2012/06/19ANAHEIM CITY COUNCIL
SPECIAL MEETING OF JUNE 19, 2012
REGULAR ADJOURNED MEETING OF JUNE 5, 2012 HELD ON
JUNE 19, 2012 AND REGULAR MEETING OF JUNE 19, 2012
The Anaheim City Council Special Meeting of June 19, 2012 was called to order at 12:04 P.M.
in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard.
PRESENT: Mayor Tom Tait and Council Members Gail Eastman, Lord Galloway, Kris Murray
and Harry Sidhu
STAFF PRESENT: City Manager Bob Wingenroth, City Attorney Cristina Talley, and City Clerk
Linda Andal
ADDITIONS /DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
Council recessed to closed session for the following special closed session item:
CLOSED SESSION:
1. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to subdivision (b) of Government Code
Section 54956.9: One Potential Case.
Council special session was reconvened at 2:15 P.M.
REPORT ON CLOSED SESSION ITEMS: None
With no other business, Mayor Tait adjourned the special meeting at 2:15 P.M. and called to
order the Anaheim City Council regular adjourned meeting of June 5, 2012.
FY 2012/13 CITY BUDGET: City Manager Bob Wingenroth explained the budget hearing had
been continued from the June 5, 2012 Council meeting and following the remaining
departmental presentations, would conclude on this date with the adoption of the budget.
PLANNING DEPARTMENT: Planning Director Sheri Vander Dussen reported the Planning
Department consisted of four divisions: Administration, Planning, Building and Community
Preservation/ Licensing with a proposed budget of slightly over $17 million including the
equivalent of 87 full -time positions. Performance Indicators identified for the department
included the resolution of code complaints, graffiti removal, plan check applications, and
building and fire construction inspections. By year end, she noted, the department expected to
address 40,000 code enforcement complaints, achieving a high compliance rate by solving 96
percent of those cases by the second notice. In the area of graffiti removal, she stated the
original vendor awarded the graffiti removal contract in October was not able to meet city
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 2 of 32
standards and eventually opted out of the contract, and staff would be working closely with the
new vendor, Superior Property Services, to insure a successful transition in anticipation that
service levels would improve dramatically. Standards for completing plan check applications
were met and staff had conducted more than 27,000 building inspections of which nearly all
were provided on the day requested by each customer.
Current Year Achievements Ms. Vander Dussen stated the Hi Neighbor program was
supported by encouraging thousands of residents to meet their neighbors and join forces to
prevent crime and prepare for natural disasters. Staff supported other key projects such as
ARTIC, the Convention Center Grand Plaza and the Honda Center enhancement program as
well as a one year pilot program for Orange County's first bike - sharing system. The Anaheim
Canyon Specific Plan was updated to meet the needs for existing and future businesses,
scheduled for completion in 2013 and with the elimination of the Redevelopment Agency, the
Department worked with the city's Historic Preservation Committee to implement the Novack
Program which offered incentives to preserve historic buildings. Ms. Vander Dussen noted the
Planning Department was an active participant in the Mayor's Regulatory Relief Task Force
resulting in a streamlined regulatory permit process with 16 business types no longer requiring
conditional use permits, the need for many parking variances eliminated and a proposal to
change and eliminate some fees to lessen the burden or provide more certainty on permit costs.
One of the biggest accomplishments this year, she remarked, was the designation of the
Anaheim Enterprise Zone, which offered significant tax benefits to businesses that invested in
Anaheim with the goal of generating more than 5,000 jobs annually over the next five years.
She noted the prevalence of medical marijuana dispensaries in neighborhoods had been a
major concern and staff worked closely with the Police Department and the City Attorney's
Office to enforce Anaheim's interim ban. She reported 63 percent of the identified marijuana
dispensaries were closed through various enforcement efforts and staff would continue to
pursue action against the remaining businesses. Staff had also been encouraged to take
ownership of ideas businesses and residents presented to the city to help them realize their
goals and she shared several successful stories of those efforts and their impact on businesses
and the community. Building inspections were also being scheduled using on -line applications
and customers could track the progress of their inspections on line as well. Inspectors could
now create legible electronic correction notices which were also available on line and anyone
involved in a job or project could get a copy from any computer.
During the coming year, she stated, the Department planned to continue to provide great
service in the field and at city hall and would launch a new service that would provide business
owners with on -line access to zoning, demographics, consumer spending patterns and available
commercial properties to assist them in selecting the best site for their Anaheim business. The
effort to reduce the time, cost and aggravation involved in obtaining permits would continue with
the launching of a concierge program recommended by the city manager as one of the on -going
service enhancements in this budget. This concept would dedicate staff members to offer a
one -on -one guidance to business customers helping them expedited their progress through the
permitting and construction processes. Other programs in the planning stages included a
customer bill of rights and a code amendment to eliminate the need for additional types of
business to get a conditional use permit. Another program would offer refunds for expedited
plan check fees when deadlines were met and staff planned to expand the internal reporting
system to better develop strategies to improve service. She added further collaboration with the
Regulatory Relief Task Force would generate additional ideas that would be implemented to
improve services. And, since the Housing Element must be updated by the end of 2013 and
with the loss of the Redevelopment tools, staff expected to make changes to the Element,
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 3 of 32
including significant public outreach. Lastly, she reported, the Anaheim Resort Specific Plan
and Master Environmental Impact Report would streamline the review process for new resort
development and accommodate the planned expansion of the Convention Center.
COMMUNITY DEVELOPMENT DEPARTMENT: Acting Executive Director John Woodhead
announced the Community Development Department received no general fund revenues, and
operated using federal and state grants and loans, capital and cash assets as well as property
tax increment to assist in the development of Anaheim's economic future. The proposed budget
totaled $138 million with 78 full -time employees reflecting the elimination of 24 positions due to
the February 1, 2012 dissolution of the Anaheim Redevelopment Agency. The revenues
projected for 2012/13 continued with a slightly downward trend reflecting decreases in many
federal funding sources, the elimination of a one -time stimulus award as well as the slowing
pace of asset sales while expenditures remained steady.
Performance Measures Mr. Woodhead indicated the Department expected to maximize
available funding for the Section 8 housing voucher program and expected to have at least 80
percent of Anaheim jobs clients employed, even with the continued difficulties in the overall job
market. A new performance measure would be employed, using 100 percent of the former
redevelopment agency's tax increment for the retirement of its debt this coming fiscal year.
The dissolution of redevelopment agencies statewide under ABX 126, the Dissolution Act, was
expected to cost Anaheim approximately $47 million annually and $1.3 billion over time in lost
property tax revenues. In addition, 83 acres of land with an estimated value of $60 million had
to be liquidated expeditiously, with the proceeds used to help retire the debt of the former
redevelopment agency. The selection of successors to the redevelopment agency were chosen
with the redevelopment agency's assets and obligations transferred to the City as the
Successor Agency and the housing assets, obligations and functions transferred to the Housing
Authority. He explained there was some good news involved in the transfers to the Housing
Authority with significant assets transferred having been removed from the rest of the
dissolution process. These assets included 33 acres of land valued at $35 million, another
portfolio of $15 million, a SERAF loan of $8 million and potentially $15 million in unencumbered
housing funds. Those assets would augment the Housing Authority's existing $8 million
unencumbered reserves and the $1.5 million it received in annual income permitting the city to
continue housing development in the future.
For the redevelopment assets, Mr. Woodhead explained, they along with the tax increment that
would have accrued to the redevelopment agency were subject to complicated and often
inconsistent requirements of the dissolution act. The City acting as Successor was required to
establish a series of six month debt schedules to retire the outstanding debt of the former
agency, referred to as ROPS with each ROP subject to audit by the county auditor controller
and approved by an oversight board. In turn, he added, the actions of the auditor controller and
the oversight board were subject to review by the state controller's office and the Department of
Finance. Tax increment of the former redevelopment agency together with the land sale
proceeds was to be placed in a trust fund by the county auditor controller who would distribute
funds equal to the debt identified in the ROPS from a trust fund to the city every six months in
order to satisfy the ROPS obligations. Any funds remaining in the trust after this process would
be distributed to the tax amenities as property tax. He noted Anaheim fared much better than
most in this dissolution process and was only one of seven county successor agencies to have
done so. While there were no assurances regarding future successes, he pointed out the
Department listed, but had not yet drawn upon, the $68 million in ROPS for development
projects.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 4 of 32
For this year's budget, he explained, the majority of the department's expenditures were
associated with providing housing assistance and employment services to the community, by
almost 60 percent. Less than one third of the department's expenditures would be funded next
year out of the tax increment of the former redevelopment agency via the ROPS process, 31
percent that covered affordable housing and redevelopment activities. As the affairs of the
agency wound down, he noted, the expenditures would decrease over time and while the ROPS
expenditures related to housing activities would also decline over time, the program income
from these activities would become assets of the Housing Authority. He added the oversight
board adopted a plan, in part directed by the City acting as the Successor, to sell the assets for
fair market value while compelling current development wherever possible and it was this
direction as well as the obligation in the ROPS that would permit Community Development to
complete certain projects despite the dissolution act. Those projects included the Packing
District with the historic Packing House, Packard Building and Farmer's Park on a 2.2 acre site.
The Packard Building and the Anaheim Brewery opened last summer and would see the
opening of the neighboring Monty Burger restaurant next month. Farmer's Park, located
between the Packard Building and the Packing House would feature two restaurant buildings in
an outdoor, orchard like environment with the goal of creating gathering places where people
could meet their friends and neighbors. The second important project was the Center Street
Promenade, bringing new life to downtown retail spaces investing in store front facades and
tenant improvements to attract new retail tenants including Home Economics, Bar /Beer, and
Heart and Sole shoe store. In addition to the Lab's projects, the Department had been
negotiating over the last 18 months with a festival group with respect to development of a retail
center at the corner of Anaheim and Ball. Similarly, a Disposition and Development agreement
for the Westgate site with Zellman that lapsed while the redevelopment agency was suspended
last year would be restructured in the near future.
Mr. Woodhead emphasized the Department remained committed to continuing its legacy of
housing development with Brookfield homes continuing with its Phase 3 of Colony Park homes
this year and Phase 4 beginning next year for a total of 670 homes in the downtown area. The
Related Companies recently completed Vintage Crossings, a 92 unit affordable housing project
on property south of Colony Park and adjacent to the Avon - Dakota neighborhood. Collette's
House, a project involving rehabilitation of four units for persons with special needs was also
recently completed. In addition to the recently completed projects, the Department was working
on several other projects that were either under construction or would be under construction
soon. Mariposa Village, an eight unit rehabilitation project was under construction and the
Metropolitan, another Brookfield project for 88 units on Anaheim Boulevard would begin soon.
The Cherry Orchard, a 45 unit project which recently obtained tax credits and a bond allocation,
was in the works and South Street Crossings, the first phase of The Related Companies
rehabilitation of the Avon - Dakota neighborhood and an 11 acre rehabilitation project on
Wilhelmina were planned as well.
