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2002/01/12 ANAHEIM, CALIFORNIA - CITY COUNCIL MEETING ADJOURNED REGULAR MEETING OF JANUARY 8, 2002 HELD SATURDAY, JANUARY 12, 2002 The City Council of the City of Anaheim met in adjourned regular session. PRESENT: Mayor Tom Daly, Council Members: Frank Feldhaus, Lucille Kring and Shirley McCracken. ABSENT: Council Member Tait. STAFF PRESENT: City Manager David Morgan, Assistant City Manager Tom Wood, City Clerk Sheryll Schroeder, Finance Director William Sweeney, Budget Manager Jeff Stone and Senior Management Analyst Edina Goode. A copy of the agenda for the adjourned regular meeting of the Anaheim City Council was posted on January 4, 2002 at the City Hall inside and outside bulletin boards. Adjourned notices were posted prior to the January 12, 2002, adjourned regular meeting. Mayor Pro Tem Feldhaus called the adjourned regular meeting to order at 9:00 A.M. in the Gordon Hoyt Conference Center, Second Floor, 201 South Anaheim Boulevard, Anaheim, California, for the purpose of a Mid-year Budget Review Workshop. 106 City Manager Morgan introduced Finance Director, William Sweeney, who presented a power point slide presentation. Hard copies of the presentation were submitted in binders entitled "Budget Workshop, January 12, 2002", available in the City Clerk's Office for review. Finance Director, William Sweeney, began his presentation by speaking about the state of the economy at the national, state and local levels. He said it had been determined that the economy was in a recession induced by a decrease in business spending, not the consumer, according to the experts. The consumer was still spending which was a key to local revenue in terms of sales and other taxes, he said, and on a national level that was what had triggered the recession. Inflation was under control and PPI was released on January 11, 2002, and was down .7 with the core down .1. He suspected that there was very tame inflation and that most economists saw recovery beginning in the second quarter of 2002. Mr. Sweeney concurred and added that the economy was already starting to come out of the recession. Director Sweeney said that in Southern California, studies showed the region's economy was strong, relative to the national economy at the time of the attacks on the World Trade Center. Payroll employment was projected to grow by 1.1 percent in 2002 compared to 1.4 percent in 2001 and the unemployment rate was projected to increase to 5.0 percent in 2001 and 5.8 percent in 2002. He added that taxable sales were projected to grow in Southern California by 4.0 percent in 2002 considering that unemployment was rising and compared to 6.2 percent in 2001. Director Sweeney said that Orange County was projected to narrowly miss the recession, that everything was going to start slowing down and the City needed to keep an eye on it. Growth was still forthcoming at a moderate level, he said. In terms of the local revenue stream, he said, transient occupancy was the principal impact to the City of the September 11 th incidents. There was a sharp drop-off in September and October and the City experienced a recovery in November. Mr. Sweeney said that he was encouraged ....- ANAHEIM CITY COUNCIL MEETING MINUTES JAN UARY 12, 2002 PAGE 2 by the results he had seen and that the City would come out of this in a matter of time. He said the City had the same strong product it had one year ago and it was a matter of how long it would take to recover. Council Member McCracken mentioned that Mr. Sweeney had said construction was down and that some major construction projects could be seen in the City. She said that the City had put out a $35 million bond on housing and Council was seeing large tracts of homes in south Orange County and a number of in-fill projects in Anaheim. She asked if housing construction would help the City pull out of a recession rather than some of the large projects and noted that housing was needed. Mr. Sweeney responded that he believed construction would continue to move forward and that Council would not see any sort of a stand still or comparison to the industrial, commercial side. He said he could not provide any hard facts on the City's housing situation and that he suspected the City would obtain development on a moderate scale. In response to Council Member Kring, Director Sweeney spoke about general tourism and it was estimated based on the hard data seen. He said that it was important to keep in mind that the September 11 th incident had an impact on the City economy since Anaheim was a tourism City and had a heavy reliance on transient tax. It was not an overwhelming reliance on the tax, he said, and the City had a diverse community and revenue swing and sales taxes would move away from the transient taxes. He said that the economy was contracting in the City prior to September 11th and there was some softness, but nothing alarming. It was not enough to throw the budget out of kilter, he added. The economic slowdown was expected to affect sales tax receipts and the base was expected to increase modestly. Property taxes and vehicle license fees continued to perform better than budget and there were off-sets, he said. The current gross shortfall was estimated at $4.9 million, which had been $9.2 million down to $5.7 million and down to $4.9 million, he said. The numbers were reviewed weekly instead of every month, he added, and would improve by the time Council received the preliminary budget in May. In response to Council Member McCracken, Director Sweeney said that the cause of the projected shortfall was because of a revenue loss in the transient tax area and a small amount of revenue loss in sales taxes compared to what was budgeted. He said that every year the amount was up prior to the previous year and no one could have predicted what happened on