Minutes 86-11-10
242
MINUTES OF A REGULAR MEETING OF
THE CYPRESS CITY COUNCIL
HELD
November 10, 1986
The regular meeting of the Cypress City Council was called to order at 7:33 p.m. on Monday,
November 10, 1986, in the Cypress City Council Chamber, 5275 Orange Avenue, Cypress,
California, by Mayor Otto Lacayo.
PRESENT: Councilmembers Coronado, Kanel, Mullen, Partin &:. Lacayo
ABSENT: None
Also present were Darrell Essex, City Manager/City Clerk, Mark Huebsch, City Attorney,
and staff members Beardsley, DeCarlo, Eynon, Hurst, Leonard and Lowenberg.
PLEDGE OF ALLEGIANCE: The pledge to the flag was led by Councilms.n Partin.
ORAL COMMUNICATIONS: Mayor Lacayo asked if anyone in the audience wished to speak
in regard to any matter that was not on the agenda. No one wished to speak.
STAFF REPORTS &:. DISCUSSION: Mr. Essex reported that the City Council has been invited
to participate in the welcoming celebration for David Jacobsen which will be held on Friday,
November 14, at 1:30 p.m. at the Westminster Civic Center.
At the City Manager's request, the Mayor added the following items to the agenda: Item #22
regarding taxable investment revenue bonds, and Item #18a on the Consent Calendar
regarding a proclamation proclaiming November 23-29 as "Family Week".
Mr. Essex requested that the Council adjourn tonight's meeting to 6:30 p.m. on November 24
in order for the Council to hear a presentation by the Orange County Transportation
Commission staff on the Katella/Valley View fly-over. Mr. Beardsley reported that the
Commission's staff planned to review design concepts in the joint session with the Council.
The Council decided to consider certification of the election and reorganization of the
Council at 6:30 p.m., followed by the study session with the Transportation Commission.
Councilman Coronado stated it was reported to him that Hollywood Park plans to start
demolition of the Los Alamitos golf course tomorrow. He suggested that the City call for an
injunction to stop the activity pending the outcome of the referendum. He asked if a City
permit is required for demolition of a building. Mr. Beardsley advised that City permits
would be required for demolition and grading. Mr. Essex stated he was not informed that
Hollywood Park planned to start demolition.
Mr. Ken Nungesser, Administrative Manager of Hollywood Park, stated he was unaware
whether Hollywood Park planned to begin demolition of the golf course and that he would
normally be advised about such a matter.
The City Attorney recommended that this matter be discussed in Executive Session since it
relates to the possible initiation of litigation.
Councilman Partin asked for the City Attorney's ruling on his qualifications to act on Council
agenda items between now and November 24. Mr. Huebsch stated he knew of no factors
which would disable Councilman Partin from participating.
PUBLIC HEARING HE: CONDITIONAL USE PERMIT #86-28 - EXPANSION OF SIZZLER
RESTAURANT, 5894 LINCOI"N AVENUE: Mayor Lacayo opened the public hearing. The
Planning Director summarized a report dated November 3 describing the application to
expand the existing Sizzler Restaurant from 3,170 to 5,560 square feet, and to expand the
sale of beer and wine. Staff recommended approval of the project subject to 29 conditions.
Mayor Lacayo asked if anyone wished to speak in support or in opposition to the application.
No one wished to speak.
243
City Council Minutes
November 10, 1986
It was moved by Councilman Mullen and seconded by Councilman Kanel to close the public
hearing and adopt the Resolution by title only, title as follows, approving C.U.P. #86-28
subject to the 29 conditions recommended by staff:
RESOLUTION NO. 3159
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
APPROVING CONDITIONAL USE PERMIT NO. 86-28 - WITH
CONDITIONS.
The motion unanimously carried by the following roll call vote:
A YES:
NOES:
ABSENT:
5 COUNCIL MEMBERS: Coronado, Kanel, Mullen, Partin & Lacayo
o COUNCILMEMBERS: None
o COUNCILMEMBERS: None
CONSIDERATION OF AWARD OF CONTRACT FOR ASPHALTIC CONCRETE: The City
Manager presented a report from the Finance Director dated October 29 recommending
renewal of the contract with All American Asphalt.
Councilman Mullen asked whether renewing the contract would result in the best price for
the City versus competitive bidding, and he requested that staff perform a survey to
ascertain that the City will be getting the best price.
