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2011/07/19ANAHEIM CITY COUNCIL REGULAR and ADJOURNED REGULAR MEETING OF JULY 19, 2011 The City Council regular meeting of July 19, 2011 was called to order at 3:00 P.M. and adjourned to 4:00 P.M. for lack of a quorum. The regular adjourned meeting of July 19, 2011 was called to order at 4:14 P.M. in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. A copy of the agenda was posted on July 15, 2011 on the kiosk outside City Hall. PRESENT: Mayor Tom Tait and Council Members: Gail Eastman, Lord Galloway, Kris Murray and Harry Sidhu. STAFF PRESENT: City Manager Tom Wood, City Attorney Cristina Talley, and City Clerk Linda Andal Mayor Tait called for a moment of silence to honor Anaheim Police Officer Brian Hayes who lost his life in a plane accident on Sunday and for Lance Corporal Norberto Mendez whose funeral took place earlier this day. Invocation: Pastor Edward Wiafe, Messiah Pentecostal Ministry Flat Salute: Council Member Kris Murray Presentations: Recognizing the winners of the City of Anaheim Anti - Litter Poster Contest Dora Delgadillo announced the winners of the library sponsored contest challenging students in grades K -3` and 4th through 6 grades to create an innovative message discouraging litter. The theme of the contest, she explained, was "Be Kind to the Environment, Don't Litter." She revealed the gold, silver and bronze winners in each division. Acceptance of Other Recognitions (To be presented at a later date): Recognizing Alden and Linda Esping on being honored by the Anaheim Family YMCA Carolyn Carpenter, YMCA, thanked Council for recognizing Alden and Linda Esping, volunteers who represented Anaheim's good neighbor policy and together collectively donated an extraordinary number of service hours to this community. Recognizing the Anaheim Ballet 2011 International Dance Festival Larry Rosenberg, Anaheim Ballet, announced the summer intensive events taking place in the City, and the August 13 ballet of international superstars scheduled at the Grove of Anaheim. He thanked the City for their support of Anaheim's resident ballet company. At 5:34 P.M., the Anaheim Housing Authority was called to order (in joint session with the Anaheim City Council). Council Meeting Minutes of July 19, 2011 Page 2 of 12 ADDITIONS /DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS (all agenda items): Mayor Tait invited OCTA Project Manager Arshad Rashedi to the podium to provide an update on the SR 57 northbound widening project. In an effort to improve traffic flow, he reported, OCTA in cooperation with Caltrans, was adding a northbound lane from north of the SR -91 near Orangethorpe in the city of Placentia to Lambert Road in the city Brea, as well as between Katella Avenue and Lincoln Avenue in the city of Anaheim. These improvements would reduce congestion, increase traffic flow, and enhance road safety. Mr. Rashedi stated the project had been approved in 2009; construction bids were to be opened on September 1 St with a projected work completion date of late 2014. Improvements to this stretch of the 57 included adding one northbound general lane from the Katella off -ramp to the Lincoln on -ramp. Also included was additional widening to the existing lane width, the HOV lane width and the inside shoulder width to conform to Caltrans design standards. He added the project was segmented into four stages and during construction, all northbound lanes and ramps would be open, although ramps would be reduced to one lane with closure during night time hours anticipated at Katella and Douglas Road. He remarked the project had been coordinated with ARTIC and the 91 improvement projects and OCTA would continue this coordination throughout construction. He stated there was an extensive traffic management plan and a strategic sequencing of work to minimize impacts. Marissa Espino, OCTA Community Relations Officer, outlined the community outreach process being used to inform all interested parties of construction impacts, including meetings, open houses, email and newsletter distributions, and personal contact with the various venues impacted along the 57 corridor. Responding to Mayor Pro Tern Sidhu's question, Mr. Rashedi stated the construction contract required working with the various venues and sports franchises along this corridor to coordinate with and ensure all were well informed on the construction schedule. Cecil Corkin Jordan, Outreach Ministries, spoke on a number of issues. James Robert Reade, resident, referenced comments made during oral communications by William Fitzgerald. Dave Wilk, GOALS, requested Council's support on Item No's. 9 and 10 on the agenda relating to an agreement to develop vacant land north of La Palma Park for Dreamscape 2, a sports and athletic oasis to be built with private funding for low income youths. In addition to the sports facilities, he announced, an 8,000 square foot urban garden featuring art as well as produce would be a part of the project. He added even during these challenging economic times, GOALS was trying to leverage the renewable power of children and requested Council support this effort. Julia N., resident, requested