Loading...
2008/06/10ANAHEIM CITY COUNCIL SPECIAL MEETING OF JUNE 10, 2008 REGULAR ADJOURNED MEETING OF MAY 13, 2008 HELD ON JUNE 10, 2008 and REGULAR MEETING OF JUNE 10, 2008 The special meeting of June 10, 2008 was called to order at 1:43 p.m. in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard A copy of the agenda for the Anaheim City Council meeting was posted on June 6, 2008 on the kiosk outside City Hall. PRESENT: Mayor Curt Pringle and Council Members: Lorri Galloway, Bob Hernandez, Lucille Kring and Harry Sidhu. STAFF PRESENT: City Manager Dave Morgan, City Attorney Jack White, and City Clerk Linda Andal. FISCAL YEAR 2008/2009 BUDGET WORKSHOP City Manager Dave Morgan commented briefly on the process for adoption of the budget including meeting Charter requirements and timeline for approvals. He stated the proposed budget for the coming fiscal year would continue to provide quality service to residents and visitors and focused on the concerns of the City Council (i.e., community, capital requirements, neighborhoods, services and economic vitality). The proposed budget for Fiscal Year (FY) 2008/09 totaled $1,325,409,248, adecrease of approximately 1.1 percent from the current budget and included 2,173 full-time (FT) positions, a net increase of 16 positions. There were two items Mr. Morgan recommended Council consider at its next meeting, one was for additional funding for the graffiti program of $300,000 from General Fund Reserves and the other referred to funding for the Rose Parade float ($150,000) and for the Halloween Festival ($50,000) from Convention Center reserves, if Council desired. He explained a working plan developed by staff, Anaheim Vision 2020, focused on recognizing Council's priority on community building initiatives, delivery of quality services and the importance of economic vitality stating this budget supported those areas with a number of initiatives. An additional five sworn positions had been funded, increasing the total count to 400. He emphasized the Department had gone from 335 filled positions to approximately 395 for an increase of 60 positions over the past four years. During that same time frame, additional civilian staff had been added as well and this year an information technology manager position was included to free up sworn staff. Further improvements in the Police Department over the past years included the opening of the Family Justice Center, completing the west Anaheim police station, expanded Homeland Security Bureau, increasing the volunteer program, creating a computer forensic unit with enhanced information technology, enhancing the Anaheim Police Athletic League (APAL) and the newly constructed helicopter facility. Item S June 10, 2008 Page 2 of 23 He pointed out the proposed budget continued the strong capital effort begun over the last several years with improvements to the park system, additional library facilities and continued improvements to the City's electric, water and traffic systems. The capital plan continued to address areas of importance to Council and residents. He reported that this plan included a joint library project with the school district at Ponderosa Park, improvements to the Anaheim Tennis Center, the Convention Center's possible expansion and renovation of parking areas and other various improvements, design and renovation of Glover Stadium at La Palma Park, development of park space around the perimeter of Burris Pit, including a Class I biking trail, landscaping fitness space and bird observation areas, and the demolition of existing improvements prior to remediation at Ross Park. Other projects included restriping and improvements at Angel Stadium parking lot to create a 50-acre development site and a major sewer rehabilitation project funded by sewer bonds. Other projects and programs embraced the 2417 lifestyle and increased citizen access to services and information via the on-line virtual city hall. He went on to describe some of the proposed programs and initiatives. In the area of economic vitality, he remarked the City's continued economic success was vital to provide necessary services for all and the Anaheim Canyon Business Center had become a key area of growth for the City and would continue to play a critical role in the development of future economic opportunity. He highlighted some of the initiatives the City was implementing to keep Anaheim a progressive and successful city. Finance Director Bill Sweeney provided an overview of the proposed budget including a national, state and county economic update. Overall, he pointed out, the economic indicators were reflective of a recessionary mode. For the proposed budget, he commented, the City was doing a combination of expenditure reductions and utilizing reserves to address the shortfall in operating revenues resulting from the current economy. The budget still continued existing service levels although all departments had been asked to tighten their belts. The budget provided for an additional five police officers, funding for improvements to parks, playgrounds and streets and maintained and maximized the City's assets. It also recognized future obligations and maintained sufficient reserves. The total City expenditures, he reported, were slightly over $1.3 billion, down from the current year. The General Fund was roughly 20 percent and Enterprise funds nearly 50 percent of the total budget. A full-time position comparison was provided, indicating 16 new positions had been added, nine in the Utilities Department and six in the Police Department with some additions and deletions in other departments. General Fund expenditures reflected $268.2 million, an increase of 4.3 percent from the current year. Of that amount, 61.4 percent was for police and fire personnel. General Fund revenues by category before any operating transfers occurred were $320.8 million, 30 percent Transient Occupancy Tax (TOT), 20.7 percent for sales and use tax and nearly 19 percent on property tax. He added Finance staff spends most of their time and effort monitoring those top three revenue sources as the key to balancing the budget. The TOT had a strong performance with the hotel and visitor population over the last 12 months and was projected to grow at a rate of 7 percent due to the remodeled Hilton and the new time share opening next year. Last year TOT finished at $83 million and was projected to end 07/08 at $90 million and projected to be $97 million June 10, 2008 Page 3 of 23 in FY 08/09. He added the City had a great product, the strongest attractor in the region with great facilities available and had always had strong performances and benefitted from drive-in traffic and the weak dollar, however staff would continue to monitor this especially with the increased fuel prices which could affect tourism. Sales tax, he pointed out, was more problematic. The budget assumed a growth rate for next year of 2.5 percent, and with inflation at 4 percent, there would be no real growth. The opening of GardenWalk retail in June plus a full year of new restaurants should help Anaheim and the Department expected sales tax, in general, to be stronger in the second half of the year. After some discussion, Mayor Pringle requested a breakdown in the transportation category between car sales and gasoline sales. Mr. Sweeney indicated that would be provided. In response to a remark by Council Member Hernandez that this was not the first time the City had seen a cyclical drop in sales tax, Mr. Sweeney stated that was true, however, the rapid auto and construction materials sales drop throughout the region had been surprising and to mitigate those effects, the City was proposing to conserve and to also use rainy day funds to get through this period of time. He added if the economy did not turn around quick enough, further reductions would be deeded or other revenues must be identified. He added the City Manager had made it clear