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HomeMy WebLinkAbout5/2/2006 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION MAY 2, 2006 STUDY SESSION: Mayor Herrera called the Study Session to order at 5:33 p.m. in Room CC -8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Dr., Diamond Bar, CA, Present: Council Members Chang, Tanaka, Tye and Mayor Herrera. Mayor Pro Tem Zirbes was excused. Also Present: David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; David Liu, Public Works Director; Bob Rose, Community Services Director; Nancy Fong, Interim Community Development Director; Kim Crews, Human Resources Manager; Ryan McLean, Senior Management Analyst; Linda Magnuson, Finance Director; Susan Full, Senior Accountant; Isaac Aziz, Network/GIS Engineer and Tommye Cribbins, City Clerk. Linda Lowry, City Manager arrived at 5:56 p.m. ON. Discussion of City Manager's Draft 2006-07 General Fund Budget ► Council's FY 2006-07 Goals and Objectives 1) COUNCIL'S FY 2006-07 GOALS AND OBJECTIVES M/Herrera asked if this matter could be discussed at a future study session when MPT/Zirbes was available and ACM/Doyle responded that there was sufficient time to discuss the draft at a future study session prior to the Council taking action in June. 2) DISCUSSION OF CITY MANAGER'S DRAFT 2006-07 GENERAL FUND BUDGET. FM/Magnuson gave an overview of the initial proposed budget and pointed out that there were a number of decision packages that had not yet been included. Revenues are estimated at $20,182,310 for FY 2006- 07 and included in that amount is $715,850 for economic development. The sales tax revenue was increased slightly to include Target from October 2006. Revenue from "other agencies" is down significantly because in FY 2005-06 the City sold Proposition A funds and received about $240,000 in HUD monies for the Diamond Bar Center, a one-time revenue item. Current service charges are higher primarily due to including estimates for developer fees related to the Target and Brookfield Homes projects. ICDD/Fong responded to M/Herrera that the door charge for Brookfield Homes was conservatively estimated for 30 homes. According to MAY 2, 2006 PAGE 2 CC STUDY SESSION Brookfield they propose to close escrow on 66 single-family homes by June 2007. FM/Magnuson continued that the current draft includes estimated appropriations of $18,568,535 which includes adjustments for personnel cost increases (4.5% COLA); benefit enhancements (increases to life, accidental death and dismemberment and dental insurance); increase in auto allowances for City Council from $250 to $300 per month, Executive Management to $250 per month and Exempt Management $120 per month. She noted that CM/Lowry was not included because she has a separate contract. The benefit allotment has been increased by $50 per month. The transfer out to CIP is $1,701,692. Staff intends to present the CIP program to the City Council at its next budget study session. General Fund Reserves at the end of FY 2006-07 are estimated to be $23,340,507. ACM/Doyle assured M/Herrera that with the estimated increases the City would not be touching its reserves in order to balance the budget. Several decision packages are under consideration, but it is staff's goal to present a balanced budget. ACM/Doyle referred Council to Page 21 of the budget. ACM/Doyle pointed out that the increase related to the increase in the auto allowances. The most significant downturns were in salaries because last year during the election there was a portion of time when two Council Members overlapped for salaries and benefits. The big increase is in Special Legal Services (Page 24) due to a number of special enforcement services anticipated by the City's Prosecutor. In addition, there is a $50,000 set aside for updating and refining the City's Municipal Code. ACM/Doyle pointed out that the big change in the City Manager's budget (Page 25) is that there are no allocations for elections. FM/Magnuson reported that the Finance budget was basically the same except for a decrease in professional services because the infrastructure report should be finalized during the current year. HRMICrews reported that her division's budget was virtually unchanged except for an increase in professional services ($12,000) an estimate for actuarial services as required by SB 34. ACM/Doyle reported on the Information Systems budget. He pointed out salary increases and an increase in hardware (printer) purchases. ACM/Doyle drew attention to the $143,650 Computer Maintenance item and explained that if the City did nothing else, it was today's cost of doing business in terms of maintaining the licensing for all of the applications the City is purchasing and bringing online. The increase in Professional MAY 2, 2006 PAGE 3 CC STUDY SESSION Services is directly related to the GIS. ACM/Doyle explained that staff was increasing its tape (data backup) library. There is one server to replace which will put the City in a "maintenance" mode. The budget also contains $20,000 for replacing the Scala Hardware (DBTV). ACM/Doyle explained the General Government portion of the proposed budget. With respect to Public Information, staff is recommending the 19 - hour part time position be increased to 30 hours per week with pro -rated benefits. He pointed out the $50,000 Phase II City Marketing Plan item under professional services, the second phase cost of determining a D.B. "brand." ACM/Doyle stated that there is a 5% increase in the Sheriffs Department contract. In addition, $24,000 has been allocated for the DB Fingerprint program (Page 57). ACM/Doyle said that the Volunteer Patrol budget was significantly reduced because the Workers' Compensation Expenditure was eliminated. Accordingly, the Annual Recognition Dinner and Neighborhood Watch Picnic items were increased to provide more incentives. ACM/Doyle reported that there was no change in the Wildlands Fire contract; $20,000 was allocated for firebreaks Lot A-3 as part of the City's commitment to the property the City intends to purchase. ACM/Doyle stated that there was a significant increase in the cost for animal control services, and the Society's recommended offset was that the City could raise dog license fees accordingly. ACM/Doyle responded to M/Herrera that the ACS contract was up for renewal, and the contract factors -in potential increases. The primary reason for the increase was due to the increased cost to the Humane Society for doing business. He responded to M/Herrera that he had not received any complaints during recent months about animal control services except for confiscated dangerous animals. Most calls had to do with wildlife concerns. Council Members expressed concern about the 25% increase in the contract cost for the Inland Valley Humane Society. Discussion ensued and the conclusion was that the Council would engage in further discussion regarding the contract renewal. ICDD/Fong explained that the $300,000 increase in Community Development includes personnel increases, General Plan Housing Element updates and annexation issues. MAY 2, 2006 PAGE 4 CC STUDY SESSION TCDD/Fong stated that the only change for the Building & Safety contract was the addition of an in-house technician. ICDD/Fong reported that the only change to the Neighborhood Improvement budget was the addition of one part-time position. ICDD/Fong stated that the only increase with respect to the Economic Development budget was in the Professional Services area because the City intended to develop more specific plans as discussed during the City's January Economic Workshop. CSD/Rose reported that the Community Services budget had an overall increase of $392,275 with a $165,295 increase in revenue. Staff added a budget item for the Trails Master Plan update to upgrade the graphics. Staff is applying for a number of grants and believes that better graphics would bolster the grant process. CSD/Rose stated that staff believes the budget for the Diamond Bar Center is under control and that projections are accurate. The revenue projection was increased to $500,000 per year. The CIP portion includes money to purchase electrical blackout shades for the Grandview ballroom - $38,000. Staff believes the purchase will result in increased use during daylight areas. M/Herrera asked if the facility could dim the lights rather than shut them off completely. CSD/Rose responded yes, that staff was attempting to accomplish the dimmer installation during this fiscal year and according to the electrical plans the capability should already exist. C/Tye asked how staff budgeted replacement costs to keep the Diamond Bar Center up-to-date. CSD/Rose responded that it would require a depreciation budget that CM/Lowry asked staff to prepare this year. CSD/Rose spoke about maintenance issues at the City's Parks. Discussion ensued regarding the oh of July fireworks show being moved from Sycamore Canyon Park to D.B.H.S. due to the construction of Target, etc. CSD/Rose asked Council to consider converting the fireworks show to an electronic timing show to improve the quality of the event beginning in 2007. This matter was slated for further discussion. 1 1 1 MAY 2, 2006 PAGE 5 PUBLIC COMMENTS: None Offered. CC STUDY SESSION ADJOURNMENT: With no further business to come before the City Council, M/Herrera adjourned the Study Session at 6:45 p.m. Tommye ribbins, City Clerk The foregoing minutes are hereby approved this 16th day of — may 2006. —' CAROL HERRERA, Mayor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR MAY 2, 2006 STUDY SESSION: 5:32 p.m., Room CC -8, The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. ► Discussion of City Manager's Draft FY 2006-07 General Fund Budget ON. FY 2006-07 Council Goals and Objectives Public Comments M/Herrera adjourned the Study Session at 6:45 p.m. to the Regular City Council Meeting. CALL TO ORDER: Mayor Herrera called the Regular City Council meeting to order at 6:52 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. MlHerrera reported that City Council began its evening with a Study Session at 5:32 p.m. that included discussion of the FY 2006-07 Budget and FY 2006-07 Goals and Objectives. Action on these items will take place at a future City Council meeting. PLEDGE OF ALLEGIANCE: M/Herrera led the Pledge of Allegiance. INVOCATION: Jim Price, Sr. Pastor, Diamond Canyon Christian Church led the Invocation. ROLL CALL: Council Members Chang, Tanaka, Tye and Mayor Herrera. Mayor Pro Tem Zirbes was excused. M/Herrera announced that MPTIZirbes was in Sacramento preparing for surgery on Thursday morning. She wished him a speedy recovery and said that he intended to return to the dais on May '16 or June 6. Staff Present: Linda Lowry, City Manager; Michael Jenkins, City Attorney; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Nancy Fong, Interim Community Development Director; Marsha Roa, Public Information Manager; Kim Crews, Human Resources Manager; Ryan McLean, Senior Management Analyst, and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA.: As presented 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 MlHerrera presented City Tiles to former Traffic and Transportation Commissioner Tony Tomg and former Planning Commissioner Jack Tanaka. Jody Roberto, representing Assemblyman Bob Huff, MAY 2, 2006 PAGE 2 CITY COUNCIL presented Certificates to outgoing Commissioners Tony Torng and Jack Tanaka. 1.2 M/Herrera and Council Members presented Certificates of Recognition to Lorbeer Middle School students for receiving the 2005- 06 CADA/CASL Outstanding Program Award for maintaining a balance of extracurricular activities. Jody Roberto, representing Assemblyman Bob Huff, presented Certificates of Recognition to the students. BUSINESS OF THE MONTH: 1.3 M/Herrera presented a City Tile to Dr. Michael S. Tracy, DVM owner of D.B. Veterinary Clinic as Business of the Month for May 2006. A slide presentation followed. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/Lowry announced that the Los Angeles County Registrar has asked the City to assist in recruiting poll workers for the June 6t" Primary Election. Anyone interested in serving is asked to call the Registrar's Office at 1-800-815- 2666, Option 7. The number will be scrolled on DBTV 3 and will be included on the City's Website. Persons interested in obtaining more information can visit www.lavote.net and click on the Voter/Poll Worker link or call City Hall. 3. PUBLIC COMMENTS: Vince Galloway, 300 Prospectors Rd., spoke about Gentle Springs Ln., being an access road that extends from the back gate of the Fall Creek community to Diamond Bar Blvd. He stated that because the street is a private street the residents are at the mercy of the adjacent business owners for repair and maintenance of the street. He asked if there was a method for the homeowners to petition the City for the street to be made public in order to provide consistent maintenance. Delilah Knox Rios, Chairman, Diamond Bar Chamber of Commerce stated that the Chamber is co -sponsoring with the City, an Economic Conference on May 10th from 7:30 a.m. to 1:30 p.m. at the Diamond Bar Center. The Conference includes a bus tour of economic opportunities. Registration is available through the Chamber at 909-598-3747 or interested parties may call City Hall. Roger Myer said that he had lived in D.B. for more than 33 years and keeps hearing that the City needs to reduce traffic on its streets. He said he did not understand why there were no ramps from the SR60 west to the SR57 north and from the SR57 south to the SR60 east. He asked the City Council and - the Traffic and Transportation Commission to petition Sacramento for the ramps. MAY 2, 2006 PAGE 3 CITY COUNCIL Irene Wang, D,B. Librarian, informed the public that the D.B. Library would be closed for about: 11 working days beginning May 8 to May 22 for parking lot resurfacing. During the closure Rowland Heights, Hacienda Heights and La Puente libraries will be open to serve the D.B. residents. Hours of operation and locations will be posted at