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HomeMy WebLinkAboutMinutes 82-08-09MINUTES OF A REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD August 9, 1982 185 The regular meeting of the Cypress City Council was called to order at 6:30 p.m., on Monday, August 9, 1982, in the Cypress City Council Chambers, 5275 Orange Avenue, Cypress, California, Mayor Gerald Mullen presiding. PRESENT: Council Members Coronado, Lacayo, Partin, Rowan, and Mullen ABSENT: None Also present were David Barrett, Acting City Manager, and the following staff members: DeCarlo, Dunn, Lamm, Lowenberg, Powell, and Schatzeder. PLEDGE OF ALLEGIANCE: Councilman Coronado led the pledge of allegiance. PRESENTATION: Mayor ~ullen read and presented the Resolution of Commendation to Mr. Lawrence J. Bloch acknowledging his outstanding professional achievements, most recently of which was his election as President of the American Association of Cost Engineers. Mr. Bloch expressed his gratitude in being honored by the City Council. ORAL COMMUNICATIONS: The Mayor asked if anyone wished to address the Council on any matter not on the agenda. Geraldine Smith, 5805 Wellson Drive, Cypress, shared an award which had been bestowed upon her on July 29, 1982, by the Women's Transitional Living Center for battered and abused women and children for her work at the Center, which she felt should be shared with the many individuals and community organizations working on behalf of the Center. She indicated that the Center would like to establish better communications with the cities, police departments and making communities aware of their services. Mayor Mullen introduced Supervisor Harriett Wieder of the Second Supervisorial District who was present to meet with the City Council and staff in Executive Session regarding the landfill/transfer station fees issue. Supervisor Wieder stated that she was pleased to be able to meet with the City officials and share some additional information on this matter with the Council. Since the City Attorney was not present, the Mayor continued with the agenda. MINUTES: It was moved by Mayor Mullen, seconded by Councilman Coronado and unanimously carried to approve the Minutes of July 26, 1982. STAFF REPORTS AND DISCUSSION: At the request of Acting City Manager Dave Barrett and, hearing no objections, the Mayor added the following items to the agenda: Item No. 14a regarding a Resolution of Commendation for Eagle Scout Westley N. (Lee) Follett. Item No. 18a regarding consideration of the PUC explanation of the Southern California Water Company's bill insert. Item No. 22a regarding an informational report from the Superintendent of the Cypress Elementary School District concerning the Vessels School fire. Item No. 24 Executive Session for matters of litigation. Councilman Rowan stated that the left-turn pocket at the corner of Cerritos and Valley View, northbound, was too short and requested the staff to investigate and return with a report for the September 13 Council meeting. CONSIDERATION OF AWARD OF CONTRACT FOR CUSTODIAL SERVICES: Mr. Barrett summarized a report from the Public Works Director dated July 27, 1982, requesting confir- mation of the City Council's previous verbal authorization to cancel the existing contract with Christy's Janitorial Service and authorization to execute a contract with Western Counties Maintenance Co. City Council Minutes August 9, 1982 It was moved by Mayor Mullen, seconded by Councilman Coronado and unanimously carried to: 1) Ratify cancellation of the existing contract with Christy's Janitorial Service and 2) Authorize execution of a contract with Western Counties ~intenance Co., P. O. Box 865 Balboa Station, Newport Beach, Ca. 92661, for janitorial services for a one-year period beginning July 30, 1982, at a rate of $2,801.00 per month. CONSIDERATION OF AWARD OF CONTRACT FOR USED POWER CUTTER: Mr. Barrett stated that as indicated in the staff report of August 4, 1982, this item was autho- rized in the 1982-83 budget in the amount of $8,500. Price quotes were re- ceived from three firms, one of which was OC Graphics, Inc., which offered a cutter that was only one year old and included a 90 day labor and 6 month parts warranty in the amount of $8,500.00. Staff recommended waiving the formal bid process and awarding the contract to OC Graphics, Inc. It was moved by Mayor Mullen, seconded by Councilman Coronado and unanimously carried to suspend the formal bid process and award the contract for purchase of a Challenge Model 305MC power cutter to OC Graphics, Inc., 1013 E. 14th Street, Los Angeles, Ca. 90021, in the amount of $8,500.00. CONSIDERATION OF AWARD OF CONTRACT FOR POLICE CANINE UNIT: The Acting City Manager called on the Chief of Police to summarize his staff report dated July 27, 1982. The Chief stated that after a six-month period of research for a police canine unit, staff recommended