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06/02/2015ANAHEIM CITY COUNCIL REGULAR AJOURNED MEETING OF MAY 19, 2015 HELD ON JUNE 2, 2015 AND THE REGULAR MEETING OF JUNE 2, 2015 The regular adjourned meeting of May 19, 2015 was called to order at 2:05 P.M. on June 2, 2015 for consideration of the City of Anaheim Fiscal Year 2015116 Budget Hearing. The meeting notice, agenda and related materials were duly posted on May 29, 2015. Teleconference Notice: Pursuant to Government Code Section 54953, Subdivision (b), this meeting would include teleconference participation by Mayor Tait from: Millennium Hilton, 55 Church Street, New York, New York 1007 with the room number posted in the hotel lobby. This Notice and Agenda was posted at the teleconference location and any public comment on the agenda from this address would be allowed pursuant to Government Code Section 54954.3. City Clerk, Linda Andal, announced Mayor Tait was unable to participate in the teleconference workshop, due to a conflict, and therefore teleconferencing would not occur as noticed. For the record, she advised that Mayor Tait indicated he would review the proposed budget prior to the final budget hearing on June 19, 2015. PRESENT: Mayor Pro Tem Kring and Council Members: Jordan Brandman, Kris Murray and James Vanderbilt. ABSENT: Mayor Tait (from teleconference location). STAFF PRESENT: Interim City Manager Paul Emery, City Attorney Michael Houston and City Clerk Linda Andal. FISCAL YEAR 2015/16 BUDGET HEARING: Paul Emery, Interim City Manager, introduced the proposed FY 2015/16 Budget, pursuant to City Charter regulations adding that the document had been available to members of the public as of May 22, 2015. Finance Director, Debbie Moreno explained the budget hearing process, indicating she would provide an overview of the budget including key revenue sources and proposed service enhancements to be followed by Police and Fire & Rescue departmental presentations. On June 16th, the remaining departmental budgets would be considered along with the capital improvement plan, to be followed by a formal adoption of the FY 2015/16 City of Anaheim budget. She explained that this year a number of changes had been made to the proposed budget document; that is, the two column format was replaced with a single column, easier to read and more compatible with electronic formats. New sections had been added as well, the Annual Neighborhood Report and the Resort Financial Impact report with additional information related to the city's Long -Term Debt Obligations. The new Reader's Guide was also added to help readers understand what information could be found within the various sections of the budget document and, Anaheim At A Glance offered details on Anaheim statistics relating to city facilities, public safety, infrastructure, the local economy, and tourism. Economic Outlook: Ms. Moreno reported that after several years of slow GDP growth of about 2 percent, staff projected 2015 would see a 3 percent growth because of improved labor and housing markets with corresponding increased consumer spending that should continue into 2016. California's economy showed a stronger than expected 2014 which should continue City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 2 of 19 accelerating into 2015 and 2016 due to the strong labor market, improved real estate and with construction spending expected to increase. She reported the Orange County labor market reported its fourth consecutive year of positive job creation in 2014 and although the housing market slowed down, home prices were expected to rise by 8 percent in 2015 and 7.5 percent in 2015, slightly higher than prerecession peaks. Key Budget Assumptions: Ms. Moreno identified the key budget assumptions as follows: All operating budgets were balanced which meant recurring revenues were at least equal to recurring expenditures; the proposed base budget emphasized Council's priorities of public safety and neighborhood services and maintained existing service levels, including service enhancements adopted last year; and the budget was mindful of labor and benefit costs in the long term financial plan. Breakdown of Budget by Funds: Ms. Moreno remarked the total $1.7 billion budget reflected an increase of 2 percent from the current FY 2014/15 adopted budget as follows: • Enterprise Funds made up the largest portion, 49 percent of the total, including water, electric, sanitation, golf courses and the convention, sports & entertainment venues. • For FY 2015/16, the General Fund budget totaled $275.6 million, an increase of 4 percent over the current adopted budget. • Other General Purpose Funds were higher than adopted by 11 percent primarily due to the accelerated debt service for the Honda Center related to the Convention Center expansion and refunding of debt. • Special Revenue funds were higher by 8 percent due to increased housing development loans from the Housing Authority, Anaheim Tourism Improvement expenditures that were tied to the higher TOT and gas tax funded street improvement projects. • Capital projects were lower by 22 percent resulting from the completion of the ARTIC project. • Internal Service funds were also higher by 6 percent because of employee benefits and the seismic retrofit project at City Hall. • Fiduciary Funds were lower by 16 percent because of the completion of the Successor Agency projects and the winding down of the Anaheim Hills community facilities districts. Expenditures by Function: • Ms. Moreno indicated those same expenditures by function reflected Non -Operating expenditures of $518.1 million or 31 percent of the total expenditures