03/17/2015 ANAHEIM CITY COUNCIL REGULAR
AJOURNED MEETING OF MARCH 17, 2015
The regular meeting of March 17, 2015 was called to order at 3:00 P.M. and adjourned to 4:30
P.M. for lack of a quorum. The regular adjourned meeting of March 17, 2015 was called to
order at 4:30 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 March 13, 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 City
Clerk Linda Andal.
ADDITIONS /DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: Mayor Tait abstained on Items 1 and 2
of the closed session agenda as his firm had worked with some of the parties involved; he
excused himself from closed session.
At 4:31 P.M. Council recessed to closed session for consideration of the following items.
CLOSED SESSION:
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(I ) of Section 54956.9 of the California Government Code)
Name of Case: San Diego Gas & Electric Company, City of Riverside, and City of
Anaheim v. Southern California Edison (JAMS Reference No. 1220047676)
2. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION
(Subdivision (d)(4) of Section 54956.9 of the California Government Code)
Name of Case: Ricardo Guzman Gonzalez v. Richard Skwara, County of Orange,
Griffith Company, et al. Orange County Superior Case No. 30 -2014 0074371 0- CU -PA-
CJC
At 5:11 P.M., the council meeting was reconvened.
INVOCATION: Pastor Mark Bove, Calvary Chapel Anaheim
FLAG SALUTE: Mayor Pro Tem Lucille Kring
PRESENTATIONS: Recognizing the 2014 Eagle Scouts from the City of Anaheim
Jorge Ruiz de Somocurcio, Orange County Council, thanked the city for recognizing these
young men who achieved the highest ranking in Boy Scouts based on their commitment and
involvement in the community; he then named 17 eagle scouts from the El Capitan District.
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ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Proclaiming March 2015, as Women's History Month
Dr. Kimberly Salter, National Women's History Project, accepted the proclamation and
disseminated the 2015 Women's History Gazettes that were distributed to every public high
school in the county each year in recognition of Women's History Month.
Proclaiming March 22, 2015, as World Water Day
Issis Macias accepted the proclamation on behalf of the Anaheim Public Utilities Department,
announcing the United Nations had designated March 22 as World Water Day to focus global
attention on the importance of clean drinking water for all.
Proclaiming March 21, 2015, as World Poetry Day
Audrey Lujan, Anaheim Public Library Division, accepted the proclamation, adding that the
libraries would be celebrating poetry day throughout the month with events for all. Library
patrons were also invited to submit a limerick about the library and post it on the library social
media site.
Proclaiming March 31, 2015, as Cesar Chavez Day
Ernesto Madrano, Anaheim Cultural & Heritage Commission and representative for LA/OC
Building Trade Council, talked about his history in the labor movement and his connection with
Jesse De La Cruz, a force in the United Farm Workers organization for many years. He
introduced Robert De La Cruz who spoke of his mother's background and her legacy that
inspired others to follow in her path.
Proclaiming April 6, 2015, as Major League Baseball Opening Day
Dennis Kuhl, Angels Baseball Club Chairman, stated last year was a great year for West Coast
baseball and he looked forward to another great year in partnership with the city and hoped to
see everyone on opening day, April 6
Proclaiming April 2015, as Donate Life Month
Daniel Luevanos, a Donate Life Ambassador, announced over 123,000 individuals were on the
national donor waiting list, explaining his personal journey and why it was important to spread
the word about eye, organ and tissue donations. He added Donate Life partnered with the Red
Cross and the DMV to encourage signing up with the state donor register or on their websites:
www.donatelifecalifornia.orq or www.donevidacalifornia.orq.
Recognizing the Assistance League Anaheim on their 75 Anniversary
Gail Taylor, Assistance League Anaheim, introduced league president, Shari Cipollea and
Marilyn McCorkle, chairman of 75 anniversary celebration. She announced two significant
events were being recognized, the anniversary celebration for an organization that had been
serving Anaheim for 60 years and the 25 annual fashion show fundraiser scheduled for May 2
at the Disneyland Grand Ballroom. She invited and looked forward to council's support and
attendance at this function.
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ADDITIONS /DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (all agenda items): Prior to receipt of public comments, a brief decorum
statement was provided by City Clerk Linda Andal.
Daniel DeMeyere, resident, remarked he was grateful for the city's help on numerous issues he
had brought to their attention regarding the Brookhurst Street Improvement project. He added
the bus stop was still a problem and recommended it be relocated to its original site on the north
side to improve function and safety.
Michael Buss, Anaheim Arts Council, announced the Sacred Arts Festival would be held this
coming Saturday, offering an opportunity to view unique art in the various houses of worship to
be found in Anaheim.
Carol Latham announced the WAND barbecue scheduled for May 9 at Twila Reid Park, a day
of fun and excitement and activities for the entire family.
R. Joshua Collins, homeless advocate, discussed the need to address how the homeless who
were mentally ill could be helped by police officers who were trained to do so instead of
incarceration.
Lou Noble, homeless advocate, urged the opening of a shelter for the homeless and policies
that did not infringe on their rights.
William Fitzgerald promoted implementation of a gate tax of $1 per person for Disneyland
access, stating the company had long benefitted from Anaheim tax dollars.
Leslie Anderson thanked the Planning Department and Code Enforcement for recently
investigating his well- documented concerns regarding night parking impacts from a business
occurring at 633 S. East Street. He remarked this had been going on for eight years and he had
been asking for city assistance during that period and was appreciative of the visit and hoped
the outcome would address his and his neighbors' concerns.
Dr. Wayne Palmer urged Council to approve Agenda Item No. 5, One Hundred Chances, a
mentorship program promoting opportunities for at -risk Anaheim youths to become productive
citizens.
Johnny Angeles, representing Clean City, spoke on behalf of One Hundred Chances, a program
that took 12 to 19 year old at -risk youths and linked them with business mentors and
professional counselors to keep them on the right path and give them a chance to succeed. He
urged council's support of Item No. 5.