the award of contract to the Adlerhorst Kennels based upon their past record and the quality of the dog and training. THE CITY ATTORNEY AP~IVED AT 6:52 P.M. In response to an inquiry from Mayor Mullen, the Chief indicated that the two breeds considered were the Rottweiler and the German Shepherd and staff found that insufficient data exist on the Rottweiler for use in this particular field. The breed selected is an imported German Shepherd with Schutzhund training in discipline and obedience. In reply to Councilman Rowan's question, the Chief stated that the dog would be responding to commands in German. It was moved by Councilman Lacayo and seconded by Councilman Rowan to award the contract for a Police Canine Unit to the Adlerhorst Kennels of Riverside in the amount of $5,000.00. Geraldine Smith, 5805 Wellson Drive, Cypress, addressed the Council and expressed her concerns regarding an imported dog and the need for a back-up handler. Mayor Mullen continued this matter until after the Executive Session which was called at 7:10 p.m. for matters of litigation. The meeting was called back to order at 8:00 p.m., with all Council Members present. CONTINUATION OF CONSIDERATION OF AWARD OF CONTRACT FOR POLICE CANINE UNIT: Respond- ing to Geraldine Smith's concerns, Chief Lowenberg stated that his department had done extensive research on this matter and believed that Adlerhorst Kennels should be awarded the contract. Councilman Coronado stated that although he had initially opposed the canine program and had suggested postponement of the program when the budget was being reviewed, for the record he stated that he does support the program and also supports the need for a back-up handler. Mayor Mullen also shared the concerns regarding the back-up unit indicating that if the program is successful, it could be expanded in the future. Councilman Lacayo suggested that once the canine program is established that the canine unit and officer attend neighborhood watch meetings in order to educate the public on the importance of the program. The motion to award the contract to Adlerhorst Kennels of Riverside was unani- mously carried. City Council Minutes August 9, 1982 187 CONSIDERATION OF PUBLIC HEARING RE: EXTENSION OF CONDITIONAL USE PERMIT NO. 80-17, THE CHURCH IN CYPRESS, 9121 VALLEY VIEW STREET~ CYPRESS: Mr. Barrett called upon the Community Development Director to present his report dated July 30, 1982, which indicated that this application was for a request for an extension of time of two years by the Church in Cypress to construct a permanent church facility at 9121 Valley View Street. Staff recommended approval of the requested extension. Mayor Mullen opened the public hearing and asked if the applicant wished to speak. Dan Leslie, 6291 Rosemary Drive, Cypress, the applicant, requested Council's approval of the two-year extension of time and indicated that the Van Hunnicks, the property owners, were in agreement and that all the City imposed conditions had been met. The Mayor asked if there were anyone else in the audience who wished to speak in favor or in opposition to this application. There were none. It was moved by Mayor Mullen and seconded by Councilman Lacayo to close the Public Hearing and approve the two-year extension of Conditional Use Permit No. 80-17, which permit would expire on July 14, 1984. The motion was unanimously carried. CONSIDERATION OF PUBLIC HEARING RE: AMENDMENT TO CONDITIONAL USE PERMIT NO. 82-8~ AMUSEMENT GAME MACHINES, ANGELO'S BURGERS, 9935 WALKER STREET, CYPRESS: Mr. Barrett called on the Community Development Director to summarize his report. Mr. Lamm stated that in March of this year, the City's Amusement Arcade Ordinance became effective which allows businesses in the City to main- tain up to three amusement game machines without a conditional use permit. Mr. Nicholas Vestakis, representing the Angelo's Burgers, presently maintains five machines and, therefore, has requested an amendment to Conditional Use Permit #82-8 which was approved by the City Council on June 28, 1982, to allow the on site sale of beer and wine. Mr. Lamm indicated that the applicant had originally requested approval of only five machines, but the staff report requested up to eight machines in order to save the applicant the additional costs in reapplying in the future for more machines. He further stated that in response to the Public Hearing process, a letter of protest had been received from Mr. & Mrs. Glen McClintock, 9845 Spruce Court, east of Walker Street. The Mayor asked if the applicant wished to make a presentation. The applicant did not wish to speak. The Mayor asked if there were anyone in the audience who wished to speak in favor of the application or in opposition. Francis Boykin, 5917 Noumea Street, Cypress, stated that he enjoyed eating at Angelo's but that he was disturbed by the noise generated by the machines. The