Council's assistance regarding the area near the Golf Headquarters, remarking it was congested, with kids roaming the streets, loitering and other related problems. Brian Beger, AMEA, requested Item No. 6 be removed from the agenda asking that the labor organization continue to work with HR Department to find a solution to the budget deficit other than to layoff 26 park employees. He added AMEA members, on average the lowest paid employees in the City, were the only employees taking a five percent wage reduction, paying a portion of their pension costs and bearing the burden of being laid off. Council Meeting Minutes of July 19, 2011 Page 3 of 12 David Pangle, AMEA, emphasized the majority of AMEA employees had worked for Anaheim from 10 to 30 years, providing essential services with pride and dedication. He urged Council to allow additional time to consider this proposal and allow staffing levels to be decreased through attrition. Tim Hainline, AMEA, remarked that today his job was not being terminated; however, he felt it was his duty and privilege to speak on behalf of his coworkers as to the devastating affects of layoffs to personnel as well as to the negative impacts of privatization. Margaret Hunter, 30 year employee, urged Council to reconsider layoffs, stating contractor standards were far below those of park workers who took pride in their work and cared about residents. She added a petition with about 400 signatures opposing the proposed layoffs had been collected. Ms. Ontiveros, AMEA representative, asked for a delay in the implementation of layoffs to allow employees time to face the reality and to provide for the near future. Amin David, resident, opposed the proposed employee layoffs stating privatizing services would result in the deterioration of City services, increase the number of unemployed and result in long -term higher operating costs. Alone Larsen, Cultural and Heritage Commission, shared the many events and summer activities coming up for the community remarking the arts continued to be alive and well in Anaheim despite the economic challenges. Carol Latham, Arts Council, announced the specific events taking place from the Art Crawl on August 13 with dancing to big bands, poetry slams and chalk artists to the Chocolate Exhibit at the Muzeo and the Jerry Springer production at the Chance Theatre. Ben Nepal, park employee and resident, offered his perspective on the proposed job loss and his background as a City employee. Benjamin Nepal, Jr., asked Council to save his father's job Peter Hedrick, La Palma Park crew, reminded Council park workers prepared parks for every special event as well as providing after event cleanup services, services a contractor would not provide as well. Tim Steed, AMEA representative, asked Council to delay the layoff proposal to allow AMEA to come up with a solution to the budget deficit. He stated Anaheim's park employees had turned the park system into a crown jewel and was one of the reasons property values were maintained in the City. Alejandra Ponce de Leon, OCCORD, remarked that poverty was the major reason for family problems and urged Council to keep quality jobs in the City. Sue Turner, resident and business owner, requested Council reevaluate the decision to outsource park maintenance. Katie Minnelli, resident, strongly urged Council to place a ban on circuses with animal acts due to abuse in the training of circus animals and the general neglect they endure. Mark Mashawn, employee, expressed concerned at the loss of park jobs, and spoke of the family -type relationships he had made over the years with City crews. Council Meeting Minutes of July 19, 2011 Page 4 of 12 D117 Lujean Groshon, in support of her father, stressed the point City workers were dedicated and proud to do their part for the City of Anaheim, and hoped Council would not approve layoffs. Dale Dwight, second generation employee, remarked that with his layoff and that of other long- time employees, the City would lose many years of experience in a variety of specialties that could not be duplicated by contractors. Leo Gary, park employee, spoke on behalf of Guy Valdez who was a 30 -year employee. Mr. Valdez was unable to attend this meeting as his son was representing Southern California in baseball's western regional playoffs, after having grown up and played ball in Anaheim's parks and ball fields for many years. He added there were quality people working for the parks services who had been trained by some of the best ball field people around. Richard Eastman, parks employee, remarked that he had worked in the City for 20 years and customer service was always a very high priority to the department. He had seen the quality of work from contractors and felt it was not up to Anaheim standards. Steve Valdez, resident, supported the parks employees, remarking that contractors did not live up to the standards of City employees who took pride in their work. An individual complained that his residential park permit stated that each home in his parking district could only purchase three permits, however, when neighbors actually purchased their permits, the City allowed them to buy 10, which meant the parking