Larry Slagle, V &CB, discussed the recent Convention Center activities. NAMM had record
attendance of nearly 100,000 impacting restaurants, taxis, shopping and other event uses as
well as donating $10,000 to Anaheim City Schools for music programs, a service they were
involved in for a number of years. National Food Products, another successful conference, in
conjunction with Second Harvest, donated 83,000 pounds of food and cooked /served 69,000
meals for residents of Anaheim. He added that by expanding the Convention Center meeting
space, other additional groups would be added to retain this economic activity paid for by
additional transient occupancy taxes and sales taxes and not by Anaheim residents. He talked
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of other programs in effect to boost convention business and how the resort area was not only
good for business but for the entire city.
Rene B. spoke out regarding Monique Deckard, a mentally challenged individual, who was
fatally shot by Anaheim police officers. She demanded to know the names of the officers
involved and believed this situation should have and could have been handled differently.
Donna Acevedo made requests related to the police department's policies and asked how the
Public Safety Board would address certain issues. She urged Council to attend the next
meeting of the Board on April 90.
Theresa Smith addressed the death of Monique Deckard, stressing the family had called the
police department for help because they were concerned for Ms. Deckard and she wondered
why a trained police unit that understood and could handle mental health issues had not
responded to that call.
Melanie Grant, National Council of Negro Women, spoke in support of Dr. Patricia Adelekan for
appointment to the Cultural and Heritage Commission, stating she was respected in the
community and could offer unique skills and experiences to this board.
Brian Chuchua reminded the community of the 40 annual Lion's baseball tournament on March
28 through April 1 He also inquired if the bond issues available for investors be issued in
smaller amounts to allow members of the community to participate.
Joanne Sosa announced the Sacred Arts Festival was scheduled for this coming Saturday,
offering 12 houses of worship and details on the rich histories, artifacts, and ceremonies unique
to each site; she urged the community to participate.
Courtney Bib, New York resident, announced he had ridden his bike across the country,
choosing 20 cities and 20 charities to support. In Anaheim, he chose the Eli Home and the One
Hundred Chances program, hoping to raise $20,000 as a result of his bike trip, $1,000 for each
of the 20 charities he selected.
Yesenia Rojas, resident of Anna Drive, urged the city and the community to work together in
making Anna Drive a beautiful neighborhood like others in the city. She asked Council to
remember that the future of Anaheim was reflected in its youth.
Greg Diamond, CATER, addressed his comments to statements in the February 24, 2015
minutes relative to Mayor Pro Tem Kring's comments on a charter school matter.
Cynthia Ward remarked that Mr. Slagle failed to mention the NAMM convention was an LA
based group of musicians and did not generate TOT. She asked when studies would be
received that showed the revenues conventions would bring and if there was an agreement with
the larger groups that they would stay after the Convention Center was expanded on their
behalf. Referencing the $20 million from bond proceeds, she commented, those monies were
not a result of cost savings from refinancing; it was due to borrowing $20 million more than was
needed for the expansion. She supported funding the Mayor's staff as requested at a previous
meeting and objected to statements made that CATER cost the city $10 million.
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COUNCIL COMMUNICATIONS: None
CITY MANAGER UPDATE: City Manager, Paul Emery, requested Chief Raul Quezada
address comments made regarding Monique Deckard. Chief Quezada reported body cameras
had been approved last year and during the Deckard incident multiple cameras had been used.
He had reviewed the video captured that evening and sent it to the Orange County District
Attorney for use in their investigation, adding that the video displayed the entire incident and
showed the danger officers faced every day. He stated the privacy of the family would be
respected, the investigation would be conducted and was going forward, and release of the
video would be up to the District Attorney.
In response to an earlier public comment, he indicated Michael Gennaco, Los Angeles County's
Office of Independent Review, responded to the incident as part of the investigation team.
Additionally, he explained the Anaheim Police Department had responded to a call regarding
Ms. Deckard who did not come to the door, adding that officers were limited with respect to
entry in that instance. He also pointed out the information stated earlier regarding location was
not factual and would be confirmed by the video and that Mr. Gennaco would report back to the
Public Safety Board at the conclusion of the criminal investigation with the video would be made
available to the board at that time. Chief Quezada also mentioned there was an administrative
internal investigation being conducted.
CONSENT CALENDAR:
Mayor Pro Tem Kring removed Item Nos. 5 and 8 from the consent calendar for further
discussion, Mayor Tait pulled Item No. 9 and declared a potential conflict of interest on Item No.
10 as his firm had worked with the County of Orange this past year. Council Member Vanderbilt
stated he had a potential conflict of interest on Item No. 19 and would remove Item Nos. 12 and
16. Mayor Pro Tem Kring moved to waive reading in full of all ordinances and resolutions and
to adopt the balance of 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 Council Member Murray. Roll Call Vote: Ayes — 5: (Mayor Tait
and Council Members: Brandman, Kring, Murray and Vanderbilt.) Noes — 0. Motion Carried.
B105 1. Receive and file minutes of the Public Utilities Board meeting of January 28, 2015 and
Parks and Recreation Commission meeting of January 28, 2015.
D116 2. Approve the Proclamation and Certificates of Recognition to be presented at a future
Council meeting for Kids to Parks, Anaheim Youth of the Year and Canyon High
School's Boys Varsity Basketball for its CIF Division 2AA Championship.
D117 3. Approve the Investment Portfolio Report for February 2015.
4. Accept the 2014 Annual Housing Element Progress Report and direct staff to submit the
D159 report to the Governor's Office of Planning and Research and the California Department
of Housing and Community Development.
AGR-8755 6. Award the contract to the lowest responsible bidder, Paulus Engineering, Inc., in the
amount of $927,166, for the Citywide Sanitary Sewer Improvement Program /Projects,
Group 4, Model 134 on Cerritos Avenue (from Brookhurst Street to Nutwood Street) and
Dallas Drive (from Cerritos Avenue to Cris Avenue) and authorize the Finance Director
to execute the Escrow Agreement pertaining to contract retentions.
