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05/09/2017ANAHEIM CIN COUNCIL REGULAR MEETING OF MAY 9, 2017 The regular meeting of May 9, 2017 was called to order at 3:07 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 May 5, 2017. PRESENT: Mayor Tait and Council Members Vanderbilt, Murray, Kring, Moreno, Barnes, and Faessel. STAFF PRESENT: City Manager Paul Emery, Acting City Attorney Kristin Pelletier, and City Clerk Linda Andal. FISCAL YEAR 2017/18 PRELIMINARY BUDGET WORKSHOP (Citywide Overview and Administrative Departments) City Manager Paul Emery introduced the workshop stating this was the first of four Council workshops relative to the FY 2017/18 budget and announced six additional District meetings will also be held for the public. Finance Director Debbie Moreno introduced members of her team who were instrumental in putting the budget and related documents together — Jean Ibalio, D'Anne Lee, Tania White, Julia Davis, Linda Tang, and Luke Smude. She stated that the presentation will provide a citywide overview and preview of the administrative departments and the remaining three workshops will be a presentation from each of the operating departments. She would provide an economic outlook at the national, state, and local level, share the FY 2017/18 citywide preliminary budget, an overview of the General Fund, presentation of the FY 2017/18 preliminary budget for the Administrative Departments, and conclude with ways the public can participate in the budget process. Ms. Moreno shared that the U.S. economy continued to grow moderately and there was no recession in sight; GDP was expected to continue to grow in 2017 by 2.3% and by 2.6% in 2018; consumer confidence was at the highest levels since the early 2000's and the labor market was expected to remain robust in 2017 and 2018 with unemployment dropping to 4% next year; and California continued to experience steady but somewhat slower job growth in 2017. As the state nears full -employment, there was less room for significant growth in jobs. Unemployment has declined to 4.9%, which is the lowest since December 2006. Personal income continued to increase in California and was expected to increase further in 2017 and 2018. Demand for housing and commercial space across the state was attributed to increased growth in the construction sector. Orange County remained one of the strongest economies in the state. Growth in the leisure sector was expected to moderate after years of significant growth. Airline passenger counts at Orange County's John Wayne Airport were at record levels and visitor attendance at local theme parks were at all-time highs. A potential slowdown in international travel may occur due to travel restrictions and the strength of the dollar so leisure growth was expected, but not at the rate we have seen recently. The construction sectors continued to experience significant momentum on the building front with many hotels and office space construction in the development pipeline. Orange County has reached full employment and the current unemployment rate is 3.7%, which is the lowest in southern California. The housing market was strong with home prices and rents continuing to rise. Rents were up 21 % since 2012 and home prices were up 5.7% year -over -year in February. City Council Minutes ofMay 9,2D17 Page 2 of 22 yNa. Moreno shared Citywide uses for the FY2O17/18preliminary budget totaled $1.9billion, which was edecrease of296from the PY2O1O/17adopted budget. She presented achart that reflected the largest share of spending was within funds that, by their nature, were restricted to specific activities. Enterprise funds make up4396nfall citywide uses. The enterprise group included the Water, Electric and Sanitation Utilities, golf courses, ARTIC, and the Convention, Sports and Entertainment venues. Capital Projects, Special Revenue, Internal Sen/ice. Debt Service, and Fiduciary funds also utilized funds that were restricted for aspecific purpose and were not available tofund general city services. She stated that what remained was the General Fund, which made up2196nfbudgeted uses. She further stated that the General Fund was the main repository of tax revenues and discretionary sources Vffunding. The largest source ofrevenue is Transient Occupancy Tax (T[)T)at3Q96ofthe total. Sales and Use tax generated 21Y60fthe total and property tax made up 18%. Business license, fees and permits, transfers from other funds, and other revenues made upthe remaining 2296. Tax revenues made up8O96ofthe total General Fund sources and include the "Big Three" revenues, which included TOT, sales, and property taxes together with business license and property transfer taxes. Ms. Moreno continued that the TOT tax was 15% of the room rate for stays of less than 30 days. The tax was locally controlled and the Cib/ received 100%. Anaheim has 20.000 hotel Foo0s, which means there were over million room nights available per year. She stated that last year, the City had anoccupancy rate Ofapproximately 8OY4.which meant there were 0million room nights occupied. She shared ochart which illustrated the TOT budget. She anticipated ending the current fiscal year at $148.1 million, which was about 796 over the previous year, but was slightly under budget. For FY 2017/18, the preliminary budget ia$155.6million, which iaa 5% increase from the current year projections. In the economic outlook section, local tourism remains strong and with the completion of the Convention Center expansion, expecting continued growth inthe coming fiscal year. Growth inthe five-year plan moderates inthe out years, with increases ranging from 496 inYear 2tn2Y6 inYear 5' Sales and Use Tax was the second largest source ofrevenue and made up21%ofthe General Fund revenue sources. The tax rate inAnaheim ig7.75%ofretail sales, ofwhich the City receives 1 cent Ofevery dollar spent in Anaheim. Taxes are collected by the State and paid to the City quarterly. Ms. Moreno further stated that nearly 30Y6 carne from natoi) and the remaining 70% was almost equally shared among the food, transportation, construction, and business -to - business categories. Sales tax growth moderated inFY1tV17with small declines iVretail sales and transportation. Automobile sales were not enough 10offset the declines associated with lower gas prices. We expect sales tax revenues to be just slightly above the budgeted growth of 1.8%. The proposed budget includes growth of 4% from the current year, led by increases in food sales, construction, and busiOems-to-bWsinemssales. Growth was expected tocontinue inthe 3'4%range throughout the five-year plan. Last of the Big Three was property taxes at 18% of the General Fund revenue sources. All real and tangible personal property in the State is subject to a property tax equal to 1 % of its "full cash value." The city receives a portion equal to approximately 2096 of the 196 basic levy tax nate. For example, Uahome has anassessed value ¢f$45O,OOO.the 196basic levy would be$4.5OOand the City would receive approximately 2O96ofthat, or$SUO.The balance isshared among other local taxing entities, including the Countv, schools, and special districts. Adopted property tax revenues were budgeted to increase by 4% over last year. Revenues were trending |nline with the adopted budget and were expected 1obeontarget atye@peOd. We City Council Minutes of May 9, 2017 Page 3ofZ2 anticipate property taxes bzgrow another 4Y6next year before moderating and settling at statutory |ewo|m of 2% in the last years Vfthe five-year plan. Ms. Moreno stated that the General Fund uses included services, economic development, debt service, and capital outlay. The portion was services o179Y6. Services included labor or personnel coatG, including full-time, part-time and all related benefit costs, aawell as other operating expenses including office supplies, equipment maintenance, contract services, and other 'operabng'type expenditures. Debt service expenditures represented the repayment of principal and/or interest oDborrowed funds and made up2O%mfthe General Fund uses. The majority of debt service was transferred out and paid through restricted debt service funds and was largely related tnthe Resort bonds and Convention Center expansions. Capital outlay represented the purchase of office equipnoent, furDiture, computer handvvana, and vehicles that were funded by unrestricted sources and made up less than 1 % of General Fund uses. The remaining 196was used for economic development programs including economic incentive agreements and activities designed to grow the economic engine of Anaheim. In response to Council Member Moreno's question regarding debt service, Finance Director Moreno reported the biggest fees of the debt service were related to the resort bond, which was paid with the Lease Payment Measurement Revenues and was aformula based onthe amounts received bythe City for certain