problem was never corrected. Mayor Tait asked the City Manager to look into this issue. William Fitzgerald remarked the City was wasting $300 million on the ARTIC project, which he felt was spurred by the Disney Corporation to provide for access to Disneyland and was the reason the City was laying off personnel. At 6:58 P.M., Mayor Tait closed the public comment portion of the meeting, recessed the City Council meeting to consider the Housing Authority agenda. Council session reconvened at 6:59 P.M. CONSENT CALENDAR: Council Member Eastman removed Item No. 6 from the consent calendar for further discussion and Mayor Pro Tern Sidhu removed Item No. 9 and No. 10. Mayor Tait indicated he would abstain on Item No. 7 declaring a potential conflict of interest as he had an interest in property in the vicinity of this project. Mayor Pro Tern Sidhu moved to waive reading in full of all ordinances and resolutions and to adopt the balance consent calendar in accordance with the reports, certifications and recommendations furnished each council member and as listed on the balance of the consent calendar, seconded by Council Member Murray. Roll Call Vote: Ayes — 5: Mayor Tait and Council Members: Galloway, Eastman, Murray and Sidhu. Noes — 0. Motion Carried 5. Approve the Investment Portfolio Report for June 2011. 7. Determine, on the basis of the evidence submitted by Integral Communities, representing The Orangewood Project Owner, LLC, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2006 -00003 for the 2010 -11 review period for development of an approximate 3.8 -acre AGR -4704 Orangewood Condominium project located at 2211 East Orangewood Avenue in the Platinum Triangle. Mayor Tait abstained on this item due to a potential conflict of interest as he had an interest in property in the vicinity of this project. Vote: Ayes — 4; Noes — 0, Abstention — 1. Council Meeting Minutes of July 19, 2011 Page 5 of 12 8. Adopt a seven -year Transportation Capital Improvement Program to comply with D175 Renewed Measure M funding requirements. 11. Approve and authorize the Executive Director of Community Development to execute and administer a Cooperation Agreement with the Housing Authority for the transfer of HOME Funds to assist in the acquisition of residential sites located at 933 -939 S. Park AGR- 6824.1 Circle to provide permanent housing for families with developmental disabilities (related to Authority Item No. 01) 12. RESOLUTION NO. 2011 -105 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM finding that it is in the best interest of the City to authorize the sale of City owned property, and authorize the City to enter into a Purchase and Sale AGR -6842 Agreement with Larry P. Benvin and Mary J. Benvin (ABA2010- 00196; 9600 West Random Drive). 13. RESOLUTION NO. 2011 -106 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Office of the City Treasurer). 14. RESOLUTION NO. 2011 -107 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Finance Department). 15. RESOLUTION NO. 2011 -108 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Public Works Department). 16. RESOLUTION NO. 2011 -109 RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Fire Department- Hazardous Materials Section). 17. ORDINANCE NO. 6217 (ADOPTION) AN ORDINANCE OF THE CITY OF R100 ANAHEIM electing to comply with and participate in the Alternative Voluntary Redevelopment Program contained in Part 1.9 of Division 24 of the California Health and Safety Code (Introduced at Council meeting of July 12, 2011, Item No. 21). 18. ORDINANCE NO. 6218 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Subsection .010 of Section 18.04. 100 of Chapter 18.04 and 0280 Subsection .020 of Section 18.42.030 of Chapter 18.42 of Title 18 of the Anaheim Municipal Code (Zoning Code Amendment No. 2011 - 00100; DEV2011- 00028) (Introduced at Council meeting of July 12, 2011, Item No. 22). 19. Approve minutes of Council meeting of July 12, 2011. END OF CONSENT CALENDAR: 6. Accept the low bids and approve the agreements with Marina Landscape, Inc. and Merchants Landscape Services, in amounts not to exceed $522,400 and $862,700 AGR -6825 respectively, for park maintenance services for a one -year period with up to four one - AGR -6826 year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #7521. Council Meeting Minutes of July 19, 2011 Page 6 of 12 Director Terry Lowe, remarked, that in response to the City's current financial situation and given the significant reductions experienced over the last three years, budget targets for his Department required further reductions in staffing in order to balance the Community Services budget. He emphasized that every function and service provided by the Department was analyzed to determine if there were alternative service delivery models that could be used to maintain the best possible service level for residents while reducing on -going operational expenses. Many of these strategies were employed to provide quality services the public expected and enjoyed while fulfilling the fiscal responsibility to provide these services within available resources. He added that further privatization of park maintenance best fit the criteria at this time