There being no objections, the Mayor continued this item to the November 24 meeting.
CONSIDERATION OF REJECTION OF BID RECEIVED FOR ACOUSTICAL WALLS AND
CEILING PANELS FOR THE POLICE DEPARTMENT, REQUEST FOR QUOTATION #8687-
09: The City Manager presented a report from the Finance Director dated November 3
indicating that bids were requested from eight contractors and one bid was received which
exceeded the amount budgeted for this project by 29%. Staff requested authorization to re-
bid the project.
It was moved by Councilman Mullen and seconded by Councilman Partin to reject the bid
received from Brandon R.G. & Company, Inc. pursuant to City Code Section 21A-11d for the
reasons outlined in the report and authorize the Purchasing Officer to re-bid this project.
The motion unanimously carried by the following roll call vote:
A YES:
NOES:
ABSENT:
5 COUNCILMEMBERS: Coronado, Kanel, Mullen, Partin & Lacayo
o COUNCILMEMBERS: None
o COUNCILMEMBERS: None
CONSIDERATION OF REPLACEMENT OF ONE (1) TELEVISION MONITOR: Mr. Essex
presented a report from the Finance Director dated November 3 which recommended the
replacement of the TV monitor in the Police Department Dispatch Center.
It was moved by Councilman Mullen and seconded by Councilman Partin to: (1) appropriate
$234.00 from the fund balance of the Central Services Fund to Account #4849-90-656-35; and
(2) authorize the purchase of one (1) television monitor from Bornstein Company, 22616
Victory Boulevard, Woodland Hills, California, in the amount of $233.20. The motion
unanimously carried by the following roll call vote:
A YES:
NOES:
ABSENT:
5 COUNCILMEMBERS: Coronado, Kanel, Mullen, Partin & Lacayo
o COUNCILMEMBERS: None
o COUNCILMEMBERS: None
CONSIDERATION OF AWARD OF CONTRACT FOR THE CONSTRUCTION OF
ELECTRICAL PHASE m AT ARNOLD/CYPRESS PARK, CITY OF CYPRESS PROJECT
#8651-90: Mr. Essex presented a report from the Public Works Director dated November 3
listing 11 bids received. The Recreation & Park Director reported that this is Phase m of a
four-phase project and it will provide proper electrical service to various fields. Completion
of this phase would make it possible to proceed with Phase IV which would create lighting for
practice fields.
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244
City Council Minutes
November 10, 1986
Acting as the ex officio governing Board of Directors of the Cypress Recreation and Park
District, it was moved by Councilman Mullen and seconded by Councilman Kanel to
determine that the lowest responsible bidder for Project #8651-90 is Mel Smith Electric, Inc.,
8520 Central Avenue, Stanton, California, and award them the contract for the Electrical
Phase III at Arnold/Cypress Park in the amount of $33,658.00. The motion unanimously
carried by the following roll call vote:
""""'--'t~
A YES:
NOES:
ABSENT:
5 COUNCILMEMBERS: Coronado, Kanel, Mullen, Partin & Lacayo
o COUNCILMEMBERS: None
o COUNCIL MEMBERS: None
CONSENT CALENDAR: All items listed on the agenda under "Consent Calendar" are to be
considered by the Council as routine and enacted by one motion approving the
recommendations on the agenc1a.
Councilman Coronado requested that Item #18 be removed for discussion.
It was moved by Councilman Coronado and seconded by Councilman Kanel to approve
Consent Calendar Items #6 through #18a with the exception of Item #18. The motion
unanimously carried by the following roll call vote:
A YES:
NOES:
ABSENT:
5 COUNCILMEMBERS: Coronado, Kanel, Mullen, Partin & Lacayo
o COUNCILMEMBERS: None
o COUNCIL MEMBERS: None
Item #6: Motion to Approve City Council Minutes of the Regular Meeting of October 27,
1986.
Recommendation: That the City Council approve the Minutes of October 27, 1986, as
submitted, with Councilman Mullen abstaining due to his absence at the meeting.
Item #7: Motion to Introduce and/or Adopt All Ordinances Presented for Consideration by
Title Only and to Waive Further Reading. -
Item #8: Consideration of Proclaiming November 16-22, 1986, as "American Education
Week".
Recommendation: That the Mayor and City Council officially proclaim November 16-22,
1986, as "American Education Week" in the City of Cypress as requested.
