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Minutes 2002-06-10MINUTES OFA REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD June 10, 2002 A regular meeting of the Cypress City Council was called to order at 5:38 p.m. by Mayor Sondhi in the Council Chambers, 5275 Orange Avenue, Cypress, California. PRESENT: Council Members Keenan, McGill, Piercy, Mayor Pro Tern McCoy, Mayor Sondhi ABSENT: None STAFF PRESENT: City Manager, City Attorney, and City Clerk. The City Attorney stated the City Council would be meeting in Closed Session regarding Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Via Maria v. City of Cypress; ClPA Coverage Appeal; Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Julian Thuy Vu Lev. Anthony Ross Palter, Case Number 02WL0248, Orange County Superior Court and as to State Farm Insurance's Pending Litigation Claim, pursuant to Government Code Section 54956.9(a); Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Quitmeyer v. City of Cypress, et. al., Case Number 00CC15234, Orange County Superior Court; and Conference with Labor Negotiator, pursuant to Government Code Section 54957.6, Agency Negotiator: Richard Storey, Employee Groups: Executive Management, Mid-Management, and Non-Represented. The City Attorney stated the City Council and Redevelopment Agency would be meeting in a Joint Closed Session regarding Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Cottonwood Christian Center v. Redevelopment Agency of the City of Cypress, Case Number SA02-60, United States District Court- Central District of California, Case Number 02CC01575, Orange County Superior Court - Central Justice Center (Removed to Federal Court), Case Number SA02-149, United States District Court - Central District of California. The City Attorney stated the Redevelopment Agency would be meeting in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8, Real Property Identified by APN Numbers 241-091-27, 241- 091-28, 241-091-29, 241-091-30, 241-091-33, and 241-091-34; Consisting of approximately 75 Acres at Northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area, Negotiating Party: Executive Director, Deputy Executive Director, and Agency Counsel, Under Negotiation: Price and Terms of Payment. At 5:40 p.m., the Mayor recessed the meeting. 7:00 P.M. SESSION: The 7:00 p.m. session of the City Council meeting was called to order at 7:45 p.m. by Mayor Sondhi. PRESENT: Council Members Keenan, McGill, Piercy, Mayor Pro Tem McCoy, Mayor Sondhi ABSENT: None CITY COUNCIL MINUTES 2O9 JUNE 10, 2002 STAFF PRESENT: City Manager, City Attorney, Director of Finance and Administrative Services, Community Development Director, Chief of Police, Public Works Director, Recreation and Community Services Director, Assistant to the City Manager, Assistant Community Development Director, Associate Planner, Assistant Planner, and City Clerk. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council Member Keenan. INVOCATION: The invocation was given by City Attorney Wynder. PRESENTATIONS: The Mayor presented a proclamation to Battalion Chief Ron Blaul, Orange County Fire Authority, proclaiming the month of June, 2002, as "Drowning Prevention and Awareness Month" in the City of Cypress. Mayor Sondhi, Cable TV and Technology Commission Chairperson Brian Black, and John Borack, AOL Time Warner, presented awards to the 2002 Video Contest winners: Sweepstakes Winner: First Place Winner: Second Place Winner: Third Place Winner: Walker Jr. High School Will Luther Elementary School Cypress High School Cypress High School REPORT OF WORKSHOP AGENDA/CLOSED SESSION: The Mayor asked for the report of the Closed Session Agenda items discussed earlier in the evening. The City Attorney reported that the Council met regarding Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Via Maria v. City of Cypress; CIPA Coverage Appeal. The City Attorney briefed the Council on the right the Council has to appeal a coverage determination made by CIPA (formerly OCCRMA). Based upon that advice, the City Council unanimously directed the City Attorney and staff to seek binding arbitration of the coverage determination issues raised by this civil litigation. The City Attorney reported that