revenues. Additionally, there were increments above the 18S5 base onDisney properties for TOT sales and property. The latter was required b«bond indenture tobeput away, with the trustee, 10pay the debt service aeitbecomes due. The City ieputting away the minimum required to service debt and the amount for the debt service is typically |eeo than the amount the City puts away. In response to Council Member Faessel's question, Finance Director Moreno confirmed that fund would normally be expected to have some funds remaining and added the City was well -funded in terms of the debt oen/ina. Ma. Moreno shared a slide that highlighted theoenvi:ea portion and provided adetaikad breakdown hvfunctional group. Ofthe services provided tothe Anaheim community, the largest share related to"Keeping UsSafe" and included Police and Fire. Departments focused oO ensuring the quality Oflife made up17%ofthe Services slice. Public Works and Public Utilities maintain our infrastructure and make up 796 of General Fund services. The remaining 1096 was associated with administrative departments who ensure that operations are supported effectively and efficiently. As on example, K8m. Moreno shared for every $1 of the General Fund, 58.8 cents pay for salaries and benefits of city employees who help provide the day-to-day services that keep Anaheim running. The remaining 41.2 cents make upother costs, including 1A.Bcents for Resort and Convention Center debt service, 8.2 cents for equipment and maintenance, and 6.0 cents for rent and utilities. The preliminary budget included a full-time complement of 1,930 full-time positions across all funds. She stated that the City was focused on maximizing efficiencies and resisting the temptation toexpand the workforce intimes ofprosperity. New positions added inrecent years have been limited to the provision of public safety services, including the Council's "40 in 4" Ms. Moreno shared ochart that shows staffing levels bydepartment since 2008/09, which represented the high pointCfpmsKioncount, and the change since that time. The proposed count for FY2O17718is1'93O.which represented nochange from the current year. |tmay beincreased by 10 in the Police Department if Council continued with the final 10 officers under the "40 in 4" initiative. Of the 1.134full-time staff supported bythe General Fund, 52% were sworn police officers or firefighters. The remaining 544. or 4896' included professional staffing such as City Council Minutes of May 9, 2017 Page 4 of 22 engineers, analysts, and attorneys; Police and Fire professional staff; librarians and community services staff; as well as clerical and administrative support. In reply to Council Member Faessel's question, Finance Director Moreno confirmed 1,930 were authorized and funded positions. At any given time, the City typically runs about a 5% vacancy factor citywide. Council Member Moreno noted the Community Services Department had taken the greatest "hit" in terms of staffing and asked where losses were experienced within each department. Finance Director Moreno referenced summaries containing that information and reported she would share it with Council. She added staff was only addressing full-time positions and, although data regarding part-time positions was typically not tracked, staff could certainly do so. Ms. Moreno shared the preliminary five-year plan for FY 2017/18 stating the preliminary budget was balanced, but with no room for additional enhancements beyond what was anticipated last year. She further stated that this was the second year where we have been just at projections from the FY 2015/16 five-year plan. Revenues continued to grow, but were insufficient to keep pace with increasing expenditures, of which the primary cause was the change in the PERS discount rate resulting in higher PERS obligations. These increases ranged from $1.1 M in FY 2018/19 to $8.5M in FY 2021/22. Mayor Tait expressed concerns the City would be operating a deficit by having to pull off already - low reserves. Finance Director Moreno stated staff would continue monitoring revenues, expected there would be additional expansions of resort -area businesses that could produce additional revenues in the out years, and would be working with all departments to find additional efficiencies. Mayor Tait felt the City made a mistake in budgeting spending reserves; noting reserves were for unanticipated circumstances. Finance Director Moreno reported staff was not advocating spending reserves, but given the service levels existing today and associated costs, this was what the five-year plan looks like. Mayor Tait suggested including information on the budget presentation that stated the data presented assumed the current service levels. In response to Council Member Faessel's question, Finance Director Moreno reported historically, the City has not furnished anything below 7%, and has increased to a high of 12% over the last few years and has changed to approximately 11 % of expenditures ($33 million). Over the last few years, the City has been able to restore reserves. She added in 2007, the City was purposefully drawing from reserves for one-time projects because it was believed they were higher than they needed to be. In reply to Mayor Tait's comment, Finance Director Moreno stated expenditures do not include debt. She stated the difference between expenditures and uses was transfers and the clear majority of that are LPMR payments, which has its own reserve built in. Mayor Tait commented on the General Fund and noted the Municipal Finance Association's recommendations for reserves was two months (18% to 20%). Council Member Murray asked whether increases in TOT were expected through the opening of Star Wars Land. Finance Director Moreno stated there was nothing significantly built in for that because staff was waiting for additional supply to come on -board. Finance Director Moreno reported the City has traditionally not shown additional TOT for hotels currently under construction and what was projected for the out years could change. New adjustments for PERS were also not reflected in the information. Mayor Pro Tem Vanderbilt referenced the economic outlooks and asked whether revenues projected in the next five years anticipated potential recessions. Finance Director Moreno stated that would be premature but, also, they do not include expected TOT from large resort City Council Minutes ufMay 9,2017 Page 5cf22 expansions, which will mitigate any recession in the coming years. In response to his question regarding the reason behind areduction inTOT projections betveen|maiyaorand1hiayearof$8 million, Finance Director Moreno reported the reason was because the City was starting to max out VOoccupancy, adding the City hit 92%occupancy inJuly. Council Member Kring reported the Anabella Hotel (4 Diamond) would break ground in August and listed other hotels coming on -board as well as the expansion of the Convention Center and the opening ofStar Wars Land. Adding all ofthat into the mix, Council Member Kringopined the City would be just fine. Council Member Moreno looked forward todiscussions Vnwhether the City budgets on projections or on historical trends. In response to his question, Finance Director Moreno reported almost $8OO.00Owas projected h)rPondenoma. Additionally, she defined sources over base use, noting i1tried toaddress obalanced budget where on-going revenues and on-going expenditures at current service levels would be balanced and to what degree anything over that could support additional enhancements. Council Member Moreno asked whether the budget addressed how many more services the City would have 0oprovide when the various developments came online. Finance Director Moreno reported staff has not done that typically, but can look at it in the future. Council Member Moreno noted the increase in stressors will require more police and fire services amwell omincreased uses iDroads, parks, and increased traffic. Heasked whether developer fees were part of the revenues being counted, with Finance Director Moreno reporting developer fees were separate and apart and staff will have better information in the coming weeks. She added developer fees do not go into the General Fund, but rather were restricted funds. Council Member Moreno asked about the total of developer fees and Finance Director Moreno reported staff was currently putting together that information. Council Member Murray asked whether projected propertvtaxinoreaeesre|ated1othebui/dout of the Platinum Triangle were included in the out years and Finance Director Moreno stated they were not. In terms of stressors for economic development, she suggested it would be useful to provide the data on on apples -to -apples basis, including revenue streams for each sector. Additionally, she noted there were reserves in other City accounts and asked regarding the cumulative total ofall City reserves. Finance