Mr. Woodhead detailed the various housing assistance offered by the Department: 1) a $2
million in onetime stimulus funds to help prevent homelessness in families impacted by the
weak economy had been received, 2) and the RAFT program assisted 152 families. With the
end of the RAFT program in April of this year, the Department intended to develop a new pilot
program focusing on homeless families with children attending Anaheim schools. Last year, the
Anaheim Housing Authority through the Housing Choice Vouchers provided access to safe,
quality affordable rental housing to over 17,000 people throughout the community and had a
waiting list of 30,000 families with a wait of five to six years for a voucher. He added the
Department was improving service delivery even as HUD continued to decrease administrative
allowances by 20 percent, and this year an on -line partner portal was introduced which allowed
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 5 of 32
landlords to go on line and manage their Section 8 units and payments and in addition, the
Department partnered with Go Section 8.com which connected prospective tenants with
available units. The down payment assistance program using various federal and state funding
resources to date have assisted 172 families at Colony Park and Harbor Lofts to fulfill their
dream of homeownership and last year, Anaheim Jobs, assisted almost 6,000 job seekers and
more than 350 businesses at the Anaheim Jobs center located next to City Hall. To follow up
last year's successful launch of AnaheimJobs.com, the Department would soon be rolling out
smart phone apps in which job seekers could view thousands of jobs while searching for
employment. Anaheim Jobs in partnership with the Chamber of Commerce and the Anaheim
Workforce Investment Board hosted a 2012 Anaheim OC /Job Fair last week, and over 7,000 job
seekers were able to connect with 190 employers.
COMMUNITY SERVICES DEPARTMENT: Community Services Director Terry Lowe reported
his proposed budget was slightly over $38 million with a general fund draw of about $20 million.
Staffing levels reflected a loss of 28 full -time positions compared to last year and a 49 percent
reduction in staffing across the department with the decline in the economy since 2008.
Performance Indicators showed library uses expanded even with the reduction in service hours
over the past few years and recreation contract classes cost recovery now at 100 percent,
offered residents a wide menu of self- improvement programs at no direct expense to the
taxpayer. In addition, relationship with individual neighborhoods throughout the city continued
to expand as the department supported local leadership to maintain clean, safe and attractive
neighborhoods.
Addressing capital projects, an extensive public input process, design and funding strategies for
a new playground in Palm Lane Park, the Mira Loma Park and community center and the
complete refurbishment of the Anaheim Tennis Center was completed. The Anaheim Cove and
Founder's Park were dedicated this fiscal year, both unique and beautiful new parks for
residents and visitors to enjoy. He added there had been significant capital development in the
past eight years which resulted in the dedication of the Anaheim Hills Club House, a youth
center, two gymnasiums, two new library branches, the expansion of one park and the
development of four new parks, the Muzeo, an extensive renovation of the Central Library and
the Wilke Stoeffel house. Funding for those projects had been obtained from park development
fees for residential construction, public and private sector grants and redevelopment funds. In
spite of the loss of these funds, the Department managed to continue improving these vital
community assets. In partnership with Kaboom, a non - profit organization and friends at the
Disney resort, two new playgrounds were built in one day with hundreds of volunteer hours
providing the labor. Another new partnership with Championship Golf already resulted in the
renovation of the Dad Miller clubhouse with more to come.
Supporting young people and linking families in crisis with resources that promoted stability and
self- sufficiency was an important role for the Human Services Division. Projects Say developed
youth leaders, promoted safe schools and neighborhoods and provided healthy alternatives to
gangs, violence, vandalism and substance abuse. These programs, he added, were designed
to promote healthy lifestyles with lifelong learning for residents of all ages and abilities, keeping
kids busy while learning and giving back to the community. The park system offered organized
sports and leagues for children and adults and included scheduling the athletic facilities of many
school campuses, brokering additional space for the benefits of residents. Staff also managed
space for hundreds of nonprofit organizations that offered valuable services to residents and in
most cases at no cost. Covering the overhead cost for these organizations, he explained,
meant they could concentrate their resources and the delivery of services to those who need
them the most.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 6 of 32
Community Services also insured the safety of school and park facilities through a park ranger
program resulting in hundreds of thousands of public contacts each year. The overwhelming
number of these contacts, he added, was positive as staff worked to provide good customer
service. Staff also linked seniors in need to many types of available services at three
community centers, regionally distributed through the city and through the administration of the
senior wheels transportation program. Linking residents to each other and to government was a
responsibility of Neighborhood Services who had taken an active role in the Hi Neighbor
program. A long and productive partnership between the department and the faith -based
community resulted in greater opportunities for children and families, increased volunteers and
informed the community.
Organized activities like cleanup campaigns helped neighbors help themselves and each other,
binding them together in a mutual goal of safe and attractive neighborhoods. Neighborhood
Services, he remarked, placed a caring human face on government, listened to residents and
worked with colleagues from all city departments through the four district teams to speed
resources to where they could do the most good. Active involvement in neighborhood council
meetings developed leadership, self- sufficiency and insured that issues impacting
neighborhoods were addressed and resolved. Libraries in Anaheim were well used as literacy
and lifelong learning to residents was promoted and in the past year almost 1.4 million visits
resulted in the distribution of 1.6 million books, CDs and DVDs, over 100,000 people
participated in cultural and literacy related events with 4,300 children participating in the
summer reading program. More than 220,000 hours of free internet access was provided to
38,000 individuals, nearly 12 percent of the city's population. Mr. Lowe stated staff facilitated
the transition of in -house park maintenance to contracting services with the development of high
standards and expert supervision in the field to insure the park system would continue to be a
source of pride for users and were safe, clean and well maintained. As the economy improved,
revenues from golf courses were rebounding, and in addition to hosting many tournaments and
providing affordable rates for thousands of residents, particularly local senior citizens, the golf
division supported hundreds of young people from all local high schools and students from Tiger
Woods Learning Center.
He remarked that Community Services had a long history of successful efforts to develop
alternative funding sources to attract thousands of dollars to Anaheim to enhance some of the
aging facilities and provide opportunities for volunteers to give back to their community. In spite
of the tough economy, he reported, arts continued to flourish. The generous support of the
business community enabled Pearson Park amphitheater to continue to serve residents as it
had since 1927 with concerts in the park, movies under the stars, art in the park and other
programs. This year 44 computers from Toshiba of America were donated to Ponderosa
Library, orchestrated by Council Member Kris Murray. People with special needs continued to
be served and collectively, Anaheim's resources reached out much further than could be
accomplished individually.
In the coming year, the department would work on the development of a new flagship YMCA on
the site of the old Holmes oil property, would continue to reinvest in the golf courses to make
sure they continue to be competitive in the southern California golf market and the grand
opening of the Ponderosa Library on July 21S would begin a five day week schedule.
At 3:10 P.M., Mayor Tait adjourned the adjourned regular meeting of June 5, 2012 and called to
order the regular meeting of June 19, 2012.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 7 of 32
CONVENTION, SPORTS AND ENTERTAINMENT: Tom Morton, Executive Director reported
the FY12/13 budget reflected oversight of Anaheim Convention Center, Angel Stadium of
Anaheim, Honda Center and the City National Grove of Anaheim. The operating budget
amounted to over $56 million and included the Visitor & Convention Bureau's (V &CB) Tourism
and Improvement District funding and with the inclusion of the Grand Plaza capital
improvements, the Departmental budget totaled over $69 million. There were 83 full -time
positions, down from 91 of last year and 234 full -time equivalents.
Convention Center The operating philosophy was "to treat everyone as you would like to be
treated — the Anaheim Way" and was reflected in every aspect of the business as to how to
interact with clients, visitors, employees, the community and the environment. For the current
fiscal year, the Convention Center projected an average occupancy rate in its four main exhibit
halls to be 60 percent with 33 citywide events and 70 total V &CB bookings. For the upcoming
year, V &CB projected 35 citywide events but only 50 total events, but were still trying to achieve
a 60 percent occupancy rate. It was anticipated to end this fiscal year with 225 events (12.5
percent over prior year), 433 event days (up 8 percent over prior year) and attendance was
projected to be higher by about 67,000 or 6.4 percent. Staff was projecting to end the current
fiscal year with an operating profit, achieved by spending only as it was earned and maximizing
revenue opportunities. He emphasized there were few convention centers in the country that
were able to break even in their operation. In addition to annual events such as NAMM and
Natural Products, a number of new events were hosted, including Microsoft Build and Microsoft
Sharepoint, Intel, American Baseball Coaches Association, Abbot Laboratories and Harley
Davidson. Some of the more notable public shows included Disney's D23, CIF Southern
Section basketball finals and the Anaheim Bolts indoor soccer season. He added a religious
event had also been booked attracting 3,000 attendees on a weekly basis.
In January of this year, the Anaheim Convention Center became the largest and one of only a
handful of facilities offering free wireless internet to attendees throughout the entire facility. With
the assistance from a grant from the Department of Energy, a green room on the Arena box
office was constructed which included an herb garden used by the culinary team. The first
phase of the Grand Plaza, known as the Transit Plaza was also completed, serving as a bus
and taxi staging area for events needing shuttle services to the facility.
Next year, he remarked, a diverse menu of events would be offered starting with US Summer
National Fencing Championships in July, the first OC Symphony POPS concert, the
International Public Works trade show and convention in August, and Produce Marketing
Association returning to Anaheim in October. New events for the upcoming year included the
National Recreation and Parks Association, the American Association of Equine Practitioners,
Informex and American Academy of Audiology. The Arena would also host a number of
sporting events such as volleyball, football, cheerleading and basketball tournaments
throughout the year.
Groundbreaking on the Grand Plaza occurred in April, funded by the Tourism Improvement
District, and when completed, would offer a $20 million pedestrian plaza including a 45 foot
lighted entry monument, more than 80,000 square feet of colored concrete and pavers, 153
palm trees, 60 new citrus trees, a river of lights that would run through the middle of the Plaza
and three new signature water features. The Grand Plaza would provide Convention Center
guests with a meeting place outside of meeting rooms to enjoy the year -round climate Anaheim
offered.
Daktronics, a world leader in LED video display products, was awarded the contract to replace
the aged Katella Avenue reader board which would offer near HD graphic capabilities. In
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 8 of 32
partnership with Public Utilities Department, the Convention Center completed the reroof of
Exhibit Hall C in May, and was now ready for the installation of a 1.5 megawatt solar ray
covering almost 500,000 square feet of roof area. When completed, it would be one of the
largest rooftop solar rays in the country and further set Anaheim apart as the largest Leed
Certified Convention Center in the country. In coordination with the Police Department, the
anticipated comprehensive UASI enhancement to the Convention Center security office
including the build out of the new dispatch center would be completed. The Convention Center
was also selected as one of the initial kiosk sites for Bike Nation, and would provide guests easy
access to this new sustainable transportation option. A partnership with Anaheim Brewery
would feature Anaheim Gold and Red products in the new Grand Plaza as well as all interior
retail locations. This partnership would further reduce the Center's carbon footprint.
Angel Stadium Mr. Morton noted that this fiscal year, Angels Baseball organization brought to
a close the celebration of its 50 anniversary with year -long events taking place during the
season. For the 10 consecutive year, the Angels sold over 3.2 million tickets, a goal only
enjoyed by nine major baseball teams and slightly above the Department's initial forecast. For
Angels fans the offseason signing of Albert Polhous and CJ Wilson combined with the resigning
of Jered Weaver positioned the team for a strong 2012 season and currently they are five
games out of first place in the American League west. He added the team was forecasting
ticket sales to surpass the three million mark again.
Honda Center: This venue continued success as a premier concert/sporting venue and this
fiscal year would host 120 events, including 13 concerts with an attendance slightly over one
million. He noted the Anaheim Ducks had a season record just under 500 and did not make the
playoffs this year. For the coming year the Center was projecting 130 events, with 30 concerts
and an attendance of about 1.2 million with the Ducks looking forward to advancing to post
season play and bringing the Stanley Cup back to Anaheim. He added the Ducks continued to
have one of the strongest season ticket holding basis in the National Hockey League. Next
year, the Grand Terrace would be opening, a 15,000 square feet, privately- financed upgrade,
equipped with an 80 foot bar, unique dining options, upscale decor and quality service. Also
included was a 240 seat restaurant to be open to the public for all events and a new 4,200
square foot Anaheim Duck team store to allow space for greater merchandise selection.
