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Minutes 81-04-29MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD April 29~ 1981 ~e adjourned regular meeting of the Cypress City Council was called to order at 7:12 p.m. on Wednesday, April 29, 1981 in the Administrative Conference Room of the Cypress City Hall, 5275 Orange Avenue~ Cypress, California, Mayor Gerald Mullen presiding. PRESENT: ABSENT: Councilmembers Coronado, Lacayp, Rowan & Mullen Councilwoman Evans ~e City Manager reported that the Chamber of Commerce in conjunction with the Steering Committee for the City's 2Sth anniversary celebration had requested the Council's approval for them to serve as a non-profit agency to receive donations for the 25th anniversary celebration. Councilman Lacayo recommended that the Steering Committee establish proper accounting procedures and that they also earmark donations into separate funds for specific projects. He recommended that the funds be monitored as general contributions or contributions for a specific program. The Council recommended that all partici- pants, including community organizations which are conducting fund-raising events, be made aware of the accounting procedures. Mr. Francis Boykin, 5917 Noumea, Cypress, reported that the Steering Committee, consisting of the chairmen of eight committees plus six other persons, would be responsible for the funds and will approve all expenditures. He also reported that the committees will maintain their own funds. Mr. Boykin described several committee activities and organization-sponsored fund raising events for the anniversary cele- bration. He stated he would transmit the Council's recommendations to the Steering Committee at their next meeting on May 5. Councilman Rowan recommended that, if community organizations are conducting fund raising events, they should be made aware by the Steering Committee of the purpose for which their donated funds will be used and what portion of the funds raised may be retained by the organization. It was moved by Councilman Rowan, seconded by Councilman Lacayo and unanimously carried that the Council approve the Cypress Chamber of Commerce acting as the official non-profit contributions receiver in conjunction with the Steering Committee for the Cypress 25th anniversary celebration, request that the Chamber establish procedures for proper fund accounting, and advise all donors/participants of the accounting procedures. CONTINUATION OF CONSIDERATION OF AWARD OF CONTRACT FOR WORD PROCESSOR: The City Manager stated this item was continued from the April 27 Council meeting. Council- man Rowan recommended that the staff ensure that the equipment will meet the City's needs and consider whether peripheral equipment will be necessary. Mayor Mullen expressed a concern that the lowest bid may not represent the best equipment and recommended that the equipment should be able to meet the City's needs and provide the best production services. Mr. Davenport reported on staff's analysis of word processing equipment and stated staff had devoted about two years to this project. He reported that staff visited other cities to view their equipment and also attended demonstrations at word processing manufacturers° He reported staff was interested in a machine that had a capacity to meet the City's future needs and one that would include a good maintenance contract. Mr. Davenport stated the low bidder apparently would meet these require- ments. He stated vendors were requested to submit bids, and IBM did not submit a bid. Councilman Lacayo stated that for a small additional cost the City could purchase a mini-computer which would have many uses beyond word processing. He expressed support for having in-house computer operators which could eliminate the City's costs for contract computer services. City Council Minutes April 29, 1981 It was moved by Councilman Rowan, seconded by Councilman Coronado and unanimously carried to accept the bid of Olivetti, 1100 N. Gilbert, Anaheim, California, as the lowest responsible bidder and award them the contract in the amount of $10,070 for the word processing system plus an additional $348.74 for a noise hood. RECESS: Mayor Mullen called a recess at 8:17 p.m. The meeting was called back to order at 8:30 p.m. with Councilwoman Evans absent. CONTINUATION OF PUBLIC HEARING RE: SPECIylC PLAN #.~1-1~ CYPRESS LAND COMPANY (SOUTH OF KATELLA BETWEEN VALLEY VIEW AND KNOTT STREETS): The City Manager stated this hearing was continued from the April 27 Council~eeting. Councilman Rowan stated he felt that at the last meeting it appeared the City and Cypress Land were close to agreement since both had agreed there was potential for commercial development of 16 acres and to setting aside 14 of the 30 acres for two years. Councilman Rowan stated he was ready to proceed with an agreement that would set aside 16 acres for commercial use for a period of ten years, and set aside the remaining 14 acres for a period of five years. He stated he would favor a longer test period than the two years, and that he felt development of the industrial projects on the property would create commercial potential on the remainder. Councilman Rowan also recommended that the City accept the street dedications if Cypress Land agrees to accept their maintenance as part of an assessment district; he recommended that the agreement provide for a review of the assessment based upon the revenue return from the development on the property. The City Attorney stated the formula for the assessment could be based on the property's street frontage (by feet) and its area could be used as an adjustment factor. Mr. Brian Harvey and representatives of Cypress Land discussed the proposal with the Council. Mr. Harvey felt five years was too long a period to tie up the 14 acres. lte stated he would like to know where he stands with regard to the entire property to avoid having to keep coming back to the Cotmcil for approvals. Mr. Meyer stated the intent of their specific plan was to avoid piecemeal development of their property; he stated transition type uses will be necessary between the industrial and future commercial uses to the west. Mr. Harvey reported that the