September 11, 2001. He said that the sales tax estimates had increased, vehicle license fees were up, property taxes were up 1.3 percent and sales and use taxes were marginally less than one-percent lower. Transient tax was at twenty percent lower than current budget, he said, no change in business license and motor vehicle license fees were up by 8.4 percent. He noted that the estimated short fall would be $2.1 million after reducing expenses proposed to Council. He explained that a $4.9 million short fall was less than three percent when dealing with a general fund that was almost $180 million and this was not a massive budget problem. He said that he suspected that there would be an improvement over the next six months which would minimize the $2 million short fall. September 11, 2001 had no impact on property taxes, said Director Sweeney. He noted that the $21.4 million estimated for 2002 was a function of property turnover with higher property values and new development. The recent gains were due to the Disney expansion, Downtown Disney and various hotels going up. The ERAF State shift of money in the early 1990's shifted monies away from local government and Mr. Sweeney explained that the Governor had not indicated any shifting of revenues from local government and he hoped it would not happen. If it did happen later on, he said it would impact virtually every city in the State of California. ........ ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 3 Director Sweeney explained that the revenues were distributed to City, County, other County sources such as water, flood control, vector control, sanitation and to the local school districts. He explained that with ERAF, when property values went up, the percentage shifted would stay the same and the amount lessened over time. In the last two years, he said that the City had a one-time ERAF reimbursement from the State and then the Governor stopped doing that. It was the State's way of re-paying local government for part of the shift, he said, and this year, it would cost the City nearly $5 million in un-restricted monies. The City had received supplemental law enforcement grants over the years and discretionary money was taken away and replaced with money that had strings. Mr. Sweeney gave a history of the transient occupancy taxes and said that $58.1 million in 2001 was a phenomenal year given the fact that only portions of the new Resort were open for part of that fiscal year. He noted that the hotel opened in January and the theme park opened in March and he believed that the $58.1 million was principally driven by the Convention Center expansion which also opened in the January time frame. The current year budget was $70.7 million, he said, which made certain assumptions relative to the gross sales associated with the Convention Center, the new theme park, the new hotels, room rates and occupancy. A twenty percent reduction of that number was $56.6 million and he said that he believed that there may be some choppiness in the second half of the fiscal year and would take a period of time to fully recover from the affects of September 11th. He estimated that it would take eighteen months to get back to where the City thought the City was going to be and the key, he said, was that the city was going to get back. He said that he believed there was not a fundamental shift in the way people recreate or have meetings or conferences. The City was seeing smaller attendance than originally projected and he said he believed that over a period of time the attendance would come back. The next 90-days before the Council was offered the preliminary budget for next fiscal year would be monitored to see whether it was too conservative, he said. He did not anticipate that this would go down and anticipated that there was a possibility that it would be adjusted upward. Council Member McCracken asked if Director Sweeney had estimated the budget to even match this past year's. He responded that it was slightly less than the twenty-percent level and he acknowledged that this was a conservative number, and the second half of the last fiscal year was extraordinarily strong. Council Member Feldhaus asked if additional rooms were added in this last fiscal year and Director Sweeney said that 2,000 rooms were added. Council Member Feldhaus noted that September 11 th probably inhibited the rooms from being occupied and Director Sweeney said that it did and the occupancy rate had dropped and the budget projection had been done prior to September 11th. Director Sweeney noted that Finance did not want to give Council an overly optimistic forecast and that they tried to be accurate. He said that with regard to September 11th, it was important to keep in mind that there was growth coming out. October 2001 was not a strong month and November 2001 was a very strong month and with three major conventions. He suspected that the trend would also be picking up and from a financial standpoint, the first half of 2001 was great and it was a problem that the second half would be based on last year. Director Sweeney commented on the Disney transaction and the bonds that were issued for the Resort. He said to the extent that the gross sales on the properties diminished, the transient, sales and property taxes, the payments to the trustees diminished and were reduced proportionately. He said that there was no way that the general fund could be adversely impacted and the general fund base was guaranteed every year escalated by Consumer Price "- ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 4 Index regardless of where the economy went. He said that Finance had hoped that the bonds would be paid off early and the more that was transferred out, the better off the City would be. With regard to sales tax, Finance Director Sweeney noted that the City had a new auto