carole Walters, (address on file), as a Plaza Committee member, announced a community meeting on the Plaza will be held on Tuesday, November 17th at 6:30 p.m. at the Senior Center. ACTION:Approved agreement and authorized execution on behalf ofthe City. BIDS 3.8 Contract Change Order No.2 for Project W-578, Bid No. 978-12, Water Line Relocations and Improvements in conjunction with the Caltrans I- 5/Segment A-2 Freeway Widening. (A2100.0 AGR-2922)SUMMARY: A contract in the amount of $219,000 was awarded to Steve Casada Construction Company December 3, 1997, for the Water Line Relocations and Improvements in conjunction with the Caltrans I-5/Segment A-2 Freeway Widening.Contract Change Order No. 1 provided for a contract extension to continue work into the adjacent Caltrans I-5/Segment A-4 project and for additional costs of construction in the A-2 Segment. Contract Change Order No.2 is for additional costs of construction in the A-4 Segment due to unforeseen conflicts and field changes.ACTION: ApprovedContract Change Order No.2 in the amount of $9,625.50 to Steve Casada Construction Company for additional unforeseen work required to complete the project.FISCAL IMPACT: Sufficient funds for this project are available in Account No. 601-8041-484501-8320, Pipeline improvements, I-5 Freeway.The State is liable for expenses for existing facilities that are lawfully maintained in their present location and qualify for relocation under the provisions of Section 703 of the Street and Highway Code.3.9 CLAIMS FOR DAMAGES FROM:a. Tonya Pinkowski ( C3200.0) CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) CONTRACTS REMOVED AND HEARD SEPARATELY) 3.10 Mills Act Contract # MAC-01.0-98, (Historic Property Preservation Agreement).A2100. 0 AGR-3154)SUMMARY: A proposal to approve Mills Act Contract for a single family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term ofthis contract totals $27,000.FISCAL IMPACT: The estimated property tax loss to the City is in the range of $270 to 370 per year.NOTE: Comments were heard onItem Nos. 3.10 - 3.16 at this time. Mayor pro tern Slater abstained on this item due to a property he has in escrow within 300 feet of the site.Carole Walters, (address on file), requested the Mills Act Contract items be continued;expressed concern that Old Towne Preservation Association was more aware of the program than other Orange residents; and said there should be a public meeting explaining the Mills Act and how to apply for the program. The Director of Community Development responded there has been knowledge of the program in the community due to the extensive process of approving the program. One group of individuals has been very interested in the program, followed it through the entire process, and waited in line to submit their application after the program was approved. The pilot program is limited to ten applicants. In addition to the ten applicants, several other individuals have expressed interest in the program.In response to Mayor Coontz, the Director of Community Development indicated a report will be brought back to Council in January or February. At that time, information will have been received from the County Assessor's office relative to what the tax savings will be. The City Manager indicated once Council has received the report, at Council's direction, a meeting could be held to educate more people on the program.Fred Gillett, 205 E. Palmyra, commented numerous meetings have been held with an open forum to discuss the Mills Act. He urged Council not to postpone the contract approval process.Barbara DeNiro, (address on file), asked who provided the maintenance figures on the applications? Do we add new properties and how often? Do they need to be owner occupied? Is there a conflict of interest if Mayor pro tem Slater sold any of the properties? Who is the inspector? Concern was expressed that some homes are in the area where Chapman is trying to take the houses. CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) The Director of Community Development explained the worksheet attached to the agenda items, indicating some items requested were not Council's policy direction for the program, i.e. fences and landscaping. Work items requiring building permits will be inspected by the Building Division, and require meeting the same standards of the Uniform Building Code and any other Uniform Code required. There are no restrictions on who occupies the units. The criteria for the program is defined in Council's policy and in the Mills Act. MOTION SECOND AYES ABSTAIN ABSENT Mayor Coontz Alvarez Mayor Coontz, Spurgeon, Alvarez Slater Murphy ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City.REMOVED AND HEARD SEPARATELY)3.11 Mills Act Contract # MAC-02.0-98, (History Property Preservation Agreement).A2100. 0 AGR-3153) SUMMARY: A proposal to approve Mills Act Contract for a single family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term of this contract totals $75,500. FISCAL IMPACT: The estimated property tax loss to the City is in the range of $270 to 320 per year. NOTE: Councilman Alvarez abstained on this item due to his office located at 360 S. Glassell being within 300 feet ofthe site. MOTION SECOND AYES ABSTAIN ABSENT Slater Spurgeon Slater, Mayor Coontz, Spurgeon Alvarez Murphy ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City.PAGE 7 CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEPARATELY) 3.12 Mills Act Contract # MAC-03.0-98, (Historic Property Preservation Agreement).A2100. 0 AGR-3152)SUMMARY: A proposal to approve Mills Act Contract for a single family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term of this contract totals $30,500.FISCAL IMP ACT: The estimated property tax loss to the City is in the range of $250 to 320 per year.NOTE: Mayor pro tern Slater abstained on this item due to a property he has in escrow within 300 feet ofthe site. MOTION SECOND AYES ABSTAIN ABSENT Spurgeon Alvarez Mayor Coontz, Spurgeon, Alvarez Slater Murphy ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City. REMOVED AND HEARD SEPARATELY)3. 