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02/03/2015 ANAHEIM CITY COUNCIL REGULAR AJOURNED MEETING OF FEBRUARY 3, 2015 The regular meeting of February 3, 2015 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 February 3, 2015 was called to order at 4:03 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on January 30, 2015. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring, Kris Murray and James Vanderbilt. STAFF PRESENT: Interim City Manager Paul Emery, City Attorney Michael Houston and Acting City Clerk Theresa Bass. FY 2014/15 MID -YEAR BUDGET REVIEW Finance Director Debbie Moreno announced the budget review would focus specifically on the current year General Fund including year -end figures for FY 2013/14, preliminary projections for FY 2014/15, accomplishments and enhanced services achieved through the supplemental budget as well as projections for FY 2015/16. OVERVIEW: Ms. Moreno reported Anaheim's $1.6 billion budget consisted of various funding sources, with the largest portions falling within funds restricted for specific activities, such as the Enterprise Funds used to account for self - supporting activities; i.e., water and electric utilities, solid waste and sanitation utilities, golf courses and convention, and sports and entertainment venues. She remarked that with the Anaheim Regional Transportation Intermodal Center (ARTIC) now open and operating, it was now included in the Enterprise funds as well. Special Revenue Funds reflected monies awarded to the city by other governmental agencies for restricted programs such as the Housing Authority, Community Development Block Grant (CDBG), Gas Taxes and Workforce Development; Capital Project Funds were also mainly funded by other governmental agencies for restricted projects such as the Katella Avenue Widening project. She indicated Internal Service Funds were used to track costs for internal services such as employee benefits and insurance, fleet and facility maintenance and replacement, and Information and Communication services, with the costs of these departmental services also reflected within other funds and recorded as department expenditures. Fiduciary, Debt Service and Other General Purpose Funds represented six percent of the City's overall budget with similar restrictions on spending and the remaining General Fund, equivalent to 16 percent of the total budget ($265.8 million), she emphasized, was where the bulk of a city's discretionary funding was found and was used to fund Anaheim's core services. REVENUE ORIGINS /HOW IT WAS EXPENDED: Ms. Moreno stated taxes made up the largest portion of revenues received, approximately 96 percent and included the "Big Three "; i.e. Transient Occupancy Tax (or TOT), Sales and Use Tax and Property Tax. Those tax revenues were used to fund public safety (67 percent), Ensuring Quality of Life, Providing the Necessities, or Civic Upkeep (25 Percent) with the balance spent on Supporting Activities and Government Administration. She pointed out personnel costs accounted for 75 percent of the General Fund expenditures. City Council Minutes of February 3, 2015 Page 2 of 13 END FY 2013/14: Ms. Moreno announced at the time FY 2013/14 budget was adopted, it was projected that the city would receive $250.9 million in revenue, however, TOT outdid projections by $.8 million, reflective of a total growth of seven percent; sales tax revenues hit its projected target with a total growth of 9.2 percent and property taxes grew 3.1 percent, $500,000 under the city's projected figure. She stated actual FY 2013/14 expenditures totaled $248.2 million which reflected a savings of $3.6 million from budget projections and resulted in a draw of $600,000 at the end of 2013/14, Tess than the anticipated $900,000. Those surplus monies were then used to fund one -time projects adopted in the budget. She emphasized Anaheim actually ended that year with a net surplus of $300,000 compared to earlier projections. Ms. Moreno reminded council that last year's strategy for building the General Fund budget was to first balance existing levels, including funding for prior year enhancements without using reserves. Additional resources for both on -going and one -time projects had also been identified because of enhanced revenue receipts and with council's direction and support, $2.9 million of ongoing service enhancements for Police, Fire, City Attorney, Community Services and Planning was approved. She added these enhancements also funded additional staffing for Public Safety, including fire personnel and 10 additional police officers as well as increased staffing levels for the City Attorney's Office, Community Services and Planning. In addition, the budget was also able to include $3 million for one -time improvements to community infrastructure and neighborhoods in Public Works and Planning and for public safety enhancements in Fire, including funding for a new hire training academy for 15 firefighters. CURRENT TREND FOR "BIG THREE" REVENUES: Ms. Moreno announced that for the first half of this fiscal year, all three "big" revenues were on target. TOT was slightly over budget by 1.7 percent, up 7.9 percent year -to -date over the previous year with staff anticipating ending the year at $115.9 million, a figure slightly above budget. She added with the