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1993/06/15City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 2:00 P.M. The City Council of the City of Anaheim met in special session. PRESENT: ABSENT: PRESENT: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly COUNCIL MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl DIRECTOR OF PUBLIC WORKS/CITY ENGINEER: Gary Johnson PLANNING DIRECTOR: Joel Fick DIRECTOR OF MAINTENANCE: John Roche EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich STADIUM GENERAL MANAGER: Greg Smith POLICE CHIEF: Joseph Molloy PARKS, RECREATION AND COMMUNITY SERVICES DEPARTMENT: Chris Jarvi FINANCE DIRECTOR: George Ferrone CITY TREASURER: Charlene Jung HUMAN RESOURCES DIRECTOR: Dave Morgan FINANCE/ADMINISTRATION MANAGER: Bill Sweeney A complete copy of the agenda for the meeting of the Anaheim City Council was posted at 12:16 p.m. on June 11, 1993 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the special meeting of June 15, 1993 to order at 2:06 p.m. 106: PUBLIC HEARING - BUDGET: To consider the proposed 1993/94 Budget Plan. The Budget was continued from the meeting of June 8, 1993 to this date (see minutes of June 8, 1993.) City Manager, James Ruth. This is a continued public hearing to review and adopt the 1993-94 Budget pursuant to the City Charter. This hearing may be continued to subsequent dates prior to July 1, 1993 and still meet Charter requirements. Before proceeding, he read a copy of memorandum prepared today after 12:45 relative to the State Budget which gave the latest information as to possible impacts on California cities. After doing so, he stated that staff had high hopes that under one of the scenarios, the City's property tax transfer would only be about 1.3 million dollars instead of 2.9 million which is now being proposed in Sacramento. That situation could change. They are prepared to move forward with the presentations today and the budget submitted to the Council has the full 2.9 million dollars reduced from the State. If the State comes back and takes less, staff would come back at a later date with an adjusted budget for Council consideration. City Manager Ruth then introduced each Department's budget presentation giving its location in the budget document, budget totals, capital improvements where applicable and adjustments involved in certain department budgets. The following Department heads then reported on their department's proposed budget, some explaining their plans and goals for the coming year and accomplishments in the past fiscal year. Any changes from the plan presented were also explained at this time as well as in some cases reporting on proposed cuts in programs and/or services due to budget constraints as a result of the current recession and the possible impact of State budget cuts. At the end of many of the presentations, questions were posed by Council Members regarding specific items which were answered by either the Department head and/or appropriate staff: 397 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 2=00 P.M. Public Works Director/City Engineer, Gary Johnson - Public Works- Engineering - Page 39 (in the annual budget booklet). After concluding his presentation, Mr. Johnson reported that the largest Capital Improvement Project, the Anaheim Arena, has received a temporary Certificate of Occupancy transferring ownership to Ogden Facility Management. He is very proud of all the City staff members who have worked long and hard on the construction phase of the project. Mayor Daly. He requested the following: The cost of the Harbor Boulevard widening and an opportunity to see the design for that project. Planning Director, Joel Fick - Planning, Zoning, Building, Code Enforcement - Pages 55-57. Maintenance Director, John Roche - Fleet Maintenance, Facility Maintenance, Streets and Sanitation - Pages 51-53. Before concluding the presentation, City Manager Ruth noted this is Mr. Roche's last budget presentation since he will be retiring from the City after over 30 years of dedicated service. Executive Director of Community Development, Lisa Stipkovich - Redevelopment and Housing (including Neighborhood Preservation, Community Development Block Grant, Housing Development, Economic Development and JTPA) - Pages 35-37. During her presentation, Mrs. Stipkovich emphasized that if the State Budget further impacts the City's Redevelopment funds, it will be necessary to come back and amend her Department's budget. Later in the meeting, Mayor Daly asked staff to provide the amount of General Fund monies that go into the Community Development Department. General Manager, Anaheim Stadium, Greg Smith - Stadium - Pages 48-49. Police Chief, Joseph Molloy - Police Department - Pages 29-31. Chief Molloy, During his presentation, explained that he was given a discretionary target to meet. He gave a reduced plan to the City Manager's Office which amounts to approximately 3.2 million dollars. He stated rather than going through the entire list of cuts, he would brief some of the highlights and later in the presentation talk about how they are trying to lessen the impact of the proposed cuts which will greatly impact a budget that is labor intensive. At the Conclusion of his presentation, Council Member Hunter stated his opposition to the proposed 2.3 million dollar cut in the Police Department budget noting that the Council has over and over again stated its number one priority was crime, gangs and drugs. City Attorney White. It would be in order at this time to adjourn the special meeting and subsequently call to order the regular meeting of June 15, 1993. 398 City Hallr Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 2:00 P.M. ADJOURNMENT: Council Member Daly moved to adjourn the special meeting of June 15, 1993, Council Member Simpson seconded the motion. MOTION CARRIED. (3:37 p.m.) LEONORA N. $OHL, CITY CLERK 399 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5=00 P.M. The City Council of the City of Anaheim met in regular session. PRESENT= ABSENT= PRESENT: COUNCIL MEMBERS= Feldhaus, Hunter, Pickler, Simpson, Daly COUNCIL MEMBERS: None CITY MANAGER= James Ruth CITY ATTORNEY: Jack White CITY CLERK: Leonora N. Sohl ASSISTANT CITY CLERKs Ann M. Sauvageau DIRECTOR OF PUBLIC WORKS/CITY ENGINEER= Gary Johnson PLANNING DIRECTOR= Joel Fick DIRECTOR OF MAINTENANCE: John Roche EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich STADIUM GENERAL MANAGER: Greg Smith POLICE CHIEF= Joseph Molloy PARKS, RECREATION AND COMMUNITY SERVICES DEPARTMENT: Chris Jarvi FINANCE DIRECTOR= George Ferrone CITY TREASURER: Charlene Jung HUMAN RESOURCES DIRECTOR: Dave Morgan FINANCE/ADMINISTRATION MANAGER= Bill Sweeney COMMUNITY SERVICES SUPERINTENDENT= Steve Swaim ZONING ADMINISTRATOR= Annika Santalahti A complete copy of the agenda for the regular meeting of the Anaheim City Council was posted at 12:16 p.m. on June 11, 1993 at the Civic Center kiosk, containing all items as shown herein. Mayor Daly called the regular meeting of June 15, 1993 to order at 3:37 p.m. City Manager Ruth. This is the continuation of the Departmental Budget Presentations which were commenced with the Special Meeting of June 15, 1993 held at 2:00 p.m. He then introduced each Department's budget presentation giving its location in the budget document, budget totals, capital improvements where applicable and adjustments that were involved in certain department budgets. The following Department heads then reported on their department's proposed budget, some explaining their plans and goals for the coming year and accomplishments in the past fiscal year. Any changes from the plan presented were also explained at this time as well as in some cases reporting on proposed cuts in programs and/or services due to budget constraints as a result of the current recession and the possible impact of State budget cuts. At the end of many of the presentations, questions were posed by Council Members regarding specific items which were answered by either the Department head and/or appropriate staff: Director of Parks, Recreation and Community Servlces/Golf, Chris Jarvl - Parks-Recreation-Community Services - Pages 40-43. Golf - Pages 46-47. Mr. Jarvi emphasized that the Department is experiencing significant changes and is one that is in transition. He explained the significant issues with which the Department is faced. At the conclusion of his presentation, Council Member Hunter asked relative to the Golf issue about privatizing, if they are spending any General Fund or taxpayer's monies to do studies regarding the matter. 