the Council met regarding Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Julian Thuy Vu Lev. Anthony Ross Palter, Case Number 02WL0248, Orange County Superior Court and as to State Farm Insurance's Pending Litigation Claim, pursuant to Government Code Section 54956.9(a). The City Attorney briefed the Council on a suggested settlement of this litigation and apprised the Council of the analysis and recommendation of both legal counsel and the City's third party administrator. The City Council unanimously authorized a settlement amount. The City Attorney reported that the Council met regarding Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Quitmeyer v. City of Cypress, et. al., Case Number 00CC15234, Orange County Superior Court. The Council was briefed for the last time as this case is scheduled to go to trial in approximately 30 days. Settlement options were discussed with the Council and the Council directed staff to try this case to judgment. The City Attorney stated the remainder of the Closed Session items will be continued at the conclusion of the City Council meeting. No other action was taken in Closed Session, nor was any solicited. CITY COUNCIL MINUTES JUNE 10, 2002 ORAL COMMUNICATIONS: LIMITED TO ONE-HALF HOUR. (THREE MINUTES PER SPEAKER, SPEAKING ONCE.) Mayor Sondhi asked anyone who wished 1o speak on any topic not included on the meeting Agenda to come forward. Helen Olsen, Cypress, spoke regarding Cottonwood Christian Center. Mary Crowder, Cypress, spoke regarding the defamation of the City of Cypress. Pete Kinnahan, Cypress, spoke regarding the Cypress Residents for Planned Commercial Development. Mark Veturis, Cypress, spoke regarding Cypress Acres. Mike Wilson, Whittier, spoke regarding Agenda Item Nos. 18 and 21. Council Member Keenan requested a formal presentation regarding the status of Cypress Acres discussions with the County of Orange at a future meeting. PUBLIC HEARINGS: 7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL). Item No. 1: PUBLIC HEARING REGARDING CONDITIONAL USE PERMIT NO. 2002-07, A REQUEST TO ALLOW THE SALE OF BEER AND WINE AT AN EXISTING KOREAN STYLE RESTAURANT LOCATED AT 6907 KATELLA AVENUE IN THE PC- 1 PLANNED COMMUNITY BUSINESS PARK ZONE. The Assistant Planner provided background information on this item. The public hearing was opened. Mayor Sondhi asked if there was anyone who wished to speak in favor of the item. Mayor Sondhi asked if there was anyone who wished to speak against the item. The public hearing was closed. It was moved by Mayor Pro Tem McCoy and seconded by Council Member McGill, to adopt the Resolution approving Conditional Use Permit No. 2002-07 - with conditions. The motion was unanimously carried by the following roll call vote: AYES: 5 NOES: 0 ABSENT: 0 COUNCIL MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi COUNCIL MEMBERS: None COUNCIL MEMBERS: None RESOLUTION NO. 5565 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING CONDITIONAL USE PERMIT NO. 2002-07 - WITH CONDITIONS. Item No. 2: PUBLIC HEARING REGARDING CONDITIONAL USE PERMIT NO. 2002-08, A PROPOSED WEIGHT LOSS AND FITNESS CENTER TO BE LOCATED AT 9919 WALKER STREET. The Assistant Planner provided background information on this item. The applicants, Charlene and Tom Coleman, stated their goal is to help the community by creating a nice environment for women to come and exercise. The public hearing was opened. Mayor Sondhi asked if there was anyone who wished to speak in favor of the item. 3 CITY COUNCIL MINUTES JUNE 10, 2002 Mayor Sondhi asked if there was anyone who wished to speak against the item. The public hearing was closed. It was moved by Council Member McGill and seconded by Council Member Keenan, to adopt the Resolution approving Conditional Use Permit No. 2002-08 - with conditions. The motion was carried by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Keenan, McGill, McCoy and Sondhi NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 1 COUNCIL MEMBERS: Piercy Council Member Piercy did not participate on this item due to the proximity of her home to the project. RESOLUTION NO. 5566 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, APPROVING CONDITIONAL USE PERMIT NO. 2002-08 - WITH