Minutes 86-02-0322
MINUTES OF AN ADJOURNED REGULAR MEETING
OF THE CYPRESS CITY COUNCIL
HELD
February 3, 1986
The adjourned regular meeting of the Cypress City Council was called to order at 6:09 p.m.
on Monday, February 3, 1986, in the Instructional Center of the Cypress School District
Offices, 9470 Moody Street, Cypress, California, by Mayor Otto Lacayo.
PRESENT: Councilmembers Coronado, Partin and Lacayo
ABSENT: Councilmembers Kanel and Mullen
Also present were City Manager Darrell Essex, City Attorney Mark Huebsch, and the
following City staff members: Barrett, Eynon, Hurst, Jones and Venables. Mr. Wayne Wedin
and Mr. Brice Russell, consultants, were also present.
COUNCILMAN KANEL ARRIVED AT 6:10 P.M.; COUNCILMAN MULLEN ARRIVED AT 6:15
P.M.
The Council was present for a joint dinner and meeting with the Cypress School Board. The
following Board members were present:
PRESENT: Members Cornejo, Friedmann, McDougall, Southfield and Swain
ABSENT: None
Also present was William Calton, Superintendent.
RECESS: Following dinner, Mayor Lacayo recessed the meeting at 6:50 p.m. to the Board
meeting room. The meeting was called back to order in the Board room at 7:00 p.m. with all
Council and Board members present.
CONSIDERATION OF CYPRESS SCHOOL PROPERTY ALTERNATIVES AND
REDEVELOPMENT STATUS (TEXACO TANK FARM): Superintendent Calton reported that,
in response to direction from the Council /Board steering committee, the staffs of both the
City and District had met and were returning with a joint proposal regarding the Cypress
School property and a report on the redevelopment status of the Texaco tank farm. As a
result of the Board's unanimous approval at its January meeting to sell 1.3 acres of the
Cypress School site to the City, Mr. Calton reported that he will be meeting with the City
planning and engineering staff and that the Redevelopment Agency will be filing the EIR and
lending assistance in meeting Subdivision Map Act requirements. Mr. Calton reported that
the Community Day School has been notified of the sale and stated he hoped to give them
extra lead time to find an alternate facility. Mr. Calton stated the Board still maintains the
position that it would like to dispose of the entire remainder of the site rather than portions
at a time. He indicated that a cash sale may not be as beneficial as a sale that would
generate long -term revenue. He stated the Board has continuing interest in trading, selling,
or joint venture activities with the City.
The City Manager reported that City staff has worked closely with the District to determine
what is the best approach for the Cypress School property and the City -owned property
adjacent to the Civic Center in view of what can be accomplished with the HUD grant. He
reported that the City has received approval of the housing grant funding. Staff will process
the parcel map, conditional use permit, plans and bids and if everything is on schedule,
construction could begin in September 1986. He stated the City hopes to close the purchase
with the District within the next fiscal year. Mr. Essex stated that the City would not close
escrow until it is assured of funding from HUD and has a written commitment. The Planning
Director stated the City should have a firm answer within the next few weeks but actual
funding may not be until August. Staff indicated that the applicant, National Church
Residences, is proceeding with plan development.
In conjunction with the seniors housing project, Mr. Essex reported that staff has submitted a
Seniors Center expansion project to the County for HUD block grant funding and it appears
the County is interested in funding parts of the project. The expansion is planned in three
phases, based on funding availability, and would comprise two acres for the building,
driveway and additional parking. This would leave a balance of 2.68 acres having the
potential for private development for seniors housing. Staff displayed a plan of the expansion
proposal.
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City Council Minutes February 3, 1986
With regard to the Board's interest in a joint venture, Mr. Essex requested their consideration
of the Civic Center site. He distributed a report identifying the ownership, size, location and
zoning of the various parcels adjacent to the Civic Center. He reported that the total area is
7.28 acres and of that the City and Redevelopment Agency own 3.72 acres; Mr. Erskine owns
1.21 acres; and left to be acquired are 2.35 acres.
Mr. Essex described the potential for a joint venture between the City and District whereby
the City could trade parcels it owns in the Civic Center area for property at the Cypress
School site. A determination would have to be made where the acreage traded would be of
equivalent value. He reported that Mr. Erskine has expressed interest in pursuing the
development of seniors housing and his parcels could be included in a trade with the Cypress
School property.