13 Mills Act Contract # MAC-04.0-98, (Historic Property Preservation Agreement).A2100.0 AGR-3151)SUMMARY: A proposal to approve Mills Act Contract for a single family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term of this contract total $ 13,000.FISCAL IMPACT: The estimated property tax loss to the City is in the range of $ 270 to 370 per year. MOTION SECOND AYES ABSTAIN ABSENT Spurgeon Mayor Coontz Mayor Coontz, Spurgeon, Alvarez Slater Murphy ACTION: Moved to continue to the November 24, 1998 meeting.PAGE 8 CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) REMOVED AND HEARD SEPARATELY) 3.14 Mills Act Contract # MAC-05.0-98, (Historic Property Preservation Agreement).A2100. 0 AGR-3150)SUMMARY: A proposal to approve Mills Act Contract for a single family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term ofthis contract total $55,400.FISCAL IMP ACT: The estimated property tax loss to the City is in the range of $270 to 370 per year.NOTE: Mayor pro tem Slater abstained on this item due to a property he has in escrow within 300 feet of the site. MOTION SECOND AYES ABSTAIN ABSENT Mayor Coontz Alvarez Mayor Coontz, Spurgeon, Alvarez Slater Murphy ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City. REMOVED AND HEARD SEPARATELY)3. 15 Mills Act Contract # MAC-07.0-98, (Historic Property Preservation Agreement).A2100.0 AGR-3149)SUMMARY: A proposal to approve Mills Act Contract for a single family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term ofthis contract total $ 46,300.FISCAL IMPACT: The estimated property tax loss to the City is in the range of $ 270 to 370 per year.NOTE: Mayor pro tem Slater abstained on this item as he sold the applicant the property. CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) MOTION SECOND AYES ABSTAIN ABSENT Mayor Coontz Alvarez Mayor Coontz, Spurgeon, Alvarez Slater Murphy ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City.REMOVED AND HEARD SEP ARATEL Y)3.16 Mills Act Contract # MAC-08.0-98, (Historic Property Preservation Agreement).A2100.0 AGR-3148)SUMMARY: A proposal to approve Mills Act Contract for a multi-family, historic residence within the Old Towne Orange Historic District. Estimated costs associated with the repair, rehabilitation and maintenance performed by the owner for the (minimum 10 year) term ofthis contract total $38,600. FISCAL IMP ACT: The estimated property tax loss to the City is in the range of $250 to 320 per year. NOTE: Mayor pro tem Slater abstained on this item because he sold a property within 300 feet ofthe site. MOTION SECOND AYES ABSTAIN ABSENT Alvarez Mayor Coontz Mayor Coontz, Spurgeon, Alvarez Slater Murphy ACTION: Approved and authorized the Mayor and City Clerk to execute on behalf of the City.PARCEL MAP 3. 17 Parcel Map No. 98-198. (C2500.M.16.2)SUMMARY: Parcel Map No. 98-198 creates three parcels at the northeast quadrant of Main Street and Town and Country Road presently developed for residential and commercial uses. ACTION: Approved the recordation of Parcel Map No. 98-198, and accepted dedications of right-of-ways on Main Street and Town and Country Road and easements for sanitary sewer and traffic signal purposes as shown on the parcel map.PAGE CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) FISCAL IMPACT: The developer is dedicating right-of-way for the widening of Main Street and Town and Country Road as required by the Master Plan of Streets and Highways, resulting in significant savings in land acquisition costs for improvement of the public right-of-way.RESOLUTIONS 3.18 RESOLUTION NO. 9031 ( C2500.M.16.1)A Resolution of the City Council of the City of Orange adopting the County of Orange Quality Assurance Plan as required by the California Department of Transportation in order to enable the City to continue receiving State and Federal Local Transportation Funding.ACTION: Approved.3.19 RESOLUTION NO. 9034 (A2100.0 AGR-3003)A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement.Bid No. 978-29; SP-3218; Marcus P. South and Associates, Handy Park Renovation.ACTION: Approved.3.20 RESOLUTION NO. 9035 (S4000.S.3.6)A Resolution of the City Council of the City of Orange renaming Justice Center Way west of The City Drive to Shoppertainment Way; and City Parkway East west of The City Drive to Entertainment Avenue.ACTION: Approved.3. 21 RESOLUTION NO. 9036 (A2100.0 AGR-3029)A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 978-38; SP-3218; Sequel Contractors,Inc.; Critical Intersection improvement at CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) 3.22 RESOLUTION NO. 9037 (A2100.0 AGR- 3028)A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 978-33; SP- 3158; All American Asphalt; Critical Intersection improvement at The City Drive and Chapman Avenue.ACTION: Approved.3.23 RESOLUTION NO. 9039 ( A2100.0 AGR-3046)A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Bid No. 978-32; SP-321O; All American Asphalt; The City Drive Widening from Garden Grove Freeway to Dawn Way.ACTION: Approved.3.24 RESOLUTION NO. 9040 (A2100.0 AGR-2922)A Resolution of the City Council of the City of Orange finally accepting the completion of a certain public work and improvement; Project W-578; Bid No. 978-12; Water Line Relocations and Improvements in conjunction with the Caltrans I-5/Segment A-2Freeway Widening.ACTION: Approved.3.25 RESOLUTION NO. 9041 (C2500.H.2)A Resolution of the City Council of the City of Orange declaring weeds a public nuisance and initiating abatement proceedings.ACTION: Approved.SPECIAL EVENT 3.26 Time extension for a Special Event Permit at the DoubleTree Hotel. (P1300.0.9)SUMMARY: The DoubleTree Hotel is requesting a time extension on a Special Event Permit that allows a "tent" pavilion in their parking area. This pavilion provides outside area for social events throughout the holiday season.FISCAL IMPACT: None.Discussion: Barbara deBoom, representing the Chamber of Commerce, 531 CITY COUNCIL MINUTES November 10, 1998 3. CONSENT CALENDAR (Continued) ACTION: Approved time extension request through December 20, 1998, subject to conditions presented in