400 City Hallr Anaheim, California - ¢O~¢IL MINUTES - JUNE 15, 1993 - 5:00 P.M. City Manager Ruth. Answered yes. They are doing a feasibility study with Economic Research Associates (ERA) for a maximum of $15,000 to look at all the options for the Council to consider. It will be completed within a couple of weeks and brought to the City Council for their review to assist in their decision making. Council Member Hunter. He would like to see the matter on the Agenda as soon as possible so that the Council can take a policy vote. Next year, $1,030,000 is coming back to the City from the Golf Course Operation. He reiterated, he wants to see the matter on the Agenda so they do not spend more time on the issue. Mayor Daly. He believes that while the golf courses are profitable, they could be more profitable and he is also looking forward to an early decision on the issue. Council Member Hunter. What concerns him, he did not tell the City Manager to do anything and he does not believe there was a Council majority directing the City Manager to go out and spend $15,000 on a study. Mayor Daly. There was no direction given. He believes the City Manager took it upon himself to do so. City Manager Ruth. The conflict staff had, some members of the Council wanted to go out at least on a Request for Proposal (RFP) to solicit private input and receive proposals on contracting the Golf Courses out. Other members had no desire to do that. Staff was in a dilemma and wanted to look at all the options. If they are going to make that decision to go out, they wanted to be sure Council had all the information available to them. ERA has had a lot of experience in Golf Course Management and studies. They felt it was important that the Council had all the information necessary available to them. Mayor Daly. He clarified that he has not given the City Manager direction to do a study. In fact, he is saying he disagrees with the idea of doing a study. He has said to the City Manager, in his opinion, they can make more money off of the golf courses at less cost to their overhead. The Golf Operation as good as it is can be improved. He does not feel there is any question where he stands and he did discuss the issue at Council a few weeks ago. Council Member Pickler. He would like to see a study and what the City Manager is doing is something the Council needs. He wants all the facts and figures necessary to make a decision. He believes the majority said, lets do it; Council Member Hunter disagreed. Council Member Hunter. He wants the issue back because not only in the area of Parks and Recreation but there are a lot of good City employees who are very concerned about their jobs right now. It is necessary to take the issue head on and get it over with - not only this but other issues in Parks and Recreation. It is the department that is hardest hit and a lot of people are apprehensive and concerned especially those who w6rk at the golf courses. City Manager Ruth. To go out first with an RFP is a very extensive job and a tremendous amount of work is involved. He was undecided about Council direction so before launching that kind of effort, he decided the best thing to do was to see if it was practical or feasible to go out to bid. That is a policy decision the Council has to make. The purpose was to give the Council a basis to make an informed decision. They have talked to ERA and they are 401 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. under tremendous pressure to complete the study. They indicated they would have the study in late June which is about another week or so. If the Council does not want to consider the feasibility aspects and develop their own policy, they can do that as well. Council Member Feldhaus. They have an investment in the feasibility study at this point. Council Member Simpson. Since money has been spent, the Council should at least look at the results of the study. The issue is, he has seen a number of things come through saying this information is provided at the request of (a particular Council Member) the Council should work as a majority. Anything that creates an expenditure of funds, if there is interest of a majority of the Council to look at that, they should. If not they should not do it. Council Member Hunter. He agrees the issue is that no individual Council Member should have the authority to tell staff to do something that is going to cost taxpayer's money without the majority being included. There should be a majority decision especially if it is costing taxpayer's funds. Otherwise, he feels it is a violation of the Charter. Finance Director, George Ferrone - Finance Department - Page 68 City Treasurer, Charlene Jung - City Treasurer's Office - Page 66 City Manager Ruth. He announced this concludes Departmental presentations on the budget. Mayor Daly. One thing that would be helpful either in a separate document or contained in the budget summary is the net cost to the General Fund of the various departments. Mayor Daly. This is a public hearing on the budget which was opened last week. He asked again to hear from any member of the public who wished to give input relative to the 1993-94 Budget. Mr. Doug Gibson, 931 S. Peregrine. In the four years he has watched the gang issues, in six years the drug issues, Anaheim has addressed the problems in those areas. He also noted other programs that had been instituted such as graffiti removal, project SAY, outreach organizations, Kids-In-Action and also the D.A.R.E program. He suggested as the Council deliberates on the final figures they do not step back from the 100% D.A.R.E program at the elementary school level at present and think about expanding it to the Junior High School and High School level. There were no further persons who wished to speak. City Attorney White. He explained there will be an opportunity for additional public comments at the 5:00 p.m. portion of the meeting. RECESS - CLOSED SESSION: City Attorney Jack White requested a Closed Session to consider the following items: a. To confer with its Attorney regarding pending litigation pursuant to Government Code Section 54956.9(a) to wit: Barajas vs. City of Anaheim, Orange County Superior Court Case 69-70-09 402 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. b. To meet with and give directions to its authorized representative regarding labor relations matters - Government Code Section 54957.6. c. To consider and take possible action upon personnel matters pursuant to Government Code Section 54957. d. To confer with ire attorney regarding potential litigation pursuant to Government Code Section 54956.9(b)(1). e. To consider and take possible action upon such other matters as are orally announced by the City Attorney, City Manager or City Council prior to such recess unless the motion to recess indicates any of the matters will not be considered in closed session. MOTION: Council Member Simpson moved to recess into Closed Session. Council Member Daly seconded the motion. MOTION CARRIED. (4:15 p.m.) AFTER RECESS: The Mayor called the meeting to order, all Council Members being present, and welcomed those in attendance to the Council meeting. (5:16 p.m.) INVOCATION: Reverend John P. Lenihan, St. Boniface Church, gave the invocation. FLAG SALUTE: Council Member Frank Feldhaus led the assembly in the Pledge of Allegiance to the Flag. 119: PROCLAMATION: The following proclamation was issued by Mayor Daly and authorized by the City Council: "Hire A Youth Week" in Anaheim, June 21-27, 1993 Mr. Mel Miller and Marge Pritchard accepted the proclamation. 119: The following recognition was authorized by the City Council this date to be mailed or presented at another time: "Amateur Radio Week" in Anaheim, June 15, 1993 FINANCIAL DEMANDS AGAINST THE CITY in the amount of $6,865,837.11 for the period ending June 11, 1993, in accordance with the 1992-93 Budget, were approved. Mayor Daly recessed the City Council meeting until after the Redevelopment Agency and Housing Authority meetings. (5:25 p.m.) Mayor Daly reconvened the City Council meeting. (5:38 p.m.) ITEMS OF PUBLIC INTEREST: Richard Anthony, 1205 S. Walnut, Anaheim. He addressed the issue of City services specifically library services, Fire Department and Police Department which he believes are being compromised, diminished and cut. The City needs more police services and not less. It is just beginning to face real serious choices especially if the Council votes for the Disney expansion which he feels will make today's problems look like child's play. It is time for a permanent entertainment/admission's tax and it is needed now. 403 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5~00 P.M. Betty Ronconi, 1241 S. Walnut, (Anaheim HOME). She is voicing her impression of the City Council hearing on the Disneyland Wescor Project. (See minutes of June 9, 1993.) She feels many of the supporters were uninformed, stating rumors as fact and had no idea of the positions of those who opposed the project as now written. After elaborating further, she stated that they are supportive of the Disneyland project but are opposed to those portions of the project which, no matter what is claimed, now stand inadequately mitigated relative to impacts to local areas - excessive noise, air quality, traffic and financial feasibility for the City. If the project is approved as written, it will cause serious negative impacts on the homes surrounding Disneyland. Shirley McCracken, 6553 Calle De Notre, Anaheim. She does not want to see the Fire Department cut. Also one year ago, the Council supported the Gang and Drug Task Force report requiring a great deal of funding that would have to go on over a period of years. On the other hand, places for youngsters to be educated and entertained, the City's parks and libraries, are the things that are going to be hurt by any cuts in funding. She is a beneficiary of Proposition 13 since her property tax is much less than when she bought her home as well as many others. Out of that tax only about 10 or 12% comes to the City to provide necessary services. At this point, with the financial situation as it is and the State of California continuing to take more and more of the property tax intended for local government, it is only reasonable that the Council examine carefully the need to continue the Utility Users' Tax (UUT) not indefinitely but for another year to see what the economic situation will be. The $36 a year she pays for the Utility tax is worth it if she can see a police officer in her area, the Fire Department maintained and the children in the community have a place to play, study and learn. She