The City National Grove of Anaheim Mr. Morton stated this venue continued its success
hosting quality concerts, 72 live performances with a total of 182 events welcoming 157,000
guests. Performances included Don Rickles, Merle Haggard, Stevie Nix and Chris Isaak along
with Black Country Communion and the Fresh Beat Band. The venue's success was validated
when Venues Today magazine ranked the Grove 4 th in the nation for concert venues with 2,000
or fewer seats and Pulstar ranked the grove 24 in the nation in its top 100 club venues. Next
year showed further improvement in the booking calendar leading to an increased projection of
189 events and attendance of 162,000 guests. Favorites such as Air Supply, Adam Ant, Howie
Mandell, and the Wiggles were scheduled to perform.
Mr. Morton announced Charles Ahlers, president of the Visitors & Convention Bureau, would be
leaving at the end of the year. A key individual influential in the success of the convention and
tourism industry, Mr. Ahlers had given 28 years of service to Anaheim. Mr. Morton indicated the
VCB would be conducting a nationwide executive research for replacement of this position and
Mr. Ahlers would stay involved in the organization as an advisory and would continue to be
instrumental in the development of the Convention Center and the Grand Plaza.
Mayor Pro Tern Sidhu inquired what it would take for an occupancy rate higher than 60 percent
with Mr. Morton replying that in reality there was not a lot of open space available higher than 60
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 9 of 32
percent occupancy. This was due to the fact there were certain times when events could not be
booked such as holidays and during the periods between shows moving in and out, but his
office would continue to strive for a higher occupancy rate. The Grand Plaza, he pointed out,
would increase desirability of the destination because of the increased outdoor space available
for attendees and guests to enjoy the year -long temperate climate. Answering Mayor Pro Tern
Sidhu's question as to whether the Grove made a profit or broke even, Mr. Morton indicated a
profit was earned with a revenue split of 60 percent to the city and 40 percent to Nederlander
organization and had never lost money. Council Member Murray asked how the department
planned to grow the general fund long term with Mr. Morton responding that from the standpoint
of expansion beyond the Grand Plaza, there was a need for additional space to make sure the
Convention Center was able to grow with the large annual events held there such as NAMM
and Natural Products. There were also certain high -yield events in which clients spent a lot of
money at a destination but were not attracted to Anaheim because there was not enough
meeting space; events such as continuing education and credit conventions. The third goal
was to have the ability to host concurrent events. Currently there were five exhibit halls and a
group may use two of those exhibit halls and all of the meeting space, leaving two or three
exhibit halls sitting empty. With additional meeting space, it would be possible to host two
events at the same time and increase the occupancy of the center as well as hotel bookings.
CITY ATTORNEY'S OFFICE: City Attorney Cristina Talley announced the proposed budget for
her department was $6.2 million with 30 full -time employees. Performance measures identified
were litigation cases resolved and the average hourly rate for staff. This year the goal for
litigation cases was exceeded with staff resolving 92.1 percent of cases. She noted the average
hourly rate for outside counsel was about $380 per hour versus the $112 hourly rate for city staff
and one of the objectives of her office was to handle as many litigation matters as possible with
in -house staff and only going to outside counsel when staff did not have the resources or
expertise to handle a case.
Current Year Achievements Under civil transactional, there were five components. In the area
of training, the City Attorney's Office assisted in a number of training sessions including the Fire
Department bill of rights act, labor and employment training and conducting personnel
investigations. For the Convention Center, staff worked on preparation for the documents
necessary for the construction of the Grand Plaza improvements underway, also continued to
provide legal support to city staff and Public Works Department related to ARTIC. For Public
Utilities, staff drafted resolutions, ordinances and agreements and assisted in negotiations on
three significant projects: Canyon Power Project, downtown water recycling demo project and
the customer information system, the $10 million computerized billing system for the city. In
connection with Community Development, Ms. Talley stated, staff worked on new legislation for
the elimination of the Redevelopment Agency and the role and actions that the former Agency
and Housing Authority were required to take in response to that legislation. Staff also continued
to work on the implementation of redevelopment projects representing enforceable obligations
such as various housing projects and the preparation of leases for future tenants of the historic
Packing House and construction related issues. In the area of civil litigation, in partnership with
Code Enforcement Division, the City Attorney's office successfully prosecuted another
receivership action.
Regarding civil litigation, a receivership process was used as an alternative to traditional code
enforcement remedies, and resulted in bringing property up to code through the appointment of
a receiver. This process, she remarked could also serve as a catalyst to provide social services
to the property owner, if needed, and encouraged family members to step in and provide
assistance. There were a number of litigation victories; such as Whittaker vs. the City of
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 10 of 32
Anaheim, a case involving a serious traffic collision which resulted in one death and serious
injuries. After years of litigation the matter was resolved by settling and was significant because
attorney fees for in -house counsel of $184,498 were recovered. In the matter of Qualified
Patients Association vs. the City of Anaheim, after years of litigation, the trial court ruled in favor
of the city and upheld the city's ban on medical marijuana dispensaries.
In the Criminal division, Ms. Talley reported staff was on pace to file about 10,000 misdemeanor
cases for FY 11/12. There were 656 cases filed through the Family Justice Center, 649 of
which were crimes against innocent minors. The Division also filed five cases involving gang
members and 23 cases involving graffiti. In addition to supporting the Family Justice Center,
the Criminal Division also partnered with the Police Department as part of the gang injunction
and intervention project (GRIP), a program designed to work with parents and schools to help
steer youth away from gangs.
FOR FY 2012/13, staff would continue to conduct training for city staff, and work with Human
Resources regarding labor negotiations and administrative hearings. In the area of litigation,
her office would begin training in design immunity, preparation for depositions and retention of
documents and new discovery. For general municipal matters, staff would provide training for
contracts and public records act requests. Staff would also continue to work on ARTIC and
ARC and to use the receivership process to address severely substandard properties. Lastly,
she stated, staff would continue to work to enforce the city's moratorium against medical
marijuana establishments in the city and continue to defend the city's right to ban these
dispensaries.
CITY CLERK'S OFFICE: Linda Andal, City Clerk, indicated her proposed budget was slightly
over $1.1 million which funded three core functions: official records, elections and passport
services and staffed six full -time employees and one part-time. The proposed budget reflected
an increase over the current fiscal year primarily due to costs associated with the upcoming
November election.
Two performance measures to complement the goal of providing exceptional customer service
were identified; the processing of public records requests through advanced technology and city
document digitalization. In the area of public records, the goal was missed by a small
percentage due to the absence of a full -time records manager and a continued position
vacancy. With the new records manager position now filled, Ms. Andal remarked, the
Department completed 92 percent of records request within three days and anticipated goals
would be met or exceeded next fiscal year. The second performance indicator was the
continued automation of city records and the department had met this goal to insure city
business was transparent to the public.
Current Year Achievements In the area of passports, over 1,300 passports were processed
this year, 300 more than the previous year. For the first time since the Clerk's Office became an
acceptance facility in 2002, the Department of State conducted a thorough on -site audit and
found the office to be in full compliance. In the area of official records, staff assisted with over
760 public records act requests, an increase of 21 percent, however; Ms. Andal pointed out, for
the city clerk's specific records, there was an increase of 33 percent. In addition, about 1,000
contracts were processed which included oversight of citywide insurance compliance, staff
insured the city continued to meet regulations set by the FPPC and received and reviewed over
650 conflicts of interest statements of which over 90 percent of the filers used the a -file system.
Technology continued to play a critical role in not only how business was delivered but also how
it was received and with that in mind, staff reviewed on -line forms and improved the Boards and
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 11 of 32
Commissions application process. This improved system now allowed an applicant to upload
an attachment and provided each candidate with an automated confirmation email attaching a
copy of their completed application. Given the increase in public records requests, the on -line
request form was completely revised and now included instructions, outlining the city's process
as well as providing each requestor with an automatic response confirming receipt of the
request and provided them with a copy of the request and estimated city response time. To
assist in reducing actual fulfillment hours, staff digitized over 48,000 pages into the city's
electronic document management system and transferred over 10,000 additional records into
the city's external public portal. This site, which was accessible from the city's home page, was
designed for public access for various city records and was extremely useful in saving the public
time and money. In partnership with City Attorney's office, staff conducted four citywide records
training classes and two department specific sessions and at Council's direction, also
coordinated and successfully held the City's first off -site Council meeting at the East Anaheim
Gymnasium. Lastly, she remarked, although the fiscal year was not an election year, in
December staff conducted a special all mail representation election for the Police Lieutenant
Unit, advising that the measure passed.
Ms. Andal stated the service objectives for the coming fiscal year would include review of the
Conflict of Interest Code per FPPC mandate, increased citywide training opportunities and to
address various areas of records management. She noted a long -term goal of the office was to
enhance the records management program and toward that goal, a revised department
schedule and citywide master retention schedule aimed at capturing all common city records
under one schedule would be submitted to Council for approval, which would provide a greater
level of consistent records management. At that time staff would focus on outreach to assist
department coordinators in the management of their filing system and department records to
guaranty compliance with various laws related to the city's newly adopted records retention.
She added this program would extend the current document management shared platform and
increase the number of electronic records available internally as well as publicly on the city's
public portal. The Department also planned to introduce an on -line library of frequently
requested information that would allow the public to check out City Clerk resources from one
central location. She added discussions with various vendors had begun to insure staff kept up
with the digital world by insuring access to city records area available and device - readable by
default. She also reported that for the first time, credit card payment options would be available
for all City Clerk business, either by phone, mail or in person. Lastly, she remarked, in the area
of elections, two council member seats would be considered in November, 2012.
Council Member Murray suggested that all required 700 forms be available on the city's
homepage to further enhance transparency in government.
CITY TREASURER: City Treasurer, Hank Stern, explained there were two divisions in the
Treasurer's office; Investment and Banking, and Collections and Deposits. For his proposed
budget of $3.3 million, there was no material change from the current year, consisting of 12 full -
time positions, eight of those in the collection area taking customer payments on a daily basis.
Performance Measures included total investment return, interest income and the city's credit
rating. For the current fiscal year, total investment returned 2.55 percent, with a total interest
income of $5.3 million. He added the Department hit its target for projected returns, even in
these challenging times. The city's credit rating had been downgraded last year as Standard &
Poors (S &P) had downgraded the US Treasury from AAA to AA +. He added the downgrade
had nothing to do with the safety and liquidity of the portfolio and nothing to do with the
management of the portfolio, it was strictly because the holdings in the portfolio were
downgraded. He pointed out Moody's Investor Service and Fitch Financial Services still rated
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 12 of 32
US Treasury issues as AAA. Mr. Stern pointed out that to date, the city consistently
outperformed market levels while providing safety and had earned $573,000 over budget
projections for the current year on a market basis, and earned over $4.9 million over market
while maintaining safety and liquidity.
