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2006/06/20 ANAHEIM, CALIFORNIA CITY COUNCIL REGULAR ADOURNED MEETING OF JUNE 13, 2006 AND REGULAR MEETING OF JUNE 20, 2006 The June 13, 2006 City Council Regular Adjourned meeting was called to order at 2:00 P.M. in the Council Chambers of Anaheim City Hall, 200 South Anaheim Boulevard on June 20, 2006. PRESENT: Mayor Curt Pringle, Council Members: Richard Chavez, Lorri Galloway, Bob Hernandez and Harry Sidhu. STAFF PRESENT: City Manager Dave Morgan, City Attorney Jack White, and Deputy City Clerk Cathy Godoy. A copy of the agenda for the June 20, 2006 meetings was posted on June 16, 2006 at the City Hall exterior bulletin board. FISCAL YEAR 2006/07 BUDGET WORKSHOP City Manager Dave Morgan announced the budget workshop would conclude departmental presentations for the proposed FY 06/07 budget. He indicated the public hearing was continued to this date and comments would be taken prior to adoption of the budget. Public Works: Gary Johnson, Public Works Director, stated the engineering and operational proposed budget totaled $144 million and contained 249 full-time employees which was an increase of two from the current year due to transit planning efforts. He detailed achievements and accomplishments of the year, including capital projects and highlighted various programs and significant capital projects and their funding mechanisms for the coming year (specific details available in the Office of the City Clerk). Mayor Pringle asked how the 29 miles of slurry sealing compared to other years and Mr. Johnson indicated it was consistent with the last two years however he anticipated with Proposition 42 and the passage of Measure M Renewal, the City would redouble its efforts in maintaining local streets. Council Member Galloway asked for clarification on capital improvement expenditure actuals for 2004/05 versus the 05/06 adopted and 06/07 proposed budgets. Bill Sweeney commented he did not think the numbers were indicative of any fallout in the capital program but reflected the way projects were budgeted. Uncompleted projects had funds encumbered by the end of each fiscal year and were not reappropriated the following year. Additionally some capital projects could take two to three years to complete and those funds would be carried over in the appropriate budget year. Mr. Johnson added he would provide a report to Council on the newly budgeted capital projects for the last few years, commenting he believed it would show the department was fairly consistent with the capital improvements program. Mayor Pringle added he would like to see a list of projects relating to the $28 million expended in 04/05 as well as a project list for 05/06 and 06/07. Related to sewer fee increases, Council Member Sidhu questioned the yearly increases. Mr. Johnson replied over the last four years, when there was a lot of activity under the wastewater permit in a year, adjustments to the sewer fee were necessary and in a year in which there was not much activity, there would only be a CPI increase. Council Member Sidhu asked how street paving was determined and Mr. Johnson indicated the City had a pavement management program in which arterial streets were evaluated and tested every two years and local streets every four ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 2 years and a pavement condition index was developed. He added the department's software provided a number of strategies based on the condition of the streets, the amount of funds available and what the system would look like if certain amounts of funds were invested. Mayor Pringle emphasized the various competitive grants and other programs dedicated for certain types of street resurfacing to safety programs used by Public Works which may determine how priorities were set. He thanked Gary Johnson for his efforts in pursuing funding to assist with the Gene Autry bridge project stating it had been awarded yesterday. Community Services: Terry Lowe, Community Services Department, remarked that 22 percent of his budget was devoted to parks, 27 percent to recreation, human and neighborhood services, 25 percent to library services, 15 percent to capital improvements and 1 percent to administration and totaled $38.6 million. He detailed the Department accomplishments and achievements for the current year and highlighted plans for the coming year. Mayor Pringle emphasized the services provided by volunteers and non-profit groups that partnered with the City which allowed the Department to maximize their resources. Council Member Galloway asked how the scholarship program worked and Mr. Lowe responded that no one was turned away from services advertised in the Department brochure if they were unable to pay. The Anaheim Community Foundation acted as the fiscal agent for processing funds, some of which came from employee payroll deductions who earmarked their donations for that purpose and the funds were split between seniors and families and youth scholarships, about $25,000 a year. An individual could apply for a maximum of $150 of credit per year for Community Services programs. Council Member Galloway asked for information on the WIC program. Mr. Lowe stated the Women, Infant, and Children (WIC) program helped low income families to have healthy babies through pre and post-natal care. Council Member Chavez remarked he was impressed with the compassion of the Community Services staff and the ability to provide so much in terms of services and programs with minimal increases to the budget. Council Member Sidhu asked how many of the parks would be lighted. Mr. Lowe indicated security lighting was upgraded on an annual basis, about five parks a year. Field lighting, he remarked, had taken a significant jump forward due to the task force which prioritized resources for that function and he listed those parks scheduled for field lighting. Council Member Sidhu asked if the department was lighting any of the school playgrounds and Mr. Lowe informed Council that was in the planning stage and he was currently in negotiation with Orange Unified School District to light Canyon High School basketball courts and softball field as well as the baseball field and soccer fields at EI Rancho Jr. High. He added at this point, only the design was in the budget. Mayor Pringle remarked he appreciated the department's use of non-profit organizations seeking to provide services by partnering with them and encouraged the department to find additional good non-profit organizations to leverage public funds; Mr. Lowe responded that currently there were 70 active collaborations occurring where the City was a member of a larger organization. Mayor Pringle also encouraged continuing to work with the school districts to maximize the community's use of school properties. At 3:00 P.M., Mayor Pringle adjourned the June 13, 2006 regular adjourned meeting and called to order the regular meeting of June 20, 2006. Public Utilities: Marcie Edwards, General Manager, reported the Utilities Department was an enterprise department managing both the operations and capital budget for a water and power business. The total proposed budget was $500 million, $380 million reflected as operating costs, an increase of $26 million due to labor increases and purchased power costs, and a $119 million capital budget, decreased from the current year by $109 million. She added the department employed 349 full-time personnel and 38.8 part-time (full-time equivalents) and was