mixed results seen this year and after several years of significant increases in TOT, staff was guardedly optimistic about better than anticipated growth in this revenue. Sales Tax continued to grow over the last several years with the projected growth for the current fiscal year at 4.2 percent, slightly higher than the budgeted increase of 3.9 percent. She noted increased auto sales were mitigated by lower gasoline prices and a reduction in the related sales tax; however, there was growth across all sectors. In the third quarter of 2014, the greatest increases were shown to be in General Retail, Food Products /Restaurants and Business to Business sales. Property taxes were expected to end with revenues up 4.1 percent over last year, or slightly under budget. Ms. Moreno added while home sale prices were relatively steady and the median home price in Anaheim was $460,000, it was up four percent compared to the prior year and she was hopeful the trend would continue for FY 2015/16. GENERAL FUND EXPENDITURE UPDATE: Because all employment positions were fully funded in the adopted budget, Ms. Moreno explained staff anticipated some savings in personnel costs due to lag time between the creation of a vacancy and recruitment, adding there were currently 88 vacancies and a number of recruitments in progress. She noted expenditures were expected to be slightly higher than operating costs with additional one -time costs for litigation off - setting some of the savings. City Council Minutes of February 3, 2015 Page 3 of 13 ACCOMPLISHMENTS: In Public Safety this year: • The Police Department's Safe Schools Detail added another school district and high school to the program which consisted of five investigators and one sergeant actively involved in anti -gang activities in schools and adjacent neighborhoods. • Participation continued to increase in the Junior Cadets Program with 575 youths registered for this year's program, an increase from the 420 that graduated last year. • The Sycamore Public Safety Pathway Program was created at the start of the current school year with the Police Department, in partnership with Anaheim Fire & Rescue, offering weekly curriculum to over 30 eighth grade students. The first semester program ended and the second semester was on track to begin. Adding a seventh grade component offered an opportunity to further grow the program. • The Police Department replaced its outdated 911 telephone equipment with a new system to meet National Emergency Number Association standards for Next Generation 911 systems. The new system provided automatic number and location information when the call was received and prior to being answered, allowing dispatchers to expedite processing for faster entry of calls for service. • Anaheim Fire & Rescue launched the Home Safety Visit Program, a new outreach program focused on risk reduction with Fire personnel delivering fire safety education directly to Anaheim homeowners, particularly those households most vulnerable to fire and fire injuries. The program included key educational messages on home fire safety, inspection of smoke alarms, and when needed, replacement and installation of new alarms with visits currently scheduled at the homeowner's request with over 50 home visits conducted so far and an average of three smoke alarms had been replaced in each home with the program continuing to expand by adding door -to -door visits and the addition of local non - profit partners to assist. PROJECTS /SERVICES UNDERWAY: Those Public Safety projects coming soon include: ▪ The Community Care Response Unit pilot project, pairing a paramedic with a nurse practitioner to respond to non - emergency medical calls was underway with patients often able to receive care on site and those fire engines /trucks that would have normally responded to similar medical calls remaining in service to respond to fires or patients with more critical needs. Agreements were recently approved by city council and staff selections were underway with a target launch of February for the program. • With the hiring of more officers, additional police personnel would be committed to youth service programs in order to complete the implementation of the Junior Explorer Program. This program would help fill the void of services available to junior high school students and bridge the gap between the Junior Cadets Program and the Police Explorer Program. COMMUNITY OUTREACH ACCOMPLISHMENTS: • The Community Policing Team had officers assigned to nine neighborhoods, up from seven neighborhoods last year. The Team's primary responsibility was to work with residents to reduce crime and promote a healthy neighborhood with one key objective being to promote better communication between the community and its police officers. City Council Minutes of February 3, 2015 Page 4 of 13 • As part of its commitment to increase community involvement, the Police Department conducted 47 Coffee with Cop meetings throughout the year, up from 23 compared to last year. In addition, there were 54 Neighborhood Watch meetings held so far this year, versus 46 meetings held during the same period last year. • During the first half of the fiscal year, the Police Department helped relocate 34 homeless individuals into permanent or supportive housing. In addition, officers