City of Cypress

5275 Orange Avenue ~ Cypress, CA 90630 ~ 714-229-6700

MINUTES OF A REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD MARCH 25, 2013

A regular meeting of the Cypress City Council was called to order at 5:00 p.m. by Mayor Narain in the Executive Board Room, 5275 Orange Avenue, Cypress, California.

Members present:
Mayor Prakash Narain
Mayor Pro Tem Leroy Mills
Council Member Doug Bailey
Council Member Rob Johnson
Council Member Mariellen Yarc

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Attorney Lindsay Tabaian
Director of Finance and Administrative Services Richard Storey
Police Chief Jackie Gomez-Whiteley
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Assistant Director of Finance and Administrative Services Matt Burton
Assistant City Engineer Kamran Dadbeh
Planning Manager Doug Hawkins
Recreation Superintendent Dena Diggins
Redevelopment Project Manager Steve Clarke
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

ORAL COMMUNICATIONS:

None.

WORKSHOP SESSION:

The City Manager stated that the City Council would hold a workshop to discuss a proposed ballot initiative to amend Measure “D” for the Mackay Elementary School and Cypress School District office properties. 

Barry Blade, Cypress School District, stated that the Cypress School District and City staff met on November 1, 2012 to discuss compliance with Measure “D” and to discuss the City Council document in regard to compliance with Measure “D.”  He distributed and reviewed a summary document that included the differences between a voter-initiated ballot measure and a City Council-initiated ballot measure, along with the related steps, timeline, and costs associated for each.  He stated that the Cypress School District expressed their preference for a City Council-initiated ballot measure that would place a zoning change for the Mackay Elementary School and Cypress School District Office on the November 2014 General Municipal Election ballot. 

Mr. Blade stated that on January 24, 2013, Cypress School District and City staff met in order to make City staff aware of the Cypress School District’s intentions and to allow City staff an opportunity to provide input on the matter.  He indicated that on February 21, 2013, a joint meeting between the Cypress School District and City representatives was held in order to discuss the steps and timelines for placing the measure on the ballot. 

Mr. Blade discussed a Council-initiated ballot measure and stated that no signature gathering or petition is required, an Environmental Impact Report (EIR) would most likely be required for each property, and that a Section 9212 - Fiscal Impact Report would be required.  He suggested that there be public input once the EIR results are received prior to the City Council’s decision on the ballot initiative, and that a project description for each property be done.  He recommended that because of its current zoning, the Cypress School District offices site be a community of 31-32 two-story homes.  He stated that the Mackay Elementary School site should include single-family detached residences or single-family townhomes with private streets. 

Mr. Blade stated that an environmental study would take eight to nine months to complete, and that the ballot measure would be part of the November 4, 2014, General Municipal Election. 

Mayor Pro Tem Mills asked about the California Environmental Quality Act (CEQA) requirement and if it is required before or after the project is put on the ballot. 

Mr. Blade replied that if the ballot measure is initiated by the Cypress School District, the CEQA document would not have to be done until after the ballot measure; if the ballot measure is City-initiated, the CEQA document would have to be done prior to the ballot measure. 

Council Member Bailey asked if the Cypress School District would sell the property should the ballot measure not pass.

Mr. Blade responded that the property could be sold at a tremendous loss of value. 

Council Member Bailey asked if a public hearing is required for the findings of the need for open space. 

The City Attorney responded that there is a possibility to aggregate Naylor Act rights and a need to discuss such with the Cypress School District. 

The Planning Manager distributed and reviewed a summary of the main points of concern which include:  (1) Should the ballot initiative to re-zone the Mackay Elementary School and Cypress School District Office properties for residential purposes be placed on the ballot by the City of Cypress or the Cypress School District; and (2) Does the City Council intend to exercise its Naylor Act rights with respect to the Mackay Elementary School property within the time period required by law?

The Planning Manager stated that if the City chooses to place the ballot measure on the 2014 ballot, staff would need direction on reimbursement agreements for both parties, desired level of community outreach, and development scenarios with the Cypress School District. 