Director Moreno reported the City usually runs about 2O%ofexpenditures, Council Member Murray stated ifthe City was going tostipulate, based onits current expenditures oapart ofthe five-year plan, she would also like to stipulate the City's total reserves. Council Member Kringreferenced Council Member Moneno'ecomments regarding the need for street improvements and reported the Governor recently signed a bill increasing vehicle registration fees. That money was supposed togotocities for street improvements and she requested including that information inthe budget. Council Member Faessel referenced Council Member Moreno's comments regarding visitors who stay with residents and inquired how that could bequantified and verified. Mayor Tait pointed out the City will not he able to maintain existing services within the next five years, given the current projections. Hesuggested keeping that inmind asCouncil makes decisions throughout the year. Finance Director Moreno reported staff was diligently trying to balance, projecting mamuohmmreaoonab|ypomaib|e. P0e. Moreno continued with the FY 2017/18 preliminary budget for the Administrative Departments. The Administrative Departments consist ofCity Administration, City Clerk, City Attorney, Finance. and Human Resources. Together, they help City Council provide leadership to carry out Council policies, impart the legal defense and support vital record-keeping functions Of City Council Minutes ofMay 9,2OD Page 6of22 the City, evaluate internal controls and provide independent appraisals to maximize revenues and prevent internal risk, protect the City's assets through the acquisition, accounting and investment of resources, and support City operations through the hiring and development ofquality staff. The City Council has a preliminary budget of $1.3M; City Administration has a preliminary budget of $5.7K4; City Attorney ia projecting expenditures Of$8.1 rniUiOU; and City Clerk $1.QK4. These departments are predominantly funded bythe General Fund. Finance has apreliminary budget Vf$75.0K8and Human Resources of$213.@yW. Their General Fund shares are $11.5K4and $3.1 M respectively, with the balance comprised of Resort debt and i ntragovern mental service charges, primarily insurance and benefits. Together the Administrative operating budgets make upapproximately 496of the total City budget and 1O96ofthe General Fund. When including revenues, the cost ofthese support departments decreases. Each collects revenue equal to about 25-35% of its costs. Approximately 64% of the administrative budgets provide for personnel costs. yWa. Moreno shared that the administrative departments are crucial support system to ensuring the city can operate and provide services to our residents. She provided highlights of each of the general government departments: The City Administration consists of the City Manager's C)Mice. Government & Community F{a|ai(ono. Public Information Office, and Audit Oivision, providing support on citywide initiatives such aafireworks sales, the Public Safety Board, and Anaheim Anytime. The department also works diligently in enhancing communication efforts with residents online and with publications tO ensure the community i8aware Ofcitywide projects. Additionally, the Audit Division established @ citywide anonymous "Fraud Hotline" service providing City employees and the community a mechanism 10report suspected fraud and waste iOCity operations. Ma. Moreno reported the City Clerk's Office provides core functions with official records, elections, and passport services. This past fiscal year marked the city's first By -District General Municipal Election for Districts 1,3.4.and 5. Q1off worked diligently, hosting o1O'dayvote center that was open mnthe weekends. Over 4.1ODearly voters came toCity Hall, which also served 8s a polling place for precincts. |nthe CityAttorney's Office, our lawyers and legal aides prepared, reviewed, and executed over 57Oagreements, ordinances and resolutions aowell am prosecuted over 1O.DOOviolations ofthe City Municipal Code and State Law. The Human Resources Department has worked hard this past year with recruitment of new employees and training ofexisting employees toensure wehave the best people employed. Through April, Human Resources has over 159 recruitment requisitions, reviewed over 19,000 job applications, and hired 2O8employees. By the end Vfthis fiscal year, vvewill have provided 88training classes and approximately 2,112 participants will have completed atleast one training. This past fiscal year, the city successfully consolidated all network infrastructure services, including IT and G|8. under the Finance Department to improve efficiency and communication across each department. |naddition 0o managing, prooesaing, and supporting the city's network and financial infrastructure, the Finance Department has maintained excellence in financial reporting, receiving the GFOA's Certificate of Achievement for Excellence in Financial Reporting and Budgeting. Ms. Moreno continued that the Finance Department has worked closely with each department to provide additional opportunities for our residents toengage and explore the city's budget. Residents can attend and provide feedback nnthe citywide budget ataNeighborhood Services District Community meeting, one scheduled in each district; a Budget. Investment and City Council Minutes ofMay 9, 2017 Page 7ofZ2 Technology Commission Meeting; and the remaining three budget workshops. Residents will have the opportunity to learn more about the budget and provide input on their priorities for the city. Mo. Moreno reported the input would be compiled and results presented to Council for consideration otthe June 2OBudget hearing and adoption. Additionally, she reported there would be three city budget resources available that the public can use iVlearn, explore, and share with one another. The Budget Preview was a new document available inthe Chamber and online at: .inboth English and coming inSpanish. She stated they will have an online balancing exercise for the city's budget and otool h»visualize the city's services byDepartment. She reported the next workshop was scheduled for May 23 and the Police and Fire & Rescue departments would bepresenting. DISCUSSION: Council Member Kring referenced the number of yearly visitors to the City and noted some of them do not stay in Anaheim. She opined the only way to determine accurate numbers was to task Visit Anaheim todmpolling. Council Member Moreno added whether visitors stay in Anaheim or not has an impact on the City. He 8zpnags8d interest in the City's staffing ratios and orpnam8ed concern with asking staff to domore with less. Hereported there were many efforts tosubcontract much Ofthe City's work during the recession, and often, the City ended up paying more in the long term. He indicated he would like [o know more about what those contracts look like today versus when the recession started, and consider the possibility of bringing some of the services back in house. He noted savings in hiring part-time, but stated it nynU|hed in a lot of turnover. He was interested in knowing how many City departments depended on part-time labor and well as subcontracted work. Additionally, he would like to understand reclassification of management positions. Mayor Tait addressed the preliminary proposed budget for Administrative Departments and requested clarification. Finance Director Moreno reported the Finance Department included resort debt service, but also Information Services. Parts were charged back tOthe General Fund under aninternal service fund. She reported the Convention Center expansion was iUthe Convention Center budget. The resort debt was never allocated tothe Convention Center, and staff decided to keep it in one bucket. She added the bulk nfHuman Resources includes benefits ininsurance, including PERS and medical. In response to Mayor Tait's question, Finance Director Moreno reported $260 million was for the City's internal service funds. She noted staff can try to break that number down in a future presentation. Mayor Tait noted there were 1,900 employees and asked whether the rest were part-time, to which Finance Director Moreno responded affirmatively and stated staff will provide those numbers infollow-up conversations. Council Member Moreno reported he looks forward to subsequent community meetings to discuss the budget. Finance Director Moreno reported even if funding was not available today, if the City has plans in place on what it would like to do when funding was avmi|ab|e, input would sU|| be valuable; just understanding the budget would be helpful to residents. Council Member Moreno commented positively on the budget tool that will be available on line soon. Council Member Murray asked whether there was a way to ensure residents provided input using the budget tool rather than Onn-n3sidenta. Finance Director Moreno was unsure