to departments that he would look at the expense side of the budget if further reductions were needed. Council Member Hernandez commented that with the U.S. dollar plummeting, Europeans were finding great value in Disneyland and southern Californian residents would consider visiting Disneyland rather than spending gas to drive to further vacation destinations. Council Member Hernandez asked if the City was pursuing other avenues of economic development. Mr. Morgan responded that the City's overall economic development efforts would continue to build diversity and was why the Canyon Business Center and the Platinum Triangle was a focus at this point in time. Relative to Property Tax, Mr. Sweeney explained assumptions for the next year projected assessed values were estimated to grow four to six percent countywide with the proposed budget assuming four percent. On the positive side, property tax for existing homes would go up two percent, and with new development from GardenWalk and the Platinum Triangle, there would be increased assessments. On the negative side, some homeowners would be seeking reassessments, although the effects of those reassessments would not be seen quickly. The current year adopted budget was $61 million, last year $57.3 million was reported in property taxes and for FY 08/09, property tax revenue was projected at $58.5 million. The five year general fund outlook reflected revenue comfortably ahead of expense projects, however, Mr. Sweeney emphasized it was going to take some time to get out of this economic downturn without making more dramatic reductions to service levels. He did project a budget surplus by FY 2012/13. In summary, he indicated the City would be reducing its reserves by roughly $3 million and the balance at the end of FY 08/09 would be $28.7 million or 10.7 percent of proposed expenses. Reserves would provide funding for five additional police officers and one-time expenses of $1.8 million. He added the budget continued the City's long standing practice of recognizing future obligations such as retired health care costs and maintaining adequate financial resources. Council Member Galloway requested capital reserve funds to be expressed as a typical balance sheet; Mr. Sweeney indicated that would be provided. Mayor Pringle asked if June 10, 2008 Page 4 of 23 General Fund revenues could be placed on a one-line item chart and not broken out by fund. Mr. Sweeney would provide that information as well. At 2:56 P.M., Mayor Pringle adjourned the special meeting of June 10, 2008 and called to order the adjourned meeting of May 13, 2008. City Council Budget - Mr. Sweeney reported the proposed Council budget was $750,000, a slight increase from the current year with 3.75 FTE part-time positions and no real changes from the current year. City Administration - Mr. Sweeney indicated the proposed Administration budget reflected $5.48 million with 26 FTE positions and no changes from current year. At 3:00 P.M., Mayor Pringle adjourned the regular adjourned meeting of May 13, 2008 and called to order regular meeting of June 10, 2008. Finance Department - Mr. Sweeney explained the function of the Finance Department and described the year's accomplishments and awards received. The proposed operating budget for Fiscal Year 2008/09 reflected an increase of $542,620, or 2.0%, over the 2007/08 adopted operating budget or $28.1 million with 62 FT employees and 1.38 FTE part-time employees. City Clerk's Office -Linda Andal, City Clerk, presented the department's proposed budget, offering the department's mission statement and describing accomplishments and achievements for the year as well as highlights for the coming year. The budget consisted of $1.1 million, with 7 FT employees and 1 part-time. Visitor and Convention Bureau -Charles Ahlers, president of the Visitors and Convention Bureau, provided a detailed overview of last year's accomplishments, achievements and awards received. With a budget of $11 million and 51 FT and 6 part- time employees, Mr. Ahlers emphasized the Bureau's mission continued to be to market Anaheim and Orange County as a premier destination for conventions, meetings and leisure and business travel. Public sector funding derived from TOT revenues was nearly $7 million and private sector funding of $4 million completed the $11 million operating budget. He listed in detail the goals of the coming fiscal year and the bookings confirmed. He remarked that 2009 and 2010 were pacing well ahead of 2008, which was one of the Bureau's most successful years. Council Member Kring inquired why retail sales tax for this department was up when the rest of the City had slowed. Mr. Ahlers remarked that Anaheim with its many venues had been rediscovered for the fifth time and that visitors approved of the changes made with Disney's second gate, the GardenWalk and downtown Disney. Council Member Hernandez asked what the proposed expenditure side revealed. Mr. Ahlers stated the Bureau broke even, spending everything with the exception of about $100,000 each year that was set aside and dedicated to hosting industry events such as the Pow Wow. He added there was a fund balance of about $1.7 million to carry them through challenging times. Council Member Galloway asked why a separate presentation was made by the Bureau when it was actually a contractor of the City. Mr. Morgan responded that while the Visitors and Convention Bureau was an independent organization, the City of Anaheim was its most significant client and therefore important enough to have them present independently to the Council. Their contract, he added, was based on the Bureau receiving 12 percent of 12 percent of the TOT collected. June 10, 2008 Page 5 of 23 Public Utilities Department -Marcie Edwards, General Manager, reported the Utilities Department successes were found in the ability to efficiently and in an environmentally responsible way, provide service in an environment which was increasingly subject to change. The proposed budget for 08/09 was $522 million, a reduction of roughly $49 million from the 07/08 amended budget. With 376 FT employees and 35 FTE employees, the department proposed to increase the FT positions by nine. She described in detail the current year achievements related to community initiatives, the electric and water systems, customer contact enhancements as well as on the financial side. She detailed the current year capital project accomplishments and highlighted the coming year's programs and projects. Council Member Galloway asked for clarification on the $26 million operating expenditure increase from last years budget. Ms. Edwards stated the majority of that increase reflected the increased cost for power. Mayor Pringle emphasized that all private companies were required to have a minimum threshold of renewable power, but that public utilities were not, however Council had taken action at the request of the department to move toward 10 percent of the portfolio being renewable power by 2010 and 15 percent by year 2017 and that renewable energy was more expensive. Ms. Edwards remarked it had been advantageous for the slower ramp-up because it allowed the department to secure resources, while incrementally more expensive, were also sustainable resources such as geothermal and hydrothermal. Council Member Galloway asked if the increased cost would continue for the next two years. Ms. Edwards responded that projections on the water side were likely to continue to increase as California was in the 7th year of drought conditions and regulatory conditions mandated the amount of water which could be imported in Orange County. Much of the cost on the power side, she added, would be based on the application of greenhouse gas regulations established by State Air Resources Board as to the kinds of methods and allocation systems which must be put in place. She added the cost of fuel affected everything and even drove the cost of