the D.B. Library. Ms. Wang also announced that the free seminar "Secrets to UC Admissions" was rescheduled for Wednesday, May 24 from 6:30 P.M. to 8:00 p.m. Lt. Michael Flocks, Battalion Chief, Los Angeles County Fire Department said he looked forward to continuing to provide the highest level of emergency service for D.B. Leticia Pacias, Community Services Representative, Los Angeles County Fire Department invited residents to the annual "East Region Fire Service Day" on Saturday, May 13 from 10:00 a.m. to 4:00 P.M. at 17056 E. Gale Avenue. Pat Savage, Principal, Armstrong Elementary School introduced Christin Whatley, School Librarian. A couple of weeks ago the school librarians and school library programs were recognized at a "Friends of the Library" luncheon. Ms. Whatley and Ms. Savage discussed the school library program and the support it receives from the D.B. Library and "Friends of the Library." Rick Rogers said he supported the effort to build a new library in D.B. and urged the Council Members to support the effort as well. This effort has been a priority for the community for many years. Several years ago a surrey found that the residents' first priority was a community/senior center and number two on the list was a new library. The Community Center has been built and it is time for the community to turn its attention to the construction of a new library. In a recent survey more than 75% of the residents indicated the City needed a new library. Addressing previous speakers' comments, Mr. Rogers stated that there continued to be more and more publications and books printed, large numbers of individuals patronizing the library and affluent communities finding that new library facilities were warranted for their communities. "No new taxes" was CITye's popular campaign pledge. However, he believed that the situation deserved a second look. The residents are asking that the measure be placed on the ballot in order to allow the voters to decide whether or not they want to assume the liability of funding a new library. He saw no conflict in Council Members supporting the matter being placed on the ballot and personal views on "no new taxes." If the measure is placed on the ballot individuals would be free to lobby and campaign against it.. He agreed that most people would be opposed to taxes that would go to the State. However, if residents decided to support the Library the benefits would remain in D.B. People are rightfully concerned about spending the City's money and he urged the Council to consider a new Library an investment rather than an expense. MAY 2, 2006 PAGE 4 CITY COUNCIL Marsha Hawkins, President "Friends of the Library" and Library Task Force member, said that because there were so many questions from the community without response she asked to play a City produced DVD explaining the Library Bond Measure. M/Herrera asked Ms. Hawkins to come back in two weeks so that the item could be placed on the agenda. 4. RESPONSE TO PUBLIC COMMENTS: CM/Lowry responded to M/Herrera that PWD/Liu would contact Mr. Galloway regarding the process that would be required for each of the property owners to vacate Gentle Springs Ln. to the City. CM/Lowry responded to Mr. Myer that she believed there were no such ramps forthe same reason the SR57 overlays the SR60. When construction occurred in that decade it was done inexpensively and unfortunately, D.B. was the recipient of the aftermath of construction without appropriate long- term investment in the infrastructure. M/Herrera stated that both staff and Council lobby constantly with Sacramento and Washington D.C. for transportation dollars to fix the problems in D.B. and adjacent areas. CM/Lowry further stated that the City has engaged in a joint venture with the City of Industry and MTA to prepare concepts for what would be required to remedy the interchange areas. Unfortunately, it falls to local jurisdictions to assume the initiative to deal with a State -generated issue that impacts the quality of life for local residents. Tomorrow, ACM/Doyle will be in Sacramento attending a conference and representing a new entity called the "Four Corners Transportation Coalition" on behalf of the cities of Brea, D.B. Chino Hills and Pomona in an attempt to expand the coalition to show that local government is prepared to take initiative and gain partnerships with the private sector and public agencies. The interchange is significant to the quality of life for D.B. and is of national significance with regard to delivery of goods across the United States. M/Herrera commended the City for taking leadership in creating the coalition to pursue the dollars by gaining the attention of government officials in Sacramento and Washington D.C. 5. SCHEDULE OF FUTURE EVENTS: 5.1 Neighborhood Traffic Management Program Meeting —May 4, 2006 — 7:00 p.m. (for neighborhoods of Armitos PI., Between Pantera Dr. and Top Ct. and Pantera Dr. between Armitos PI. and Bowcreek Dr.) Diamond Bar Community Center Pine Room, 1600 Grand Ave. MAY 2, 2006 PAGE 5 CITY COUNCIL 5.2 Planning Commission Meeting — May 9, 2006 — 7:00 p.m., Auditorium, AQMD/Government Center, 21865 Copley Dr. 5.3 D.B. Chamber of Commerce — "Building Success in the Southeast San Gabriel Valley"— May 10, 2006 — 7:30 a.m. — 1:00 p.m., D.B. Center, 1600 Grand Ave. 5.4 Traffic and 'Transportation Commission Meeting — May 11, 2006 — 7:00 p.m., Hearing Board Room, AQMDIGovernment Center, 21865 Copley Dr. 5.5 City Council Meeting — May 16, 2006 --- 6:30 p.m., Auditorium, AQMDIGovernment Center, 21865 Copley Dr. 5.6 Neighborhood Traffic Management Program Meeting — May 17, 2006 -- 7:00 p.m. (for neighborhoods of Bent Twig Ln. and Adel Ave./Gerndal St.) Room CC -6, AQMDIGovernment Center, 21865 Copley Dr. 6. CONSENT CALENDAR: C/Tye moved, C/Tanaka seconded to approve the Consent Calendar as presented. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes 6.1 APPROVED CITY COUNCIL MINUTES: 6.1.1 Study Session of April 18, 2006 —as submitted. 6.1.2 Regular Meeting of April 18, 2006 — as submitted. 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES 6.2.1 Regular Meeting of March 28, 2006 6.2.2 Regular Meeting of April 11, 2006 6.3 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES — Regular Meeting of January 12, 2006. 6.4 RATIFIED CHECK REGISTER — containing checks dated April 14 through April 27, 2006 in an amount totaling $1,431,040.19. 6.5 REVIEWED AND APPROVED TREASURER'S STATEMENT — Month of March 2006. MAY 2, 2006 PAGE 6 CITY COUNCIL 6.6 DENIED CLAIMS: 6.6.1 Filed by Frances Lopez on April 4, 2006. 6.6.2 Filed by Cynthia K. Moeder on February 15, 2006. 6.7 APPROVED NOTICE OF COMPLETION FOR SULLY -MILLER CONTRACTING CO., INC. FOR NORTH WALNUT DRIVE STREET REHABILITATION PROJECT (BETWEEN THE WESTERLY CITY LIMITS AND LEMON AVENUE). 6.8 APPROVED SETTLEMENTS FOR TWO (2) CLAIMS FOR DAMAGES TO CITY PROPERTY. 6.9 (a) ADOPTED RESOLUTION NO. 2006-35 DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 38 AND SETTING THE PUBLIC HEARING FOR JUNE 6, 2006. (b) ADOPTED RESOLUTION 2006-36: DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 39 AND SETTING THE PUBLIC HEARING FOR JUNE 6, 2006. (c) ADOPTED RESOLUTION NO. 2006-37: DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41 AND SETTING THE PUBLIC HEARING FOR JUNE 6, 2006. 6.10 (a) ADOPTED RESOLUTION NO. 2006-38: ESTABLISHING A COMPENSATION PLAN CONSISTING OF SALARY RANGES AND BENEFITS FOR ALL CLASSES OF EMPLOYMENT EFFECTIVE MAY 2, 2006; RESCINDING RESOLUTION NO. 2006-16 AND RESOLUTION NO. 2005-36 IN THEIR ENTIRETY. (b) ADOPTED RESOLUTION NO. 2006-39: SETTING FORTH PERSONNEL RULES AND REGULATIONS REGARDING THE PAYMENT OF SALARIES, SICK LEAVE, VACATIONS, LEAVES OF ABSENCES, AND OTHER REGULATIONS EFFECTIVE MAY 2, 2006; RESCINDING RESOLUTION NO. 2005-36 IN ITS ENTIRETY. 7. PUBLIC HEARINGS: 7.1 CONTINUED PUBLIC HEARING—ADOPT RESOLUTION NO. 2006 - XX: APPROVING MODIFICATION TO CONDITION NO. 5. A (3) OF CITY COUNCIL RESOLUTION NO. 2005-60 APPROVING CUP NO. 2004-01, DEVELOPMENT REVIEW NO. 2004-19 AND VARIANCE NO. 2004-01. MAY 2, 2006 PAGE 7 CITY COUNCIL ICDDIFong reported that this item was a request for Council to modify the Conditional Use Permit approved in December 2005. The approval is requested by the applicant and applies to only one condition of approval. When Council approved the renovation of the Country Hills Towne Center one of the conditions was that all of the buildings indicated in "blue" would have to be completed prior to issuing building permits for the two new buildings indicated in "yellow." In addition, the market would have to be in operation prior to releasing occupancy for the new three-story medical/office building. At the time of approval the applicant did not have a market tenant. Since approval, the applicant has signed a market tenant for the building and has continued to proceed with Tenant Improvements. Demolition permits were issued for removal and replacement of the building. The request for the change would allow the applicant to speed up the construction of the entire shopping center including the renovation. Specifically, the request is to allow for the issuance of building permits for the two new buildings as long as the "blue" shaded areas are in plan check. The second part of the request is that the City would not release occupancy for the new two-story building unless there is substantial renovation of the existing buildings and, the City, would not release occupancy for the new building until the market was in operation. The remaining conditions would remain intact. Staff recommends adoption. C/Tanaka asked if there would be any conditions that the sections marked in "blue" be completed before any of the others begin. ICDDIFong responded that prior to the City releasing occupancy for the two-story building the blue portion would be required to be in "substantial" construction. Before releasing occupancy for the new two-story building everything including the site improvements would have to be completed. C/Tanaka said his understanding was that as the market construction was occurring facades and towers would be completed in the blue area prior to any construction in the yellow areas. ICDDIFong confirmed that C/Tanaka's understanding was in accordance with the existing condition. C/Chang said he shared C/Tanaka's concern. He felt the City should have an opportunity to review the market contract to establish its commitment to locating in the shopping center before making a decision to reverse the original conditions. The Council and residents most certainly want to support Mr. McCarthy's efforts and want the process done correctly. He proposed a contingency subject to the City's receipt of a signed contract for occupancy and indicated that Mr. McCarthywas free to strike out confidential information as long as MAY 2, 2006 PAGE 8 CITY COUNCIL the name was evident. ICDD/Fong explained that the Council had authority to impose additional conditions. Mike McCarthy gave a slide presentation on the progress of the demolition and construction. He stated that the plan is to expedite the construction of the entire shopping center. With there being only three long-term tenants the intent is to minimize impacts to new and existing tenants and to schedule most of the construction while the center is basically empty. The request for the modification is to get the incubated tenants to their proposed location as quickly as possible and to complete the shopping center remodel in an expeditious manner for safety concerns, to minimize the eye -sore and not interfere with new tenant occupancy. C/Tye said that during a December meeting he asked Mr. McCarthy if he was okay with staff's report and its restrictions; to which, Mr. McCarthy responded that he was. C/Tye wanted to know what had changed in five months. Mr. McCarthy stated that he had made a mistake in overlooking this particular part of the Variance and in hindsight said he would have worked with staff to have that portion modified because he was experiencing timing problems on the job site. C/Tye thought at the time he was very specific about asking Mr. McCarthy if those restrictions, that there would be no new buildings until the remodel was done, was okay with him. C/Tye said that staffs report projected sales tax revenue of approximately $300,000 for the City according to the applicant and he wanted to know how Mr. McCarthy arrived at that number. Mr. McCarthy responded that he believed it was a rough projection by estimating $150 or $200 per sq. ft. spread over 160,000 sq. ft. or 150,000 sq. ft. $200 per sq. ft. of 150,000 sq .ft. is $30 million of sales per year and 1 percent is $300,000. C/Tye asked Mr. McCarthy if his projections were correct given that the majority of the square footage of grocery store would not produce sales tax and the majority of the new square footage of medical would not produce sales tax. Mr. McCarthy responded that the 150,000 sq. ft does not include the medical office building and the AAA building. The grocery store projects sales of over $20 million per year, which equates to $500-600 per sq. ft. Approximately 30 percent of the grocery store goods are taxable. Thirty percent of $600,000 is about $200 per sq. ft. for that MAY 2, 2006 PAGE 9 CITY COUNCIL space and therefore, the map is correct. C/Tye said that staff indicated the reason for the request was for the renovation to proceed as quickly as possible and to minimize tenant displacement. He asked Mr. McCarthy to explain how the modification would minimize tenant displacement since the current tenants have already been put in an incubation area. And, by the way, there are other empty areas that could be used such as the Warehouse Record store area. He said he was not sure how modifying the conditions would cause: less disruption. Mr. McCarthy felt that a good objective was to get all tenants in place at the same time so that when the center had its Grand Opening, for example, everyone would be in their correct locations with no one in a month-to-month