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Minutes 2003-03-1094 MINUTES OF A REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD March 10, 2003 A joint regular meeting of the Cypress City Council and Redevelopment Agency was called to order at 5:38 p.m. by Mayor /Agency Chair McCoy in the Executive Board Room, 5275 Orange Avenue, Cypress, California. PRESENT: Council Members /Agency Board Members McGill, Piercy, Sondhi, Mayor /Agency Chair McCoy ABSENT: Mayor Pro Tem /Agency Vice Chair Keenan STAFF PRESENT: City Manager, City Attorney, Director of Finance and Administrative Services, Community Development Director, Public Works Director, Recreation and Community Services Director, Assistant Community Development Director, Housing Coordinator, and City Clerk. The Community Development Director stated that on January 13, 2003, the Redevelopment Agency adopted a Comprehensive Affordable Housing Strategy, which included six recommendations. One of the recommendations was to potentially create a hybrid homeownership program in the current for sale housing projects that are being proposed along Lincoln Avenue. This would assist the Agency in meeting its Inclusionary Housing Obligations. The City is currently deficient in approximately 84 units over the life of the redevelopment plans. He stated an Inclusionary Housing Policy will be presented for consideration by the Agency at a future meeting. Staff has spoken with Cypress College regarding creating affordable housing on the campus and discussions have also been held with housing organizations, developers, and current property owners. The Community Development Director stated a proposed residential townhome development on Lincoln Avenue within the Lincoln Avenue Redevelopment Project Area appears to be well suited to the hybrid homeownership recommendation included in the Strategy. The building configuration, unit sizes, and proposed sale prices make the townhomes affordable in terms of market rate. Staff has met with the developer to determine if he would be interested in not only meeting his 15% requirement but also the possibility of getting more units above that, which the developer is willing to explore. Felise Acosta, Rosenow Spevacek Group, stated that the developer's financial analysis was used to prepare a basic analysis that showed their cost and revenue expected and to confirm their information. A sensitivity analysis was done to determine if the developer could provide the two affordable units required by redevelopment law and still maintain a level of profitability that was adequate. It was determined that it was feasible to provide two affordable units. She stated an analysis was done to determine the impact to the developer if five affordable units were provided. It was determined that it would require $170,000 to $180,000 in additional revenue to the developer to make the project profitable at an acceptable level. The Community Development Director stated if the Agency chose to participate in this partnership with the developer, the money would not be given directly to the developer but made available to the homebuyers. The funds for the project would come from the Low and Moderate Income Housing Fund. CITY COUNCIL MINUTES MARCH 10, 20Qi, r Council Member Piercy asked if the developer would be providing the two low income units in the project. The Community Development Director stated the developer is only obligated to provide one very low income and one moderate income unit. He stated the Agency's contribution of $175,000 equals three moderate and about one half of one of the low units. The City Attorney reported that the City Council would be meeting in a Joint Closed Session with the Redevelopment Agency regarding Conference with Legal Counsel — Anticipated Litigation, pursuant to Government Code Section 54956.9(b), Number of Cases: One. The City Attorney reported that the Redevelopment Agency would be meeting in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8, Real Property Identified by APN Numbers 241 - 091 -27, 241- 091 -28, 241 - 091 -29, 241 - 091 -30, 241 - 091 -33, and 241 - 091 -34; Consisting of approximately 18 Acres at Northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area, Negotiating Party: Executive Director, Deputy Executive Director, and Agency Counsel; Under negotiation: Price and Terms of Payment. At 6:10 p.m., the Mayor recessed the meeting. 7:00 P.M. SESSION: The 7:00 p.m. session of the City Council meeting was called to order at 7:15 p.m. by Mayor McCoy. PRESENT: Council Members McGill, Piercy, Sondhi, Mayor McCoy ABSENT: Mayor Pro Tem Keenan STAFF PRESENT: City Manager, City Attorney, Director of Finance and Administrative Services, Community Development Director, Chief of Police, Public Works Director, Recreation and Community Services Director, Assistant Community Development Director, Associate Planner, and City Clerk. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council Member McGill. INVOCATION: The invocation was given by City Attorney Wynder. REPORT OF WORKSHOP AGENDA/CLOSED SESSION: The Mayor asked for the report of the Workshop Agenda items discussed earlier in the evening. The City Manager reported that staff presented to the Council for consideration a concept to provide an affordability component in a housing project that could be located on Lincoln Avenue. The three redevelopment project areas in the City have requirements of low and moderate income housing types and this concept would assist in fulfilling that obligation. The Mayor asked for the report of the Closed Session Agenda items discussed earlier in the evening. The City Attorney reported that the City Council met in a Joint Closed Session with the Redevelopment Agency regarding Conference with Legal Counsel — Anticipated Litigation, pursuant to Government Code Section 54956.9(b), Number of Cases: One. The City Attorney stated the City is considering whether to initiate litigation in one case. 2 CITY COUNCIL MINUTES MARCH 10, 2003 ` n C A brief status report was provided on the issues, facts, and circumstances that could give rise to the initiation of litigation. The City Attorney reported that the Redevelopment Agency met in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8, Real Property Identified by APN Numbers 241 - 091 -27, 241 - 091 -28, 241 - 091 -29, 241 - 091 -30, 241 - 091 -33, and 241 - 091 -34; Consisting of approximately 18 Acres at Northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area, Negotiating Party: Executive Director, Deputy Executive Director, and Agency Counsel; Under negotiation: Price and Terms of Payment. The City Attorney stated a status report was provided on on -going negotiations regarding the potential sale and /or development of this site. The City Attorney stated that Council Member /Agency Board Member Sondhi did not participate in previous Closed Sessions because those discussions involved the entire 300 acre Los Alamitos Race Track and Golf Course Redevelopment Project Area and not just individual sites. Under the Political Reform Act and Conflict of Interest rules that have been developed, if a member of the Redevelopment Agency owns property in proximity to any portion of the project area, it would disqualify them from participating in connection with anything relating to the entire project area. Now that the lawsuits have been resolved with the Los Alamitos Race Track and issues have been resolved with Cottonwood Christian Center with respect to the entire project area, a new radius map was done and property measured for each Agency Member's ownership of real property in proximity to the individual parcels. Legal counsel has concluded that there would be no conflict of interest for all of the members of the Agency to participate on this site with these assessor parcel numbers. No other action was taken in Closed Session, nor was any solicited. ORAL COMMUNICATIONS: LIMITED TO ONE -HALF HOUR. (THREE MINUTES PER SPEAKER, SPEAKING ONCE.) Mayor McCoy asked anyone who wished to speak on any topic not included on the meeting Agenda to come forward. Mary Crowder, Cypress, spoke regarding wood chips in playground sandboxes, support of the re- opening of Holder Street, opposition to the recent letter to the editor in a local newspaper regarding the City Council, opposition to letters and public comments from Gail Kerry, and the contract with Briggeman Disposal. Vicki and Kimmy Griffin, Cypress, spoke regarding wood chips in playground sandboxes. James Caiopoulos, Galaxy Oil Company, commended City staff and presented a "Golden Shovel Award" to the Council in recognition of staff's assistance with the Galaxy Cypress /Chevron Subway project on the southwest corner of Lincoln and Moody. He invited the City Council, City employees, and the public to the grand opening events at the Chevron /Subway station on March 14 -16, 2003. Greg Vena, Costco Wholesale, spoke in support of Agenda Item No. 8. Mary Parmenter, Cypress, spoke in opposition to the re- opening of Holder Street. Robin Onodera, Cypress, spoke in opposition to the re- opening of Holder Street. PUBLIC HEARINGS: 7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL). 