and the only way to determine whether savings would be sufficient was to issue a Request for Proposal (RFP). He further added that significant research was conducted to assemble a set of specifications that would insure parks would continue to be clean, safe and attractive. In addition, Southern California cities with similar park systems that contracted the park maintenance function were consulted to learn and avoid the pitfalls they experienced when making this transition. The specifications were crafted recommending specific staffing levels to insure park patrons would not be inconvenienced by this effort and parks would continue to be good neighbors to the residents near these facilities. Because the park system was so large, the City was divided into three sections for this RFP to increase the number of potential bidders and provide a practical and cost effective method to award the work to more than one contractor. This would insure not being overly dependent upon one company should they prove ineffective in maintaining the facilities to established standards. The RFP process, he explained, resulted in the recommendation of two contractors: Marina Landscape Incorporated and Merchants Landscape Services and the total cost savings reflected just over $1.1 million. This would result in the layoff of 19 full -time and 14 part-time maintenance workers, he explained. He added that efforts were underway to identify vacant full -time positions and part-time positions that may be available for these employees and both contractors had expressed interest in discussing employment opportunities with their companies for Anaheim's displaced staff. He added that eight maintenance personnel would be retained to monitor work with the contractors for standard compliance and to direct the work of the remaining part-time staff. In order to address the concern that a reduction in city personnel in parks could lead to increased crime and vandalism, staff recommended a portion of the savings, $77,000 from these contracts, be applied to expanded hours for the park rangers program. They would begin patrolling the parks at 10:00 A.M. rather than 1:00 P.M., as they do now. This would be in addition to the eight remaining park maintenance personnel who would also be in the field daily overseeing the contractors. Mr. Lowe stated there was no doubt a definite value of having a City staff presence in the parks as they were professional, highly skilled and highly motivated. Their expertise, he remarked, had been a major contributing factor to this park system, however, with over $13 million in Departmental reductions thus far, this was the only avenue left to balance the budget. The reality, he added, was that given the latest target that the Department had to achieve in order to assist the city in managing this crisis, the alternatives would have negatively impacted the residents much more significantly. He stated this had been a difficult recommendation to make but given the situation, it was the only alternative available to continue to manage the park system in the best interest of the residents served. Referencing comments made by park employees, Council Member Eastman asked if all efforts had been exhausted in achieving savings other than layoffs and City Manager Tom Wood responded that for employees to take reductions in both benefits and wages equal to that which Council Meeting Minutes of July 19, 2011 Page 7 of 12 was being offered by the contractors was not realistic. Responding to an additional question by Council Member Eastman, Mr. Lowe stated that Marina Landscape, one of the successful bidders, was currently providing mowing services in City parks. Larry Pascoe, Parks Manager, provided additional clarification stating the RFP specifications were all inclusive in that the City was asking the contractor to do more than park staff was currently performing. He explained that the condition of turf areas had deteriorated because of large use from youth groups and the inability to keep the turf in a condition that maintained its health and was aesthetically pleasing. He stated the contractors would now be adding fertilizer, pest control, herbicides and broad leaf control which should greatly improve the condition of turf areas. In addition, the remaining park staff would provide quality assurance and inspection. He added the Department could and would aggressively penalize contractors who did not perform well and live up to the Department standards. Mr. Lowe further added that since the department was close to 85 percent personnel in expenses, all the operations reductions over the last 20 years lessened the frequency of fertilization and herbicides making the parks difficult to maintain and keep them green. This arrangement changed that status as more funding would go towards that function. Mr. Pascoe also remarked that over the years staff had also been reduced through attrition and their work not contracted out, so the frequency of trimming shrubs and weeding planters had been reduced adding that contract specifications were built in to address shrub bed maintenance and trimming on a more frequent schedule. Council Member Galloway thanked