Mr. Calton indicated that the District would prefer working with the City in a joint venture
relationship. He stated the joint venture could provide the District with annual income on a
long -term basis. Mr. Essex reported that an expenditure of approximately $1,000,000 would
be needed to acquire the remaining parcels (2.35 acres) in the Civic Center area. Mr. Essex
indicated that with the City's acquisition of the Cypress School property, the City could put
together a development package for the Seniors Center and undeveloped area. The
Redevelopment Agency could acquire, consolidate and trade the remaining Civic Center area
parcels to the District. Mr. Calton stated it would be preferable for the City to develop the
property as a joint venture and the District would then get a percentage of the revenues. In
response to a question from the Council, the City Attorney and consultant reported that
there is precedent for the type of cooperative agreement proposed. Staff pointed out that
the Redevelopment Agency has great flexibility with respect to legal requirements for the
sale, lease or acquisition of property which could benefit the School District. They indicated
that the Agency and District would need to determine a fair and reasonable sharing of the
tax increment.
In discussion of this item, all Councilmembers expressed support for pursuing the proposal for
a trade of properties. Board Member Friedmann felt the joint venture and trading of
properties was a good idea but she expressed concern that the School District might find
itself in a desperate financial situation sometime in the future. The Mayor suggested an
escape clause for the District's protection. Member Cornejo felt a joint venture would be
good for both the District and City. He expressed concern about concentrating one group
(i.e. the seniors) at one location and stated if the seniors housing project was larger he would
not want it on one site. Councilman Coronado stated he would like to see a continuation of
professional buildings along Orange Avenue and that he would oppose seniors housing facing
Orange.
Mr. Paul Erskine stated he had discussed with staff the possibility of trading his property for
land at the rear of the Civic Center. One disadvantage that staff pointed out is that this
would be a long -term project while a trade for the school property would have more
immediate results.
In regard to redevelopment status of the Texaco Tank Farm, Mr. Essex reported that the
consultant has been working with all districts and affected parties. Mr. Russell reported that
the Agency has initiated an amendment to the Civic Center redevelopment project to include
the Texaco Tank Farm and Edison facilities. He stated the redevelopment program could
remedy traffic and drainage problems at the Tank Farm and allow the widening of Denni
Street. He indicated that the redevelopment plan process requires that any actions must be
consistent with the City's General Plan which currently designates both facilities as RS-
6000. With the elimination of the Tank Farm and Edison facilities, he stated there would be
the opportunity to build 695 single - family homes resulting in a population growth of 2,400.
Mr. Russell reported that the .plan amendment process requires the Agency to inform taxing
agencies of the impacts of a project and help find remedies to mitigate the impacts. Mr.
Russell stated staff projected 3.08 persons per unit. Mr. Calton estimated .5 students per
home, or 350 students in K -6 grades. He stated the District may have to reopen closed
schools.
Mr. Wayne Wedin reported that the staff was in the process of trying to establish rules and
guidelines on how to deal with mitigation measures, changing demographics, and provision of
public improvements and City and District services.
Mr. Essex stated he would meet with Texaco representatives soon. The Council requested
that he obtain more information on the status of the Tank Farm and particularly whether it
presents any serious environmental problem.
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City Council Minutes February 3, 1986
RECESS: Mayor Lacayo recessed the meeting at 8:20 p.m. to the Administrative Conference
Room of the Cypress City Hall, 5275 Orange Avenue. The meeting was called back to order
at 8:35 p.m. with all Councilmembers present.
At the City Manager's request, the Mayor added Item #3 to the agenda regarding a
Redevelopment Agreement with the Orange County Water District.
CONSIDERATION OF LINCOLN PROPERTIES PROPOSAL FOR PARTIAL DEVELOPMENT
OF THE RACE TRACK PROPERTY: Mayor Lacayo stated that he had spoken with the City
Manager and City Council regarding cancellation of this presentation and noted that
representatives of the track and applicant were present.
Mr. Noel Hatch, representing Hollywood Park, stated he was aware this meeting was
cancelled. Mr. Hatch reported that, during the master planning process, the track was
contacted by Lincoln Properties regarding the possibility of residential use at the
Cerritos /Denni corner. In discussions with staff, it was felt that an informal workshop
session would be beneficial in providing the applicant with feedback from the staff and
Council. Mr. Hatch stated that the applicant may have overstepped their bounds with their
contacts and he apologized and stated that nothing further will occur. Mr. Hatch requested
that the workshop be rescheduled.
Mayor Lacayo stated the Council is interested in what is being planned for the entire
property and that this should be addressed in a workshop. He suggested adopting a policy so
that the City and track could cooperate in resolving short and long -term plans. He stated he
was disturbed about hearing of the possibility of housing at the race track. Councilman
Coronado stated he had received input from residents on Cerritos Avenue who do not want
concrete corner to corner but want landscaping. He asked to see an overall master plan for
the property. Councilman Kanel agreed that a workshop on a master plan would be in
everyone's best interests. He stated he was disturbed about hearing that the track may cut
down on racing dates. Mayor Lacayo stated a workshop would be productive in explaining the
politics of the community and its feelings toward future land uses.