renewables because of value shifts but also because of significant additional investment. She added the budget reflected increased cost of capital to support additional drilling in some of the purchased gas fields to get additional resources in the field. Police Department -John Welter, Police Chief, presented the department budget emphasizing its focus remained on the community and problem-oriented policing philosophy and practice. The budget was $118.3 million and the department planned to add five officers to bring the authorized strength to 400. An Information Technology Manager would also be added due to the growing need for analyzing crime through computer technology. He added 22 percent of all officers were bilingual, and of those 19 percent spoke Spanish, seven percent were female and 22 percent were Hispanic. In additional there were 140 part time personnel (80 FTE}. He described in detail the accomplishments and achievements of the current year and outlined the department's strategies for the coming fiscal year. He provided crime statistics, reporting that crime in Anaheim was very low for a major city in California, especially given the tourist and visitor population and had been trending down since 2004. He provided a comparison of crime statistics with the ten top cities in California. He indicated there would be significant retirements in the years to come. He reported that over the next couple of months he anticipated losing up to 60 June 10, 2008 Page 6 of 23 employees many of whom were middle managers or unit leaders and would take steps to insure there would be strong ethical leadership in the organization. Council Member Sidhu asked for details on crime response times. Chief Welter responded that with the new deployment strategy, more police officers and the new CAD system, the response time was less than 8 minutes in all four districts. Council Member Sidhu asked if it was becoming more difficult to hire police officers. Chief Welter responded that it was difficult to find qualified, competent people, indicating the department would not lower its standards. He added there were many lateral officers applying for positions with the Anaheim Police Department because of their reputation, the opportunity to build various skills and promotions and the good salary structure. In response to the question of whether the department was up to par on technology, Chief Welter replied that city administration had been supportive of making sure the department had cutting edge and proven technology. Fire Department -Chief Roger Smith presented the department's proposed budget indicating it was a $61.3 million operating budget with 290 FT employees and 8.13 FTE part-time employees. He highlighted the year's accomplishments and achievements and pointed out the coming year highlights. Council Member Kring asked if the department would be experiencing a large number of retirements in the coming year. Chief Smith responded he anticipated seeing a majority of operational senior staff departing in the next two to three years which was why the department was putting extra effort into succession planning. Council Member Galloway asked if there were long-term plans for remodeling, refurbishing and updating existing fire stations. Chief Smith indicated the department coordinated with Public Works Department in an effort to update facilities and some funds were allocated for rebuilding and relocation of older facilities. He added the management team looks at long-term maintenance and was as aggressive as possible within budget confines. Mayor Pringle opened the public hearing for comments and receiving none, continued the budget public hearing to June 24, 2008 at 2:00 P.M. ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 4:56 P.M., Mayor Pringle adjourned to closed session for the following items: CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: Orange County Communities for Responsible Development v. City of Anaheim, Case No. 30-2008-00103422; Citizens for Responsible Equitable Environmental Development v. City of Anaheim, Orange County Superior Court Case No. 30-2008-00106314. June 10, 2008 Page 7 of 23 2. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: City of Anaheim v. Angels Baseball, L.P., Orange County Superior Court Case No. 050001902; 4th Appellate District No. G037202 . 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 800 West Katella Avenue, Anaheim, California (Car Park One site) Agency negotiator: Greg Smith Negotiating parties: Garfield Traub Development, Regent Development OC, Sonnenblick-Del Rio Development, Inc. and the City of Anaheim Under negotiation: Price and terms 4. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (Initiation of litigation pursuant to subdivision (c) of Section 54956.9 of the Government Code) Number of potential cases: one At 5:41 P.M., Council returned from closed session. Invocation: Pastor Gene Shepherd, Anaheim First Christian Church Flag Salute: Council Member Sidhu Presentations: Recognizing the Sycamore Junior High School Drum Line Band Director Rich Gordon introduced the 50 students participating in the Drum Line remarking this was the 3`d consecutive time the school won the American Drum Line Association championship. Recognizing Sandra Barry, Superintendent, Anaheim City School District Mayor Pringle introduced Superintendent Sandra Barry, retiring from the Anaheim City School District, and thanked her for her contributions to the community as an educator. Ms. Barry accepted the recognition stating she was confident that the relationship and partnership with the City provided a solid foundation for more success. Acceptance of Other Recognitions (To be presented at a later date): Proclaiming June 14, 2008, as Army Day Recognizing the Anaheim Sister Cities Association Student Ambassadors to Mito, Japan Recognizing the recipients of the 2008 Anaheim YMCA Women's Auxiliary Youth Service Awards Paul Andresen, YMCA representative, remarked that the Women's Auxiliary of the YMCA were proud to have honored 5th and 6th graders in the community for 31 years. June 10, 2008 Page 8 of 23 Recognizing the 2008 Anaheim Police Officers Honorary Association scholarship recipients Dr. Alice Grant, member of the Honorary Association of Scholarship Recipients, stated the organization had given over $220,000 in scholarships over the last 30 years for students meeting stringent requirements and thanked Council for recognition of these outstanding students. Marge Conway, Anaheim Sister Cities Association, remarked that four students out of 40 interviewed had been selected to be exchange students to Mito, Japan, Anaheim's Sister City and thanked Council for recognizing the students. Henry Soucy, of the Sister Cities Association, introduced Elizabeth Garcia from Katella High School, Joanna Chen from Loara High School, Gilbert Savalos from Anaheim High School and Derek Schisler, also from Loara High School. At 6:05 P.M., Mayor Pringle called to order the Anaheim Public Financing Authority, the Anaheim Redevelopment Agency and the Anaheim Housing Authority in a joint public comment session. ADDITIONS/DELETIONS TO THE AGENDA: Staff requested public hearing Item No. 51 be withdrawn from the agenda as agreement had been reached. The applicant for Item No. 52, a public hearing, requested the matter be continued to July 15, 2008. PUBLIC COMMENTS (all items except public hearings): Debra Reed, South Coast Air Quality Management District (SCAQMD), announced nominations were open for the 20th annual Clean Air Awards and encouraged the City to participate. Jewell Hodges detailed her very specific concerns relative to increased graffiti in her neighborhood. Mayor Pringle responded graffiti was a challenging issue for the City and appreciated Mrs. Hattus' community activism toward eradicating the problem. He discussed increased funding now being provided for graffiti removal and the communication lines