urged the Council to seriously consider the need to have some kind of funds to continue the lifestyle all Anaheim citizens appreciate. Jeff Kirsch, 2661 W. Palais, Anaheim. He spoke to the City's two main development projects, one being the Arena referring to a recent newspaper article giving a profile of the Ogden Corporation (the management company), not only their expertise in Arena management but also trash to energy-plants. As reported in the hearings on the Disneyland/Wescot EIR, the Brea land ~ill is due to close in about 11 years. He urged that the City talk to Ogden regarding their expertise in trash management as well to head off future problems relating to trash and the future land fill closure. Mr. Kirsch then addressed issues that had been broached at the June 9, 1993 public hearing by the Council on the Disneyland/Wescot EIR. Most of the points he wanted to make concerned financial feasibility of the project in terms of the City's current and near future finances. In his presentation, he submitted a 30-page information packet which he hopes the Council had an opportunity to review. Two Council Members indicated they saw the project as being passed without problems. He hopes that means they will use the 404 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5=00 P.M. development agreement to address those problems. (Mayor Daly pointed out that he was quoted in error.) Debra Adams, 2449 W. Ball Road, Anaheim. She was present at the Disneyland hearing. Many of the proponents of the plan are well versed on what the opponents have to say. She sympathizes with Anaheim HOME members and small business owners. However, she is also looking at the proposed budget cuts. She is a member of AIM (Anaheim Involved Managers) who keep coming up with plans to improve Anaheim but there are no funds. It is important for the City to ratify the Disney expansion in order to move forward with the programs the City needs. It is also important to take the one-time monies available and invest in the City's future. She might also support an admission's tax but to single out Disney and penalize them is not fair. It should be a tax on all major attractions. She stands in firm support of the expansion because the City desperately needs it. Amin David, 1585 West Broadway, Anaheim. He is speaking on the street vendor issue. He notes on the agenda the Council has had an opportunity to discuss the matter in Closed Session. He is asking that the Council let them know what was discussed if possible. He urged the Council to build from what has happened. (The recent court ruling allowing street vendors to continue vending.) He asked that the City Council bring together a committee to work on a re-drawing of the City's current ordinance that will take care of the complaints of those who brought the matter forward. The Latino food vendors have always been ready and willing to work to ameliorate all those concerns in a constructive and responsible manner. No useful purpose will be served in appealing the recent ruling to the California Supreme Court. It is necessary to take a close look at the situation. An alternative will be very clear by working on the issues. He appealed to Mayor Daly to act as a Mayor for all citizens. He urged that they now build and construct something that is fair and reasonable to all the citizens and not just those who have petitioned the Council causing great expense to the citizens and a few of the Latino vendors. PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on City Council Agenda items. MOTION: Council Member Pickler moved to waive reading in full of all ord£nance~ and r~olution~ to b~ acted upon ~or th~ Counell me~tln~ o~ June 15, 1993. Council Member Simpson seconded the motion. MOTION CARRIED. CITY MANAGER/DEPARTMENTAL CONSENT CALENDAR: On motion by Council Member Pickler, seconded by Council Member Hunter, the following items were approved in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar; Council Member Pickler offered Resolution Nos. 93R-99 through 93R-103, both inclusive, for adoption and offered Ordinance Nos. 5373 through 5376 for introduction. Refer to Resolution Book. Al. 101: Declaring that completion of the Anaheim Arena has occurred as of June 15, 1993, and making the following findings: 405 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. a. the facility and the off-site and project-related improvements are substantially complete in accordance with Exhibit L (and Section 1.07 of the Management Agreement); b. the facility and off-site and project-related improvements are safe and ready for commercial operations in the ordinary course of business, which readiness shall include the issuance of a temporary or final certificate of occupancy; c. all defects have been corrected; d. the punchlist items have been completed or, if not completed, correction of the punchlist items reasonably can be completed within the time required by Section 1.04(c) of the Management Agreement. Council Member Pickler. With this action, he wants to know if there is any risk to the City. Is the City freeing the contractors from any of their normal obligations. ~ity Manager Ruth. He answered no. It is just a substantial completion. they have not accepted the building as yet. This action is so they can occupy and use the facility. City Attorney White. The reason for doing this, the City's contract with Ogden provides they do not have an obligation to operate the Arena until such time as the City Council makes the four findings. In order to put them into possession of the arena and commence the term of the management agreement, it is necessary to make these findings. His understanding is the Public Works Director has reviewed the facility and is comfortable with the findings. It does not waive any warranties that exist. If subsequently there are defects not now apparent but later discovered, the warranties remain in effect. The punchlist items are still in effect - Item Al, a. - d. as listed which need to be completed. He also explained that relative to a time frame, normally they give a reasonable period of time to cure those. It then becomes a question of whether or not they have complied with the terms of the contract. Gary Johnson, Public Works Director and City Engineer. The management agreement required Ogden, Tokai Bank and the City to have a mandatory walk through of the building. This took place approximately two weeks ago. Ail parties determined there were no defects and all requirements have been :omplied with. Any defects would be something the bank or Ogden would have found. If so, the building could not be operated. That is what is meant by defects. The management agreement requires 60 to 90 days to remedy and cure punchlist items. The project is in excellent shape. The punchlist items are minor. Th~ construction con~ac~ will allow additional time. Un~il ~hey are satisfied, they will not bring back a recommendation to accept the contract. A temporary certificate of occupancy was issued dated yesterday. The fire marshall, health department and chief building inspector have indicated all life safety systems are in place and the building can be safely occupied and operated. It has no bearing on the construction contract. A2. 150: Awarding the contract to the lowest responsible bidder, Laubach Electric, in the amount of $104,702.17 for Central City Beautification II, and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waive any irregularities in the bids of both the low and second low bidders. 406 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. A3. 175: Awarding the contract to the lowest responsible bidder, Vido Samarzich, Inc., in the amount of $385,924.00 for Construction of Walnut Street and Crone Avenue 12" Water Main, and in the event the low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waive any irregularities in the bids of both the low and second low bidders. A4. 165: Awarding the contract to the lowest responsible bidder, D.J. Construction, in the amount of $16,261.50 for Sidewalk Program 1992-93 Gaymont Street n/o Rome Avenue to Ball Road, and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waive any irregularities in the bids of both the low and second low bidders. A5. 169: Awarding the contract to the lowest responsible bidder, Ail American Asphalt, in the amount of $292,283.63 for Dale Avenue Street Improvement, Broadway to South City Limit, and in the event said low bidder fails to comply with the terms of the award, awarding the contract to the second low bidder, as well as waive any irregularities in the bids of both the low and second low bidders. A6. 1142 Receive and file Resolution No. 93-48 from the City of Lake Forest, California supporting Orange County Summit for Children. A7. 123: Approving the following Agreements with Ogden Facility Management Corporation of Anaheim, subject to non-substantive changes as approved by the City Attorney: a. License agreement for City-owned property b. License agreement for City-owned property-KTG property. c. Sublicense agreement for the Transfer Station Site d. Sublicense agreement for the Sheriff Site e. Sublicense agreement for the Main Parking Lot f. Sublicense agreement for the Maintenance Site A8. 123: Approving an Agreement with City of Garden Grove, for design, construction and inspection of improvements to Harbor Boulevard, from Orangewood Avenue to Chapman Avenue, in an amount of $6,000.00. A9. 123: Approving an Agreement with the Magnolia City School District, to provide Park Ranger patrols of school facilities from July 2, 1993 through June 26, 1994. Al0. 