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2008/07/29ANAHEIM CITY COUNCIL REGULAR ADJOURNED MEETING OF JULY 29, 2008 The regular meeting of July 29, 2008 was called to order at 3:00 P.M. and adjourned to 4:00 P.M. for lack of a quorum. Mayor Pringle called to order the July 29th regular adjourned meeting at 4:02 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 July 25, 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. ADDITIONSIDELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: Jim Adams, council representative for the Los Angeles/Orange County Building Trade and asked for Council's consideration on the convention center project. . At 4:04 P.M., Mayor Pringle recessed to closed session for the following item: CLOSED SESSION: 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 Invocation: Chaplain Nathan Zug, Anaheim Fire Department Flag Salute: Council Member Galloway Presentations: Recognizing the U.S. Men's National Volleyball Team -Mayor Pringle announced that the U.S. Men's National Volleyball Team was headed to Beijing as the Federation International Volleyball (FIVB) World League champions having defeated Serbia in Brazil two days ago. He made it clear that Anaheim was honored to have the Olympic Team as part of its Anaheim family and appreciative of this opportunity to recognize the achievements as well as the opportunity to send them off with the support of Anaheim, Orange County and the nation. City Council Minutes of July 29, 2008 Page 2 of 9 Recognizing the North Anaheim Little League A's as District 46 Champions -Mayor Pringle introduced coaching staff and team members of the North Anaheim Little League A's. Coach Guy Steele thanked Council for the recognition, stating the team had a goal in mind to reach the Tournament of Champions through hard work and ultimately won District 46 Championship defeating other Orange County city leagues to secure that win. Acceptance of Other Recognitions tTo be presented at a later date): Recognizing Sister Mary Peter Traviss, St. Boniface Catholic School -Bob Cook, representing Sister Mary Traviss, thanked Council for the recognition. He announced that in addition to her good works, she was also the author of The Story of a Parish, related to the history of St. Boniface and Anaheim. Recognizing National Council of Negro Women -Orange County Chapter on their 20th Anniversary -Cathy Woodard, representing the organization thanked Council for the recognition and invited them to an event being held on August 17, 2008. Recognizing Joe Honescko, Executive Director of Downtown Anaheim Association on his retirement AT 5:38 P.M., Mayor Pringle called to order the Anaheim Redevelopment Agency (in joint session with the Anaheim City Council). ADDITIONS/DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS (all items except public hearing): William Fitzgerald, resident, voiced his opposition to Disneyland fireworks and ongoing pollution impacts. Phyllis DelRio, Lido Street, asked if a copy of the follow-up status report that she believed should have been submitted to the City Council as a result of her comments during the July 15th Council meeting was available. She also asked that once that report was available, to schedule a meeting with the City Attorney to discuss relevant issues. After some discussion, Mayor Pringle requested copies of the report be provided to Ms. DelRio and other interested residents and that the City Attorney schedule a meeting. Don Kobler, Specialized Environmental, Inc. spoke of his protest regarding the bid award of Item No. 7, stating he had been told he was the low bidder and subsequently learned that the contract was being awarded to another bidder whose bid proposal contained some irregularities. Mayor Pringle announced Mr. Kobler's comments would be addressed at the time Item No. 7 was being considered. Mrs. Sanchez, a tenant of city property located at 630 South Anaheim Boulevard, requested Council's assistance with code enforcement actions related to noise complaints against her business. Mayor Pringle requested the tenant speak to Lisa Stipkovich, Community Development Director regarding her concerns who would then provide a brief staff report and course of action to Council as soon as possible. City Council Minutes of July 29, 2008 Page 3 of 9 Stuart Lipshin, BHL Industries, referenced Item No. 7 and remarked technical errors had been made on his bid; although the total bid amount was correct and $140,000 under the second low bidder. At 5:59 P.M., Mayor Pringle recessed the City Council meeting to consider the Anaheim Redevelopment Agency, reconvening Council session at 6:00 P.M. CONSENT CALENDAR: Mayor Pringle removed Item No. 7 from the consent calendar for further discussion; Council Member Hernandez also pulled Item No. 14 and No. 19. 