and included the following: Capital Improvements, employee benefits, Resort and Fiduciary Debt Service, Insurance, UASI, and Fire JPA. • The remaining portions represented Operating Costs by function with the largest piece Providing the Necessities at $625.2 million or 38 percent of total, • Ensuring the Quality of Life at $266.3 million or 16% of total, • Keeping us Safe at $194.4 million or 12 percent of total, • Supporting Activities of $34.7 million or 2 percent of total, and • Administering Efficient Government at $183 million or 1 percent of the total fund budget. To put things into perspective, Ms. Moreno offered a detailed breakdown of expenditures by function as it related to the General Fund (GF) budget, as well as to the total city budget. Providing the Necessities included Public Utilities and Public Works (all the infrastructure that went towards a vibrant and thriving community). In this case, Providing the Necessities was six City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 3 of 19 percent of the General Fund budget while it comprised 54 percent of the total city budget, reflective of the fact this function was supported by restricted grants and user fees. In addition, $165.8 million of this budget would be earmarked for capital projects. Ensuring Quality of Life included Planning, Building, Community and Economic Development, Community Services as well as Conventions, Sports and Entertainment. Ensuring the Quality of Life made up 17 percent of the GF budget while it comprised a comparable 17 percent of the total city budget. She noted of the $290.2 million, $23.9 million would be used to fund capital projects. Ms. Moreno pointed out the capital budget for the Convention Center expansion was included in the Public Works budget. Administering Efficient Government included budget allocations for City Council, City Administration, City Attorney, City Clerk and the City Treasurer, and reflected 7 percent of the GF budget while it comprised only 1 percent of the total city budget. She noted this functional group was largely supported by the general fund and provided leadership to carry out policies, provide legal defense, advise financial investment of assets and supported vital recordkeeping functions of the city and reflected $18.3 million in the total city budget. The Supporting Activities Group included Finance and Human Resources, and was responsible for the acquisition, accounting and protection of city assets as well as hiring and developing quality personnel. Supporting Activities reflected 4 percent of the GF budget and 15 percent of the total city budget, however of that 15 percent, 13 percent was non -operational costs (mostly employee benefits and insurance costs managed through internal service funds and reflected in each department's fiduciary debt service. Long -Term Debt Obligations: Ms. Moreno pointed to a new enhancement to the budget book, the City's long-term debt obligations. This section listed each outstanding issue with the payment funding source, date issued, maturity date and interest rates at the time of issuance. The outstanding balance as of July 1 was also included, as well as the total amount due for each of the next five years. After that period, a debt service schedule was available for each issue by fiscal year through maturity. She added that in this section, other long-term obligations such as compensated absences, self-insurance, pensions and retiree medical costs could be found, as well as information related to plan assumptions and the estimated fiscal impacts over the next five fiscal years. General Fund Details: Ms. Moreno pointed out the proposed GF base budget before service enhancements totaled $275.6 million, an increase of 4 percent over the current adopted fiscal year, 17 percent of the city's total budget. On the revenue side, the big three revenue drivers generated more than 90 percent of net revenues after transfers to other funds. Those three items were Transient Occupancy Tax (TOT), Sales Tax, and Property Taxes. On the expenditure side, nearly 2/3 reflected public safety costs, another 14 percent on Ensuring Quality of Life and Providing the Necessities, with a little over 10 percent spent on Supporting Activities and Government Administration. For FY 2015/16, the proposed GF revenues totaled $286.2 million, a six percent increase over the current year projections due to the improving economy that was driving increases to TOT, sales tax, and property taxes. Transient Occupancy Tax: She added that TOT was up $7.8 million over the previous year through May, 2015 and was projected to reach $120.4 million at year end, an increase of 9 percent from the prior year. Sales and Use taxes were up 2 percent from budget year to date and expected to end slightly over budget, a 5 percent increase over last year. Property taxes City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 4 of 19 were also meeting expectations and were projected to reach $65.6 million, an increase of 5 percent from FY 2013/14 and in line with the budget. For 2014/15, she remarked, TOT revenues were projected to exceed prior year revenues by $10.3 million or 9 percent, and the adopted budget by 5 percent. For the proposed FY 2015/16, TOT was estimated to increase by $12.6 million from the current year projections. She added the addition of three new hotels in 2014 contributed to current year growth and the five year revenue forecast included another seven new hotels and 1,387 rooms over the next three years. Additional hotels were also in the works in various stages of development; however, Ms. Moreno indicated they were not included because