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AGR- 7. Waive Council Policy 4.1 and approve an agreement, in an amount not to exceed
4953.B $25,000 annually, with HeliStream, Inc., for primary and advanced helicopter pilot
training services with three one -year optional renewals and authorize the Chief of Police
to execute any amendments or optional renewals under the terms and conditions of the
agreement.
10. Approve and authorize the City Manager to execute and take the necessary actions to
AGR
1490.III.A.1 g County administer th Amendment to Joint Agreement, in substantial form, with the Count of
Orange, in the estimated cost share not to exceed $14,407,241, for the operation,
maintenance and financial management of the 800 Megahertz communication system.
Mayor Tait reported he had a potential conflict of interest on this item as his firmed had
worked with the County of Orange this past year. ROLL CALL VOTE: AYES — 4: (Mayor
Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt). NOES — 0.
ABSTENTION — 1: Mayor Tait. Motion to approve carried.
AGR -8757 11. Approve the Temporary Construction Easement Agreement with Pan Fisher, LLC, in the
amount of $3,000, for the property located at 1120 North Brookhurst Street for the
Brookhurst Street Improvement Project (R/W ACQ2013- 00435).
D175 13. Approve a revised construction schedule for the Brookhurst Street North Project (from I-
5 to SR 91) from fiscal year 2014/15 to fiscal year 2015/16.
14. Approve and authorize the Executive Director of the Convention, Sports & Entertainment
AG -8758 Department to execute and take the necessary actions to implement and administer an
agreement, and any related documents, with Anaheim Transportation Network (ATN), in
an amount not to exceed $300,000, granting ATN the right to provide additional public
transportation services for attendees of events at the Anaheim Convention Center for an
estimated two year term.
AGR- 15. Approve the Capacity Option and Funding Agreement (Capacity Agreement) among
1683.IV Public Service New Mexico, PNM Resources Inc. (PNMR), PNMR Development and
Management Corporation, M -S -R (a joint power authority among Modesto, Santa Clara
and Redding), and the City of Anaheim and the Parental Guaranty Agreement of PNMR,
in substantial final form, the final form of which shall be conclusively evidenced by the
execution and delivery thereof by PNMR; and authorize and direct the Public Utilities
General Manager to execute the Capacity Agreement, with any revisions, modifications,
or amendments thereto that are in substantial conformance with the Capacity Agreement
as determined by the City Attorney's Office, and any other related documents, and take
any actions as are necessary, required, or advisable to implement and administer the
Capacity Agreement and the Parental Guaranty Agreement of PNMR.
17. RESOLUTION NO. 2015 -129 A RESOLUTION OF THE CITY COUNCIL OF
P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (City Deed Nos. 11782, 11785, 11793, 11794,
and 11798).
18. RESOLUTION NO. 2015 -130 A RESOLUTION OF THE CITY COUNCIL OF
P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (City Deed No. 11808).
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P110 19. RESOLUTION NO. 2015 -131 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM vacating Public Service Easement generally located at 701
East Cypress Street pursuant to California Streets and Highway Code Section 8330, Et
Seq. - Summary Vacation (ABA2014- 00290).
Council Member Vanderbilt reported he had a potential conflict of interest on this
item. ROLL CALL VOTE: AYES — 4: (Mayor Tait and Council Members:
Brandman, Kring and Murray). NOES — 0. ABSTENTION — 1: Council Member
Vanderbilt. Motion to approve carried.
P110 20. RESOLUTION NO. 2015 -132 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM declaring its intention to vacate certain public streets,
highways, and easements (Public alley at 1001 -1021 North Magnolia Avenue, extending
westerly from Magnolia Avenue to Felicidad Street) (Abandonment No. ABA2014- 00288)
(Public hearing scheduled for April 21, 2015).
21. RESOLUTION NO. 2015 -133 A RESOLUTION OF THE CITY COUNCIL OF
C340 THE CITY OF ANAHEIM adopting the Mitigated Negative Declaration and Mitigation
Monitoring Plan (No. 2015 -003) for the Windy Ridge Water Storage Tank Project and
making the required Environmental findings pursuant to the California Environmental
Quality Act (CEQA).
C410, 22. RESOLUTION NO. 2015 -134 A RESOLUTION OF THE CITY COUNCIL OF
C280 THE CITY OF ANAHEIM amending its Resolution No. 2014 -192, Nunc Pro Tunc, to
correct an inadvertent and clerical drafting error, relating to the approval and adoption of
an amendment to the Platinum Triangle Master Land Use Plan (Miscellaneous Case No.
2014 - 00593) (DEV2012- 00060B) (1015 -1105 East Katella Avenue).
ORDINANCE NO. 6319 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending Table 20 -D (Development Intensities: Platinum Triangle Mixed Use
(PTMU) Overlay Zone) of Section 18.20.040 (Development Districts) of Chapter 18.20 of
Title 18 of the Anaheim Municipal Code, Nunc Pro Tunc, to correct errors or omissions in
Ordinance No. 6309, previously adopted.
23. RESOLUTION NO. 2015 -135 A RESOLUTION OF THE CITY COUNCIL OF
C330, THE CITY OF ANAHEIM approving the Second Addendum to Previously - Certified Artic
M142 Environmental Impact Report No. 2010 -00343 for the Anaheim Regional Transportation
Intermodal Center (ARTIC) and determining that said addendum, together with other
previously- approved environmental documentation, serves as the appropriate
environmental documentation for the proposed ordinance establishing a Special Sign
District for ARTIC and the ARTIC Coordinated Sign Program.
ORDINANCE NO. 6320 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM adding Section 4.04.400 to Chapter 4.04 of Title 4 of the Anaheim Municipal
Code relating to the establishment of a Special Sign District for the Anaheim Regional
Transportation Intermodal Center (ARTIC) and amending Section 18.14.130 of Chapter
18.14 of Title 18 and Section 4.08.020 of Chapter 4.08 of Title 4 of the Anaheim
Municipal Code to be consistent with the addition of said new Section 4.04.400.