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 Kring. Roll Call Vote: Ayes - 5: Mayor Pringle, Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 3. Receive and file notification of application filing by Golden State Water Company B105 (Application No. 08-07-010) and minutes of the Public Library Board meeting of June 9, 2008. 4. Approve the Investment Portfolio Report for June 2008. D117 5. Award the contract to the lowest responsible bidder, GMC Engineering, Inc., in 5284 the amount of $207,187.50, for the Miraloma Way sidewalk and landscape project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 6. Award the contract to the lowest responsible bidder, EMAE International, Inc., in 5285 the amount of $265,615, for the Brookhurst Community Park Maintenance Yard project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 8. Approve the Final Map for Tract No. 17251 for parcels located at 215 - 221 S. P178 Anaheim Blvd, 115 - 185 W. Broadway, 104 - 184 W. Center Street Promenade and 250 - 290 S. Lemon Street. 9. Approve the Agreement for Acquisition of Tenant-Seller's Interest of Real 5268 Property with tenant Glenda Silva, also known as Latino Immigration Service, for a total settlement payment amount of $1,295, for property located at 2181 West Katella Avenue, Suite D, for the Katella Avenue Smart Street -Humor Drive to Jean Street Project (R/VI/ ACQ2005-00241). 10. Approve the Agreement for Acquisition of Tenant-Seller's Interest of Real 5267 Property with tenant Guadalupe Gomez, also known as EI Bloquecito Service, for a total settlement payment amount of $8,990, for property located at 2181 West Katella Avenue, Suite D, for the Katella Avenue Smart Street -Humor Drive to Jean Street Project (R/V11 ACQ2005-00241). City Council Minutes of July 29, 2008 Page 4 of 9 11. Approve the Addendum of Lost Rent Agreement with property owner, William W. 5134.1 Morningstar, for lease payments in the amount of $1,400, for a commercial center located at 2181 West Katella Avenue for the Katella Avenue Smart Street- Humor Drive to Jean Street Project (R/VV ACQ2005-00241). 12. Adopt aseven-year Capital Improvement Program to comply with Measure M D175 funding requirements, enabling the receipt of approximately $3 million per year in local turnback revenues. 13. Approve and authorize the Director of Public Works to execute and administer 5263 that certain Cooperation Agreement (Property Exchange: Heather Lane/Illinois Street) with the Redevelopment Agency for exchange of real property (Related to Agency Item #1) 15. Waive the sealed bid requirements of Council Policy 4.0 and authorize the D180 Purchasing Agent to extend the current agreement with International Services, Inc. for up to three months, in an amount not to exceed $120,000, for security guard services for the Public Works Department. 16. Approve and authorize the Finance Director to execute the renewal of the 1677.O.A Support and Maintenance Agreement with CGI-AMS for a 3-year period commencing July 1, 2008 through June 30, 2011 for the Enterprise Resource Planning system which processes the City's Financial, Human Resources, Payroll and Budgeting transactions. 17. Approve and authorize the City Manager to execute an agreement with Anaheim 5265 Arena Management, LLC for acquisition and reimbursement of a security camera system for the Honda Center using Urban Area Security Initiative (UASI) Homeland Security Funds. 18. Approve the response to the Orange County Grand Jury Report entitled, "No D159 County for Old Boomers -When Orange County Baby Boomers Retire, Where Will They Live?" regarding future planning for senior housing and authorize the Mayor to execute a letter and forward the response to the Presiding Judge of Orange County Court and the Orange County Grand Jury (Continued from Council meeting of July 15, 2008, Item #21). 20. Approve the Franchise Termination Agreement with EarthLink, Inc., terminating 3735.1 the wireless network Franchise and Franchise Agreement, Rooftop Lease and Fiber Optics Lease. 