The Planning Manager commented that should the City Council exercise its Naylor Act rights, staff would need direction on the purchase percentage of the Mackay Elementary School site which is 9.7 acres.  He stated that if the City purchases the entire site, 30% would be at the reduced Naylor Act rate and 70% would be at full market rate.  He stated that the possibility of aggregating the Naylor Act rights would only be an option for the Mackay Elementary School site. 

The City Manager stated that operational implementation items to work on with the Cypress School District include consideration of the Naylor Act rights and the purchase price of the site.  He indicated that if the ballot measure is City Council-initiated, consulting services to conduct a Specific Plan and EIR would be necessary. 

Council Member Bailey asked if the Cypress School District could be the lead agency for the EIR with the City Council passing a Resolution supporting the Cypress School District with the zoning change. 

Mayor Narain asked which existing City park is nearest to Mackay Elementary School.

The Recreation and Community Services Director responded that Arnold/Cypress Park is nearest to Mackay Elementary School.

Council Member Yarc asked if the City may choose which 30% of the Mackay Elementary School site to purchase. 

Mayor Narain asked about the pros and cons should the ballot measure be initiated by the City versus the Cypress School District. 

Council Member Yarc commented that if the City Council initiates the ballot measure, that it would be a clear message to the residents that the City wants to sell open space and that may not be the message the City Council wants to convey.  She stated that her preference would be for the open space to remain. 

Mayor Narain clarified that the will of the public should decide the properties’ uses and that there are pros and cons to having the ballot measure City-initiated. 

Mr. Blade indicated that the benefits to the ballot measure being City-initiated include transparency in that work would be done prior to the City Council vote to place it on the ballot and that it would project a positive image to the public to have the City and Cypress School District working together.  He stated that the City and the Cypress School District have a desire to protect open space, and that the Cypress School District has a need to generate revenues for its underused assets. 

Mayor Narain asked if the Naylor Act rights decision remains the same if the ballot measure is Cypress School District initiated.

Mr. Blade responded in the affirmative. 

Council Member Bailey asked if the City has to act as the lead agency if it is City Council-initiated.

The City Manager responded that the City does not have to act as the lead if the ballot measure is Cypress School District initiated. 

Mr. Blade clarified that it would be the Cypress School District’s plan and that they would pay for the EIR consultant and for the development of the project descriptions.

The City Attorney indicated that there would be reimbursement agreements and that the City would contract with a third party environmental consultant and that the City Council would certify (or not) environmental documents approving the land use.  He clarified that if the City authorizes the Cypress School District plans to re-zone the Mackay Elementary School site, City Council can go through the process of studying the impacts and that it would be a land issue use not a policy issue.  He stated that should there be a ballot measure, the City Council would reserve the right to write a ballot argument in favor of or against the ballot measure. 

Council Member Yarc commented that there would be a perceived City Council support should the ballot measure be City-initiated, and asked why the Cypress School District does not sponsor the ballot measure. 

The City Manager stated that the advantage of a City-initiated ballot measure would include public awareness/community outreach via public meetings.  He stated that should the ballot measure be Cypress School District sponsored, community outreach would not be required. 

Council Member Bailey commented that the Cypress School District should conduct the EIR meetings, listen to community concerns, and mitigate the issues raised by residents.  He stated that there would be a perceived City support should the City host the public meetings. 

The City Manager clarified that the City would be the governmental agency approving the zoning and it would be necessary for the City to be the lead agency. 

Mayor Pro Tem Mills commented that the public looks to the City Council to be good stewards and that there are vacant schools due to the Cypress School District’s declining enrollment.  He commented that the Mackay Elementary School site is a less than desired site, and spoke in support of rolling forward the Naylor Act rights to aggregate for the future. 

Council Member Bailey commented that Cypress voters would not approve the development of homes on the Mackay Elementary School site without an open space component. 

Mr. Blade responded that the City could require the developer to include a park on the Mackay Elementary School site.