available to residents for reporting graffiti sites for immediate removal. Maurice Turner addressed Item No's. 5 and 27 related to Brookfield Homes development. With proposed construction of a new YMCA facility on Olive Street, he expressed concerns over parking, the need for additional green space and safety for youths crossing Broadway to use the facility. At 6:23 P.M., Mayor Pringle recessed the Council meeting to consider the Anaheim Public Financing Authority agenda, reconvening Council session at 6:33 P.M. for two joint public hearings with the Anaheim Redevelopment Agency. JOINT CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARINGS: 8. This is a joint public hearing to consider the disposition and development of 5211.II certain property located at the northwest corner of Olive Street and South Street pursuant to the proposed Disposition and Development Agreement with Brookfield Olive Street LLC. June 10, 2008 Page 9 of 23 City Council Action: RESOLUTION NO. 2008-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving (I) an agreement Re: Partial Termination of Disposition and Development Agreement, (II) a Reimbursement Agreement, and (III) a Disposition and Development Agreement, all with Brookfield Olive Street LLC, and making certain findings in connection therewith. Community Services Director Elisa Stipkovich explained the actions resulting from this public hearing would modify Brookfield Olive Street's current agreement for Colony Park Development to reduce the size of Phase II of its project and modify the land value. Staff recommended approval of the purchase of Phase II by Brookfield Homes for $5.49 million, equivalent to fair market value for that site reduced down to 3.94 acres. The project would then be reduced from 169 units to 94 units and Brookfield would subsequently release another piece of property on which they previously had a commitment and the Agency would incorporate it into another site identified for apartments. Ms. Stipkovich indicated the cost to the Agency for land and certain improvements was about $9.5 million. With revenues from Brookfield Homes of $5.49 million for the land, and the $13 million tax increment expected over the life of the project, the total revenue stream to the Agency would be $18.4 million, less the $9.5 million in costs for a net revenue of $8.8 million. In addition to the typical purchase and sale, staff requested approval to purchase a part of the site currently owned by Brookfield to create another public street which staff believed was needed due to the change in the site plan. Brookfield would also be required to provide certain street and streetscape public improvements along the perimeter of their site up to $2.75 million. Lastly, she pointed out that staff requested to setaside down payment assistance for Phase II of $630,000 of housing setaside funds for low income housing and $500,000 of HOME money and would be submitting an additional application of $500,000 CALHOME funds also earmarked for down payment assistance. Mayor Pringle opened the public hearing and receiving no comments, closed the hearing. Council Member Galloway moved to approve Resolution No. 2008-066 of the City of Anaheim approving (I)an agreement Re: Partial Termination of Disposition and Development Agreement, (II) a Reimbursement Agreement and (III) a Disposition and Development Agreement, all with Brookfield Olive Street LLC and making certain findings in connection therewith, seconded by Council Member Kring. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 9. This is a joint public hearing to consider disposition of an easement and future 5212 development of the Westgate Investment Group site located adjacent to Beach Boulevard and Lincoln Avenue. June 10, 2008 Page 10 of 23 City Council Action: Approve the Owner Participation Agreement, in substantial form, with Westgate Investment Group LLC to allow for the future development of the Westgate Investment Group site. Elisa Stipkovich, Community Services Director, reported this project was part of the Agency's effort to develop the Rains Pitt Landfill property. This particular site, adjacent to the Rains Pitt Landfill site, was owned by the Agency and contained seven acres of landfill as well. In order to move forward with the City's Westgate Commercial Center and the proposed storage facility on the privately-owned Rains Landfill site, the City must insure the entire land-filled area was capped and vented properly. This item was for a disposition of an easement for this property to access the site through the Westgate property for their commercial storage use with Westgate Investment Group paying the Agency $550,000 for the easement right. She added the Agency was also offering Westgate Investment Group an owner participation agreement (OPA) where the City would take care of surcharging of the landfill, the capping and venting necessary to implement the remedial action approved by regulatory agencies and by the County, provide the property owner with insurance and have the property owner become party to a settlement agreement with the County. The majority of funds used for capping and venting, she stated, would come from the settlement agreement with the County. Ms. Stipkovich indicated the Agency's costs to perform necessary work on the site would be approximately $1.5 million; however it would receive $550,000 from Westgate Investment Group for the easement, and approximately $700,000 in tax increment monies over the life of the property for a net cost to the Agency of about $700,000. She added staff felt this action was necessary as part of the overall effort to develop the land- filled sites and to get the City's:Westgate Commercial Center project moving and recommended approval of the OPA and related documents. Mayor Pringle opened the public hearing and receiving no comments, closed the hearing. Council Member Hernandez moved to approve Item No. 9, seconded by Council Member Kring. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried CONSENT CALENDAR: Council Member Kring removed Item No. 17 from the consent calendar for further discussion; Council Member Galloway removed Item No's. 23, 28, 30, 31 and 32. Council Member Hernandez moved to waive reading in full of all ordinances and resolutions and adopt the balance of the consent calendar in accordance with the reports, certifications and recommendations furnished each council member and as listed on the Consent Calendar, seconded by Council Member Sidhu. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 12. Receive and file the Budget Advisory Commission meeting minutes of March 19, B1o5 2008; Community Services Board meeting minutes of January 10, 2008 and March 13, 2008; Cultural and Heritage Commission meeting minutes of January 28, 2008 and March 24, 2008; Senior Citizen Commission meeting minutes of January 10, 2008, February 14, 2008, March 13, 2008 and April 10, 2008; and June 10, 2008 Page 11 of 23 Southern California Gas Company notice of filing of low-income program, Application No. A.08-05-025. 13. Award the contract to the lowest responsible bidder, Gateway Pacific 5214 Contractors, Inc., in the amount of $15,833,560, for the Nohl Canyon Water Storage Tank project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 14. Award the contract to the lowest responsible bidder, Macadee Electrical 5215 Construction, in the amount of $82,611, for the Twila Reid Fire Station No. 11 Traffic Signal Improvements Project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 15. Award the contract to the lowest responsible bidder, All American Asphalt, in the 5216 amount of $656,919, for the Wagner Avenue Improvements Project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 16. Award the contract to the lowest responsible bidder, BNB Engineering, Inc., in 5217 the amount of $536,140, for the Pressure Regulating Station #69 Pressure Zone 1120/900 Conversion and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retention. 