Mayor advised the applicant that he had an opportunity to respond to the opposing comment. Nicholas Vestakis, representing Angelo's Burgers, stated that he felt most of the customers enjoyed playing the machines while waiting for their orders and that it was not just a place for kids to congregate. In response to Councilman Coronado's inquiry, he stated that he does not own the machines but he does provide the maintenance. Councilman Coronado commented that the Council had gone through two hearings regarding arcades in this same center and had adopted the Amusement Arcade Ordinance after considerable discussion. He felt that the Council should not deviate from the law. 3 188 City Council Minutes August 9, 1982 The Community Development Director explained that when business license renewal notices were sent out in June, a notice was included which advised certain establishments with more than three machines to contact the City for the required conditional use permits or to remove the additional machines. He advised that as of this date there were 5 or 6 businesses still in violation of the City Code. In his opinion, he felt that Angeio's is able to handle the five machines adequately with eight machines being the maximum the business could hold. Councilman Coronado felt that the Council would be setting a precedent by appro- ving this request and it would be unfair to deny other similar requests. The Community Development Director stated that the staff judges each case on its own merits and had reconm~ended approval primarily because Angelo's is located in the middle of a parking area, not directly adjacent to any residential or school areas. Mayor Mullen stated the he would not be able to support this application due to the fact that an application for beer and wine had been previously approved by the City Council and that this would not be consistent with past Council policy of prohibiting the sale of alcoholic beverages in conjunction with an arcade business. In addition he advised that he could not support an application that received citizens' opposition. Councilman Lacayo requested that staff prepare a report determining how many businesses have game machines and also serve alcoholic beverages. The Community Development Director advised that there are several businesses, such as pizza parlors, that serve beer and wine and have three or four machines who have been advised of the City Code and have not complied. He stated that in the arcade ordinance it states that if the arcade does not serve food, it cannot serve alcoholic beverages; but if it is a restaurant which caters to dining, the video machines are considered a temporary amusement on the property and alcoholic beverages are allowed. Mayor Mullen advised that he had no opposition to the permitted three, but he felt that the accessory use would gradually overshadow the restaurant use and also infringe upon the rights of others. Hilliard Warren, 5275 Vista Real,Cypress, felt that kids were using their lunch money to play the machines and he found it difficult to gain access to Angelo's because of the number of kids at the machines and he was opposed to all the machines. Raul Mora, 5963 Fiji Street, Cypress, stated that he was in opposition to the extra machines at this restaurant. Glen McClintock, 9845 Spruce Court, Cypress, indicated that he wrote the letter of opposition and in addition to the comments contained in the letter he felt that any business that has machines should have a bike rack in front of the establishment. The City Attorney stated that under Section 15E-4 of the Cypress City Code, a bicycle parking rack shall be provided inside the business premises or as replacement of a motor vehicle parking space directly adjoining the business establishment. Therefore, even if it is a restaurant~ if an arcade conditional use permit is granted, a bike rack is required. If the restaurant has less than four machines, it is not an arcade and a conditional use permit and bike rack are not required. The Mayor asked if anyone else wished to speak in opposition. Geraldine Smith, 5805 Wellson Drive, Cypress, spoke in opposition to the additional machines and supported the need for bike racks for the public safety. The Mayor stated that the applicant was entitled to rebut the opposing comments. Nikolas Vestakis, the applicant, stated that he does not actually want an arcade; he was merely complying with the City law in applying for a conditional use permit - 4- City Council Minutes August 9, 1982 189 in order to maintain the five machines. He said that adults as well as children play the machines and that he is on the premises the entire day and if the kids create a disturbance they are told to leave. It was moved by Councilman Lacayo and seconded by Mayor Mullen to close the Public Hearing and adopt the following Resolution by title only, title as follows, denying