whether there had been a restriction for Anaheim residents and businesses, but stated there may be some ways to ensure the City captures that information and would know where the sources were coming City Council Minutes of May 9, 2017 Page 8 of 22 from. Council Member Murray thanked staff and noted budgets were challenging documents to construct and the City had been very good at being conservative, year-to-year. She encouraged residents to make sure their voices were heard and engaged in the process and noted the importance of showing allocation of services and how capital funding was being allocated by district. Mayor Tait reiterated his concerns regarding the projected decrease in surplus within the next five years and asked whether consideration had been given to years five through ten. Finance Director Moreno stated staffs best estimate, based on what PERS has made available relative to the discount rate, was reflected in the five-year plan. Additional information will be available in July or August, which could change the projections. Council Member Moreno inquired why the City was projecting the TOT to decrease by $6 million and Finance Director Moreno stated the City did not finish this year as robustly as it had anticipated, and noted it could be a supply issue. If the supply of hotels in the City increased, that number will also increase. She addressed seasonality and reported staff was still waiting for additional detail. PUBLIC COMMENTS ON WORKSHOP: Mayor Tait opened public comments on the workshop. William Fitzgerald stated it appeared Council was concerned about mostly small items and alleged big items were being avoided because they had a relationship between donations and money going to individual Council Members. He stated Council was wasting millions of taxpayers' money on items that have the indirect purpose of getting reelected and/or improving their families' and friends' financial conditions, including Disney. Instead of cutting the budget, the City was increasing taxes and fees to residents. He referenced 24 acres of land at Beach and Lincoln that was estimated to be worth over $75 million but was sold at $16 million to a developer who was a long-time Council supporter, who was now reselling that land for $54 million, for a profit in less than a year of $38 million, while Mr. Fitzgerald added the land could have been used as a safe zone for the homeless. He understood similar lands were being sold at a discount rate and wondered where, in the budget, the $16 million was reflected. He also questioned donations to non-profit charities. Council Member Kring refuted Mr. Fitzgerald's comments stated Mr. Zelman had owned that property for many years and had never given her a contribution. Mike Robbins stated the TOT should change according to occupancy, listed corresponding TOT at various percentages of occupancy, and noted it could raise the City's bottom line significantly and cover all the costs. Additionally, the more people coming into the City, the more stress there will be on infrastructure and the more people will have to pay into it, to support it and so residents do not have to pay to absorb it. He hoped that may be something Council will consider. Mark Daniels suggested inserting a caveat in the listing of people providing input on the budget, requiring they input their address whereby they would be automatically allocated to their appropriate areas or districts. R. Joshua Collins, Homeless Advocates for Christ, asked regarding the costs related to prosecuting the homeless and wondered if Council was willing to change some of the laws. Jeanine Robbins commented on a sliding scale for TOT, noting Disney no longer has set rates for admission fees; they are all on a sliding scale. She reported raising the TOT on hotel occupancy was a feasible option. City Council Minutes of May 9, 2017 Page 9 of 22 With no further comments, Mayor Tait closed public comments and concluded the workshop. ADDITIONSXDELETIONS TO CLOSED SESSION: Acting City Attorney Kristin Pelletier reported Item No. 08 pertained to potential litigation related to TOT recovery from a motel. PUBLIC COMMENTS ON CLOSED SESSION ITEMS: Cecil Jordan Corkern asked whether there would be a workshop on Disney as he has been doing research on the matter. William Fitzgerald referenced negotiations with the Fire Department and opined the City could save money by contracting with the County for fire services. However, he alleged that would mean Council Members would lose money for donations from the Fire Department union. He commented on the City's choice of a Fire Chief and Council's approval of $600 million for Fire and Police retirement for the next five years and stated that had not been considered. He urged Council to consider the budget as a tactic to lower their wages. With no further comments, Mayor Tait closed public comments. CLOSED SESSION: At 4:48 P.M., Mayor Tait recessed to closed session for consideration of the following items: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Susan Craft v. City of Anaheim, Eastridge Services, LLC, et, al., Orange County Superior Court Case No. 30-2016-00828548-CU-PO-CJC 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Rogelio Molina v. City of Anaheim, et. al., Orange County Superior Court Case No. 30-2015-00823602-CU-OE-CJC 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54966.9 of the California Government Code) Name of Case: Energy EPT v. City of Anaheim, Orange County Superior Court Case No. 2017-00901333 4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Powerhouse Patients Alliance, Inc. dba Orange County Patients Collective v. City of Anaheim, Orange County Superior Court Case No. 2017-00895858 5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Hemp Factory, Inc. v. City of Anaheim, Orange County Superior Court Case No. 2017-00915309 6. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick, Acting Human Resources Director Name of Employee Organizations: Anaheim Firefighters Association, Local 2899, International Brotherhood of Electrical Workers, Local 47, and Teamsters, Local 952 City Council Minutes of May 9, 2017 Page 10 of 22 7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the California Government Code) Property: 1370 S. Sanderson Ave, Anaheim CA (Anaheim Equestrian Center) and APN 253-601-02, a parcel located at the northwest corner of Katella and Douglass. Agency Negotiator: Paul Emery, City Manager Negotiating Parties: H&S Ventures, City of Anaheim Under Negotiation: Price and Terms of Payment Regarding Lease and/or Purchase 8. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: One potential case. At 5:22 P.M., the Council session was reconvened. INVOCATION: Rabbi Joel Berman, Temple Beth Emet FLAG SALUTE: Council Member Dr. Jose Moreno PRESENTATIONS: Lion's Club Youth of the Year Mayor Tait introduced Rod Walls, Chairman of the Lion's Club Youth of the Year Committee, and listed his participation in the Lion's Club and contributions. He thanked him for his service to the City and deferred to him to introduce the award and recipients. Mr. Walls presented the 2017 Lion's Club Anaheim Youth of the Year awards, addressing criteria and requirements of applicants, collaboration with the City, and award amounts. He introduced each recipient and presented them with the awards. Among them were Israel Hernandez, Samantha Shaw, and Alaa'l Ahamed. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming May 7-13, 2017, as Public Service Recognition Week Proclaiming May 14-20, 2017, as National Prevention Week Proclaiming May 15-19, 2017, as Bike to Work Week Public Works Director Rudy Emami accepted the proclamation declaring May 15-19, 2017, as Bike to Work Week and reported on a recent Bike-a-Thon at Anaheim High School. Additionally, he addressed the recent update of the City's Bike Master Plan and reported community bike to work has increased by 36% from 2005 to 2013. He indicated partners OCTA and Caltrans have bike events all month, and the City will continue to look for opportunities to promote bicycling mobility and safety. Proclaiming May 15, 2017, as Peace Officers Memorial Day Police Chief Raul Quezada accepted the proclamation declaring May 15, 2017, as Peace Officers Memorial Day and thanked the City and Council for its support. Proclaiming May 14-20, 2017, as Women Veteran's Week City Council Minutes of May 9, 2017 Page 11 of 22 ADDITIONS/DELETIONS TO THE AGENDA: City Clerk Linda Andal reported staff's request to withdraw Item No. 12 from the agenda and return at a future date. Regarding Item No. 20, staff requested continuing the item to May 23, 2017. PUBLIC COMMENTS fall agenda items): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk Linda N. Andal. Cecil Jordan Corkern read from the Bible, commented on countries equipped with nuclear bombs, and on the earth's last days. He urged the public to stay away from false people and