Adopt the Anaheim Regional Transportation Intermodal Center (ARTIC) Coordinated
Sign Program.
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M142 24. ORDINANCE NO. 6321 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending Section 1.04.395.040 of Chapter 1.04 of Title 1 of the Anaheim
Municipal Code (Exception to Limitations on City Board and Commission Service) and
Section 1.04.955.030 of Chapter 1.04 of Title 1 of the Anaheim Municipal Code
(Anaheim Sister City Commission -- Composition and Appointment of Members) relating
to appointments of Educational Sector Voting Stakeholder Members of the Sister City
Commission.
D117 25. Approve minutes of the Council meeting of February 24. 2015.
END OF CONSENT CALENDAR:
D116 5. Support the One Hundred Chances youth mentoring program developed by the Eli
Home's East Street Community Renewal Initiative.
Deputy City Manager Greg Garcia reported the One Hundred Chances youth mentoring
program, as proposed, would be operated by the East Street Community Renewal Initiative
(ESCRI) to offer internship and mentoring opportunities to 100 at -risk Anaheim youth as a
pathway to success. Before Council was a Letter of Support for the program and a commitment
from the city to work together with ESCRI in the establishment of the program. He commented
that the city supported efforts by the One Hundred Chances program to explore all grant funding
opportunities as well.
Council Member Murray thanked Lorri Galloway for her leadership, and ESCRI organization and
business leaders for their collaborative efforts in implementing this program, asking Ms.
Galloway to speak to the core objectives of this program.
Lorri Galloway presented a PowerPoint presentation, sharing the 100 Chances program offered
a unique and unduplicated mentorship program that focused on business opportunities for youth
and an opportunity to make a difference in their future. The program would provide tools for
education and employment to a group of teens ages 13 through 19 that were currently
underserved in Anaheim with local business owners or executive volunteering as mentors to
introduce those teens to the business world representing various industries or career fields.
Interns would learn about work responsibility, ethic, etiquette and the culture related to that
particular business and each person would have a chance to have a personal relationship with
business owners or executives. ESCRI, a program with the Eli Home, would screen prospective
interns and match participating businesses, offering support to both. The main objective of this
program was for a minimum of 75 percent of all interns having a continued success in a
particular business and to meet or exceed employability standards.
She spoke about Eli Home and its 32 year history in Anaheim remediating and preventing family
violence. ESCRI, a program which began in 2009, had a mission to prevent family violence by
educating and strengthening individuals and families and encouraging active productive family
and community involvement, focused on a three square mile blighted area in Anaheim. In
addition, ESCRI's collaborative partner RYTMO (Reaching Youth Through Music Opportunities)
offered programs on site at Eli's headquarters for the same demographic that 100 Chances
would impact. She pointed out this new program was in line with the needs outlined in the 2012
Anaheim Youth Services Assessment Report by the Olin Group that identified the teens as the
least served group by local programs. She thanked Council Member Murray who suggested the
city support this effort and had brought it to the attention of the City Council this evening.
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Evelyn Regara, 16 and a resident of Anna Drive, stated the One Hundred Chances program
would give teens a chance to get a job that now seemed out of reach to them.
Alyssa Chavez, 15, talked of the importance mentoring had made in her life.
Breanna, 12 and an Anna Drive resident, stated she had been part of ESCRI with many of her
friends and she hoped to have a chance to learn about business and what it took to be
employable.
Jocelyn Avalos spoke of her personal challenges with drugs and an unstable family life and how
ESCRI helped her overcome those challenges and to go forward in a positive manner. She
emphasized One Hundred Chances could give a girl an opportunity to change the way she was
viewed by others and she looked forward to getting that chance.
Jose Vargas, ESCRI Director, read Omar Alonzo's statement, remarking he lived in the East
Street area all of his life and was attending classes at Fullerton College. His goal was to
become a mechanic and own his own auto shop and he believed the One Hundred Chances
program was a way to achieve his goal.
Mike Anderson explained RYTMO was a music technology program and a way to reach out to
youths at risk and empower them to do something good in their life. Through their partnership
with Eli Home and ESCRI, and having more Anaheim businesses reaching out as role models,
he felt there would be new opportunities for Anaheim's at -risk youth with the One Hundred
Chances program and offered RYTMO's full support.
Council Member Murray thanked everyone for participating, including the young women who
spoke so movingly about their personal situations. She emphasized that mistakes made in life
did not define who you were and that this program would ensure these teens were valued. She
noted the Visitors & Convention Bureau, the Anaheim Chamber of Commerce, the Hoteliers
Association, and the Taormina family expressed an interest in participating in the One Hundred
Chances program and moved to support the One Hundred Chances youth mentoring program
developed by Eli Home's East Street Community Renewal Initiative 5, and for the city to offer
resources, time and dedication to this program as well as a letter of support to ACT. She also
requested a presentation or workshop on ACT in the future and information on the program
linked on the city's website for interested persons.
DISCUSSION: Council Member Vanderbilt remarked that in his experience, proclamations or
resolutions of support carried more weight, asking why a letter of support from the city was
recommended. Mr. Garcia responded many organizations had asked for the city's support for
their mission with assistance sometimes provided by staff regarding shared goals and
objectives. In this instance, a letter of support was thought to be more helpful at the start -up of
a new organization. Mr. Vanderbilt added there were a number of organizations that addressed
Anaheim's at risk youth, such as Eagle Scouts, Assistance League, Cops4Kids, YMCA, Boys
and Girls Club and more, all engaged in activities to address the needs outlined in the youth
assessment document. He asked if there was any broader consideration about offering support
under an umbrella resolution identifying as many organizations as possible in a more uniform
manner. Mr. Garcia responded, that this agenda item had been generated at the request of a
Council discussion at the previous meeting to specifically identify this program and offer support
on behalf of the City Council and to provide background and specific support on the mission.