without prejudice the amendment to Conditional Use Permit #82-8 and authorizing the refund of the conditional use permit application fee: RESOLUTION N0~ 2547 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS DENYING ~qAMENDMENT TO CONDITIONAL USE PERbIIT NO. 82-8. Councilman Rowan stated that it was the right of any businessman to approach the Council to change any prior action of the Council and he felt that the five machines currently existing at Angelo's did not create a problem and was not intruding into the dining area nor infringing upon his rights. He further stated that he would judge future applications on their own merits and locations. The motion unanimously carried by the following roll call vote: AYES: 5 COUNCIL MEMBERS: NOES: 0 COUNCIL MEMBERS: ABSENT: 0 COUNCIL MEMBERS: Coronado, Lacayo, Partin, Rowan, and Mullen None None Councilman Lacayo moved to direct staff to take all necessary efforts to enforce the three machine limitation on those businesses violating the arcade ordinance. The City Attorney inquired as to whether this would include the filing of criminal and civil proceedings against those who did not comply. The Council agreed that at this time all businesses in violation should receive a strong worded letter from the City Council. Mayor Mullen seconded the motion and stated that if there is a problem in obtain- ing compliance to the ordinance, he would personally advocate a tax on each machine in order to be self-supporting in enforcing the law. If necessary, he instructed the City Attorney to return with an ordinance imposing such a tax for Council's consideration. Councilman Rowan stated that the ordinance should be reviewed in regards to the number of machines allowed without a conditional use permit. Councilman Coronado felt that the Council should enforce the ordinance to the letter of the law and not keep changing or amending the Code. The motion unanimously carried by the following roll call vote: AYES: 5 COUNCIL MEMBERS: NOES: 0 COUNCIL MEMBERS: ABSENT: 0 COUNCIL liEMBERS: Coronado, Lacayo, Partin, Rowan, and Mullen None None CONTINUATION OF RECONSIDERATION OF THE DISPOSITION OF THE EUCALYPTUS PARK BUILDING: The Mayor asked staff to present its report. Mr. Barrett summarized the staff report dated August 3, 1982, indicating that the City Council, at its meeting of June 28, 1982, continued this matter for a period of 90 days, after which time said building was to be demolished unless an appropriate party was found to accept the building as a gift. In the interim, members of the neighborhood watch groups in the area of Eucalyptus Park expressed an interest in the building to Councilman Lacayo and were here this evening to address this issue. The Acting City Manager advised that attached to the report was an informational memorandum from the Director of the Recreation and Park District concerning the -5- City Council Minutes August 9, 1982 existing condition and potential use of the building should it be renovated, along with an estimate of the renovation costs in the amount of $20,669.00 prepared by the Public Works Engineering Division. Councilman Lacayo stated that he was contacted by Charles Bell, a resident in the subject area, expressing the interest of the residents adjacent to the Eucalyptus Park of retaining the building. Councilman Lacayo indicated that he had requested the cost estimate from staff in order for the Council to be aware of the costs involved in renovating this highly vandalized building and to receive input from the residents as to how they would assist the City in the renovation process and why the City should not demolish it. The Mayor asked if there were anyone in the audience who wished to speak on this subject. Charles Bell, 5984 Fiji Street, Cypress, presented a petition containing 136 signatures of residents in the area who would like the City Council to recon- sider their decision to demolish the building and instead take steps to renovate it. He advised that the petitions indicated that some of the area residents were willing to donate their time and labor, if needed, to restore the building. Mr. Bell felt that the park, in the past, had not been utilized to its full advantage and although there were some classes held during the day, the residents would l~ke to see some classes held in the evening hours. Another concern was that the park was not lighted; he requested that the City install park lights so that the park could be used in the evening. Mr. Bell also submitted a cost estimate prepared by Conar Corporation in the amount of $15,174.00. In addition he advised that the people in the area would be willing to police the park at night to insure that no vandalism is occuring. He further stated that if the park was lighted it would eliminate the problem of having kids gather there to drink liquor and smoke pot. In response to Councilman Lacayo's inquiry, Mr, Bell