the Staff Report. MOTION SECOND AYES ABSENT Slater Mayor Coontz Slater, Mayor Coontz, Spurgeon, Alvarez Murphy Item Nos. 3.10 - 3.16 were removed and heardseparately. Councilman Alvarez abstained on Item Nos. 3.7 and 3.11. Mayor pro tem Slater abstained on Items Nos. 3.10 and 3.12 through 3.16. The remainder of the Consent Calendar was approved as recommended.Councilman Spurgeon requested the City Attorney, Mayor and City Clerk meet prior to the next Council meeting to work out a procedure for Consent Calendar items.END OF CONSENT CALENDAR 4. REPORTS FROM MAYOR COONTZ - None 5.REPORTS FROM COUNCILMEMBERS Tape 2256 5.1 Councilman Alvarez - Consideration of the City Council to look at the business license retroactive payments that are being asked of the Orange County Children's Care Association. (C2500.G.12)Councilman Alvarez reported members of the Orange County Child Care Association are being charged a retroactive annual business license fee and are requesting Council consider waiving the retroactive fee. Mayor Coontz indicated she spoke with the City Manager relative to this issue when Mayor Hotline calls were received.The Finance Director explained after cross referencing information received by the Fire Department and the Department of Social Services, the Finance staff determined that thirteen of the large daycare homes in the City had been licensed since their inception. However, nineteen had not paid for or applied for a business license. This type of business is required to pay a tax in the City of Orange. Large daycare homes are not exempt from paying business taxes by the State of California. Small daycare homes (up to eight children/infants) are exempt from paying business taxes per State law. The small daycare providers have been asked to register with the City Business License Division, on a no fee basis, so they can be provided access to safety related information.All daycare providers who were not licensed were recently sent a notification of the requirement to have a business license. Large daycare providers are required to pay appropriate taxes due including any unpaid taxes for the prior three years. In order not to penalize the businesses, all PAGE 13 CITY COUNCIL MINUTES November 10, 1998 5. REPORTS FROM COUNCILMEMBERS (Continued) late penalties were waived. Payment options have been offered to businesses that have indicated they are not able to financially pay the taxes in one lump sum. The collection efforts are consistent with the collection of all past due business taxes. The City's collection practices have been reviewed by the City Attorney's office and have been determined to be appropriate from a legal perspective. Surrounding cities and cities bordering Orange were contacted and also require that large daycare providers pay a business tax. IN RESPONSE TO COUNCIL QUESTIONS AND CONCERNS: The Finance Director explained large daycare providers need to apply for a conditional use permit. In the orientation process conducted by the local county branch of the State Department of Social Services, large daycare providers are advised they are not exempt from a business tax and it is their responsibility to contact the local jurisdiction. The State also monitors that the provider go through the planning process to obtain the appropriate permits. Mayor Coontz indicated the City should also be providing the information as a back-up. A retroactive charge of a business license fee is a standard practice for all businesses who did not obtain a business license when the business started.The City Attorney informed the Council that unless the City ordinance is amended, the City Council has no jurisdiction to waive the past due business license fees. Council can waive debt only if it is uncollectible and all civil and criminal means to collect the debt have been exhausted.The City Attorney's office has an ethical duty to apply all laws uniformly.The Director of Community Development reported staff can check and report back as to whether the nineteen facilities that have not paid their business license fees have conditional use permits.Due to the unique nature of the application, it may be necessary to have a condition on the conditional use permit requiring a business license tax fee.The City Manager explained one of the goals and objectives in the Council's adopted budget is to emphasize the proper collection of revenues and adhere to and enforce the regulations of the City. Three years of retroactive taxes would be applied to any business in the City. Other professional organizations have expressed their concern about the City's endeavor to try to collect on this same issue. The City's ordinance is in compliance with State law. Past due licenses have become a debt to the City. The City is offering to waive the penalties which would be charged on the retroactive fees.June DeTurk, 2495 N. Terrace View Court, representing licensed family child care providers in the City of Orange and President of Orange County Child Care Association, requested the City:1) exempt childcare providers caring for eight or more children from the City business license;and 2) revoke the retroactive fee requirements.PAGE CITY COUNCIL MINUTES November 10, 1998 5. REPORTS FROM COUNCILMEMBERS (Continued) Tim DeTurk, 2495 N. Terrace View Court, commented that children are being taxed by the City by imposing the business license fee. Carole Walters, (address on file), commented Chapman University did not have a State or business license for thirteen years. Did Chapman University have to pay retroactive fees when it was brought to the City's attention? Ms. Walters asked for a record of Chapman University paying back the fees. Jan Stocking, 5626 Santiago Canyon Road, commented she has been in the daycare business for 30 years. Her complaint is not that large daycare homes should now pay a business license, but that the City never informed them. COUNCIL COMMENTS: Mayor Coontz noted for safety reasons the City needs to know where all of the daycare providers are located. More information needs to come back to Council and