CONDITIONS. Item No. 3: PUBLIC HEARING REGARDING THE PERIODIC REVIEW OF AND AMENDMENT TO CONDITIONAL USE PERMIT NO. 94-6, INVOLVING AN EXISTING TELECOMMUNICATIONS ANTENNA FACILITY LOCATED AT 8921 ELECTRIC STREET IN THE PC PLANNED COMMUNITY ZONE. The Associate Planner provided background information on this item. The applicant, Kathleen Hill, SpectraSite Communications, stated they are a tower owner management company and that this particular site is owned by Verizon. The public hearing was opened. Mayor Sondhi asked if there was anyone who wished to speak in favor of the item. Mayor Sondhi asked if there was anyone who wished to speak against the item. The public hearing was closed. Mayor Sondhi asked if a greater range of coverage would be received with the upgrades. Ms. Hill stated she had not discussed with Verizon how coverage gaps could be addressed but that she would continue to work with staff as reviews on other sites come up on upgrading technology to provide better coverage to the city. The City Manager stated that staff is currently working on a comprehensive report making the determination where cell sites are located, coverage issues, and meeting with the companies that provide service to determine the technological problems. It was moved by Council Member Keenan and seconded by Council Member McGill, to adopt the Resolution approving an Amendment to Conditional Use Permit No. 94-6 - Reducing the Scale of the Existing Antenna Array and Amending Condition No. 39.A. The motion was unanimously carried by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None 4 CITY COUNCIL MINUTES JUNE 10, 2002 RESOLUTION NO. 5567 A RESOLUTION OF THE CiTY COUNCIL OF THE CITY OF CYPRESS, APPROVING AN AMENDMENT TO CONDITIONAL USE PERMIT NO. 94-6- REDUCING THE SCALE OF THE EXISTING ANTENNA ARRAY AND AMENDING CONDITION NO. 39.A. Actin.q as the Ex Officio Governin.q Board of Directors of the Cypress FCecreation and Park District: Item No. 4: PUBLIC HEARING REGARDING THE ADOPTION OF THE FISCAL YEAR 2002-03 BUDGET FOR THE CYPRESS RECREATION AND PARK DISTRICT. The Director of Finance and Administrative Services provided background information on this item. The public hearing was opened. Mayor Sondhi asked if there was anyone who wished to speak in favor of the item. Mayor Sondhi asked if there was anyone who wished to speak against the item. The public hearing was closed. It was moved by Council Member Keenan and seconded by Council Member Pieroy, to adopt the District budget as proposed for the fiscal year beginning July 1,2002. The motion was unanimously carried by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None CONSENT CALENDAR: All matters listed on the Agenda under "Consent Calendar' are to be considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the Agenda. Council Member Keenan requested Item Nos. 11 and 16 be pulled from the Consent Calendar. Mayor Sondhi requested Item No. 8 be pulled from the Consent Calendar. Mayor Sondhi stated she would be abstaining from Item Nos. 5 and 18. It was moved by Council Member Keenan and seconded by Council Member Piercy, to approve Consent Calendar Items No. 5 through 7, 9, 10, 12 through 15, and 17 through 19. The motion was unanimously carried by the following roll call vote: AYES: 5 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 COUNCILMEMBERS: Item No. 5: Keenan, McGill, Piercy, McCoy and Sondhi None None APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF MAY 28, 2002. Recommendation: That the City Council approve the Minutes of the Meeting of May 28, 2002, as submitted, with Mayor Sondhi abstaining due to her absence from the meeting. CITY COUNCIL MINUTES JUNE 10, 2002 Item No. 6: MOTION TO INTRODUCE AND/OR ADOPT ALL ORDINANCES AND RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO WAIVE FURTHER READING. Item No. 7: ADOPTION OF RESOLUTION AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS OF THE STATE BOARD OF EQUALIZATION. Recommendation: That the City Council adopt the Resolution by title only, authorizing the examination of sales and use tax records of the State Board of Equalization, and rescinding Resolution No. 958 and Resolution No. 3793. RESOLUTION NO. 5568 