18. Approve Amendment No. 1 to Agreement with Donahue and Company, changing 1546.B.1 the company name to Donahue, Hawran & Malm, LLC. 19. Approve a Right of Entry Agreement with Alan Kwong and Yue Chang Kwong for 5219 permission to enter onto property located at 3110 East La Palma Avenue to accommodate the La Palma Avenue/Kraemer Boulevard intersection widening project. 20. Approve and authorize the Director of Public Works to execute an acquisition 5220 agreement with Stephany Hales Panlilio, in the amount of $8,000 plus closing costs, for water utility purposes at 837 West Cottonwood Circle. 21. Approve agreements with Charles Abbott Associates, Inc., CSG Consultants, 5221 Inc., P & D Consultants, Inc., and Scott Fazekas & Associates, Inc, in amounts 5222 not to exceed $150,000 annually, for plan check and building inspection services. 5223 22. Approve an agreement with BonTerra Consulting, in an amount not to exceed 4401 $124,370, to prepare a supplemental environmental impact report for The Anaheim Resort Specific Plan. 24. Approve Plumbing Utility Agreements with Edlen Electrical Exhibition Services of 155o.n California, Inc., Freeman Decorating Services, Inc., J & D Plumbing, GES 3324.8 Expositions Services, Inc. dba Trade Show Electrical and Yard Plumbing, Inc. to 1548.C provide various plumbing services, on anon-exclusive basis, to persons at the 28o7.B Convention Center who require such services in connection with events. 2809.1.01 June 10, 2008 Page 12 of 23 25. Approve an agreement with Ferrellgas, L. P. authorizing the sell of propane gas 5225 at the Convention Center. Authorize the reimbursement of $612,634.05 to the Muzeo Foundation for expenditures incurred for the opening of the Muzeo and its first two exhibits. 26. Approve and authorize the City Manager to execute an Amended and Restated D15o Exclusive Negotiation Agreement with the Anaheim Redevelopment Agency, the Boys and Girls Club, the Anaheim Police Activities League and Brookfield Homes for athletic and community service uses at the southwest corner of Center Street and Olive Street (Related to Redevelopment Agency Item # 5). 29. Authorize the Fire Department to accept the donation of a commercial trailer from D129 Harbor Distributing Co. to be utilized for emergency service delivery by the Fire Department Urban Search and Rescue Team. Mayor Pringle expressed his appreciation to Harbor Distributing Company for their donation to the Anaheim Fire Department. 33. Accept the low bid of Digital Recorders, a DRI Company, in an amount not to D128 exceed $422,786.33, for the purchase and installation of an Intelligent Vehicle D180 System for the Anaheim Resort transit vehicles, in accordance with Bid #7083. 34. Waive the sealed bid requirement of Council Policy 4.0 and authorize the D18o Purchasing Agent to issue a purchase order to The Omega Group, in an amount not to exceed amount of $38,455, for a CrimeView Desktop application for the Police Department. 35. Waive the sealed bid requirement of Council Policy 4.0 and authorize the D1RO Purchasing Agent to issue a purchase order to Versaterm, Inc., in the amount of $75,040, for configuration services for the new CAD and RMS system servers for the Police Department. 36. Approve and authorize the Public Utilities General Manager to execute an 5226 agreement with Huron Consulting Services, LLC, in an amount not to exceed $194,350, to provide professional services for the Utilities Billing Process Evaluation and Audit Project. 37. Approve and authorize the Public Utilities General Manager to execute an 5227 agreement with Tetra Tech, Inc., in an amount not to exceed $2,304,604, to provide construction management services for the proposed Nohl Canyon Water Storage Tank Project at the Olive Hills Reservoir site. 38. Certify that the amendment to the Electric Rates, Rules and Regulations for the D182 Developmental Schedule Thermal Energy Storage rate is statutorily exempt under the California Environmental Quality Act, Public Resources Code, Section 21080(b)(8), in accordance with Title 14 of the California Administrative Code, Section 15273(a). RESOLUTION NO. 2008-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the rates, rules and regulations for the June 10, 2008 Page 13 of 23 sale and distribution of electricity as adopted by Resolution No. 71-478 and most recently amended by Resolution No. 2007R-183. 39. RESOLUTION NO. 2008-068 A RESOLUTION OF THE CITY COUNCIL D182 OF THE CITY OF ANAHEIM authorizing the Public Utilities General Manager to submit an application to the California State Water Resources Control Board for a Water Recycling Facilities Planning Grant, designating the Public Utilities General Manager as Anaheim's authorized representatives, and, if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget for fiscal years 2008-2009 and for 2009-2010 accordingly. 40. RESOLUTION NO. 2008-069 A RESOLUTION OF THE CITY COUNCIL D182 OF THE CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Public Utilities). 41. RESOLUTION NO. 2008-070 A RESOLUTION OF THE CITY COUNCIL D154 OF THE CITY OF ANAHEIM amending Resolution No. 92R-17 which established Personnel Rules for Management, Confidential and Non-Represented Part Time Classifications. 42. RESOLUTION NO. 2008-071 A RESOLUTION OF THE CITY COUNCIL D154 OF THE CITY OF ANAHEIM adopting a policy to pre-fund the Post Employment Benefit Obligations of the City of Anaheim. Mayor Pringle commented on the policy to pre-fund post employment benefit obligations of the City. The single area of most retirement systems not prefunded, he stated, was in the area of healthcare. Anaheim, as with many cities and other governmental agencies provided some degree of healthcare for retirees. Mayor Pringle had participated in a State Commission to draft government guidelines to publicly disclose this obligation and to establish a plan to pay for the benefit. The City Council approved this resolution which addressed a number of recommendations suggested by the Commission 7) Publicly disclose what post employment benefit obligations would be every year, and 2) Make a public declaration that the City would adopt a policy of prefunding those obligations instead of waiting until (hose retirees refire and pay for Them later. The City would be setting aside $63 million (which was 50 percent of its entire post employment obligation) in an irrevocable trust which could not be used for any other purpose -we'll start putting money aside today and earn interest, held in reserve, held in a irrevocable rust which cannot be used for any other purpose to be invested in CALPERS to maximize return on the investment and insure that employees who bargained for this benefit would have it available at the time of their retirement. He emphasized that no other government in California was taking this prudent and responsible step this year. 43. RESOLUTION NO. 2008-072 A RESOLUTION OF THE CITY COUNCIL D175 OF THE CITY OF ANAHEIM (i) reissuing a proclamation of the existence of a local emergency in the City of Anaheim as heretofore proclaimed by the Director of Emergency Services of the City of Anaheim and ratified by City Council Resolution No. 2005-17, and (ii) determining that the need for continuing the local emergency exists. 44. RESOLUTION NO. 2008-073 A RESOLUTION OF THE CITY COUNCIL E127 OF THE CITY OF ANAHEIM calling and giving notice of the holding of a General June 10, 2008 Page 14 of 23 Municipal Election to be held on Tuesday, November 4, 2008, for the election of certain officers as required by provisions of Article XIII, Section 1300 of the City Charter. RESOLUTION NO. 2008-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting the Board of Supervisors of the County of Orange to consolidate a General Municipal Election to be held on November 4, 2008, with the Statewide General Election to be held on that date pursuant to Section 10403 of the Elections Code. RESOLUTION NO. 2008-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting regulations for candidates for elective office pertaining to candidates' statements submitted to the voters at an election to be held on Tuesday, November 4, 2008. 