Mayor Narain asked if there should be a condition to have public space for both the Mackay Elementary School and Cypress School District Office properties. 

Mayor Pro Tem Mills asked if the development of a pocket park would go against the Naylor Act rights.

The City Manager responded no. 

The Planning Manager stated that if the developer constructs 80 homes, .75 of an acre would be required under the Quimby Act. 

The City Attorney asked the City Council what they need in order to make a decision and stated that the City Council should work towards a cooperative arrangement with the Cypress School District by which the City Council would initiate a ballot measure. 

The City Manager asked for clarification on the City Council items of concern.

Council Member Bailey suggested that the City Council direct staff to work together to construct a recommendation on open space concerns related to Naylor Act rights. 

Council Member Yarc spoke of stacking the Naylor Act rights in order to get significant park space and aggregate for the future. 

The City Manager clarified that a City-initiated ballot measure would allow the City to work with the developer on open space. 

The City Attorney stated that a majority of the City Council could direct staff to develop with the Cypress School District a proposal for a use of both sites to place on a future ballot. 

Council Member Bailey responded in support of the City Attorney’s recommendation.

The City Manager reiterated that the City Council direction is for staff to negotiate deal points that include land density, park land, and aggregate for the future. 

Mayor Pro Tem Mills commented that staff would work with the Cypress School District in getting answers to questions the City Council has in relation to making a decision. 

Beverly Hempstead, Superintendent, Cypress School District, commented that City staff has done a thorough job in preparing the agenda report and that it may be beneficial for the Cypress School District to go through the initial points and options raised in the report.

The City Manager reviewed the City’s Naylor Act rights for the Mackay Elementary School site and the four options outlined in the Agenda Report. 

Mr. Blade replied that the Naylor Act notices were not arbitrarily distributed as there is a timeline concern for the November 2014 General Municipal Election. 

Council Member Bailey asked if the City Council could direct staff to respond affirmatively to the Naylor Act notices. 

Council Member Yarc asked if the City has funds to purchase the entire Mackay Elementary School site, as she would be in support of purchasing the entire site. 

Based on the views expressed by the City Council, the City Manager was directed to provide additional information and recommendations in order assist the Council to provide direction on whether the Council could initiate a ballot measure and whether to invoke the City’s Naylor Act rights.

CLOSED SESSION:

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Labor Negotiators, pursuant to Government Code Section 54957.6, Agency Negotiators: John B. Bahorski and Richard Storey, Employee Groups: Police Management Association. 

At 6:06 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 7:04 p.m. by Mayor Narain.

Members present:
Mayor Prakash Narain
Mayor Pro Tem Leroy Mills
Council Member Doug Bailey
Council Member Rob Johnson
Council Member Mariellen Yarc

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Attorney Lindsay Tabaian
Director of Finance and Administrative Services Richard Storey
Police Chief Jackie Gomez-Whiteley
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Assistant City Engineer Kamran Dadbeh
Planning Manager Doug Hawkins
Assistant Planner Judy Aquino
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Camp Fire USA Elsus and Rocket Cats Groups.

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 the City Council held a workshop regarding a proposed ballot initiative to amend Measure “D” for the Mackay Elementary School and Cypress School District office properties.  He stated that staff was directed to develop deal points and return to the City Council with further information. 

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 Closed Session regarding Conference with Labor Negotiators, pursuant to Government Code Section 54957.6, Agency Negotiators:  John B. Bahorski and Richard Storey, Employee Groups: Police Management Association.  He stated that staff reviewed with the City Council the proposal from the Police Management Association and questions were asked and answered.  He indicated that there was a discussion of negotiating authority requested by staff, and that it was reviewed by the City Council and unanimously approved.

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 Narain asked anyone who wished to speak on any topic not included on the meeting Agenda to come forward.

Shelley Henderson, Cypress, spoke regarding the upcoming edition of the O.C. Breeze and provided an update on the Cypress Community Festival.

Lois Waddle, Los Alamitos, spoke regarding the Prologis development proposal.