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS AND RESCINDING RESOLUTION NO. 958 AND RESOLUTION NO. 3793. Item No. 9: APPROVAL OF DESIGN REVIEW COMMITTEE PERMIT NO. 2002-03, A REQUEST TO CONVERT AN EXISTING NON-CONFORMING ROOF-MOUNTED ANTENNA FACILITY TO A STEALTH BUILDING-MOUNTED ANTENNA DESIGN LOCATED ON AN EXISTING HOTEL AT 5865 KATELLA AVENUE. Recommendation: That the City Council adopt the Resolution by title only, approving Design Review Committee Permit No. 2002-03 - with conditions. RESOLUTION NO. 5572 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, APPROVING DESIGN REVIEW COMMITTEE PERMIT NO. 2002-03 - WITH CONDITIONS. Item No. 10: AWARD OF CONTRACT FOR CROSSING GUARD SERVICES. Recommendation: That the City Council: 1) Dispense with the formal competitive bidding process, pursuant to City Code Section 21-A10C, D, and F, since All City Management is the sole source vendor; and 2) Award a one (1) year contract for crossing guard services to All City Management Services, Inc., 1749 S. La Cienega Boulevard, Los Angeles, California 90035, for an amount not to exceed $144,468 per year. Item No. 12: AWARD PURCHASE OF GAS MONITORING SYSTEM. Recommendation: That the City Council approve the purchase of a replacement gas ~ ~ international, 2860 23rd Avenue North, St. Petersburg, Florida 33713, in the amount of $1,630.87, and appropriate $1,631.00 to account number 4308-90- 656-35 from the unencumbered fund balance of the Capital Equipment Replacement Fund (90) for this purchase. Item No. 13: APPROVAL OF THE CITY ENGINEER'S REPORT AND RENEWAL OF CYPRESS CORPORATE CENTER LANDSCAPE MAINTENANCE DISTRICT NO. 1 FOR THE LANDSCAPED BERM ON THE NORTH SIDE OF THE STANTON CHANNELI CITY OF CYPRESS PROJECT NO. 8615-90. Recommendation: That the City Council adopt the Resolutions by titles only, approving the City Engineer's Report and establishing a public hearing for July 22, 2002, declaring the City Council's intention to order the renewal of Cypress Corporate Center Landscape Maintenance District No. 1 for the maintenance of the landscaping and irrigation system on the berm on the north side of the Stanton Channel. CITY COUNCIL MINUTES JUNE 10, 2002 RESOLUTION NO. 5573 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, DECLARING ITS INTENTION TO ORDER THE RENEWAL OF CYPRESS CORPORATE CENTER LANDSCAPE MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2002-03, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, AND FIXING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO. RESOLUTION NO. 5574 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, APPROVING THE CITY ENGINEER'S REPORT DATED JUNE 10, 2002, IN CONNECTION WITH THE RENEWAL OF CYPRESS CORPORATE CENTER LANDSCAPE MAINTENANCE DISTRICT NO. 1. Item,No. 14: ANNUAL REQUALIFICATION OF PARTICIPATING CITIES IN THE COUNTY OF ORANGE ARTERIAL HIGHWAY FINANCING PROGRAM (AHFP). Recommendation: That the City Council adopt the Resolution by title only, informing the Orange County Transportation Authority (OCTA) that the Circulation Element of the Cypress General Plan conforms to the County Master Plan of Arterial Highways (MPAH). RESOLUTION NO. 5575 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CONCERNING THE STATUS OF THE CIRCULATION ELEMENT FOR THE CITY OF CYPRESS. Item No. 15: ACCEPTANCE OF FINAL PARCEL MAP NO. 2001-171. PROPERTY LOCATED AT THE NORTHWEST CORNER OF ORANGE AVENUE AND WALKER STREET. Recommendation: That the City Council approve Final Pamel Map No. 2001-171 and authorize the City Clerk to sign the record map. Item No. 17: APPROVAL OF TRANSFERRING EMERGENCY RESERVES FROM THE GENERAL FUND TO THE CIP FUND IN FISCAL YEAR 2001-02. Recommendation: That the City Council: 1) Approve the transfer of the Designated Fund Balance for Emergencies from the General Fund to the CIP Fund; and 2) Approve an increase in Budgeted Transfers Out from the General Fund (2200-11-999-99) and an increase in Budgeted Transfers In to the CIP Fund (1200-15-999-99) by $5,720,948. Item No. 18: EXECUTION OF PROMISSORY NOTE BETWEEN THE CITY OF CYPRESS AND THE CYPRESS REDEVELOPMENT AGENCY. Recommendation: That the City Council authorize City staff to execute the Repayment Agreement and Promissory Note (Exhibit "A") in the amount of $7,000,000 with the Cypress Redevelopment Agency, with the repayment by the Agency being made from future tax increments or other available project area revenue sources. Item No. 19: APPROVAL OF COMMERCIAL WARRANT LIST FOR WARRANTS NO. 54215 THROUGH 54435. Recommendation: Approve the attached warrant register. 