assigned to the Homeless Outreach Team partnered with community groups, other government agencies, non - profit organizations, and faith -based groups to provide assistance with shelter and other basic needs to 186 homeless individuals. COMMUNITY OUTREACH PROGRAMS UNDERWAY: • The first Citywide Neighborhood Watch Block Captains training scheduled for February 10 would launch the start of a new program aimed at increased participation and sustainability of Neighborhood Watch Programs by providing quarterly training for all Block Captains. • At this point, 163 medical marijuana dispensaries had been closed with 16 remaining open. Staff would continue to work on closing the remaining facilities and address any new operations. • Proposals for the preparation of the Beach Boulevard Specific Plan were received and under review with the Planning Department; a consultant recommendations would be presented to council in April. NEIGHBORHOOD IMPROVEMENTS: These budgeted projects have been completed: • The rehabilitation of Pearson Park pool was completed in November 2014 and ready for the next swim season. This summer over 2,000 Children and Adults would take Learn to Swim lessons, including participants from the Ability First program and over 900 residents would enjoy Free Swim on Friday and Saturday afternoons. • The Mayor and City Council opened Paul Revere Park to the public with a Dedication Ceremony on Saturday, January 10th. • Replacement of 56,500 square feet of damaged sidewalks and 8,500 square feet of curbs and gutters at over 600 locations throughout the City. • Twenty -two ADA access ramps were installed. NEIGHBORHOOD IMPROVEMENTS UNDERWAY: • The rehabilitation of the La Palma Park Stadium Bleachers was scheduled to be completed at the end of February. • The Miraloma Park and Family Resource Center was set to open on March 7. • The La Palma Dog Park was scheduled to open on March 14. • Katella Avenue improvements in the Platinum Triangle area were anticipated to be completed later in February. MAJOR PROJECTS COMPLETED: • The installation of a 2.4- megawatt (MW) solar panel at the Anaheim Convention Center in August 2014 by the Anaheim Public Utilities Department was completed, the largest solar panel of its kind covering 300,000 square feet, and already producing 1.24 Gigawatt Hours of power, covering 20% of the Convention Center's electrical needs to date. City Council Minutes of February 3, 2015 Page 5 of 13 • The Anaheim Regional Transportation Intermodal Center (ARTIC) opened in December 2014, an iconic transportation hub situated on a 16 -acre site owned by OCTA and the City and serving as a transportation gateway and mixed -used activity center for the region. MAJOR PROJECTS UNDERWAY: • The city would be removing up to 1.3 million square feet of turf at the Anaheim Hills Golf Course (almost 25% of irrigated turf) and replacing it with artificial turf which would result in significant water savings of 35 million gallons per year. Anaheim would also receive a $2.5 million rebate from the Metropolitan Water District to cover the cost of the entire project now in design phase and expected to be completed at the end of this calendar year. SUMMARY: Ms. Moreno remarked that early projections indicated revenues would be more than anticipated by about $1.5 million and expenditures would be on target which meant the year would end better than planned by $1.5 million. She pointed out that one assumption had been used to streamline efforts in the City Manager's Office, a change that resulted in approximately $200,000 which could be redirected to sidewalk and curb repair. She added the result was the elimination of a Senior Administrative Analyst position and a current vacancy and by putting available resources toward risk reductions, another $350,000 from the insurance fund could also be put toward this same purpose. She remarked if no objections were raised, staff would bring this adjustment back to council on February 24 for formal action to redirect $550,000 toward new sidewalk and curb repair. Looking forward, Ms. Moreno remarked, modest growth was expected in key revenues and staff would continue to monitor trends and economic outlooks in the coming months and present more solid estimates with the proposed budget document. At this point, staff estimated a balanced budget with existing services levels and the addition of ten officers for a total of 20 new officers over the last two years. She added as more information became available, the executive team would look for opportunities for service enhancements in public safety and neighborhoods for City Council consideration. BOND PROCEEDS / NEIGHBORHOOD IMPROVEMENTS: Ms. Moreno explained that last December, the Anaheim Public Financing Authority completed the bond sales for the expansion of the Anaheim Convention Center based on approvals obtained in March 2014. She indicated the plan would: keep the General Fund's annual lease obligations at current levels of $17 million per year, refinance existing lease obligations for savings, obtain construction proceeds for the expansion of the Convention Center and provide additional community and neighborhood improvement funds. With the completion of the bond sales, the City would be able to obtain an additional $20 million for other community and neighborhood