21. RESOLUTION NO. 2008-136 A RESOLUTION OF THE CITY COUNCIL 3952.A OF THE CITY OF ANAHEIM authorizing the Chief of Police or Fire Chief, or their designees to submit a grant application on behalf of the City of Anaheim to the State Office of Homeland Security, for the 2008 Urban Areas Security Initiative (UASI) Grant Program, and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget for fiscal year 2008-09 accordingly. City Council Minutes of July 29, 2008 Page 5 of 9 Approve and authorize the City Manager to execute the Memorandum of Understanding with the City of Santa Ana in compliance with Federal Department of Homeland Security and the State of California's Office of Homeland Security requirements designating one of the two Urban Areas Security Initiative jurisdictions as the single point of contact for purposes of the grant application and financial management of the grant. Authorize the Purchasing Agent to-make the appropriate purchases as approved by the Department of Homeland Security in the Investment Justification proposal and, if Council Policy 306 is in conflict with federal or state procedures governing this grant, waive those conflicting provisions of Council Policy 306 and authorize the Purchasing Agent to comply with the appropriate federal or state procedures with regard to purchases made under this grant. 22. RESOLUTION NO. 2008-137 A RESOLUTION OF THE CITY COUNCIL T105 OF THE CITY OF ANAHEIM levying special taxes within the City of Anaheim Community Facilities District No. 1989-1 (Sycamore Canyon). 23. RESOLUTION NO. 2008-138 A RESOLUTION OF THE CITY COUNCIL T105 OF THE CITY OF ANAHEIM levying special taxes within the City of Anaheim Community Facilities District No. 1989-2 (The Highlands). 24. RESOLUTION NO. 2008-139 A RESOLUTION OF THE CITY COUNCIL T105 OF THE CITY OF ANAHEIM levying special taxes within the City of Anaheim Community Facilities District No. 1989-3 (The Summit). 25. RESOLUTION NO. 2008-140 A RESOLUTION OF THE CITY COUNCIL T105 OF THE CITY OF ANAHEIM levying special taxes within the City of Anaheim Community Facilities District No. 06-2 (Stadium Lofts). 26. RESOLUTION NO. 2008-141 A RESOLUTION OF THE CITY COUNCIL P124 OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos.: 11148, 11149, 11150 and 11151). 27. RESOLUTION NO. 2008-142 A RESOLUTION OF THE CITY COUNCIL P110 OF THE CITY OF ANAHEIM vacating a public utility easement located within Assessor Parcel Number 345-121-06 pursuant to California Streets and Highway Code Section 8330, Et Seq. -Summary Vacation. (Abandonment No. ABA 2008- 00182). 28. RESOLUTION NO. 2008-143 A RESOLUTION OF THE CITY COUNCIL P110 OF THE CITY OF ANAHEIM vacating a public utility easement located at 3400 East La Palma Avenue and Assessor Parcel Number 345-121-24 pursuant to California Streets and Highway Code Section 8330, Et Seq. -Summary Vacation. (Abandonment No. ABA 2008-00183). City Council Minutes of July 29, 2008 Page 6 of 9 29. RESOLUTION NO. 2008-144 A RESOLUTION OF THE CITY COUNCIL P110 OF THE CITY OF ANAHEIM vacating a public utility easement located upon Assessor Parcel Number 345-121-24 pursuant to California Streets and Highway Code Section 8330, Et Seq. -Summary Vacation. (Abandonment No. ABA 2008- 00184). 30. ORDINANCE NO. 6107 (ADOPTION) AN ORDINANCE OF THE CITY OF C280 ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2007-00214; 717 South Dale Avenue; Introduced at Council meeting of July 15, 2008, Item #35). 31. Approve the minutes of the Council meeting of July 15, 2008. END OF CONSENT CALENDAR 7. Award the contract to the lowest responsible bidder, BHL Industries, Inc., in the D175 amount of $528,461.81, for the Anaheim Substation Demolition project, waive any minor irregularities in the low bidder's documents and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. Clarifying earlier comments made during oral communications, Natalie Meeks, Public Works Department, announced that with submittal of Anaheim Substation Demolition bids, BHL Industries had been identified as the apparent low bidder. The bids were then verified, broken down into a number of line items which reflected elements of the scope of work and it was found that the low bidder had made errors in the bid by putting the lump sum total in the unit price. When the unit price was then multiplied out per line item, the total cost would have been over $5 million, an unreasonable figure to submit. She remarked staff discussed this with BHL Industries and the company stated it was a technical error and stood by their total lump sum for the bid project at $528,461.81. Ms. Meeks indicated staff