45. RESOLUTION NO. 2008-076 A RESOLUTION OF THE CITY COUNCIL Tio6 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. 2008-077 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 public hearing thereon (Public hearing scheduled for June 24, 2008}. 46. RESOLUTION NO. 2008-078 A RESOLUTION OF THE CITY COUNCIL rlio OF THE CITY OF ANAHEIM vacating a Public Utility easement for sewer purposes reserved unto the City of Anaheim in Resolution Number 2005-57 pursuant to California Streets and Highways Code Sections 8330 et seq. - Summary Vacation (Abandonment No. ABA 2008-00178; 325-425 South Vine Street). 47. RESOLUTION NO. 2008-079 A RESOLUTION OF THE CITY COUNCIL 5228 OF THE CITY OF ANAHEIM approving the Workforce Investment Act Title I Master Subgrant Agreement between the City of Anaheim and the State of California for the term of April 1, 2008 through June 30, 2010. 48. Approve the City Council meeting minutes of May 6, 2008 and May 13, 2008. END OF CONSENT CALENDAR 17. Approve an agreement with the County of Orange, which will allocate $3,744,668 Pllo of Proposition 1 B funding, for the design and right-of-way phase of the Brookhurst Street Improvements from Ball Road to Katella Avenue. Natalie Meeks, Public Works Director, reported staff had been working for a number of years to identify funding to complete this project. Measure M funds had been identified but were not sufficient to complete the project and with funding now available from Measure 2 funding, staff could move forward with the design and right-of-way acquisitions on this project and would continue to seek construction funding. June 10, 2008 Page 15 of 23 Council Member Kring was supportive of the project, asking if there were any plans for median landscaping. She was particularly concerned that California was facing drought conditions recommending the City consider drought tolerant plantings. Ms. Meeks responded that landscaping had not yet been identified, however, the department would take into consideration the City's goals on drought tolerant landscaping. Mayor Pringle remarked that this area had been a burden as a portion of the street was in County territory although the City continued to work to enhance that area as well. From his perspective, he understood the desire for drought tolerant landscaping but also wanted to ensure those plantings were attractive and remained so after many years. He added the Water Utilities proposal to use reclaimed water for landscaping could be an important tool in conserving water and allowing for greener landscaped areas in public spaces. Council Member Sidhu asked if Council could have an opportunity to review the landscaping plan prior to planting and Ms. Meeks responded in the affirmative. Council Member Kring moved to approve Item No. 17, seconded by Council Member Hernandez. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 23. Approve Electrical Utility Agreements with S & N Show Service, Inc. dba Action 2900.0 3325.8 Electrical, Capital Exposition Electrical Services, Inc., CES Electrical, inc., Rudy 1549.0 2805.0 Ortiz, dba Convention Electrical Services, Inc., Convention Technical Services, 2so~.B 2804.0 Inc., Edlen Electrical Exhibition Services of California, Inc., Freeman Decorating 2925.0 1552.0 Services, inc., Hi-Tech Electrical, LLC, LB Lights West, Inc., GES Expositions 2807.0 4463.A Services, inc. dba Trade Show Electrical and Tricord Management, LLC, dba 1550.0 Tricord Tradeshow Services, Inc. for various electrical services, on a -non- exclusive basis, to persons at the Convention Center who require such services in connection with events. Greg Smith, Convention Center, explained the electrical contractors who work on events in the Convention Center were approved each year. Contractors may be selected by event participants but must be vetted to insure their equipment was safe and insurance was on file. He added the City did not recommend electrical contractors, but merely provide a list of those vendors authorized to work in the building. Part of the agreement, he added, was that the contractors agree to pay a commission for the work done in the Convention Center. Council Member Hernandez moved to approve Item No. 23, seconded by Council Member Galloway. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 28. Approve and authorize the City Manager to execute Amendment No. 2 to 3481.2 Professional Service Agreement with Leighton and Associates, Inc. for continued on-call environmental consulting services. Community Services Director Elisa Stipkovich reported this item was amendment to a professional services contract with Leighton and Associates. Staff had sent out an RFQ and solicited a statement for all environmental services; 46 companies then submitted statements and upon reviewing them, Leighton was one of eight firms recommended for hiring. These eight firms work with the City for on-call environmental consulting services. June 10, 2008 Page 16 of 23 Council Member Kring to approve Item No. 28, seconded by Council Member Hernandez. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 30. Authorize the Purchasing Agent to dispose of surplus cell phones no longer used n18o by City departments through donations to charitable organizations who can refurbish them for use by their clients. Terry Lowe, Community Services Director, explained this request was to permit old cell phones utilized by City staff that no longer had a useful life, to be donated to certain charitable organizations which would repair and recycle them for use by non-profit organizations. Council Member Galloway asked if the City had done any follow-up on the organizations involved to insure the process was handled as stated. With that information not available, Mayor Pringle, with the consent of Council, continued the item to the June 24, 2008. 31. Accept the low bid of Dave Bang Associates, Inc., in the amount of $171,806.70, D18o for the furnishing and installation of bus stop benches throughout the City for a three-year period with two one-year renewal options and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #7089. Natalie Meeks, Public Works Director, reported that in 2007, Orange County Transportation Authority (OCTA) had .provided a study of bus stops and deficient bus benches. As a result of that study, this item would add 165 replacement bus benches Citywide. Council Member Galloway moved to approve Item No. 31, seconded by Council Member Sidhu. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 32. Accept the low bid of Yocum. Business Furnishings, in the amount of $197,768.66 D124 including tax, for Convention Center lobby furniture, in accordance with Bid #7126. Greg Smith, Convention Center, reported the Convention Center lobbies were in need of additional furniture since its expansion in 2001, but for budgetary reasons, he explained, the purchase was delayed. The 277 pieces of furniture being purchased would be located on all three lobby levels selected by the same architectural firm that designed the lobby to complement the existing architecture of the Center. He added the furniture consisted of modern padded benches and couches, which were functional and interchangeable. Council Member Hernandez moved to approve Item No. 32, seconded by Council Member Kring. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 49. RESOLUTION NO. 2008-080 A RESOLUTION OF THE CITY COUNCIL D182 OF THE CITY OF ANAHEIM, CALIFORNIA (I) approving the issuance of not to exceed $50,000,000 aggregate principal amount of Water Revenue Bonds of the Anaheim Public Financing Authority; (fl) approving the forms and authorizing the June 10, 2008 Page 17 of 23 execution and delivery of an installment purchase agreement, a continuing disclosure agreement, sale documents and other related documents; (III) approving the delivery of an official statement; and (IV) approving certain actions in connection therewith (Related to Public Financing Authority Item # 1) Mayor Pringle remarked Item No. 49 was the complementary Council action to Item No. 1 of the Anaheim Public Financing Authority. Council Member Hernandez moved to approve Resolution No. 2008-080 of the City of Anaheim, California (I) approving the issuance of not to exceed $50,000,000 aggregate principal amount of Water Revenue Bonds of the Anaheim Public Financing Authority; (II) approving the forms and authorizing the execution and delivery of an installment purchase agreement, a continuing disclosure agreement, sale documents and other related documents; (III) approving the delivery of an official statement; and (IV) approving certain actions in connection therewith; seconded by Council Member Kring. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members:- Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried 50. Consider reappointments/appointments to Boards and Commissions, terms to Blos expire June 30, 2012, except the Senior Citizen Commission, term to expire June 30, 2011. Mayor Pringle moved to reappoint those members eligible for reappointment, seconded by Council Member Sidhu. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried TERMS EXPIRING JUNE 30, 2012: Budget Advisory Commission: [Re]Appointment: Arjan Sachdev (Incumbent, Arjan Sachdev) Community Center Authority: [Re]Appointment: Larry Slagle (Incumbent, Larry Slagle) Community Services Board: [Re]Appointment: Julia Wright (Incumbent, Julia Wright) [Re]Appointment: Jerry Conrey (Incumbent, Jerry Conrey) Appointment: Grant Henninger (Jack Holmes) Council Member Kring nominated John Claxton to the Community Services Board and Council Member Galloway nominated Grant Henninger. A straw vote for Mr. Claxton reflected Ayes: 1: Council Member Galloway. Noes - 0; and Abstention - 4: Mayor Pringle and Council Members: Hernandez, Galloway and Sidhu A straw vote for Mr. Henninger reflected Ayes - 4: (Mayor Pringle and Council Members: Galloway, Hernandez and Sidhu. Noes - 0. Abstention - 1: Council Member Kring. Mr. June 10, 2008 Page 18 of 23 Henninger was appointed to the Community Services Board. Cultural and Heritage Commission: Appointment: (Elsie Reed) Council Member Galloway nominated Corin Ramos and Council Member Kring nominated Joan Rutel to the Cultural and Heritage Commission. Straw vote for Ms. Ramos: Ayes - 1: Council Member Galloway. Noes - 0. Abstentions - 4: Mayor Pringle and Council Members: Galloway, Hernandez and Sidhu. Motion failed Roll call vote for Joan Rutel: Ayes - 2 :Council Members Kring and Hernandez. Noes - 0. Abstentions - 3: Mayor Pringle and Council Members Galloway and Sidhu. Motion failed. This item continued to June 24, 2008. Housing ~ Community Development Commission: [Re]Appointment: Robert "Bobby" McDonald (Incumbent, Robert "Bobby" McDonald} Investment Advisory Commission: [Re]Appointment: Mehdi Reza Hirii (Incumbent, Mehdi Reza Hirji) Park & Recreation Commission: [Re]Appointment: Jack Knapil (Incumbent, Jack Knapil) Planning Commission: Appointment: Victoria Ramirez (Patricia Velasquez) Council Member Galloway nominated Victoria Ramirez to the Planning Commission. Straw Vote: Ayes - 3: Mayor Pringle, Council Members Galloway and Sidhu. Noes - 0. Abstention - 2: Council Members Hernandez and Kring. Council Member Kring nominated John Karezynski. Straw vote: Ayes - 2: Council Members Kring and Hernandez. Noes - 0. Abstentions - 3: Mayor Pringle and Council Members: Galloway and Sidhu. Ms. Ramirez appointed to the Planning Commission. TERM EXPIRING JUNE 30, 2011: Senior Citizen Commission: [Re]Appointment: Judy Huitt (Incumbent, Judy Huitt) Appointment: Eloise Ware (I.J. "Kitty" Preston) Council Member Kring nominated Eloise Ware who was unanimously appointed to the Senior Citizen Commission. June 10, 2008 Page 19 of 23 PUBLIC HEARINGS: 51. This is a public hearing to determine the public interest and necessity to acquire and authorize the condemnation of certain real property located at 2203 West Midwood Lane for the Katella Avenue Smart Street -Humor Drive to Jean Street Project. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM Determining the Public Interest and Necessity for Acquisition of Property Located at 2203 West Midwood Lane for purposes of the Katella Avenue Smart Street -Humor Drive to Jean Street Project, (R/W ACQ2005-00237). This item withdrawn by staff. 52. CEQA EIR NO. 334 (PREVIOUSLY CERTIFIED) 5229 CONDITIONAL USE PERMIT NO. 2007-05284 5229.I TENTATIVE TRACT MAP NO. 17241 DEVELOPMENT AGREEMENT NO. 2007-00006 MISCELLANEOUS CASE NO. 2008-00246 OWNER: Robert Wells Family Partnership , L.P., 506 Via Lido Nord, Newport Beach, CA 92663 and Twedt Family Partnership, L.P., 3200 Park Center Drive, Suite 720, Costa Mesa, CA 92626 APPLICANT: Trammel Crow Residential, 949 South Coast Drive 40, Costa Mesa, CA 92626 LOCATION: 2100 East Orangewood Avenue: Property is approximately 6.98 acres, having a frontage of 497 feet on the south side of Orangewood Avenue and located 308 feet east of the centerline of State College Boulevard. Requests to construct a 689-unit residential development in five buildings, each ranging in height from 4 to 5 stories. This project requires approval of the following requested actions: Conditional Use Permit No. 2007-05284 - to modify setback requirements. Tentative Tract Map No. 17241 - to establish a 4-lot (1-lettered and 3- numbered), 689-unit airspace residential condominium subdivision. Development Agreement No. 2007-00006 -request to adopt a Development Agreement between the City of Anaheim and TCRSC Development Limited Partnership, Robert Wells Family Partnership Limited Partnership and Twedt Family Partnership Limited Partnership. Miscellaneous Case No. 2008-00246 - to request an extension for the execution of the development agreement between the City of Anaheim and Robert Wells Family Partnership, Twedt Family Partnership, and TCRSC Development Limited Partnership. ACTION TAKEN BY THE PLANNING COMMISSION: June 10, 2008 Page 20 of 23 Vote: VOTE: 6-0 (Commissioner Karaki absent} on the following items: Approved Previously-Certified CEQA Subsequent EIR No. 334. Approved and Recommend City Council review of Conditional Use Permit No. 2007-05284 (PC2008-60). Approved and Recommend City Council review of Tentative Tract Map No. 17241 (PC2008-61). Recommend City Council approval of Development Agreement No 2007-00006 with a modification to add a condition of approval pertaining to fencing/screening (PC 2008-62}. Recommend City Council approval of Miscellaneous Case No. 2008-00246. (Planning Commission Meeting of May 12, 2008) MOTION: Determine that Subsequent Environmental Impact Report No. 334 is adequate to serve as the required environmental documentation for this request. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM granting Conditional Use Permit No. 2007-05284. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (i) approving Development Agreement No. 2007-00006 by and between the City of Anaheim and Robert Wells Family Partnership, a California Limited Partnership and Twedt Family Partnership, a California Limited Partnership, as tenants-in common and TCRSC Development Limited Partnership, a Texas Limited Partnership (ii) making certain findings related thereto, and (iii) authorizing the Mayor to execute said agreement for and on behalf of the City. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM granting Tentative Tract Map No. 17241. MOTION: Approve an agreement between with Trammell Crow Residential extending the timeframe for executing the development agreement. This item continued to July 95, 2008 at the request of the: applicant. 