improvements with Anaheim's management team having identified certain areas to apply those bond proceeds and staff planning to bring those items back on February 24 as well for formal council action. Specifically, she added, the management team recommended $8.2 million for the relocation and addition of fire stations, an additional $500,000 for library renovations and $9.3 million for residential street rehabilitation, with $2 million remaining as the team worked through a needs assessment process to determine best use. Fire Stations: A map showing the current location of Anaheim's fire stations was provided along with details on how the targeted travel time of four minutes was met across the city. The goal of the Fire Department's redeployment plan was to maximize those areas with City Council Minutes of February 3, 2015 Page 6 of 13 travel times less than four minutes and improve access in the areas of need. The $8.2 million would provide sufficient funding to add one fire station and relocate a second while improving response times citywide. Specifically, one fire company would be moved from Station 8, with one engine moving to the new fire station to be located at 4950 E. La Palma. Station 5 would be moved west and relocated to a location to be determined (in the general vicinity of La Palma /Kraemer). With this revised deployment model, Ms. Moreno stated, a 50 percent improvement in time travel to the target 4 minutes would be achieved. Library Renovations: Ms. Moreno reported there was $850,000 budgeted in FY 2014/15 for the renovation and redesign of the Euclid and Sunkist branch libraries: $250,000 was funded through a council approved service enhancement and $600,000 was funded through Community Development Block Grant funds, which left $425,000 available for each of the two branches. She explained both libraries were built in 1976 and as the design process began, the department found there were a large number of infrastructure requirements (electrical, lighting, fire protection and alarms, HVAC and plumbing and ADA compliant bathrooms) that must be addressed and that the budget of $425,000 for each facility was insufficient to properly update those public spaces. The plan was to reconfigure interior and exterior spaces to allow for more flexible space and rooms for different community and staff needs; including: • realigning service functions to include designated areas for story -time, teens, and adult quiet space; • updating the inefficient lighting and electrical infrastructure; • adding new paint and carpeting; and • remodeling service desks, shelving systems and furnishings to allow the libraries to continue serving neighborhoods for the next 20 years. . Ms. Moreno announced because there were more infrastructure items than originally anticipated, staff recommended an additional $500,000 from the bond proceeds be used to augment the renovation projects for branch libraries that served high priority neighborhoods. Street Rehabilitation: Ms. Moreno stated $9.3 million was available for residential street rehabilitation in specific high - priority areas, specifically for seven large -scale neighborhood rehabilitation projects identified on a map provided during the presentation. The improvements would address aging infrastructure and residential complaints due to long overdue repairs to streets, signs, sidewalks, curbs and gutters and would enhance walkability of sidewalks, improve ride quality and safety and beautify city neighborhoods. She added this funding would offer an opportunity to catch up on deferred pavement maintenance and to improve the quality of life for many Anaheim residents. Ending her presentation, Ms. Moreno remarked the departments were in the process of preparing their budget proposals for next fiscal year which would be reviewed by the City manager in the next few months followed by the formulation of a strategic plan with the executive team in April. The proposed budget would be available in late May and budget workshops would commence in June with its adoption scheduled for June 16 She added the additional sidewalk funding, fire stations, library renovations and residential street rehabilitations would be presented for council consideration on February 24tH City Council Minutes of February 3, 2015 Page 7 of 13 Council Member Murray inquired whether the turf removal and replacement rebate was being considered for Dad Miller or other city facilities. Director Terry Lowe responded there was an item on this agenda for the total replacement of irrigation /lighting systems for Dad Miller golf course to an energy efficient system and whenever funding opportunities were available, the department competed for various programs. From a turf removal standpoint, he added, if funding was available for Dad Miller, the City would make application. Ms. Murray asked that the mid -year budget presentation be posted on the city's website as quickly as possible. She also referenced plans to communicate all neighborhood enhancements to make residents aware of what was going on in their area. City Manager Paul Emery responded staff would follow up with that request and would have a full outline of the steps taken to communicate and outreach to residents about new community plans for the future. Mayor Pro Tem Kring addressed police