dealership and Lowe's warehouse which would generate significant sales tax revenue. He said that the City had slightly less sales tax because of the increment and that the City was right on in terms of the general fund. He explained what happened after September 11th and said that there had been a $9.2 million shortfall and then automobile dealers offered interest free financing; more automobiles were sold and the City received the sales tax. He noted that certain categories of retailers were doing well such as Wal-Mart and Frys Electronics and he said that the City would probably experience growth even in a lengthening recession and it was estimated that the economy would turn around in the second quarter of 2002. He explained that in the recent quarter ending September 30, 2001, sales tax was up well over ten percent. Mayor Daly asked Finance to provide Council comparative numbers of other cities on a gross and per capita basis. Mayor Daly asked if the information was readily available and if the growth trends were added to it and Director Sweeney said that Finance would have to produce it. Council Member McCracken noted that the City was not dependent on one sector of the economy. Director Sweeney noted that there were some cities that heavily relied on retail sales and he noted that Costa Mesa was one of those cities. Director Sweeney stated that there was no change to business license or proposal to modify the fee structure. He explained and presented an overview of some of the higher major sources of revenue and said that motor vehicle license fees had been a surprising revenue source. The State had estimated that fees generated from motor vehicle licenses would be $18.1 million. He said that it was a substantial amount and the Governor had not proposed taking any backfill money. Council Member McCracken noted that if some of the smaller cities had that money taken away from them, they would have to dis-incorporate and go back to being County. So much of the smaller cities general budget and operating expenses were dependent on vehicle license fees. Director Sweeney said that the vehicle license fees were a critical source of revenue and something that the City could not afford to loose. Interest earnings were lowered, said Director Sweeney, and because of lowered interest rates transfers were down 28.6 percent and was directly related to the Resort debt service payment. He said when the gross transient occupancy dropped, the general fund dropped accordingly. He said that the utility four percent transfer, approximately $1.2 million, was projected to be ten percent higher than budget, which was a function of higher gross sales last fiscal year and helped to reduce the short fall in the current fiscal period. LPMR was changing down to 22.4 percent lower and once again, he said, when the transient occupancy dropped, all obligations on the bonds dropped. All bonds would be paid, he said, and Finance projected that enough would be transferred to make the bond debt service payments all the way out. Council Member Feldhaus asked if there was any way for pre-payment on the bonds and Director Sweeney said that what the bond documents had provided for was when the revenues were above the current year principal and interest, bonds were redeemed or the debt was paid down. Prior to September 11th, Finance was looking at paying down the bonds after 310r 32 . ,.. .....-.. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 5 years even though it was a 40-year debt service, he said. The City was on track to pay the bonds off early and now the City was on track to pay them off pursuant to the schedule. Finance recommended reducing expenditures to reduce the shortfall problem, said Director Sweeney. The City Manager had issued instructions to all general funded departments that they were expected to reduce the budget by two percent, he said, and that would generate approximately $2.8 million in savings. The fixed purchases or capital was not cut, he added, and more could be saved in labor costs but with the Police Department and security issues forthcoming, not as much could be saved as could typically be saved. In response to Council Member Kring, City Manager Morgan stated that the Police Department would come in within their budget and they would not exceed the appropriation that Council had given them last July. Director Sweeney said that the Police Department and the Fire Department budget was more fixed. He noted that Police and Fire were almost two-thirds of the net discretionary draw of the general fund. The impact on local government of vehicle license fees was that it was not stretching and would impact public safety and Director Sweeney said it was very important that the City express to the State the impact on essential services. Director Sweeney said that transient occupancy and sales taxes were expected to be below budget and other revenues were up. Departments would manage the expenditures by a two percent reduction and the general fund reserve had been reduced by approximately $2.1 million which left a balance of almost $23 million or thirteen percent of current general fund expenses. He explained that there was more in reserves now than the City's target had been and that this was a very strong City. City Manager Morgan noted that staff was not recommending any deferral of the community capital projects that Council had authorized at the beginning of the year and all of those projects were on line and moving forward. Council Member Kring said that the City should request about $3 million from the County for Convention Center infrastructure and traffic congestion instead of the $750,000 that they currently gave the City and she added that it would off-set the $4.9 million. City Manager Morgan agreed and said that some work had been done in the past with some success and the City should