reported he was working on an investigation of Disney. Mark Daniels thanked Council Member Barnes for appointing him to the Cultural and Heritage Commission and shared some of his ideas. R. Joshua Collins, Homeless Advocates for Christ, read a passage from the Bible, encouraged everyone to give their lives to Christ, and questioned the City's prohibition of tarps and sleeping bags for homeless spaces. He opined this was not showing kindness to the poor and alleged class discrimination. He questioned Council Member Kring's creation of a dog park to kick out the homeless and urged Council to repeal discriminatory laws against the poor and homeless. Junior Tauvaa, Senior Vice President for Sales and Services, Visit Anaheim, reported the Anabella Hotel will be closing in mid-August and construction will begin on a new four -diamond resort hotel. He addressed the proposed opening, generation of TOT, and net incremental revenue for the City. Kevin Curtis, General Manager, The Rainforest Cafe, invited everyone to the Taste of Anaheim at the Garden Walk, this Thursday from 5:30 P.M. to 10:30 P.M. He reported the Anaheim Restaurant Industry created over 40,000 jobs in the City and generated over $1.4 Billion in economic activity and gross sales yearly. He highlighted participating restaurants, encouraged the public to attend, and thanked and listed supporting sponsors. Duane Roberts reported recently receiving a response to his complaint filed against Police Chief Raul Quezada for making false and inaccurate statements against the KKK during an incident at Pearson Park in February 2016. He read portions of the letter and stated on one hand, it vindicated him by acknowledging Chief Quezada got key facts wrong; however, he noted inconsistencies in terms of a statement declaring Chief Quezada was not aware of all the communications regarding the time sequence of the event, referencing a copy of his daily calendar where there was an entry, on the day of the incident, stating a cancellation of the event and "intelligence assessment shared". He commented in support of giving the Public Safety Board subpoena power. William Fitzgerald alleged City Council cared only about themselves and those who paid for their elections. He added City Council had permitted huge, limited parking variances to all apartment builders and Council Members gave away to Police and Fire units to receive tens of thousands of dollars for their elections. Additionally, in terms of Disney, Anaheim as presently hundreds of millions of dollars in debt from the giveaways to the Disney Corporation and Disney gives money to elect Council Members that allow pollution of the City's air and water. Bill Wyrick spoke regarding the need to develop a coyote management plan to protect Anaheim citizens and pets. City Council Minutes of May 9, 2017 Page 12 of 22 Council Member Moreno reported a coyote management plan would be presented by staff during the Council meeting of May 23, 2017. Larry Cripe Board Chair, Chance Theater, reported they were currently in the middle of their 19th season and addressed ways in which they were reaching out to the community as well as upcoming performances. He thanked the City and City Council for its support. Michael Buss, President, Anaheim Arts Council, reported Council Members were honorary members of the Arts Council and the Arts Council was celebrating their 25th year of running the Children's Festival, noting it would be held at Pearson Park on Saturday, May 28, 2017. He listed sponsors of the festival, addressed current changes in the Council, and looked forward to working with the Cultural and Heritage Commission. He congratulated the City for the new Muzeo sign and thanked Council for its consideration. Jeanine Robbins spoke of the homeless crisis in the City, stressed it was time to provide portable restrooms for the homeless, noted the importance of having access to clean water and sanitation, and opined the ordinance must be amended to prevent the Anaheim Police Department from confiscating the property of the homeless. She shared her experience on a ride -a -long with CityNet and declared she was tired of the Anaheim Police Department lying in terms of their treatment of the homeless. She urged Council to repeal the part of the ordinance allowing for confiscation of property and noted the political consequences of Council ignoring residents' req uests. Mike Robbins reported on recent and upcoming meetings regarding the homeless issue and noted the City of Anaheim was the most egregious in dealing with the homeless. He alleged the City was breaking the Constitution and urged Council to repeal the amendment allowing for the confiscation of property and the criminalization of homelessness. He added services must be brought to them, where they are, and noted the need to act as soon as possible. Judy Booker -Peterson expressed concerns with RVs parking in residential streets, their adverse impact on the community, and listed associated hazards. She addressed challenges with enforcement and urged Council to act. Wes Jones spoke in support of Nancy West's Alfresco Gardens plans and commented on needing to earn the trust of homeless people. He urged Council to end the City's war on the homeless by stopping the enforcement of the camping ban. Mr. Jones alleged Disneyland buys elections, referenced the Angels' giveaway deal, a $300 million trolley, and ARTIC. He proposed Council place an initiative on the ballot, that any Council Member who receives more than $25,000 in campaign contributions from one source, would be required by law to recuse themselves from voting on any matter involving the source of that contribution. Luke Longoria spoke in support of the City trying to address the homeless problem and stated he has seen an increase in the number of homeless people in the area. He expressed concerns with public health in terms of homeless people urinating and defecating in their yard, as well as with harassment. A female speaker stated she empathized with the mentally -ill and those suffering with addiction and indicated support for the City's efforts to help them. She stressed the need to take care of the less fortunate, while enforcing laws, and encouraged the City to establish a program for helping the homeless. Mayor Tait reported on the recent opening of Orange County's first homeless shelter on Kraemer, which included wrap-around services. He encouraged the speakers to contact CityNet to learn more about helping the homeless. City Council Minutes ofMay 9,20D Page 13of22 "The Cameraman" commented onaYbuTube Channel, The Homeless Simpsons ofAnaheim, and reported hewould like the people who parked their camping tnaikenainLaPa|mnaParhduhng CinCO de Mayo to he charged for violating the City's no -camping ordinance. He felt that would not happen because the ordinance was only used against the homeless. Hereferenced aCity ordinance regarding marijuana dispensaries and addressed a rumor the City has been collecting tax money on marijuana dispensaries and putting that money into the City's bank account. He alleged this was aviolation ofthe RICO Act, 3odrug money cannot beput into the Federal Banking aysharn. Linda Lehnkering, Anaheim Poverty Taskforce, urged Council to end the seize -and -destroy ordinance and other laws criminalizing homelessness. She reminded Council that homelessness ends with a home and encouraged Council to work on ways to increase permanent support ofan affordable housing stock inAnaheim. She thanked Council for its efforts and hoped i[will continue its leadership inending homelessness inOrange County. Lou Noble read passages from the Bible regarding the importance of caring for the poor, spoke in support of Alfresco Gardens, and commented on the criminalization of the homeless. He urged Council to work together with the County and other agencies to develop a solution. Richard complained about the City Manager's use of a cell phone during the Council meeting and spoke regarding abuses and harassment by the Anaheim Police Department on the homeless. Vern Nelson read o passage from the Bill of Rights. 