of the uncertain timing. Other impacts included Disneyland as it celebrated its 60th anniversary with special events and fanfare, the collection of TOT on short-term vacation rentals beginning July of this year, and the introduction of the Convention Center expansion to further augment TOT revenues when it opened in 2017. The TOT projects in the five year plan were expected to grow 7-10 percent annually moderating to 3 percent in the final year. Sales Tax: Ms. Moreno indicated that for FY 2014/15, sales tax was projected to increase to 71.7 million, $3.1 million or 5 percent more than the previous year and less than one percent above the current year budget. For FY 2015/16, sales tax was expected to grow an additional $5.2 million or 8 percent from the FY 2014/15 estimates attributed to steady employment gains and expansion across all economic sectors. This included $4.2 million in one-time revenues expected from a timing shift related to the unwinding of the State's Triple Flip, the financing mechanism enacted in 2004. She explained this would mean the proposed increase for FY 2014/15 projection would be 2 percent and the average annual growth of sales tax revenues was estimated to be about 4 to 5 percent throughout the five year plan. Property Tax: These revenues were projected to slightly exceed the budget in FY 2014/15 and grow into year fiscal year 2015/16 as values continued to increase and reduced values from property assessments during the recession were recaptured. She noted property tax revenues were also being assisted by new hotel and housing developments in the city and for FY 2014/15, property tax revenue was projected to total $65.6 million, an increase of $2.9 million or 5 percent from the previous year and in line with the adopted budget. In FY 2015/16, property taxes were expected to increase to $68.9 million, $3.3 million or 4 percent higher than the current year projections. In the five year plan, she remarked, property tax was estimated to increase 3 to 4 percent per year moderating to 2 percent in Year 5. General Fund Expenditures: Ms. Moreno stated the proposed GF expenditures totaled $275.6 million, an increase of $10 million or 4 percent from FY 2014/15 adopted GF budget, up due to increased labor costs and modest inflationary factors for other operating expenditures. She noted the proposed labor budget reflected the transition to employees paying the full employee's share of retirement benefits as outlined in the Governors' Public Employees' Pension Reform Act. The budget also emphasized Council's core priorities of public safety and neighborhood services and maintained funding for on-going public safety and neighborhood support staffing adopted by the Council in FY 2014/15, including 10 new police officers, two new dispatchers, as well as additional staff in the Fire & Rescue, Planning and Building, and Community Services. She added the proposed budget also funded the operating costs for the new Miraloma Resource Center which opened this April. Proposed Service Enhancements: Ms. Moreno reported that in the proposed budget, revenues exceeded recurring expenses by $6.5 million and these funds would be available for programming in the FY 2015/16, per Council priorities and within the limits of the city's five year plan. There were opportunities for supplemental services in public safety, improvements to City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 5 of 19 community infrastructure and neighborhoods, and projects enhancing service levels and enriching programming available to residents. She added with revenues expected to grow steadily in the city's five year plan, staff was recommending that $6.2 million be available for Council's direction for operating enhancements of an ongoing nature. Additionally, one-time sales tax revenue was anticipated to be received in FY 2015/16 that would allow for an additional $4.2 million for one time projects only. Those additional services, she emphasized, were within financial constraints and would also allow the city budget to remain structurally balanced while investing more than $10 million in the community while maintaining reserve levels in the General Fund. She noted the five year plan also allowed for development of the remaining two years of the Council's 40 plus 4 initiative, to increase police staffing levels. Based on the five year plan, Ms. Moreno stated staff was recommending the following $6.2 million enhancements in public safety, street improvements and park/neighborhood enhancements of an on-going nature. For Public Safety: • Funding was proposed for the addition of 10 new police officers which represented the second year of Council's goal to add 40 new police officers over a four year period. • For Fire & Rescue, the addition of three fire fighters at Station 7, funding for a new hire training academy and the continuation of the community care response unit pilot program. • Funding was also included for the expansion of the public safety career pipeline with the ultimate goal of hiring local Anaheim graduates to the ranks of public safety personnel. For Street Improvements: • Funding was proposed for street improvements to address aging infrastructure and long overdue repairs to streets, signs, sidewalks, curbs and gutters, to enhance walkability, improve ride quality and safety for residential streets and to beautify neighborhoods. For Parks/Neighborhoods: The mobile after school program approved last year would be expanded from once a week in 10 neighborhoods, to twice a week in those same neighborhoods; and Daily after school recreation programs would be added in 10 parks. Components of