staff for the difficult decisions that had been made and recognized the dedicated and passionate workforce in Community Services Department. She also recognized that Council had provided direction to City departments to come up with a balanced budget. She was also willing to provide additional time for employees to work out an alternative solution, adding the AMEA had already worked out substantial voluntary concessions compared to other bargaining units in the City and receiving the $1.1 million in savings would never buy the passion these employees gave to their jobs. Council Member Murray remarked there had been six months of budget talks where revenues did not catch up with expenses and staff had to come up with challenging decisions to get a balanced budget. She understood that the City was at the lowest employee head count since1991 and appreciated staff efforts at looking at all options before bringing this recommendation before Council. Mayor Tait remarked that due to high cost of pension benefits, he was fearful the workforce would continue to be reduced, adding it was necessary to find a way to address those pension costs so that layoffs would not continue to be on the table. He then moved to approve Item No. 6. Mayor Pro Tern Sidhu indicated he would second the motion but was personally sorry to have to take this action. Council Member Eastman remarked she had difficulty supporting this issue as the City had placed this burden on the lowest paid employees and she would like to give them time until the next City Council meeting to come up with concrete proposals. Roll Call Vote: Ayes — 3 (Mayor Tait and Council Members Murray and Sidhu.) Noes — 2: Council Members Eastman and Galloway. Motion Carried. 9. Approve an Exclusive Negotiation Agreement with GOALS (Growth Opportunities through Athletics, Learning & Service) to develop a new community garden at the city - AGR -6827 owned property located at 1104 N. Homer Street for the purpose of a community garden for GOALS participants and the public. Council Meeting Minutes of July 19, 2011 Page 8 of 12 10. Approve an Exclusive Negotiation Agreement with GOALS (Growth Opportunities AGR -6828 through Athletics, Learning & Service) to develop a new community sports complex at the city -owned property located at 1100 Swan Street for the purpose of sports and social programs for underprivileged area youth. Community Services Director Terry Lowe provided a brief staff report on Item No's. 9 and 10 announcing that since its formation in 1994, GOALS had served more than 1,500 underprivileged area youth, ages six through nine, through various athletic, academic and community service activities. In 2006, GOALS was approved for use of the Martin Recreation Center for hockey skating and training programs and in 2009 entered into a Lease Agreement with the City to develop and lease a portion of City owned property for a Youth Sports Complex consisting of two championship tennis courts and a multipurpose artificial turf sports field, called Dreamscape 1. This facility served not only youths in the GOALS programs but the young people from the OCARC program. Mr. Lowe reported GOALS requested to add additional recreation facilities, called Dreamscape 2, which would include developing a community garden for youths as well as an art venue featuring art throughout the garden as well as produce to be shared with the nearby apartment complexes. Staff recommended approval of both items which would make use of a piece of property (for which there was no immediate need) for a service organization that would continue to help the children of Anaheim. Mayor Pro Tern Sidhu highlighted this effort which continued to serve underprivileged kids without having a financial impact to City coffers and then moved to approve Item No. 9 and Item No. 10 collectively, seconded by Council Member Eastman. Roll call vote: Ayes — 5: Mayor Tait and Council Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried. 20. Consider appointments /re- appointments to the Sister City Commission whose terms B105 expire June 30, 2011. All scheduled vacancies will be for a term of four years, expiring June 30, 2015 (Continued from Council meeting of July 12, 2011, Item No. 24). Mayor Tait moved to re- appoint all incumbents wishing to seek re- appointment to the Sister City Commission. With no objection, those incumbents were reappointed. Sister City Commission: [Re]Appointment: Linda Newby (Incumbent, Joseph Aihara) [Re]Appointment: Lisa Gin (Incumbent, Lisa Gin) With no objection from Council, Lisa Gin was unanimously reappointed. [Re]Appointment: Shannon Buhrmaster (Incumbent, Carolyn Yellis) [Re]Appointment: Kendal Paine (Incumbent, Kyndall Paine) With no objection from Council, Kyndal Paine was unanimously reappointed. Appointment: Patricia Pina (vacancy of Swarti A. Valbh - Patel) Council Meeting Minutes of July 19, 2011 Page 9 of 12 As the remaining incumbents were not available or interested in serving a second term, Mayor Tait requested nominations to fill the three vacant seats for the Sister City Commission. Council Member Murray nominated Linda Newby; Mayor Pro Tern Sidhu nominated Patricia Pina and Council Member