requesting to ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 3 increase staff by 12 full-time positions. Mayor Pringle asked that in the future the total number of part-time staff be reflected in parenthesis next to the full-time equivalent figure. She highlighted the accomplishments and achievements for the year, the various programs and services offered, and explained in detail the future plans of the department. She ended her presentation noting Anaheim had the lowest electric rate than any city in Southern California and was among the lowest 20 percent water rates in Orange County. Details of the Public Utilities budget on file in the City Clerk's Office. Council Member Hernandez complimented the department on its prudent management and innovative capital investments and for its commitment to the quality of life and value to the citizens of Anaheim. Council Member Sidhu asked what the rate increase was for electricity and water last year and whether the projected revenues would reflect a rate increase for 06/07; Ms. Edwards responded a review of the years from 2000 to 2006 was being compiled in terms of increases and decreases and would be provided. She added the projection of revenue was based on weather variables, economic development, how much conservation element took place and the department staff had put much time and effort into revenue projection. Council Member Sidhu asked if the capital projects listed was based on revenue coming in or to be funded by floating a bond in 2007. Ms. Edwards stated it was typically based on electric reliability analysis of the system needs over a 5- 10-20 year time frame. She stated a capital plan and list was created and then integrated into the overall borrowing structure and the department tried to maintain a debt to asset ratio between 45- 50 percent. She added the lion's share was funded by borrowing and the department planned on borrowing approximately $300 million within the next three to four years, however, she pointed out over $200 million of debt would be paid off so the debt to asset ratio would remain the same. Mayor Pringle affirmed there was no base rate increase proposed due to long-term contracts which purchased power at a set price, however, he recognized there were fluctuating costs in the portfolio depending on how much power the City purchased or the cost of that power when it was bought. Ms. Edwards added the base rate had not been raised since 1993, but adjustments had been made for the variable cost. She noted the first 480 kilowatt hours on every resident's bill did not include a variable cost which translated to a huge benefit for residents. Council Member Galloway understood general funds were not budgeted for the Utility Department, but inquired whether the department transferred any monies to the general fund and Ms. Edwards replied per the City Charter, four percent of revenues from both water and power were transferred to the general fund as a fee for allowing the operation of a utility within the City. In addition, she added the department paid right-of-way fees and in total, transferred approximately $19 million. Mayor Pringle added that undergrounding of power lines on Anaheim's streets was also paid exclusively from the Utilities Department enterprise funds. Council Member Chavez remarked there had not been a single grievance filed in the past two years which was a tribute to how the department was managed and asked the Human Resources Director for an historical perspective over a five year period as to how departments fare in terms of grievances. Planning: Sheri Vander Dussen, Planning Director, stated the department was comprised of three divisions, the Building/GIS, Community Preservation/Licensing and Planning with 96 full-time employees and 28 part-time (19 full-time equivalents). She emphasized the accomplishments and ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 4 achievements of the department and explained in detail the proposed plans for 2006/07. Details of the Planning Department proposed budget on file in the Office of the City Clerk. Community Development: Elisa Stipkovich, Director of Community Development, reported the department consisted of redevelopment, housing, work force development as well as administration with 120 employees decreasing to 112. She indicated the total budget was $174.7 million. Mayor Pringle asked what percentage of those expenditures reflected general fund monies and Ms. Stipkovich replied there were none. Ms. Stipkovich highlighted the accomplishments and achievements for the current year and detailed the proposed programs and services for the following year, including capital outlay. Details of the Community Development budget on file in the Office of the City Clerk. Visitor & Convention Bureau: Charles Ahlers, Visitor and Convention Bureau, reported his proposed budget was $8.5 million, with 50 full-time employees and three part-time. He proposed adding two positions, an executive vice president for convention sales and marketing and an additional regional sales director located in Washington D.C. He detailed accomplishments and highlights for the past year as well as plans for the coming year. Specifics of the Visitor & Convention Bureau budget on file in the City Clerk's Office. Convention, Sports & Entertainment: Greg Smith, General Manager, stated the department managed the operations of the Convention Center, the Stadium, the Arena, and the Grove Theatre. He indicated the proposed budget was $39 million, a 5.5 percent increase over the current budget, and contained a $5.9 million capital expenditure. He highlighted entertainment and sporting successes for the year and provided details on future plans for the various facilities. Council Member Galloway asked why Arrowhead Pond had not been included in the operating budget and Mr. Smith indicated all improvements at the Pond were budgeted and paid for through the Anaheim arena management firm as the City had outsourced operation of this facility. Mayor Pringle confirmed that any revenue received from the Pond above $12 million would be reflected on the revenue side of the budget. He added that in the ten previous years, there had not been a recorded profit on the Pond. Any profit above $12 million earmarked for debt service, the City was to receive 20 percent. Council Member Galloway questioned the $200,000 profit budgeted for the Grove Theatre and Mr. Smith indicated the theater bore the risk of losses at $400,000 and shared 50/50 in any profits. Council Member Sidhu asked who paid for maintenance costs for the Pond; Mr. Smith responded maintenance was the responsible of the arena management who must meet City standards. He indicated the City was in the 3rd year of a lease with the ability to extend it seven additional years. He added to have a private company bear the risk of losing money, the City gave them a five year option to renew. . Mr. Morgan announced the departmental budget presentations were concluded pointing out the 2006/07 budget was a responsible budget that focused on the needs of the community and on the City Council's priorities. He added the Budget Advisory Commission reviewed the budget and unanimously voted to approval of the document. He noted the public would have an opportunity to comment on the budget during the public hearing portion of the Council agenda later in the evening. ADDITIONSIDELETIONS TO CLOSED SESSION: NONE PUBLIC COMMENTS ON CLOSED SESSION ITEMS: NONE ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 5 Mayor Pringle recessed to Closed Session at 4:50 P.M. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: City of Anaheim v. Angels Baseball, LP, et aI., Orange County Superior Court Case No. 05CC01902. 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: David v. Baker, et aI., United States District Court Case No. SACV 02-827 AHS (ANx) 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: Williams v. Superior Court of Orange County, et aI., Orange County Superior Court Case No. 04NF2856. 4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: Safeco Insurance Company of America v. City of Anaheim, Orange County Superior Court Case No. 06CC03241. 5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: San Diego Gas & Electric Company, et al. v. Southern California Edison Company, Ecolochem Arbitration. 6. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to subdivision (b) of Government Code Section 54956.9) Number of potential cases: one or more. Existing facts and circumstances: significant land movement and property damage to the properties located at 357, 365 and 373 Ramsgate Drive. 7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 2695 East Katella Avenue, Anaheim, California Agency negotiator: Dave Morgan Negotiating parties: City of Anaheim and Anaheim Arena Management, LLC Under Negotiation: terms of agreement 8. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Approximately 53 acres generally northerly of Angel Stadium of Anaheim, 2000 Gene Autry Way, Anaheim, California Agency negotiator: Dave Morgan Negotiating parties: City of Anaheim, Anaheim Redevelopment Agency and the National Football League Under Negotiation: Price and terms ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 6 Mayor Pringle reconvened Council session at 5:35 P.M Invocation: Pastor Mark Bove, Calvary Chapel Anaheim FlaQ Salute: Mayor Pro Tem Chavez Presentations: Recognizing Jesse Luchansky on being named one of Fullerton College's Men of Distinction - Diane Reed, Orange County Register, commented on Jesse Luchansky's accomplishments and introduced him to the community. Recognizing winners of the City's First Annual Photo Contest - Contest winners were recognized and introduced by John Nicoletti, Public Information Officer. Recognizing Ray Martinez, American Disc Jockey Hall of Fame - Council Member Galloway honored Ray Martinez on being named to the Disc Jockey Hall of Fame. Acceptance of Other RecoQnitions (to be presented at a later date): Recognizing California Restaurant Association Recognizing EarthLink Municipal Networks Recognizing Lennar Homes Recognizing Lisa Tucker Sara Wolfhaven thanked Council for the recognitions, stating they would be presented to the recipients during the Taste of the City event to be held on June 29th. At 5:51 P.M., Mayor Pringle called to order the Anaheim Redevelopment Agency and the Anaheim Housing Authority for a joint public comment session. ADDITIONSIDELETIONS TO ANY OF THE AGENDAS: NONE PUBLIC COMMENTS (ALL MATTERS EXCEPT PUBLIC HEARINGS): William Fitzgerald, Anaheim HOME, spoke in opposition to renewal of Measure M. Amen David demonstrated support for a professional football league locating to the City of Anaheim. Darrell McGinnis, Business Development Manager for Bomell Construction Company, spoke in support of a National Football League (NFL) team in Anaheim, citing increased economic benefits to the community. Shaboua Berke, mental health worker, supported the Jamboree Housing Corporation project to house the homeless and/or people with mental challenges. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 7 Bobby Lee Flores related comments on gangs, drugs and other issues. James Robert Reade addressed the cost of police misconduct. Martin Lopez spoke in support of bringing professional football back to Anaheim, also citing the economic gains to be received, and asking to be part of the process. Kathryn Acker, spoke against the Jamboree Housing project, stating the property should be used as a park for children who needed a safe place to play. Fernando Negrete, president of Anaheim Firefighters Association, expressed support for an NFL franchise in Anaheim. Paul Kott, opposed the Jamboree Housing project, stating the density was too great for the neighborhood. Ryan Christianson, continuing with Paul Kott's letter of opposition to Item 2, indicated the project was 90 percent comprised of studio and one-bedroom units and did not meet the Council direction for establishing family housing and would also negatively impact visitors' first impressions of the City. Stan Polowski, resident, objected to the lack of notice given to adjacent residents of the proposed Jamboree Housing project and to the density of the project which would impact surrounding property values. Eileen McCarthy, representing clients of the Public Law Center, supported both the return of a NFL team to Anaheim and the Jamboree Housing project which would fill a strong need. Cesar Covarrubias, Kennedy Commission, spoke in support of a national football team locating to Anaheim and of the economic benefits the community would receive. He also supported the Jamboree Housing Corporation stating the firm was a quality developer and pointed to other successful developments in place. Paul Flanagan, co-chairman of Committee for Living Wage, supported the Jamboree Housing project which addressed needs for those who ordinarily had no voice in the political process. Eric Altman, Orange County Communities Organized for Responsible Development, asked to be part of the dialogue in encouraging an NFL team to return to Anaheim and also strongly supported affordable housing for very low income and special needs individuals. Art Montez, Trustee and current board president of Centralia School District, spoke of the economic benefits in having a quality NFL team located in Anaheim and how the character and substance of such an organization could affect the community. Mayor Pringle remarked the Los Angeles Times and the Orange County Register had a distorted picture of what was occurring in negotiations with an NFL team for Anaheim. He reiterated the City was still in negotiations with a private entity to locate to Anaheim and build a stadium facility with their own funds and Council's intent was not to establish greater hurdles by asking the NFL to negotiate with entities other than the City ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 8 Bob Morris, resident, opposed Item #2, citing density and because the community had not been informed of the project in advance. Joyce Morris, resident, spoke in opposition to Item #2, citing there had been no advance notification of the project, it was too dense for the neighborhood and she had concerns with housing individuals with mental illness in close proximity to schools Barbara Selleck, resident, opposed Item #2, stating the proposal was not compatible with current usage in the surrounding area. Bill Taormina, resident, also opposed the development, stating the Jamboree Housing project would negatively impact the adjacent neighborhoods due to its density. He recommended partnering with neighboring cities to provide a regional solution on a broader scale. Robert Cueva opposed the Jamboree Housing project believing it would cause a disruption in the neighborhood. Mayor Pringle clarified that under state law, any private individual or organization could purchase residential property anywhere in the city and house up to six residents who