Item #9: Consideration of Claim Filed by Lawrence R. Fieselman, Attorney, On Behalf of
Ricky Karsting, Dawn Karsting, Brandi Karsting, and Stephen Karsting.
Recommendation: That the City Council officially reject the subject claim and refer it to
the City's Claims Administrator, Carl Warren & Company, for appropriate disposition.
Item #10: Consideration of House Number Painting on Curbs by Kennedy High School Band.
Recommendation: That the City Council direct staff to issue a permit to Kennedy High
School Band and Color Guard Booster Club to paint house numbers on curbs in Districts 35,
36, 41, 42, 46, 47 and 48.
Item #11: Consideration of Annual Arterial Highway Financing Program Submittal, City of
Cypress Project #8609-10 (Katella Avenue).
Recommendation: That the City Council adopt the Resolution by title only, title as follows,
for the following project requesting inclusion in the 1987/88 Fiscal Year Arterial Highway
Financing Program: Katella Avenue from Holder Street to Valley View Street:
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RESOLUTION NO. 3160
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
REQUESTING THE COUNTY OF ORANGE TO INCLUDE WITHIN THE
ARTERIAL HIGHWAY FINANCING PROGRAM THE IMPROVEMENT OF
KA TELLA AVENUE.
Item #12: Consideration of Status Report on the Recreation Vehicle Parking Study.
Recommendation: Receive and file.
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City Council Minutes
November 10, 1986
Item #13: Consideration of Proposed Temporary and Seasonal Compensation Plan
Amendment.
Recommendation: That the City Council adopt the Resolution by title only, title as follows,
amending the Compensation Plan for Temporary and Seasonal Employees as outlined in the
report:
RESOLUTION NO. 3161
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
AMENDING RESOLUTION NO. 3033 ESTABLISHING SALARIES FOR
TEMPORARY AND SEASONAL EMPLOYEES NOT PLACED UNDER.
THE GENERAL COMPENSATION PLAN BY AMENDING THE SALARY
OF POLICE OFFICER TR.AINEE.
Item #14: Consideration of Proposed Position Classification and Compensation Plan
Amendment.
Recommendation: That the City Council adopt the Resolution by title only, title as follows,
amending the Position Classification and Basic Compensation Plan as outlined in the report:
R.ESOLUTION NO. 3162
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
AMENDING RESOLUTION NO. 975 BY ADDING AND AMENDING
CERTAIN CLASS SPECIFICATIONS TO THE POSITION
CLASSIFICATION PLAN FOR EMPLOYEES IN THE SERVICE OF THE
CITY OF CYPRESS.
Item #15: Consideration of Amendment to the City of Cypress Resolution No. 970 Promoting
Improved Relations and Communications Between the City of Cypress and Its Employees.
Recommendation: That the City Council adopt the Resolution by title only, title as follows,
to amend Resolution No. 970 and provide a recognition procedure in the rival union context:
RESOLUTION NO. 3163
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
AMENDING RESOLUTION NO. 970, PROVIDING FOR. RECOGNITION
PROCEDURES IN THE RIVAL UNION CONTEXT.
Item #16: Consideration of Acceptance of Final Parcel Map #85-428 (9131 Watson Street).
Recommendation: That the City Council approve Final Parcel Map #85-428 and authorize
the City Clerk to sign the record map.
Item #17: Consideration of Appropriation of Additional Funds for Replacement of Street
Trees.
Recommendation: That the City Council authorize the transfer of $8,600.00 from the
unencumbered balance of Account #4186-11-477-24 (Civic Center Railings Project) to
Account #4111-11-216-08 (Tree Maintenance Materials) for purchase of street trees and
appurtenances.
Item #18a: Consideration of Proclaiming November 23-29, 1986, as "Family Week" in the
City of Cypress.
Recommendation: That the Mayor and City Council officially proclaim November 23 - 29,
1986, as "Family Week" in the City of Cypress.
In regard to Item #18, Consideration of an Additional Appropriation for the Rental of a
Central Telephone Switch on a Temporary Basis, Councilman Coronado asked if the telephone
system was damaged by vandalism and what steps were being taken to prevent future
problems. Nancy Leonard reported that a power outage occurred on October 27 when the
system's main power supply failed probably due to the fact that the system is 10 years old.