7 CITY COUNCIL MINUTES JUNE 10, 2002 Regarding Item No. 8: ADOPTION OF RESOLUTIONS RECOGNIZING THE CYPRESS CHAMBER OF COMMERCE 2002 WOMAN OF THE YEAR, MAN OF THE YEAR, AND BUSINESS OF THE YEAR RECIPIENTS, Mayor Sondhi stated she wanted to recognize Linda Sunley as Woman of the Year, Frank Sabato as Man of the Year, and PC Net as Business of the Year. It was moved by Mayor Sondhi and seconded by Council Member Keenan, to adopt the Resolutions by title only, recognizing the Cypress Chamber of Commerce Woman of the Year, Man of the Year, and Business of the Year for 2002. The motion was unanimously carried by the following roll call vote: AYES: 5 NOES: 0 ABSENT: 0 COUNCIL MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi COUNCIL MEMBERS: None COUNCIL MEMBERS: None RESOLUTION NO. 5569 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, RECOGNIZING LINDA SUNLEY ON BEING SELECTED AS THE 2002 WOMAN OF THE YEAR BY THE CYPRESS CHAMBER OF COMMERCE. RESOLUTION NO. 5570 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, RECOGNIZING FRANK SABATO ON BEING SELECTED AS THE 2002 MAN OF THE YEAR BY THE CYPRESS CHAMBER OF COMMERCE. RESOLUTION NO. 5571 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, RECOGNIZING PC NET ON BEING SELECTED AS THE 2002 BUSINESS OF THE YEAR BY THE CYPRESS CHAMBER OF COMMERCE. Reqardin.q Item No. 11: APPROVAL OF SECOND AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN THE CITY OF CYPRESS AND PATRICK P. IMPORTUNA, Council Member Keenan stated he would like to acknowledge the hard work and tremendous accomplishments of the City Manager. It was moved by Council Member Keenan and seconded by Mayor Pro Tem McCoy, to approve the Second Amendment to City Manager Employment Agreement between the City of Cypress and Patrick P. Importuna as submitted. The motion was unanimously carried by the following roll call vote: AYES: 5 NOES: 0 ABSENT: 0 COUNCIL MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi COUNCIL MEMBERS: None COUNCIL MEMBERS: None Reqardinq Item No. 16: ADOPTION OF THE FISCAL YEAR 2002-03 BUDGET FOR THE CITY OF CYPRESS, Council Member Keenan asked what the contingency reserve amount is in the operating budget. The Director of Finance and Administrative 9ervices stated the 25% contingency reserve is maintained for the operations of the General Fund, which is $19,223,000, making the contingency reserve just under $5 million. Mayor Pro Tem McCoy asked about increases in Part One crimes in the City. 8 cn-¥ COUNC. U,NU -ES 216 JUNE 10, 2002 The Police Chief stated as of May 30, 2002, there has been an approximate increase of 20% in Part One crimes and an 11% decrease in Part Two crimes. Mayor Pro Tem McCoy requested the Police Chief to research the crime increase and increased workload from calls for service and provide this information to the City Council with recommendations on staffing of the Police Department by the first meeting in July. It was moved by Council Member Keenan and seconded by Mayor Pro Tem McCoy, to adopt the Resolution by title only, approving the City's annual budget for the fiscal year beginning July 1,2002. The motion was unanimously carried by the following roll call vote: AYES: 5 NOES: 0 ABSENT: 0 COUNCIL MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi COUNCIL MEMBERS: None COUNCIL MEMBERS: None RESOLUTION NO. 5576 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, APPROVING THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1,2002 AND FIXING THE LIMITATIONS OF EXPENDITURES FOR THE SEVERAL FUNDS AND THE FUNCTIONS, DEPARTMENTS, AND ACTIVITIES CARRIED ON UNDER SUCH FUNDS. END OF CONSENT CALENDAR UNFINISHED BUSINESS Noitems. NEW BUSINESS Noitems. RECREATION & PARK DISTRICT MATTERS: The Cypress City Council, Acting as the Ex Officio Governing Board of Directors. Noitems. The City Council meeting was recessed at 9:17 p.m. CYPRESS REDEVELOPMENT AGENCY MATTERS: The Cypress