agendized at a time when the information is accumulated. It is important to know how long the ordinance has been in effect. Mayor pro tem Slater commented the policy has to be applied consistently for all businesses and that he could not support waiving the fee for one type of business. Councilman Spurgeon commented on the City's obligation to notify and communicate with its citizens. Any profit-making business should be licensed unless they are licensed by the State or County. MOTION SECOND AYES ABSENT Alvarez Spurgeon Slater, Mayor Coontz, Spurgeon, Alvarez Murphy Moved to invite the individuals who spoke at this evening's meeting to join Councilman Alvarez and some key staff people to a meeting at City Hall in the near future and bring this item back to Council at the December 8, 1998 meeting.Mayor Coontz requested the Council be kept apprised of what goes on with the community decisions and discussions.6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None PAGE 15 CITY COUNCIL MINUTES November 10, 1998 7.ADMINISTRATIVE REPORTS Tape 3728 7.1 Appeal by The Mills Corporation of the City Traffic Commission's decision to deny their request to rename Metropolitan Drive between The City Drive and Lewis Street to The Block Drive." (S4000.S.3.6) SUMMARY: On October 14, 1998, the City Traffic Commission denied the request, based on the opposition expressed by the Bergen-Brunswig Corp. who would be impacted by the name change.The Director of Public Works reported the primary objection came from Bergen Brunswig Corporation, one of the three properties having an address on Metropolitan Drive. Subsequent to the Traffic Commission meeting, meetings occurred between representatives of both companies,City staff and the Economic Development Department. The recommended proposal is to use both names for the street, which would address Bergen Brunswig's concerns about costs,identification of their international headquarters facility, and also address the Mills Corporation' s concerns about getting identification for their project. The Police and Fire Departments and the post office have indicated they have no objection to the dual name.In response to concerns expressed by Councilman Alvarez with the numerous street names in the area, the Director of Public Works explained recent action taken on the renaming of streets.Mayor pro tern Slater expressed concern with the street having two names. He asked Mr.Summers, Bergen Brunswig, ifhe would allow all street signs to read The Block and that he keep his own address as Metropolitan Drive?Mayor Coontz asked which name would be on the freeway. The City Manager responded it could be that the off-ramp name does not change remains The City Drive, because it is an access way to a main drive.Larry Summers, Bergen Brunswig Corporation, 4000 Metropolitan Drive, expressed support of the dual name change. Bergen Brunswig is opposed to the elimination of Metropolitan Drive.Their primary concern is the change of address. Their concern with the street sign being changed to The Block Drive would be the inability of customers and suppliers to get to their facility on Metropolitan Drive. They are not concerned with the placement of Metropolitan Drive on the signage, whether it be on the top or the bottom.Barbara deBoom, representing the Chamber of Commerce, 531 E. Chapman, expressed support for the dual name change.Jerry Engen, Vice President of The Mills Corporation, One City Blvd. West, spoke regarding a similar situation of a street name change at the Ontario Mills and their success with Caltrans in getting the off ramp named to provide identification off the freeway. CITY COUNCIL MINUTES November 10, 1998 7. ADMINISTRATIVE REPORTS (Continued) Mayor Coontz asked if the post office agreed verbally or in writing to the dual street name change. The Redevelopment Project Manager responded he spoke with Rick Koffman, Manager of Customer Services at the Orange Post Office. MOTION - Slater SECOND - Mayor Coontz AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved that the agreement worked out between The Mills Corporation and Bergen Brunswig Corporation for the joint naming of Metropolitan Drive to some combination of The Block and Metropolitan Drive be approved and a formal request be made to the Postmaster for their concurrence in writing.7. 2 Request for the installation of speed humps on Shaffer St. between Taft Ave. and Meats Ave. (S4000.S. 6)SUMMARY: This project will provide a long term and effective form of traffic speed control.The project has been processed and developed according to the City's Residential Neighborhood Traffic Management Program.FISCAL IMPACT: The estimated cost for the installation of five (5) speed humps is approximately $15,000 requiring an appropriation from General Fund Unappropriated Reserves into Account 100-5031- 426700 (Other Professional Services).NOTE: Mayor pro tern Slater stated he would not be participating in the discussion on this item as he sold a property on the block this year and stepped down from the dais.The Director of Public Works presented the report.COUNCILMAN SPURGEON ASKED THE FIRE CHIEF FOR THE RECORD: "Are you comfortable with this, with Engine 3 and Rescue 3 having to make numerous calls at all times of the night and using this as a thoroughfare to get out of the station, either one direction or the other. I am for the humps, like 76% of the other people are. I just wanted for the record, because I always defer to safety concerns on something like this as far as our fire apparatus."The Fire Chief responded: "I am willing to try it out. I have some prior experience with the issue. It was presented to me. At first I had concerns whether it was applicable. So I asked a few questions, and based upon the neighborhood that it is in, and on the general feeling, which was overwhelming of the people out there, I am willing to try it. They come out of the station,they go in either direction. Let's try it out and see how it works. I think that they can handle it.In fact, one of the officers that works at the station lives on the street. So