Staff was able to locate a replacement power supply and is in the process of studying the
telephone system and anticipates going to bid next month for a new system. In the meantime
staff recommended the lease of a new central switch on a month-to-month basis. She
reported that the 911 service was unaffected by the power outage.
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246
City Council Minutes
November 10, 1986
It was moved by Councilman Coronado and seconded by Councilman Mullen to authorize: (1)
staff to enter into a month-to-month rental agreement with Standard Telephone, 2699 E.
28th Street, Long Beach, California, at the rate of $2,840 per month for the rental of a Mitel
SX-200 superswitch system beginning November 1, 1986; and (2) an additional appropriation
of $15,360 from the fund balance of the City's Internal Service Fund to Account #4215-90-
604-03 in the amount of $11,360, and to Account #4160-90-604-03 in the amount of $4,000.
The motion unanimously carried by the following roll call vote:
P-"""'if',
A YES:
NOES:
ABSENT:
5 COUNCILMEMBERS: Coronado, Kane1, Mullen, Partin &. Lacayo
o COUNCIL MEMBERS: None
o COUNCIL MEMBERS: None
CONTINUATION OF CONSIDERATION OF POSSIBLE CONFLICT OF MAYOR LACAYO
SERVING ON THE CITY COUNCIL AND ON THE NORTH ORANGE COUNTY COMMUNITY
COLLEGE DISTRICT'S BOARD OF TRUSTEES: Mayor Lacayo asked for the City Attorney's
report.
The City Attorney reported that he reviewed the statutes dealing with conflict of interest
and incompatibility of positions and he did not perceive any conflict of interest as the
terminology is used the Government Code. He stated he found no reported decision by the
Attorney General concerning the position of City Councilmember and member of a governing
board of a Community College District. Mr. Huebsch stated his conclusion was that, under
existing law, even where positions are incompatible and a member acts as a de facto officer,
his actions are not invalidated by reason of any incompatibility.
Councilman Coronado asked if the City Attorney was aware of an opinion (#23507) by the
California Legislative Counsel concerning incompatibility of offices. Mr. Huebsch stated he
had not read the opinion and could not comment. He stated the Legislative Counsel renders
opinions which are advisory and they are not published and disseminated on the same basis as
opinions from the Attorney General which are regarded as the authority in this area.
Councilman Mullen requested that a copy of the Legislative Counsel's opinion be mailed to
him this week.
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Mayor Lacayo stated that his votes on the Council since 1970 have never dealt with Cypress
College. He indicated that the only instance when a College or District matter came before
the City Council was in 1982 when the College proposed to operate a swap meet. Attorneys
for the Community College District advised that Government Code Section 53091 permits
cities to require a school district to comply with zoning ordinances in order to establish a
school but does not permit a city or county to regulate the operation of a school once it has
been established. Mayor Lacayo stated the city Council decided not to require the College
to apply for a conditional use permit and the swap meet has been operating with the City's
cooperation. Mayor Lacayo indicated that he was aware of the conflict of interest issue
when he ran for the District office in 1985.
There being no further comments, the Mayor moved to receive and file the report.
CONSIDERATION OF APPROVAL OF COMMERCIAL WARRANT LIST FOR WARRANTS
#17503 - 17735: It was moved by Councilman Mullen and seconded by Councilman Partin to
approve the Warrant List for Warrants #17503 through #17735 in the amount of
$721,671.88. The motion unanimously carried by the following roll call vote:
A YES:
NOES:
ABSENT:
5 COUNCIL MEMBERS: Coronado, Kanel, Mullen, Partin &. Lacayo
o COUNCILMEMBERS: None
o COUNCIL MEMBERS: None
SECOND READING OF ORDINANCE RE: AMENDMENT TO THE ZONING ORDINANCE
#86-4 (HOTELS/MOTELS IN PC ZONE #1): It was moved by Councilman Mullen and
seconded by Councilman Partin to adopt the Ordinance by title only, title as follows:
~~
ORDINANCE NO. 768
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
AMENDING SECTION 3.H. OF THE PLANNED COMMUNITY ZONE NO.
1 OF ORDINANCE NO. 640, THE ZONING ORDINANCE OF THE CITY
OF CYPRESS, KNOWN AS AMENDMENT TO THE ZONING
ORDINANCE NO. 86-4.