Mr. Hatch stated the Race Track recognized the Council's concern about residential
development and that Lincoln Properties would like some guidance on whether the Council
would entertain their proposal. He stated the proposal was made now because the applicant
would have to begin the EIR and other studies if the Council was receptive. If not, then the
Track could avoid this expense and delays with the balance of their program.
Councilman Mullen stated that he was willing to consider housing in the context of a master
plan but stated the odds of it occurring are questionable because of past community
resistance. He stated he supported having more informal meetings to consider a master plan
and try to work out a philosophical agreement with the Track. Councilman Coronado stated
he shared the Mayor's concerns. Councilman Partin indicated he objected to having heard
about the residential plans without seeing a master plan. He and Councilman Kanel voiced
concerns with the compatibility and impacts of the project.
Mr. Essex stated it appeared the consensus of the Council was to hold a workshop on the total
master plan and not close the door to residential development.
Mr. Hatch thanked the Council for cancelling the meeting and stated the meeting would have
been premature. He stated he would like to move quickly and submit a specific plan in final
form for the staff and Council to review.
Councilman Partin inquired about the density of the residential proposal. Mr. Barry Kamel,
Lincoln Properties, reported that about 19 units per acre would be possible based on RM -20
zoning and no density bonus on their 28.8 acres. Mr. Kamel extended apologies for
contacting the Council and stated the applicant had only wanted to prepare itself if the
Council had any concerns about their proposal. Mr. Kamel stated they have identified a
significant need in the City for the housing they propose, they have addressed environmental
issues and solutions, and they would like to share their findings with the Council.
Mayor Lacayo recommended that the Council adopt a policy of guidelines governing the
entire Hollywood Park property which should reflect the Council's interest in ultimate
development of the entire 300 acres and require that any rezoning be in a systematic
manner. He and Councilman Partin recommended that the Track demonstrate how any
specific proposal fits in with their master plan.
City Council Minutes February 3, 1986
In response to Councilman Mullen, the City Manager recommended that residential
development not be considered on the Race Track property. Councilman Mullen stated he
was inclined to accept staff's recommendation that residential development is unsuitable.
Councilman Kanel stated there appeared to be too many negatives. Mayor Lacayo stated he
had no interest in hearing a presentation by Lincoln Properties. Following a poll, the
remainder of the Council concurred. Councilman Mullen suggested that staff prepare a
position paper addressing housing as a separate issue. Mayor Lacayo asked Mr. Essex to
advise the applicant that the Council is not interested in hearing its presentation.
It was moved by Councilman Mullen, seconded by Councilman Coronado and unanimously
carried to adopt a policy expressing the Council's desire to consider a total master plan for
the Race Track property and deal with development proposals in relation to the master plan.
The Council requested that Mr. Essex prepare a policy statement and also notify the
applicant of the Council's adopted policy.
BUDGET WORKSHOP: The City Manager presented a report dated January 31, 1986 which
transmitted the 1986/87 Budget Calendar, Mid -Year Budget Review including the Detailed
General Fund Revenue and Expenditure Reports as of December 31, 1985, and the Mid -Year
Status of Departmental Goals and Objectives for 1985/86. The Council indicated they had no
questions concerning the reports.
In regard to Item #3, Consideration of Redevelopment Agreement with the Orange County
Water District, Mr. Brice Russell, consultant, reported on his negotiations with the District
concerning the amendment to the Redevelopment Project involving the Texaco and Edison
facilities and reported that an agreement was negotiated whereby the Redevelopment
Agency will pass through 80% of .56% of the tax revenues from the amendment area. Mr.
Russell reported that the District Board has approved the agreement.
It was moved by Councilman Mullen, seconded by Councilman Partin and unanimously carried
that the City Council, acting as the Cypress Redevelopment Agency, approve the agreement
between the Cypress Redevelopment Agency and the Orange County Water District regarding
payment of tax revenues.
In regard to the budget discussion, Councilman Partin inquired about employees on disability
leave and asked if they could be replaced if they are unable to work. Mr. Barrett responded
that the case cited by Councilman Partin should be resolved within 90 days based on the
medical report.
Mayor Lacayo reported that he received a complaint from a resident who was concerned
when the cable company entered his property and dug up his lawn in order to install cable for
his neighbor. Mayor Lacayo stated that Copley has a recorded message for Saturday calls.
He directed Mr. Barrett to request that the cable company provide a telephone number for
complaint calls on Saturday.
ADJOURNMENT: Mayor Lacayo adjourned the meeting at 10:05 p.m.
ATTEST:
THE CITlP OF CYPRESS
Eft)
TY OF CYPRESS
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