stated that if the Council decided to renovate the building, the parents would be requested at the various neighborhood watch meetings to inform their kids of the actions taken to save the building and ask for their cooperation in keeping it free from vandalism. Councilman Coronado expressed his concern as to why the ~eople in the area did not do anything when all the vandalism was taking place and inquired as to what the group's plans for use and what type of cost sharing program they had in mind. Raul Mora, 5963 Fiji Street, Cypress, stated he supported Mr. Bell's request. He felt that the people wanted to keep it as a community park and that as a united group they would be able to patrol the park and prevent vandalism. He further stated that the park is a main bus stop for the school children and the building is used as a bus shelter on rainy days and it could also be used for their neighborhood watch meetings. Sue Creager, 5994 Fiji Street, Cypress, stated that the park and building had not been maintained properly. She has had to take her children to a park in Garden Grove because of all the broken glass and other poor condition of the park. The Recreation and Park Director stated tha~ the security lighting at the park was never designed for recreational use and that the lights were vandalized on a daily basis and due to Prop. 13 some maintenance repair work was postponed for a time. He further stated that there is a new design of lighting fixture that is much higher which may deter vandalism and these fixtures will be installed in the near future at six parks including the Eucalyptus Park play area. He advised that he was not aware of any current maintenance problem at the park other than occasional irrigation and mowing equipment problems. The park has a very high glass problem; however, a maintenance person is assigned to go on a regular basis to clean the sand area and, additionally, the park ranger has also been instructed to pick up any broken glass. - 6- City Council Minutes August 9, 1982 191 Councilman Rowan was concerned about Mrs. Creager's comment regarding an excess of $1.5 million left in the Parks budget which he stated was not true. He further emphasized that it was illegal to use City funds to pay for park and recreation buildings. He indicated that we need factual information in order to make a decision. Others speaking in support of retaining and renovating the building were: Joseph Reynolds, 11513 Manila Drive, Cypress Raymond Sieck, 11165 Lakia Drive, Cypress Pat Emamifar, 5735 Midway Drive, Cypress, asked why the children's activity classes were discontinued at the park. Responding to Mrs. Emamifar, the Recreation and Park Director stated that several different classes were held there with the largest program being the Day Camp Program which in 1978 was consolidated into the program held at Oak Knoll Park. Because of the heavy vandalism problem, participation in the classes had declined and even the contract instructors refused to work there. When the 1980 Anti- vandalism Action Plan was first discussed, the subject of whether to renovate or demolish this building was also discussed and all classes were discontinued at that time pending a decision of the disposition of the building. He further stated that if the building were renovated, the District would utilize the facility. In response to Mr. Bell's question regarding the lighting, the Recreation and Park Director advised that the lights would be installed in the overhang around the building and the new lighting fixture would be in the center of the play area on the west side of the park. The open space area would continue to be lighted only by the street lights. Sue Creager, 5994 Fiji Street, Cypress, again addressed the Council requesting that lights be installed in the entire park area as the kids congregate on the east side of the park which is totally obscured from sight. Responding to Councilman Partin's inquiry concerning the estimated cost to remove the building and restore the area, the Public Works Director stated that $5,000 was budgeted for that purpose. Councilman Partin indicated that this cost savings could be considered when determining the actual cost of the proposed building renovation. Councilman Rowan stated that there is no such thing as a vandal-proof lighting and also noted that the City's glass ordinance prohibits glass containers in parks. He suggested that Mr. Bell and the neighborhood watch group get together with staff to determine the extent of the volunteerism and what can be done. Councilman Lacayo stated that the only way a park is successful is if the neighborhood supports it, which he felt was demonstrated here tonight. Council- man Lacayo moved to: 1) Ask staff to develop for Council's review a neighborhood type program that would involve the neighbors in some type of activity to guarantee that vandalism will