4th Amendment, m9|8iiva to unreasonable search and seizure and the 8th Amendment. Hespoke inopposition 0othe City's anti -camping and seize and destroy ordinances noting they violated the two amendments he referenced. He noted the People's Homeless Task Force has many good ideas to address the homeless issue and suggested repealing the ordinances, opening spaces for camping (including Alfresco Gardens) and providing portable restrooms and sanitation opportunities. He addressed the Kraemer shelter but noted it supports several cities and does not have the capacity to take care Cfall the City's homeless population. Jeff Kirsch, Anaheimneedsimprovement.com, spoke regarding the importance and need for transparency. He referenced Item No. 12, noting similar items have been passed through on agendas with notimely disclosure and with no transparency for the public. Hespoke in opposition to the City having a pool ofcontractors without public input, commented on the increased labelling in the budget, of "miscellaneous professional services", and suggested pooled expenses need hobetimely disclosed. Additionally, haspoke about the lack oftransparency in terms of the experience and qualifications of commission/committee appointees, City Clerk LindaAnda| reported information regarding applicants for coNmiosionm/connrnittaeovvan not available on-|iDe, but could be obtained from her office, with redactions relative tnpersonal information. Bryan Kaye commented onPolice Officers that have died inthe line ofduty, noting none have died atthe hands ofAnaheim residents. He alleged Mayor Tait attacked what hesaid a18 previous meeting and hoped he has proof that officers were recording, that he resisted arrest and harassed the officers. Hareported lies have been spread about him and hoped Council will start saying nice things about him. Victoria Vidrio spoke regarding the importance of transparency and protecting the residents of Anaheim. She noted tomorrow was Mother's Day in Mexico and urged Council to think of the mothers who have lost sons and daughters topolice brutality. With UVfurther comments, Mayor Tait closed public comments. City Council Minutes of May 9, 2017 Page 14 of 22 COUNCIL COMMUNICATIONS/AGENDA REQUESTS: None CITY MANAGER'S UPDATE: City Manager Paul Emery announced the schedule for the FY 2017-18 budget workshops, including six community meetings to be held throughout the city to garner community input on the budget process. CONSENT CALENDAR: At 7:01 P.M., the consent calendar was considered with Mayor Pro Tem Vanderbilt pulling Item No. 10 for further discussion. Mayor Tait declared a potential conflict of interest on Item No. 07, noting he worked for the County of Orange, and Item No. 11, noting he worked for UCI. Council Member Barnes declared a potential conflict of interest on Item No. 09. MOTION: Council Member 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 — 7: (Mayor Tait and Council Members Vanderbilt, Murray, Barnes, Moreno, Kring, and Faessel). NOES — 0. (Item Nos. 7 and 11: Mayor Tait recorded a potential conflict; ROLL CALL VOTE: AYES - 6: Mayor Pro Tem Vanderbilt and Council Members Murray, Barnes, Moreno, Kring, and Faessel; NOES — 0; ABSTAIN — 1: Mayor Tait; Item No. 9: Council Member Barnes declared a potential conflict; ROLL CALL VOTE: AYES - 6: Mayor Tait and Council Members Vanderbilt, Murray, Moreno, Kring, and Faessel; NOES — 0; ABSTAIN — 1: Council Member Barnes). Motion carried. D116 1. Approve a recognition recognizing Taller San Jose Hope Builders on their one-year anniversary of their Anaheim location. D155 2. Approve the 2017-2020 Workforce Innovation and Opportunity Act Local Plan and the Orange County Regional Workforce Plan and authorize the Mayor to execute the plans and modifications thereto, and related documents. 3. Accept the bid from Western Audio Visual, in the amount of $334,923.36 plus applicable D180 tax and freight, for the Traffic Management Center Media Wall Update Project for Public Works, Engineering Division and authorize the Purchasing Agent to issue a purchase order, in accordance with Bid #8908. 4. Accept the bid from FC & Sons Roofing, Inc., in the amount of $120,096 plus 20% D180 contingency, to remove and replace the metal roof on the Downtown Community Center and authorize the Purchasing Agent to issue a purchase order, in accordance with Bid #8922. D180 5. Accept the bid from P.R.E. Sales, Inc., in the amount of $225,520 plus applicable tax, for the purchase of folding tables for use in meeting and banquet rooms of the expanded Anaheim Convention Center and authorize the Purchasing Agent to issue a purchase order, in accordance with Bid #8884. City Council Minutes of May 9, 2017 Page 15 of 22 AGR- 6. Award the contract to the lowest responsible bidder, Shawnan Company, in the amount of 10548 $769,063, for the Gilbert Street Improvements Project from Crescent Avenue to 690 feet north of La Palma Avenue, authorize the Finance Director to execute the Escrow Agreement, and determine the project is categorically exempt under the California Environmental Quality Act. AGR- 7. Accept an award of funds, in the amount of $1,962,000, by the County of Orange Board of 7107.0 Supervisors, approve and authorize the City Manager to execute an agreement with the County of Orange for the provision of vocational training activities for the period of July 1, 2017 to June 30, 2020, and authorize the Interim Workforce Development Manager, or authorized representative, to administer the agreement, and any amendments thereto Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE: AYES — 6: (Mayor Pro Tem Vanderbilt and Council Members Murray, Barnes, Moreno, Kring, and Faessel); NOES — 0; ABSTAIN — 1 (Mayor Tait). Motion Carried. AGR- 8. Determine that the Lincoln Avenue 16" Water Main Project (Project) is categorically 10549 exempt from the California Environmental Quality Act pursuant to Sections 15302(c) and 15303(d) of Title 14 of the California Code of Regulations, award the contract to the lowest responsible bidder, Ferreira Construction Company, Inc., in the amount of $2,059,782, for proposed Project, and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. T108 9. Approve the Anaheim Tourism Improvement District FY 2015/2016 Annual Reports for the marketing and transportation component funds. Due to a potential conflict of interest, Council Member Barnes abstained on this item. ROLL CALL VOTE: AYES — 6: (Mayor Tait and Council Members Vanderbilt, Murray, Barnes, Moreno, Kring, and Faessel); NOES — 0; ABSTAIN — 1 (Council Member Barnes). Motion Carried. 11. Approve the First Amendment to Lease Agreement with Regents of the University of AGR- California, in the annual lease amount of $1 per year, extending the current agreement for 2485.1 an additional three years with two one-year optional extensions for City -owned property located at 300 Carl Karcher Way (formerly 300 W. Romneya Drive) to continue an accessible and comprehensive primary medical care clinic within the City and authorize the Director of Community Services Director to exercise the extension options. Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE: AYES — 6: (Mayor Pro Tem Vanderbilt and Council Members Murray, Barnes, Moreno, Kring, , and Faessel); NOES — 0; ABSTAIN — 1 (Mayor Tait). Motion Carried. City Council Minutes of May 9, 2017 Page 16 of 22 A123 12. Staff requests continuance to May 23, 2017. Waive Council Policy 4.1 and approve and authorize the City Manager to execute and administer Professional Services Agreements with JSPR, Public Relations, Writing and Marketing; Urban Field Studio, LLP; Greenhaus, Inc.; and CSG Advisors, in a maximum compensation amount not to exceed $150,000 per agreement, for on-call services in project management, financial, architectural, and public relations development and economic development strategies through December 31, 2018 with three one-year optional extensions (continued from Council meeting of April 25, 2017, Item No. 20). Item No. 92 withdrawn by staff. AGR- 13. Determine that the Alderdale Avenue and Maychelle Drive Water Transmission Main 10550 Replacement Project (Project) is categorically exempt from the California Environmental Quality Act pursuant to Sections 15302(c) and 15303(d) of Title 14 of the California Code of Regulations, award the contract to the lowest responsible bidder, T.E. Roberts, Inc., in the amount of $1,917,035 for the proposed Project, and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. RESOLUTION NO. 2017-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting a certain deed conveying to the City of Anaheim certain interests in real property (City Deed No. 12103) (Acquisition payment, in the amount of $21,500; easement deed on vacant land at northeast corner of 91 freeway and Riverdale Avenue). D129 14. RESOLUTION NO. 2017-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the updated City of Anaheim Hazard Mitigation Plan and approving submittal of the Hazard Mitigation Plan the State of California Governor's Office of Emergency Services and the Federal Emergency Management Agency and rescinding Resolution No. 2011-035. D129 15, RESOLUTION NO. 2017-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the City of Anaheim Emergency Operations Plan and approving submittal of the Anaheim Operations Plan to the State of California Emergency Management Agency and rescinding Resolution No. 2011-139. T106 16. RESOLUTION NO. 2017-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM initiating proceedings for the annual levy of assessments in, and accepting an Assessment Engineer's Report for, the Anaheim Resort Maintenance District. RESOLUTION NO. 2017-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to provide