officer staffing levels, asking for a status on the goal of having officers back to pre- recession levels. Ms. Moreno remarked as far as funding, council adopted a funding policy that over the next four years, officers would reach pre- recession employment level. Chief Quezada further responded that pre - recession levels reflected 403 officers and as of today, there were 360 in the department. He added there were currently 55 officers in various stages of hiring, both laterals and new hires. Ms. Kring was appreciative to hear efforts to bring the department back to full staffing levels was well underway and also expressed her support for the sidewalk, curb and gutter repair program and staff's focus on expanding opportunities to address neighborhood improvements. Council Member Vanderbilt remarked that as he understood it, the fire station replacement and response times would be addressed during two, three and five -year plans. Chief Bruegman concurred adding that the department would bring back an updated strategic plan during a March workshop which would detail plans for the next five years. Three other facilities would be addressed in that long -term plan, however, staff would also update council on projects underway, such as traffic signalization, which helped travel response time, reflective of a plan that was based on the 2013 strategic plan. Council Member Brandman was fully supportive of bond proceeds being used to maximize quality of life for residents, emphasizing it was made possible by council's approval of the convention center expansion. He appreciated staff's response to his suggestion of streamlining positions in the city manager's office, adding there was more to do so that additional funds could be directed to departments or services that directly impacted residents and businesses and he looked forward to seeing other innovative ideas. Mayor Tait requested clarification on FY 2013/14 projected net revenues entitled Other Revenues of $9.8 million versus actual revenues coming in for that year at $6.2 million. Ms. Moreno responded the city had unanticipated costs to pay back funds due to a decision of the State Department of Finance to invalidate some previous land sales transactions occurring a number of years ago, and roughly $3 million was used to repay the state. Mayor Tait understood that was an unanticipated payment, and wondered if it had an impact on reserves with Ms. Moreno responding that due to savings that occurred related to over performance of revenues, there was no impact on the city's reserves and anticipated reserve figures could potentially increase by a couple of million dollars this year. City Council Minutes of February 3, 2015 Page 8 of 13 ADDITIONS /DELETIONS TO CLOSED SESSION: Michael Houston, City Attorney, reported Kristine Ridge would fill in for the absence of Chris Chase (Closed Session Item No. 2) as the Agency designated representative for closed session purposes. PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 4:45 P.M. P.M., Mayor Tait recess to closed session. CLOSED SESSION: 1. PUBLIC EMPLOYEE APPOINTMENT (Section 54957 of the California Government Code) Position: City Manager 2. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Chris Chase Position: City Manager At 5:13 P.M., City Council returned from closed session and the agenda was resumed. INVOCATION: Father Gilberto Escobedo, Saint Boniface Church FLAG SALUTE: Council Member James Vanderbilt PRESENTATION: Recognizing Michael Baker for his contributions to the Boys and Girls Clubs of Anaheim Mayor Tait introduced Michael Baker thanking him for making a difference in the lives of Anaheim's youth and expanding his efforts to reach out to children from disadvantaged neighborhoods in the city. Mr. Baker encouraged the city to continue to support the organization, stating it was the best investment to be made in this community. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Recognizing Wylie and Bette Aitken and major sponsors of The Chance Theater Erika Miller expressed her appreciation to Mayor Tait and council members for recognizing the donors and supporters of Chance Theater and for including the theater in the Mayor's state of the city address. Proclaiming February 2015, as Career and Technical Education Month Brian O'Neal thanked the city for recognizing Career and Technical Education Month, announcing there were over 21,000 high school students from Anaheim Union High School District involved in North Orange County Regional Occupation Programs, offering industry relevant, rigorous academic and technical experiences combined with hands -on exposure to real world professionals. He emphasized this program gave students the desire and fortitude to stay in school to gain marketable skills for their future. Proclaiming February 2015, as Make Kindness Contagious Month City Council Minutes of February 3, 2015 Page 9 of 13 ADDITIONS /DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS (all agenda items): Prior to receipt of public comments, a brief decorum statement was provided by Acting City Clerk, Theresa Bass. Cecil Jordan Corkern, Outreach Homeless Ministries, interpreted various passages of the Bible. Daniel DeMeyere, resident, requested the following be considered for his Brookhurst neighborhood as part of the Brookhurst Street