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247
City Council Minutes
November 10, 1986
The motion unanimously carried by the following roll call vote:
A YES:
NOES:
ABSENT:
5 COUNCIL MEMBERS: Coronado, Kanel, Mullen, Partin &. Lacayo
o COUNCILMEMBERS: None
o COUNCIL MEMBERS: None
In regard to Item #22 added to the agenda, Mr. John Murphy, of the law firm of Stradling,
Yocca, Carlson &. Rauth, made a presentation on taxable investment revenue bonds which
could be issued by the City to obtain money for capital improvements. Mr. Murphy described
specifics of the bond program and indicated that the program was presented for staff's
consideration after he and representatives of Dean, Witter, Reynolds were able to determine
that the City would have no exposure for liability in the event that the bonds went into
default, and that the bond program would accomplish what it intended for the City. Mr.
Murphy stated the ability to make the program work depends on the availability of an
insurance company willing to write a guaranteed investment contract at a rate sufficiently
attractive to make the program worthwhile for the City. He reported that a broker for
Dean, Witter, Reynolds has presented the concept to life insurance companies and the broker
believes they may have a commitment this week on the part of such a company to write a
guaranteed investment contract. Mr. Murphy indicated that, with the opportunity potentially
available to the City, he prepared a Resolution pursuant to which the Council would
authorize the issuance and sale of the bonds in an amount not to exceed $300 million. Mr.
Murphy reviewed the criteria for issuance of the bonds as contained in the Resolution.
Councilman Mullen announced that he was advised by the City Attorney to withdraw from
the discussion and decision-making in this matter because of his long employment with Sears
and his holding sufficient interest in Sears shares of stock and due to the fact that Dean,
Witter, Reynolds would be the bond underwriter for this program. Councilman Mullen left his
seat on the podium.
Councilman Coronado asked how many charter cities were engaged in the bond program. Mr.
Murphy indicated that several entities outside of California have issued bonds secured by
guaranteed investment contracts but he was unaware of any in California which has adopted
the program although there are five cities which are giving it active consideration.
Councilman Coronado expressed concern with litigation costs which might be associated with
the program. Mr. Murphy indicated that if there were a default on the bonds by the life
insurance company defaulting on its obligation under the guaranteed investment contract, it
is possible that the City would be put to the cost of defending itself in litigation. Mr. Murphy
stated they do not believe there is any basis for liability of the City, and the City would not
be liable for the repayment of the bonds.
Councilman Kanel indicated that he was opposed to the bond program because of the risks
involved. Councilman Coronado stated he was not in favor of taking action until the new
Councilmembers are seated and he recommended that the matter be continued to the next
meeting. Mr. Essex indicated that the new Councilmembers were briefed on this issue before
tonight's meeting.
Mr. Murphy stated the proposal was presented this evening because of the fact that the
investment bankers may have a commitment available to them this week.
Mayor Lacayo suggested that a portion of the proceeds to the City could be set aside in a
litigation fund. He indicated that the bond program was an excellent opportunity to obtain
funds for the senior citizen project. He stated he was not concerned that there would be
liability to the City. Mayor Lacayo asked if the Council would be obligated to issue the
bonds if they adopt the Resolution tonight. Mr. Murphy indicated that if the Council adopts
the Resolution and the criteria set forth in the last section are met then the City would be
able to commit to sell the bonds and there would be an obligation to proceed. In the absence
of action between now and the next meeting, the Council could rescind the Resolution.
Councilman Partin indicated that the return to the City was less than the figures previously
discussed and that the $1/2 million would not do much for the City. He indicated he would
support the program if the minimum return to the City was a more plausible amount which
would do some good and he suggested a minimum of $2 million. Mr. Essex indicated that a
$100 million issue was suggested because the insurance company which is interested may not
want to begin with a $300 million issue. Councilman Partin stated he would support the
program with a minimum .796 return to the City.
Hearing no objections, the Mayor continued this item to the next meeting.
In regard to the welcome home celebration for David Jacobsen on November 14, the Mayor
requested that Councilmembers notify the City Manager if they plan to attend and that staff
contact the School District about sending City representation.
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City Council Minutes
November 10, 1986
EXECUTIVE SESSION: The Mayor called an Executive Session at 8:53 p.m. for matters of
litigation. The Council reconvened at 9:10 p.m. with all Members present.
ADJOURNMENT: Mayor Lacayo adjourned the meeting at 9:10 p.m. to Monday, November
24, at 6:30 p.m.
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MA"tIYOF THE ~ CYPRESS
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