not occur as in the past; 2) Request staff to analyze the estimate submitted by the Conar Corporationi 3) Request staff to report on a full lighting program for the building and park area; and 4) Request staff to coordinate its efforts with the neighbors and neighborhood watch people interested in this project with a report to Council with suggested solutions as to where the money should be spent and who would do the work in order to, hopefully, be able to decide at the next meeting on whether to restore or demolish the building. The motion was seconded by Mayor Mullen and unanimously carried. Charles Bell, 5984 Fiji Street, Cypress, indicated that at the next Block Captains' meeting which will be on August 16, 1982, this subject will be discussed and efforts will be made to contact the people to determine how much talents and volunteerism are available. 192 City Council Minutes August 9, 1982 CONSENT CALENDAR: Mayor Mullen announced that all items listed on the agenda under "Consent Calendar" were to be considered by the Council as routine and will be enacted by one motion approving the recommendations listed on the agenda. It was moved by Mayor Mullen and seconded by Councilman Lacayo to approve Items #5 - 14a on the Consent Calendar. The motion unanimously carried by the follow- ing roll call vote: AYES: 5 COUNCIL MEMBERS: NOES: 0 COUNCIL MEMBERS: ABSENT: 0 COUNCIL MEMBERS: Coronado, Lacayo, Partin, Rowan, and Mullen None None Item #5: Motion to Introduce and/or Adopt Ail Ordinances Presented by Considera- tion by Title Only and to Waive Further Reading. Item ~6: Consideration of Vacancy for the Position of Alternate to the Senior Citizens Commission. Recommendation: That the City Council authorize staff to solicit applications for the position of Alternate to the Senior Citizens Commission. Item #7: Consideration of Proclaiming October 3 - 10, 1982, as "Bethany Manor Development and Learning Center Week" and Saturday, October 9, 1982, as "Bethany Manor Day". Recommendation: That the Mayor and City Council officially proclaim the week of October 3 - 10, 1982, as "Bethany Manor Development and Learning Center Week" and Saturday, October 9, 1982, as "Bethany Manor Day" in the City of Cypress. Item #8: Consideration of an Application for Alcoholic Beverage License Transfer Filed by Bandaly G. Saba, D.B.A. J & B Food Market, 4490 Lincoln Avenue, Cypress. Recommendation: Receive and file. Item #9: Consideration of an Application for an Original Alcoholic Beverage License Filed by Anita L. Patton, D.B.A. Sunshine Factory Florist, 5021 Ball Road, Cypress. Recommendation: Receive and file. Item #10: Consideration of Resolution From the City of Anaheim Opposing the Pro- posed Site for a Regional Airport Located Northeast of Santiago Canyon. Recommendation: Receive and file. Item #11: Consideration of Appraisal of Properties Adjacent to the Civic Center. Recommendation: That the City Council authorize staff to obtain a letter of appraisal for the properties located at 5361 and 5363 Wicker Drive (AP #244-451-02). Item #12: Consideration of Katella Avenue Project 409 Improvements From Lexington Drive to 560' East of Siboney Street, F.A.U. Project No. M-L030(1), City of Cypress Project No. 7623-10. Recommendation: That the City Council authorize an appropriation from the fund balance of the 2106 Gas Tax Fund and appropriate $6,878.31 to Account No, 22-4188- 469.21. Item #13: Consideration of Legislative Update Concerning AB 3283 (Robinson) Re- lating to Authorization for a County-wide Sales Tax Increase of Up to One Percent to Raise Funds for Transportation Improvements. Recommendation: Receive and file. Item #14: Consideration of Refunding Conditional Use Permit Application Fee for Straight Talk Clinic. -8- City Council Minutes August 9, 1982 Recommendation: That the City Council authorize the refunding of the conditional use permit application fee for Conditional Use Permit No. 82-2, Straight Talk Clinic, Inc. Item #14a: Consideration of Resolution of Commendation for Eagle Scout Westley N. (Lee) Follett. Recommendation: That the City Council adopt the Resolution by title only, title as follows, commending Eagle Scout Westley N. (Lee) Follett: RESOLUTION NO. 2548 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS COMPOUNDING BOY SCOUT WESTLEY N. (LEE) FOLLETT ON ACHIEVING THE RANK OF EAGLE SCOUT. CONSIDERATION OF SCHEDULING INTERVIEWS FOR APPOINTMENTS TO THE ORANGE COUNTY HEALTH PLANNING COUNCIL: The Council agreed to schedule interviews of the four applicants on Monday, August 23, 1982, beginning at 6:00 p.m. CONTINUATION OF CONSIDERATION OF PUBLIC UTILITIES COI~ISSION EXPLA2qATION OF SOUTHERN CALIFORNIA WATER COMPANY "BILL INSERT": The Acting City Manager pre- sented a report dated August 9, 1982, which indicated that the Public Utilities Commission has sent a detailed explanation to the City Council which did not fully explain