Improvement Project: wrap- around sidewalks and an intersection at the corner of Brookhurst /Crestwood Lane as solutions to safety concerns. William Fitzgerald, Anaheim Home, offered his viewpoint on the State of the City address, the Anaheim Chamber of Commerce and city council members. Keith Olesen, speaking in support of Agenda Item No. 8, urged strengthening the city's ordinance to deal with marijuana dispensaries, adding the city was doing a good job closing down the vast majority of dispensaries, but that the ordinance would help in situations where dispensary operators did not play by the rules and as an example he pointed to a business that opened last fall on Lemon and North Streets. He emphasized fines were issued, utilities were terminated, criminal citations served, and eventually all property was seized; however, the business reopened two days later. He strongly supported this ordinance. Maria James, speaking on behalf of advocates for medical marijuana, discussed the need for the dispensaries for cancer or other medical patients who had no other choice for pain. She urged the businesses be given business licenses so that she and others would not be forced to look elsewhere for their medical needs. An unidentified speaker referencing the website AnaheimNeedslmprovement.Com, recommended city council request a comprehensive management and financial audit to identify problems in the city's operation to be used in relation to the city manager recruitment process. Mark Daniels suggested the use of waterless urinals in all city facilities as a water conservation effort. COUNCIL COMMUNICATIONS: Mayor Tait responded to Mr. Fitzgerald's comments, urging him to refrain from the use of profanity. Council Member Murray congratulated Mayor Tait on his State of the City address and for raising over $70,000 for ACT, a program serving Anaheim's youth. Mayor Pro Tem Kring responded to an Orange County Register article that suggested the city was trying to sell the stadium property to Disneyland, remarking that it was a supposition by the author who stated he had no such information to impart or confirm, but suggested it would help solve the need for Disneyland parking space. Her support was in keeping Angels Baseball in Anaheim with development uses surrounding the stadium that would generate on -going revenues for the future. CITY MANAGER'S UPDATE: None City Council Minutes of February 3, 2015 Page 10 of 13 CONSENT CALENDAR: Council Member Brandman moved to waive reading in full of all ordinances and resolutions and to adopt the consent calendar as presented, in accordance with reports, certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Mayor Pro Tem Kring. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried B105 1. Receive and file minutes of Community Services Board meeting of October 9, 2014, Library Board meetings of October 13, 2014 and December 8, 2014, Parks and Recreation Commission meetings of October 22, 2014 and December 3, 2014 and Cultural and Heritage Commission meeting of November 20, 2014. 2. Approve Certificates of Recognition to be presented at a future Council meeting to the D116 2015 Miss Anaheim Pageant Awardees, William and Dolores Parsch's 65 Wedding Anniversary and Lowell B. Jones' 100 Birthday. 3. Authorize the Human Resources Director to select a consultant to provide executive D154 recruitment services for the position of City Manager, and execute all contractual documents pertaining thereto. 4. Ratify an emergency purchase order to Air Zealand Limited (ANZ), in the amount of $26,830, for the disassembly, inspection and diagnostic report on the Public Utilities D180 LM5000 combustion turbine generator (CTG), accept the bid of ANZ, in an amount not to exceed $364,458, for repairs to the CTG, in accordance with Bid #8409, authorize the Purchasing Agent to execute the documents required to complete the repairs, and authorize an amendment to the Public Utilities Department's fiscal year 2014/15 budget in the amount of $391,288. 5. Approve and authorize the Executive Director of the Convention, Sports & Entertainment AGR-4531.B Department to execute and take the necessary actions to implement and administer an agreement, and any other related documents, with Contemporary Services Corporation (CSC) authorizing CSC to provide crowd management services, on a non - exclusive basis, to events held at the Anaheim Convention Center. 6. RESOLUTION NO. 2015 -019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Community Services or his D150 designee to submit an application to the Department of Water Resources for the 2014 Water- Energy Grant Program for the Dad Miller Golf Course Water Energy Project on behalf of the City of Anaheim, and if awarded, authorizing the acceptance of such funding on behalf of the City and amending the budget accordingly. 