Mayor Pro Tem Kring emphasized there was a need for at -risk youths services that adding ten
more programs would not satisfy that need and she viewed this organization as completely
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different from others and would lend her support to another avenue for those who were
underserved and needed a helping hand. Mr. Vanderbilt indicated when he was first elected he
had met with Disney and discussed this particular issue, expressing the hope there would be a
system of consolidation or collaboration and that the city and business efforts component would
be reviewed and evaluated in order to improve going forward. He was appreciative to hear
during the presentation that the One Hundred Chances program had outlined specific metrics to
determine how the program was performing. Mayor Pro Tem Kring added that having all these
programs come under an umbrella organization would make the process unwieldy and difficult
to manage, as they were specifically focused programs. Mr. Vanderbilt then asked if this action
could put the city in a position of having to determine which organization merited a letter of
support. Council Member Murray responded the city provided resources to many organizations
across the city with varying levels of support based on their need, and had done so for decades.
In this instance, the letter of support was not to the exclusion of any other organization, it was in
recognition of a new program that would serve 100 youths in the first year and had the city's
support behind it, and was not reflective of an either /or situation.
Mayor Tait explained that he had some concerns as well about the letter urging ACT to support
One Hundred Chances. He emphasized that his statement should not be taken as an negative
against the Eli Home and ESCRI, it was solely against specifying that one organization merited
ACT's support. He would rather see ACT rely on their internal processes that were merit based
and non - political and make funding selections based on certain criteria and metrics. Mayor Pro
Tem Kring suggested eliminating that statement from the letter of support with Council Member
Murray disagreeing and explaining she would like the letter to remain as presented. Mayor Tait
pointed out there was an extensive process to vet non - profits through the CDBG grants, a
funding option which was open to Eli Home and ESCRI as well. Council Member Murray stated
this action to support One Hundred Chances was not out of the ordinary and she would like the
Letter of Support to remain unchanged with the decision to fund or not left up to ACT.
Mayor Pro Tem Kring moved to call the question and end debate, seconded by Council Member
Murray. ROLL CALL VOTE: AYES — 3: (Mayor Pro Tem Kring and Council Members
Brandman and Murray.) NOES — 2: Mayor Tait and Council Member Vanderbilt. Motion to call
the question failed (not meeting 2/3 requirement for approval.)
Council Member Murray moved to approve Agenda Item No. 5, 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. Motion Carried.
AGR -8756 8. Approve the Canine Transfer Release & Agreement to Indemnify, Defend and Hold
Harmless authorizing the transfer of ownership of retired Police Service Dog Cisko to
Officer Brian Bonczkiewicz.
Mayor Pro Tem Kring remarked Cisko, Police Service Dog, would be retiring and would now
reside with his handler, Officer Brian Bonckiewicz. Police Chief Quezada introduced Cisko and
Officer Brian Bonckiewicz, explaining that Cisko had reached the end of his seven year service
career and was now retiring after assisting in 300 arrests, serving on the SWAT team, and
responsible for finding $4.2 million worth of drugs.
Council Member Brandman moved to approve Item No. 8, seconded by Mayor Pro Tem Kring.
ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray
and Vanderbilt). NOES — 0. Motion Carried.
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AGR- 7307.1 9 . Approve the First Amendment to Agreement with Championship Golf Services to provide
additional compensation, in the amount of $45,753 in fiscal year 2014 -15 and $68,615 in
fiscal year 2015 -16, for increased labor costs resulting from State and Federal legislation
that has been enacted since the beginning of this agreement for the operations of the
Dad Miller and Anaheim Hills Golf Courses.
Community Services Director Terry Lowe reported this item was to consider an amendment to
an existing agreement for golf course operations in Anaheim and was proposed to cover
compensation for increased labor costs resulting from state and federal legislation that was
enacted since the agreement was implemented. He added that in November 2011, as the result
of an RFP process, Council had approved a five year agreement with Championship Golf to
provide all professional services at the courses including staffing operation and golf shops,
driving ranges, golf school, marshalling and starter services, as well as the operation of food
and beverage service at Dad Miller.
This agreement was written with a fixed management fee with the majority of the compensation
to Championship coming from revenue sharing or green fees, cart rentals, golf lessons, the
driving range, and other related sources. He noted under the existing terms of the agreement
any cost adjustments were based solely on the Consumer Price Index (CPI) for the Orange
County area and in 2011 when the contract was implemented, the city was not aware there
would be legislation to increase minimum wage and the subsequent health care legislation that
had also become a financial impact to the provider. Mr. Lowe explained these mandates
resulted in increased payroll costs far exceeding the cumulative 2.4 percent CPI adjustment that
was allowable under the agreement and put Championship Golf in an unsustainable financial
position. He added Championship had provided excellent service during the last three years
and staff was recommending revising the agreement to allow for the pass- through of additional
unavoidable costs resulting from government mandates.
Ms. Ayuso, Purchasing Agent, remarked this was a multi -year contract based on a minimum
management fee with a percentage of the compensation going to the contractor based on
revenue sharing. The need for cost adjustments during the multi -year agreement was
recognized and staff had used the CPI index, however, she pointed out, the $2 /hour minimum
wage increase in July 1, 2014 had not been anticipated and reflected at 25 percent increase
which far exceeded the 2 percent CPI index and put Championship in a negative position. The
Affordable Health Care Act impacted their bottom line as well. She emphasized the company
shared payroll costs, documented salaries along with the cost impacts and staff amended the
contract language to allow the provider to pass through those increases on a dollar for dollar
basis.
In addition, she pointed out, in 2013 when the state announced the two minimum wage
increases that would be forthcoming, staff began modifying bid documents for service providers
in general to offer a more equitable cost adjustment in recognition that the CPI Index would
likely be exceeded because of the poor economy and the low CPI Index over the past three to
four years. Council Member Vanderbilt appreciated staff's proactive stance in amending those
future contracts.