Barbara Howell, Cypress, spoke regarding the Prologis development proposal.

The City Manager stated that the City is requiring an Environmental Impact Report for the proposed project and that the public will have an opportunity to participate and comment.  He indicated that the process will take approximately eight to nine months to complete.

Council Member Bailey asked if the City had been approached about a trucking company occupying the property. 

The City Manager responded that Prologis indicated at their workshop that there is no end user currently determined. 

PUBLIC HEARINGS:    7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL).

Item No. 1:   PUBLIC HEARING REGARDING CONDITIONAL USE PERMIT NO. 2013-01, A REQUEST TO ESTABLISH A 24-HOUR FITNESS CENTER WITHIN TWO EXISTING RETAIL LEASE SPACES LOCATED AT 6907 & 6911 KATELLA AVENUE IN THE PC-1 PLANNED COMMUNITY BUSINESS PARK ZONE.

The Assistant Planner provided background information on this item.

Council Member Johnson asked about concessions or vending machines inside of the fitness center.

Council Member Bailey asked about the non-staffed hours in the facility.

The Assistant Planner stated that the facility would be non-staffed between the hours of 8:00 p.m. and 7:00 a.m.  She indicated that the facility lights would be on and the members entrance would be accessed using a key fob system. 

Council Member Yarc asked if there were other non-staffed 24-hour facilities in the City. 

The Assistant Planner responded that there is a 24 Hour Fitness in Cypress, however, it is not unstaffed.

The public hearing was opened.

The applicant, Walt Dorn, stated they agreed with the conditions of approval.

Mr. Dorn stated they would not have vending machines in the facility but that there would be a type of honor bar system.  

Mr. Dorn stated that members would be given a key to the facility and that it would be available 24 hours per day, 7 days per week.  He indicated that the music would be on a controlled volume and that there would be security cameras on the inside and outside of the building as well as computerized recordings of members’ attendance.  He stated that an emergency call system would be available should a member require medical assistance.

Mayor Pro Tem Mills asked about the history of accidents, personal safety issues, and response times to accidents.

Mr. Dorn stated that they carry substantial insurance and that the safety protocols are very strict.

Mr. Dorn indicated that as soon as the emergency response button is activated, dispatchers would receive an audible alert within 10-15 seconds and an immediate call would be made to 9-1-1. 

Council Member Yarc asked if it would be more cost effective to have the facility fully staffed 24 hours per day.

Mr. Dorn replied that the company’s experience has shown that a fully staffed facility does not necessarily prove to be more effective.

Council Member Bailey asked if they own other franchises.

Mr. Dorn stated that this is their first franchise and that there are other franchises in Seal Beach and Fountain Valley.

Mayor Narain asked if there was anyone who wished to speak in favor of the item.

Mayor Narain asked if there was anyone who wished to speak against the item.

The public hearing was closed.

Council Member Bailey spoke in support of the concept but expressed safety/crime concerns during the unstaffed hours of operation. 

The Assistant Planner stated that she contacted the facility in Seal Beach and was informed that they have not received emergency calls during the unstaffed hours of operation.

The Chief of Police stated that the nature of the facility would require additional monitoring in order to ensure public safety. 

Mr. Dorn stated there is nationwide experience and that the usage in the evening is typically less than three percent.  He pointed out that there are two other 24-hour businesses within the same shopping center.

The City Manager stated that a condition could be included that states that the Conditional Use Permit would be reviewable in six months and the City Council could review any incidents that may have occurred.

Mr. Dorn stated they are agreeable to the condition.

It was moved by Council Member Bailey and seconded by Mayor Narain, that the City Council adopt the Resolution by title only, approving Conditional Use Permit No. 2013-01, subject to the conditions in Exhibit “A” of the Resolution, as amended.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Yarc, Johnson, Bailey, Mills and Narain
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

RESOLUTION NO. 6355

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
APPROVING CONDITIONAL USE PERMIT NO. 2013-01
– 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 Mayor Pro Tem Mills and seconded by Council Member Bailey, to approve Consent Calendar Items No. 2 through 12.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Yarc, Johnson, Bailey, Mills and Narain
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

Item No. 2:   APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF MARCH 11, 2013.