Achievements: Mr. Stern reported the cash management fee which was converted a few years
ago provided an annual savings of over $984,000 in the General Fund because the Department
assessed the cash management fee to the investment portfolio itself and the general fund only
made up three to four percent of that investment portfolio. A major achievement was the
banking services RFP and contract which was projected to save over $19,000 per year for the
next five years. The Treasurer's Office also helped secure segregated funds for the successor
agencies to the Redevelopment Agency of about $33 million and invested any bonds the city
issued. He explained once the debt was issue, the charter required his office to be the
investment lead. The electric utility bonds were put into the pool and to date had earned
$400,000 over market. The Treasurer's Office also performed treasury and accounting services
for the Orange County HazMat JPA, Metro Cities Fire Authority JPA and the Supplemental Law
Enforcement Services Fund.
For the collections and deposits division, technology enhancements allowed checks to be
presented to the bank electronically and permitted a larger window to submit deposits for same
day credit. The use of the Discover credit card this year, brought in a signing bonus of $25,000
which benefitted the general fund and the Department also assisted the Utilities Department in
cutting down their credit card cost by finding a niche which could save $300,000 per year on
credit card expenses.
Service Objectives for the coming year would focus on providing safety and liquidity of city funds
and trying to optimize the returns on funds wherever possible. An equipment upgrade would
take place next year and a savings of $20,000 would be realized through staff's diligent
research on equipment acquisition. Staff would continue to assist Public Utilities on the CIS
implementation program to ensure the cashiering function was smoothly integrated into that
process.
Mayor Pro Tem Sidhu asked why interest income had dropped with Mr. Stern replying the fund
balances had declined over the past 4 -5 years and the historically low interest rates in effect
had an effect on the interest income. There were also some items purchased 2 -4 years ago
that would mature in 12 -18 months, and the city would be forced to reinvest those funds at the
current low market rate, pointing out today's interest rate was .26 percent, although the City was
earning 1.44 percent on the entire portfolio. He added the city was governed by the California
Government Code relative to investments and could only buy fixed income investments (dead
issues of the U.S. Government, federal agencies such as Fannie Mae or Home Loans),
corporate medium term notes rated A or better and to a maximum of five year term. He further
added the city had an annual investment somewhat more conservative than the Government
Code and had still been able to make a decent return on investment. Council Member Galloway
asked if the lowered credit rating had an effect on the city with Mr. Stern responding that it had
no material effect on the portfolio. There was further discussion whether it was beneficial to
seek ratings from Moody's or Fitch.
CITY COUNCIL: Bob Wingenroth reported the Council budget of $950,000 included five
elected officials, two full -time and five part-time staff.
CITY ADMINISTRATION: This proposed budget of $4.5 million funded three major areas: the
City Manager's Office, Audit Office and External Affairs. Mr. Wingenroth indicated the budget
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 13 of 32
supported 20 full -time positions, seven in the audit division, 7 in external affairs and 6 in the city
manager's office. In terms of performance indicators, Anaheim Anytime online usage and the
311 call center continued to receive a lot of use by residents. Response times for Anaheim
Anytime's, he remarked, staff only closed 75 percent of requests on time which was due to the
poor performance in addressing graffiti removal as previously mentioned it the Planning
Department's presentation. With the commitment of greater resources and the hiring of a new
firm, it was expected to result in significant improvement in this area, which he added, was one
of his priorities. Starting July, Mr. Wingenroth would be doing random unannounced walks
through neighborhoods to review the city's performance in responding to complaints as well as
proactively removing graffiti. He added city administration had been involved in a number of
initiatives over the past year; i.e., the successful coordination in promoting the Hi Neighbor
initiative, implementing Council's vision for community gardens throughout the city, the team
effort on 9 -1 -1 remembrance events, and the kick -off to the Journey to London Begins
campaign leading up to the upcoming Olympic games.
The upcoming year would focus on improving support to Council and employees, working to
enhance best practices and to advocate for innovation. The audit division would continue to do
their outstanding work and intergovernmental relations would continue to expand and support
city initiatives such as ARTIC, the bike sharing program, the annual job fair and working to
continue building strong communities in some of our most challenging parts of Anaheim.
Council Member Murray remarked that the existing classification levels in the Council budget did
not allow for the flexibility to hire at a higher policy level and would like to recommend an
additional classification for the office holder to determine whether or not to hire a policy person.
She reiterated the request to have staff's 700 forms available on the city's website.
FINANCE DEPARTMENT: Debbie Moreno, Acting Finance Director remarked the Finance
Department contained four components: Finance Administration, Budget and Accounting,
Purchasing and Information Systems. With 33 full -time professionals, the majority work in
budget, accounting and purchasing and was supported by $8 million of the proposed $59.6
million budget. A good portion of the budget went toward citywide information system primarily
handled by HP and towards service payment on the Resort improvement bonds and debt for the
City's Community Facilities Districts.
Performance Measures Ms. Moreno stated the Finance Department worked collaboratively
with internal and external partners to provide responsive services to clients consistent with
Council direction. For FY 2012/13, the percentage of expenditures related to reserves was
projected to be 8.2 percent, consistent with the 7 -10 percent minimum reserve requirement set
by council, revenue forecasting accuracy was within a one percent rate and the city's general
bond debt to assessed property value was relatively low.
Ms. Moreno reported Finance worked diligently each day in the background to procure goods
and services, paying tens of thousands of invoices for those goods and services, making nearly
100,000 payroll disbursements and maintaining the city's more than a square mile data net on a
24/7 basis. The Department streamlined and automated several budget processes to reduce
paperwork and promote efficiencies, rolled out employee self - service (ESS) time sheet reporting
in a pilot program to a couple of departments and converted 95 percent of all bids and RFP's to
electronic distribution and receipt. Some more visible accomplishments in the IS area was the
implementation of mobile Council meeting network to allow remote streaming from off -site
locations, implementation of a mobile friendly version of Anaheim.net, Hi neighbor and
emergency preparedness sites. In budget and accounting, the Department received a pre -
noted opinion with no findings or comments from the external auditor for both the
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 14 of 32
Comprehensive Annual Financial Report (CAFR) and the single audit report of federal
expenditures for FY 2010/11 and also received the Government Finance Officers Association
(GSOA) distinguished budget award for FY 2011/12. In purchasing, the Department
implemented new processes for asset dispositions to maximize sales revenues and redesigned
web pages to improve communications and ease of use for suppliers.
For the next year, staff would continue to strive for excellence in service to both internal and
external customers and would replace aging storage area networks to expand data storage
capabilities and to provide a more efficient manner to store data. IS would install and configure
a citywide video conferencing solution and would work with Anaheim Convention Center to
implement software solution to help track power usage and provide imaging data mapping and
dashboarding to track energy efficiency. Budget and accounting will continue to streamline
where possible to ensure efficiency and focus on internal and external customer satisfaction,
maintaining high standards of excellence. Finance would implement five new accounting
standards issued by Government Accounting Standards Board or GASB, and purchasing would
continue to support outreach activities by participating in budget development conferences and
hosting a trade show.
HUMAN RESOURCES DEPARTMENT (HR): Human Resources Director Kristine Ridge
reported her department was responsible for providing a full range of services to ensure the city
had the most qualified work force capable of meeting each operating department's service
requirements. The total proposed budget was $152 million, comprised of both operating budget
of $8 million, and a non - operating budget of $144 million. The operating budget funded the on-
going activities of each functional area in HR which included 38 full -time positions, while the
non - operating budget represented the proposed citywide expenditures for all employee health
and welfare programs and insurance programs. These expenditures included the required
retention contributions, medical insurance and workers compensation.
Performance indicators tracked were the voluntary employee turnover rate and the
effectiveness rating of the training program. Under normal times, Ms. Ridge hoped to see less
than four percent in the voluntary turnover rate, however for the last year and current year to
date, that figure had been exceeded primarily due to intentional downsizing. The other
published indicator was fairly new and result of implementation of an effectiveness survey
conducted regarding the Department's training program. The rating represented the percentage
of participant's that reported training classes as effective, very effective and improving skills to
do their job performance. During these challenging times, she noted, departments had seen
increased workload in employee relations, training and benefits but through the realignment of
existing resources HR still achieved several accomplishments this year.
The Employee Relations Group had significant progress towards achieving local pension
reforms achieved by taking necessary steps in order to establish a two -tier pension system and
increased cost sharing with employees. There had also been a 91 percent resolution of
grievances and over 231 disciplinary actions. Information Services which maintained and
enhanced the HR system processed over 144,700 transactions with close to 100 percent
accuracy rate, while still remaining responsive to ad hoc requests throughout the year. In the
area of training, staff delivered over 700 hours of training based on organizational needs, still
met demands to provide customized strategic planning, and completed the first academy
focused on customer service along with introduction of an office professional's academy. In the
area of recruitment, a number of applications received for the few open recruitments conducted
were overwhelming but with the full implementation of on -line application systems, thousands of
applications were streamlined. For risk management, she remarked, this group continued to
receive national recognition, saving the city millions of dollars by administering in -house top-
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 15 of 32
notch programs. This year the risk group achieved a disabling injury rate of less than 1 per 100
employees, 60 percent less than comparable agencies. HR passed a comprehensive state
workers comp audit while still remaining very proactive in providing safety training throughout
the organization, from defensive driving to dealing with confined spaces. The benefits group
was responsible for saving millions of dollars through marketing medical insurance plans for
2012 while keeping lid on other health plan costs, and for those participants in defined
contribution savings program, there were savings from significantly reduced investment fees as
a result of consolidation and negotiations. In addition, the citywide wellness program called
Anaheim in Motion (AIM) began, funded from two medical insurance providers.
For the next fiscal year, staff would continue with labor negotiations for both public safety
groups and IBEW, would continue to pursue a second tier pension plan and following efforts
introduced this year at citywide management meeting, and would be working on value based
employee culture as well as looking forward to working with the new city manager on any other
citywide workforce initiative.
Mr. Wingenroth ended the departmental presentations by informing Council that the city's
Budget Investment Technology Commission had reviewed the proposed budget and
recommended adoption. The Commission also recommended that due to the continuing
economic uncertainty, the one -time budget enhancements wait until mid -year to confirm overall
revenue estimates were hitting their targets.
PUBLIC COMMENTS ON FISCAL YEAR 2012/13 BUDGET:
William Fitzgerald, Anaheim Home, objected to the loss of police officers in the budget as
compared to previous years, expressing the opinion that loss led to increased crime.
Cecil Corcoran Jordan, Outreach Homeless Ministries, offered comments unrelated to the
budget.
At this point, Mayor Tait continued the FY 2012/13 budget public hearing to Item No. 32 on the
agenda, the adoption of the budget.
At 4:58 P.M., Mayor Tait briefly recessed the meeting, reconvening at 5:12 P.M. for the
remainder of the City Council agenda.
Invocation: Pastor Roger Frick, Zion Lutheran Church
Flag Salute: Council Member Lorri Galloway
ADDITIONS /DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (all items, except public hearing):
Bob Wingenroth, City Manager, briefly addressed comments made during the June 5, 2012
Council meeting regarding allegations against the Police Department and advised that an
independent review would be conducted of major police incidents and presented to Council in a
workshop. He further provided locations where formal departmental complaint forms could be
obtained, including all city libraries, police department headquarters and on the city's website,
by selecting the Police Department, then selecting the button for customer service.
Cecil Corcoran Jordan discussed his philosophy on promoting a good community
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 16 of 32
James Robert Reade, resident, discussed citizen rights as it related to public comments and
efforts of the Police Department to perform their duties.
William Fitzgerald, Anaheim Home, commented on drug seizures and related use of drug
forfeiture funds.