these programs, she explained, would include the high demand for homework help, sports and fitness activities, recreational games, character development, and skill building activities. Staff was also recommending a one-time $4.2 million for projects/purchases to benefit parks and neighborhoods, street improvements and public safety. Community Services would continue refreshing parks, including adding pathway lights, repairing or replacing rubberized playground services and making needed turf renovations and irrigation improvements. Funding was also included to install air conditioning and heating in the Peralta Park building and to repair the damaged drainage at Olive Hills Park slope. Street improvements include funding for illuminated street name signs and various upgrades to streets, sidewalks, curbs and gutters throughout the city. In the area of public safety, one time enhancements included signal preemption, a new Type III Fire Engine for wildland events and funding for fire clearance at Pelanconi and Deer Canyon Parks. Ms. Moreno pointed out that if the ongoing service enhancements of $6.2 million were added to the base budget, it was projected that recurring revenues would be greater than recurring City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 6 of 19 expenditures for the five year period, which meant the budget was structurally balanced. Even after the $4.2 million one-time enhancement, she noted, there would still be a small contribution to the reserves in the proposed budget year. She reiterated that the one-time revenues in 2015/16 were related to the unwinding of the Triple Flip from year 2004 and that the anticipated revenue impacts from the Convention Center expansion were included in the five year plan beginning in FY 2017/18. Anaheim Resort Financial Impact Report: Another new section to the budget document, the Anaheim Resort Financial Impact report, was an effort by staff to explore and analyze the debt financial impact of the Resort. Ms. Moreno indicated in order to estimate revenues generated by the Resort, staff used prior year actual detail from resort businesses and applied the percent of each tax type to the City's FY 2015/16 Budget as follows: • Transient Occupancy Tax brought in $122.8 million, or 92 percent of the city's total TOT revenues, due to 79 percent of the city's hotel rooms being located within the Resort. • Ten percent of Anaheim businesses were located within the Resort, which translated into $13.8 million, or 18 percent of the city's total sales tax. • The Resort reflected four percent of Anaheim's geographic area which resulted in $10.2 million, or 15 percent of Anaheim's total property tax revenues. • Only one percent of Anaheim's total business licenses were issued to companies located in the Resort, but 14 percent of the city's business license fees were generated from the Resort. Ms. Moreno stated that more than $147 million annually flowed into the Resort from these taxes which was more than 50 percent of the total taxes of the GF. Other city expenditures, she noted, were not tracked by geographic locations, however staff was able to use relevant statistical data to estimate taxpayer supported costs originating in the Resort District. Over $80 million went out of the GF in support of the Anaheim Resort annually and about $65 million, or 80 percent of the total expenses related to debt service from the 1997 Anaheim Resort Improvements, the 2014 Convention Center expansion and other previous Resort projects. In addition, she mentioned, $12 million paid for public safety based on police and fire calls for service, (about 5 percent for police calls and 18 percent for Fire & Rescue). Another $2 million reflected general government and supporting services activities, with $900,000 related to economic development and promotions and $200,000 for infrastructure and civic upkeep. Net Impact of the Resort to the General Fund: In terms of net costs, Ms. Moreno reported the Anaheim Resort had a positive financial impact to the city, the $67.3 million generated by the Anaheim Resort after paying its share of its costs represented nearly one fourth of the City's GF budget and was available to provide core services to the city. Cost for Core Services by Neighborhood: Another new budget section provided costs for core services based on neighborhood council districts within the four established neighborhoods, West, Central, South and East. This analysis, Ms. Moreno explained, excluded the Resort as staff concluded the Resort paid for its costs and contributed resources to the rest of the city. Because each of the neighborhoods varied in populations and size characteristics, she indicated the tables in this section offered data by total dollar allocation per capita and per square mile. The results showed the general fund resources closely tracked with the population of each of the four neighborhoods and the per capita costs represented the cost in relation to the population count for each neighborhood; i.e., the highest per capita net cost was found in the central and south neighborhoods at $677 and the lowest in the east at $660. City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 7 of 19 POLICE DEPARTMENT BUDGET Ms. Moreno then introduced the Police Department budget announcing $119.3 million had been allocated which included service enhancements adopted in prior years such as 15 additional police officers, four civilian investigators and the expansion of the GRIP program. For FY 2015/16, staff was recommending service enhancements slightly under $2.3 million which would allow the addition of ten full-time police offices as well