if it is going to work or not work, we are going to know it pretty quick."PAGE 17 CITY COUNCIL MINUTES November 10, 1998 7. ADMINISTRATIVE REPORTS (Continued) In response to Council questions, the Director of Public Works explained the humps are approximately 12 feet long with a parabolic cross section. The height is about 3 W' which is lower than the typical speed bumps. Five speeds humps are proposed based on the experience of other jurisdictions. A spacing of approximately 400 feet has to be maintained to assure speeds will not become excessive between the speed humps. If the neighbors wanted the humps removed, it would require the same petition process and would cost at least as much to remove as to install. There will be signage and pavement markings with the installation of the speed humps. SPEAKING IN SUPPORT: Carole Walters, (address on file) Tony Dunn, 1733 N. Shaffer St. Mike Hennessy, 1802 N. Shaffer St. Shawn Robertson, 1818 N. Shaffer St. James Hofer, 1707 N. Shaffer St. Reasons for support relate to public safety issues. MOTION - Spurgeon SECOND - Mayor Coontz AYES -Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy, Slater Approved the installation of five speed humps on Shaffer St. between Taft Ave. and Meats Avenue and appropriated $ 15,000 for the installation of five speed humps from General Fund Unappropriated Reserves into Account No. 100-5031-426700 (Other Professional Services).NOTE: Mayor pro tern Slater returned to the Council dais.8. REPORTS FROM CITY MANAGER Tape 5190 8. 1 Report of costs for City of Orange participation in New Year's Eve event, to be held at The Block at Orange on December 31,1998. (C2500.E)The Assistant to the City Manager briefly outlined three options for the City's participation in the New Year's Eve event at The Block at Orange.Mayor Coontz asked what the City's past policy has been on contractual obligations to the City?The City Manager responded a number of City events are considered City sponsored.PAGE 18 CITY COUNCIL MINUTES November 10, 1998 8. REPORTS FROM CITY MANAGER (Continued) Mayor pro tern Slater commented he has trouble figuring out why the City would consider helping a business conduct a party on New Year's that will obviously do a lot of benefit to The Block. Is this really where the City should be spending its money?" Why is The Block trying to draw the City into their event? How much involvement do they want from the City? The Assistant to the City Manager explained The Mills has indicated they will hold an event whether the City participates or not. They have budgeted approximately $30,000 towards the event and plan to spend it on the cost of entertainment and a ceremonial event which might become an Orange tradition. The Block feels the event would have more draw if the City were a partner with them. Judy Sollee, 821 E. Van Bibber, commented it would be nice for the City to have a policy on City-sponsored events.Juan Pablo Serrano-Nieblas, 224 N. Olive Street, expressed his objection to alcoholic sales on the premises at this event.MOTION - Spurgeon SECOND - Alvarez AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved to continue to the November 24, 1998 meeting with a representative of the Mills Corporation present. 8.2 Update on Manager's trip to the International City Manager's Conference.The City Manager reported on the conference he attended in Orlando, Florida, indicating that it was extremely beneficial.8.3 Request the City Council authorize the Mayor to send a letter to Supervisors'Steiner and Spitzer requesting support for a minimum of $2 million in "Strawberry Field"monies for recreational purposes and to agendize said request for the Board of Supervisors approval. (A2100. 0 AGR-2748)NOTE: Councilman Spurgeon noted he would not be participating on this item due to his position as Chief of Staff for the 4th Supervisory District which has overseen this issue, and for perception reasons, he stepped down from the dais.The City Manager reported the City Council approved the Letter of Agreement with the Board of Supervisors in January, 1997 by a minute order which was guided by a memo from him. The City had received and expended $2.7 million dollars of the "Strawberry Field" funds for the City in the development ofthe McPherson project, which is projected to cost approximately $3.2 PAGE 19 CITY COUNCIL MINUTES November 10, 1998 8. REPORTS FROM CITY MANAGER (Continued) million. It does not appear that the Barham Ranch acquisition is likely to occur, which would have provided 500+ acres of open space adjacent to the City. He believes it is necessary to ask the Board of Supervisors to identify a minimum of $2 million to be allocated to the City of Orange for acquisition and/or improvements/enhancements of other sites within the City. The Council's request of redesignating dollars for specific use in the City of Orange at this time is appropriate since the Supervisors are considering many specific uses. The mitigation of 28.5 acres of open space from the "Strawberry Fields" (Hewes Parcel) is a key issue that cannot be overlooked by the Supervisors as they begin to allocate these proceeds to other projects. The McPherson project only partially mitigates the City's needs. The City Manager commented he has met personally with Supervisors Steiner and Spitzer regarding allocation of proceeds for a specific project and they have been supportive. Whereas it is hopeful that a satisfactory agreement can be reached in terms of a negotiated purchase, the request should not be directly tied to this site or any other site. Mayor Coontz commented this is a trade-off between the benefits the City gave to the Board of Supervisors for the acquisition of the Strawberry Field.Councilman Alvarez asked if narrowing the letter down to acquisition and enhancement of park site would further the City's cause? Is there a time constraint? The City Manager indicated acquisition/improvements/enhancements of park sites or school facilities for recreational purposes was the specific language used in the original Letter of Agreement. It needs to be agendized as soon as possible to be acted upon by the now sitting Board of Supervisors.Barbara DeNiro, (address on file), asked if the 14 acres of open space is the Beazer Homes site?The City Manager said the issue would be addressed as a non-specific site to the Board of Supervisors. The report presented references to the McPherson School site.MOTION - Slater SECOND - Alvarez AYES - Slater, Mayor Coontz, Alvarez ABSENT - Murphy, Spurgeon Moved to request the City Council authorize the Mayor to send a letter to Supervisors Steiner and Spitzer requesting support for a minimum of $2 million in "Strawberry Field" monies for recreational purposes and to agendize said request for the Board of Supervisors approval.NOTE: Councilman Spurgeon returned to the Council dais.PAGE 20 CITY COUNCIL MINUTES November 10, 1998 9.LEGAL AFFAIRS Tape 6639 9.1 ORDINANCE NO. 21-98 (A2500. 