City Council, Acting as the Cypress Redevelopment Agency. The Redevelopment Agency was called to order at 9:17 p.m. PRESENT: Agency Board Members Keenan, McGill, Piercy, Agency Vice Chairperson McCoy, Agency Chairperson Sondhi ABSENT: None The City Attorney requested that Item No. 20 be continued to the second meeting in July. Given the new opportunities to further negotiate a satisfactory arrangement with Cottonwood Christian Center, Costco has requested this item be continued. Agency Board Member Piercy requested Item No. 20 be pulled from the Consent Calendar. Agency Chairperson Sondhi stated she would abstain from Item No. 21. CITY COUNCIL MINUTES JUNE 10, 2002 217 It was moved by Agency Board Member Piercy and seconded by Agency Board Member McGill, to approve Consent Calendar Items No. 21 and 22. The motion was unanimously carried by the following roll call vote: AYES: NOES: ABSENT: 5 AGENCY MEMBERS: Keenan, McGill, Piercy, McCoy and Sondhi 0 AGENCY MEMBERS: None 0 AGENCY MEMBERS: None Consent Calendar: Item No. 21: EXECUTION OF PROMISSORY NOTE BETWEEN THE CYPRESS REDEVELOPMENT AGENCY AND THE CITY OF CYPRESS. Recommendation: That the Cypress Redevelopment Agency authorize Agency staff to execute the Repayment Agreement and Promissory Note (Exhibit "A") in the amount of $7,000,000 with the City of Cypress, with the repayment to the City being made from future tax increments or other available project area revenue sources, and approve an appropriation increase in FY 2002-03 of $350,000 in the Agency's Debt Service Fund for LART (4275-54-365-15) for interest expenditures due on June 1,2003. Item No. 22: ADOPTION OF THE FISCAL YEAR 2002-03 BUDGET FOR THE CYPRESS REDEVELOPMENT AGENCY. Recommendation: That the Cypress Redevelopment Agency adopt the Agency's annual budget as proposed for the fiscal year beginning July 1,2002. Re.qardin,q Item. No. 20: CONSIDERATION OF FIRST AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE AGENCY AND COSTCO WHOLESALE CORPORATION. It was moved by Agency Board Member Keenan and seconded by Agency Vice Chair McCoy, to continue this item to the July 22, 2002 meeting. The motion was carried by the following roll call vote: AYES: 4 AGENCY MEMBERS: Keenan, McGill, Piercy, and McCoy NOES: 0 AGENCY MEMBERS: None ABSENT: 0 AGENCY MEMBERS: None ABSTAIN: 1 AGENCY MEMBERS: Sondhi Agency Chair Sondhi did not participate on this item due to her ownership of property in proximity to the project area. Agency Board Member Keenan stated he would like clarification on the promissory note and the loan amount. The Director of Finance and Administrative Services stated this is a loan between the City and Redevelopment Agency to cover the cash flow of the Redevelopment Agency for the next two years. The amount relates to the deposit the Redevelopment Agency put with the State under the eminent domain action. There is also additional money available for the typical operations of the Los Alamitos Race Track property. END OF CONSENT CALENDAR The Redevelopment Agency was adjourned at 9:23 p.m. The City Council reconvened at 9:23 p.m. ORAL COMMUNICATIONS: ForMatters Not on the Agenda. None. 10 CITY COUNCIL MINUTES JUNE 10, 2002 ITEMS FROM CITY COUNCIL MEMBERS: Mayor Sondhi requested reports from the Council Members on their respective committee assignments. Council Member Keenan: Attended a Board meeting for Orange County Transportation Authority where a discussion regarding the reorganization of OCTA was held. He asked that this be agendized in the next couple of meetings to allow him to provide an update and explanation to the Council. Went to New York for OCTA business where they met with rating agencies for the various bonds OCTA has issued. Attended an OCTA Board meeting where a $647 million budget was approved for next year. Mayor Sondhi: Attended a Housing and Community Development Project Advisory Committee meeting where a notice of funding availability process was completed. Council Member Piercy: Attended an Orange County Sanitation District meeting where the main discussion was secondary capacity for treatment. Attended the groundbreaking of the Acacia Adult Day Care facility on Ball Road. Attended the Chamber of Commerce