Mayor Tait expressed his concern about who would bear the risk and whether the contract had
a provision that if the minimum wage increased, the city would bear the risk. Absent that, he
understood the reasoning behind the amendment, but was concerned about setting a precedent
for contractors who bid a job based on a fixed amount adding there could be any number of
governmental actions that could increase costs and whether or not the contractor could meet
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obligations and make money, should not be the city's concern. For that reason he would vote in
opposition to this amendment.
Mayor Pro Tem Kring announced that whether the contract was rebid now or later, it would be
rebid at a higher cost and her preference would be to retain the current contractor who had
performed well and offered his employees a good wage with health care benefits and she would
support this as an equitable and responsible amendment. Council Member Murray thanked staff
for finding a reasonable compromise and a thoughtful approach, remarking she would be
supportive as well. Mayor Tait indicated if there was a force majeure clause in contracts, and
something unexpected happened, the contractor or the city could cancel the contract and rebid
it and to him that was the remedy for the current situation with Championship Golf.
Mayor Pro Tem Kring moved to approve Item No. 9, seconded by Council Member Murray.
ROLL CALL VOTE: AYES — 4: (Mayor Pro Tem Kring and Council Members Brandman, Murray
and Vanderbilt.) NOES — 1: Mayor Tait. Motion Carried
AGR- 12. Approve the Fourth Amendment to Agreement with David Taussig & Associates, Inc., in
4129.4 the amount of $150,000, for special tax assessment services involving the Community
Facilities District formation and Assessment Districts for the Platinum Triangle area,
bringing the total not -to- exceed amount to $415,000.
Council Member Vanderbilt asked if a 50 percent majority plus one was needed to establish this
Community Facilities District (CFD) to assess a special tax on the properties involved. City
Attorney Michael Houston indicated the process was established by the State Constitution but
there was one distinction, a CFD vote was dependent on the number of property owners in the
area as well as residents. He added, at the time the Platinum Triangle CFD was approved,
there was no public vote requirement by the electors. He further added the population in the
CFD at this point would require a different type of vote be held; and as far as Council's voting
threshold to place such a matter before the voters, it would have been a simple majority. Mr.
Vanderbilt asked if the Council affirmed the proposed measure being considered, a 2/3
threshold vote, would any future circumstances such as the action before council this evening
require a 2/3 approval. Mr. Houston responded that to place an item on the ballot for taxing
purposes, a 2/3 approval would be required in that instance; however this specific item was
simply a contract amendment.
Council Member Vanderbilt remarked he pulled this item as he thought it would be helpful for
the upcoming discussion and appreciated the clarification.
Mayor Tait requested details on the $150,000 amendment with Ms. Meeks responding it was for
on -going costs on a time and materials basis and included extending the time frame of the
contract. She added that the development plans in the Platinum Triangle were changing
significantly from the original proposals from 2006 which necessitated adjustment of the CFD
revenue projects and revenues created from that tax to adjust the city's infrastructure plan
accordingly and spread the costs out over time. She remarked the tax rates were established
and would not change and billing occurred on a time and materials basis.
Mayor Pro Tem Kring moved to approve Item No. 12, seconded by Council Member Murray.
ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray
and Vanderbilt). NOES — 0. Motion Carried.
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AGR -8759 16. Approve and authorize the Public Utilities General Manager, or designee, to execute and
take the necessary actions to implement and administer an agreement, and related
documents, with the MUZEO Foundation, in an amount not to exceed $40,000, to
provide educational and artwork -based utility programs for one year with the option for
three consecutive one year extensions.
Council Member Vanderbilt asked if there were opportunities to add performance metrics to the
contract or to at least have the contractor identify a number of participants in the program or
identify where funds were being spent. Dukku Lee, Public Utilities General Manager, remarked
that in Public Utilities, there were metrics in place for most everything but in this case, the
number of contacts and outreach efforts to schools, public and private, could be identified,
however, participation was on a voluntary basis. Council Member Vanderbilt pointed out this
agreement was a change for the department from doing some of the efforts in house and
accounting for it in an annual report. He hoped the contract included language asking the
contractor to collect data and provide it so staff could be aware of the program's success and
make revisions to it if needed. Mr. Lee responded the department always looked at participation
levels, adding there were over 40 programs related to conservation annually and he would do
his best to quantify outreach efforts and numbers of students notified about each program.
Mayor Tait asked if the Muzeo was selected through an RFP process with Mr. Lee responding it
was not, because these were educational programs and staff considered a variety of methods
including whether or not other nonprofits could participate. He felt the value of working with the
MUZEO was to have artwork displayed in the lobby for the water poster contest, digital hearts
contest, and artistic painting on out of service fire hydrants. He noted in the past the
department contracted with MWDOC for educational programming services. Mayor Tait
indicated he would not support this annual program with extension recommending that an RFP
process be used or possibly working with the school districts directly. He added the MUZEO
was already getting $250,000 a year from the city for its operation and this would add another
$40,000 and he felt other art organizations should have been given a chance to participate.
Council Member Murray moved to approve Item No. 16, seconded by Council Member
Brandman. ROLL CALL VOTE: AYES — 3: (Mayor Pro Tem Kring and Council Members
Brandman and Murray). NOES — 2: Mayor Tait and Council Member Vanderbilt. Motion
Carried.
26. Consider an appointment to the Cultural & Heritage Commission to fill an unscheduled
B105 vacancy, term ending June 30, 2015.
Cultural & Heritage Commission
Appointment: Patricia Adelekan
(unscheduled vacancy of Ryan A. Ruelas)
Mayor Pro Tem Kring nominated Kathleen Courture and Council Member Murray nominated Dr.
Patricia Adelekan for the position. ROLL CALL VOTE for Kathleen Courture: AYES — 2: (Mayor
Pro Tem Kring and Council Member Vanderbilt.) ABSTENTION — 3. (Mayor Tait and Council
Members Brandman and Murray).