John Santioanni, resident, voiced his opposition to extending the Schedule of Performance
regarding the Economic Assistance Agreement with Lake Development. He stated the
developer was requesting a second extension to an incentive agreement approved in 2009 and
he believed delaying construction to year 2015 was not in the best interests of the city.
Kathleen Heard, resident, also spoke in opposition to the Lake Development extension
remarking if a developer was not able to secure private financing or partners to build a three -
star hotel, then the free market was not able to sustain this caliber of development.
Mrs. Rosales urged council to not cut the budget for the Ponderosa Library. Council Member
Murray responded that the funding for Ponderosa Library was in the proposed budget and every
member of council was in support of it.
Estella Garcia, Ponderosa neighborhood, thanked Council for funding the Ponderosa Library
operations in the coming fiscal year.
Ms. Riviera, student, detailed the benefits libraries offered to young students.
Marta Riviera, resident, stated she attended this meeting to thank the City Council for their
support of the library.
Maria, student, stated her homework and education improved with the use of the local library.
Alejandra Delagano, 4 th grade student, requested the Ponderosa Library be available to the
community.
Arturo G. support the opening of the Ponderosa Library as a way to change the south district
community for the better
Council Member Eastman responded that during the budget hearing earlier, it was determined
that the Ponderosa Library would be open and in operation five days a week as of July 21
Kevin Devon, resident, addressing the Lake Development, opposed another hotel incentive
using taxpayer dollars.
Larry Larsen, resident, opposed the Lake Development extension, remarking it would then be
six years from the original contract approval before construction began. He felt the developer
had no real interest in building a hotel and wanted to retain the development agreement until a
buyer was found.
Joseph Cardenas, in support of his brother, Peter Cruz, believed excessive police force had
been used in the Police Department and should be addressed.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 17 of 32
Jose Vargas, Orange County Young Democrats, urged Council to vote no on the tax incentive
for Lake Development because there were too many city services and resources aimed at
maintaining quality of life issue facing drastic cuts.
Dorothy Rose, Orange County Symphony, reported on the first POPS concert to be held at the
Anaheim Arena, a new event and new tradition to benefit the community. She invited all to
attend this affordable event on July 7
Brian Chuchua, resident, opposed the Lake Development extension, stating the give -away of
future tax dollars in a time of economic need was wrong.
Joanne Sosa, Take Back Anaheim, remarked the approval process for hotel incentives was
flawed and should be changed to allow for public input. She opposed the Lake Development
amendment stating the market would not support the development of a luxury hotel at this time.
Marlena Carillo, Kelly's Army, addressed the need for transparency regarding police brutality
against civilians. She recommended having a citizens' oversight committee to work closely with
the investigation of the Police Department.
Larry Lake remarked Lake Development LLC was committed to the project from the start and
had spent millions of dollars on the project as he controlled the long -term ground lease. He
added he expected the economy to recover and was requesting the extension to allow the
project to go forward.
Jerry Zamarodian, businessman, stated the Anaheim Police Department was one of the best in
the county, keeping the city safe and providing security for all.
Dr. Wayne Palmer, resident, remarked the twin engine fixed wing aircraft requested by the
Police Department offered an extended observation aircraft to fly and collect information on
activity below and was essential for logistics and reconnaissance. It had the capability of saving
lives and decreasing the cost of helicopter deployment over time with less wear and tear over
air crews. He urged Council to approve the purchase of this law enforcement tool. He also
requested the City Attorney find a way to end the untrue rhetoric and deprecating remarks made
by some during public comments.
Jill Kanzler, SOAR, expressed support for Lake Development and their efforts to extend their
application to build a high end resort in the Resort District, stating the benefits would be many.
Tim Conlon, California Yellow Cab, requested Council reconsider the taxi franchise award of 50
vehicle permits to A -Taxi. He stated A -Taxi turned in incomplete financial information which
should have been rejected and returned according to the Request for Proposal. In addition,
A -Taxi did not disclose they entered into a stipulated judgment with Mercury Insurance after
Mercury filed a breach of contract lawsuit seeking to recover almost $160,000 in deductible
payments owed them from over 80 accident claims. The stipulation called for A -Taxi to make
$10,000 payments each month to Mercury until the amount owed was satisfied. Mr. Conlon
added that it appeared A -Taxi intentionally withheld information from staff, asking that Council
find them nonresponsive and disqualify them from the process.
Matt Trujillo, California Yellow Cab, remarked that with this stipulated judgment, A -Taxi may not
have the finances to convert to CNG as indicated in their proposal to purchase and convert
Chrysler Town & Country vans to CNG vehicles. The cost would be significant and take one to
two years to complete and Mr. Trujillo felt this plan was unrealistic.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 18 of 32
Greg Aikens, California Yellow Cab, remarked that A -Taxi had omitted pertinent information on
its proposal which should be considered and only California Yellow Cab and Yellow Cab of
Greater Orange County provided all the information required by the request for proposals.
Lisa Gin, Eli Home, invited Council to the summer fundraiser, Caribbean Mid - Summer Night, on
July 14 at the Anaheim Hilton.
Todd Ament, Anaheim Chamber of Commerce, thanked Council for one of the most successful
job fairs in Orange County. Over the past four years, with Mayor Pro Tern Sidhu's vision, the
companies reporting back to date indicated there were over 1,200 jobs filled, with another 500
happening this year. He was also offered his support to the extension for the Lake
Development citing 1,400 construction jobs, 400 permanent jobs and over the next 20 years, the
potential for $56 million for the general fund.
William Gray, A White and Yellow Cab, responding to earlier comments, stated their audited
statements were submitted by a CPA with no missing financial information. He added his
Anaheim fleet vehicles were 3 % years old, the CNG revitalization was already underway and
his company was strong, had a commitment to the city of Anaheim since 1986 and was
supported by the population.
Sandy Day stated the Doubletree project that was approved by Council ten years ago had
generated $8.6 million in transient occupancy tax (TOT) through June 12, 2012 and the City
rebated 50 percent of that back. In addition Doubletree paid over $297,285 in TID taxes since
November 2012. These projects, she added, were the perfect example of successful public/
private partnership.
Amin David, resident, urged Council vote no on Item 17, the Lake Development, as he opposed
any tax subsidy for development.
A gentleman stated it was reasonable to provide subsidy for the Lake Development in 2009, but
was not appropriate to continue it for the future. He asked Council to pull the item from the
consent calendar for the public to understand the discussion on whey it should be approved or
denied.
CONSENT CALENDAR: Council Member Murray removed Item No's. 2,6 and 22 from the
consent calendar for further discussion and would record an abstention on Item No. 24. Council
Member Eastman pulled Item No. 4 and Mayor Tait pulled Item Nos. 17 and 21. Mayor Tait
declared he would abstain on Item Nos. 10 and 27 due to a potential conflict of interest due to
work his firm may have done with these businesses. Council Member Eastman moved to waive
reading in full of all ordinances and resolutions and to approve the balance of the consent
calendar as presented, seconded by Council Member Galloway. Roll Call Vote: Ayes — 5:
(Mayor Tait and Council Members: Eastman, Galloway, Murray and Sidhu.) Noes — 0. Motion
Carried
1. Receive and file the Budget, Investment and Technology Commission recommendation
B105 dated June 13, 2012 and minutes of April 18, 2012, Community Services Board minutes
of April 12, 2012, Public Utilities Board minutes of April 18, 2012, Cultural and Heritage
Commission minutes of April 19, 2012, and Parks and Recreation Commission minutes
of April 25, 2012.
3. Receive and file the Beach Boulevard corridor update report.
D160
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 19 of 32
D117 5. Approve the Investment Portfolio Report for May 2012.
D128 7. Authorize the Purchasing Agent to issue purchase orders, in an amount not to exceed $
3,882,751 (plus applicable taxes), for various City vehicles for the 2012/13 fiscal year.
8. Accept the low bid of Club Car, LLC, in the amount of $675,954, for the lease and
maintenance of 159 golf vehicles for a three year term and approve the required lease
documents with Agricredit Acceptance, LLC, for the three year lease of the golf carts, in
AGR -7252 accordance with Bid # 7639.
9. Award the contract to the lowest responsible bidder, International Line Builders, Inc., in
the amount of $5,157,208.55, for the Underground District No. 59 Phase 1 Project
AGR -7253 (Brookhurst Street from Katella Avenue to Ball Road) and authorize the Finance Director
to execute the Escrow Agreement pertaining to contract retentions.
10. Approve the Agreement for Advance of Site Improvement Contribution and Potential
AGR- 1460.V Damage Mitigation Costs with Lewis R. Schmid and Judith E. Schmid, Trustees of the
Schmid Family Trust, and J. T. Restaurants, L.P., in the payment amount of $133,000,
for the property located at 2600 -2620 East Katella Avenue and 1730 South Douglass
Road for the ARTIC project.
Roll Call Vote to approve Item 10: Ayes - 4: (Mayor Pro Tem Sidhu and Council Members:
Eastman, Galloway and Murray.) Abstention - 1: (Mayor Tait). Noes - 0. Motion
Approved.
11. Approve a Cooperative Agreement with the Cities of Fullerton, La Habra, Garden Grove,
Santa Ana, and Fountain Valley, in the amount of $63,280 as a matching fund, for the
AGR - 4260.1 Euclid Street Regional Traffic Signal Synchronization Project.
12. Approve a License Agreement with Community SeniorSery to utilize Brookhurst
Community Center, on a shared basis, to provide a comprehensive meal program that
AGR- 4659.0 includes recreational activities and social service programs to senior citizens.
13. Approve an agreement with the Anaheim City School District for two years to continue
AGR - 1571.E providing Park Ranger patrols of school facilities.
14. Approve an agreement with the Savanna Elementary School District for one year to
AGR- 5576.D continue providing Park Ranger patrols of school facilities.
15. Approve a License Agreement with Western Youth Services for the continued use of
Manzanita Park Family Resource Center for administrative offices and program space
AGR- 3194.G as part of the County of Orange Social Services grant program.
16. Approve a Right of Entry and License Agreement with the Downtown Anaheim
Association for the purpose of conducting a certified farmer's market at the Ponderosa
AGR- 6798.A Park Family Resource Center.
AGR- 2908.K18 Approve and authorize the City Manager to execute and administer the Workforce
AGR - 2909.1 Investment Act Training Program Vendor Agreements, and any amendments, with
AGR- 2777.G various training vendors for occupational skills training (Brem Industries, Inc., Brownson
AGR- 5846.0 Technical School, Inc., Career Networks Institute, Inc., E. Cubics LLC, Fortuna
AGR - 6327.13 Education, LLC, Healthstaff Training Institute, Inc., Integrated Digital Technologies, KML
AGR -4544. E
AGR- 6055.0 AGR- 4444.E
AGR- 5478.D AGR- 5919.0
AGR - 3674.E AGR- 3247.A
AG R- 3078.1
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 20 of 32
Enterprises Career Development, Kensington College, Inc., Larson Training Centers,
Inc., Medtech Educational Services, QPE Technical Institute, Inc., Southern California
Education Corporation, Summit Career College, Inc., and United Education Institute).
19. Approve and authorize the Public Utilities General Manager to execute and take the
necessary actions to implement and administer Task Order No. 10 to the Master
AGR- 4746.A.1.0.3 Consulting Agreement with Ventyx, Inc., and any other related documents, in an amount
not to exceed $88,550, to provide reconfiguration and technical support services to the
Public Utilities Department.