position. C/Tye explained that Von's recently completed a major remodel without shutting down its store and what would prevent the contractors from allowing the businesses to continue operating during refurbishment. Mr. McCarthy said that tenants would have to continue operating but their businesses would suffer. When the safety scaffolding and platforms go up to protect the businesses underneath, it creates a "tunneling" effect into shop spaces. Also, all signs come down. At Von's there were less than 10 tenants and this property will have over 35 tenants with a lot more moving pieces. In his opinion, Von's was a lot cleaner and was able to move the remodel forward more expeditiously without hurting but a handful of tenants in in-line spaces. C/Tye believed that the Council's objective was to secure a viable tenant for the center and the center has a viable tenant in H -mart. In the minutes of the March 28 Planning Commission meeting Mr. McCarthy indicated that completion of the project was out of his hands because it would depend on when H -mart would open for business — it could be the end of 2006 or the end of 2007. So, is there no commitment from H -mart from the signing of the lease when they would occupy the building? Mr. McCarthy said he would have to look at the lease but he has seen . projects delayed for many reasons. Currently, the market is moving forward with a target opening date of March 2007. C/Chang asked Mr. McCarthy if he had a signed contract with H -mart. MAY 2, 2006 PAGE 10 CITY COUNCIL Mr. McCarthy responded, Yes, that it was signed in December; and that he would not mind giving the City a copy of the contract. C/Tanaka said he was concerned about the entire center being under construction and nothing being completed. He referenced the Planning Commission Minutes noting a statement that the whole project may take three to four years to be completed. In his opinion, incubation and relocation creates its own turmoil to a business owner and a contributing factor might be the leases that the business owners are asked to sign at a lease rate of two or three times the current rate without a drop of paint on a building and without a single tree being planted to improve landscaping to make it pedestrian -friendly. He felt that to avoid some of the turmoil during construction temporary banners could indicate that businesses were open. He said he was afraid that once tenants were removed to incubation locations the shoppers would assume the business had left the center rather than trying to locate the business at its secondary location. He said it was his understanding that a restaurant would reside in the second building and he wanted to know where the Tae Kwon Do studio would be located. Mr. McCarthy responded that with respect to the timing his concern was the same as C/Tanaka's concern, to not have a project under construction for four years. The modification would allow him to finish the project in a reasonable amount of time. The way that it is currently drafted the project could take an additional three to four years to complete. His comment to the Planning Commission was based on the way the CUP conditions were currently drafted. Secondly, he would make efforts to put up banner signs to keep tenants viable occupants of the center. Relative to the financial transactions nearly 90% of the deals under lease at this time are conditioned upon a shopping center being remodeled and tenants will not pay a higher rate unless he invests the money in the center. Tenants are holding that as a condition, and the center is readily agreeing to that condition. Relative to the incubation tenants, Tae Kwon Do was moved and the rest of the tenants excluding the bookstore are under Letters Of Intent negotiations for an area above the restaurant space (second floor). Those businesses are more service-oriented businesses. The final location of Tae Kwon Do is under consideration. MJHerrera asked who pays for the tenant improvements when tenants are shuffled around to new locations? Mr. McCarthy responded that he prepared the space for Tae Kwon Do and gave them a month's free rent for their move. In other cases those service tenants were already in place. Since all of the other tenants (with the exception of perhaps one tenant) are already in their MAY 2, 2006 PAGE 11 CITY COUNCIL incubation locations there are no further considerations. Once the new spaces are ready to occupy new leases will be let and the conditions for tenant improvements, rent, credit, and use will be determined. C/Tye asked why it would be necessaryto modify the Conditional Use Permit since the tenants have been moved to their incubation locations. Mr. McCarthy said it would be to shorten the construction time from three to four years. C/Tye asked how modification of the current CUP would help the process. Mr. McCarthy referred C/Tye back to the modification plan and indicated that the real objective was to compress the construction schedule by starting work on XX building as soon as possible, relocate the current tenants to the new building, demolish the existing building and build the new building. C/Tye felt the old warehouse building would serve the purpose, and what Mr. McCarthy was proposing seemed to him more convoluted. He asked what other tenants would need to be removed from the current area scheduled for remodel. Mr. McCarthy responded the Bank of America Ready Teller. Mr. McCarthy explained that he has leases and letters of intent signed with existing tenants and new tenants so as certain areas are full there is no room left to incubate tenants. There are other leases currently being negotiated for space. He is in a bind to get a new building constructed in order to relocate the tenants. It could verywell be three to four years before tenants could be located to their new areas so that he could proceed to demolish the current building and build the medical/office building. The dilemma is that there is no more space, and leases call for certain occupancy dates, and the objective is to get them in and up and running. M/Herrera opened the Public Hearing at 8:25 p.m Marie Buckland wanted to know why the Council would prevent the center from moving forward more quickly because she felt delays would hurt the existing businesses. Yumi Branstad, a construction lender, explained that there would be a great savings in construction costs and shortening of the timetable if the Council approved the modification. Whenever there is MAY 2, 2006 PAGE 12 CITY COUNCIL. construction the merchant suffers and in three to four years most all of the current merchants would almost certainly be gone from the center. If there is away for the developer to shorten the construction period at a significant savings it would be good for the center and for the community. M/Herrera closed the Public Hearing. ICDDIFong explained that the contractor was obligated to provide renovation for all of the buildings. If the project were in plan check the City would give the applicant a permit to build the two new buildings. If the applicant has substantial construction occurring defined as completion of framing, towers, etc. occupancy would be granted so that tenants could move into the north side of the two-story building. Occupancy would not be granted for the three-story building until everything else was completed and the market was operating. C/Chang moved to Adopt Resolution No. 2006 -XX: Approving modification to Condition No. 5. A (3) of City Council Resolution No. 2005-60 approving Conditional Use Permit No. 2004-01, Development Review No. 2004-19 and Variance No. 2004-01 upon delivery of a copy of the signed lease agreement between the applicant and H -mart for the market space anchor store. The motion died for lack of a second. C/Tye said he had not heard anything to indicate the City should change the Conditional Use Permit approved five months ago because the Council was concerned about two new buildings being constructed before the current shopping center was renovated. Now that demolition is underway the City needs to keep that leverage to make sure that the renovation is accomplished. He appreciated the applicant's presentation. However, if the idea was to modify the Conditional Use Permit in order to move a B of A ATM machine, it was to him not an overriding concem and would not delay renovation of the shopping center. The City needs the center to be renovated and up and running as soon as possible and he views the confusion and extraneous issues with the two new buildings as a separate issue. C1Tye moved, C/Tanaka seconded to direct staff to return with a Resolution of denial at the May 16, 2006 meeting. C/Tanaka said he would be more comfortable to grant the applicant's request once the market was completed. And were the applicant to make such a request, it should be made to the Planning Commission. MAY 2, 2006 PAGE 13 CITY COUNCIL C/Chang commented that the proposed resolution would give the applicant a little flexibility to render the center efficient at the least cost. He said he saw little difference and believed that staff would adequately imonitor the situation. The Council should not kick this back to the Planning Commission. C/Tye said his observation was that if there was no difference the original approval should remain in effect. This matter is not being kicked back to the Planning Commission. If Mr. McCarthy wants to come back to the City for modification at some future date it would go through the Planning Commission. If he (C/Tye) were the developer and he wanted to build a three-story building on the south end of the property and a two-story building on the north end, he would hustle to complete the remodel so that he could carry on with the rest of the program. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: Chang ABSENT: COUNCIL MEMBERS: MPT/Zirbes 7.2 APPEAL THE PLANNING COMMISSION'S DECISION TO MODIFY CONDITIONAL USE PERMIT NO. 2003-01 ELIMINATING THE ENTERTAINMENT USE ASSOCIATED WITH SCRIBBLES GRILLE AND RESTAURANT LOCATED AT 245 GENTLE SPRINGS LANE. ICDD/Fong stated that three years ago the Planning Commission issued a Conditional Use Permit for Scribbles Grille and Restaurant based on a bar and limited entertainment consisting of a jazz band, guitarist or pianist within the small stage. In addition, a DJ and dancing were allowed for private parties within the banquet room. Since the approval and more especially within the past year and recent couple of months there has been a lot of public safety incidents that required Los Angeles County Sheriffs Department to significantly increase its public safety resources to respond to that location. As a result, staff recommended that the Planning Commission consider a modified CUP. The first public hearing was scheduled for March 14'h and at the request of the applicant, the Public Hearing was continued to April 11. At that meeting the Planning Commission received staffs report, testimony from nine Fall Creek condominium complex residents, the Sheriff Department, the applicant and the applicant's attorney. Following deliberation the Planning Commission determined that Scribbles was not operating in conformance with the approved Conditional Use Permit and that the business operation threatened the public health and safety of the community. As a result, the Planning Commission revoked the entertainment use on April 11, 2006. Since then the applicant has appealed the Planning MAY 2, 2006 PAGE 14 CITY COUNCIL Commission's action. In the appeal the representative claims that the City has falsely accused Scribbles of having a well-known DJ provide entertainment, and running a nightclub and charging admission fees. After the Planning Commission's revocation of the entertainment use, Scribbles continued to have entertainment on Thursday nights. Staff issued citations on April 13, April 20 and April 28 for non-compliance. Today residents living near the facility provided staff with a copy of a Scribbles website that clearly demonstrates the club advertising entertainment as a nightclub in defiance of the approved CUP. ICDD/Fong provided the applicant with a copy of the website information she included in staffs report. Scribbles also claims that there is no evidence that the facility caused any alleged public health and safety concerns and incidents. Lt. Joe Maxey stated that over the last couple of years there have been many, many calls for service at Scribbles and that D.B. deputies respond to these calls constantly. As a result of input from Sgt. Sachs and other deputies, it came to his attention that the crime and acts of violence have escalated to the point that the deputies are apprehensive. A large volume of individuals congregating in and around the club and in the K -mart parking lot have posed such a threat that the deputies remain apprehensive even though they are able to utilize all of the resources available at the D.B./Walnut station. A calculated response to 500, 600 and even a thousand people between the hours of 11:00 p.m. and 2:00 and 3:00 a.m. in an isolated area such as the K -mart parking lot poses a horrendous threat to the deputies. Since the Planning Commission rendered its decision on April 11, deputies have responded to additional calls for service at Scribbles, and there has been no discernable change in the operation. He showed a video made by Sgt. Rivera and Sgt. White as they drove by the area on April 20. Sgt. Elizabeth Sachs said she works as a field supervisor for the Walnut/D.B. Sheriffs Station between the hours of 10:00 p.m. and 6:00 a.m. When she worked the Thursday night shift there were times that five to nine units were stationed in the K -mart lot that provides overflow parking for Scribbles between the hours of 1:00 a.m. and 2:00 a.m., primarily 1:30 to 2:00 a.m. when there was an influx of 400 to 450 individuals returning to their cars parked in the K- mart parking lot. The problems encountered during thattime included under -aged drinking, adults drinking in the parking lot area, a sea