7. ORDINANCE NO. 6314 (ADOPTION) AN ORDINANCE OF THE CITY OF M142 ANAHEIM adding Chapter 13.14 (Dog Parks) to Title 13 (Parks and Boulevards) of the Anaheim Municipal Code relating to Dog Parks and amending Subsection .010 of Section 8.08.080 of Chapter 8.08 of Title 8 and Subsection .010 of Section 13.08.020 of Chapter 13.08 of Title 13 of the Anaheim Municipal Code to be consistent with the addition of said new Chapter 13.14 and based upon the finding and determination that said ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060 (c)(2) and 15060 (c)(3) of the State CEQA guidelines (Introduced at the meeting of January 27, 2015, Item No. 21). City Council Minutes of February 3, 2015 Page 11 of 13 END OF CONSENT CALENDAR: 8. ORDINANCE NO. 6315 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 4.20.030 of Chapter 4.20 of Title 4 of the Anaheim M142 Municipal Code (Medical Marijuana Dispensaries) and Section 4.21.030 of Chapter 4.21 of Title 4 of the Anaheim Municipal Code (Mobile Medical Marijuana Dispensaries) relating to land owners and landlords as parties subject to the prohibitions contained in said chapters, and adding Section 4.20.050 to Chapter 4.20 relating to public nuisances. Sandra Sagert, Code Enforcement Manager, reported in 2007 Anaheim adopted an ordinance barring the establishment and operation of medical marijuana dispensaries. This resulted in a suit against the city, which had an impact on Anaheim's ability to enforce that ordinance related to state laws that decriminalized certain marijuana - related crimes. As a result, she explained, the number of dispensaries opening in Anaheim grew along with the number of public complaints received; and in 2011, the city adopted an interim urgency ordinance imposing a temporary moratorium on medical marijuana dispensaries for a period of two years, followed by action by the city in 2013 which expanded the prohibition to include mobile dispensaries. She noted on May 6, 2013, the California Supreme Court affirmed a city's right as a public agency to ban medical marijuana dispensaries and to enforce civil as well as criminal penalties for violation (City of Riverside v. Inland Empire Patient's Health & Wellness Center, Inc.); and shortly after this ruling, the California Court of Appeal upheld Anaheim's ability to use both civil and criminal enforcement of its prohibition on dispensaries (Qualified Patient's Association v. City of Anaheim). Ms. Sagert explained that immediately following both rulings and in response to numerous complaints by the public, the city began taking action to close all medical marijuana dispensaries. Staff from the City Attorney's office, Planning, Fire, Police and Utilities departments collaborated to enforce this ban and out of the 179 medical marijuana dispensaries that opened in Anaheim, as of today 163 had been successfully closed down. She added staff continued efforts on the remaining 16 that continued operating illegally. In August 2014, staff began to disconnect power and sometimes water to medical marijuana dispensaries that refused to close and while this tactic caused some businesses to cease operations, others used generators, water pumps or other means to provide power to continue to sell marijuana. In several instances, she pointed out, the use of generators caused health hazards including carbon monoxide poisoning. While current enforcement actions were focused on medical marijuana businesses, the Anaheim Municipal Code also allowed the city to take enforcement action against the owner or operator of the property where the violation occurred. Ms. Sagert reported that many property owners cooperated with the city when advised of illegal activities taking place on their property, although, some owners or property managers refused to cooperate and allowed those unlawful activities to continue even after being notified by the City. In response to a request by Council Member Murray and in an effort to address those illegal business operations, she reported staff proposed to amend the code to clarify and strengthen the city's ability to pursue civil and criminal penalties against property owners, landlords and /or property managers who allowed medical marijuana dispensaries to unlawfully conduct business on their property. This would include penalties of a $1,000 fine per day along with a $1,000 re- inspection fee per day for time associated with enforcement action and court injunctions with the possibility of criminal charges for misdemeanor violations resulting in up to a $1,000 fine per day and up to one year in jail. She emphasized that approving this amendment would give the city attorney the ability to seek consent required from the district attorney to bring actions against property owners, landlords City Council Minutes of February 3, 2015 Page 12 of 13 and property managers for violation of the California Unfair Competition Laws. This penalty, she added, could carry a $2,500 fine per day per violation of the Business and Professions Code and $6,000 per day if an injunction was violated. Council Member Murray thanked staff for bringing this ordinance forward to control a situation causing harm to communities and businesses. She pointed out that dispensary clientele were mostly teenagers and that it was easier for a teenager to buy marijuana than cigarettes with no parental consent needed, no medical oversight given and no dosage requirements in effect. In addition, she stated there were no limitations on getting a card from one dispensary and making purchases at multiple dispensaries. She added this ordinance would stop using resources that should be going towards quality of life services and moved to introduce the ordinance, seconded by Mayor Pro Tem Kring. Mayor Tait expressed concern that under this ordinance