only immediate interest in commercial development that they received was for restaurants. He felt the recent sale of the Los Alamitos Race Track would broaden the potential for commercial uses. He expressed concern that restaurant or motel development on the Valley View street frontage would block needed exposure for commercial uses which are developed to the rear. Mr. Harvey stated he would like the assessment district to be phased out when the uses on the property provide the City with sufficient revenue. Mr. Francis Boykin, 5917 Noumea, Cypress, stated he would favor a major market development on the property which would provide Cypress residents with a place to shop and would provide the City with sales tax revenue. He indicated he would object to a corridor-type commercial center which may be difficult to occupy. Mr. Harvey asked if office buildings would be a permitted use on his property. Staff reported office buildings would be permitted; however, they would probably be restricted to a maximum of three stories so that they would not interfere with the flight path of the Los Alamitos air station. Councilman Lacayo recommended that the ground floor of office buildings be devoted to retail commercial uses. Representatives from Cypress Land requested an opportunity for a conference. I~CESS: Mayor Mullen called a recess at 9:06 p.m. ~e meeting was called back to order at 9:30 p.m. with Councilwoman Evans absent. Mr. Harvey suggested a counterproposal to set aside 16 acres of the property for seven years and to set aside 14 acres for three years, with Cypress Land to have the option and lattitude to build out the property with a proper mixture of uses, which would include a range of retail commercial to offices. Mr. John Howitt, attorney for Cypress Land, stated the property owner did not wish to develop uses on the property which would decrease its value or lessen its potential. Mr. Meyer indicated that their control over developing the 40 acres would generate the type of uses the City desires on the 30 acres to the west. Mr. Harvey stated he would like a limit on the assessment district, such as tying it to the seven year period during which the 16 acres would be held. -2- City CouncS1 Minutes April 29, 1981 The Council indicated that the agreement would propose an equitable formula relating to the maintenance assessment, its duration, reduction or elimination, based upon the revenue generation from the uses on the property. ~e Council further pointed out that the agreement should express the City's desire for a mixture of retail commercial and office uses which are sales tax revenue producing. Following further discussion, Mr. Harvey expressed agreement to Councilman Rowan's proposal to set aside 16 acres for eight years and 14 acres for four years. It was moved by Councilman Rowan and seconded by Councilman Coronado to close the public hearing and adopt the following Resolution by title only, title as follows, and direct the City Attorney to draft a development agreement between the City and Cypress Land Company for the Council's review which will provide that 16 acres of their property be set aside for 8 years and 14 acres be set aside for 4 years, with further provision for the City's acceptance of the street dedications subject to establishment of a maintenance assessment district which will be based on a formula equitable to the City and Cypress Land Company: RESOLUTION NO. 2382 A RESOLUTION OF l~E CITY COUNCIL OF THE CITY OF CYPRESS APPROVING SPECIFIC PLAN NO. 81-1. The motion unanimously carried by the following roll call vote: AYES: NOES: ABSENT: 4 COUNCILMEMBERS: 0 COUNCILMEMBERS: 1COUNCILMEMBERS: Coronado, Lacayo, Rowan & Mullen None Evans CONSIDERATION OF BUDGET WORKSHOP: The City Manager stated the booklet transmitted to the Council summarized the City's program performance budget system. Staff also transmitted reports on the 1981-82 capital project requests and City and District revenue and expenditure reports (fiscal years 1978-79 through 1981-82). The Finance Director explained the following three components of the City's fiscal and cash management system: (1) reports the City generates to monitor its expenses; the Finance Department distributes these reports to City departments on a monthly basis to indicate the departments' expenditures compared to the budget which ensures that the departmental budgets are not overspent; (2) the fund accounting operations which segregate municipal operations into funds to comply with law; and (3) the audit system consisting of the basic annual audit prepared by an independent CPA firm and additional audits performed by the state, federal and county agencies which ensure that their funds are properly used by the City. Councilman Coronado requested the departmental monthly reports to review. Staff stated they would provide him with these reports as well as the monthly reports which show a breakdown of expenditures and appropriations by program. The City Manager reported that the City's cash position was excellent because of the past budget policies specifically relating to Proposition 13. Staff responded to questions from the Council regarding the financial reports. 'I~e City Manager reported that he had held his preliminary meetings with department heads to review their 1981-82 budget requests. He reported his policy had been to attempt to balance their 1981-82 operating revenues with the operating expenses excluding equipment, furniture and capital project requests. He stated he was close to completing these adjustments which equaled about a $700,000 reduction in departmental requests. Staff reported that the past problem concerning City/ District reserves had been resolved by state legislation. Councilman Lacayo requested that staff prepare a report for the Council which projects City expenditures, especially personnel costs, for the next five years, using the City's past five year expenditure figures correlated to inflation (CPI) and the overall economic trends. ADJOURNMENT: It was moved by Councilman Rowan, seconded by Councilman Lacayo and unanimously carried to adjourn the meeting at 11:00 p.m. MAYOR OF THE CITY OF CYPRESS KI'TEST: CITY CLERK OF ~HE CI~ Of CYPRESS -3-