of bottles on the parking surface, individuals driving under the influence of alcohol, fights, reports of weapons, shots fired, etc. Many times victims were unwilling to reportthe crime perpetrated against them for fear of reprisal and as a result she had no police reports to support what she witnessed. In addition to fights and injuries, there were traffic collisions, exhibition of speed and many problems during those hours. As a public safety officer she was concerned about five to nine MAY 2, 2006 PAGE 15 CITY COUNCIL units trying to control a congregation of approximately 500 unruly people consuming alcohol and scantily clad women involved in boy/girl issues. Overall, the presence of these factors is a mixture of bad chemistry. She and the Department feel that without getting the situation in check, there will be serious problems especially with Summer approaching. She said she was not so concerned about what was going on inside the club as she was with what was going on outside the club. The security people at the club have acted responsibly and cooperated with the Department. Scribbles' appears to function as a nightclub and does not appear to be conducive to the family businesses that surround the facility. The problems she has witnessed, especially on Thursday night are very serious. M/Herrera asked where the individuals in the K -mart parking lot procured their bottles of liquor and whether they were holding bottles as they left the nightclub. Sgt. Sachs said she did not believe the individuals took liquorfrom the nightclub. She believed they brought it to the destination in their vehicles. She has observed hard liquor bottles, beer and wine bottles and did not believe the club would sell a bottle of whiskey, for example. Because these individuals are patrons of the business, the business is drawing this problem into the City. She has served on the Sheriff's Department for 17 years and has encountered this scenario before and is therefore very concerned from a public safety standpoint in its totality. She feels that if the problem is not curtailed something bad will happen. M/Herrera said the video showed people standing in line and wondered if people were drinking while standing in line. Sgt. Sachs said she was not there when the video was taken. M/Herrera asked if the deputies who took the video observed people standing in line drinking while they were waiting to enter Scribbles. Lt. Maxey responded that the deputies did not mention patrons drinking while waiting in line to enter the building. His experience is that that never occurs. What happens in and around the entrance to Scribbles is well controlled by their security. The problems occur on the street, the surrounding areas and in the K -mart parking lot. Lt. Maxey said there are two issues: 1) the safety of the deputies and the community and 2) the expectation of the citizens of D.B. regarding their safety and security. Between those hours he questions the Department's ability to provide that safety and security because all of the Department's resources are in one area of the City, the K -mart parking lot. If there is another emergency in the City, the deputies must respond from that location. The City has an expectation that the MAY 2, 2006 PAGE 16 CITY COUNCIL deputies will be out in the community and visible in order to be a deterrent to crime. Deputies are unable to meet that expectation when they are called to the K -mart parking lot to deal with 400 to 500 people exiting Scribbles. Sgt. Sachs responded to M/Herrera that she has seen individuals age 18-20 who were drinking. She has seen some individuals' IDs and other deputies call her over to witness under aged drinkers. A lot of the problems are with the young adults, not just with individuals between the ages of 18 and 21. MlHerrera said she would allow the applicant equal time of 20 minutes for his presentation. Frank Weiser, 3460 Wilshire Blvd., Suite 903, Los Angeles, attorney forthe applicant stated that he believed due process was not followed during the Planning Commission Public Hearing. Even though this matter was continued from March 6 to April 11 he was hired at the last minute because the applicant did not receive a copy of the Planning Commission packet until two days before the Public Hearing. In addition, the business owner was out of the country at the time of the original continuance. No one received actual formal charges and underlying evidence. Even to this date the applicant does not have the Sheriff's reports that supposedly support the allegations of a public nuisance. When he spoke to the Planning Commission, he indicated that the matter should be considered in the spirit of fundamental due process. Mr. Weiser said that Justice Roberts recently wrote an opinion about what was fundamentally required for due process procedure before one could be deprived of a property interest, and that is what the City is doing when it modifies this CUP. Notice provides that the applicant be given formal charges in advance so that he knows how to prepare his defense. In addition, the applicant is required to be provided the evidence to support the charges. In this case, the applicant was not given the evidence. According to the officers the problem is occurring outside of the facility and across the street in the K -mart lot. The applicant does not have the reports and cannot verify the truth of the matter. When the Planning Commission was asked for a continuance one Commissioner agreed that it would be a violation of the procedure of due process if the applicant was not given the evidence and given sufficient time to prepare. The applicant said that had he had sufficient time and been given the reports he would have brought in rebuttal evidence. On that ground alone the Council, in his opinion, would have to reverse the Commission's decision and allowforfurther hearings and grant the applicant his right to receive a copy of the reports. Mr. Weiser said he filed an appeal on April 18 and asked that it be made a part of the public record. He assumed that the Council Members had reviewed the appeal and noted the underlying MAY 2, 2006 PAGE 17 CITY COUNCIL allegations as the basis for why the Planning Commission's decision should be reversed. Mr. Weiser stated that with respect to the issue about whether Scribbles was in violation of its CUP, he pulled the certified copy of the minutes on April 27, 2006 from the Business License Commission for the County of Los Angeles indicating there was a hearing on May 25, 2005 wherein Scribbles applied for a business license and received on June 1, 2005 three County business licenses, one for entertainment with dance, one for public eating and another for an annual dance. Ms. Fong was present representing the City at the hearing on May 25, 2005. Nothing in the minutes indicates that Scribbles cannot charge at the door; nothing indicates that there was an indication that Scribbles was operating as a public nuisance; and in fact, the Commission approved unanimously for Scribbles to have a license, and gave them the license that runs until June 1, 2006, and indicated that they assured all parties that any conditions or regulations previously set forth by any licensing requirements should be enforced. He asked that the document be entered into the record. On legal grounds of collateral estoppel the Council cannot take two different positions. If the evidence that went back to 2004 and 2005 was not presented to the licensing commission, and there has been a finding by the County Licensing Commission that Scribbles is not operating in violation of its CUP, the City never appealed that finding. Under Administrative Collateral Estoppel Principles the City cannot now come buck and re -litigate that issue. The City must go back to the Licensing Commission in June, and get the Licensing Commission to find that there was a violation of the licensing requirements, and then go back to the Planning Commission for modification. He believed that: the City Council was legally barred from being able to just reverse the process. Mr. Weiser said he asked Scribbles for evidence of the video. Firstly, he did not know what that proved. Scribbles' has an entertainment license and they are still operating. The reason they are still operating is because they have a right under the Municipal Code to appeal this matter, and under General Administrative Principles a matter is not final even from an administrative standpoint until the appeal rights are exhausted. The Council has not yet ruled. The resolution proposed for adoption by staff says that Scribbles has a right to appeal under State law under California Code of Civil Procedure 1094.5. He asked Scribbles to take pictures of the parking lot across the street and of the condominiums to see what it looks like at night. He asked that the photographs be entered into evidence. As far as he could see from the pictures, Scribbles was not in anyway contributing to any alleged public nuisance, and Scribbles would like to know where the hard evidence is that links Scribbles to any alleged nuisance across the street. Someone's livelihood cannot be taken away on that kind of MAY 2, 2006 PAGE 18 CITY COUNCIL hearsay without evidence. Mr. Astavakra told him that there is a bowling alley in town where homicides and multiple crimes have occurred, and his reason for bringing up that matter was to indicate that constitutional principles dictate that people must be treated the same, and cities cannot pick and choose who is put out of business. As far as he knows, the bowling alley owners have not been brought before the Council. He said he related that story because Mr. Astavakra told him that Lt. Maxey appeared at his place of business and told him "Hey, I'm going to put you out of business", and it appears that there is a clear agenda because Lt. Maxey believed there was some continuation between the Platinum Club and Scribbles, and there is absolutely not. Scribbles never got any kind of citations from the Sheriffs Department, Scribbles has never received any evidence, nobody has ever gone to Scribbles during all of this time and told them they had better get their act together, or we'll have to go before the Planning Commission. Scribbles never got even a warning, and now they get three citations after the Planning Commission hearing. They claimed evidence going back to 2004, so if this property was contributing as badly as the City claims during the past three years or two years, the normal course would be for the Sheriff to sit down and first give them a warning, or sit down and try to work with the property owners. In Los Angeles if someone is operating a public nuisance, Mr. Delgadillo and his staff haul the owners in to an informal hearing, have the Police Department representatives sit down with the owner and tell the owner that the City does not want to put them out of business, but this is the problem, give the owner a list of suggested improvements, and then if the business owner does not comply with the list of suggested improvements, and the conditions are still bad, and the business is operating as a public nuisance, they take the owner to court or before the zoning administrator. That never happened here. All of a sudden his clients get the notice that they are operating as a nuisance and their CUP is going to be modified. Without the ability to operate as an entertainment center; the business will not be able to survive. So what the City is doing in effect is putting Scribbles out of business. The property owner entered into evidence at the Planning Commission level that he has invested more than $900,000 on the ability to operate as they have. The owner invested a lot of money after he obtained the license from the County Commission last year. State law indicates that the City has to give the owner prior notice, not just fundamental federal due process principles, and the State law says that even if a property is operating with some problems as a nuisance, the City has to weigh the public interest versus the private interest. The City can call it a "modification" but in effect, it is a revocation. At the Commission hearing one of the Commissioners proposed a continuance on the condition that the parties get together and try to work this out to the satisfaction of all parties. He proposed to the Council that there were better ways to work out this situation. Mr. Weiser said he really did MAY 2, 2006 PAGE 19 CITY COUNCIL not mean this as a threat because he respects the City of D.B., but obviously the two parties will be involved in litigation if it cannot be resolved at this level, and from experience he knows that it will be costly for all sides. This should have been resolved in a much more amicable manner. The City did not have to haul Mr. Astavakra before the Commission. The City could have found an alternative source, and certainly the Commission did not have to take action right away. Mr. Astavakra said he wanted to have a copy of the Sheriff's call log for the past two weeks to see if there was a single incident that happened in the K -mart parking lot and at Scribbles. He would like to get a copy of the logs indicating that the Sheriff's Department had 10 vehicles at the scene because of disturbance calls. There has not been a single incident that they can prove except for four incidents in the last two and one-half years. He asked for the Council to accept photographs. with times indicated of the K -mart parking lot, Gentle Springs Ln. and Scribbles. One photograph showed the Fall Creek gate with not one single car parked there. One photograph was taken at 10:30 p.m. on Thursday evening. Another photograph was taken of the area at 12:30 a.m. and there was not one single car parked at the gate of the Fall Creek community. Another photograph was taken at 1:03 a.m. and another was taken at 2:01 a.m. One photograph of the K -mart parking lot was taken at 10:05 p.m., another photograph shows the entrance to the Best Western with not a single car parked