a property owner with no knowledge of the type of business being conducted on his property or unable to evict a lessee would be faced with criminal charges. He was also sympathetic to those who used this product for medicinal reasons, recognizing it was a tough issue to manage. Mayor Pro Tem Kring stated she would support this ordinance but also felt it was too onerous for landlords. She emphasized a letter should be sent to Sacramento legislators recommending that controls be put into place to manage the sale of medical marijuana, possibly selling the product through drugstores so that everyone receives the same type of drug that was quality controlled and was overseen by a legitimate physician. Mayor Pro Tem Murray requested the city attorney explain the components of the ordinance, stating it did provide a number of steps to work with property owners cooperatively before more onerous steps were taken, asking the city attorney to explain the process. Mr. Houston responded that the existing code did anticipate that landowners could be held liable for an unlawful use on their property via liability under the nuisance law and that would not change regardless of what action was taken on this proposed amendment. He emphasized this amendment was directed at instances where landowners were complicit in allowing unlawful uses to continue on their property after being advised by the city. Specifically, from a criminal perspective, it would identify landowners or certain types of agents of landowners to put them on notice so that in the event there were facts that a prosecutor believed warranted prosecution, the city would have the ability to do so. He further added the goal of this ordinance was to gain compliance as was the goal of zoning code violations in general and there would be no basis to prosecute if the landlord would cooperate with the city to remove an unlawful tenant. In addition, he pointed out there was no penalty in this ordinance for an individual using marijuana, referencing the Compassionate Use Act and Proposition 214 that decriminalized conduct of users and those giving authorization for individuals to use marijuana for medical needs. Council Member Murray reiterated this ordinance was about holding those accountable who were willfully violating existing city laws. Council Member James Vanderbilt supported this ordinance, remarking the profit to be made from medical marijuana dispensaries was so great that businesses were willing to face civil prosecution and continue operating. His goal was for the medical marijuana community and the California Medical Association to raise their standards for dispensary operations. Mayor Tait remarked he would vote against this ordinance citing tenant and landlord rights and that it could inadvertently lead to a new class of criminals. City Council Minutes of February 3, 2015 Page 13 of 13 Council Member Murray moved to introduce ORDINANCE NO. 6315, An Ordinance of the City of Anaheim amending Section 4.20.030 of Chapter 4.20 of Title 4 of the Anaheim Municipal Code (Medical Marijuana Dispensaries) and Section 4.21.030 of Chapter 4.21 of Title 4 of the Anaheim Municipal Code (Mobile Medical Marijuana Dispensaries) relating to land owners and landlords as parties subject to the prohibitions contained in said chapters, and adding Section 4.20.050 to Chapter 4.20 relating to public nuisances, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES — 4: (Mayor Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt). NOES — 1: Mayor Tait. Ordinance No. 6315 was introduced. REPORT ON CLOSED SESSION ACTIONS: None COUNCIL COMMUNICATIONS Mayor Pro Tem Kring congratulated the mayor on his State of the City address and for raising over $70,000 for ACT Anaheim. She announced the Black History Parade on February 7, 2015 and acknowledged the International Association of Firefighters who recently met in Anaheim. Mayor Pro Tem Kring requested staff agendize a resolution supporting parents at Palm Lane Elementary School and their use of the Parent Trigger Law and also requested the City Attorney draft a letter to the State legislature regarding medical marijuana dispensaries. Council Member Vanderbilt thanked Mayor Tait for the State of the City, the ACT Anaheim partnership, and the collaboration of the business community. Council Member Murray congratulated the Mayor on the State of the City and provided clarifying remarks regarding previous work with legislature regarding medical marijuana dispensaries. She announced three events on February 7 Black History Parade, Access California Gala, and Miss Anaheim Pageant, as well as the Anaheim Semper 5K Race at Sycamore Park on March 21 benefitting the 13 MEU. Council Member Brandman requested this meeting be adjourned in memory of Dorothy Warden, mother of Susan Faessel and a long -time resident and business owner beloved by many. Mayor Tait thanked the Council for their comments on his State of the City event and spoke of ACT Anaheim and the P21 mentoring program. He requested an item be placed on the agenda to restore the budget for his assistant which had been previously reduced by 40 percent. ADJOURNMENT: At 6:37 P.M., Mayor Tait adjourned the February 3, 2015 Regular Adjourned meeting in memory of Dorothy Warden. Respectfu4Ey- mitted, ■ Theresa Bass Acting City Clerk