for an Annual Levy and Collection of Assessments in the Anaheim Resort Maintenance District, and setting a time and place for the public hearing thereon (Public hearing scheduled for June 6, 2017 at 5:30 P.M.). City Council Minutes of May 9, 2017 Page 17 of 22 R100 17. RESOLUTION NO. 2017-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the acceptance of a Southern California Association of Governments (SCAG) Sustainability Planning Grant Award, in the amount of $225,000, to prepare an existing conditions and opportunities analysis for the Center City Corridors Plan; authorize the Planning and Building Director or his designee to execute all documents required to accept the grant funds; amend the budget for the appropriate fiscal years to reflect said grant award; and, determine that these actions are exempt from the California Environmental Quality Act (CEQA) pursuant to guideline section 15306. M142 18. ORDINANCE NO. 6409 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 4.100 to Title 4 of the Anaheim Municipal Code (Commercial Marijuana Activities and Outdoor Cultivation) to prohibit commercial marijuana activities and ban the outdoor cultivation of marijuana in the City of Anaheim and determining pursuant to the California Environmental Quality Act (CEQA) that this ordinance is not a project pursuant to Sections 15060(c)(2), 15060(c)(3) and 15378 of the CEQA Guidelines (Introduced at April 25, 2017 meeting, Item No. 33). 0280 19. ORDINANCE NO. 6410 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2016-00301; DEV2016-00109) (729 North East Street; rezoning the property from "RM -3" Multiple -Family Residential zone to "RS -2" Single -Family Residential zone). M142 20. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM repealing Chapter 15.03 and adding new Chapter 15.03 to Title 15 of the Anaheim Municipal Code pertaining to California Building Standards Codes. ORDINANCE NO. (INTRODUCTION) AN ORDINANCEOF THE CITY COUNCIL OF THE CITY OF ANAHEIM repealing existing Chapter 16.08 and adding new Chapter 16.08 to Title 16 of the Anaheim Municipal Code pertaining to California Fire Codes. Determine that the proposed ordinances constitute a project falling within the definition of Categorical Exemptions, Section 15061 (b) (3), as defined in the State CEQA Guidelines and are, therefore, categorically exempt from environmental review and authorize the City Clerk to schedule a public hearing on said ordinances for June 6, 2017 and to publish notice of said public hearing pursuant to Section 50022.3 of the California Government Code. Item No. 20 continued to the Council meeting of May 23, 2017. 21. Waive Council Policy 4.1 and approve an agreement with Jonathan Price Design, in an 3367.D amount not to exceed $40,000 annually, to design the Anaheim magazine and other graphic communications for a term of one year with two one-year optional renewals and authorize the City Manager, or his designee, to execute any related documents to administer the agreement. City Council Minutes of May 9, 2017 Page 18 of 22 D114 22. Approve minutes of the City Council meeting of December 13, 2016. END OF CONSENT CALENDAR 7:15 P.M. AGR- 10. Approve the First Amendment to Lease Agreement with Growth Opportunities through 9194.1 Athletics, Learning and Service (GOALS) to include the use of property located at 1104 N. Homer Street to expand the GOALS community garden to conduct outdoor gardening and environmental educational opportunities for area youth and families. Community Services Director Brent Dennis reported that the item was a First Amendment to Lease Agreement with Growth Opportunities Through Athletics, Learning and Service (GOALS) to add the parcel located at 1104 N. Homer Street to their existing lease agreement to allow GOALS to expand their garden space for youth and family education. DISCUSSION: Mayor Pro Tem Vanderbilt reported he was familiar of staffs previous recommendation to remove the buildings and had expressed concerns with replacement of a use that was generating revenue for the City with a similar revenue -generating use. In response to his inquiry regarding further development of La Palma Park, Mr. Dennis reported staff could prepare a more -comprehensive presentation on that matter, but noted tonight's matter involved expanding the existing community garden and doing a first amendment lease. It does not preclude the eventual expansion of La Palma Park, should that be decided in the future. Council Member Faessel suggested Council may wish to examine, more fully, regarding the future of the land north of La Palma Park. Mr. Dennis reported the City has a "Planning for Parks" survey currently underway, which will provide an opportunity for members of the community to have a say in the future of City parks, including La Palma Park. He noted participation in various community events providing opportunity for public input. Council Member Moreno asked regarding the difference between the Parks Working Group and the Parks and Recreation Commission, to which Mr. Dennis explained the Commission was being re-formed and staff will use it as a major advisory group. Mayor Pro Tem Vanderbilt added Council has the power to make budget adjustments and the working group was formed to determine the cost of improvements and find the funds for them. Council Member Kring asked regarding the budget for parks and Mr. Dennis stated the budget for parks assessment was $125,000. $830,000 helped with field renovations at five parks and seven restroom renovations. Mayor Tait noted this was a specific agenda item and opportunities would be given to discuss the overall renovation of parks at a future meeting. He commented on the good work done by GOALS and thanked them for their efforts. MOTION: Council Member Moreno moved to approve the First Amendment to Lease Agreement with Growth Opportunities through Athletics, Learning and Service (GOALS) to include the use of property located at 1104 N. Homer Street to expand the GOALS community garden to conduct outdoor gardening and environmental educational opportunities for area youth and families, seconded by Council Member Kring. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Vanderbilt, Murray, Barnes, Kring, Moreno, and Faessel). NOES — 0. Motion carried. City Council Minutes ofMay 9,20D Page 19 of 22 B105 23. District 1 appointment to the Community Services Board to a 0enn ending December 31. 2020. Council Member Barnes announced the appointment of Tierra Wilson to the Community Services Board to a term ending December 21, 2020. District 1appointment: Tierra Wilson (December 31.2D2O\ Council Member Barnes departed the meeting at this juncture. D118 24. Receive supplemental and amended information from the City Manager's Office regarding the 1996 Resort Revitalization Agreements, specifically information on Measure B related to transient occupancy tax. Assistant City Manager Kristine Ridge proo8DNad the staff report, noting it was an opportunityb} provide a correction and clarification regarding a response she provided during a workshop held mnApril 25.2U17.covering multiple agreements associated with the 1B96 Resort Revitalization and information onMeasure Brelated t0TOT. She reported Council Member Moreno inquired if the ballot tVcontinue the previously Council -adopted TOT increase of296contained language that the funds would be specifically for the resort, and she mistakenly answered, yes. She stated the actual language in the ballot box did not mention the use of the funds for the resort and apologized for the confusion. She added itwas mentioned inthe statements supporting and opposing the measure, but not inthe ballot box. DISCUSSION: Mayor Tait stated heappreciated the clarification and the apology. pWa. Ridge reported the funds were not legally restricted in the ballot box. Council Member Moreno reported this was brought to his attention during a meeting with staff, that the 2Y6increase inTOT was restricted tax revenue that voters voted specifically togo to the Resort. He addressed the November 5, 1996 ballot question on Measure B and the distinction between restricted and unrestricted funds. Council Member Moreno presented the Impartial Analysis of Measure B by then -City Attorney Jack L. White, and noted it clearly stated the funds were not to be used for anything specific, but were to be deposited in the City's General Fund. He noted the importance of understanding what the voters were told and the intent of the money. Council chose not torestrict the money and left i1tnamajority vote. Council Member Moreno addressed the Yes on Measure B argument noting TOT does not cost vohaRa but rather was revenue generated by visitors and listed City projects funded by it. He addressed ballot arguments against Measure Band stressed the importance ofrelying on accurate information. Henoted the money was not restricted for revitalization nfthe Resort. Council Member