3 CITY COUNCIL MINUTES MARCH 10, 2003 9'7 Item No. 1: PUBLIC HEARING REGARDING A REQUEST TO APPROVE CONDITIONAL USE PERMIT NO. 2002 -19 AND TENTATIVE TRACT MAP NO. 16460 FOR THE CONSTRUCTION OF SIXTY -THREE (63) CONDOMINIUM UNITS ON THE PROPERTY LOCATED AT THE NORTHEAST CORNER OF LINCOLN AVENUE AND SUMNER PLACE (4801 LINCOLN AVENUE) IN THE PC PLANNED COMMUNITY ZONE, LINCOLN AVENUE SPECIFIC PLAN AREA. The Associate Planner provided background information on the item. Council Member Sondhi asked about trash bin /collection requirements. The Associate Planner stated each project is evaluated on a case -by -case basis. The public hearing was opened. The applicant, Jeffrey Lee, Nevis Homes, stated the standard trash bin amounts are double trash bins for every 10 to 15 units. The bins are very large and are emptied twice a week. He stated it is cost prohibitive to provide low and moderate income units and he would like to ask the Council to remove the low income units requirement. Mayor McCoy asked if there was anyone who wished to speak in favor of the item. The following persons spoke in favor of the project: Rickey Jones, Cypress Raul Sanchez, Cypress David Dugoncevic, Cypress Mayor McCoy asked if there was anyone who wished to speak against the item. Chris Calkins, Cypress, spoke in opposition of the project. Mr. Lee stated the two issues that residents have concerns about are traffic and parking. He stated some of the residents would like to see a signal installed at Sumner and Lincoln and the curb outside of the project painted red to prohibit parking. The public hearing was closed. Council Member McGill asked about the sewer system at Lincoln and Moody, and the issues relating to traffic. The Public Works Director stated that staff would like to resolve the traffic related issues and would accept the applicant's submittal of a sewer plan that is acceptable to the City Engineer, prior to occupancy of the project. Council Member McGill asked staff to address the affordability index or quotient and how the City can assure there isn't built -in blight. The Community Development Director stated the project is located in the Lincoln Avenue Redevelopment Project Area and under California redevelopment law, the Agency is required to ensure that not fewer than 15% of the total units constructed are available to persons of low to moderate income. By law, four of the units would need to be reserved for very low- income households. Staff has proposed that, in lieu of imposing the very low- income requirement, which would result in a financial hardship, that the applicant provide four low- income units and six moderate - income units. He stated the covenant units would look just like all the rest of the units in the project but would be occupied by people who are income eligible. The covenants would be regulated by the Cypress Redevelopment Agency and the owners of the units. A homeowners association would be in place that would ensure the maintenance and operation of the project. 4 CITY COUNCIL MINUTES MARCH 10, 200h 98 Council Member Sondhi stated she would like to see the low and moderate income units dispersed throughout the complex and asked about the possibility of a traffic signal at the intersection in the future. The Public Works Director stated the State of California has established a set of guidelines with different warrants that can be used to consider the installation of a traffic signal, which includes the amount of pedestrian traffic, volume of traffic, number of traffic accidents, and other combinations of factors. The intersection does not meet the warrant for pedestrian traffic and the volumes of traffic on the side streets are below the thresholds for considering a traffic signal. If, in the future, the volumes or other factors increase, the City could do another warrant analysis of the intersection. He stated the parking and left turn issue on Sumner would be reviewed. The Assistant Community Development Director stated that, based on the issues addressed by the developer and City Council, staff would recommend modifying Condition Nos. 35, 38, 49 and 76. It was moved by Council Member Sondhi and seconded by Council Member Piercy, to adopt the Resolutions by titles only, approving Conditional Use Permit No. 2002 -19 — With Conditions and approving Tentative Tract Map No. 16460 — With Conditions, as amended. The motion was unanimously carried by the following roll call vote: AYES: 4 COUNCIL MEMBERS: McGill, Piercy, Sondhi and McCoy NOES: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Keenan RESOLUTION NO. 5638 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, APPROVING CONDITIONAL USE PERMIT NO. 2002 -19 — WITH CONDITIONS. RESOLUTION NO. 5639 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, APPROVING TENTATIVE TRACT MAP NO. 16460 — WITH CONDITIONS. CONSENT CALENDAR: All matters listed on the Agenda under "Consent Calendar" are to be considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the Agenda. It was moved by Council Member Sondhi and seconded by Council Member Piercy, to approve Consent Calendar Items No. 2 through 5. The motion was unanimously carried by the following roll call vote: AYES: 4 COUNCILMEMBERS: McGill, Piercy, Sondhi and McCoy NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Keenan Item No. 2: APPROVAL OF CITY COUNCIL MINUTES OF THE MEETINGS OF FEBRUARY 24, 2003. Recommendation: That the City Council approve the Minutes of the Meetings of February 24, 2003, as submitted, with Council Member McGill abstaining on the Regular Meeting Minutes due to his absence from the meeting. 