Eastman nominated Shannon Buhrmaster. With no objections from Council, Linda Newby, Patricia Pina and Shannon Buhrmaster were appointed to the Sister City Commission. PUBLIC HEARINGS: 21. This is a public hearing to consider a resolution determining the public interest and necessity for the acquisition of property located at 1602 South Brookhurst Street for the P121 Brookhurst Street Widening project from Ball Road to Katella Avenue. RESOLUTION NO. 2011 -110 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for the acquisition of property located at 1602 South Brookhurst Street for the purposes of the Brookhurst Street Widening from Ball Road to Katella Avenue project (R/W ACQ 2009- 00355). Natalie Meeks, Public Works Department, reported the resolution on tonight's agenda was for the acquisition of right of way necessary for the construction of the Brookhurst Street Widening project from Ball Road to Katella Avenue. The proposed project would improve Brookhurst Street providing three thru -lanes in each direction along with median and pedestrian improvements. She added this section of Brookhurst was the only segment between Interstate 5 and Pacific Coast Highway that had not been widened to six lanes which created a bottleneck for north /south traffic. A short segment of southbound Brookhurst north of Cerritos would remain two lanes to be widened in the future in cooperation with the County of Orange as Phase 2 of this project. She noted that both phases of the project were environmentally cleared through the Initial Study and Mitigated Declaration approved by Council on June 22, 2010. The project, as planned, required the acquisition of 23 single family properties and the acquisition on this agenda was the only property on which staff had not executed a settlement agreement or adopted a resolution of necessity. This property, she explained, had changed hands during the acquisition process so the resolution was delayed to provide time for the new bank owner to assess the offer. A verbal settlement had been reached with the bank; however, the documents had not been executed and staff recommended adoption of the resolution to insure possession of the property and relocation of the existing tenant in time for construction. Mayor Tait indicated testimony from the owner of record would be taken and testimony would be limited to the following issues only: 1) whether the public interests and necessity required the project; 2) whether the project is planned and located in a manner that would be most compatible with the greatest public good and the least private injury; 3) whether the property sought to be acquired was necessary for the project; 4) whether the offer required by Government Code Section 7267.2 was made to the owner or owners of record; and 5) whether the City met all other prerequisites to the exercise of eminent domain in connection with the property. Mayor Tait opened the public hearing for comment and receiving none, closed the hearing. Council Meeting Minutes of July 19, 2011 Page 10 of 12 Mayor Pro Tern Sidhu moved to approve RESOLUTION NO. 2011 -110 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for the acquisition of property located at 1602 South Brookhurst Street for the purposes of the Brookhurst Street Widening from Ball Road to Katella Avenue project (RAN ACQ 2009- 00355), seconded by Council Member Murray. Roll Call Vote: Ayes — 5 (Mayor Tait and Council Members Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried. 22. This is a public hearing to consider an ordinance amending Ordinance No. 5911 granting F130.2 a non - exclusive franchise to Anaheim Transportation Network. ORDINANCE NO. 6219 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Ordinance No. 5911 granting a non - exclusive franchise to Anaheim Transportation Network to provide resort transportation shuttle service within The Anaheim Resort and other areas within the City of Anaheim and stating the terms and conditions upon which said franchise is granted. Public Works Director Natalie Meeks reported this hearing was to consider an amendment to a non - exclusive franchise to the Anaheim Transportation Network (ATN) to provide transportation shuttle services within the Anaheim resort and other areas within the City. In April of 2004, Council granted a non - exclusive franchise to ATN to provide these services and the franchise was then approved for a seven year period, expiring in 2011 with extensions of time allowed in one year increments provided ATN continued to operate in conformance with the franchise. She stated ATN operated the Anaheim Resort Transit or ART bus system, which currently provided for 16 routes in the resort and other areas of the City. On May 5, 2011, ATN submitted an application requesting an amendment to the franchise requirements which would extend the term of the franchise by seven years to 2018 with extensions of time in one year increments, subject to approval by the City Manager, and would also allow ART to provide limited services to destinations outside of the City instead of restricting all routes within City boundaries as currently required. The amendment would also establish design criteria for