as expansion of the public safety career pipeline program. She noted the department employed 562 full-time employers, 374 sworn and 188 civilian. There were also 62.5 part-time full-time equivalent employees. Community Engagement: Police Chief Raul Quezada remarked the department's top priorities had not changed and continued to be community engagement, investment in youth services and gang suppression. Regarding community engagement, he stated the proposed additional officers would allow officers more time to connect and interact with Anaheim residents, visitors, educators, business owners and other stakeholders. He pointed out that over the past year, officers, employees and volunteers had facilitated over 200 community meetings, including Coffee with a Cop, Neighborhood Watch program, Traffic Education classes, district council meetings, business watch and the Chief's advisory board and neighborhood advisory council meetings. He indicated the homeless outreach team had worked with nonprofit organizations and the faith -based community to assist in relocating 328 individuals into supportive and/or permanent housing and this past fiscal year, the team continued to make progress interacting with the homeless population with the goal of getting them off the streets, out of the parks and into long-term supportive housing. He added this approach helped to make sure the parks were available for their intended use and that neighborhoods were less impacted by the homeless population. He emphasized the community policing teams had expanded 300 percent since 2009, and there were now 12 officers dedicated to solving chronic problems and improving the quality of life in challenged neighborhoods. Additionally, staff would continue to increase outreach efforts in neighborhoods with an additional Mobile PACE program that offered community members a chance to become familiar with the department's programs and processes. Chief Quezada reported the Orange County Family Justice Center served over 4,500 clients this past year and over 20,000 since its implementation in 2006 and offered a wrap-around service delivery model to create the best opportunity for positive results for victims and survivors of domestic violence, sexual assault, child abuse and elder abuse. The concept of creating a public safety pipeline at the middle school level was one of the initiatives that had overwhelming support. Beginning at Sycamore Jr. High Schools last fall, this program exposed Anaheim youth to careers in law enforcement and the fire service while emphasizing strong decision-making and good life choices at this critical age. With the goal of hiring locally to the ranks of police and fire, the intent was to expand this program to the high school level in the near future. The successful Jr. Cadet Program had continued to grow and would graduate one of its largest classes, 516 cadets on June 12th at the Convention Center. Another successful program, the Cops 4 Kids, emphasized hard work, character building, physical fitness and a fun learning environment. The Chief's goal was to expand the current youth programs to serve more kids throughout the city, including partnering with the Anaheim City School District to offer after-school homework assistance for children and families in need. This program would also include the creation of a junior explorer program for the middle school age group to complement the existing explorer program. GRIP Program: Chief Quezada reported gang crime still accounted for a large percent of violent crime in the city and for the past two years, the department had been able to deploy City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 8 of 19 resources towards suppression, investigation, intervention and prevention to directly impact the ability of gangs to operate and recruit new members. He added staff was committed to expanding the impact of the GRIP program as it focused on preventing at risk youths from becoming involved with gangs. There were currently 2,475 participants in this program representing a 173 percent increase from 2009. Working with the teachers, school administrators, and case managers, the Chief pointed out the department's safe school officers provided students with knowledge and the tools to realize and seek positive alternatives and role models making them better equipped and more confident to avoid gang lifestyle. This program also included a popular and effective girls club focusing on building self-esteem and confidence of at risk young women. He added that aggressive and prompt investigation of gang related crimes was a critical component of the department's overall approach and investigators augmented resources with those of the OC Probation department and two dedicated Deputy DA's to prosecute those who committed gang crimes in Anaheim. The goal was to eliminate the gangs that operated in Anaheim, use aggressive enforcement/ investigations to ensure residents were free of the fear and intimidation that gangs used to control neighborhoods. Traffic Safety: Chief Quezada explained traffic officers would continue to direct efforts to address traffic collision hot spots identified by the crime analysis unit. However, in an effort to reduce the number of collisions, the traffic bureau now committed significant time and resources toward education to promote traffic safety awareness at local schools. In the past year, he noted traffic personnel conducted over 30 presentations to over 10,000 students, parents and residents. Crimes Against Persons: The Chief reported that detectives were now assigned permanently to the Orange County Cold Case Homicide Task