0)An Ordinance of the City Council of the City of Orange amending Chapter 5.86 and Sections 5.10.045, 17.04.020, 17.04.038, 17.18.030, 17.18.060, 17.20.030 and 17.20.050 of the City of Orange Municipal Code relating to Sexually Oriented/Adult Businesses.Discussion: The Assistant City Attorney reported that as a result of several judicial decisions that have come down since a comprehensive ordinance regulating sexually oriented/ adult businesses was adopted by Council 2 ~ years ago, and the practical experience the City has learned from cities that have had a similar ordinance, various revisions have been made. Appeals would go to the City Manager and heard by a hearing officer selected by the City Attorney' s office. The hearing officer would make the final decision so that matters would not come to the City Council. Definitions were changed to provide uniformity. The ordinance tightens up some of the development standards required of the businesses.Mayor pro tern Slater asked how the ordinance in place has been working overall? The Assistant City Attorney indicated he is not aware of any business that has been established since the City adopted the ordinance 2 ~ years ago.Barbara DeNiro, (address on file), expressed concern that the public would not be aware of the applications if they are heard before a hearing officer. How did the Touch of Romance go in on Tustin Street with sexually oriented articles? Will that happen again? The City Attorney responded the City was not able to regulate the Touch of Romance as an adult business. There is an area of State law, mainly developed out of case law, which provides if a certain percentage of the business is not used to sell sexually explicit goods, then it would not be considered an adult business.Carolyn Cavecche, 275 N. Shaffer, asked if the only changes to the ordinance are in the floor operation and the hearing officer? Does it weaken what the City has in place now? It is hoped that the hearing officer selected would be willing to go out on a limb to protect the citizens of Orange. The City Attorney indicated a number of changes have been made as a result of judicial decisions. It is more difficult for the City now because there is a more expedited court process.The City continually needs to review the court cases and revise the ordinance accordingly so that the ordinance is less susceptible to attack.Councilman Alvarez asked where the zones are located that allow this use? The Director of Community Development responded uses are allowed in the C-3, M-1 and M-2 (Industrial)zones. The Assistant City Attorney indicated that according to staff, a business would not have the ability to locate within the C-3 at the present time. There is a 1,000 foot minimum distance requirement from residential, schools, and parks. Such businesses could primarily locate in CITY COUNCIL MINUTES November 10, 1998 9. LEGAL AFFAIRS (Continued) MOTION - Spurgeon SECOND- Slater AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT-Murphy Moved that Ordinance No. 21-98 be read by title only and same was set for second reading by the preceding vote. 9.2 ORDINANCE NO. 22-98 (A2500. 0)An Ordinance of the City Council of the City of Orange, amending Sections 17.04. 020,17.04.032, 17.18.030 and 17.18.060 of the Municipal Code of the City of Orange relating to massage establishments.Barbara DeNiro, (address on file), expressed opposition to massage establishments 10 commercial districts.MOTION - Slater SECOND - Spurgeon AYES - Slater, Mayor Coontz, Spurgeon NOES - Alvarez ABSENT - Murphy Moved that Ordinance No. 22-98 be read by title only and same was approved and adopted by the preceding vote. 10.NOTICED HEARINGS: Tape 122 10.1 PROPERTY ACQUISITION BY EMINENT DOMAIN, NORTHWEST CORNER OF CHAPMAN AVENUE AND MAIN STREET:Time set for a noticed hearing on petition by the City of Orange to acquire the following property by eminent domain: northwest corner of Chapman Avenue and Main Street, Assessor's Parcel No. 039-313- 17, Property Owner of Record: Todd I. Schiffman. (C2500.M.14)The Director of Public Works reported that both Item No. 10.1 and 10.2 involve right-of- way acquisitions for theChapman/Main Critical Intersection Project. The proposal is to acquire a 7 foot wide strip of land on Chapman Avenue and a small triangular area on Main Street needed for a transition from the existing roadway width to the widened intersection approach. A temporary construction easement would be acquired to join the new improvements to the private property in order to match the grade of the new widened street with the parking lot.PAGE CITY COUNCIL MINUTES November 10, 1998 10. NOTICED HEARINGS (Continued) RESOLUTION NO. 9030 A Resolution of the City Council of the City of Orange declaring the public interest and necessity of acquiring certain real property located at the northwest corner of Chapman Avenue and Main Street and authorizing the acquisition thereof. MOTION - Spurgeon SECOND - Mayor Coontz AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved that Resolution No. 9030 as introduced, be adopted and same was passed and adopted by the preceding vote.10. 