20. Approve and authorize the Public Utilities General Manager to execute and take the
necessary actions to implement the Direct Payment Agreement, and any other related
AGR- 1865.E documents, with State of California, Department of Community Services and
Development to directly receive federally funded Low - Income Home Energy Assistance
Program grants for the benefit of the Anaheim Public Utilities Department low- income
energy customers from July 1, 2012 through September 30, 2014.
23. RESOLUTION NO. 2012 -057 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM vacating a portion of two public utility easements located at
Pilo 1584 West Katella Avenue pursuant to the California Streets and Highway Code Section
8330, et seq. - Summary Vacation (Abandonment No. ABA2012- 00246).
24. RESOLUTION NO. 2012 -058 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM initiating proceedings for the annual levy of assessments in,
and accepting and assessment engineer's report for, the Anaheim Resort Maintenance
T106 District.
RESOLUTION NO. 2012 -059 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 July 10, 2012,
Brookhurst Community Center, 2271 W. Crescent Avenue).
Roll Call Vote to approve Item 10: Ayes — 4: (Mayor Tait and Council Members: Eastman,
Galloway and Sidhu.) Abstention — 1: (Council Member Murray). Noes — 0. Motion
Approved.
25. RESOLUTION NO. 2012 -060 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM calling and giving notice of the holding of a General Municipal
Election to be held on Tuesday, November 6, 2012, for the election of certain officers
required by provisions of Article XIII, Section 1300 of the City Charter.
RESOLUTION NO. 2012 -061 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM requesting the Board of Supervisors of the County of Orange
E127 to consolidate a General Municipal Election to be held on November 6, 2012, with the
Statewide General Election to be held on that date pursuant to Section 10403 of the
Elections Code.
RESOLUTION NO. 2012 -062 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting regulations for candidates for elective office
pertaining to candidate statements submitted to the voters at an election to be held on
Tuesday, November 6, 2012.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 21 of 32
26. RESOLUTION NO. 2012 -063 A RESOLUTION OF THE CITY COUNCIL OF
D154 THE CITY OF ANAHEIM amending Resolution No. 2010 -008 for the purpose of
modifying a certain classification designated as Administrative Management.
RESOLUTION NO. 2012 -064 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending Resolution No. 2010 -009 for the purpose of adding,
deleting and /or modifying certain classifications designated as Middle Management.
D160 RESOLUTION NO. 2012 -065 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending Resolution No. 2010 -011 for the purpose of deleting
certain classifications designated as Professional Management.
RESOLUTION NO. 2012 -066 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending Resolution No. 2010 -010 for the purpose of
modifying certain classifications designated as Supervisory Management.
RESOLUTION NO. 2012 -067 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing rates of compensation for classifications assigned
to the Anaheim Municipal Employees Association, General Unit.
27. ORDINANCE NO. 6248 (ADOPTION) AN ORDINANCE OF THE CITY OF
ANAHEIM (1) approving Amendment No. 1 to Development Agreement No. 2006 -00003
AGR- 4704.1 by and between the City of Anaheim and The Orangewood Project Owner, LLC, (2)
making certain findings related thereto, and (3) authorizing the Mayor to execute said
amendment on behalf of the City (Introduced at the Council meeting of June 5, 2012,
Public Hearing Item No. 15).
Roll Call Vote: Ayes — 4: (Mayor Pro Tem Sidhu and Council Members: Eastman,
Galloway and Murray.) Noes — 0. Abstain -1: Mayor Tait. Motion to approve carried.
28. Approve minutes of the Council meetings of May 29, 2012 and May 31, 2012.
END OF CONSENT CALENDAR:
2. Receive and file the Anaheim Sister City Commission activities update report
Greg Garcia, Deputy City Manager /Administration, reported Anaheim had been involved in
sister city activities since 1976, entering into an agreement with Mito, Japan. Shortly thereafter,
B105 the Anaheim Sister City Association was formed, a non - profit group of residents interested in
promoting cultural and educational exchange. In 1998, he pointed out, the second sister city
relationship with Vito ria - Gasteiz, Spain was formed. In September of 2009, Council recognized
the need to refocus the mission of these relationships and sought to expand the objectives of
the program, asking for more groups to become involved and for a focus on business and
economic development opportunities. To achieve this goal, the Anaheim Sister City
Commission was created and since its conception, the 15 volunteer commissioners explored
new opportunities in economic development in international commerce with each of the existing
sister city partners and other potential partners. He highlighted some of the recent activities,
such as the Kindness Campaign resulting from the Japan tsunami disaster, the recent
delegation hosted in Vitoria - Gasteiz and the annual Mito, Japan exchange program occurring in
Anaheim in July.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 22 of 32
John Nguyen, Chair, explained that no public funding was received by the organization whose
budget was derived from fund - raising efforts. All members who participated in delegation tours
also paid for their own expenses. He reported on the recent trip to Vitoria - Gasteiz, a city that
received the European green capital award for 2012 -13 and the various activities enjoyed there.
He informed the community that Mito, Japan was sending 12 exchange students to Anaheim for
a week of education and cultural exchanges in July and the Commission would provide
continuing updates for council and the community and hoped to receive input on future plans.
Council Member Murray was interested in hearing frequent updates, including disclosing any
costs on the Commission's activities and looked forward to Council being involved in welcoming
and honoring delegations from both sister cities. She indicated she would appreciate having
staff draft a program as to how to review and structure future trips and to work with the
Commission going forward. Mr. Garcia remarked the Commission was interested in putting a
plan together and would provide quarterly updates to Council which included full financials and
where the Commission stood on fund - raising and scheduled activities.
Council Member Murray moved to receive and file the Anaheim Sister City Commission update,
seconded by Council Member Galloway. Roll Call Vote: Ayes — 5: (Chairman Tait and Council
Members: Eastman, Murray, Galloway and Sidhu.) Noes — 0. Motion Carried.
4. Approve an Employment Agreement with Bob Wingenroth for services as City Manager.
Kristine Ridge, Human Resources Director, reported this item was for the approval of a standard
employment agreement with Bob Wingenroth as City Manager, stating that Council Member
Eastman had discussed this earlier with her and given the reimbursement for relocation
expense clause additional consideration. She remarked the incentive to encourage Mr.
Wingenroth to live within city limits was in the form of a reimbursement for relocation expenses
and was capped at $7,500. Council Member Eastman remarked that the City Charter had a
requirement the City Manager reside in Anaheim, however, California law ruled that residency
could not be a condition of employment. Currently, she understood Mr. Wingenroth had
property out of state and recommended a $20,000 reimbursement cap be offered and moved to
AGR -7251 amend the agreement increasing the reimbursement of relocation expenses to $20,000
seconded by Council Member Murray. Mayor Tait indicated he would oppose that amendment
as Mr. Wingenroth had already agreed to the original terms of the contract before that was
Council this evening. Roll Call Vote: Ayes — 4: (Mayor Pro Tem Sidhu and Council Members:
Eastman, Galloway, and Murray.) Noes — 1: Mayor Tait. Motion Approved.
Mayor Tait then moved to appoint Bob Wingenroth as City Manager, seconded by Mayor Pro
Tem Sidhu. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Eastman, Galloway,
Murray and Sidhu.) Noes — 0. Motion to appoint Bob Wingenroth as City Manager approved.
6. Deny the request for rehearing submitted by California Yellow Cab's for a taxi franchise.
Planning Director Sheri Vander Dussen reported taxi franchises had been granted in May, 2012
and there was now a request from one of the companies awarded a franchise for a rehearing on
the Council's decision to grant cabs to A -Taxi. There were two issues brought up as part of the
rehearing; i.e., the financial information disclosed (which Council considered in May) and that
F130.2 A -Taxi had not disclosed a stipulation judgment in their proposal. Ms. Vander Dussen stated
should Council wish to grant a rehearing, the Municipal Code stated the prior decision to grant a
taxi franchise would be set aside and the existing franchises would become invalid at the end of
June. If that occurred, A -Taxi would not be allowed to operate until Council took some type of
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 23 of 32
action to either grant A -Taxi a franchise or to reallocate those 50 cab permits to other
companies.
Council Member Murray asked for more explicit information on the financial information
requested in the proposal and how it was graded. Sandra Sagert, Community Preservation
Manager, stated under the financial capacity and stability section of the evaluation, A -Taxi was
voted and evaluated at 15 percent and the audited financials was one of seven items evaluated.
The other items were documentation of lines of credit, other financial resources to purchase
equipment, outstanding debt, pending or past litigation, pending or past bankruptcy filings,
insurance and bonding capabilities and realism and feasibility of the company's proposed
financial business plan. With regard to a statement made during public comments of missing
documents in the audited financials, Ms. Sagert remarked the group fully reviewed all
information given with the audited financials sent to an auditor for evaluation on an expert level
and those audited financials were deemed inconclusive by the auditor as they were missing
documents. The missing financials, she stated, were not required to be dismissed if they were
deemed inconclusive or if there was incomplete information.
Council Member Murray felt on the issue of a new judgment coming to light after the fact, a
rehearing was warranted. She also requested a regulatory body such as OCTAP participate in
that rehearing. Council Member Eastman shared some of those concerns as well and
seconded the motion. Mayor Tait opposed the rehearing on the basis there had been months
of analysis, an exhaustive evaluation had been performed and an independent committee had
come up with a recommendation. Roll Call Vote: Ayes — 3: (Mayor Pro Tern Sidhu and Council
Members Eastman and Murray.) Noes — 2: (Mayor Tait and Council Member Galloway).
Motion for a rehearing was granted.
17. Approve and authorize the City Manager to execute Amendment No. 2 to the Economic
AGR- 5655.2 Assistance Agreement with Lake Development - Anaheim, LLC to extend the Schedule
of Performance by two years as it relates to the development of a luxury boutique hotel
and other uses.
Acting Executive Director John Woodhead, Community Development Department, reported in
April of 2008 Council adopted a program to spur construction of new higher quality hotels within
the Anaheim Resort and the Platinum Triangle by offering economic assistance. With this
program, Council could consider funding some portion of the hotel development economic
feasibility gap using a portion of the TOT generated by the hotel and received by the city above
a threshold and below an annual ceiling for a period of up to 15 years. In March, 2009, Council
approved an economic assistance agreement with Lake Development Anaheim LLC for the
development of a nine story hotel located on 2.5 acres at Harbor Boulevard and Katella Avenue.
In March of 2009, the city's real estate economist, Keyser Marston Associates estimated the
feasibility gap for the project was $24 million (net present value figure). Under this agreement,
the developer could receive a maximum economic assistance of $24 million net present value;
however, Keyser Marston estimated that the owner would only receive $19.4 million in
assistance over 15 years (a net present value of $10.5 million) and the City would receive TOT,
sales tax and property tax from the project over the same period equal to $33.1 million or a net
present value of $18.2 million. He added Anaheim's share of these revenues over 20 years was
estimated to be a little over $56.5 million (net present value of $24 million). The project was
also expected to create an estimated 1,400 construction jobs and 400 permanent jobs with the
construction jobs subject to the payment of prevailing wages due to the fact there would be a
subsidy from the city involved with the project's financing.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 24 of 32
The agreement's scheduled performance required the completion of construction drawings by
June 30, 2010 and the commencement of construction by March 30, 2011. Due to a continuing
weak economic environment, in 2010, the owner requested and the city agreed to amend the
agreement to extend the schedule of performance to require the completion of construction
drawings by June 30, 2012 and the commencement of construction by March 30, 2013. With
the continuing challenging economic climate and persistent difficulty financing hotel
construction, the developer requested to extend the schedule of performance by another two
years. Keyser Marston confirmed overall economic financing conditions improved in some
categories but that hotel construction was recovering more slowly and it would likely be several
more years before conditions returned to pre- recession levels. He added the original 2009
costs estimates had not changed appreciably nor were they likely to decrease and there were
no changes to the business terms of the agreement originally approved in 2009. This
extension, if granted, would require the developer to complete construction drawings by June
30, 2014 and begin construction by March 30, 2015. Because the project still had a feasibility
gap of $24 million (net present value) and Keyser Marston believed that would be bridged only
in part with the city's economic assistance of $19.4 million (net present value of $10.5 million),
staff recommended approval of the amendment.