the impact of the Economic Recovery Tax Act of 1981 which was quoted in the Southern California Water Company's bill insert. He stated that the Economic Recovery Act adopted by Congress provides for an investment tax credit through the accelerated depreciation provisions of the Act and if a utility or business uses the tax credit it has to utilize the normalization method of accounting which allows the business to postpone the payment of that tax until the later years when the depreciation actually decreases. In the past the PUC did not allow the utilities to use this method due to the fact that, in their opinion, a public utility differs from a private enterprise because of constantly expanding plant which would result in a utility never having a decreasing depreciation of value, i.e., never having to pay the tax collected from its customers. This method of accounting allows for utility companies to take advantage of the tax savings for the benefit of their manage- ment and shareholders as opposed to the previous method of passing on any savings to the customers. Hearing no objections, Mayor Mullen continued this matter to the next meeting in order to allow the Council to analyze the staff report and attachments. CONSIDERATION OF COMMUNICATION FROM ASSEMBLYMAN LARRY STIRLING CONCERNING A POSSIBLE STATE CONSTITUTIONAL AMENDMENT RELATING TO THE FINAL ADOPTION OF THE STATE BUDGET: It was moved by Councilman Lacayo and seconded by Mayor Mullen to approve the draft letter for the Mayor's signature to be sent to Assemblyman Larry Stifling relating to the final adoption date of the State budget. Councilman Coronado commented that he did not believe that the letter answered the concerns of Assemblyman Stirling in regard to a suggested date that the State budget should be finished and why; the positive and negative aspects associated with the current law; the expected fiscal impact of the proposed change; the ways in which the new proposal might alleviate old problems or create new ones particularly in the transition year. Following discussion, the Council agreed on the approach suggested in the draft letter requesting a long-term financing program whereby local revenues are well defined and permanent rather than being subject to annual modifications; thereby making cities independent of the State budgetary process. The motion was unanimously carried. -9- 194 City Council Minutes August 9, 1982 CONSIDERATION OF REPORT ON U.S. DEPARTMENT OF ENERGY GP~T FOR ELECTRIC VEHICLES: The Acting City Manager presented the staff report from the Public Works Director dated July 30, 1982, which indicated that the City is saving approximately $11,600 per year as a result of using the E.V.s in lieu of a minimum of seven internal combustion engined vehicles and would continue to save this type of money through the remainder of the grant. Responding to Councilman Lacayo's inquiry, the Public Works Director stated that as of 3/30/84 our agreement with the DOE would be terminated and the E.V.s would become City property without further obligation to the DOE. He stated that the E.V. program was providing transportation for City personnel for less than what it would cost the City by using gasoline powered automobiles. Mr. Schatzeder's reco~mnendation was to continue with the program until the expira- tion date of 3/30/84, at which time, a decision can be made as to the disposi- tion of the vehicles. It was moved by Mayor Mullen and seconded by Councilman Rowan to receive and file the staff report. In reply to Councilman Rowan, the Public Works Director stated that the reason for the savings was that the grant funds in the amount of $170,000 paid for the vehicles, spare parts, and battery replacement, which allows the City to demon- strate this program at the federal government's cost. Councilman Coronado stated that the DOE is being disbanded and wished to know who would be managing the program then. The Public Works Director advised that should the DOE be disbanded, their res- ponsibilities will be transferred to other separate departments and that he had been assured by John Smits, who heads this program, that the funding will continue and the federal government will continue to monitor the monthly reports until the end of the program. Councilman Coronado commented that he would support the City's E.V. program despite the fact that he has taken a negative position on this issue. Councilman Partin wished clarification of the report which stated that if the City gave up these 10 E.V.s, the City would have to get seven replacements. He wondered if the City were utilizing all 10 E.V.s or did we dispose of some vehicles. The Public Works Director stated that three vehicles were transferred to the Police Department to replace the leased vehicles used for undercover work and that the City at that time was short of vehicles for field personnel. Councilman Partin