Recommendation:   That the City Council approve the Minutes of the Meeting of March 11, 2013, as submitted.

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 THE MONTH OF APRIL 2013 AS “DMV/DONATE LIFE CALIFORNIA MONTH” IN THE CITY OF CYPRESS.

Recommendation:   That the City Council officially proclaim the month of April 2013 as “DMV/Donate Life California Month” in the City of Cypress.

Item No. 5:   ADOPTION OF RESOLUTIONS REQUIRED TO HOLD A SPECIAL MUNICIPAL ELECTION ON JUNE 25, 2013.

Recommendation:   That the City Council take the following actions by way of a single motion: 1) Adopt the Resolution by title only, calling and giving notice of the holding of a Special Municipal Election to be held on Tuesday, June 25, 2013, for the submission of a proposed ordinance; and 2) Adopt the Resolution by title only, requesting the Board of Supervisors of the County of Orange to conduct a Special Municipal Election to be held on Tuesday, June 25, 2013; and 3) Adopt the Resolution by title only, setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis; and 4) Adopt the Resolution by title only, providing for the filing of rebuttal arguments for City measures submitted at municipal elections.

RESOLUTION NO. 6356

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
CALLING AND GIVING NOTICE OF THE HOLDING OF A SPECIAL
MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 25, 2013
FOR THE SUBMISSION OF A PROPOSED ORDINANCE.

RESOLUTION NO. 6357

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF
ORANGE TO CONDUCT A SPECIAL MUNICIPAL ELECTION TO BE
HELD ON TUESDAY, JUNE 25, 2013.

RESOLUTION NO. 6358

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
SETTING PRIORITIES FOR FILING A WRITTEN ARGUMENT
REGARDING A CITY MEASURE AND DIRECTING THE CITY
ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS.

RESOLUTION NO. 6359

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR
CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS.

Item No. 6:   RESOLUTION IN SUPPORT OF INITIATIVE MEASURE.

Recommendation:   That the City Council adopt the Resolution by title only, supporting the initiative measure on the June 25, 2013 special election ballot.

RESOLUTION NO. 6360

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
SUPPORTING AN INITIATIVE MEASURE TO REZONE VACANT AND
UNDERUTILIZED LAND SUBJECT TO THE AMENDED AND
RESTATED CYPRESS BUSINESS & PROFESSIONAL CENTER
SPECIFIC PLAN.

Item No. 7:   ACCEPTANCE OF SEWER REHABILITIATION ON LINCOLN AVENUE AND CYPRESS STREET, PUBLIC WORKS PROJECT NO. 21.

Recommendation:   That the City Council: 1) Accept the Sewer Rehabilitation on Lincoln Avenue and Cypress Street, Public Works Project No. 21, as being satisfactorily completed in conformance with the project specifications, in the final amount of $1,857,719.60; and 2) Approve the final retention payment of $92,886 to Paulus Engineering, Anaheim, California; and 3) Authorize the City Clerk to release the Labor and Materials Bond and the Faithful Performance Bond upon expiration of the required lien period, if no claims or objections have been filed, upon concurrence of the Director of Public Works.

Item No. 8:   AWARD OF CONSTRUCTION CONTRACT AND AWARD OF TASK ORDER FOR CONSTRUCTION INSPECTION SERVICES FOR VARIOUS SEWER IMPROVEMENTS, PUBLIC WORKS PROJECT NO. 78.