ROLL CALL VOTE for Dr. Patricia Adelekan: AYES — 5: (Mayor Tait and Council Members:
Brandman, Kring, Murray and Vanderbilt). NOES — 0. Dr. Adelekan was unanimously
appointed to the Cultural and Heritage Commission.
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Mayor Tait requested Dr. Pat Adelekan highlight her experience at the historic march for civil
rights with Dr. Martin Luther King. Dr. Adelekan explained she lived in Columbus, Ohio as a
young girl and in 1963 Dr. King's supporters asked for volunteers from Columbus to organize for
the DC civil rights demonstration. She sat in one of two busses that traveled to Washington DC
all night explaining she would never forget everything that happened on that day.
B137.1 27. RESOLUTION NO. 2015 -136 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM (i) approving the issuance of not to exceed $50,000,000 aggregate
principal amount of Revenue Bonds, Series 2015 -A (City of Anaheim Electric System
Distribution Facilities) (Second Lien Qualified Obligations) of the California Municipal
Finance Authority; (ii) approving the forms and authorizing the execution of an
Installment Purchase Agreement, an Indenture of Trust, a Continuing Disclosure
Agreement, a Purchase Contract, a Remarketing Agreement and other related
documents; (iii) approving the delivery of an Official Statement; and (iv) approving
certain actions in connection therewith.
RESOLUTION NO. 2015 -137 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM (i) approving the issuance of not to exceed $240,000,000
aggregate principal amount of Revenue Refunding Bonds, Series 2015 -B (City of
Anaheim Electric Utility Distribution System Refunding and Improvements) of the
California Municipal Finance Authority; (ii) approving the forms and authorizing the
execution of an Installment Purchase Agreement, an Indenture of Trust, an Escrow
Agreement, a Continuing Disclosure Agreement, a Purchase Contract and other related
documents; (iii) approving the delivery of an Official Statement; and (iv) approving
certain actions in connection therewith.
28. RESOLUTION NO. 2015 -138 RESOLUTION OF THE CITY COUNCIL OF THE
B137.1 CITY OF ANAHEIM (i) approving the issuance of not to exceed $120,000,000 aggregate
principal amount of Revenue Bonds, Series 2015 -A (City of Anaheim Water System
Project) of the California Municipal Finance Authority; (ii) approving the forms and
authorizing the execution of an Installment Purchase Agreement, an Indenture of Trust,
an Escrow Agreement, a Continuing Disclosure Agreement, a Purchase Contract and
other related documents; (iii) approving the delivery of an Official Statement; and (iv)
approving certain actions in connection therewith.
Item Nos. 27 and 28 were presented concurrently: Dukku Lee, Public Utilities General
Manager, reported the Public Utilities Department provided water and electricity to about
350,000 residents and 15,000 businesses and that it took a significant investment in capital
infrastructure and the use of a variety of funding mechanisms to pay for the required investment.
One of the tools used was low interest municipal bonds which allowed the city to collect the cost
of that investment asset across the life of the asset. Without access to bonds, he remarked, the
city would have to collect cash from today's customers to pay for improvements in a 100 year
old utility which would most likely require rate increases or depletion of financial reserves.
Bonds smoothed out the cost of the asset across their life without the need for significant and
volatile rate increases. In addition, he emphasized, the current interest rates had never been
lower; for example, bonds issued three years ago at 5 percent would be issued today at 3.5
percent. He stated the use of bonds for utility infrastructure was used throughout the industry
and credit rating agencies affirmed current ratings based on Anaheim's use and access to
bonds. Mr. Lee indicated the department looked for the most opportune times to refund bonds
and save money as well and thanked Council for approving a prior refunding last year that
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would save about $45 million and reduce a bond term by nine years. He stressed that these
types of financial strategies helped the city maintain utility rates for its customers 20 percent
lower than others.
On the agenda for consideration, was the approval of three items to take advantage of the
current low interest rates.
• The first action would issue fixed rate 30 year bonds for the water system in an amount
not to exceed $120 million with $40 million of that amount used to fund new infrastructure such
as water mains and storage tanks and the remaining funds used to refinance more expensive
debt. The refinancing was expected to save customers about $10 million over the remaining
term of the bonds. This action would also reduce the average interest rate to 3.6 percent
(currently the average interest rate paid on all water bonds was approximately 4.3 percent).
• Secondly, staff was requesting to issue a fixed rate electric bond in an amount not to
exceed $240 million, with only $35 million of that amount going toward new debt to fund capital
programs. The remaining $205 million would be used to refinance more expensive existing debt
and would shorten the term of existing bonds by 4 years and drop the respective interest rates
allowing customers to save about $26 million over the remaining term of the bonds.
• The third action was a request to approve issuance of $50 million in floating rate notes to
partially fund the electric capital program. Currently, he stated, a three year floating rate note
had an interest rate of 0.4 percent which was almost ten times Tower than the current 30 year
fixed rate debt. By issuing floating rate notes, the city could take advantage of incredibly low
interest rates and use those savings to pay off more expensive debt faster, and continuing to
strengthen the balance sheet as was done in 2014. He noted if there was a sudden spike in
interest rates, the city would always have the option to take these notes out with a fixed rate
debt and if there was a gradual increase in the interest rates, there would be cash reserves that
would have a corresponding increase in interest earnings. He stated it was important to note
that over the past five years the average rate for these instruments had been approximately 0.5
percent. The $50 million amount, Mr. Lee explained, was based on a prudent 10 percent of the
city's portfolio, adding that some utilities had as much as 75 percent of their portfolio in variable
debt but balanced that with huge cash reserves as their hedge. The combination of refinancing
and new fixed and variable electric debt was projected to save over $80 million as compared to
remaining on conventional 30 year bonds.
Ending his presentation, he indicated staff believed the market would not offer interest rates this
low for much longer and that taking advantage now would ensure the savings would be
available on current debt and the city would continue to invest in a nationally recognized system
while following council's direction to be sensitive to customers' utility rates.