expressed his concern regarding the usefulness of the E.V.s at the end of the program. Mr. Schatzeder felt that the E.V.s would have some useful life remaining at the end of 2 - 3 years and that they are low in maintenance costs and simplier to work with than the gas powered automobiles. Councilman Coronado commented that electric vehicles age rapidly and maintenance costs would probably increase considerably at the end of the third year. The motion was then unanimously carried. CONSIDERATION OF APPROVAL OF COMMERCIAL WARRANT LIST: Mayor Mullen moved to approve the Warrant List for Warrants #72436-72458 in the total amount of $452,683.64. Councilman Coronado requested an explanation of all the voids in the Warrant List submitted. - 10 - City Council Minutes August 9, 1982 The Finance Director stated that the beginning warrant number on the computer generated checks were wrong; therefore, all those checks had to be cancelled. The motion was seconded by Councilman Lacayo and unanimously carried. CONSIDERATION OF INFORMATIONAL REPORT FROM THE SUPERINTENDENT OF THE CYPRESS ELEMENTARY SCHOOL DISTRICT CONCERNING THE VESSELS SCHOOL FIRE: The Acting City Manager reported that Superintendent William Calton had provided the City with a copy of the staff report for the special Board meeting held on Friday, August 6, 1982, in regards to the Vessels School fire. The report indicated that they had provided a 24-hour security patrol which will be retained until demolition is completed and a security fence around the damaged building had been set up. The demolition is expected to be completed by the end of the week and that the Board had proceeded to authorize emergency pro- cedures for reconstruction. He indicated that the special education classes will be relocated to Arnold School and the balance of the relocation will be within the school, utilizing the multi-purpose and administrative buildings. Temporary mobile units will be used for their staff and lounge facilities. They will be able to maintain Vessels School as an open school and recon- struction was to commence as soon as possible. Mayor Mullen stated that upon hearing about the fire, his concerns were on whether Morris School would be reopened and what impact it had on the City's contract for the traffic signal and regarding the relocation and reorganization of the crossing guards. He stated that by mid-afternoon, the School District staff had made all the determinations as reported and that he was proud'of the professionalism displayed by the District staff. Mayor Mullen requested that a communication be sent to the Board through Superintendent Calton indi- cating that the Council was very pleased with the immediate response and that our concerns for our part of the responsibility were immediately answered. SECOND R~A~ING OF ORDINANCE RE: CYPRESS LAND COMPANY'S DEVELOPMENT AGREEMENT: It was moved by Councilman Lacayo, seconded by Councilman Coronado to order the following Ordinance read by title only, title as follows, and to adopt the Ordinance: ORDINANCE NO. 693 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING A DEVELOPMENT AGREEMENT BETWEEN SAID CITY AND THE CYPRESS LAND COMPANY. The motion unanimously carried by the following roll call vote: AYES: 5 COUNCIL MEMBERS: NOES: 0 COUNCIL MF~ERS: ABSENT: 0 COUNCIL MEMBERS: Coronado, Lacayo, Partin, Rowan, and Mullen None None Councilman Partin requested staff to consider installing turning radius pavement markers with striping for the double left turn pocket at Valley View and Orange- wood. EXECUTIVE SESSION: Mayor Mullen called an Executive Session at 10:15 p.m, to discuss matters of litigation. The meeting was called back to order at 11:23 p.m., with all Council Members present. In regards to the landfills and transfer stations gate fees, Mayor Mullen moved that 1) The City of Cypress regrets being forced to go to litigation to have its opinions aired with the Orange County Board of Supervisors; 2) The City hopes that prior to filing suit, the Board invites the cities to participate with the Board in an open debate of the landfill and gate fee issue; 3) The City Council of the City of Cypress reluctantly agrees to participate in liti- gation against the County Board of Supervisors providing that at least 1/2 of the Orange County cities also participate; and 4) Staff is directed to communi- cate this action to each member of the Orange County Board of Supervisors. The motion was seconded by Councilman Partin and unanimously carried. - 11 - 196 City Council Minutes August 9, 1982 WRITTEN AND ORAL COMMUNICATIONS: No members of the audience spoke at this time. ADJOURNMENT: It was moved by Mayor Mullen, seconded by Councilman Lacayo and unanimously carried to adjourn the meeting at 11:25 p.m., until 6:00 p.m., August 23, 1982. ATTEST: MAYOR OF THE CITY OF CYPRESS ~/, :.~ ~ ~.~Z~//z~;.~i CITY CLERK'0F'T~E C~TY OF CYPRESS - 12 -