Recommendation:   That the City Council: 1) Award a contract for Various Sewer Improvements, in the amount of $1,179,950, to the lowest responsible bidder Andrew Papac and Sons (Papac), South El Monte, California; authorize a contingency of $177,000 (15% of Bid Amount); and direct the Director of Public Works/City Engineer to issue any necessary change orders to complete additional work within budgetary authority; and 2) Approve a Task Order for Construction Management and Inspection Services, in the amount of $183,400, within the existing agreement for On-Call Construction Management/Inspection/Engineering Services for Various Sewer Improvements, to Vail Cooper & Associates, Inc. (VCA); authorize a contingency of $27,500 (15% of contract amount) to be used for unforeseen work; and direct the Director of Public Works/City Engineer to act as Contract Officer.

Item No. 9:   AUTHORIZE AN INCREASE IN ESTIMATED REVENUES AND APPROPRIATION OF FUNDS FOR PUBLIC WORKS PERMIT INSPECTION SERVICES.

Recommendation:   That the City Council: 1) Authorize an increase in Estimated Revenues in the General Fund by $12,000 in Account No. 111-70201.3204 (Street and Curb Permits); and 2) Authorize an appropriation increase in the General Fund in the amount of $12,000 to Account No. 111-70261.4189_010 (Professional Services Inspection) for Public Works Permit Inspection Services.

Item No. 10:  APPROVAL OF AN AMENDMENT TO THE MEASURE M 7-YEAR CAPITAL IMPROVEMENT PROGRAM, FISCAL YEAR 2012-13 THROUGH 2018-19.

Recommendation:   That the City Council approve an amendment to the Measure M 7-Year Capital Improvement Program, Fiscal Year 2012-13 through 2018-19 (7-Year CIP), for inclusion of the Automatic Retractable Screens (ARS) Installation Project.

Item No. 11:  REVIEW OF INVESTMENT REPORT FOR THE MONTH OF FEBRUARY, 2013.

Recommendation:   That the City Council receive and file the Investment Report for the month of February, 2013. 

Item No. 12:  APPROVAL OF COMMERCIAL WARRANT LIST AND WIRE TRANSFERS FOR FISCAL YEAR 2012-13 FOR WARRANTS NO. 25313 THROUGH 25468.

Recommendation:   That the City Council approve the attached warrant register and wire transfers for Fiscal Year 2012-13.

END OF CONSENT CALENDAR

NEW BUSINESS:

Item No. 13:  ORANGE COUNTY SANITATION DISTRICT PROPOSED SEWER SERVICE FEE. (Mayor Narain)

Jim Herberg, Assistant General Manager, Orange County Sanitation District, provided a presentation regarding the District and the proposed sewer fee increase.

Mayor Narain asked about the City’s sewer system rehabilitation needs. 

The Public Works Director stated that the unfunded need for the City storm drains is approximately $230 million done with a rate adjustment over a 20 year period. 

Mayor Narain asked if the sewer lines owned and maintained by the O.C. Sanitation District would be rehabilitated.

Mr. Herberg responded in the affirmative and stated that the project would be done within the next five years supported by the proposed rates. 

Council Member Bailey asked when the last rate increase was done and if it is the same rate cycle as the Public Utilities Commission. 

Mr. Herberg replied that the last rate increase was done five years ago and has been increased each of the last five years under that increase.  He stated that the O.C. Sanitation District is not governed by the Public Utilities Commission however, they must comply with Proposition 218.  He indicated that rate increase notices were sent to all parcels served by the O.C. Sanitation District. 

Council Member Yarc commented on an article in the O.C. Register that stated that the O.C. Sanitation District fees were raised by 31% in 2005 and an additional 61% after that and this increase would be an additional 15%, and that apartment owners would be greatly affected. 

Mr. Herberg responded that an apartment fee is 70% of a single-family residential fee which would be an increase of less than .75¢ per month at the end of the five-year increase. 

Lorenzo Tyner, O.C. Sanitation District, clarified that the O.C. Register article could be addressing compounded increases over the last five years. 

Council Member Yarc asked for clarification as to why the rates continue to increase. 

Mr. Tyner stated that over the last 10 years, the O.C. Sanitation District has $2 billion worth of new infrastructure and that during the last five years, the majority of the rate increases were used for the creation and building of the new infrastructure.  He indicated that there were inflationary increases and that costs outweighed revenues. 

