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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. -2- 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: - 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. -3- 245 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. -4- 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. - 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. -5- 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. -6- 218 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. ~k MA"tIYOF THE ~ CYPRESS ~ ATTEST: ~, !~ ~41C ~ CITY CL Il F THE etTY OF CYPRESS - "-""~ -7-