had worked with the City Attorney's office and determined it was appropriate to award the bid to BHL Industries and to waive the technical errors, pointing out that the total bid amount was $100,0:00 less than the second bidder. Council Member Sidhu asked whether bids were eliminated due to errors. The City Attorney responded the City had the right to waive defects in any bid for errors as long as the errors did not prejudice the City by waiving those defects and if the total dollar bid amount had not changed. He added there could be technical errors in how that number was calculated, however as long as the final bid amount remained the same, it was appropriate to take action to award. Council Member Galloway asked if a letter had been sent to Specialized Environmental, Inc. stating that the firm was the lowest bidder. Ms. Meeks replied a staff member had originally disqualified the initial BHL low bid due to those errors mentioned and called the second low bidder to inform him his company was now the low bidder. She added that the bid of Specialized Environmental had contained some technical errors as well, although less than those found in BHL Industries' proposal. Council Member Galloway asked if this was a final letter sent to Specialized Environmental and Ms. Meeks responded that no final letter could be sent until Council took action to award. City Council Minutes of July 29, 2008 Page 7 of 9 Council Member Sidhu moved to approve Item No. 7, seconded by Council Member Galloway. Rotl Call Vote: Ayes - 5; Mayor Pringle and Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 14. Approve and authorize the Public Utilities General Manager to execute an 5264 Agreement with EcoMotion, in an amount not to exceed $364,317, to provide services that expand the Anaheim Public Utilities Department's current Sun Power for the Schools Program. General Manager Marcie Edwards reported this item was an expansion to an existing program to fund 80 percent of solar systems for any Anaheim schools interested in participating, public or private. She remarked feedback from the schools included comments on challenges most school districts faced providing any type of funding for this program. In an effort to meet school needs, the Utilities Department elected to expand the program to cover 100 percent funding and to put in smaller solar systems and consequently continue the Department's outreach and energy education program. Council Member Hernandez remarked he was supportive of this effort to provide alternative energy, especially to local schools, congratulated staff on offering this type of program and moved to approve Item No. 14, seconded by Council Member Galloway. Roll call vote: Ayes - 5: Mayor Pringle and Council Members Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. 19. Authorize the City Manager to reimburse the Anaheim/Orange County Visitor and D128 Convention Bureau (VCB) up to $90,000 from the Resort Maintenance District to fund one-time setup costs for a comprehensive resort-wide front line employee training program, with all ongoing costs to be paid by the VCB. Tom Wood, Assistant City Manager, explained this item was a request from VCB to be reimbursed for initial set-up costs for a program to provide comprehensive training to all employees in the Anaheim resort. He added this program was viewed by the visitor industry to be very important that all front line employees had consistent information and consistent customer service approaches, which would allow Anaheim to stand out from other visitor destinations. Council Member Galloway asked for a more clear understanding why these costs were not part of the funding normally provided to the VCB. Mr. Wood explained this reimbursement action was taken by the Resort Maintenance District board at their last meeting and the City Council, as administrators of the Anaheim Resort Maintenance District, must ratify or deny that action. Council Member Hernandez was supportive of this effort to ensure Anaheim was an enjoyable experience for any tourist visiting the City and moved to approve Item No. 19, seconded by Council Member Kring. Roll Call vote: Ayes - 5: Mayor Pringle and Council Members: Galloway, Hernandez, Kring and Sidhu. Noes -0. Motion Carried. City Council Minutes of July 29, 2008 Page 8 of 9 32. Approve a Pool Room Permit allowing three pool tables to be located at 300 D159 Anaheim Bowling and Entertainment Center in the GardenWalk Project at 321 W. Katella