160: Authorizing the Purchasing Agent to issue a change order to VMCI, Inc. for modifications to one (1) 40-foot bookmobile trailer, in an additional amount of $7,860.00 (Dlus tax) Ail. 160: Waiving Council Policy No. 306, and authorizing the Purchasing Agent to issue a purchase order to GTE Customer Networks, in the amount of $52,081.36 (plus applicable taxes), for materials and installation of a telephone switch addition and tie-cable for Anaheim Stadium. Al2. 160: Accepting a bid of Cablec Utility Cable Company, in an amount not to exceed $426,375.00 (plus applicable tax) for 35,100 feet of 1000 KCMIL Tree Retardant 15KV cable, in accordance with Bid #5150. 407 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5=00 P.M. Al3. 160= Accepting the bid of Halprin Supply Company, in an amount not to exceed $99,000.00 (plus applicable tax), for structural firefighting safety clothing, in accordance with Bid $5147. Al4. 160; Accepting the bid of CalTec, in an amount not to exceed $36,500.00 (including tax), for the removal of one (1) underground fuel tank, the installation of one (1) above-ground fuel tank, and the possible removal of contaminated soil, in accordance with Bid. Al5. 123: Approving the terms and conditions and executing an agreement employing Jones Hall Hill & White as bond counsel regarding the sale of Certificates of Participation for the purpose of financing certain improvements to the Anaheim Arena, in an amount not-to-exceed $46,750, plus out-of-pocket expenses not-to-exceed $10,000. Approving the terms and conditions and executing an agreement employing Rauscher Pierce Refsnes, Inc. as financial advisor regarding the sale of Certificates of Participation for the purpose of financing certain improvements to the Anaheim Arena, in an amount not-to-exceed $15,000, plus out-of-pocket expenses not-to-exceed $2,500. Approving the terms and conditions and executing an agreement employing Merrill Lynch as Underwriter regarding the sale of Certificates of Participation for the purpose of financing certain improvements to the Anaheim Arena, in an amount not-to-exceed $10.00 per $1,000, including all underwriter expenses. Council Men, er Pickler. He asked if the amounts being paid will be coming out of bond financing and also questioned if the three years were eliminated or added on to the end of the term. City Manager Ruth. He confirmed that the amounts are being paid out of the bond financing and that the City's obligation for the first three years is forgiven. Ogden, if they have to pay additional money out as additional debt service, will be able to recover those costs from future revenues from the Arena but the City has no financial obligations. George Ferrone, Finance Director. He confirmed for Council Member Feldhaus that there is no financial exposure to the City. The language in the agreement as noted by Council Member Feldhaus is standard practice. There is no out-of-pocket expense. Mayor Daly. The City is obtaining the original financing for the Arena and are agreeing to obtain additional financing, but the debt on the financing will be paid back by the Ogden Corporation. That, in concept, is the arrangement; Mr. Ferrone confirmed that is correct. City Manager Ruth. The City has no financial exposure for the additional 18.3 million d011ars; Mayor Daly. With the exceDti0n of the already agreed to ogerating subsidy which has shrunk as a result of the hockey franchise and as a result of this debt refinancing. Council Member Hunter. Four years from now relative to the 1.5 million, a lot of that was anticipated on the events at the Arena, i.e., about 57 events through the end of the year excluding hockey which is 45 games. He spoke to Brad Maynes of Ogden who reported that there are 175 events this year between June and the end of the year booked at the Arena. That is about how many days 408 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. are left this year. They will find there will be no cost to the City because of the amount of the events booked at the Arena excluding basketball. Council Member Pickler stated he disagrees; Mayor Daly. As best as he could understand, the size of the debt is increasing. They are refinancing the debt just like refinancing a house. It is important to add to any discussion on the Arena debt that the debt will be paid off by the private sector operators of the building. city Manager Ruth. With the additional 18.3 million, the City has the same kind of protection as with the original financing. The revenue picture is going to be much brighter as a result of the hockey franchise and all the other events scheduled. Basically, the City is very well protected and all the debt service is being paid for by the private sector. Al6. 156: RESOLUTION NO. 93R-99: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE FILING OF A PROPOSAL WITH THE STATE OF CALIFORNIA OFFICE OF CRIMINAL JUSTICE PLANNING FOR FUNDING AN ANTI-DRUG NEIGHBORHOOD REVITALIZATION PROGRAMs "OPERATION REVITALIZATION". Al7. 123: Approving an assignment and assumption agreement with Anaheim Family YMCA and the Orange County Conservation Corps., and 152: Authorizing Steven E. Swaim, Community Services Superintendent, Gang/Drug Coordination, to incur costs for the Orange County Conservation Corps., to a maximum of $50,000 in anticipation of eventual reimbursement pursuant to the Cai-Serve grant agreement with the State of California. Steve Swaim, Gang and Drug Coordinator. He answered questions posed by Council Member Feldhaus. The City has a contract with the State that ensures the City will get the money. They will have to comply with all reports that need to be turned in. They are advancing the new organization some start-up dollars. They see no problem with getting the full amount of grant funds from the State of $93,000; City Manager Ruth. They have a signed contract with the State. Al8. 150: Approving a waiver of park user fees for the use of Pearson Park shelter and softball field by the Somebody Group for "Somebody Day in the Park," Saturday, June 19, 1993. Al9. 123: Approving an Agreement with the Anaheim City School District to provide Park Ranger patrols of school facilities from July 3, 1993 through June 26, 1994. A20. 123: Approving an Agreement with the Centralia School District to provide Park Ranger patrols for Danbrook and Centralia Elementary Schools from July 2, 1993 through June 26, 1994. A21. 123: Approving a renewal of the contractual Agreement with E. Del Smith & Company, Inc., extending Washington, D.C. representation services from July l, 1993 through June 30, 1994. A22. 139: RESOLUTION NO. 93R-100: A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AND THE ANAHEIM REDEVELOPMENT AGENCY PROTESTING THE STATE LEGISLATURE'S SCHEME SET FORTH IN SENATE BILLS 617 AND 844 WHICH REDIRECTS LOCAL REDEVELOPMENT PROPERTY TAX INCREMENT TO FUND CONSTITUTIONALLY MANDATED OBLIGATIONS OF THE STATE AND DIRECTING THAT CERTAIN ACTIONS BE TAKEN WITH REGARD THERETO. 409 City Hall~ Anaheimr California - COUNCIL MIN~3TES - JUNE 15, 1993 - 5:00 P.M. A23. 132: ORDINANCE NO. 5373 - (INTRODUCTION): AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING CHAPTER 10.10 OF TITLE 10 OF THE ANAHEIM MUNICIPAL CODE AS IT RELATES TO THE HANDLING AND STORAGE OF SOLID WASTE AND RECYCLABLE MATERIALS. A24. 163: Authorizing the donation of surplus office furniture to the Anaheim City School District. A25. 113: RESOLUTION NO. 93R-101: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN TWO YEARS OLD (City Treasurer's Office). A26. 123: Approving an Agreement with Orange County Health Services Agency for animal control services for the period of July 1, 1993 through June 30, 1994, in an amount estimated by the County of Orange to be $536,939.00 for fiscal year 1993/94, and authorize the Mayor and City Clerk to execute said agreement. 108: ORDINANCE NO. 5374 - (INTRODUCTION): AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING TITLE 8, SECTION 8.08, OF THE ANAHEIM MUNICIPAL CODE, RELATING TO ANIMAL CONTROL, WELFARE AND LICENSE REQUIREMENTS IN ORDER TO RETURN ANIMAL LICENSING TO THE COUNTY OF ORANGE. A27. 159: Approving the "Challenging A Parking Citation Administrative Hearing" program and authorize the City Manager to amend the program as necessary. A28. 123: Authorizing the Chief of Police to notify Lyle Parks, Jr. dba Gold Key Business Center of termination of a lease agreement with the City, for the police satellite station. A29. 114: Approving minutes of the City Council meetings held May 4, (Special Meeting), and the regular meetings held May 4, and May 11, 1993. A30. 123: To consider assignment of interest in a Reimbursement Agreement with Woodcrest Development, Inc., to Woodcrest Inc., for costs associated with the design and construction of a Terminal Storage Facility (Weir Canyon Reservoir). (Continued from the meeting of June 8, 1993, Item Al5) This item was removed from the agenda at the request of the City Attorney. ~.31. 137: Recommending the approval of amendments to certain Resolutions and 3rdinances related to Electric and Water debt structure. RESOLUTION NO. 93R-102: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING CERTAIN PROVISIONS OF RESOLUTION NO. 89R-295 RELATED TO ELECTRIC REVENUE ANTICIPATION NOTES. ORDINANCE NO. 5375 - (INTRODUCTION}: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING CERTAIN PROVISION OF ORDINANCE NO. 5032 RELATED TO ELECTRIC REVENUE ANTICIPATION NOTES. RESOLUTION NO. 93R-103: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING AND RESTATING RESOLUTION NO. 83R-169 RELATING TO THE ISSUANCE OF WATER REVENUE ANTICIPATION NOTES PURSUANT TO ORDINANCE NO. 4415. ORDINANCE NO. 5376 - (INTRODUCTION): AN ORDINANCE OF THE CITY OF ANAHEIM PROVIDING FOR THE PROCEDURES FOR THE ISSUANCE, SALE AND SECURING OF WATER 410 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. REVENUE ANTICIPATION NOTES AND PROVIDING THE TERMS AND CONDITIONS OF SAID NOTES. A32. 