awards. Council Member McGill: Attended several D.A.R.E. graduation ceremonies. Attended the Chamber of Commerce Installation awards. Attended the Mayor's Breakfast with Supervisor Silva. Attended the Mayor's Prayer Breakfast hosted by the Interfaith Council. Attended the groundbreaking for the Acacia Adult Day Care facility. ITEMS FROM CITY MANAGER: The City Manager thanked the City Council for their positive comments regarding his performance and commended staff for their hard work. He stated working for Cypress is a rewarding lifetime opportunity, and commended the City Council and City Attorney. The City Council meeting recessed to Closed Session at 9:47 p.m. The City Council meeting reconvened at 10:43 p.m. REPORT OF CLOSED SESSION: The City Attorney reported the City Council met in Closed Session regarding Conference with Labor Negotiator, pursuant to Government Code Section 54957.6, Agency Negotiator: Richard Storey, Employee Groups: Executive Management, Mid- Management, and Non-Represented. Staff completed briefing the City Council on staff's recommendations with respect to the three employee groups. The City Council unanimously authorized the City's negotiator to move forward with the recommended salary and benefit adjustments. The City Attorney reported the City Council and Redevelopment Agency met in a Joint Closed Session regarding Conference with Legal Counsel - Existing Litigation, pursuant to Government Code Section 54956.9(a), Cottonwood Christian Center v. Redevelopment Agency of the City of Cypress, Case Number SA02-60, United States District Court - Central District of California, Case Number 02CC01575, Orange County Superior Court - Central Justice Center (Removed to Federal Court), Case Number SA02-149, United States District Court - Central District of California. Staff recommended to the City Council and Redevelopment Agency that both sides in the litigation agree to a negotiated hiatus while the parties engage in an intensive period of 11 CITY COUNCIL MINUTES 219 JUNE 10, 2002 negotiations in an effort to reach an amicable settlement of the negotiations. The City Council and Redevelopment Agency unanimously authorized the proposal. Mayor/Agency Chair Sondhi did not participate in this item due to her ownership of property in proximity to the project area. The City Attorney reported the Redevelopment Agency met in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8, Real Property Identified by APN Numbers 241-091-27, 241-091-28, 241-091-29, 241-091-30, 241-091-33, and 241-091-34; Consisting of approximately 75 Acres at Northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area, Negotiating Party: Executive Director, Deputy Executive Director, and Agency Counsel, Under Negotiation: Price and Terms of Payment. Agency counsel and staff completed briefing the Agency on the additional options resulting from the imminent purchase of the golf course by the operators of the Los Alamitos Race Track and requested authorization from the Agency to explore other sites with Cottonwood Christian Center and the future owners of the golf course to relocate the church to a more appropriate location along Katella Avenue. The Agency unanimously directed staff to engage in a period of intensive three-party negotiations in an effort to achieve an acceptable three-party arrangement. The Agency unanimously directed staff to propose to Cottonwood Christian Center that a joint press conference be convened for the purpose of announcing to the public that the parties were about to engage in an intensive period of negotiations in an effort to find an appropriate location for Cottonwood Christian Center. The Agency unanimously directed the City Manager to meet personally with Pastor Bayless Conley to convey these proposals and to report back to the Agency not later than 30 days hence on the status or outcome of these negotiations. Mayor/Agency Chair Sondhi did not participate in this item due to her ownership of property in proximity to the project area. ADJOURNMENT: Mayor Pro Tem McCoy adjourned the meeting at 10:45 p.m. to Monday, June 24, 2002, beginning at 5:30 p.m. in the Executive Board Room. ATTEST: MAYO~TH~ ~31TY ~ ~S ~ CLER(( OF T EI~ClTY OF CYPRESS 12