Murray claimed the ballot argument spoke about the totality of TOT rather than the percentage dedicated for the Resort. She referenced minutes from aCouncil meeting onJuly 23.1988.relative toformation ofthe ballot arguments, and ameeting onOctober 0.19G6'when Council voted unanimously tOapprove development ofthe agreements. She stated she does not understand the purpose ofrelitigating the issue and does not see how itadvances the people's business. Mayor Tait reported hewas there in1Q98and voted insupport of placing the matter Vnthe ballot. Hmopined Council Member K4oraMn'ointention was toclarify what was voted onand not if it should have passed. Hmreported astatement was made atthe last Council meeting that the money was to be used specifically for bond payments, but stressed that was untrue. He noted City Council Minutes of May 9, 2017 Page 20 of 22 his vote at the time and listed the benefits to the City and community. Mayor Tait stated there would have been a big dividend to the City if a previous Council had not given away $700 million in hotel subsidies. Council Member Murray disagreed with Mayor Tait's comments and reported on a separate hotel rebate program that will provide benefits for the City. In terms of this item, she opined residents have reaped extraordinary benefits for their neighborhoods and mentioned a 700% ROI. Council Member Kring stated the bulk of the money went to attract visitors and conventions and listed improvements made because of the passage of the subject bond. She listed related initiatives supported by Mayor Tait and stated the City has not given one penny to any hotel because nothing has yet been built. She added the bonds of the convention center have been refinanced to expand it and reported on opportunities lost because of the convention center not having enough meeting rooms. She opined Mayor Tait has done good work in the past and hoped he will continue his good works and thanked Ms. Ridge for the clarification. Council Member Moreno explained this was not to begrudge staff, but stated that the Council was entrusted to do the people's business and be diligent. He stated it was important for him to understand the issue and noted the importance of understanding the difference between restricted and unrestricted revenues. He suggested Council needed to think about what it regularly approves on the Consent Calendar. In response to his question, Ms.Ridge reported reviewing documents related to when Council approved the 2% increase and all along, comments related to dedicated use of that money, which was different than "legally restricted". In the minutes, it indicated the 1 % had always been pledged to go back to the Resort, and the 2% increase would be enough to successfully fund the revitalization program. The staff report also stated those were the funds that would pay for the resort revitalization program. At one point, the Mayor said he did not know what the City would do if the 2% did not pass, because there would be no funding for the Resort. The Finance Director followed up saying, "the equivalent amount" of the TOT is used for the LPMR; thereby, correcting herself. Council Member Moreno referenced minutes of October 4, 1994, related to the use of restricted/unrestricted funds. He stated Council has choices and the people were led to believe Council did not have a choice. He reiterated when voters were told the 2% increase would go specifically towards resort revitalization, that was not true. Council Member Moreno suggested the need to become informed before making assertions. He referenced Council Member Murray's comments regarding the ROI and wondered why poverty has increased in the City since the subject vote occurred. Council Member Murray stated she disagreed with Council Member Moreno's comments. Council Member Faessel wondered about steps going forward. He indicated he does not want to go back to twenty -year-old material but rather wants to move forward. He added this discussion has been well -and -good, but rhetorically, asked what Council take forward from it. Mayor Tait noted the importance of truth and clarity and thanked Council Member Moreno and staff for addressing the matter. He added the money belongs to the people and not hoteliers. Going forward, Council must remember the money is the people's money. Council Member Moreno reiterated the importance of understanding the 2% of the TOT is not restricted. No action was taken on this matter. City Council Minutes of May 9, 2017 Page 21 of 22 REPORT ON CLOSED SESSION ACTIONS: Acting City Attorney Kristin Pelletier reported with respect to Item Nos. 03, 04, and 05, Council voted 7-0 to authorize the filing of cross-complaints against the plaintiffs, Energy EPT, Powerhouse Patients Alliance, Inc., and Hemp Factory, Inc. COUNCIL_ COMMUNICATIONS/AGENDA REQUESTS: Council Member Faessel expressed gratitude to his colleagues, staff, the County, and Mercy House for the dedication and opening of the year-round homeless shelter; acknowledged Sir Bruno Serato as the recipient of the humanitarian award at the American Red Cross OC Heroes Luncheon; reported his attendance at the 4th Annual Kids Giving Back fundraiser at Farmers Park in support of music education and the Cinco de Mayo breakfast at La Palma Park; highlighted summer programs provided by the Community Services Department including Pearson Park Theater events; and announced the WAND BBQ. Mayor Pro Tem Vanderbilt reported his participation and attendance at the Love Anaheim event at Magnolia High School, the Juliette Low Elementary garden ribbon -cutting ceremony, the 6th Annual Relay for Life event at Canyon High School, and a garden exhibition on Resh St. highlighting the owner's participation in many City programs to better her home and the surrounding community. He requested a discussion of Council Policy 1.5, Special Event Financial Support, on the next agenda. Council Member Barnes announced the WAND BBQ at Twila Reid Park on Saturday, May 13 and the CityNet meeting regarding the homeless at the Central Library on May 10. For the next agenda, she requested a discussion and action to approve an RV ordinance. Council Member Moreno recognized Youth in Government Day; announced the next meeting of the Welcoming Anaheim Task Force on May 26 and the presentation from USC Center for Immigrant Integration; thanked Jay Burress and AUHSD Superintendent Michael Matsuda for meeting about partnerships between local schools, Visit Anaheim, and the tourism industry; reported on his attendance at the community meet -and -greet with State Senator Josh Newman, 29th District. Council Member Moreno extended his thanks to several city employees and community members for their work and attendance at various events including the May Day Mass and March, the neighborhood clean-up at Little Peoples Park; the Kids Give Back fundraiser; and tour of the St. Jude Neighborhood Clinic at Richmond Park. He further recognized the Sycamore Junior High School for their visual and performing arts program and wished all mothers a Happy Mother's Day. Council Member Kring acknowledged the Sycamore Jazz Band and thanked the Public Works Department for their installation of new water pipes on Loara. She requested a report on the lights at Palm Lane Park at the June 6th meeting, removed her request for a vote on Anaheim as a Sanctuary City, reported her attendance at the opening of Bridges to Kraemer, announced the Taste of Anaheim event on May 11, requested the meeting be adjourned in memory of fallen police officers, and wished everyone a Happy Mother's Day. Council Member Murray offered comments regarding the County's first year-round, full-service homeless shelter, Bridges at Kraemer Place. She acknowledged the Anaheim Ducks and wished them well on Game 7 and requested two items for the next agenda: 1) discussion and action to move off -consent and public hearing items to the front of the agenda, followed by the consent calendar, and 2) to codify as part of the parliamentary rules that all members of Council be limited to three minutes of commentary, including questions, on any individual agenda item. She also requested a formal recognition of Palm Lane School parents for their advocacy on behalf of their children's education for the June 6 meeting and wished everyone a Happy Mother's Day. City Council Minutes of May 9, 2017 Page 22 of 22 Mayor Tait announced the formation and meeting of the Beach Blvd. Coalition of mayors, and other entities to energize and revitalize Beach Blvd., reported his attendance at the Next Up Foundation arts awareness festival, wished everyone a Happy Mother's Day, and expressed his support of the Anaheim Ducks. ADJOURNMENT: With no further business before the City Council and without objection, Mayor Tait adjourned the meeting of May 9, 2017 at 8:40 P.M., in memory of Police Officers who died in the line of duty. :sa y s itted, Bass, MC Acting City Clerk