buses and identify the type and amount of exterior advertising permitted on the buses. The franchise requirements would also be updated to reflect current ART system operation. Ms. Meeks noted that at the May 17, 2011 Council meeting, a resolution was adopted which approved ATN's amended application determining that it was in compliance with the City Charter and all applicable laws and determining that a statutory exemption was the appropriate environmental document for this request and setting the public hearing for this evening. She added the purpose of the public hearing was to hear testimony and consider evidence from interested parties and to consider any objections to the proposed amendment to the non - exclusive franchise to Anaheim Transportation Network. She ended her presentation remarking staff recommended approval of this amendment as it would allow for the continued transportation services to important destinations in the City, helping Anaheim achieve goals of reducing congestion by providing consistent, reliable, and quality transit options for guests, residents, and workers. The requested franchise amendment would also allow for ART service to be expanded to serve the proposed ARTIC project when it opened in 2014 and the proposed Anaheim Rapid Connection Project anticipated to be completed in 2018. Mayor Tait opened the public hearing for testimony. Diana Kotler, Executive Director of ATN, remarked she had the privilege to serve for a board of directors whose mission was the provision of reliability, efficiency, and customer service. This service, she stated, was financially constrained each year, financed primarily through fare recovery and contributions from the participating lodging establishments and other destinations Council Meeting Minutes of July 19, 2011 Page 10 of 12 Mayor Pro Tern Sidhu moved to approve RESOLUTION NO. 2011 -110 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for the acquisition of property located at 1602 South Brookhurst Street for the purposes of the Brookhurst Street Widening from Ball Road to Katella Avenue project (R/W ACQ 2009 - 00355), seconded by Council Member Murray. Roll Call Vote: Ayes — 5 (Mayor Tait and Council Members Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried. 22. This is a public hearing to consider an ordinance amending Ordinance No. 5911 granting F130.2 a non - exclusive franchise to Anaheim Transportation Network. ORDINANCE NO. 6219 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Ordinance No. 5911 granting a non - exclusive franchise to Anaheim Transportation Network to provide resort transportation shuttle service within The Anaheim Resort and other areas within the City of Anaheim and stating the terms and conditions upon which said franchise is granted. Public Works Director Natalie Meeks reported this hearing was to consider an amendment to a non - exclusive franchise to the Anaheim Transportation Network (ATN) to provide transportation shuttle services within the Anaheim resort and other areas within the City. In April of 2004, Council granted a non - exclusive franchise to ATN to provide these services and the franchise was then approved for a seven year period, expiring in 2011 with extensions of time allowed in one year increments provided ATN continued to operate in conformance with the franchise. She stated ATN operated the Anaheim Resort Transit or ART bus system, which currently provided for 16 routes in the resort and other areas of the City. On May 5, 2011, ATN submitted an application requesting an amendment to the franchise requirements which would extend the term of the franchise by seven years to 2018 with extensions of time in one year increments, subject to approval by the City Manager, and would also allow ART to provide limited services to destinations outside of the City instead of restricting all routes within City boundaries as currently required. The amendment would also establish design criteria for buses and identify the type and amount of exterior advertising permitted on the buses. The franchise requirements would also be updated to reflect current ART system operation. Ms. Meeks noted that at the May 17, 2011 Council meeting, a resolution was adopted which approved ATN's amended application determining that it was in compliance with the City Charter and all applicable laws and determining that a statutory exemption was the appropriate environmental document for this request and setting the public hearing for this evening. She added the purpose of the public hearing was to hear testimony and consider evidence from interested parties and to consider any objections to the proposed amendment to the non - exclusive franchise to Anaheim Transportation Network. She ended her presentation remarking staff recommended approval of this amendment as it would allow for the continued transportation services to important destinations in the City, helping Anaheim achieve goals of reducing congestion by providing consistent, reliable, and quality transit options for guests, residents, and workers. The requested franchise amendment would also allow for ART service to be expanded to serve the proposed ARTIC project when it opened