could be parolees, people of special needs, individuals transitioning from halfway houses or shelters or people with mental challenges and cities would have no control over their locations. Molly Stansberry, a Junior high school student speaking in opposition to Item #2, expressed fear at having a home for special needs persons in her neighborhood. Pierre Tranh, resident, spoke in support of the Jamboree project and against discrimination of who were disabled due to mental illness. Dane Lybarton, resident, supported Item #2, pointing to other similar successful projects such as Jackson Aisle in Midway City, and emphasized the need for this type of housing for a population that was stigmatized and underserved. Teresa Boyd, former resident, indicated Section 8 housing assistance enabled her to live in a safe, secure environment and hoped the Diamond Aisle project would give others a chance as well. Joanna Gullick, Director of Housing for the developer, stated Jamboree Housing Corporation was sensitive to developing in existing neighborhoods and designed their projects to be compatible with adjacent residential homes. She pointed out the allowable density for the Diamond Street site was 48 units, yet Jamboree had proposed 33 units which would keep the density lower and provide for ample parking in the neighborhood. She added the development would be low-rise, garden apartments with a substantial landscape buffer and parking would be segregated to one area so that it could be landscaped and screened. She indicated the company would be glad to hold a design workshop in the neighborhood in conjunction with the City for interested citizens. She added residents of the project would have on-site management, professional property management and a case manager to meet with weekly. Helen Cameron, stated HOMES, Inc. would be the partner providing service and support for clients in the Diamond Street project. She pointed to a home operating for special needs persons located on Clementine Street for 15 years which had never had a complaint from neighbors. She pointed out her organization was the developer of the Jackson Aisle facility in Midway City with a two-year ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 9 operating track record very much like the proposed project on Diamond Street. She emphasized the goal of her organization was to help the mentally ill experience success in their new homes and she would do everything it took to make them comfortable and continue to be good neighbors in the community. Lucy Brimbrella, care provider, reported she had owned and operated a 49-bed facility for those with mental illness at 289 North Wilshire Avenue and her clients had enjoyed activities at Pearson Park and taking morning walks through the neighborhood with no problems occurring. She felt education and outreach efforts were needed for the public to understand how these homes operated. Laura Archuletta, President of Jamboree Housing Corporation, stated Jamboree had 4,700 units throughout the state of California, all affordable housing with an average household income of $19,000 a year. She indicated Jamboree focused on very low, extremely low and lower income household seniors and had approximately 15,000 residents living in their communities and assured the public the projects were designed for residents to have a better quality of life. She emphasized the units would not be substandard and the development would bring quality to the neighborhood. She recognized the concerns raised but pointed out statistics had shown affordable housing did not bring down home values and offered tours of existing facilities to help ease concerns raised. Mayor Pringle asked why this decision was made to transition from family affordable units to units serving special needs; Ms. Archuletta stated it was changed for two reasons: the size of the site and funding. Jamboree felt a home for special needs was a more appropriate fit for the site. If two and three-bedroom units were built, there would be increased parking and increased traffic as a result. In addition, State mental health funds had become available. She added it was not totally a finance-driven decision as Jamboree had five sites under contract which could have been utilized for a special needs complex. She agreed that providing homes for the mentally ill was a regional issue but felt a 30-40 unit development was more appropriate than a 200-unit facility. Mayor Pringle asked for clarification of the management and oversight process; Ms. Archuletta indicated a thorough screening of all residents was done, including criminal background checks and for this project, Jamboree would not accept parolees or sex offenders or any individuals with a criminal violence history. She added the property would be retained by Jamboree House in perpetuity and the affordability of those units would remain in perpetuity. She noted the resident services program would provide case management but also computer learning, budgeting, and banking. William Kott, resident, opposed the Jamboree project, stating the site was not appropriate for the development and urged members of the Housing Authority to deny the project. . Scott Darrell, volunteer member of Board of Directors of Jamboree Housing, spoke in support of the Jamboree project. On a personal basis, he spoke of his mother's struggles with mental illness and her trying to work and provide a home for him without the resources that were now available. He recommended more outreach and education on this issue be provided to the community at large. Alma Ramirez supported an NFL team relocating to Anaheim. Cynthia Ward, resident, pointed out neighbors had just learned of the Jamboree project on this date and felt they needed more information before action was taken to approve the project. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 10 At 7:34 P.M., with no other public comments offered, Mayor Pringle recessed the Anaheim Council meeting to consider the Anaheim Redevelopment Agency agenda. Council session was reconvened at 8:23 P.M. CONSENT CALENDAR: Council Member Hernandez removed Item No. 33 from the consent calendar for further discussion. Council Member Sidhu removed Item No. 23. Council Member Hernandez moved to approve the balance of the consent calendar Items 4 - 39, seconded by Council Member Chavez to waive reading in full of all ordinances and resolutions and to approve the following in accordance with the reports, certifications and adopt the consent calendar. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 4. Receive and file the Budget Advisory Commission recommendation, minutes of Workforce B 105 Investment Board dated April 13, 2006, Housing and Community Development Commission D117 of June 7,2006, Portfolio Report May 2006, and Library Board of May 8,2006. 5. Approve the amendment to agreement with Stantec Consulting, Inc., for consulting design 3062 services for the Katella Avenue Smart Street Project in an amount not to exceed $410,000. 6. Approve Agency-State Agreement for the Federal Aid Projects No. 12-5055, Program 1654 Supplement Nos. 119-M, 120-M, 121-M, 122-M 123-M, and 124-M. 7. Approve an increase to the Department of Public Works' general fund expenditure D175 appropriation by $300,000 for Fiscal Year 2005/2006. 8. Approve an agreement with Orange County Sanitation District for food service 4077 establishment inspections at an estimated annual cost of $45,000. 