123: Approving the assignment of interest in two reimbursement agreements dated March 17, 1981, with The Baldwin Company, to reimburse them for costs of Special Facilities (Pumps and Reservoirs). A33. 123: Approving three Renewal of License Agreements with Southern California Edison Company (SCE), authorizing the annual payment total of $300 for lines built on SCE right-of-way, and authorizing the Public Utilities General Manager to execute the agreements. Roll Call Vote on Resolution Nos. 93R-99 throuqh 93R-103, both inclusive, for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution Nos. 93R-99 through 93R-103, both inclusive, duly passed and adopted. END OF CONSENT CALENDAR. MOTIONS CARRIED. A34. 171: PUBLIC HEARING - UTILITY USERS' TAX: To consider an ordinance of the City of Anaheim amending Chapter 2.13 of the Anaheim Municipal Code and/or repealing Section 4 of Ordinance No. 5249 of the City of Anaheim, for the purpose of extending and continuing in effect the current two percent (2%) utility users' tax (hereinafter the "tax") as specified in said Chapter 2.13 which tax will otherwise expire and be repealed effective at midnight, September 30, 1993. ORDINANCE NO. 5371 - ADOPTION: Amending Chapter 2.13 of Title 2 of the Anaheim Municipal Code, and repealing Section 4 of Ordinance No. 5249, relating to the Utility Users' Tax. The ordinance was introduced at the meeting of June 8, 1993. Mayor Daly. At this time, he invited members of the public who wished to speak to give their input. The Utility Users' Tax (UUT) is scheduled to sunset on September 30, 1993. The proposed ordinance would extend the 2% tax for one year to September, 1994. The following people spoke against retaining the 2% Utility Users' Tax urging that it be allowed to sunset on September 30, 1993 each giving their reasons and/or comments on why it should be repealed and possible ways to make additional budget cuts: Mike Valenti (Member of ACT), 511 N. Clementine Street, Anaheim. Dan VanDorpe, 863 Jasper Circle, Anaheim. Phil Knypstra, 2520 Gelid, Anaheim. Amin David, 1585 W. Broadway, Anaheim. Dr. William Kott, 522 Dryer, Anaheim. Ben Bay, 2148 W. Grayson, Anaheim. Jeff Kirsch, 2661 W. Palais, Anaheim. 411 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5=00 P.M. The following spoke for retaining the 2% Utility Users' Tax urging that it be retained at the least for an additional year each giving their reasons why it ie necessary to retain the tax or expressing their concerns relative to the negative impacts to City services should it not be retained. Miriam Kaywood, Anaheim. Julie Mayer, 1837 W. Orange, Anaheim. Gina Beitler, citizen of Anaheim and employee representative for the AMEA. Ron Bengochea, 1751 S. Nutwood, Anaheim. Ofelia Murphy, 6577 E. Camino Vista, Anaheim. Marilyn Hauk, Camino Correr, Anaheim. Margaret Hunter, 670 W. Broadway, Anaheim. George McClaren, 323 S. Indiana Street, Anaheim. (Mr. Alfred Bega also spoke against off site contracting.) After the extensive public input, Council Members commented on the proposed ordinance expressing their views either in favor or in opposition. Council Member Pickler. The Budget Advisory Commission with each Council Member having appointed two members, although not unanimous, recommended that the Utility Users' Tax be retained. The Council has received a letter from a group that was originally in opposition - the Anaheim Chamber of Commerce asking the City to continue the things they are doing but maintain the 2% Utility Users' Tax. Mrs. McCracken (Chairman of the Budget Advisory Commission) who spoke earlier explained it well. They keep trying to maintain services but the City is losing services. This was evident in the Department Head presentations on the budget today. It is a quality of life issue. They have already cut close to 2 million dollars out of the budget including 43 personnel, 10 to 20% of which were top management. He cannot see taking 8 million dollars more out of the budget and see things continue to deteriorate. The budget figures do come from staff, but staff has worked closely with the Budget Advisory Commission appointed by the Council. Campaign promises are made but the welfare of the City is what has to be uppermost. He has heard more from the business people to eliminate the 2% tax but those calls have stopped and no one from the community has called him on ~he issue. Those that cannot afford the $36 to $50 a year are exempt from the ~ax. It is necessary to maintain the UUT in order to maintain a way of life that is enjoyed by the citizens of Anaheim. Council Member Feldhaus. He feels the budget is out of sync. It already assumes the UUT is not going to sunset. It increases revenues and expenditures but expenditures are in excess of revenues which is a bad business practice. The General Benefit's fund is up 7 million dollars, yet positions have been cut. He agrees with Council Member Hunter who previously said that the monies allowed to the Visitor & Convention Bureau should be a fixed amount and not a percentage. Last week he said that they should use one-time monies for the 6 million dollar budget shortfall. The State budget hit to Anaheim is expected to be 2.9 million. That could possibly be reduced to 1.3 million. He believes that as a City they can find the 6 million dollars for this budget year. His position has not changed. He is going to vote to sunset the Utility Users' Tax. City Manager Ruth. He clarified that it is 6 million dollars for nine months if sunsetted in September, but for the next year it will be 9 million dollars. 412 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. Council Member Simpson. He was the Council Member who made the original motion for the tax and the one who also said that it should be sunsetted based on information available at that time, never realizing the economy would remain in a downturn along with the State hitting cities very hard and continuing to do so. The consequences may be even more onerous than first thought. If he felt that staff had not done things prudently in cutting back and downsizing the organization, he would not support retaining the tax but he feels they have done so. Despite the fact that not many people have been laid off or have walked out the door, the City is down 200 positions. He still supports the tax. He realizes it is more difficult and onerous for businesses than residents but his bills reflect he is only paying about $3 a month for the UUT. He is going to vote to extend the Utility Users' Tax for one more year. Council Member Hunter. He liked many of the things said by Shirley McCracken who is a member of the Budget Advisory Commission. Firefighters passed out brochures last weekend with regard to the manning issue in order to maintain the current four firefighter crews. It is an issue that saves lives. He would like to see a commitment on the Council regarding this issue - does the Council have a policy regarding manning firestations in the City with four person crews, a policy which not only saves lives, but also keeps the City's insurance rates low because of the good rating it receives. If reduced to three persons, insurance rates are going to go up including industrial insurance rates. The cost is $300,000 out of a 135 million dollar General Fund budget. Another issue is one of crime. Anaheim has the finest Police Department in America with highly trained professionals and they are police officers who deserve to be paid what they are being paid; however, in a ranking of the cities in the County, Anaheim Police Officer's salary ranks 22, not even the median. They have not had a raise since 1991. With the Stadium, Convention Center, the Commercial Recreation Area and now the Arena, one can estimate Anaheim's population on any given day or week. These require additional police services and those services currently are strained with 1.2 police per 1,000 population which is below any standard in America. It is necessary to face the issue of when they are going to hire more police officers, an issue he has brought up for the seven years since he has been on the Council. The level of services as Mrs. Kaywood and others pointed out is going down evidenced by the condition of the City's streets and parks. He feels they need to make commitments that the monies from the Utility Users' Tax are going to be used to maintain constant manning in the Fire Department and to do something about the Police Department. He pointed out that 2.3 million dollars is proposed to be cut from the Police Department budget, cuts which will result in police officers who are needed in the streets doing menial jobs to compensate ~or the cuts and services now provided. ~e meets w~h the Police Department regularly and John Betag, President of the Anaheim Police Association told him and Council Member Simpson that they were dumb because they were going to vote for Utility Users' Tax along with Council Member Pickler and those persons who ran their campaign against the UUT, Mayor Daly and Council Member Feldhaus, will vote against. As a result, he (Hunter) will be impotent as to how that money is going to be spent (6 million dollars through the end of this year and 9 million dollars next year). The Council majority, Council Members Daly, Feldhaus and Pickler, will have the power to spend that money as they please. If he votes for the UUT, that does not give him a commitment on the manning issue in the Fire Department, dropping the proposed 2.3 million dollar cut in the Police Department budget or hiring more police officers, or a commitment that they will not lay off more employees. 