in the area and nothing is happening. Another photograph showed a trailer parked in the K -mart parking lot. Other photographs showed trucks parked in the K -mart lot. Mr. Astavakra said he had no idea why allegations were made that the Fall Creek gate was broken. Someone mentioned that his car was vandalized and that he spent $8,000 to $11,000 to repair his vehicle, but there is no evidence that the damage was done by a Scribbles patron. Scribbles has never received a citation from the Fire Department, nor has Scribbles had a single citation from the Sheriffs Department. There has been no noise alleged by the residence of Fall Creek. The owner of Best Western is here with Mr. Astavakra to testify that he and his customers do not hear noise from Scribbles. How could Fall Creek residents hear noise from Scribbles? He asked the Council to investigate the matter further and give him a chance to continue operating. C/Tye directed Mr. Astavakra to the minutes of the May 27, 2005 Planning Commission meeting during which he served as Chairman and C/Tanaka served as a Commissioner. He said he knewthat Mr. Astavakra was aware of the Platinum Club legacy. Mr. Astavakra indicated he was aware that the structure of the parking led to loitering and that he indicated that Scribbles would be "upscale dining with a jazz band playing," Mr. Astavakra indicated "there would be no DJ music or any dancing except for private events if they want to MAY 2, 2006 PAGE 20 CITY COUNCIL dance, like graduation parties or things like that." C/Tye said the reason he brought up those points was because as a Planning Commissioner he would make a different decision in approving a nightclub versus approving an "upscale restaurant with a jazz band playing." C/Tye said he appreciated what Mr. Weiser shared, and he may not mean it as a threat, but anytime somebody says they are going to go to litigation over an issue, he takes it as a threat. The job of the Council is to sort this all out as to how it will be handled. C/Tye said he was not sure what difference it made that in this process that "we don't have evidence of Sheriffs allegations. What are the formal allegations?" This is not a court and there are no formal charges. There has been an issue over whether or not Scribbles can charge at the door. C/Tye said he believed the applicant could do anything he wanted to do at the door, and if he (C/Tye) as a patron wanted to pay $15 to get in, he could do so. C/Tye said he was not aware that Scribbles was conditioned that it could or could not charge at the door and that, to him, was not the issue. The issue is, is Scribbles a nightclub? And he said he believed it was a nightclub, and that he thought the evidence regarding what the City has witnessed is taking place at the location is not an upscale dining establishment with a jazz band playing, or with a piano playing or with soft music. The idea was that the City did not want to duplicate Platinum in 2003 when the Planning Commission approved the Scribbles CUP. And today in May 2006 there is essentially the same type of activity taking place that the City wanted to avoid. All of the other matters are to him extraneous — the decibel levels, folks at Fall Creek and folks parking in the K -mart parking lot is irrelevant to him with regard to the issue at hand. The question is whether Scribbles is operating within its Conditional Use Permit. The answer is No, and that is what the applicant should discuss with his lawyer. He believed it was not incumbent upon City staff to go to the applicant or the property owner or to the attorney to advise Scribbles that it was operating outside of its Conditional Use Permit. Mr. Astavakra knew what the conditions were. Mr. Astavakra knew when he said there would be no DJ music or any dancing except for private events. C/Tye said he did not believe that Thursday nights were private events at Scribbles; he did not believe that when an event was advertised on KIIS-FM, it was a private event; he did not believe that when it was advertised on Scribbles website that it was a private event. He again asked Mr. Astavakra to answer whether he was operating within his CUP. Mr. Astavakra said the website did not belong to Scribbles, that the website was owned by the band that came once or twice to Scribbles to perform. So the website is not Scribbles. It is with Luna Entertainment that has nothing to do with Scribbles. The second thing is that somebody rents the place for an event and they hire a DJ. Scribbles complies with the food, they use the place and leave. So if there is a DJ, the DJ performs, and it is for a private party. He cannot MAY 2, 2006 PAGE 21 CITY COUNCIL stop someone who says they want to rent his place. There are bands playing, and the bar is open and dancers perform. He needs to rent his place to survive. He said he has contributed almost $137,000 to the City of D.B. in sales tax and property tax revenues over the past two and one. -half to three years. That location is difficult. He spent a lot of money on the place to make it survive. He got into it with his eyes open, but if someone wants to rent the place he does not say No. He promised to have his own security guards, and he has his own security, guards that are doing a very good job. He has never had a citation from ABC for under aged drinking. C/Tanaka said he too sat on the Planning Commission when Mr. Astavakra came to the Commission with his application for a Conditional Use Permit, and at that time the Commission was very careful to articulate the conditions under which Scribbles would operate. The conditions that Mr. Astavakra proposed and guaranteed that the residents at Fall Creek would not suffer through the problems they endured when the Platinum Club was open. When the applicant asks for evidence from the Sheriffs Department, one must ask if the applicant has been at the premises. During the Planning Commission meeting Mr. Astavakra stated he was at Scribbles. Apparently Mr. Astavakra was inside the premises and was oblivious to what was happening outside of the premises. There really is no need to produce evidence if the owner was present. For the record, C/Tanaka said he passed by on Thursday evening after the Planning Commission made its decision. At that point there was no appeal in process and yet the owner continued to operate as if Scribbles still had the Conditional Use Permit. This does not lend credence to the assertion that Mr. Astavakra is willing to modify his operation or change the conditions under which he has been operating, and it does not appearthat Mr. Astavakra is trying to be the good neighbor he is asserting he is. C/Tanaka said he does not believe the residents of D.B. should have to suffer through this type of "business/entertainment." When Mr. Astavakra first proposed his upscale restaurant , one of the first questions C/Tanaka had as a Planning Cornmissionerwas about the large crowds that the business attracted; and Mr. Astavakra guaranteed him that there would be no outside music. If one stands in the K -mart parking lot, one can easily hear the music from across the street. Mr. Astavakra guaranteed there would be no crowds in the patio area, and Mr. Astavakra counts the attendance including the individuals in the patio area. He specifically asked Mr. Astavakra the capacity of the upstairs banquet room, and Mr. Astavakra responded "85-90 people." And then he asked Mr. Astavakra the capacity of the restaurant, and Mr. Astavakra responded 125. If he adds those figures it amounts to about 215 patrons, and how 600 people get into the facility he does not understand without using the patio area, the downstairs cellar, the kitchen, etc. Whether the Fire Marshall has recently reviewed the MAY 2, 2006 PAGE 22 CITY COUNCIL capacity he was not aware and perhaps that was why there had been no citation issued. It appeared to him that with the size of the facility 600 people could not safely assemble. He invited the attorney to visit the facility to view the activity if it continued. Mr. Astavakra stated that the Fire Department and Fire Marshall have authorized a total capacity of 582 people. He does not use the cellar and the exterior patio is used strictly for smoking. No one hangs around outside — they go out to smoke and then go back inside. He said the Fire Department had visited his premises numerous times, and he had always been under -capacity, never over -capacity. C/Tanaka said he believed that Mr. Astavakra misled the Planning Commission when he applied for the CUP when he stated the capacity would be about 215, no music outside, and when he knew about the problems that existed with Platinum and guaranteed that would not happen with his club, and that he would be a good neighbor, and help D.B. with its economic development. He told Mr. Astavakra that he did not believe Mr. Astavakra had lived up to his agreement. Mr. Weiser said he was unaware that C/Tye and C/Tanaka had sat on the Planning Commission at the time the CUP was approved and he believed there was an inherent conflict of interest for them to now vote on this appeal. He asked that C/Tye and C/Tanaka recuse themselves from this matter. In addition, caselaw supports that contention and even the appearance of bias. C/Tanaka passing by the premises after the Planning Commission rendered its decision does not negate the 10 -day appeal process allowed by code. If the two Council Members recuse themselves there would not be a quorum, and he would request an independent hearing officer hear the matter. He asked for a vote on the matter so that there was a clear record when he takes this matter to court if the applicant has to go to court. CA/Jenkins responded to M/Herrera that there was no basis whatsoever for a recusal of C/Tye and/or C/Tanaka. The fact that they served on the Planning Commission at the time the original CUP was granted subject to conditions ,in no way causes them to have any prejudice whatsoever in this matter. The only basis for a conflict of interest of the kind mentioned by counsel would be if Mr. Tye and Mr. Tanaka had been on the Planning Commission that revoked or modified the CUP, and then were elected to Council and sat in on the appeal thereby denying the appellant a fair hearing panel on an appeal because two members had already adjudicated the issue sitting on the subordinate Council body. Whereas C/Tanaka and C/Tye were on the Planning Commission several years ago, and whereas they voted to grant the Conditional Use Permit, a completely MAY 2, 2006 PAGE 23 CITY COUNCIL different matter than is before the Council tonight, only serves to give them some enhanced information about what occurred at that time and what representations were made by the applicant to the Planning Commission as reflected in the meeting minutes. Mr. Weiser's request for recusal has no basis whatsoever in the law, and he counseled C/Tanaka and CITye that they were perfectly qualified to participate in this appeal. With respect to Mr. Tanaka's visit to the site, C/Tanaka indicated that he drove by the establishment. CA/Jenkins suggested that if any other Council Members had visited the site or had witnessed any of the matters being addressed here tonight that they should so indicate on the record. After the public speakers have been heard the Council should give the owners an opportunity for rebuttal during which time they could comment on anything that Council Members may have observed that they felt was incorrect or inaccurate. CA/Jenkins respectfully requested that Council Members refrain from further comment until all of the public testimony was heard. M/Herrera opened the Public Hearing at 9:34 p.m. Samuel Kazarian, 318 S. Prospectors Rd. #40, said he heard a statement that the capacity allowed by the Code was 215 and he heard the owner say it was 582. Which figure is correct? He said that it was his opinion that having a nightclub like Scribbles draws a lot people. The type of crowd the facility draws is unfortunate for the owner. He said he does not like what he sees and things do get out of hand. He said he had not taken time to check at night, but he knows that there has been vandalism at his complex. Whenever there are large groups of young people drinking they manage to get into trouble. He said he would like to say "No" to the whole issue. Vince Galloway, 300 Prospectors Rd., said that he could give the Council specific incidents, but the bottom line was that Mr. Astavakra continues to refer to this matter as "modifying the CUP." There is no modification proposed. The City is asking why Mr. Astavakra is not adhering to the original conditions. In no way has he adhered to the conditions, and he is therefore in violation of the CUP. Fall Creek is a community of 144 units in 12 buildings and about 73% of the community consists of homeowners. Fall Creek is not an apartment unit. He has lived in the community for 25 years and there is a diverse group of individuals who reside compatibly in the complex. He provided Council Members with a notice posted for the Planning Commission meeting and fortonight's meeting. Every day for six days notices of tonight's meeting were torn down and again as recently as this afternoon. Scribbles' continues with business as usual, and every day they are open there are beer bottles thrown up along the ivy along the side of the street and inside of the complex. Mr. Astavakra pooh- poohed the idea of repairing the gate. The Association spent a few MAY 2, 2006 PAGE 24 CITY COUNCIL thousand dollars trying to avoid confrontation and having people from the club follow homeowners inside the gate to park. Late at night when people are unable to get into the complex to retrieve their vehicles they break open the gate. The Association paid to have a timer installed to prevent the gate from being opened from 10:00 p.m. to 4:00 a.m. on Thursday, Friday and Saturday nights. During the 25 years he has lived in the complex there have been more vehicle break-ins in a one-month period since the last Planning Commission