Council Member Johnson commented on the O.C. Sanitation District’s efforts to reduce costs and asked if any services are contracted out.

Mr. Herberg replied that contracted services include engineering design, landscaping, and janitorial. 

Mr. Tyner stated that the O.C. Sanitation District outsources approximately $60-$70 million in services and that its payroll is approximately 20-25% of its budget. 

Council Member Bailey commented that Mayor Narain has proven to make prudent judgment in consideration of rate/taxpayers and that he recommends that the Mayor take whatever action is deemed necessary in order to preserve costs and what is best for the City of Cypress.  

It was moved by Council Member Bailey and seconded by Mayor Pro Tem Mills, that the Mayor take action that he determines would be best for the City.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Yarc, Johnson, Bailey, Mills and Narain
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

RECREATION & PARK DISTRICT MATTERS:  The Cypress City Council, Acting as the Ex Officio Governing Board of Directors.

No items.

SUCCESSOR AGENCY TO THE CYPRESS REDEVELOPMENT AGENCY MATTERSThe Cypress City Council, Acting as the Successor Agency to the Cypress Redevelopment Agency.

No items.

ORAL COMMUNICATIONS:  For Matters Not on the Agenda.

None.

ITEMS FROM CITY COUNCIL MEMBERS:

Mayor Narain requested reports from the Council Members on their respective committee assignments.

Council Member Johnson:

Toured the pencil painting gallery exhibit at the Cypress Community Center and asked that the Recreation and Community Services Director provide information in regard to the current arts scholarships/contests. 

The Recreation and Community Services Director stated that applications are currently being accepted for: (1) 2013 Rising Stars Art Contest for ages preschool through 6th grade; (2) Friends of Cypress Cultural Arts (FOCCA) 2013 Visual Arts Scholarships; and (3) Friends of Cypress Cultural Arts (FOCCA) 2013 Performing Arts Scholarships.  She indicated that the deadline for all three scholarships is Friday, March 29, 2013 at 5:00 p.m. 

Toured the O.C. Fire Authority headquarters in Irvine.  Attended the ribbon cutting ceremony at Icon Beverages & Cigars.  Attended the Cypress Chamber of Commerce Student & Business Mentoring breakfast.  Attended an Eagle Scout award ceremony.

Mayor Pro Tem Mills:

Attended an ACC-OC meeting.  Attended an ACC-OC Legislative and Regulatory Committee meeting.  Attended the City of Stanton Mayor’s Prayer breakfast.  Attended the Cypress Chamber of Commerce Student & Business Mentoring breakfast.  Attended Assemblywoman Sharon Quirk-Silva’s Women of Distinction awards ceremony.

Mayor Narain:

Attended the Los Alamitos Police Officers Appreciation lunch.  Attended an ACC-OC meeting.  Attended the ribbon cutting ceremony at Icon Beverages & Cigars.  Attended an Anaheim Union High School District stakeholder meeting.  Attended the Southern California Chinese-American Environmental Protection Association meeting. 

Council Member Bailey:

Attended a school accreditation luncheon at Cypress High School.  Attended an O.C. Vector Control Board meeting.

Council Member Yarc:

Attended the Cypress Chamber of Commerce Student & Business Mentoring breakfast.  Attended Assemblywoman Sharon Quirk-Silva’s Women of Distinction awards ceremony.

ITEMS FROM CITY MANAGER: 

The City Manager reported on his attendance at a Joint Forces Training Base meeting with Mayor Pro Tem Mills and Council Member Bailey.  He stated that a project specific e-mail is being prepared for the Prologis Environmental Impact Report and information will be available on a dedicated website.

ADJOURNMENT: Mayor Narain adjourned the meeting at 8:23 p.m. to Monday, April 8, 2013, beginning at 5:30 p.m. in the Executive Board Room.

_______________________________
MAYOR OF THE CITY OF CYPRESS

ATTEST:

___________________________________
CITY CLERK OF THE CITY OF CYPRESS