413 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - S=00 P.M. There used to be 2,200 employees and they are now down to 1,700. Currently, contrary to what was stated by Mr. Amin David, the City is a mean lean machine. Laying off more employees who make $7 and $8 an hour with the people in Parks and Recreation being hardest hit, is not going to solve the budget crisis. Until and unless he can get a commitment and policy decision on those three issues, he is not going to vote to continue the UUT. He will not allow the Council majority, who will vote against the tax, to spend the tax. The Council has $15,884,477 in discretionary, one-time monies. His suggestion is that they not cut services and that they take some of that one-time money and balance the budget. He cannot believe the Council cannot make policy decisions as to what they are going to do. He would be willing to take a 25% cut and give up car allowances and tickets to ball games. He asked himself the question, if you were in Fred Hunter's position, would you vote for the tax to allow other Council Members to spend it. His vote is no. Mayor Daly. He has friends and people he respects on both sides of the issue. His feeling on the tax has not changed. The more he looks at spending practices of City Government, the more he is convinced the tax was not necessary two years ago and it is not necessary today. He did make a commitment over and over again regarding the tax and he intends to keep it. ~e would not consciously harm the City and its quality of life. It is a cost f government decision. The general benefits account is larger than the Police budget. The Police Department has increased quite a bit in the last ten years. This Council and previous Councils have added police officers, perhaps not to keep pace with some type of magical ratio. Any in-depth look at the budget will show there is 6 million dollars to balance the budget. The citizens and employees of the City need to think long and hard about the operations of City Government and to look at other Governments and private businesses for the steps they are taking. He feels it is time to try to reverse the trend of subsidizing the Convention Center or at least try to break even. The City has revenues which no other cities have - 34 million dollars in bed tax and 12 million dollars in the Utilities Transfer. With an extra 44 million dollars and not being able to balance the budget, something is wrong. He is convinced the money is there and if he has to find it himself he will do so. Government loses its credibility by raising taxes when it does not need to. The UUT would be a tax on top of a tax since there is already a Utility Transfer. He believes the tax is not necessary - he is against it and it appears that the City Manager will be asked to balance the budget without the Utility Users' Tax. Council Member Pickler offered Ordinance No. 5371 for adoption, amending Chapter 2.13 of Title 2 of the Anaheim Municipal Code, and repealing Section 4 of Ordinance No. 5249, relating to the Utility Users' Tax. Refer to Ordinance Book. ORDINANCE NO. 5371: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING CHAPTER 2.13 OF TITLE 2 OF THE ANAHEIM MUNICIPAL CODE, AND REPEALING SECTION 4 OF ORDINANCE NO. 5249, RELATING TO THE UTILITY USERS' TAX. Before further action was taken, Council Member Pickler, speaking to Council Member Hunter stated the people he (Hunter) is trying to protect are going to be hurt more than anyone else. More and more people will go out the front door. Council Member Hunter. He reiterated if the Council would make a commitment relative to the manning issue in the Fire Department, restoring the 2.3 million possible cuts in the Police Department and not cutting anymore employees, he would support the UUT. 414 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. Council Member Pickler. As far as he is concerned, if there is a way of restoring the 2+ million in the Police Department although he understood it was 1.3, he will do so. As far as keeping everybody working, he does not know if they can do that. Maybe there is a way it can be done for the coming year and something the City Manager could answer. He wants to find a way to keep the 2% tax. It is important for the Police Department and the people Council Member Hunter spoke about. They need to retain the 2% tax and if there is a way to put the'l.3 back in the Police Department and restore the jobs in the Fire Department, he will commit himself to doing that. Mayor Daly. The tax has been in place for two years. Whatever deals Council Member Pickler is going to cut, he has 90-days to do so. He feels it is time to vote on the matter. City Manager Ruth. With respect to Council Member Pickler's question, there is a game plan. If the Council wanted to restore those services there was some one-time savings as a result of some budget cuts that came forward in the last day. That could be applied to reducing those cuts. They could use some one-time money and anticipated revenue out of the transaction. That would restore the Police Department to about 1.6 million, actually 1.3. They would add an additional $300,000 they could use out of Drug Forfeiture funding. There was another $300,000 in fire reductions. Their purpose with fire reductions was to look for more flexible scheduling and not reducing the manning and to look for increased revenues which they are doing through some efforts to regionalize fire service as well as looking at ambulance service. The third issue are the remaining City employees. It is estimated that twelve would be terminated. They believe there are positions for five of those leaving a balance of seven. If the Council wanted to use one-time money to absorb those positions until such time as other vacancies were created in the City, they could be filled accordingly. That would cost about $150,000 for the coming year if they were to absorb those positions for a limited period of time. Council Member Feldhaus. He stated the City Manager told him $220,000 the other day; City Manager Ruth. The other day they thought it was $200,000 or $300,000, but feel it can be done for less because of turn over through retirements. Council Member Hunter. If the Council would "get off the dime" and direct staff to hammer out a contract with the police officers, a lot of senior officers would retire and they could then go out and hire lateral transfers for a lot less pay and the City could actually save money. In his opinion, the Council has been "stonewalling" for the last year. He feels there is a lack of leadership or direction on the Council to hammer out an agreement. A vote was then taken on the proposed ordinance as offered by Council Member Pickler and failed to carry by the following vote: Ayes - (For retention of the 2% Utility Users' Tax through September 30, 1994): Simpson, Pickler Noes - Feldhaus, Hunter, Daly The Utility Users' Tax will, therefore, expire effective midnight September 30, 1993. RECESS: By General Consent the Council recessed for 10 minutes. (8:02 p.m.) 415 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. AFTER RECESS: The Mayor called the meeting to order, all Council Members being present. (8:12 p.m.) A35. CONTINUED PUBLIC HEARING - 1993/94 BUDGET: To consider the proposed 1993/94 Budget Plan. This matter was continued from the meeting of June 8, 1993 to this date. The Budget was also discussed earlier today at the 2:00 p.m., Special Meeting where the balance of departmental budgets were presented to the Council and public input received. The public hearing portion remains open for additional input on the Budget including the following Budget appropriations limits (Items A-D); classification and salary changes (Items E-L); and changes in fee schedules (Items M-W): Resolutions listed as items A through W on the June 15, 1993 agenda were ultimately continued to be considered at the meeting of June 22, 1993. Council Member Pickler. He asked the City Manager if the Budget before the Council is a balanced budget. gity Manager Ruth. He answered no. It is approximately 6 million dollars out f balance. If the Council chose tonight to adopt the budget and direct the ity Manager to come back with 6 million dollars in cuts or additional revenue, they can do that. He would then come back next week with a plan based on the Council's direction to him. Council Member Feldhaus. He added, including the $150,000 to keep the employees on; City Manager Ruth. Whatever the direction of the majority of the Council is. Mayor Daly. This is primarily a hearing to take input from the public on the budget and at the close, the Council will make a decision on whether to adopt a budget or not this evening. He asked for any additional public comments on the budget at this time. Jeff Kirsch, 2661 W. Palais, Anaheim. He asked if the 15 million dollars in discretionary funds are available for balancing the budget and if the Council could put that in perspective for the public. COUNCIL ACTION: Since there were no further persons who wished to speak, Mayor Daly closed the public hearing on the 1993/94 Budget for the City of Anaheim. Mayor Daly. He feels it is premature today to adopt the proposed budget for a variety of reasons whether or not it is balanced due to the uncertainty of the State budget. They do not know the exact impact of the State budget where possibly 3 million dollars in new "hits" may occur. He suggested that the Council hold off action on the final adoption of the budget. Council Member Simpson. He would support that. He is not prepared to pass the budget tonight that has just had 6 million dollars taken out of it and to give instruction to the City Manager to find that money. Speaking to Mr. Kirsch, discretionary is not an appropriate term. He does not foresee taking one-of-a-kind money to balance the rest of the budget. It is borrowing against savings. City Manager Ruth. They are looking at an 8.8 million dollar deficit and not 6 million dollars. 