meeting than during that entire previous 25 -year period. Since the last Planning Commission meeting, a unit was burglarized. There has never been a burglary in the entire history of Fall Creek until recently. People come in and park in the complex and have sex. The Association met with Mark St. Amant and Sandy Clark on February 12 because there were concerns about drug dealing inside of the gated community. The officers recommended a Neighborhood Watch program, said they would follow through with the Narcotics Department and the POP Team. Fall Creek continues to have these types of problems. One of the club promoters told the residents that they want to get inside of the complex so that they can exit out onto Prospectors Rd.and avoid a DUI contact with the police. While the Platinum Club problems were mostly noise related, the clientele that Scribbles attracts is a very different group. Fall Creek residents are afraid to walk around their community. Yumi Branstad, 394 S. Prospectors Rd., #107, said she appreciated that the City looked out for the interest of its residents, and whenever this type of application comes before the City the officials do their best to evaluate the situation and make a fair decision. She believed that C/Tanaka and C/Tye did just that in 2003. The problems have escalated since that time, and she believed the applicant coerced the Planning Commission to grant the CUP, and later the situation changed. Of course, the community supports businesses that are interested in conforming to the existing businesses and residents. The fact that residents have waited until 9:30 tonight to speak about this matter is evidence that there is a problem. CUP's and Variances are based on privileges that are granted and not based on the law. If it is time for the City and residents to re-evaluate the permit - it is a new chapter. Threatening the City with a lawsuit clearly demonstrates that this business is not willing to be a good neighbor. She said she was very happy that the City had granted due process. She located the website. Due process means that one has respect for the law, so why would Mr. Astavakra allow an "unrelated" website to continue to advertise services contrary to the CUP. This is a demonstration of disrespect for the community. She said that she counted on the City to protect innocent bystanders. Tricia Guinto, 364 S. Prospectors Rd. said that for the applicant to claim he does not operate a nightclub is completely false. There are MAY 2, 2006 PAGE 25 CITY COUNCIL Wen- Hui Su, 364 S. Prospectors Rd., #134, believed the Council had the list of complaints from residents who spoke before the Planning Commission. She said that when she moved into Fall Creek a couple of years ago, she felt it would be a wonderful environment for her parents. However, when her parents first moved in, they could not sleep because of the loud booming noise. In the mornings her parents refused to go outside because they could see all of the beer bottles strewn about the community, and at night her parents are afraid to even take out the garbage. Basically, she and her parents are prisoners in their own home. In addition, one of the gates has to be shut down and if there was an emergency the community would have only one gate to use as an exit. One neighbor told her that one Monday morning she took her eight year-old child to wait for the school bus and saw a lot of used sex objects on the ground. The woman told her son to look up, and her son questioned why he had to look up and his mother told him there were bad things on the ground and he should not look at them. Ms. Hui Su felt it was very sad that children and elderly people could not enjoy their beautiful community. She is a college professor and has had to cancel her evening classes to come before the Planning Commission and City Council. Where do about 30 Fall Creek homeowners present this evening who will attest to the fact that Scribbles is a nightclub. The nightclub is promoted on KISS -FM 102.7, 99.1 KGGI, Super Estrella 107.1, and it advertises college nights on Thursday nights. There is a junior high school two blocks from the club, there are flyers disbursed throughout this beautiful City and on poles as well as freeway postings advertising a club with $3 drinks. What does that say to the community? This club attracts undesirable elements into her neighborhood. Mr. Galloway pointed out that Gentle Springs Ln. is a private street and because it is a private street the excessive number of vehicles erodes the asphalt even more. As much revenue as this club brings in, they are not upgrading the street. This club tarnishes the City and increases the crime rate. For Best Western to claim they cannot hear the music emanating from Scribbles is absolutely ridiculous. Her house is one of the closest Ito the club, and in the Summer she has to close her windows and use the air conditioner in the evening to drown out the music, and she felt it was unfair to the community to have to take those kinds of measures to ensure their quality of life. In the future, the Planning Commission should not allowthese kinds of permits and should be very stringent about what uses are permitted. She hoped that this situation would not be a problem for the City in the future. Henry Lee showed a Scribbles' flyer. He said he did not see any sign of a fine dining restaurant or grill. The advertisement quotes prices for alcoholic beverages and refers to "Drinko de Mayo" and this attitude spills into the community and proves what kind of activities are conducted on-site. Wen- Hui Su, 364 S. Prospectors Rd., #134, believed the Council had the list of complaints from residents who spoke before the Planning Commission. She said that when she moved into Fall Creek a couple of years ago, she felt it would be a wonderful environment for her parents. However, when her parents first moved in, they could not sleep because of the loud booming noise. In the mornings her parents refused to go outside because they could see all of the beer bottles strewn about the community, and at night her parents are afraid to even take out the garbage. Basically, she and her parents are prisoners in their own home. In addition, one of the gates has to be shut down and if there was an emergency the community would have only one gate to use as an exit. One neighbor told her that one Monday morning she took her eight year-old child to wait for the school bus and saw a lot of used sex objects on the ground. The woman told her son to look up, and her son questioned why he had to look up and his mother told him there were bad things on the ground and he should not look at them. Ms. Hui Su felt it was very sad that children and elderly people could not enjoy their beautiful community. She is a college professor and has had to cancel her evening classes to come before the Planning Commission and City Council. Where do MAY 2, 2006 PAGE 26 CITY COUNCIL the 600 patrons park? One of her neighbors who had to watch his child this evening and could not attend the meeting asked her if she found it strange that a couple of nights ago there were no cars parked in the complex and no beer bottles on the ground. Perhaps that was the night the owner took his pictures. People believe that after working hard all day they can go to their homes to relax. When they hear the noise all evening and into the early hours, people get depressed because there is no relief. She thanked the Council for their wise consideration. Abraham Tuyeb, 348 S. Prospectors Rd., #2 said that last Saturday he was coming home about 2:00 a.m. and could not get through the gate. He became concerned when he tried to turn around to go through the front gate because people were drinking and staring at him. The area has become a hangout for gangs. The previous speaker brought up a good point about safety concerns and emergencies because the complex was forced to close its gate. Residents are prisoners in their homes. Michael Case, 328 S. Prospectors Rd., #52, said the core issue was that Scribbles was operating outside of the bounds of its Conditional Use Permit. If one views the website and looks at the flyers that litter the ground in the mornings or if one drives by the club and witnesses the crowds standing outside, it is obvious that this place's primary interest is not as a restaurant, but as a nightclub. As forthe pictures, a time and date stamp on a picture is trivial to mock up. All one needs to do is to change the date on the camera or on the computer. He is not accusing Mr. Astavakra of lying, but the evidence needs to be taken with a grain of salt. He said he had driven by Scribbles countless times at different times of the evening and night and there was always a line of cars packed into the corner of K -mart that is not shown in the applicant's pictures. Eddie and Andrea Martinez, 328 S. Prospectors Rd., have lived in the complex for five years. Andrea Martinez said she was personally assaulted by one of the Scribbles patrons at 11:00 p.m. on Thursday night when she was coming home from school. The individual was cursing at her, banging on her door and telling her to let him in through the gate because he and his girlfriend had to get their car. She called the Sheriff and two squad cars arrived to speak to the individuals. It was a very frightening experience. Groups have patrolled the area in order to witness what occurs, and they have seen girls dressing on the street and people urinating in the bushes. The Fall Creek complex is a very nice community and to not be able to use the security gate is a real invasion of privacy. Eddie Martinez said that the past year and a half had been hell for them. Not only have they had to take time to patrol their areas they have to be home before the nightclub opens to avoid being involved in the traffic and the people MAY 2, 2006 PAGE 27 CITY COUNCIL who patronize the establishment. For the owner to say Scribbles is not a club is ridiculous because it is a club. Driving to work in the morning she hears announcements on KISS -FM inviting people to come to Scribbles. The Planning Commission denied the CUP, and the following Thursday Scribbles was open for business. These are not the type of people she wants in her City, and she strongly urged the Council to deny the appeal. Danoush Tehrani, 364 S. Prospectors Rd., said that when he moved to D.B. two years ago he knew it to be a safe and quiet place. However, Scribbles is neither safe nor quiet. He was once inside the club and paid the owner $10 to enter. There are three different stages with three different types of music with young people dancing. He did not see a restaurant and did not know how they could call it a restaurant. Fie asked the Council to please take action. His car was vandalized and he paid $8,000 to have it repaired. He has proof of the repair payment and stated that the vandalism occurred the same day that 15 other cars were vandalized. Fred DeNellis, Internal Security Consultant for Scribbles stated that he has heard many false accusations about Scribbles. He is also a security professional with a law enforcement background. His job is to survey establishments before he puts his team into operation to make sure it is safe for him and his staff. Scribbles is a dining facility. A lot of things that people have not seen is that there are numerous amounts of people inside the establishment for sit down dinners on both sides of the dancing areas. Dining services are provided up until at least 10:00 p.m. The type of people that visit the establishment — again, it is not a nightclub. He said they have people that like to go there for music, for entertainment and for socializing and that is what this establishment is, it is not a nightclub. A nightclub is what you consider nightclubs in downtown Los Angeles. This establishment is very concerned about who it allows in. He has heard from the tenants of their neighbors nothing but gang affiliation claims. That is a zero tolerance with this establishment. He said he was the liaison with the Los Angeles County Sheriffs Department and with the owners of the establishment, and they look to him to preserve the right of those individuals that are allowed into the establishment, what they want, and also provide escort services out of the establishment when those individuals do not fit the criteria of what the establishment wants as far as visitors. The establishment has many outside agency individuals that come in to the establishments to entertain their wives, their boyfriends, their girlfriends, etc. This is the type of atmosphere Scribbles has portrayed, and he has been with Scribbles dinner establishment for the past year and a half. If he did not feel comfortable working there he would not have started this whole thing. All he could say was that he would like for the Council to reconsider what it had been hearing as far as hearsay and what is fact. MAY 2, 2006 PAGE 28 CITY COUNCIL Ken Manusia has lived in D.B. for many years. He and his wife visit the Scribbles Restaurant. Scribbles' serves good Indian food and American food. He and his wife have visited the establishment more than 12 times since 2004, never had their cars damaged, never experienced rude treatment and never were caused any kinds of problems. He has remained at the establishment late and always felt safe. There is a good mix of age group. He is 49 and he has seen older people at Scribbles. He wanted to say something positive about the facility. Richard Acosta said he has been going to Scribbles for about two years and taken a lot of his dates for dinner. He said he did not understand a lot of the speakers because Scribbles does not let them close to the gate area. The gentlemen direct patrons to parking at the back of the club. There are no gangs at Scribbles, and he has never had any bad experience in all, of the times that he has gone to the establishment. He has seen the Sheriffs there and he has seen them inside. He does not know how the gentleman can say the Sheriffs are afraid. They