Council Member Eastman remarked this hotel was fully designed and fully entitled and reflected
a unique property in a high profile location. Disney just invested $1 billion into their California
Adventure and Cars Land and more visitors were anticipated. She pointed out a lot of bookings
were lost to south county because there were limited numbers of high end rooms available in
Anaheim and this four star hotel would cater to that market. She believed in extraordinary
times, extraordinary means were called for and she would support this extension.
Council Member Murray concurred and asked clarification questions of Mr. Woodhead with Mr.
Woodhead confirming that the city had not put in any money into the development to date.
Further, when asked if there would be any cost to the general fund if the development did not
occur, Mr. Woodhead advised that no impact to the general fund would occur. In response to
additional questions, Mr. Woodhead provided that TOT was paid by visitors and that with an
economic assistance program, assistance is earned on an annual basis from the revenue
derived from the property itself. In remarking the city had invested no funds into this project to
date but in the long -term it could mean millions in revenue to the general fund and the only way
to grow those revenues was to work with private interests to generate economic value to the
city. For those reasons she would support the amendment. She made some comparisons with
the Gardenwalk project and added she would appreciate having a workshop on what other cities
were crafting in the way of economic incentives, particularly with cities along Anaheim's border
and provided her support this amendment.
Council Member Galloway expressed that she believed the Council had a fiduciary trust to
protect future revenue. She remarked that in 2009, the Lake Development hotel projected
$70,359,000 TOT value over a 15 year period with the developer receiving $44 million and the
taxpayers receiving $26 million. She added if a developer wanted a certain percentage from the
city, taxpayers had the right to ask for a percentage of ownership or to have the interest back on
the loan or some type of community investment and absent that, she would not support the
extension. She explained that Anaheim should think like investors when developers ask for the
city to invest in their project. She further added that TOT and sales tax should not be
considered because 100% belonged to the city, by right.
I am not against development. Developer is asking for help — and will get money from other
investors. So, the difference is that he is coming to Anaheim and so Anaheim is getting TOT
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 25 of 32
and sales tax, I want help. He is asking Anaheim to be his investor, his business partner. Then
we should think like investors. What is our gain — why should we give you money. TOT and
sales should not be considered because by right that is ours. Prudent to ask questions. I would
like more dialogue. I would like to talk — I think we can get there.
Mayor Pro Tern Sidhu remarked he had voted for this agreement in 2009 and as a
businessman, he understood the challenging economic climate and moved to grant the two year
extension to the Lake Development, seconded by Council Member Murray.
Mayor Tait explained that the city would be required to write a check to the developers for the
tax charged to them and therefore this agreement was "hard" general fund money. He
responded that economic incentives created an uneven playing field and this agreement would
result in inhibiting economic development and stifle economic development and the general
fund. He agreed with Council Member Eastman that the subject property was a unique
property, at the corner of Harbor and Katella, next door to Disneyland and California Adventure
and its recent billion dollar investment, adding that it was built without any assistance from
Anaheim; he added that this corner was the Main Street of Orange County and therefore
questioned why we would subsidize the property to build a hotel. In response to a public
speaker, he added he supported Doubletree's economic assistance agreement approximately
ten years ago, in the wake of the was voted 9/11 tragedy, and in retrospect, he wished he had
not agreed to it.
Roll Call Vote: Ayes — 3: (Mayor Pro Tern Sidhu and Council Members Eastman and Murray.)
Noes — 2: Mayor Tait and Council Member Galloway. Motion to approve carried.
21. Withdrawn by staff.
Authorize the Purchasing Agent to make any minor changes in the details to the
agreement with Pacific Air Center, LLC, which may become necessary, so long as such
D180 changes do not alter the make, model, specifications or price of the Aircraft or the
general terms of the agreement (Continued from Council meeting of June 5, 2012, Item
No. 13).
Mayor Tait remarked this item had been previously approved by council and was back on the
agenda as he had requested the city manager look into concerns voiced for this fixed wing
aircraft.
City Manager Bob Wingenroth reported the Cessna aircraft had 10 seats which included a seat
for both pilot and co- pilot. To outfit the aircraft for specialty equipment and a work station, two
seats would be removed for the console, two additional seats removed to allow access for the
pilot and co -pilot to move around the console to the back of the plane, one seat was for the
operator of the equipment and one seat set up with communication equipment to allow the Chief
to look over a situation and be able to communicate with the ground. This would leave two
vacant seats. Mr. Wingenroth added there had been discussion as to whether a smaller, less
expensive plane could be used in lieu of the Cessna and it was determined that a plane had to
have lift capacity to take on the electronic equipment used by the Department and the Cessna
turboprop had a better safety record and created more usable amperage to operate the
surveillance equipment. He added based on his review of this plane, he believed it to be an
appropriate tool for the department to use in addition to their two existing helicopters.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 26 of 32
Mayor Tait appreciated the analysis, indicating this item would be withdrawn as it had already
been approved at a previous council meeting.
22. RESOLUTION NO. 2012 -056 A RESOLUTION OF THE CITY COUNCIL OF
R100 THE CITY OF ANAHEIM authorizing application for funds for the Bicycle Corridor
Improvement Program funded with Congestion Mitigation and Air Quality Program funds
under the 2005 Safe, Accountable, Flexible, Efficient, Transportation Act - Legacy for
Users or Subsequent Federal Transportation Act for the West Anaheim to ARTIC Bicycle
Connector project and if awarded, authorizing the acceptance of such funding on behalf
of the City and amending the budget accordingly.
Mark Vukojevic, Deputy City Engineer, explained this resolution was to authorize the City and
the Public Works Department to submit a grant application for a new grant from Orange County
Transit Authority for bicycle corridor improvements. He added this was a competitive grant
among other cities in the county and Anaheim had put together an application for about eight
miles of bike lanes connecting West Anaheim from Ball and Magnolia to ARTIC and the Santa
Ana River.
Council Member Murray moved to approve RESOLUTION NO. 2012 -056 OF THE CITY OF
ANAHEIM authorizing application for funds for the Bicycle Corridor Improvement Program
funded with Congestion Mitigation and Air Quality Program funds under the 2005 Safe,
Accountable, Flexible, Efficient, Transportation Act - Legacy for Users or Subsequent Federal
Transportation Act for the West Anaheim to ARTIC Bicycle Connector project and if awarded,
authorizing the acceptance of such funding on behalf of the City and amending the budget
accordingly; seconded by Council Member Eastman. Roll Call Vote: Ayes — 5: (Mayor Tait and
Council Members: Eastman, Galloway, Murray and Sidhu.) Noes — 0. Motion Carried.
29. Consider creating an ordinance regulating garage sales.
Planning Director Sheri Vander Dussen reported for the past several years the City had
received numerous complaints from residents regarding garage sales, with some being held on
a daily basis, some resembling swap meets and instances when owners rented their lawns for
M142 garage sales. Staff had researched other municipalities handling of garage sales and how to
address site litter, traffic, and signage and was seeking council's direction as to whether the
regulation of garage sales would have value.
Mayor Tait recommended staff be directed to draft an ordinance for council's consideration.
Council Member Eastman suggested a workshop with public input to be a part of the process.
Discussion was held regarding a no cost permit and the burden of enforcement ending with the
remark staff would consider how to outreach, inform and educate the public with the least
impact.
Council Member Eastman moved to direct staff to create ordinance regulating garage sales and
return to council for consideration at a public hearing, seconded by Council Member Galloway.
Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Eastman, Galloway, Murray and
Sidhu.) Noes — 0. Motion Approved.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 27 of 32
30. Consider appointments /re- appointments to city Boards and Commissions where those
B105 terms expire June 30, 2012 and make an appointment to fill an unscheduled vacancy on
the Sister City Commission, term to expire June 30, 2014. All scheduled vacancies will
be for a term of four years, expiring June 30, 2016, except the scheduled Sister City
Commission appointments where the terms are for three years, ending June 30, 2015.
Mayor Pro Tern Sidhu moved to reappoint all incumbents seeking re- appointment and continue
the remaining vacancies to the July 10, 2012 meeting, seconded by Council Member Galloway.
Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Eastman, Galloway, Murray and
Sidhu.) Noes — 0. Motion Carried.
Budget, Investment and Technology Commission:
Appointment: Continued to July 10, 2012
(vacancy of Mehdi Reza Hirji)
Appointment: Continued to July 10, 2012
(vacancy of Mark Whitaker)
Community Center Authority:
Appointment: Continued to July 10, 2012
(vacancy of Larry Slagle)
Community Services Board:
[Re]Appointment: Grant Henninger
(Incumbent, Grant Henninger)
[Re]Appointment: Earl Kelso
(Incumbent, Earl Kelso)
Appointment: Continued to July 10, 2012
(vacancy of Julia Wright)
Cultural and Heritage Commission:
[Re]Appointment: Chris Maya
(Incumbent, Chris Maya)
Housing and Community Development Commission:
[Re]Appointment: Chris Emami
(East District; Incumbent, Chris Emami)
Park and Recreation Commission:
[Re]Appointment: Samantah Navarro
(Incumbent, Samantha Navarro)
Planning Commission:
[Re]Appointment: Victoria Ramirez
(Incumbent, Victoria Ramirez)
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 28 of 32
Sister City Commission:
Appointment: Continued to July 10, 2012 (term ending June 30, 2014)
(Unscheduled vacancy of Shannon Buhrmaster)
Appointment: Continued to July 10, 2012 (term ending June 30, 2015)
(Vacancy of Kyoko Smith)
[Re]Appointment: Russell LaHodny (term ending June 30, 2015)
(Incumbent, Russell LaHodny)
[Re]Appointment: Brian O'Neal (term ending June 30, 2015)
(Incumbent, Brian O'Neal)
[Re]Appointment: Anna Piercy (term ending June 30, 2015)
(Incumbent, Anna Piercy)
[Re]Appointment: Jennifer Vaughn (term ending June 30, 2015)
(Incumbent, Jennifer Vaughn)
CITY COUNCIL, ACTING AS SUCCESSOR AGENCY TO THE ANAHEIM REDEVELOPMENT
AGENCY
31. RESOLUTION NO. 2012 -068 A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM, AS THE SUCCESSOR AGENCY TO THE ANAHEIM
R100 REDEVELOPMENT AGENCY, authorizing the transfer to the Anaheim Housing
Authority of the housing responsibilities and all rights, powers, duties, and obligations
along with the housing assets of the former Anaheim Redevelopment Agency and any
amounts on deposit in the low and moderate income housing fund to the Anaheim
Housing Authority pursuant to Sections 34177 and 34181 of the California Health and
Safety Code.