further pursue it. He noted that he had a meeting scheduled with Charles Ahlers and Glen Hale of the Visitors and Convention Bureau next week and would be discussing the opportunities with them. Director Sweeney said that the budget presented to Council in May would be balanced and that Finance would not be recommending any draw from reserves. All of the reserves going out for five years would be in excess of the Council's ten percent target. He said that there was no possibility of going below the ten percent. He noted that a few weeks before September 11th, Finance had talked about appropriating from the fund balance. He said he believed that on a routine basis the fund balance did not need to be that high. He said that saving the ten percent was fine and Council, on rare occasions, had appropriated acquisitions for various types of park lands from the fund balance. He said he thought that the fund balance needed to be re- examined once the City was through this difficult period and the City Manager would be looking at this over the next several months. Mayor Daly asked if the City was seeing Moody's and Standard & Poor being harder on municipalities than around the country and Finance Director Sweeney said that he had not seen - ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 6 a trend. Mayor Daly said that at the Orange County Transit Authority, the board members were directly involved in communicating with the financial community and OCT A had fared well. He asked Director Sweeney to let the Council know if there was anything that could be done and Director Sweeney said that Finance was not planning on a full presentation and that it would be helpful to have an elected official along. City Manager Morgan presented an outline to the Council of some of the upcoming challenges and issues. He said that there were five basic areas: vision, financial strength, neighborhood enhancements, service excellence and delivering the basics. He explained that on January 15, 2002, Council would have a workshop on the general plan update and that there had been five or six community meetings. Manager Morgan said it was timely to reach out to the community, listen to Council and provide a plan of what the City would look like far out into the future. The plan would address opportunity sites, what could be done with those sites and how to work with the private sector to develop them, he said. He spoke about the future of redevelopment areas and asked Council if these should be changed, expanded or new ones added. Housing Development was a huge issue for the City and he said that the City needed to come to terms with some of the issues in that category in the next six months. He said that there was a need to confirm the vision for west Anaheim and implement the process. There should be plans in place to protect neighborhood integrity throughout the City and he noted that through the general plan process the City needed to maximize open space and recreational opportunities throughout the City. The vision for the downtown area needed to be completed and he mentioned discussions of the new central library. He said that he would work with Council to finalize the vision and make the downtown area a place where people would want to come and spend time. City Manager Morgan said that with regard to Mountain Park Development, the City would be hearing from the Irvine Company soon about their plans and in 2002, the City would work with them to reconsider what that development on the eastern border looked like. The Anaheim Resort and surrounding areas were on-going projects, he said, and there were continued discussions of projects such as Pointe* Anaheim, the Third Gate and other issues. He asked to work with Council to finalize the visions in those areas as well as in the Stadium area. He pointed out to Council that the 380,000 square foot Trammel Crow office project was in plan check and they were looking to move forward with the first two buildings of the three in the next year. Mayor Daly asked City Manager Morgan if there were tenants for the project and he said that he would provide the information to Council and that the projected ground-breaking for the project was in the summer. Council Member Feldhaus said that most of the vision was directed towards downtown and west Anaheim and he noted that there were needs in Anaheim hills such as soccer parks and skateboard parks, hopefully, he said, where Dream Street was abandoned. City Manager Morgan said that the general plan would look at the entire City and would not just be downtown and west Anaheim. Council Member McCracken noted that some parts of that community were forty years old and she said that there were a lot of young people as well a senior citizens. She said she was concerned about transportation for senior citizens and she asked to look at some of the transportation projects being offered by the Orange County Transit Authority. She asked to look at the needs of all age levels. City Manager Morgan said that the need for a five-year financial plan had been identified. He said that there had been a five-year plan for years and he said that he would be working with ,...-- ....... ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 7 Finance Director Sweeney to take the plan to a higher level. When the Council made decisions on expenditures or revenue there would be a real-time model that would indicate the implications of each of the decisions, he said. Implementing a five-year capital community improvement plan would indicate that the City's financial strength depended upon the City being a quality community, he said, and staff needed to implement the ambitious community improvement that Council had outlined. He added that staff needed to do a better job to keep the project on schedule. Projects needed to be done in a way that they would not disrupt or impact the neighborhoods and the streets as much as possible. City Manager Morgan said that Council would deal with issues and items that encourage business through prudent hotel development in the near future. The Canyon area identity-marking program had been discussed in the past, he said, and it would be ready to roll out in the next year. City Manager Morgan said that the City's economic development effort had been generic and reactive and whether it was a restaurant row or corporate headquarter, it would be more targeted as to what the City would want and a strategy would be prepared on how to get there. He said that staff was working with Council to be more precise about what the goals were. He spoke about business retention and said that it had to do with making sure that the people already in the City were taken care of with business-friendly City Hall and he noted that the City's utility was an opportunity for that. The City was 28 percent under Edison for residential customers, on average, and in the past, he said, it was a closer kind of rate and the City was 28 percent under for large commercial operations. On small commercial operations, the City was thirteen percent lower, he said, and it was a way to retain businesses and attract them. Council Member Kring asked if construction crews could work 24-hours at a time so the project would be completed faster and she asked if it would be a money saving process. City Manager Morgan said that depending on the project, those options existed and a premium was paid for that so there was a trade off. Council Member McCracken said that the City should let people know what the project was about and she said that people would call to say that a construction crew was tearing up the street again. She said she believed that a sign should have gone up saying that the City was repairing the sewers today and the citizens would be more accepting and less frustrated. Mayor Daly added that accurate, precise and readable signage regarding the projects went a long way and he asked to consider sending out fliers on projects. He said it was all right to tell the citizens that the exact date of completion was unknown and the flier could contain the approximate completion time, exactly what the work and who the contractor was. City Manager Morgan said that staff would go through all of the projects and if directed, would follow up and provide detail to Council Members. City Manager Morgan spoke about making the most of the City's assets regarding Edison Field, Arrowhead Pond, Convention Center and utilities. He said that in the next six to twelve months he would work with Council to look at each of the assets to be sure that they were being managed and operated in a way that most benefited the community. Council Member McCracken said that in the agreement with the Arrowhead Pond there could be so many community events as part of that contract. Manager Morgan responded that there was. She said that the community had not taken advantage of having a big fundraiser at that facility and that it would be part of making the most of the City's assets. City Manager Morgan said that those kinds of ideas should be developed on each of the City's assets. He said that the City had privatized 110 functions and in the next year, he would bring ,.'.......... ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 8 to Council ideas on how to formalize an approach to privatize on a regular basis, including some of the high priority areas Council would see in the future. Information services and golf course maintenance had most recently been privatized and were working well for the City. He noted that the City of Phoenix was known as being good at privatization and eighty percent of their savings had come from out-sourcing their refuse collection which the City of Anaheim had already been doing. City Manager Morgan noted the Council had an ambitious plan for neighborhood enhancements and included the following: West Anaheim Police Station, West Anaheim Youth Center, Anaheim Hills Golf Clubhouse, Main Library Renovation/New Central Library, Brookhurst Community Center Expansion, Haskett Library Expansion, East Anaheim Branch Library Design, Convention Center Improvements, improved school facilities and enhanced freeway corridors. Mr. Morgan said that staff was in the process of finalizing the conceptual plans for the West Anaheim Police Station and Youth Center and an architect would be brought to Council in the next few months. The architectural plans for the Anaheim Hills Golf Clubhouse would be completed in February, he added. Council Member Kring asked if the money would be available to move forward with the construction and City Manager Morgan said that he would be working with Council and that it was a timing issue. The project had not been delayed at all, he said, and the plans were being finalized and would be brought back to Council. City Manager Morgan gave an update on the main library renovation and new central library. He said at the existing central library, staff was able to relocate some of the items stored in the basement. They had taken some of the staff functions on the second or third floor and moved them down to the basement which created an additional 9,000 square feet on the second floor for public space. Staff had three different architects and wanted to narrow it down to one or two, he said, and involve the Council in the process of the new central library which would happen over the next six months. Mayor Daly asked about staff's thinking on private donations and partnerships and City Manager Morgan said that the library was being planned as an 80,000 square foot structure. He said that staff depended on finances and the City would have the first 60,000 feet with the ability to grow into the additional 20,000 square feet. Mayor Daly