Ave. #85. Council Member Kring announced she would excuse herself from hearing of this item due to a potential conflict of interest as she was a tenant in the GardenWalk facility. Sheri Vander Dussen, Planning Director, reported Anaheim Bowling and Entertainment Center is located in the GardenWalk project and had requested approval to allow three billiard tables in their facility. She stated staff recommended approval of the application. After some discussion, Council Member Hernandez suggested the regulation which required City Council to deny or approve billiard tables should be reviewed with the idea of eliminating the need for Council approval of this type of permit. Council Member Hernandez moved to approve Item No. 32, seconded by Council Member Sidhu. Roll call vote: Ayes - 4: Mayor Pringle and Council Members: Galloway, Hernandez and Sidhu. Noes - 0. Abstention - 1: Council Member Kring. Motion Carried. Mayor Pringle, concurring with Council Member Hernandez's remarks, requested the City Manager to schedule a discussion on a future agenda as to why pool permits were necessary and requested the City Attorney review the Municipal Code. PUBLIC HEARINGS: 33. This is a public hearing to consider vacation of a portion of Mountain View P110 Avenue extending approximately 285 feet southerly from Orangewood Avenue. RESOLUTION NO. 2008-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a portion of Mountain View Avenue extending approximately 285 feet southerly from Orangewood Avenue. (Abandonment No. 2008-00171) Natalie Meeks, Public Works Director, explained this abandonment was part of the work of the school district to build a school at Ponderosa Park, related rehabilitation of the park and would also allow the City to close off Mountain View and incorporate that area into a parking lot for the school and library. Mayor Pringle opened the public hearing and receiving no comments, closed the hearing. Mayor Pringle commented on the cooperative relationship with the Anaheim City School District and of the park renovation which was a vital component of the project and moved to approve RESOLUTION NO. 2008-145 OF THE CITY OF ANAHEIM vacating a portion of Mountain View Avenue extending approximately 285 feet southerly from Orangewood Avenue, seconded by Council Member Kring. Roll Call vote: Ayes - 5: Mayor Pringle and Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried. City Council Minutes of July 29, 2008 Page 9 of 9 Report on Closed Session Action: After returning from Closed Session, Mayor Pringle reported City Council directed staff to seek additional financial information on all three proposals submitted for the Convention Center expansion with a report back to the Council in two weeks. Council Communications: Council Member Hernandez congratulated the Public Utilities Department on the opening of the Vermont substation, and reminded residents of the Anaheim Police Department's Night Out on August 5th at Eucalyptus Park and of the Victory Outreach event to be held at Glover Stadium the following Sunday. Council Member Galloway stated it was an honor to send off the U.S. Men's Volleyball Team to Beijing, and she looked forward to following their activities and to welcome them home. Council Member Kring addressed the Vermont Substation opening, remarking it was one of the expanding and growing assets of the City. Council Member Sidhu requested the City Attorney agendize a proposed Charter amendment to reduce the term of mayor from four years to two years and to schedule this amendment for discussion and action at the next Council meeting in order for it to be placed on the November 2008 ballot. Mayor Pringle announced the City had received the 13t" Annual Achievement of Excellence Procurement Award and that the Customer Service Satisfaction Survey implemented by J.D. Powers & Associates had begun on July 24t". He also commented on the KPMG firm which was hosting a youth management and leadership service project on August 8t" with thousands of college students cleaning up trash and weeding around the convention center area. He reported on his meeting with Congresswoman Corin Brown and spoke of the earthquake which had occurred this morning and the quick response by Anaheim's emergency team in assessing and addressing any damages; he thanked City management for their immediate reaction. Adjournment: With no other business, Mayor Pringle adjourned the meeting at 6:42 P.M. Respe liy submitted, Linda N. Andal, CMC City Clerk