are there every so often, and nothing happens to them. Every time he has gone to Scribbles he has had a good time, and he has never seen anything negative at Scribbles. He has only positive things to say about Scribbles. He has taken his family there, and he has taken his son there. They have a great security that takes care of everyone, and he feels very safe there when he goes in and when he comes out. Jing Se Choi (James) said he saw two guards on the video and that although they may block the people, they do not block the music to the community. The applicant said that the website was not their website, but isn't the website a reflection of what the establishment does and what service it provides? He said he believed that when the City first issued the Conditional Use Permit, it was like an agreement; and the applicant knows what should and should not be done. It is not to say that the City wants to put them out of business, the City is saying that the applicant does not comply with the CUP. If the business is projected to be successful, it should be projected based on the conditions of the permit. If the business cannot find a legitimate way to earn money, he is sorry about that, but perhaps the applicant made a wrong investment. The applicant cannot modify the permit to suit his own needs. He should first analyze what can be done with the CUP and earn the money from the business. The Planning Commission hearing was two months ago and Scribbles is stili conducting business as usual. If the applicant wanted the people to give his establishment a chance, he should be willing to change his attitude to warrant being given a chance. With all of the recent activities it does not appear that the applicant wants a chance to remedy the situation because he is still continuing the nightclub business knowing that it disturbs the community. The applicant can MAY 2, 2006 PAGE 29 CITY COUNCIL argue that outside of the premises is not his responsibility, but he has advertised to draw the type of people to his establishment that cause safety concerns in the community. Tony Benowitz said he went to Scribbles when it first opened and enjoyed an amazing rack of Iamb dinner. He is a bartender, server, band member and student. His Dad is a caterer, and he understands it is tough to make a living in the food business. He wanted the restaurant to make it. He told people about Scribbles, and when he went back for another visit it had turned into a club. He said he was present with friends in the community, and he felt he had to stand up for women, children and the elderly and the potential for having a problem. The applicant's attorney mentioned a homicide in front of the bowling alley, and Mr. Benedito said he was sure there could be a potential hornicide in front of Mary's Hallmark, for example, but the potential with 500 people who do not know each other and are drinking is a potential for problems. The City cannot sit around and wait for something bad to happen. He does not personally have a problem with the establishment, but he cannot stand on the sidelines and watch his community suffer. He feels for Mr. Astavakra, but he is not living up to the CUP, and he must. Fall Creek is a very diverse community that has no problem with its diversity and with people. However, the residents have a problem with activities, and that is what is being addressed tonight. He hoped the Council would make the right decision. Mr. P.N. Patel, had invested money in the establishment but had not done so until he went through the entire process with Los Angeles County. He sat through the meeting and has a copy of the minutes, and they are allowed to have private parties. He does not know that private parties mean only weddings, anniversaries and birthday parties. After he obtained the license he invested more money into lining up other private parties -- fraternities. He has had 31 fraternity parties, and to get them it took him a long time. From CalPoly Pomona and Cal State Fullerton, he has had 31 parties within the last year. As soon as he hears the promotion is not valid, he tries to track it down to tell them not to advertise that way because the City does not like it. He! was allowed posters before, but LA County said not to do the posters, and they are not doing posters. Although a memberof the City said he could not charge admission, he was told by LA County that he could. He said D.B. was calling it a nightclub and the remarks he got from Los Angeles County officials was, "well, just don't call it a nightclub if you know what I mean. If you want to call it a day club, or call it a dance club if you want." It's in the minutes, and he was joking about it, so I said okay, I won't call it a nightclub. He said "Call it anything you want because you do have an entertainment license." Based on that CUP — based on that license, I invested all the money; and I made sure that the establishment never crossed the MAY 2, 2006 PAGE 30 CITY COUNCIL boundary ever. And there are things that otherwebsites reflect about the restaurant. He does not tell them what to do, and as soon as he catches them he tells them. Unfortunately, he did not have everything figured out when Lt. Maxey was there on March 2, and he said there would be 2000 or 3000 people. That was a private event sponsored by Camel cigarettes — RJ Reynolds event. He has all of the records. It was a three-week event and it was a private party. The fraternity parties are also private, and they bring their own DJ's. On any given Thursday night Scribbles has multiple fraternity parties. It is very hard to have them come again and again. There are 45,000 students at CalPoly, and there are 38 fraternity and sorority clubs. He has access to 16. That does not even include Cal State Fullerton. Those are the private parties, and that is why he decided to come here and speak. He was present during the last hearing, but he did not take the stand even though he had invested a lot of money because whenever other people said something it was fact, and whenever he would try to say something, it was allegations. He was trying to make sure that he was abiding by the CUP as he understands it. He went to the meeting, and afterthat meeting he invested $900,000. More than anything he wants to protect his investment and that is the reason he is present this evening. He took the photographs, and a Sergeant who works for D.B. saw him taking the pictures. Every picture was taken of every corner that was in question. He has a letter coming from Carl's Jr. that will state there has been no harm to his employees, that they have not been threatened and do not feel threatened and that Scribbles is actually good for their business. ICDDIFong said that one of the comments by the applicant was that he was not afforded due process. Staffs report refers to this allegation. The applicant was properly noticed about the March 14 Public Hearing by Certified Mail, Staff contacted the applicant, and the applicant told staff that he would be out of the country and requested a continuance. Staff complied with the request and continued the matter to April 11. Since the applicant was first notified, he was aware of the Public Hearing to consiiderwhether he was operating within the Conditional Use Permit. Regarding the comment about the Los Angeles County Business License, she attended the Commission hearing. It took Scribbles two years to obtain a business license as a condition of the CUP. As stated in staffs report and as the Council knows, D.B. contracts with LA County for the issuance of business licenses. Staff attended the hearing to make certain that the Business License Commission Members were aware that the Conditional Use Permit approval was for a dinner house with very light entertainment and that there is no nightclub use permitted. The hearing was frustrating, but staff made it clear that the business license should not be approved for a nightclub, only as a dinner house. As far as selective enforcement and the bowling alley, she was unable to address that concern and directed the Council to the Sheriffs MAY 2, 2006 PAGE 31 CITY COUNCIL Department. The Los Angeles County Fire Department approved the maximum occupancy at 582 according to the applicant, and that is different from the application provided to the City by the applicant. Lt. Maxey said that he and his colleague spoke about taxing the Department's resources and about the clientele that patronizes Scribbles. It would seem to him that in the City Council chambers his Department would be free from those issues. However, he and Sgt. Sachs were subjected to an intoxicated individual who sat behind them waiting to testify in defense of Scribbles tonight. When the flyer showing the naked woman was produced, this individual began making sexual innuendoes to Sgt. Sachs, and because he created a disturbance, Lt. Maxey was forced to request a unit to pick up the individual and escort him out of the building. The unit escorted the individual out of the City. Lt. Maxey said that if this isn't a prime example of what this facility brings to the City, he does not know what is. C/Tye said he had breakfast at Continental Burger last Saturday, and Continental Burger is next door to Scribbles. M/Herrera said that over a year ago she was driving on the SR 60 into East Los Angeles and took the off ramp at Garfield and Wilcox where she saw a bright fluorescent poster advertising Scribbles. She wondered at the time why there would be a scribbles poster in East Los Angeles. She thought it could not possibly be advertising the D.B. Scribbles, but as she got closer to the poster she saw clearly that it was Scribbles on Gentle Springs Ln, in D.B. She fails to understand why if, as the owner maintains, the events are only private parties, that posters would be displayed in East Los Angeles inviting people to attend the facility on Thursdays, Fridays and Saturdays for drinking and dancing. C/Chang said it is the obligation of Council Members as representatives of the people to drive around the City to make sure that the City is safe and well maintained. He has heard enough to know that he does not need to visit the area. He has had people call him, and he has seen the advertisement at the freeway exit. He has heard enough and does not believe he needs to check inside the facility. Mr. Weiser expanded his recusal motion to include M/Herrera and C/Chang. He thought it was absolutely clear that they represented the public, but had constitutional standing in these hearings, and that's what courts of law are for, to enforce those constitutional standards. He cited the ease Stivers v. Pierce that says that you can't even have an appearance of bias. Certainly the remarks he has heard here go beyond the appearance of bias, they go to the issue of actual bias. He MAY 2, 2006 PAGE 32 CITY COUNCIL said that he thought when people make remarks about saying I saw this poster a year ago, and they are wondering why this poster is out there in East Los Angeles, that goes to the issue of whether one can be a fair adjudicator at this hearing. With Council Member Chang's remarks he felt it went to the question of even being a fair adjudicator. And that is what a Council Member's constitutional duty is. Regardless of whether the Fall Creek members think this is a buddy - buddy club and this is their home, a court is going to look at what the United States Constitution says and what State law requires and not what people come up here and say based on hearsay, or Lt. Maxey, maybe we should put a CUP for any patron of Scribbles not to be able to attend the City Council. Lt. Maxey has come up with a whole new issue here. But that is what is required, and I'm going to ask that the whole Council recuse itself. As far as C/Tye and C/Tanaka, he seriously disagreed with the City Council's analysis. One of the conditions being appealed here is a finding by the Planning Commission that the original Planning Commission issued the CUP based on misrepresentations and fraud. C/Tye stated earlier that if he had known that Mr. Astavakra was going to operate in the way he is currently operating, that he would have not voted for this original CUP. So these Council Members are absolutely in a conflict of interest in terms of being able to vote on this appeal, and he asked that for the record it be stated that he wanted a motion on his recusal whether in fact the individuals were going to recuse themselves or not before voting on the actual substance. Now as far as ICDD/Fong goes, notice does not mean just notice. Mr. Weiser cited case United States v. James Good Realty, a 1965 U.S. Supreme Court case. It states that you must have knowledge of the specific charges and meaningful time to respond. Giving somebody the specific charges two days before the hearing and expect them to respond in two days. And you do have the duty to give them the underlying evidence and not just rely on double hearsay, triple hearsay coming up here. Because that is what a court of law is going to require. As far as the equal protection challenge that we made as far as the bowling alley, there is a police log and that police log will tell the story of whether in fact Scribbles is being treated deferentially. He said he has heard nothing here as far as the evidence that supports that there is a violation of the CUP. There is a business license in place from the County of Los Angeles. It is effective until May 31, 2006. It is still operative. You have an opportunity to raise your challenges of public nuisance and violation of your CUP at that business license hearing. You lost at that hearing. ICDD/Fong indicated that she raised issues about the nightclub. You never appealed it to a court of law. You are administratively collaterally stopped from putting the cart before the horse and saying that they are in violation of their CUP. You have to go first to the County and get them not to renew that business license and then go back and do your land use planning. They have a business license. They