9. Approve the Acquisition Agreement for the purchase of real property located at 104 East 4078 Leatrice Lane and authorize the acquisition payment of $41,086 to Aynem, Investments. L. P. for the Gene Autry Way (West)/1-5 Freeway Highway Project (R/W ACQ 2003-00159). 10. Approve the Final Map of Tract No. 16679, which is located on the north side of Broadway, P178 between Clementine Street and Lemon Street, and authorize the City Clerk to execute same. 11. Accept the bid of Signature Floor Covering, in the not-to-exceed amount of $132,840 for D180 carpet installation services for the Public Works Department, Facility Services Division for a period of two years, with three, one-year optional renewals, and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid # 6743. 12. Approve and authorize the Finance Director to execute the renewal of the CGI-AMS 1677 software support, maintenance and professional services agreements for a two-year period 2760 commencing July 1, 2006 through June 30, 2008. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 11 13. Accept the low bid of Demirer Kablo, c/o Mass International Corporation, in the not-to- D180 exceed amount of $1,130,238 (including tax) for 69kV cable for the Public Utilities Department, all in accordance with Bid #6779. 14. Authorize the Purchasing Agent to issue purchase orders in an amount not-to-exceed D 180 $3,262,750 (plus applicable taxes) for the purchase of various vehicles and equipment for City departments for Fiscal Year 2006/2007. 15. Accept the low bids from Heli-Mart, Incorporated, and Civic Helicopters, Incorporated, for D 180 purchase orders in the not-to-exceed amounts of $102,400 and $25,600, respectively for Police Department helicopter replacement parts for a period of one-year beginning July 01, 2006 with three, one-year options to renew, and authorize the Purchasing Agent to exercise the optional renewals, all in accordance with Bid #6769. 16. Authorize an increase of $50,827 to the Master Agreement with Roto Industries, D180 Incorporated, resulting in an annual not-to-exceed amount of $171 ,000. 17. Approve the first amendment to the Facility Management Agreement between the City and 1464 Anaheim Arena Management, LLC, amending Section 10.2 thereof concerning naming rights to the arena facility. 18. Review the need for continuing the local emergency heretofore proclaimed by the Director D175 of Emergency Services as ratified by City Council Resolution No. 2005-17, and the subsequent orders issued pursuant thereto, concerning land movement and property damage in the vicinity of 357,365 and 373 Ramsgate Drive and the Hidden Grove Lane/Fox Glen Drive area in the City of Anaheim, and, by motion, determine that the need for continuing the local emergency exists. 19. Approve the first amendment to agreement with ASM Enterprises, Inc., for concessionaire 2745 services at Dad Miller Golf Course, exercising the option with the original agreement to extend the term by five years. 20. Approve a Memorandum of Understanding Agreement between the City of Anaheim and 1771 Los Angeles SMSA Limited Partnership (d.b.a. Verizon Wireless) for the purpose of continuing Verizon Wireless' use of their existing telecommunication tower at Riverdale Park until December 31,2006, and allow the Community Services Director, on behalf of the City, to extend the terms of the Memorandum of Understanding, on a month to month basis, should conditions develop requiring an additional extension to the MOU. 21. Increase the Fire Department's Fiscal Year 2005/2006 budget in the amount of $924,500 D129 for unexpected overtime costs and purchase of Class B uniforms. 22. Increase the Fire Department's Fiscal Year 2005/2006 budget for the Environmental D 129 Protection Section by increasing revenues and expenditures in the amount of $18,850. 24. Approve a one-year extension to the current franchise agreement with California Yellow F130 Cab Company. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 12 25. Approve a one-year extension to the current franchise agreement with A Taxi Cab F130 Company. 26. Waive Council Policy 401 and approve an agreement with LandTime, Inc., in an amount of 4079 $94,800 for the implementation of a GIS based safety assessment software application for field data collection, reporting, and mapping. 27. Appoint Victor Kaleta or such other person as selected by the City Attorney as Hearing D 112 Officer to conduct an appeal hearing for the Public Nuisance Order to Abate at 349 South Ramsgate Drive, Anaheim to remove debris located on the property. 28. Appoint Victor Kaleta or such other person as selected by the City Attorney as Hearing C112 Officer to conduct an appeal hearing for the Public Nuisance Order to Abate at 373 South Ramsgate Drive, Anaheim to remove debris located on the property. 29. Approve the Public Utilities Department Fiscal Year 2005/2006 net write-off of uncollectible D182 customer accounts totaling $390,587. 30. Approve the proposed Five-Year Underground Conversion Plan for Fiscal Years 2006-07 to D182 2010-11 (Proposed Plan). 31. Approve an agreement with R. W. Beck to prepare and complete, a cost of service study for 4080 the water utility, develop and complete electric and water retail rate options, and provide rates and cost of service training assistance to the department's Financial Services Division in an amount not to exceed $99,000, and authorize the Public Utilities General Manager, to execute the agreement and related documents, to take such actions as are necessary to implement the agreement. 32. Approve and authorize the Public Utilities General Manager to execute a purchase 4081 agreement with Tantalus Corporation for a Network Controller and Server for $63,500, plus 4082 annual maintenance fees of $9,325 for the Network Controller and Server commencing 12 months after purchase, and approve an agreement with Access Spectrum in the amount of $25,330 for the use of one frequency in the 220 - 222 MHz band for a five-year period. 34. RESOLUTION NO. 2006-126 A RESOLUTION OF THE CITY COUNCIL OF THE P124 CITY OF ANAHEIM ACCEPTING CERTAIN DEEDS CONVEYING TO THE CITY OF ANAHEIM CERTAIN REAL PROPERTIES OR INTERESTS THEREIN. (CITY DEED NOS. 10970 AND 10971). 35. RESOLUTION NO. 2006-127 A RESOLUTION OF THE CITY COUNCIL OF THE P124 CITY OF ANAHEIM ACCEPTING CERTAIN IRREVOCABLE OFFERS OF DEDICATION TO THE CITY OF ANAHEIM OF CERTAIN REAL PROPERTIES OR INTERESTS THEREIN. (TRACT MAP NOS. 15565, 16672 AND PARCEL MAP NO. 90-224). 36. RESOLUTION NO. 2006-128 A RESOLUTION OF THE CITY COUNCIL OF THE P110 CITY OF ANAHEIM DECLARING ITS INTENTION TO VACATE CERTAIN PUBLIC STREETS, HIGHWAYS AND EASEMENTS. (Abandonment No. ABA 2006-00132) Public Hearing scheduled for July 25, 2006. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 13 37. RESOLUTION NO. 2006-129 A RESOLUTION OF THE CITY COUNCIL OF THE ARA CITY OF ANAHEIM ACKNOWLEDGING RECEIPT OF THE REPORT TO CITY COUNCIL AND RELATED DOCUMENTS FROM THE ANAHEIM REDEVELOPMENT AGENCY PERTAINING TO THE PROPOSED AMENDMENT OF THE ANAHEIM MERGED PROJECT THROUGH AMENDMENTS TO THE CONSTITUENT EXISTING REDEVELOPMENT PLANS FOR THE ALPHA, RIVER VALLEY, PLAZA, COMMERCIAL! INDUSTRIAL, AND A PORTION OF THE WEST ANAHEIM REDEVELOPMENT PROJECT AREAS OF THE ANAHEIM MERGED PROJECT; AND CONSENTING TO AND CALLING FOR A JOINT PUBLIC HEARING WITH THE AGENCY (See Agency Item #1) 38. RESOLUTION NO. 206-130 A RESOLUTION OF THE CITY COUNCIL OF THE D160 CITY OF ANAHEIM AUTHORIZING THE DESTRUCTION OF CERTAIN CITY RECORDS MORE THAN TWO YEARS OLD. (Police Department) 39. RESOLUTION NO. 2006-131 A RESOLUTION OF THE CITY COUNCIL OF THE D159 CITY OF ANAHEIM DECLARING JULY 1 THROUGH JULY 14, 2006, AS "FREEDOM DAYS" IN ANAHEIM. END OF CONSENT CALENDAR: 23. Approve company name change from Yellow Cab of Greater Orange County to the parent F130 company of Tectrans, Inc., and approve a one-year extension to the current franchise agreement with Tectrans, Inc. Council Member Sidhu requested clarification on this item; Mr. Schlagel of Yellow Cab indicated it was a reorganization as Tectrans was buying Yellow Cab which would become a subsidiary of Tectrans. He indicated that some of the staff in the various companies who were non-participants would be leaving as they were more interested in distributions rather than growth and operations and that Yellow Cab would not own a majority ownership but would have a part interest which he expected would result in providing better, more efficient service. Council Member Sidhu requested the City Attorney to explain the franchise transfer. Mr. White, City Attorney, responded the cab service was operating under a franchise agreement and regardless of whether Mr. Schlagel was a majority or minority owner, the franchise specified the criteria and service standards which must be complied with to provide first class service to the community. In that regard, Council and the community would be assured of continuing to receive the same quality service. He added that with the approval of this item, Council would be approving the transfer of ownership to the parent company, Tectran, and would also be granting a one-year extension. He added the franchise agreement was for five years with five one-year extensions terminating in 2010. Council Member Sidhu moved to approve Item No. 23, seconded by Council Member Chavez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 33. Approve an agreement between the City of Anaheim and the City of Orange to have 4083 Anaheim provide fire /sprinkler water service to Building "A" of the proposed Archstone Gateway Apartments ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 14 Council Member Hernandez stated this agreement was a result of a unique circumstance; a sprinkler system in the City of Anaheim serviced a building in the City of Orange and asked staff to explain the situation. Don Calkins, Assistant General Manager, Utilities Department. stated there were three buildings, one totally within Anaheim limits, one within the City of Orange and one that straddled the City limit boundaries. For the building that straddled the City limits, staff was proposing with the concurrence of both Anaheim and Orange fire departments, for fire water service for that particular building to be provided by the City of Anaheim. Council Member Hernandez moved to approve Item No. 33, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 40. Appointment/re-appointment of Board and Commission members with terms that expire B105 June 30, 2006. REAPPOINTMENTS WITH TERMS TO EXPIRE JUNE 30, 2010: Mayor Pringle acknowledged there were a number of appointees whose terms were ending June 30th and had expressed an interest in continuing to serve for another term. In addition, there were also appointments in which individuals had exhausted their two terms and were no longer entitled to continue to serve. Mayor Pringle indicated if Council Members wished to renominate a current appointee, they could do so at this time. Council Member Sidhu requested that each Council Member have the opportunity to appoint one individual to the various boards and commissions in order to have representation from each; Mayor Pringle preferred the current process. BUDGET ADVISORY COMMISSION: (Patrick Pepper) Council Member Galloway nominated Patrick Pepper, seconded by Council Member Chavez. No other names were offered for consideration. Roll call vote: Ayes - 4; Mayor Pringle, Council Members: Chavez, Galloway, and Hernandez. Noes - O. Abstention - 1: Council Member Sidhu Motion carried and Patrick Pepper was reappointed, term to expire June 30, 2010. COMMUNITY CENTER AUTHORITY: (Paul Kott, Pat Carroll removed from consideration at this time) Council Member Hernandez moved to reappoint Paul Kott, seconded by Mayor Pringle. No other nominees were offered. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried and Paul Kott was reappointed to a terms to expire June 30, 2010. COMMUNITY SERVICES BOARD: (Consuelo Pambid-Stout, Ashleigh Aitken, Michael Milliman, Natalie Rubalcava) Council Member Galloway moved to reappoint Consuelo Pambid-Stout, seconded by Council Member Chavez. Mayor Pringle moved to reappoint Ashleigh Aitken, seconded by Council Member Chavez. Council Member Chavez moved to reappoint Michael Milliman and Natalie Rubalcava, seconded by Council Member Galloway. With no other nominees offered for the Community Services Board appointments, it was the consent of Council to move all four appointments under one action. Roll call vote: Ayes - 4; Mayor Pringle, Council Members: ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 15 Chavez, Galloway, and Hernandez. Noes - 1; Council Member Sidhu. Motion carried and Consuela Pambid-Stout, Ashleigh Aitken, Michael Milliman and Natalie Rubalcava were reappointed to terms which will expire June 30, 2010 . CULTURAL & HERITAGE COMMISSION: (Concha Flores) Council Member Chavez moved to reappoint Concha Flores, seconded by Council Member Galloway. No other nominees were offered. Roll Call vote: Ayes - 3: Mayor Pringle, Council Members Chavez and Galloway. Noes - 2; Council Members Hernandez and Sidhu. Motion Carried and Concha Flores was reappointed to a term to expire June 30, 2010. HOUSING & COMMUNITY DEVELOPMENT COMMISSION (HCD): (Margaret Patino, Seferino Garcia) Mayor Pringle remarked Margaret Patino had represented the south district on the HCD Commission and that it had taken a year to organize the south neighborhood council. Ms. Stipkovich indicated Ms. Patino had submitted her name for the HCD Commission and she was involved in the south neighborhood council and Sefarino Garcia was an at large appointee to the neighborhood council. Council Member Chavez moved to reappoint Ms. Patino and Mr. Garcia, seconded by Mayor Pringle. No other names were offered. Ayes - 3: Mayor Pringle, Council Members Chavez and Galloway. Noes - 2; Council Members Hernandez and Sidhu. Motion Carried and Margaret Patino and Seferino Garcia were reappointed to terms which will expire June 30, 2010. LIBRARY BOARD: (Carolyn Bryant) Mayor Pringle moved to reappoint Ms. Bryant, indicating she had been recently appointed by a unanimous vote of Council and had served less than a year, seconded by Council Member Chavez. No other names were offered. Roll Call vote: Ayes - 3: Mayor Pringle, Council Members Chavez and Galloway. Noes - 2; Council Members Hernandez and Sidhu. Motion Carried and Carolyn Bryant was reappointed to a term to expire June 30, 2010. PARK & RECREATION COMMISSION: (Samantha Navarro, Larry Herschler) Mayor Pringle moved to reappoint Samantha Navarro, seconded by Council Member Galloway. There was also a motion and a second to reappoint Larry Herschler with no other nominees offered. Roll Call vote: Ayes - 3: Mayor Pringle, Council Members Chavez and Galloway. Noes- 2; Council Members Hernandez and Sidhu. Motion Carried and Samantha Navarro and Larry Herschler were reappointed to terms that will expire June 30, 2010 PLANNING COMMISSION: (Panky Romero, Kelly Buffa) Mayor Pringle moved to reappoint Panky Romero and Kelly