53. CEQA SUBSEQUENT EIR NO. 334 (PREVIOUSLY CERTIFIED) 5230 DEVELOPMENT AGREEMENT NO. 2008-00002 CONDITIONAL USE PERMIT NO. 2008-05304 OWNER: K/L Anaheim Properties I LLC and K/L Anaheim Properties II LLC 300 South Grand Avenue, 37th Floor, Los Angeles, CA 97001 AGENT: The PRS Group, 31872 San Juan Creek Road, San Juan Capistrano, CA 92675 LOCATION: 905-917 East Katella Avenue: Property is approximately 8.7 acres, located at the northeast corner of Lewis Street and Katella Avenue having a frontage of 616 feet on the east side of Lewis Street and 615 feet on the south side of Katella Avenue. June 10, 2008 Page 21 of 23 Requests to construct a 12-story office building, 130 guest room hotel and 320- unit residential complex. This project requires approval of the following requested actions: Conditional Use Permit No. 2008-05304 - to modify setback requirements and to permit a building height that exceeds 100 feet. Development Agreement No. 2008-00002 -request to adopt a Development Agreement between the City of Anaheim and K/L Anaheim I LLC and K/L Anaheim II LLC. ACTION TAKEN BY THE PLANNING COMMISSION: VOTE: 6-0 (Commissioner Karaki absent) on the following items: Approved Previously-Certified CEQA Subsequent EIR No. 334. Recommend City Council approval of Development Agreement No. 2008-00002 with a modification to add a condition of approval pertaining to fencing/screening (PC 2008-58). Approved and Recommended City Council review of Conditional Use Permit No. 2008-05304 (PC2008-59). (Planning Commission Meeting of May 12, 2008) MOTION: K/H Determine that Subsequent Environmental Impact Report No. 334 is adequate to serve as the required environmental documentation for this request. RESOLUTION NO. 2008-081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM granting Conditional Use Permit No. 2008-05304. ORDINANCE NO. 6106 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (i) approving Development Agreement No. 2008-00002 by and between the City of Anaheim and City of Anaheim and K/L Anaheim Properties I LLC and K/L Anaheim Properties II LLC (ii) making certain findings related thereto, and (iii) authorizing the Mayor to execute said agreement for and on behalf of the City. Sherri Vander Dussen, Planning Director, reported the Platinum Gateway project before Council was for consideration was a nine acre mixed-use development, which included a 320 unit jcon-ected by Phillip Schwartz to be 328 units] residential complex, an office building and a hotel to be located in the northeast corner of Katella Avenue and Lewis Street. The project would be adjacent to the Platinum Vista project and across Katella from A-Town Metro. She added that the Planning Commission recommended approval of the project on May 12tH The mixed use development, she explained, included a 12-story office building, an 138- room hotel and 320 units [corrected fafer by Phillip Schwartz to be 328 units] of residential. The residential building would be four stories over two levels of parking and would be surrounded by courtyards and recreational amenities. The office building would have retail space along Lewis Street and a restaurant with an outdoor dining area. The hotel would also include retail and food uses as well as meeting and banquet rooms and the hotel and office building would share a six story parking structure. There would be pedestrian bridges to connect the parking structure to the office building and the June 10, 2008 Page 22 of 23 office building to the hotel. Ms. Vander Dussen indicated a conditional unit had been approved by the Commission to allow the office building to have a height of 211 feet where Code permitted heights up to 100 feet. She pointed out the proposed building height was consistent with the urban theme envision in the Platinum Triangle and Council had approved other buildings in this area to exceed the height limit. The permit also allowed buildings to encroach into required setbacks along Lewis Street, Katella Avenue and along interior streets. She stated the buildings were consistent with architectural design requirements for the Platinum Triangle and that the applicant proposed a development agreement for a period up to 12 years. In the first 7 years, the applicant must demolish the existing buildings and obtain grading permits. She pointed out the extended time frame for development was the result of an existing tenant lease that did not end until 2012. Mayor Pringle opened the public hearing for comment. Philip Schwartz, KLS Group representing the property owner, stated the owners were second and third generation property owners and worked for 18 months to bring this project to consideration by Council. He stated it would provide a grand entry to the Platinum Triangle and should set the bar for other projects coming into the area. He added there was one correction of note, the number of apartment units to be built was 328, not 320 which had been identified earlier. Council Member Galloway asked for additional information on the apartments. Mr. Schwartz indicated the project had always focused on the development of apartments, not condominiums and they would range from 700 to 1,100 square feet with rental rates in excess of $1.00 per square foot. Council Member Sidhu expressed concern that the development agreement was for a term of 12 years when in general similar development agreement terms were three to five years. Ms. Vander Dussen responded that given the market conditions and the existing needs of the property and the fact staff felt the project was consistent with Platinum Triangle goals, staff was agreeable to recommending the longer term. Mr. Schwartz added that the property owner's tenant lease that Council Member Sidhu felt should continue with the current standard of a five-year term had a lease that did not end until 2012, which was why the longer term was requested. Council Member Sidhu concurred stating he would support the project as presented. Council Member Kring moved to determine that Subsequent Environmental Impact Report No. 334 was adequate to serve as the required environmental documentation for this request and to approve RESOLUTION NO. 2008-081 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM granting Conditional Use Permit No. 2008-05304 and to introduce ORDINANCE NO. 6106 OF THE CITY OF ANAHEIM (i) approving Development Agreement No. 2008-00002 by and between the City of Anaheim and City of Anaheim and K/L Anaheim Properties I LLC and K/L Anaheim Properties II LLC (ii) making certain findings related thereto, and (iii) authorizing the Mayor to execute said agreement for and on behalf of the City, seconded by Council Member Hernandez. Roll Call Vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. Report on Closed Session Actions: None June 10, 2008 Page 23 of 23 Council Communications: Council Member Hernandez addressed the statewide drought alert and the City's water conservation programs. Council Member Galloway reported on her attendance at the International Council of Shopping Centers Conference in Las Vegas meeting with developers working on projects in the City and commented on the inspiring Memorial Day Service held at Anaheim Cemetery. Council Member Kring reported on the increased spread of West Nile Virus and the Vector Control Board's response and infection prevention recommendations for the community. Council Member Sidhu reported his attendance at the award ceremony for the Ross Park Expansion and announced the various community events being held in June. Mayor Pringle also reported on his attendance to the International Council of Shopping Centers Conference on behalf of the City. He announced Anaheim was awarded the 2010 Major League Baseball All Star Game and also reported on the status of the appeal between the City and Angels Baseball. Adjournment: At 8:11 P.M., Mayor Pringle adjourned the June 10th meeting to June 24, 2008 at 2:00 P.M. for the continued fiscal year 2008/09 budget public hearing. Respectfully submitted, Linda N. A~dal, City Clerk