Mayor Tait thanked Mr. Lee for the earlier briefing, remarking that it appeared the city was
protected in both cases. He inquired if staff stress - tested this theory assuming interest rates
increased to 10 or 12 percent or dropped below what it was. Mr. Lee responded there was a
moderate level of risk but because there were hedges in place, he believed it was a managed
risk and a small piece of the portfolio was involved. He indicated there were significant savings
to be had by taking this type of approach and these types of instruments were advantageous for
utility customers in the long run.
Mayor Pro Tem Kring moved to approve RESOLUTION NO. 2015 - 136 OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM (i) approving the issuance of not to exceed $50,000,000 aggregate
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City Council Minutes of March 17, 2015
Page 16 of 17
principal amount of Revenue Bonds, Series 2015 -A (City of Anaheim Electric System
Distribution Facilities) (Second Lien Qualified Obligations) of the California Municipal Finance
Authority; (ii) approving the forms and authorizing the execution of an Installment Purchase
Agreement, an Indenture of Trust, a Continuing Disclosure Agreement, a Purchase Contract, a
Remarketing Agreement and other related documents; (iii) approving the delivery of an Official
Statement; and (iv) approving certain actions in connection therewith;
and to approve RESOLUTION NO. 2015 -137 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM (i) approving the issuance of not to exceed $240,000,000 aggregate
principal amount of Revenue Refunding Bonds, Series 2015 -B (City of Anaheim Electric Utility
Distribution System Refunding and Improvements) of the California Municipal Finance Authority;
(ii) approving the forms and authorizing the execution of an Installment Purchase Agreement, an
Indenture of Trust, an Escrow Agreement, a Continuing Disclosure Agreement, a Purchase
Contract and other related documents; (iii) approving the delivery of an Official Statement; and
(iv) approving certain actions in connection therewith, seconded by Council Member Murray.
ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray
and Vanderbilt). NOES — 0. Motion Carried.
Council Member Brandman then moved to approve RESOLUTION NO. 2015 -138 OF THE
CITY COUNCIL OF THE CITY OF ANAHEIM (i) approving the issuance of not to exceed
$120,000,000 aggregate principal amount of Revenue Bonds, Series 2015 -A (City of Anaheim
Water System Project) of the California Municipal Finance Authority; (ii) approving the forms
and authorizing the execution of an Installment Purchase Agreement, an Indenture of Trust, an
Escrow Agreement, a Continuing Disclosure Agreement, a Purchase Contract and other related
documents; (iii) approving the delivery of an Official Statement; and (iv) approving certain
actions in connection therewith, seconded by Mayor Pro Tem Kring.
ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray
and Vanderbilt). NOES — 0. Motion Carried.
REPORT ON CLOSED SESSION ACTIONS:
Michael Houston, City Attorney, reported on Closed Session Item No. 2 stating the City Council
authorized initiation of litigation on a 4:0:1 vote with Mayor Tait abstaining due to a reported
conflict. The parties, the matter and other particulars would be disclosed once action
commenced.
COUNCIL COMMUNICATIONS:
Mayor Pro Tem Kring reported she traveled to Washington, DC and also attended the grand
opening of John Marshall School. She congratulated Natalie Meeks, Public Works Director, on
her recognition from the American Society of Civil Engineers and announced the grand opening
of the Dog Park held on March 7, the volunteer recognition luncheon on March 18, the ground
breaking of the Convention Center's seventh expansion on April 21, and the 13 MEU 5K Run
on March 21. She responded to comments regarding the homeless and stated the Homeless
Task Force had counselors involved in their program and also stated members of the SOAR
Advisory Committee did not receive compensation from Disney Corporation.
Council Member Vanderbilt reported his attendance at the North Orange County Community
College District meeting and congratulated Jackie Rodarte on her appointment as Trustee. He
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requested staff prepare Council letters of support for the following organization: GOALS, Boys
and Girls Club of Anaheim, Community Services Program, GRIP, Girls Incorporated of Orange
County, Western Youth Services, Big Brothers and Big Sisters of Orange County, Anaheim
Family YMCA, Tiger Woods Foundation, Orange County Congregation Community Organization
and Taller San Jose.
Council Member Murray wished everyone a Happy Saint Patrick's Day and congratulated the
Canyon High School's Boys Varsity Basketball for its CIF Division 2AA Championship. She
announced the volunteer recognition luncheon on March 18, congratulated Paul Andresen,
President of YMCA, and Don Calkins, Assistant General Manager, on their retirement and
thanked them for their service. She also congratulated Natalie Meeks, Public Works Director,
on her recognition from the American Society of Civil Engineers and Dr. Patricia Adelekan on
her appointment to the Cultural and Heritage Commission. She spoke of Cash for K9s
fundraising for the K9 monuments.
Council Member Brandman thanked Don Calkins, Assistant General Manager, for his service
and congratulated Natalie Meeks, Public Works Director, on her recognition from the American
Society of Civil Engineers. He spoke of his attendance to the Kiwanis of Greater Anaheim
breakfast and requested staff display the gift received from the Kiwanis. Mr. Brandman also
requested staff develop a plan that would consider local student feedback to be incorporated in
a sustainability and greenhouse reduction plan for Council consideration.
Mayor Tait congratulated the Canyon High School's Boys Varsity Basketball on their CIF
Division 2AA Championship. He spoke of his attendance at the Orangeview Junior High
School's kick -off of their Month of Kindness and his participation in the Meals on Wheels
program. He also spoke about a recent contract entered into with Charles Black relating to the
Angels negotiations and requested staff return to Council with a report to consider the hiring of
Wylie Aitken, in lieu of.
ADJOURNMENT:
At 8:50 P.M., with no other business to conduct, Mayor Tait adjourned the March 17, 2015
council meeting.
spe, tfully submitted,
1
(6(C,
Linda N. Andal, CMC
City Clerk
17