2 PROPERTY ACQUISITION BY EMINENT DOMAIN, 1435-1449 WEST CHAPMAN AVENUE:Time set for a noticed hearing on petition by the City of Orange to acquire the following property by eminent domain: 1435-1449 West Chapman Avenue, Assessor's Parcel No. 039-313-18, Property Owner of Record: Chapman and Main Center, A Partnership. (C2500.M.15) The Director of Public Works reported the proposal is to acquire a 7 foot wide strip ofland along Chapman Avenue and a temporary construction easement for the same purposes as Item No. 10.1. RESOLUTION NO. 9029 A Resolution of the City Council ofthe City of Orange declaring the public interest and necessity of acquiring certain real property located at 1435-1449 West Chapman Avenue and authorizing the acquisition thereof.MOTION - Spurgeon SECOND - Alvarez AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved that Resolution No. 9029 as introduced, be adopted and same was passed and adopted by the preceding vote. PAGE 23 CITY COUNCIL MINUTES November 10, 1998 URGENT ITEM The City Attorney announced the City has reached a settlement with the property owners for the two properties, which occurred after the posting of the agenda. The City will continue with the eminent domain process until the escrow is closed because there is some expedience on the project. MOTION - Spurgeon SECOND - Mayor Coontz AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved that the item arose subsequent to the posting of the agenda and there is an immediate need to take action. MOTION - Spurgeon SECOND - Mayor Coontz AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved to authorize the Mayor and City Clerk to execute escrow papers and related documents concerning the purchase ofthe parcels identified in Resolution Nos. 9029 and 9030, respectively,for the price of $71,662 and $38, 734.11. RECESS TO THE MEETING OF THE ORANGE REDEVELOPMENT AGENCY 12. RECESS TO CLOSED SESSION The City Council recessed at 8:38 p. m. to a Closed Session for the following purposes:a. Conference with Legal Counsel - anticipated litigation. Significant exposure to litigation pursuant to Government Code Section 54956.9(b ) (one potential case). Contract with ORRS b. Conferencewith Legal Counsel pursuant to Government Code Section 54956.9 - existing litigation.City of Orange v. George S. Walker, et aI., Orange County Superior Court Case No. 78 33 77 OCM Litigation City of Orange, et al vs. Alabama Treasurery Advisory Program, et al Los Angeles Superior Court Case No. BC 106461 c. Conference with real property negotiator pursuant to Government Code Section 54956.8.Property: 617 West La Veta, Orange Negotiating Parties: Duker Trust and City Under Negotiation: Price PAGE 24 CITY COUNCIL MINUTES November 10, 1998 12. RECESS TO CLOSED SESSION (Continued) Properties: Negotiating Parties: Under Negotiation: 637 West LaVeta and 492 South Orange, Orange Woody, Levy and City Price and terms of payment d. 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. MOTION SECOND AYES ABSENT Slater Spurgeon Slater, Mayor Coontz, Spurgeon, Alvarez Murphy Moved that the following matter arose after the posting of the agenda and there is a need to take immediate action.MOTION SECOND AYES ABSENT Slater Spurgeon Slater, Mayor Coontz, Spurgeon, Alvarez Murphy Moved to consider the following case: City of Orange vs. KPMG Peat Marwick, Orange County Superior Court Case No. 187943.The City Council reconvened from Closed Session at 9:40 p.m.7:00 P.M. SESSION 13. PUBLIC COMMENTS - None 14.PUBLIC HEARINGS Tape 400 14.1 ORDINANCE AMENDMENT NO. 3-98, CITY OF ORANGE:Time set for a public hearing on petition by the City of Orange to consider a proposal to amend Section 17.18.030 of the Orange Municipal Code to allow schools by a conditional use permit in the office professional and commercial districts. (A2500.0 AMD-3-98)NOTE: Negative Declaration 1581-98 was prepared to evaluate the environmental impacts of this project.The Director of Community Development presented the report. In response to Mayor Coontz, he noted that parking is required to be provided for the school.PAGE 25 CITY COUNCIL MINUTES November 10, 1998 14. PUBLIC HEARINGS (Continued) MAYOR COONTZ OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. MOTION - Slater SECOND - Mayor Coontz AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved to approve Negative Declaration 1581-98.MOTION - Slater SECOND - Alvarez AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved to approve Ordinance Amendment No. 3- 98 as outlined in Planning Commission Resolution No. PC 82-98.ORDINANCE NO. 9-98 An Ordinance of the City Council of the City of Orange amending Section 17.18.030 of the Orange Municipal Code relating to schools in Commercial Zoning Districts.MOTION - Slater SECOND - Alvarez AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved that Ordinance No. 9- 98 be read by title only and same was set for second reading by the preceding vote.14.2 APPEAL NO. 450, CONDITIONAL USE PERMIT NO. 2238-98, AROMA ITALIANO COFFEE HOUSE:Time set for a public hearing by Riccardo Bosco for Aroma Italiano Coffee House to appeal the decision by the Planning Commission on September 21, 1998 denying Conditional Use Permit No. 2238-98, a request for an on-site sale beer and wine license for an existing coffee and pastry shop. The site is located at 1948 North Tustin Street. (A4000.0 APP-450)NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15303.PAGE 26 CITY COUNCIL MINUTES November 10, 1998 14. PUBLIC HEARINGS (Continued) THE APPELLANT STATES THE FOLLOWING REASONS FOR THE APPEAL: I am appealing the decision of the Planning Commission because I do not feel that I had the opportunity to be fully heard about the application. We are requesting a license to offer beer and wine in addition to our current offerings of coffee, food and cigars. In as much as smoking is prohibited indoors we would like to extend the requested alcohol service to our small outdoor patio area. We feel the City of Orange has a void when it comes to a comfortable place where any of you could come and relax in a friendly atmosphere, have a cup of coffee, eat and perhaps enjoy a fine cigar with a glass of