in 2014 and the proposed Anaheim Rapid Connection Project anticipated to be completed in 2018. Mayor Tait opened the public hearing for testimony. Diana Kotler, Executive Director of ATN, remarked she had the privilege to serve for a board of directors whose mission was the provision of reliability, efficiency, and customer service. This service, she stated, was financially constrained each year, financed primarily through fare recovery and contributions from the participating lodging establishments and other destinations Council Meeting Minutes of July 19, 2011 Page 11 of 12 in the resort. Throughout the year, ATN served about three million guests that visited Anaheim either for leisure or business and these buses operated on an average of 18 hours per day. Next year, she added, would be ATN's 10 anniversary. The core of the services, she emphasized, was the ability to move people frequently and freely throughout the resort and that was a commitment directed by the board of directors. She stated this organization was started as a partnership between the City and the board of directors and its members continued to build on that partnership. She added that a year ago, ATN entered into a partnership with OCTA for alternative fuel buses and maintenance facilities. This arrangement continued to grow as ATN would rely on their resources and expertise to make transportation more viable for the future. Council Member Eastman had attended the ATN board meetings as a planning commissioner and was impressed with the dedication of this board and its service to the City. Council Member Murray remarked on her relationship and support for this organization and moved to approve Item No. 22, seconded by Mayor Pro Tern Sidhu. Mayor Pro Tern Sidhu requested details on the annual budget. Ms. Kotler remarked the annual budget was $11 million with most of the funding (about 65 percent) coming from fares at $4 /day and unlimited use. Another 25 percent came from lodging establishments and destinations services with five percent from advertising. She added ATN did receive federal funding, and had formed a partnership with OCTA to receive National Transit Data Based Funding which went entirely to capital procurement, with ATN putting nine new buses on the road because of federal dollars. Advertising was challenging, she added, but ATN was able to receive permission from the city for advertising on the buses because of the financial challenges they had faced. Advertising restrictions, she noted, could only complement the Resort which meant most of the advertising reflected the destinations that were served. Council Member Galloway was also impressed by the operation of this private entity, its service to the City, and its budget with a very small percentage coming from government. Roll Call Vote: Ayes — 5 (Mayor Tait and Council Members Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried. Report on Closed Session Action: None Council Communications: Council Member Murray spoke of attending the funeral of Lance Cpl. Norberto Mendez and of the tragic death this Sunday of Anaheim Police Officer Brian Hayes due to a fatal plane crash in Arizona, and expressed her condolences to all. She announced the dedication of Founders' Park on July 23` and YMCA's 100 Year Anniversary Golf Tournament to be held on July 25 th . She also spoke of the success of the grand opening of the Anaheim Brewery. Council Member Galloway spoke of her attendance at the 'Fair to Remember' event to benefit children of foster care held on July 14 and recognized city employee, Bryn Morley, City Attorney's Office. Mayor Pro Tern Sidhu encouraged residents to visit the 'September 11: Service and Remembrance' webpage in a special section on the City's website, www.anaheim.net which included information for the Military Banner ceremony on September 8th, a volunteer day on September 10th, and a remembrance service to take place at Pearson Park Amphitheatre on September 11th. He announced the Regulatory Reform Task Force relief hotline (714) 765- 4900 had been launched, asking for ideas from the public on how Anaheim could eliminate local regulations which would attract new businesses to the City. The goal, he remarked, was to attract new jobs to Anaheim, making it business friendly to all entrepreneurs. He requested this Council Meeting Minutes of July 19, 2011 Page 12 of 12 meeting adjourn in memory of Anaheim Police Officer Brian Hayes and Simi Valley Police Officer Nicole Anderson, killed in a plane crash this Sunday. Council Member Eastman spoke of her attendance the foster children event at the `Fair to Remember' remarking it was a tremendous event with free food to all. She also attended the last class of CERT volunteers and participated in their disaster exercise and enjoyed the tapping of the keg ceremony at the grand opening of the Anaheim Brewery as well. Mayor Tait announced the Anaheim International Dance Festival Gala to be held on August 13 th Adjournment: At 8:11 P.M., Mayor Tait adjourned the July 19, 2011 Council meeting in memory of Anaheim Police Officer Brian Hayes and Simi Valley Police Officer Nicole Anderson. R pe ully submitted, Linda N. Andal, CMC City Clerk