have an absolute legal right to operate as they MAY 2, 2008 PAGE 33 CITY COUNCIL have. And one thing I'm seriously concerned (about) is what's the definition of a nightclub? Nobody has defined what a nightclub is here. C/Tye said he thought the owner could charge at the door. There is no evidence they are operating as a nightclub. What is the definition? What is your standard of a nightclub? They have an entertainment license from! the County of Los Angeles. You were there at the hearing so how could they be in violation of what the County has given them and has told them is permissible. There is not substantial or any kind of evidence to support the Planning Commission's findings. There is no evidence here to support a modification of the CUP, and as; he said, there is a jurisdictional problem of the Council voting on something aside from the recusal on something where the County of Los Angeles permits them to do what they do. And in final remarks he heard a lot of hearsay and a lot of emotionalism from testimony from t=all Creek members about doing the right thing. We'll, do the right thing under the Constitution. We live in a country of laws. We live in a country where people cannot just come up and deprive another person of a livelihood without due process of law. Thank God we have courts of law that are final adjudicators of these issues. And I would hope that we don't have to end up there. As I said, there's a practical issue here that you have to consider. This is going to be very, very costly to the City and to my clients if we have to fight this out in a court of law,and my experience is that we'll be back here in two or three years, and we'll get nowhere. Now maybe this is a political hot potato, and maybe politically you vote based on what you have to do for your constituents, but that's not the right thing for the City and the ultimate goal here. So I would urge you, find a middle ground. The wisdom here is to find a middle path. Send this back to the Commission. See if there's a way of working this out before you make a final decision on this. M/Herrera closed the Public Hearing at 10:42 p.m. CA/Jenkins commented on the record regarding assertions made by counsel for the business owner. First, with respect to the procedural due process issue, he would note that as ICDD/Fong indicated the business owner was given ample opportunity and notice to prepare for the Planning Commission hearing. In any event, this hearing before the Council this evening is a de novo hearing, meaning that the Council is hearing the evidence all over again and weighing the evidence, not examining whether the Planning Commission was right or wrong. The property owner has appealed the matter to the City Council, and the City Council is hearing the evidence anew and weighing that evidence as Council Members. The property owner has had more than sufficient notice of this hearing, and in fact, several weeks ago asked for copies of the police reports and was advised in writing how he could obtain copies of those police reports should he MAY 2, 2006 PAGE 34 CITY COUNCIL wish to review them. With respect to the County Business License Commission, the City's Business License Ordinance is a completely separate set of regulations than its land use ordinances. When consideration is given to the issuance of a Business License, consideration is based on completely different criteria. The Business License Commission looks to a very narrow range of issues pertaining to the character of the operator of the business, whether that person is a legitimate person, whether that person has a criminal record, making sure that there is ample security for the operation. It is not a land use hearing. The City's Zoning Ordinance provides a completely separate opportunity for the City to evaluate operations through the Conditional Use Permit process. The City is in no way estopped from modifying or revoking a land use permit based on the criteria contained in the code merely because a business license has been issued or, for that matter, a business tax has been paid. A property owner gains no rights simply by complying with completely different aspects of the Municipal Code. Much has been made of the fact that the business was cited in the intervening period between the Planning Commission hearing and this hearing and that once the Planning Commission action was appealed it was stayed, hence it is not in effect. That is true. The citations are based on the existing CUP, not any modified CUP. The existing CUP limits entertainment to private parties in the banquet room only of the restaurant and only allows light entertainment in the form of jazz or piano in the bar area only of the restaurant. That is what the current existing CUP actually says. With respect to the issue of "bias", decision -makers are disqualified by bias only if they are influenced by factors outside of the merits of the matter. If the Council's decision is tonight based on the evidence that has been brought, based on the staff report, based on the testimony that has been received, and the Council is making its decision based on that evidence and only that evidence that the Council has taken in during the Public Hearing, then the Council is not biased. Council is biased only if Members have prejudged the matter by virtue of some issue that is unrelated to the merits that are before the Council tonight. Mr. Weiser has raised a lot of legal terms that are applicable to trials in courts of law but that are inapplicable to an administrative proceeding such as this. The Council is permitted to hear testimony from residents — people who are neighbors of the business; Council is permitted to consider the testimony that Members have received; and the Council's duty is to determine whether or not there has been substantial evidence presented to support whatever decision the Council makes. The Council's decision must be based on substantial evidence so that Members can make findings based on that evidence. The standards applicable to a court of law, the prohibition against hearsay, and some of the other rules are not applicable to this hearing. If the Council's decision is ultimately judged by a court of law, it will be judged on whether or not the Council's decision was based on substantial evidence in the record now before the Council. MAY 2, 2006 PAGE 35 CITY COUNCIL C/Chang thanked CA/Jenkins for his input. Council Members are afforded the right under the Constitution to allow the people to provide input so that the Council Members are able to make an informed decision. The bottom line is whether this operation is in compliance with the conditions under which the owner was granted a permit regardless of extraneous issues. The CUP was issued based on a bar and entertainment use and more precisely "a jazz band, a guitarist or a pianist on a small stage within the bar and a DJ with dancing for banquets and private parties held within the banquet room." The CUP is quite clear and the conditions stated at the time were quite clear, and the applicant was quite clear. The record indicates that the property owner was committed to abiding by the conditions of the CUP. The owner of the establishment, which was supposed to be used as a "restaurant" turned the establishment into a business that was no longer in compliance with the approved CUP. As a result, the City gave the applicant proper notice and ample time in accordance with due process. When the applicant violated the CUP he caused the City to respond accordingly. The Council heard from the public and law enforcement officials that the safety of the public has been compromised as a result of the operation, and Council bears the responsibility to provide a safe environment for its residents. C/Tye clarified for Mr. Weiser that "had I known in May of 2003" — he did not say he would vote against the CUP, he would have considered it differently. A fine dining restaurant is different than a nightclub; a fine dining restaurant is different than a dayclub; it is different than what exists at Scribbles on Gentle Springs Ln. in D.B. Mr. Weiser made reference to a County hearing that he thinks C/Tye attended. C/Tye was not in attendance at any County hearing. He wanted to make certain everyone was clear that he would not put the recusal issue to a vote and that he would not recuse himself from voting on this matter. In November 2005 more than 7,000 people in the City of D.B. voted for him to serve on their City Council, and more than 5,000 people voted' for C/Chang, and he could not imagine that a single person who voted for either of them thought it would be a problem for them to make a decision on behalf of the citizens. He reiterated that he had no intention of recusing himself. The applicant has referenced hearsay time and time again and in his opinion, it is moot and so much background noise. The issue is whether Scribbles is operating within its Conditional Use Permit and de novo or otherwise, he believed he could make that decision tonight. Having come to the table with no opinion, he believed that based on the evidence he did not believe that Scribbles' was operating within the Conditional Use ' Permit. Mr. Weiser said he was an advocate, and C/Tye said that he too is an advocate — he is an advocate for the Fall Creek residents whose peace is being disturbed and whose solitude is being ruined. He is an advocate for the citizens of D.B. who on Thursday nights have their safety compromised when all of the City's public resources MAY 2, 2006 PAGE 36 CITY COUNCIL have to be marshaled to the Scribbles area to be prepared to deal with large crowds. His daughterworks at a local business in D.B., and when she calls the Sheriff, as she did the other day, she needs to be able to depend on their quick response. Any resident and any business owner must be able to depend on adequate response from the Sheriffs Department, and that assurance is not available with the kind of resources that are being spent on Thursday night outside of Scribbles. And, he did not believe those resources would be required for an upscale dining established. He believed Scribbles was a nightclub, and he was not sure about the definition of a nightclub, but felt Scribbles came pretty close. C/Chang said that an operation with two massage tables and two masseuses providing VIP treatment is not allowed underthe CUP and is absolutely a violation of the City's Code. C/Tanaka said that he was present on the Planning Commission when the applicant initially applied forthe Conditional Use Permit and believed he understood the application process and what the property owner proposed. Tonight he will not recuse himself ,and he will make his decision based on the evidence provided to the Council this evening. Further, he will base his decision on whether the business is operating in conformity to the approved CUP, whether it is a public nuisance, whether it is threatening the health and safety of the community and whether to revoke the entire Conditional Use Permit. M/Herrera stated that this City spends $5 million a year for its public safety budget and to have, as has been mentioned, all of the public safety resources in one location because it is difficult to maintain law and order is a travesty. The adjacent businesses are having difficulty with business being chased away because there is a lack of parking in their lots, and there are so many individuals loitering and using the parking lots of fast food establishments as outdoor restrooms, it was, she believed, a public nuisance. There was a comment that the information from the residents was "hearsay." The individuals that spoke observed things happening, and that is not hearsay, it is eyewitness testimony. C/Chang moved, C/Tanaka seconded to adopt Resolution No. 2006- 40 denying the appeal and upholding the Planning Commission decision. Motion approved by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes MAY 2, 2006 PAGE 37 CITY COUNCIL 8. COUNCIL CONSIDERATION None 9. COUNCIL SUBCOMMITTEE REPORTSICOUNCIL MEMBER COMMENTS: C/Chang thanked everyone present for participating in tonight's meeting and wished everyone a good evening. C/Tanaka attended the Lorbeer Middle School Evening of the Stars Open House and Student Recognition and attended the Soroptimist Awards Banquet on behalf of the City. C/Tye attended a Neighborhood Traffic Management meeting with AE/Molina presenting an excellent program. Traffic is the City's number one concern and he encouraged everyone to invite friends and join with the City in future meetings and become engaged in the process. He encouraged everyone to also become involved with the Lemon Ave. Scoping meetings, a long and involved process. He hoped to see many people at the Brahma Foundation Casino Night on Friday. He congratulated Congressman Gary Miller, a co - recipient of the League of California Cities Congressional Leader of the Year Award. Congressman Miller was recognized primarily for his support of Community Development Block Grant funding. C/Tye congratulated Assemblyman Huff who was reappointed as a Whip in the State Assembly. MPTIZirbes is in Sacramento and will check into the hospital tomorrow for surgery at 7:30 a.m. on Thursday morning. He asked that everyone keep MPTIZirbes in theirthoughts and prayers and encouraged everyone to flood his room with cards at Sutter General Hospital, 2801 L Street, Sacramento, CA 95816. He said he could think of nothing better than to have the hospital administration complain about the flood of mail to Bob Zirbes. He thanked everyone for participating tonight and said he appreciated being allowed to serve on the City Council. ClChang said that MPTIZirbes requested no flowers. M/Herrera thanked everyone for participating in this evening's meeting. ADJOURNMENT: With no further business to conduct, M/Herrera adjourned the Regular City Council meeting at 11:05 p.m. MAY 2, 2006 PAGE 38 CITY COUNCIL The foregoing minutes are hereby approved this 16thday of may , 2006. 14�4valll� CAROL HERRERA, MAYOR