Force and with advancements in forensic technology and the leveraging of expertise and manpower, the task force would expand the department's capabilities in solving old homicides and other crimes. As the leading agency in the Orange County Human Trafficking Task Force, the department managed the investigation of sex trafficking and forced labor by working collaboratively with the OC Sheriff's Department, the DA's Office and the California Highway Patrol, along with other victim service providers. This task force, he explained, used a victim centered approach and since 2010, 378 individuals had been arrested and 119 victims rescued. He also reported in 2014, there was a reduction in both violent crime and property crimes from the previous year with an overall reduction of 15 percent in Part 1 crime. Response Times: Stating the protection of life and property was the number 1 responsibility of the department, Chief Quezada emphasized that added personnel for the department would allow for improved response times and greater availability of officers to handle other requests for service while still having time to interact and engage with the community, In 2014, the total call volumes managed by the communication center exceeded half a million, and resulted in 186,521 calls dispatched for calls for service. Other areas to note, the department became the first law enforcement agency in the county to equip its officers with body worn cameras, which would enhance investigative capabilities and result in improved service delivery and safety for officers. In addition, he remarked, the cameras spoke to the department's commitment to transparency and accountability and has proven invaluable when examining applications of force or investigating complaints of misconduct. He added that recently the Office of Independent Review completed a comprehensive review of officer involved shootings and one in -custody death over a nine year period; i.e., 2003 to 2012. City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 9 of 19 That review included 20 recommendations that were presented to the Public Safety Board this April and after a thorough and comprehensive examination of each recommendation, he stated the department issued its response, indicating that the majority of recommendations had already been implemented. The Chief ended the presentation stating the department looked forward to continuing efforts to form stronger relationships with the community and to focus efforts on the citywide strategic goals for challenged neighborhoods. Council Member Vanderbilt appreciated the traffic safety focus asking that in the future, could the department show whether or not traffic accidents decreased as a result of the traffic safety training taking place in the schools. FIRE AND RESCUE DEPARTMENT Ms. Moreno introduced the budget for Fire and Rescue, reporting $62.2 million had been allocated for this department which also included service enhancements adopted in prior years such as the conversion of two part-time safety inspectors to full-time positions and the implementation of a cadet program. There were 272 full-time employees, 205 sworn and 67 civilian positions. In addition there were 10.9 part-time full-time equivalent positions. She noted the service enhancement recommended for FY 2015/16 reflected $2.2 million and included the addition of three new firefighters, bringing the total sworn positions to 208. Fire Chief Randy Bruegman reported that over the last four to five years, there had been a continual increase in the number of calls received annually. In 2014, calls were 33,000+, 3,500 of those inside the city and another 3,000 outside the jurisdiction, part of the Orange County aid system. He added as was done in the past, the budget was drafted based upon the department's strategic planning effort. Those goals were presented to Council last February with the focus of remaining competitive to bring value to the organization beyond the 911 call and to evaluate and position the organization to offer the best possible delivery system to the residents, businesses and visitors. At that meeting, eight strategic recommendations were identified as critical to the organization and some of those recommendations were addressed in the proposed budget. To ensure a safe community, Chief Bruegman remarked that the department was evaluating the use of technology and two of his department's strategic recommendations revolved around that concept. The installation of vehicle preemption devices would save about 20 to 30 seconds on each response time, a significant impact when you consider there were over 30,000 calls for service a year. He thanked Council for their support having approved $100,000 in last year's budget to begin the process adding that this year $200,000 was proposed to allow the completion of up to 30 intersections in the coming year. For the upgrade of the 800 MHZ system, he noted the county system was over 25 years old and must be replaced and would take three to four years to complete. Funds for that effort were included in this budget along with an upgrade to the existing antiquated record keeping system. Service enhancements for the next year would include staffing apparatus and equipment including three new firefighters to place a fourth firefighter back on Engine 7, a recommendation made after evaluation of staffing changes made last year. The purchase of two engines was proposed and identified in the Public Works Department budget, at a cost of about $1.2 million as well as a request for a fifth Type III "wildland" engine for the east end of the city. In