Buffa, seconded by Council Member Galloway. No other nominees were offered. Roll Call vote: Ayes - 3: Mayor Pringle, Council Members Chavez and Galloway. Noes - 2; Council Members Hernandez and Sidhu. Motion Carried and Panky Romero and Kelly Buffa were reappointed to the Planning Commission, terms to expire June 30, 2010. PUBLIC UTILITIES BOARD: (Charles Peltzer) ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 16 With no motion to reappoint, Mayor Pringle continued this item to July 11, 2006. SENIOR CITIZEN COMMISSION: (Constance Dunay, Madeline Jensen) 3 year terms to expire June 30, 2009 Council Member Chavez moved to reappoint Constance Dunay and Madeline Jensen, seconded by Council Member Galloway. No other nominees were offered. Roll Call vote: Ayes - 3: Mayor Pringle, Council Members Chavez and Galloway. Noes - 2; Council Members Hernandez and Sidhu. Motion Carried and Constance Dunay and Madeline Jensen were reappointed to terms which will expire June 30, 2009. NEW APPOINTMENTS TERMS TO EXPIRE JUNE 30, 2010: As no nominees were offered for the following appointments, Mayor Pringle continued them to July 11, 2006. INVESTMENT ADVISORY: (Jack Schrader) LIBRARY BOARD: (Burton Fink) PUBLIC UTILITIES BOARD: (Stephen Faessel) CULTURAL & HERITAGE COMMISSION: (Margaret LeVecke) SENIOR CITIZEN COMMISSION: (Rene Alonso) 3 year term to expire June 30, 2009 (Carol Morrow) fill unexpired term to expire June 30, 2007 5:30 P.M. PUBLIC HEARINGS: D106 This is a public hearing to consider approval of the Fiscal Year 2006/2007 budget, budget appropriation limits for the City and its three Community Facilities Districts, and changes in various fee schedules. A. RESOLUTION NO. 2006-132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2006/07. B. RESOLUTION NO. 2006-133 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-1 (SYCAMORE CANYON) ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2006/07. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 17 C. RESOLUTION NO. 2006-134 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-2 (THE HIGHLANDS) ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2006/07. D. RESOLUTION NO. 2006-135 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, ADOPTING THE COMMUNITY FACILITIES DISTRICT NO. 1989-3 (THE SUMMIT) ANNUAL APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2006/07. E. RESOLUTION NO. 2006-136 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REVISING FEES FOR SERVICES RENDERED BY THE ANAHEIM CITY CLERK'S DEPARTMENT. F. RESOLUTION NO. 2007-137 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES TO BE CHARGED FOR COMMUNITY SERVICES DEPARTMENT PROGRAMS AND SERVICES COMMENCING ON SEPTEMBER 1, 2006. G. RESOLUTION NO. 2006-138 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND ADOPTING THE RECOMMENDATION OF THE LIBRARY BOARD OF THE ANAHEIM PUBLIC LIBRARY TO ESTABLISH AND/OR INCREASE CERTAIN FINES AND FEES. H. RESOLUTION NO. 2006-139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADJUSTING THE AMOUNT OF THE FEE FOR THE PUBLIC LIBRARY FACILITIES PLAN FOR THE EAST SANTA ANA CANYON AREA. I. RESOLUTION NO. 2006-140 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADJUSTING THE AMOUNT OF THE PARK IN-LIEU FEE FOR THE PLATINUM TRIANGLE AREA AND RESCINDING RESOLUTION NO. 2005-235. J. RESOLUTION NO. 2006-141 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADJUSTING THE AMOUNT OF THE PARK IN-LIEU FEE AND RESCINDING RESOLUTION NO. 2005-234. K. RESOLUTION NO. 2006-142 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING A SCHEDULE OF RATES TO BE CHARGED FOR RENTAL OF SPACE AND FOR CERTAIN LABOR, EQUIPMENT AND SERVICES AT THE ANAHEIM CONVENTION CENTER. L. RESOLUTION NO. 2006-143 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM REVISING FEES FOR SERVICES RENDERED BY THE ANAHEIM FIRE DEPARTMENT AND ESTABLISHING THE EFFECTIVE DATE OF FEES. M. RESOLUTION NO. 2006-144 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING NEW FEE AND RATE SCHEDULES FOR BUILDING, CONSTRUCTION, GEOGRAPHIC INFORMATION SYSTEM (GIS), AND ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 18 NATIONAL POLLUTANT DISCHARGE ELMINATION SYSTEM (NPDES) PERMITS, SERVICES AND ACTIVITIES. N. RESOLUTION NO. 2006-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING CERTAIN FEES RELATING TO COMMUNITY PRESERVATION ACTIVITI ES. O. RESOLUTION NO. 2006-146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING FEES AND RATES FOR COMMUNITY PRESERVATION INSPECTIONS AND GRAFFITI ABATEMENT. P. RESOLUTION NO. 2006-147 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING NEW FEE AND RATE SCHEDULES FOR PLANNING, ZONING, AND ENVIRONMENTAL PETITIONS, APPLICATIONS, PERMITS, APPROVALS, APPEALS AND INSPECTIONS. Q. RESOLUTION NO. 2006-148 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING AND AMENDING FEES TO BE CHARGED FOR CERTAIN SERVICES PROVIDED BY THE ANAHEIM POLICE DEPARTMENT. R. RESOLUTION NO. 2006-149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ESTABLISHING PUBLIC SAFETY FACILITIES AND VEHICLE AND EQUIPMENT IMPACT FEES FOR NEW AND EXPANDED DEVELOPMENT IN THE PLATINUM TRIANGLE MIXED USE (PTMU) OVERLAY ZONE. S. ORDINANCE NO. 6027 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM ADDING CHAPTER 17.36 TO TITLE 17 OF THE ANAHEIM MUNICIPAL CODE ESTABLISHING PUBLIC SAFETY FACILITIES AND VEHICLE AND EQUIPMENT IMPACT FEES FOR NEW AND EXPANDED DEVELOPMENT IN THE PLATINUM TRIANGLE MIXED USE (PTMU) OVERLAY ZONE. r. RESOLUTION NO. 2006-150 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING NEW FEE SCEDULES FOR THE PUBLIC WORKS DEPARTMENT OF THE CITY OF ANAHEIM. U. RESOLUTION NO. 2006-151 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING A REVISED SCHEDULE OF SANITATION CHARGES FOR SOLID WASTE. V. RESOLUTION NO. 2006-152 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING A REVISED SCHEDULE OF SANITATION CHARGES FOR WASTEWATER. Mayor Pringle opened the public hearing for comments on the City's proposed budget. Patrick Pepper, Budget Advisory Commission, acknowledged the exemplary work done on the City's budget by staff, noting the Budget Advisory Commission had reviewed it and recommended approval. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 19 With no other comments offered, the hearing was closed. Council Member Galloway asked for a presentation on the increase in fees related to Item F. Community Services Director Terry Lowe indicated Item F was in keeping with a long-standing policy in the city to limit fee increases to changes in costs to provide a service. The exception to that, he stated, would be classes put on by contractors who set fees according to the market. He added the cost of taking a class or renting a room in one of the City's facilities was not borne by the general taxpayer. Council Member Galloway asked for a brief presentation on the fees and charges for the convention center. Mr. Ahlers stated those fees were based on the rental of the facility and recovery of any services provided by the city. He added the rental fee for the convention center arena increased by $1,000 a year and included the option for the City to charge a surcharge for public events hosted in the arena. He added it was necessary to establish that ticket charge as most arenas had for public events businesses. He indicated acts or certain groups would not allow the City to take any part of the gross ticket sales so the way the rent was derived through a ticket surcharge on all tickets sold. Other fee increases he remarked were to recover the