mentioned that there might be parts of the library that lent itself to private donations such as maybe the children's wing or some of the amenities. Council Member McCracken said that maybe those with private donations or that were sponsored could be named. She said that there were a number of entities in the City that had been around for a long time and she said that the City needed to ask if those families would like to name something. Council Member Kring asked if there was any money from the Gates Foundation for the computer rooms and City Manager Morgan said that the City had received money from the Gates Foundation and he said he would look into it. Conceptual plans for the expansion of Brookhurst Community Center would come forward in March, said the City Manager. Bid proposals for a skate-board park would be coming in February or March, he said. Haskett Library expansion was related to Maxwell Park and master planning was underway, he said. There were plans to proceed on planning for the East "",............ ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 9 Anaheim Branch Library design. He said that Convention Center improvements that were immediate were carpeting, seating, roof, HVAC and asbestos abatement for the Arena. He had hoped to show Council that some of the improvements would have a direct impact on revenue that would other wise not occur. City Manager Morgan said that there was a bond issue out for improved school facilities and whether it passed or not there were improvements that were scheduled and the City would be working with the schools. He mentioned that he was working with the local district to possibly have an Oxford campus downtown and staff was working with private schools in the City. He noted that there had been a meeting with the Orange Unified School District and there was a possibility of contracting with them to do some of the maintenance of their facilities and to expand the joint use of the facilities. He noted that the same meeting should be held with the Anaheim Districts. City Manager Morgan said that the landscape overlay had taken place on the 1-5 Freeway and there were bond proceed dollars to support that. He said that other freeway corridors that needed attention were the 91 Freeway from the western border to the 57 Freeway and if Council directed, staff would work on options in terms of beautification of those corridors. Ross Park bid in February, he said, Washington Park grand opening would be in February, corridor beautification on Lincoln Avenue and more recommendations in that category. He noted that the Raymond Basin landscaping was underway and would be completed in 60-days. Bids were adopted by Council on the 138-acre Deer Canyon Park, he said, and trail systems would be installed in the nature preserve park, as well as restrooms and a parking lot. Some property acquisition had been made at La Palma expansion and staff would be coming back to Council with recommendations and Walnut Grove Park opened approximately two months ago. Council Member Kring noted that there was a need in the City for dog parks and she asked if there was any money or land available. City Manager Morgan said that staff was looking at parcels and opportunities and would check as the budget was organized for the next year. City Manager Morgan offered statistics on infrastructure and on the deficiency of arterial highways over the last two years and said that it had gone from $57 million down to $36 million. He said that this was a result of the work done on the 1-5 Freeway and Resort area where there were major projects. Sanitary sewer deficiency went from $67 million down to $56 million; the storm drain deficiency had dropped from $126 million down to $91 million and Council had $2 million for curbs and gutters. He said that Council was looking to increase sports fields Citywide and staff was working to add Yorba Regional, La Palma, Magnolia, and lights for Anaheim Hills Elementary School. Mayor Daly spoke about GASB 34, which required the City to identify assets and the condition of those assets and he asked what the status was of the City's first report. Finance Director Sweeney said that the first major goal was for the fiscal year ending June of 2002 and he said that Council would receive the report document in November of 2002. The report would include the information on the capital infrastructure, said Director Sweeney, and the schedules would change on how the information would be presented. He added that Council would probably be more interested in the back-up information to that report which was the road and infrastructure information. He said that a separate report would be prepared so that the City could be compared to other cities and Finance was working with Public Works to make sure all the City streets were entered into the GIS system and to cost out the various infrastructure items. - ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 10 Council Member McCracken suggested looking at the parking agreement for the Freedman Forum and she said that there maybe an opportunity to hold cultural events there and an opportunity for some of the private enterprises to assist the City in implementing the cultural plan. City Manager explained service excellence and said that there was a new version of the City seal. He asked to work with Council on how to upgrade and coordinate City logos and communication documents since there were too many different versions. Public Information Office was inventorying all things done in the City to communicate and would bring Council ideas on how to restructure it, he said. He spoke about having a comprehensive interagency regional strategy that had to do with identifying issues with each agency that surrounded the City, such as other cities, the Orange County Transit Authority, Orange County Water District, Sanitation