Council Member Galloway moved to approve RESOLUTION NO. 2012 -068 OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM, AS THE SUCCESSOR AGENCY TO THE ANAHEIM
REDEVELOPMENT AGENCY, authorizing the transfer to the Anaheim Housing Authority of the
housing responsibilities and all rights, powers, duties, and obligations along with the housing
assets of the former Anaheim Redevelopment Agency and any amounts on deposit in the low
and moderate income housing fund to the Anaheim Housing Authority pursuant to Sections
34177 and 34181 of the California Health and Safety Code, seconded by Mayor Pro Tem Sidhu.
Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Eastman, Galloway, Murray and
Sidhu.) Noes — 0. Motion Carried.
PUBLIC HEARING:
32. At 7:53 P.M., the public hearing on the fiscal year 2012/13 budget, budget appropriations
limits for the City and its Community Facilities Districts, and changes in various fee
D106 schedules was continued.
A. RESOLUTION NO. 2012 -069 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting the fiscal year 2012/13 budget.
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 29 of 32
B. RESOLUTION NO. 2012 -070 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM, CALIFORNIA, adopting the annual appropriations limit for the
fiscal year 2012/13.
RESOLUTION NO. 2012 -071 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 2012/13.
RESOLUTION NO. 2012 -072 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 2012/13.
RESOLUTION NO. 2012 -073 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY ANAHEIM, CALIFORNIA, adopting the Community Facilities District No.
1989 -3 (The Summit) annual appropriations limit for the fiscal year 2012/13.
RESOLUTION NO. 2012 -074 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No.
06 -2 (Stadium Lofts) annual appropriations limit for the fiscal year 2012/13.
RESOLUTION NO. 2012 -075 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No.
08 -1 (Platinum Triangle) annual appropriations limit for the fiscal year 2012/13.
C. RESOLUTION NO. 2012 -076 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending the schedule of rates, fees and charges for rental of
space, parking and for certain labor, equipment and services at the Anaheim Convention
Center.
D. RESOLUTION NO. 2012 -077 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending and restating fee and rate schedules for planning,
zoning, and environmental petitions, applications, permits, approvals, appeals and
inspections.
E. RESOLUTION NO. 2012 -078 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting a revised schedule of sanitation fees and charges for
wastewater and solid waste and rescinding Resolution No. 2010 -098.
Acting Finance Director Debbie Moreno provided a brief recap of the proposed budget, stating it
was approximately $1.15 billion with nearly half in the enterprise funds representing: water and
electric, utilities, sanitation, convention, sports and entertainment venues and golf courses.
Twenty percent of the budget represented the city's capital improvement program with projects
such as the new community center and gymnasium at Ponderosa Park, the expansion of the
Convention Center with the Grand Plaza addition and the construction of ARTIC. The General
Fund, she announced, reflected 15 percent of the budget with the remaining percentage used
for various city programs.
ON -GOING SERVICE ENHANCEMENTS She stressed this year the general fund's positive
revenues led to a surplus of $2.5 million and on -going service enhancements at a cost of $1.5
million were being recommended along with one -time purchases or projects totaling nearly
$800,000. Those on -going enhancements reflected $935,000 for the Police Department to fund
four civilian investigators to assist with crime solving with an additional investment in the gang
reduction intervention program (GRIP) and Cops for Kids. She added this increased investment
would add two additional sworn personnel. On -going enhancements for the Fire Department
were recommended at a cost of $280,000 to provide additional resources for high fire hazard
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 30 of 32
areas and for Red Flag Day. Additional resources would be used to update equipment and
technology and to fund emergency preparedness projects. The on -going service enhancements
recommended for the Community Services Department was to increase Park Ranger patrols by
one hour each day patrolling from 1:00 P.M. to midnight. Additional resources were
recommended for coordination of the volunteer program to insure all the skills and talents the
community had to offer were being used. Lastly, on -going service enhancements of $170,000
were recommended for the Planning Department to implement recommendations of the
Regulatory Relief Task Force and provide planning concierge services to function as a liaison
for the customer on all project related issues with the goal for customers to see the concierge as
someone at city hall looking out for their projects.
ONE -TIME SERVICE ENHANCEMENTS In the area of one -time costs, staff recommended a
one -time addition to the Police Department of $240,000 to dual -fill eight sworn positions in order
to have a trained police officer available to fill a vacancy immediately. For increased flexibility,
staff recommended an additional $300,000 for the Fire Department to add a pump to existing
ladder truck and to outfit two reserve rigs with the same equipment carried on front line fire
apparatus. These sources would also be available for community needs and risk assessments.
Finally, she explained, for the Public Works Department, staff recommended an additional
$300,000 to refurbish Pearson Park pool, to replace raised and cracked sidewalks at parks and
community centers to improve accessibility and safety and to install new lighting throughout
Manzanita Park to improve security for residents.
Ms. Moreno pointed out, in addition to the budget, the annual appropriation limits for FY 2012/13
for the city and each of the five community facilities districts were ready for adoption as well.
She remarked the recent economic environment did not warrant fee increases, pointing out the
city had been reducing costs wherever possible which enabled fees to remain flat for the past
several years. Three departments had fee rate changes for the new fiscal year. Increased
rates for exhibit hall rentals, parking, personnel, technical services and facilities equipment were
proposed by the Convention, Sports and Entertainment Department in an effort to develop fair
and equitable charges consistent with other comparable facilities. The Planning Department
changes reflected recommendations of the Mayor's Regulatory Relief Task Force with many
fees being proposed to change from hourly to flat fees in order to provide customers with
greater certainty with regards to the cost of obtaining a required permit. The Home Occupation
permit fee was proposed to be eliminated entirely to help entrepreneurs who wish to start a
home business in Anaheim. Public Works was proposing a fee for minipackers which was
previously charged by Republic Waste Services and two enhanced services were being
proposed to provide additional sizes of trash cans for Anaheim residents and businesses.
Mayor Tait opened the public hearing for comments.
William Fitzgerald, Anaheim Home, offered his opinions on the budget and politics.
With no other comments offered, Mayor Tait closed the public hearing.
Council Member Murray thanked staff for a budget that looked toward building back services,
particularly in the opening of the Ponderosa Library, graffiti abatement, and enhanced services
for police and fire. She discussed the need for more flexibility in the hiring of council aides at a
higher policy level. She inquired if all council aide budgets were equal, would there be a
savings to the city with Mr. Wingenroth responding, each of the council members were allotted
$60,000 for part-time assistance with the Mayor apportioned $100,000 for that purpose. Council
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 31 of 32
Member Murray moved to decrease the Mayor's personnel budget by $40,000 and allocate a
maximum of $60,000 for each member of the City Council for personnel appropriations,
seconded by Council Member Eastman. Roll Call Vote: Ayes — 3: (Mayor Pro Tern Sidhu and
Council Members: Eastman and Murray.) Noes — 2: (Mayor Tait and Council Member
Galloway. Motion Carried.
Council Member Murray then moved to transfer $40,000 from the City Council budget to the
Ponderosa Library computer training program, seconded by Council Member Eastman. Roll
Call Vote: Ayes — 4: (Mayor Pro Tern Sidhu and Council Members: Eastman, Galloway, and
Murray. Noes — 1: Mayor Tait. Motion Approved.
Mayor Tait moved to approve the following 10 resolutions, seconded by Mayor Pro Tern Sidhu.
Mayor Tait also indicated he would declare a conflict of interest on Community Facilities District
No. 1989 -2 (The Highlands) annual appropriations limit for the fiscal year 2012/13 as he resided
in that district and that the vote would reflect his abstention. Roll Call Vote: Ayes — 5: (Mayor
Tait and Council Members: Eastman, Galloway, Murray and Sidhu.) Noes — 0. Motion Carried.
Council Member Eastman remarked that if resources continued to improve this year and more
revenues became available, she would be open to supporting police and fire at a higher level,
seconded by Council Member Murray.
A. RESOLUTION NO. 2012 -069 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
adopting the fiscal year 2012/13 budget;
B. RESOLUTION NO. 2012 -070 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM,
CALIFORNIA, adopting the annual appropriations limit for the fiscal year 2012/13;
C. RESOLUTION NO. 2012 -071 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 2012/13;
RESOLUTION NO. 2012 -072 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 2012/13
Mayor Tait indicated he lived in the Highlands District and would record an abstention
on this item. Roll Call Vote: Ayes — 4: (Mayor Pro Tem Sidhu and Council Members:
Eastman, Galloway, and Murray.) Noes — 0. Abstain — 9: (Mayor Tait). Motion
approved.
RESOLUTION NO. 2012 -073 OF THE CITY COUNCIL OF THE CITY ANAHEIM,
CALIFORNIA, adopting the Community Facilities District No. 1989 -3 (The Summit)
annual appropriations limit for the fiscal year 2012/13;
RESOLUTION NO 2012 -074 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM,
CALIFORNIA, adopting the Community Facilities District No. 06 -2 (Stadium Lofts)
annual appropriations limit for the fiscal year 2012/13;
RESOLUTION NO. 2012 -075 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM,
CALIFORNIA, adopting the Community Facilities District No. 08 -1 (Platinum Triangle)
annual appropriations limit for the fiscal year 2012/13;
D. RESOLUTION NO. 2012 -076 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
amending the schedule of rates, fees and charges for rental of space, parking and for
certain labor, equipment and services at the Anaheim Convention Center;
Council Meeting Minutes held on June 19, 2012 (special meeting, regular adjourned meeting, and regular meeting)
Page 32 of 32
RESOLUTION NO. 2012 -07 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
amending and restating fee and rate schedules for planning, zoning, and environmental
petitions, applications, permits, approvals, appeals and inspections; and
E. RESOLUTION NO. 2012 -078 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
adopting a revised schedule of sanitation fees and charges for wastewater and solid
waste and rescinding Resolution No. 2010- 098.the fiscal year 2012/13 budget, budget
appropriations limits for the City and its Community Facilities Districts, changes in
various fee schedules, and the agreed upon service enhancements
Council Communications:
Council Member Eastman requested a presentation from the city of Riverside consultant
regarding their regional signage and public art policy for the Santa Ana River trail.
Mayor Pro Tem Sidhu reported on the success of the Anaheim /Orange County Job Fair and
thanked Council and staff for their support for this record breaking event. He indicated more
than 200 employers had participated offering 2,600 jobs with more than 7,000 job seekers. He
announced the `Thanks to our Troops' 4 th of July Celebration and wished everyone a great 4 th of
July.
Council Member Galloway recognized City employee, Don Calkins, Assistant General Manager
Water Services, Public Utilities.
Council Member Murray announced the World Refugee Day event to be held at the Pearson
Park Amphitheatre on June 20th to raise awareness regarding available refugee programs and
to honor the chair of Access California, Nahla Kayali. She reported on Metropolitan Water
District's 10 solar boat competition offered to high schools with a seven month program on
building, racing, equipping a 16 foot single seat canoe powered only by the sun. Canyon High
School won the competition for the 7 th year in a row. Council Member Murray also highlighted
the success and contributions of Jim Leonard, a long -time resident and active member of the
community who was involved in the retired senior volunteer patrol, CERT and the Resort
ambassador program. She asked that this meeting be adjourned in his memory.
Mayor Tait invited the community to attend the 4 th of July celebration in support of the 13 MEU
and thanked staff for their efforts on a balanced budget that included needed service
enhancements while adding to reserves.
Adjournment:
At 8:43 P.M., Mayor Tait adjourned the meeting in memory of Jim Leonard to July 10, 2012 at
the Brookhurst Community Center, 2271 W. Crescent Avenue, Anaheim (4:00 P.M. closed
session; 5:00 P.M. regular meeting session).
R96p'Ktfully submitted, n
Linda N. Andal, CIVIC
City Clerk