increases in labor charges. Dave Morgan, City Manager, stated the convention fees were subject to what the market would bear and each year Greg Smith made a judgment call to recover his costs while maintaining competitiveness and if there was an opportunity to make a profit, he was encouraged to do so. Mayor Pringle pointed out any profit would go into new carpeting, exterior landscaping, building repair and maintenance and did not draw on the City's general fund. Mr. Ahlers agreed indicating that was how nearly $6 million in capital improvements were implemented. Council Member Sidhu questioned the planning services fee adjustments referred to in Item M stating a pre-filing application had increased 66 percent, reinstatements had increased almost 39 percent, and special circumstance of waiver and special tree removal had significantly increased. Sheri Vander Dussen stated the reason the pre-file application and reinstatement deposits had increased was to cover charges for services from the Public Works Department and from the Fire Department. She explained the initial deposit of $1 ,800 was not adequate to cover costs and by increasing the deposit, it decreased the City's costs to process invoices asking for replenishment of the deposits and increased efficiency by not having to stop work until deposits were replenished. Council Member Sidhu asked what types of projects would go thru a pre-file application and Ms. Vander Dussen indicated that every developer would file a discretionary application to go through a pre-file process. She added since Public Works had been drawing from the deposits. the majority of them exhausted the $1,800 and if there were any funds remaining, the applicant was reimbursed. Council Member Sidhu preferred to keep the pre-filing deposit at $1,800. Council Member Chavez pointed out there were decreases in other areas, and pointed to a 50 percent decrease in a conditional use permit for a church, a 41 percent decrease for telecommunications and no administrative review which was an attempt to be fair in the fee structure versus the actual cost. Ms. Vander Dussen replied staff had tried to be diligent in reviewing data to insure deposits were in line with typical charges. Council Member Sidhu questioned the hourly rate increase for building services plan checks and Ms. Vander Dussen responded that Council had made the decision to go to full cost recovery for planning fees several years ago. She indicated a consultant had been hired to develop a model program which included salary, burden, department overhead, some city overhead and certain programs and the department continued to use that model to adjust fees using current salaries and benefits. She added that even though the hourly rate goes up on which fees were based, most of the building charges turned out to be flat fees because they were based on a certain type of building type and ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 20 on data the department maintained with respect to hours. She emphasized in comparison to other fees charged by other Orange County building departments, Anaheim ranked in the middle. Referring to Item V, Council Member Sidhu remarked wastewater fees had been increasing with a three percent CPI in 03/04, another three percent CPI in 04/05 and now contained a 19 percent increase related to the FOG program implementation. He wondered whether all city residents should have to bear the rate increase for FOG implementation rather than limiting it to restaurants. Gary Johnson indicated there were a number of permit implementation requirements in those years and rates were increased for residential and commercial! industrial by a CPI percentage. He explained it was a user charge and if not funded in that manner would become an obligation of the general fund. The FOG program, he explained, was one of the obligations the City was required meet, developing a number of requirements, utilizing best management practices and working with the Sanitation District and other cities to develop an implementation plan. Council Member Sidhu felt it was not clear to homeowners how those funds were to be used. Gary Johnson remarked the City was turning 150 years old and when the central part of the City was developed, six-inch sewer lines were normal and customary for craftsmen bungalows that housed one family. Over time, with overcrowding and increased densities to neighborhoods over decades, deficiencies in the sewer system gradually developed. He stated it was now more urgent to address the deficiencies because there was a mandate under the City's permit to do an evaluation, which had been completed citywide, to identify the cost, a financing plan, an implementation plan and a mitigation schedule along with an annual update to the board. He explained that process was now underway. Council Member Sidhu asked if the City was looking to the future and if there was a plan in place for additional population increases. Mr. Johnson responded the plan was to build to the General Plan as it would be impractical to do anything less. He added there was no subsidy for development from residential, commercial or industrial users. He further added once the work was done and a subsequent general plan or incremental changes occurred in the City, staff would be mindful of any service impacts related to densities in general plan amendments taking place; Council Member Sidhu indicated he was not against these methods but felt the City should be looking at complete infrastructure smart growth. Council Member Hernandez moved to adopt the Fiscal Year 2006/07 budget, the budget appropriations and changes in the fee schedule by the approval of Resolutions 2006-132 through 2006-152 and with the introduction of Ordinance No. 6027, AN ORDINANCE OF THE CITY OF ANAHEIM ADDING CHAPTER 17.36 TO TITLE 17 OF THE ANAHEIM MUNICIPAL CODE ESTABLISHING PUBLIC SAFETY FACILITIES AND VEHICLE AND EQUIPMENT IMPACT FEES FOR NEW AND EXPANDED DEVELOPMENT IN THE PLATINUM TRIANGLE MIXED USE (PTMU) OVERLAY ZONE; seconded by Council Member Galloway. Council Member Chavez stated he was impressed by the amount of work staff did to insure the budget was on time and fiscally responsible. He thanked staff and the Budget Advisory Committee for their efforts. Mayor Pringle added the 2006/07 was a healthy budget with salary increases for virtually all employees and an expansion of capital projects addressing many needs that were overlooked in tight budget years. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. ANAHEIM CITY COUNCIL MEETING MINUTES June 20, 2006 Page 21 Report on Closed Session Actions: City Attorney Jack White reported there had been a $50,000 settlement unanimously approved by Council in the case of David et al vs. Baker et ai, US District Court Case #SACV02-827. In the case of Williams vs. Orange County Superior Court, OCSCC 04NF2856, he noted Council unanimously on this date authorized the city attorney to file a petition for hearing in the California Supreme Court concerning the filing of sealed declarations in support discovery motions. Council Communications: Council Member Sidhu commented on the June 20th anniversary of the adoption of the Great Seal of the United Stations and of the groundbreaking for the GardenWalk project and spoke of coming 4th of July celebratory events. Mayor Pringle and Council Members wished the community a safe and happy 4th of July. At 9:57 P.M., Mayor Pringle adjourned the meeting. RijeCtfUIlY sub ~~, Dep~yG~t)Clerk