District, Air Quality Management District and every agency the City dealt with. He said he would be asking Council for their input and a strategy would be prepared for each one since it was local relationships that had an impact on the City. Mr. Morgan said that the City should work on service and making City Hall friendlier and he would be launching new efforts in this area. Council Member McCracken said she acknowledged that City employees had a lot of education and training on technical issues and she said that the Anaheim Way was to take a few minutes to assist the public. She asked that staff take care of situations before they get to Council. City Manager Morgan said that there was work to be done in fundamental areas such as controlling crime and providing public safety, electric and water utility and making sure that all neighborhoods were clean, safe and attractive. He noted that the recent Police Department crime report was an example and he said that it was a high priority of the Council. Council Member Kring asked that when the economy improved, the two-percent would not go back and City Manager Morgan agreed and said that as the economy recovers, those dollars would be in the community improvement fund. Council Member McCracken said she believed that the vision should be communicated to other entities and that the City should work on image and economic development since the City was an exciting place. She mentioned some of the improvements in the City and said that the Council would work with the Public Information Officer on some articles for the League magazine. Mayor Daly said that the City Manager's Office was working to focus the Anaheim Magazine and he said that the City needed to describe all that there was to offer. Mayor Daly encouraged the City Manager to bring strategies to Council for economic development and he mentioned that golf courses needed to be on the list. He spoke about the big shopping centers in the City and said that the owners of the centers needed to know about the City's vision for those properties. He said that the City Manager should be directly involved in the strategies for those properties. Council Member Kring spoke about targeted development and said that business was market driven and that businesses could not be placed in certain areas since the market would determine how successful they were and she asked that this be taken into account when the City was pursuing business opportunities. .- ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 12, 2002 PAGE 11 Mayor Daly said that private property owners and developers needed to know what the expectation of the City were and if their goals were agreeable, it would work and if they had a different aim, then the City should know that. Council Member Feldhaus said that the City would have to sell upscale restaurants in the downtown area and the ability to support the restaurants. With regard to a new image, he said, it would incorporate a new theme. He noted that the Anaheim Way was a new theme a long time ago and he said he believed that there was a need for family orientation. He said that the Chamber of Commerce had been given $75,000 to develop an economic plan called "Rediscover Anaheim". It was very well done and different merchants would give coupons and discounts and there was an Economic Development Committee and Small Business Committee to enhance commercial enterprises in the City. He said that he would like to see how well the program was working and he wanted to check into it and see if there was something that would help economically promote the City. It would take sales to promote the City and he asked Public Information to check into how much could be done to do the promotion. He mentioned that there could be a contest among employees or the Chamber to develop a new theme to get others to visit the City. He said that the Flying "A" pin was a promotional opportunity and said that the other City pin had too much of the City's history in it and was too busy. Council Member Kring said that there was a private group of people at the hotel that were working on that program to spend money to do advertising across the country or at least the western states. Council Member Feldhaus said that the bigger picture was to market the entire City and some of the amenities. He noted that there was a budget of $4.9 million for promotion through the Visitors and Convention Bureau and that there should be another way to obtain revenues for the promotion of the whole City. Mayor Daly noted that considering the national tragedy, the City was in strong financial shape and some of the plans proposed by the City Manager to be brought forward will make the City stronger. He added that the Resort Maintenance District looked clean and well-maintained and worked well and he asked to take this type of lesson and use it all over the City. Mayor Daly said it had been a constant challenge on the edges of the City next to Fullerton since there was illegal posting of signs, trash, litter and CalTrans had the responsibility for the 91 Freeway and that those were gateways to the City. He said that the area had come out well. Council Member Kring said that there were a lot of non-profit organizations and scouts that needed badges and she asked if they could be used to clean up the trash and litter in the parks and there should be a different group every week cleaning up. City Manager Morgan noted that the City had an adopt-a-park program and he said that there could be an adopt-an-intersection or corridor program. Adjournment: There being no further business to come before the City Council, Mayor Daly adjourned the meeting at 11 :00 A.M. "...-....-. ANAHEIM CITY COUNCIL MEETING MINUTES JAN UARY 12, 2002 PAGE 12 Respectfully submitted: Sheryll Schroeder, CMC/AAE City Clerk """'"......... ....-........,....