5 CITY COUNCIL MINUTES MARCH 10, 20 Item No. 3: MOTION TO INTRODUCE AND /OR ADOPT ALL ORDINANCES AND RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO WAIVE FURTHER READING. Item No. 4: PROCLAIMING MARCH 15, 2003, AS "ARBOR DAY" IN THE CITY OF CYPRESS. Recommendation: That the Mayor and City Council officially proclaim March 15, 2003, as "Arbor Day" in the City of Cypress. Item No. 5: APPROVAL OF COMMERCIAL WARRANT LIST FOR WARRANTS NO. 58140 THROUGH 58346. Recommendation: Approve the attached warrant register. END OF CONSENT CALENDAR ORDINANCES: (SECOND READING) Item No. 6: SECOND READING OF ORDINANCE ADOPTING AMENDMENT NO. 1 TO THE GRINDLAY /ORANGE SPECIFIC PLAN ADDING A RESIDENTIAL ALTERNATIVE FOR THE PROPERTY LOCATED AT THE NORTHWEST CORNER OF GRINDLAY STREET AND ORANGE AVENUE. It was moved by Council Member Piercy and seconded by Mayor McCoy, to adopt the Ordinance by title only, adopting Amendment No. 1 to the Grindlay /Orange Specific Plan for the properties located at the northwest corner of Grindlay Street and Orange Avenue. The motion was unanimously carried by the following roll call vote: AYES: 4 COUNCILMEMBERS: McGill, Piercy, Sondhi and McCoy NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Keenan ORDINANCE NO. 1039 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, ADOPTING AMENDMENT NO. 1 TO THE GRINDLAY /ORANGE SPECIFIC PLAN FOR THE PROPERTIES LOCATED AT THE NORTHWEST CORNER OF ORANGE AVENUE AND GRINDLAY STREET. Item No. 7: SECOND READING OF ORDINANCE AMENDMENT NO. 2003 -03, A PROPOSAL TO AMEND SECTION 9 -8(B) OF THE CYPRESS CITY CODE REGARDING LOCATIONAL AND OPERATIONAL REQUIREMENTS FOR LIVE ENTERTAINMENT USES. It was moved by Council Member Sondhi and seconded by Council Member Piercy, to adopt the Ordinance by title only, amending Section 9 -8(b) of the Cypress City Code regarding locational and operational requirements for live entertainment uses. The motion was unanimously carried by the following roll call vote: AYES: 4 COUNCILMEMBERS: McGill, Piercy, Sondhi and McCoy NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNCILMEMBERS: Keenan 6 CITY COUNCIL MINUTES MARCH 10, 200 ORDINANCE NO. 1040 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, AMENDING SECTION 9 -8(B) OF THE CYPRESS CITY CODE REGARDING LOCATIONAL AND OPERATIONAL REQUIREMENTS FOR LIVE ENTERTAINMENT USES. UNFINISHED BUSINESS No items. NEW BUSINESS No items. RECREATION & PARK DISTRICT MATTERS: The Cypress City Council, Acting as the Ex Officio Governing Board of Directors. No items. The City Council meeting was recessed at 8:47 p.m. CYPRESS REDEVELOPMENT AGENCY MATTERS: The Cypress City Council, Acting as the Cypress Redevelopment Agency. The Redevelopment Agency was called to order at 8:47 p.m. PRESENT: Agency Board Members McGill, Piercy, Sondhi, Chairperson McCoy ABSENT: Agency Vice Chair Keenan Item No. 8: CONSIDERATION OF EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE CYPRESS REDEVELOPMENT AGENCY AND COSTCO WHOLESALE CORPORATION. The Deputy Executive Director provided background information on this item. It was moved by Agency Board Member Piercy and seconded by Agency Board Member McGill, to approve the Exclusive Negotiation Agreement between the Agency and Costco Wholesale Corporation for the approximately 18 acre site at the northwest corner of Walker Street and Katella Avenue and authorize the Agency Chairman to execute the Agreement. The motion was unanimously carried by the following roll call vote: AYES: 4 AGENCY MEMBERS: McGill, Piercy, Sondhi and McCoy NOES: 0 AGENCY MEMBERS: None ABSENT: 1 AGENCY MEMBERS: Keenan The Redevelopment Agency was adjourned at 8:53 p.m. The City Council reconvened at 8:53 p.m. ORAL COMMUNICATIONS: For Matters Not on the Agenda. None. ITEMS FROM CITY COUNCIL MEMBERS: Mayor McCoy requested reports from the Council Members on their respective committee assignments. 7 CITY COUNCIL MINUTES MARCH 10, 200 Council Member Piercv: Attended an O.C. Sanitation District meeting where a Fats, Oils and Greases (F.O.G.) Impact Study was discussed. Attended a special meeting of the O.C. Sanitation District where a report was provided on the monitoring of the coastal waters from Point Concepcion to San Diego. Mayor McCoy: Attended a meeting with members of Cottonwood Christian Center regarding church outreach in the community. Attended a meeting with the Financial Director for the State of California regarding the budget. ITEMS FROM CITY MANAGER: No items. ADJOURNMENT: Mayor McCoy adjourned the meeting at 8:58 p.m. in memory of John Paul McGill, Council Member Mike McGill's father, to Monday, March 17, 2003, beginning at 5:00 p.m. in the Executive Board Room. MAYOR OF THE CITY or 'AIRIRESS ATTEST: CLER OF THE Y OF CYPRESS 8