wine. The Director of Community Development reported the site is zoned C- T -R (Commercial) as is other property in the general area. The business is 1400 square foot located within a 64,000 square foot retail commercial center. There is seating for approximately 40 people inside and in a small outdoor area. Consumption of beer and wine would be in the indoor area and in a 9 x 18 foot outdoor patio area, which is surrounded by a 4 foot high metal fence. The Planning Commission was presented with allowing indoor and outdoor beer and wine sales and had concerns with the outdoor beer and wine sales. The Police Department has determined that an over concentration of liquor licenses in the area is not an issue. MAYOR COONTZ OPENED THE PUBLIC HEARING. Dr. John Rose, 17042 Marina Bay Drive, Huntington Beach, partner of Aroma Italiano Coffee House, commented they are not attempting to be a bar. Everyone within the center is supportive of their proposal. Riccardo Bosco, 4591 Warner Avenue, Huntington Beach, representing Aroma Italiano Coffee House, commented the hours of the business will remain the same. Their plan is to improve the business. MAYOR COONTZ CLOSED THE PUBLIC HEARING. COUNCIL COMMENTS: Councilman Spurgeon commented the business fits in well with the shopping center area. The Police Department does not have a problem with beer and wine sales. The clientele is very mature. He noted that Assemblyman Bill Campbell had sent a letter expressing support. Mayor pro tern Slater commented it is a very reputable establishment. Did the Planning Commission address safety and citing issues with alcohol being served in the outdoor area? Would staff make the determination on where the outdoor fence is placed? The Director of Community Development responded two issues the Planning Commission discussed were: 1) concern of a walkway between the outdoor seating area and the business establishment; and 2) the unique nature of the business - alcohol is usually sold in conjunction with an establishment primarily in the restaurant or food sales business. There was concern with what the primary use PAGE 27 CITY COUNCIL MINUTES November 10, 1998 14. PUBLIC HEARINGS (Continued) of the business is and whether it would give the City difficulty in the future if someone asked to combine the sale of alcohol with other commodities as an undefined kind of issue. Staff and Alcoholic Beverage Control (ABC) would determine the placement of the fence. The concern is to make sure there is adequate monitoring ofthe area by the business operator. MOTION - Slater SECOND - Spurgeon AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved that this project is categorically exempt from the proVISIons of the California Environmental Quality Act per State CEQA Guidelines Section 15303.MOTION - Slater SECOND - Spurgeon AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy Moved to approve Conditional Use Permit 2238-98 to allow the on-site sale of beer and wine with expanded food menu at the existing coffee and pastry shop located at 1948 N. Tustin Street.The approval to include the conditions listed in the Planning Commission Staff Report.14.3 CONDITIONAL USE PERMIT NO. 2243-98, YOUNG'S MARKET COMPANY:Time set for a public hearing on petition by Young's Market Company to consider Conditional Use Permit No. 2243-98 a request to allow the sale of individual bottles of alcoholic beverages from the premises directly to retail customers (with sales limited primarily to company employees). State regulations require the issuance of an "off-sale" license for the privilege of selling retail, versus wholesale. The site is located at 2164 North Batavia Street. (C3300.0 CUP-2243-98) NOTE: This project is categorically exempt from the provisions of the California Environmental Quality Act per State CEQA Guidelines Section 15301.NOTE: Councilman Alvarez reported a potential conflict of interest with property owned immediately to the east of this property and left the Council dais.The Director of Community Development reported the property is over ten acres and zoned M-2 Industrial), currently occupied by the Young's Market Company Distribution Center, a 246,000 square foot building which is both a distribution warehouse and their corporate offices. Surrounding properties have industrial zoning on three sides. Young's Market Company is in the business of importation and distribution of alcoholic beverage products to retail outlets. Occasionally, they have damaged cartons which cannot be shipped to their retail outlets and they PAGE 28 CITY COUNCIL MINUTES November 10, 1998 14. PUBLIC HEARINGS (Continued) would like to sell those primarily to employees and friends of the business. A State Alcoholic Beverage Control (ABC) license for retail sales is required. MAYOR COONTZ OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS, MAYOR COONTZ CLOSED THE PUBLIC HEARING. In response to Councilman Spurgeon, the Director of Community Development explained the ABC license does not allow them to limit the sales to employees only and they do not look favorably at placing a condition which would limit the sales, even on a local application. The business is not conducive to the public for retail sales. MOTION - Spurgeon SECOND - Slater AYES - Slater, Mayor Coontz, Spurgeon ABSENT - Murphy, Alvarez Moved to accept the Planning Commission recommendation that the project is categorically exempt from CEQA review. MOTION - Spurgeon SECOND - Slater AYES - Slater, Mayor Coontz, Spurgeon ABSENT - Murphy, Alvarez Moved to approve Conditional Use Permit 2243-98 as outlined 10 Planning Commission Resolution No. PC-70-98.NOTE: Councilman Alvarez returned to the Council dais.15. PLANNING AND ENVIRONMENT - None 16. ADJOURNMENT MOTION - Mayor Coontz SECOND - Spurgeon AYES - Slater, Mayor Coontz, Spurgeon, Alvarez ABSENT - Murphy PAGE 29 CITY COUNCIL MINUTES November 10, 1998 16. ADJOURNMENT (Continued) The City Council adjourned at 9:40 p. m. in memory of Frank Ruiz, Community Services Field Maintenance Supervisor. du~~Adt- CASSANDRA HCART, CMC CITY CLERK JOANNE COONTZ MAYOR PAGE 30