416 City Hall, Anaheim, California - COUNCZL MINUTES - JUNE 15, 1993 - 5:00 P.M. Council Member Simpson. The point needs to be made that 6 million dollars has been cut by virtue of not extending the Utility Users' Tax. They are already faced with 2.9 million dollars in additional cuts for a total of 8.9 million. He would like to take a look at the whole 8.9 million that needs to be restored by a combination of whatever, certainly some of which will have to be cuts. City Manager Ruth. With respect to the one-time money, basically they started out the year with about 36 million dollars that accumulated as a result of some one-time funding, money back from State, and one of the refinancings from the Convention Center. They spent about 5 million dollars this past year on items the City Council approved bringing it down to 31 million. There were also additional commitments of that money through Council policy leaving a balance of 15.8 million where they have some discretion. The City Council could change their position and policy on the use of that additional funding. The bottom line is, of that 31 million, there is about 15.8 million they could reasonably expend with some discretion. 15.8 million in a City of 285,000 and a 559 million dollar budget is not a whole lot. An example is the landslide that occurred in Anaheim Hills which cost 4 million dollars although they are hoping to get reimbursed back from the State. In a City the size of Anaheim, it is not good business to draw down reserves. It can be done, but there is a substantial risk involved. It is necessary to be prudent in keeping some kind of reserve as a protection against catastrophic incidents that could happen. Answering Council Member Pickler, Mr. Ruth stated that the budget is 6 million dollars out of balance. They have cut about 2.2 million dollars out of Police. If the Council wants to restore Police, Fire and AMEA positions, they are looking at 8.8 million with no wage increases for any bargaining unit in the City and drawing down reserves precariously low. Council Member Pickler. He concurs with Council Member Simpson to continue adoption of the budget until June 22, to give the Council an opportunity to work with staff and finding out what happens with the cuts and the use of one-time monies. If there is a motion to continue the budget until June 22, with the idea that staff come up with the two proposals that have been discussed, he will go along with that. MOTION: Council Member Daly moved to continue adoption of the budget to June 22, 1993. Council Member Pickler seconded the motion. MOTION CARRIED. Council Member Hunter. Looking at one-time monies, one thing they need to look at, there is 10 million dollars set aside for the Convention Center East Structure, the one with the "wave" in it. Anaheim brought a law suit and got a judgement for about 4 million dollars; City Attorney White confirmed $4,027,000 plus interest but they have not collected it as yet since it is up on appeal. Council Member Hunter. It is his understanding even though the structure has waves in it, it could either fall down or remain that way for 50 years. There is 10 million dollars with a potential 5 million dollar judgement. It is his understanding that it has to come down in any case if they go to Betterment IV and to some type of bond refinancing. It is 10 million in one-time money the Council could look at; Dave Morgan, Assistant City Manager. He wanted to clarify that the 10 million is not in addition to the 15 million. In other words, it is not 25 million dollars; Council Member Hunter stated he is aware of that. 417 City Ha11~ Anaheim~ California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. Council Member Feldhaus. He feels the Council should get a full report on that. It is a good suggestion. City Manager Ruth. There has been a structural analysis of that parking structure. They do not think the parking structure is going to last too long and that is why they recommend it is prudent to set aside some money. Some day it will have to be replaced. The debt service goes on for the existing improvements. They have to continue paying that debt service and then building a new structure. They are possible looking at 20 to 25 million dollars for a new parking structure. Council Member Hunter. Another issue, the City is embarking on building two of the world's largest parking structures if the Wescor project goes forward. He asked if there has been some future planning relative to the 31 or 32 thousand parking spaces that will be created in that event. He believes there is a parking authority in existence. Cit Manager Ruth. He confirmed they do have a parking authority and considerable amount of study has been done looking at a business plan for the future expansion of the Convention Center and how that relates to the Disney '~xpansion. £om Wood, Deputy City Manager. They have been looking at that matter very recently. One of the concerns is to provide enough on-site parking. Based upon traffic patterns the professionals tend to indicate it is necessary to have a number of close in parking spaces based upon the mix of events. Regardless of the fact that the new structures will provide additional parking for growth of the Convention Center, it is still necessary to maintain a certain number of parking spaces in close to the facility to meet the type of events they have. Mayor Daly. He noted all the resolutions and ordinances deal with establishing new rates of compensation, fees and other matters. He asked the Council if they wish to vote on those this evening or continue them along with the decision on the budget. After brief Council discussion on whether or not to vote on the resolutions and ordinances, it was determined that these would be continued along with the adoption of the budget to June 22, 1993. D1. 121: PUBLIC HEARING - ACQUISITION BY CONDEMNATION OF A PORTION OF THOSE CERTAIN PARCELS OF REAL PROPERTY LOCATED AT 2112 SOUTH STATE COLLEGE BOULEVARD FOR ROAD AND PUBLIC UTILITY PURPOSES - STATE COLLEGE BOULEVARD/ORANGEWOOD AVENUE CRITICAL INTERSECTION STREET WIDENING PROJECT (R/W 6000-9-SANGSTER) LOCATION: 2112 South State College Boulevard To consider a resolution finding and determining the public interest and necessity for acquiring and authorizing the condemnation of a portion of those certain parcels of real property required for road and public utility proposes located at 2112 South State College Boulevard. Submitted was report dated June 7, 1993 from the Director of Public Works and City Engineer recommending adoption of the proposed resolution along with additional necessary actions. Mayor Daly opened the public hearing and asked to hear from anyone who wished to speak to the proposed condemnation. 418 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. COUNCIL ACTION: No one requested to speak to this subject proposed condemnation; therefore, Mayor Daly closed the public hearing. MOTION: On motion by Council Member Pickler, seconded by Council Member Simpson the City Council finds that the subject project conforms to previously approved EIR No. 285 approved in July of 1988 along with General Plan Amendment No. 210. MOTION CARRIED. Council Member Pickler offered Resolution No. 93R-104 for adoption, finding and determining the public interest and necessity for acquiring and authorizing the condemnation of certain real property (R/W 6000-9-Sangster, Trustee). Refer to Resolution Book. RESOLUTION NO. 93R-104: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM Finding and determining the public interest and necessity for acquiring and authorizing the condemnation of certain real property (R/W 6000-9-Sangster, Trustee). Roll Call Vote on Resolution No. 93R-104 for adoptions AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution No. 93R-104 duly passed and adopted. MOTION: Council Member Pickler moved to authorize the law firm of Oliver, Barr and Vose, special counsel for the City, to proceed with said condemnation action. Council Member Simpson seconded the motion. MOTION CARRIED. MOTION: Council Member Pickler moved to authorize the security deposit (fair market value) of $68,550.00 to be deposited with the Orange County Clerk of Superior Court. Council Member Simpson seconded the motion. MOTION CARRIED. D2. 176: PUBLIC HEARING - ABANDONMENT NO. 93-5A: In accordance with application filed by the City of Anaheim, Public Works Engineering Department, a public hearing was held on proposed abandonment of certain easements for Utility purposes extending generally easterly from Douglass St., north of Katella Avenue and extending across the site of the Anaheim Arena pursuant to Resolution No. 93R-84 duly published in the Anaheim Bulletin and notices thereof posted in accordance with law. Report of the City Engineer dated May 6, 1992 was submitted recommending approval of said abandonment. Mayor Daly asked if anyone wished to address the Council relative to proposed Abandonment No. 93-5A; there being no response he closed the public hearing. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Council Member Daly, seconded by Council Member Simpson, the City Council finds that the proposed activity falls within the definition of Section 3.01 Class 5, of the City of Anaheim guidelines to the requirements for an Environmental Impact Report and is, therefore, categorically exempt from the requirements to file an EIR. MOTION CARRIED. Council Member Daly offered Resolution No. 93R-105 for adoption, approving Abandonment No. 93-5A. Refer to Resolution Book. 419 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. RESOLUTION NO. 93R-105: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM VACATING CERTAIN EASEMENTS EXTENDING ACROSS THE ANAHEIM ARENA SITE (93-5A). Roll Call Vote on Resolution No. 93R-105 for adoptions AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution No. 93R-105 duly passed and adopted. D3. 176: PUBLIC HEARING - ABANDONMENT NO. 93-1A: In accordance with application filed by Hyrail Partners II LP, a public hearing was held on proposed abandonment of certain easements for utility purposes, sixty feet in width, extending southwesterly from the terminus of Adams St. and extending across the Southern Pacific Railroad right-of-way pursuant to Resolution No. 93R-85 duly published in the Anaheim Bulletin and notices thereof posted in accordance with law. Report of the City Engineer dated May 4, 1993 was submitted recommending ~pproval of said abandonment. Mayor Daly asked if anyone wished to address the Council regarding Abandonment No. 93-1A; there being no response he closed the public hearing. ENVIRONMENTAL IMPACT REPORT - CATEGORICAL EXEMPTION: On motion by Council Member Daly, seconded by Council Member Simpson, the City Council finds that the proposed activity falls within the definition of Section 3.01 Class 5, of the City of Anaheim guidelines to the requirements for an Environmental Impact Report and is, therefore, categorically exempt from the requirements to file an EIR. MOTION CARRIED. Council Member Daly offered Resolution No. 93R-106 for adoption, approving Abandonment No. 93-1A. Refer to Resolution Book. RESOLUTION NO. 93R-106: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM VACATING CERTAIN EASEMENTS EXTENDING ACROSS ADAMS STREET SOUTH AND WEST OF MANCHESTER (93-1A). Roll Call Vote on Resolution No. 93R-106 for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Resolution No. 93R-106 duly passed and adopted. ITEM B1 FROM THE ZONING ADMINISTRATOR MEETING OF JUNE 10, 1993: DECISION DATEs JUNE 17, 1993, INFORMATION ONLY - APPEAL PERIOD ENDS JUNE 28, 1993. B1. 170: TENTATIVE PARCEL MAP NO. 86-417 CATEGORICAL EXEMPTION CLASS 15 OWNER: Independent Development Co., Inc. Texas Corporation, 1 Civic Plaza, Suite 100, Newport Beach, CA. 92660 420 City Hall, Anaheim~ California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. AGENT: Joseph C. Truxaw & Associates, Inc. 721 North Euclid, Suite 311, Anaheim, CA. 92801 LOCATION: 1701-1731 West Katella Avenue & 1731-1771 South Euclid Avenue. Property is approximately 2.33 acres, located at the northwest corner of Katella Avenue and Euclid Street, approximate frontage of 350 feet on the north side of Katella Avenue. Request approval of a Tentative Parcel Map No. 86-714, to create a three lot subdivision of an existing commercial property. ACTION TAKEN BY THE ZONING ADMINISTRATOR: Tentative Parcel Map approved. (Decision No. ZA93-37) END OF ZONING ADMINISTRATOR ITEMS B2. 179: REQUEST FOR RECONSIDERATION - EXTENSION OF TIME FOR CONDITIONAL USE PERMIT NO. 3389: Request by Alan Findlay, V.P. Operations, Rank Leisure USA, Inc., 5401 Kirkman Road, Suite 200, Orlando, Florida 32819 The property is located at 1859 South Manchester Avenue consisting of approximately three acres. The petitioner is requesting an extension of time to comply with conditions of approval to expire on July 16, 1994. Conditional Use Permit No. 3389 is to permit a 750-seat theme-type dinner theatre with certain waivers including the request for installation of three roof mounted statues consisting of a dragon, a knight and a gargoyle. The request for the extension of time was denied by the Council at the meeting of May 25, 1993 (see minutes that date). Subsequently, the applicant requested a reconsideration of the request and the matter scheduled this date. City Attorney White. While the applicant has requested a rehearing, if the Council wishes to reconsider it, it should not be regarded as a rehearing but a reconsideration. If the Council wants to consider changing the denial of the extension which was the action previously taken, it would be in order by motion to rescind the previous denial. If that motion passes, then the item would again be in front of the Council to consider the extension of time. MOTION: Council Member Pickler moved to rescind the previous denial of the requested extension of time on May 25, 1993. Council Member Simpson seconded the motion. MOTION CARRIED. Council Member Feldhaus. Somebody appeared at the meeting of May 25, 1993 on behalf of King Henry's Feast and the question was asked if they have complied with any of the conditions and some were mentioned. The Council had denied the time extension on the basis of a lack of activity. Council Member Hunter. When the vote was taken, there was not a full Council. He and Council Member Simpson were absent. Annika Santalahti, Zoning Administrator. There were a total of 19 conditions required to be satisfied within one year. Three had been satisfied as of three or four weeks ago. Representatives of the applicant are present tonight. 421 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. Council Member Pickler. Originally when the matter was before the Council, he voted against the project because of the three roof mounted statues, the dragon, knight and gargoyle. He would like to ask the applicant if they would be willing to remove those as part of the condition for reconsideration. City Attorney White. The decision has already been made to reconsider the matter. If it is Council's wish to hear from the applicant or his representative, any member of the Council could ask questions including whether they would stipulate to certain conditions. Frank Elfend, Elfend & Associates. Although the gargoyle was a matter of great discussion, his client has agreed to deleting the three mounted statues - the gargoyle, dragon and knights; Council Member Pickler. That satisfies his concern. Mayor Daly. He opposed the project three years ago and continues to believe it is not in the best interest of the C-R Area. He will be voting against the extension consistent with his original vote. City Attorney White. The motion should include two conditions - the removal of the three roof mounted statues, the dragon, knight and gargoyle and the second relates to the new code requirement regarding landscaping which he believes was the recommendation of the Planning Department at the original time this was on the agenda. Joel Fick, Planning Director. There were two planning related conditions - one relating to additional tree landscaping and the second relating to the configuration of the parking and driveway layouts in accordance with recent code standards. MOTION: Council Member Pickler moved to approve the requested extension of time on Conditional Use Permit No. 3389 to expire July 16, 1994, subject to the additional conditions relating to removal of the three roof mounted statues (dragon, knight and gargoyle), additional landscaping and reconfiguration of the parking and driveway layouts in accordance with recent code standards. Council Member Simpson seconded the motion. Council Member Feldhaus abstained, Council Member Daly voted no. MOTION CARRIED. B3. 179: ORDINANCE NO. 5372 -ADOPTION: Amending Title 18 to rezone property under Reclassification No. 92-93-06 located at 2625 West Lincoln Avenue from the CG zone to the CL zone. (Introduced at the meeting of June 8, 1993.) Council Member Simpson offered Ordinance No. 5372 for adoption. Refer to Ordinance Book. ORDINANCE NO. 5372: AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING THE ZONING MAP REFERRED TO IN TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO ZONING. Roll Call Vote on Ordinance No. 5372 for adoptions AYES: NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly None None The Mayor declared Ordinance No. 5372 duly passed and adopted. 422 City Hall, Anaheim, California - COUNCIL MINUTES - JUNE 15, 1993 - 5:00 P.M. B4. 179: ORDINANCE NO. /RECLASSIFICATION NO. 92-93-07: Amending Title 18 to rezone property under the subject reclassification for property located at 1007 West Lincoln Avenue to the CL zone. City Clerk Sohl announced that at the meeting of May 25, 1993, the conditional use permit associated with the above reclassification was set for a public hearing. Therefore, the reclassification should not be heard tonight. The Planning Department and City Attorney both recommend that the introduction of the ordinance be considered on the same day as the public hearing. After a brief discussion between Council and staff regarding this matter, by General Consent, the proposed ordinance was continued to July 13, 1993. ADJOURNMENT: By General Consent the City Council adjourned to Tuesday, June 22, 1993 to consider Item D2 of June 8, 1993 agenda - the Disneyland Resort Environmental Impact Report No. 311, General Plan Amendment No. 331, the Disneyland Resort Specific Plan No. 92-1 and related actions. (9:00 p.m.) LEONORA N. SOHL, CITY CLERK 423