addition, City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 10 of 19 there was $180,000 earmarked for miscellaneous equipment for the two new engines and to purchase replacement self-contained breathing apparatus bottles. One of the strategic plan recommendations was to develop and implement a community risk reduction plan and was included in the budget for the next fiscal year. A fire safe demonstration house and fire safe demonstration garden was in the works for Station 19, where the turf had been removed to get ready for the construction. He pointed out the garden was paid for by donations from the community and West Coast Arborists. This community risk reduction effort would focus on vegetation management and in this year's budget, the Department would also tackle overgrown brush in Deer Canyon Park and Pelanconi Park, with the potential of using goats that had been successful in past vegetation management efforts. Another component of that risk reduction strategy was the smoke alarm installation program that would be launched at the Sunkist Mobile Home Park, in a few weeks; he added this component was being expanded through grant applications and with the assistance of Red Cross volunteers. This past year, Chief Bruegman remarked, the Affordable Health Care Act had an impact on many aspects of the business operation, not only in the city but in the community. Staff explored options as to how to provide service and move forward with the concept of a mobile community care response unit. This unit, he explained, was launched May 31St and was the first unit of its kind in the state of California. He added that Captain Fox and Nurse Practitioner Vicki Morrison had already made a positive impact on the community by diverting individuals that would have been taken to a hospital when it was not needed. He added he hoped to collect valid statistical data over the next three to six months to measure the impacts this program had on the community. He indicated there was $200,000 in this year's budget to continue the pilot program through the next fiscal year. Another strategic plan recommendation was to begin implementation of a capital improvement plan and through the department's strategic planning and standards of covers process, staff identified fire stations that should be relocated and companies that should be split up to maximize use of existing resources. He thanked the City Council for approving $2 million in the Convention Center improvement bond proceeds to fund the addition of one fire station and the relocation of the second, which would ultimately improve travel time for emergencies. He noted staff was in the process of locating a site, and the Public Utilities Board had approved the transfer of swapping a building at 4950 La Palma Avenue with Fire Station 5; those documents were underway and construction should begin in the new fiscal year. Regarding the recommendation for a multi-year staffing plan, Chief Bruegman remarked that on May 22nd, 19 firefighter paramedics came out of the recruit academy, one of the biggest academies in the last ten years. He anticipated having another recruit academy this time next year. In addition, several of the part-time personnel would be moving to full-time positions and two of the part-time positions would be eliminated to accomplish that change. He indicated that one of the original objectives from several years ago was the need to create a leadership academy to being to train and focus skill sets onto the next series of leaders. That secession plan was underway and the department had been working with Human Resources staff for the past 18 months to develop that leadership academy. He emphasized, together with the Police Department, Fire and Rescue was also vested in the public safety career pipeline, teaching characteristics for local youths to be successful in whatever path they chose. Lastly he pointed to the department's efforts in building community relationships and the need to create value beyond an individual calling 911. He stated community events such as the 911 Remembrance, disaster preparedness classes, Every 15 Minutes program, and Wear Your City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 11 of 19 Helmet Like a Pro, made a difference in the community and last year, staff had attended over 260 community events/outreach. Mayor Pro Tem Kring and Council Member Murray appreciated the thorough presentation by staff and the emphasis placed on neighborhood investments. PUBLIC COMMENTS ON FISCAL YEAR 2015/16 BUDGET: Carmen Leahy, Chief's Neighborhood Advisory Committee, emphasized the need to maintain police presence in the neighborhoods, as a deterrent to undesired activities. At 3:22 P.M., Mayor Pro Tem Kring continued the FY 2015/16 budget public hearing to June 16, 2015 at 3:22 P.M. and called to order the regular meeting of June 2, 2015. ADDITONS/DELETIONS TO CLOSED SESSIN: None. PUBLIC COMMENTS ON CLOSED SESSION: None. The City Clerk noted that due to a scheduling conflict, Mayor Tait would not be present via teleconference for the closed session agenda and as such, teleconferencing during closed session would not occur as noticed. CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Judy Bailey -Savage v. City of Anaheim, County of Orange, County of Orange County, George Jorge Garcia and Does 1 Through 100, Inclusive, Orange County Superior Court Case No. 30-2015 00784297-CU-WT-CJC 2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Initiation of litigation pursuant to paragraph (4) of Subdivision (d) of Section 54956.9 of the California Government Code) Name of Item: One Case. 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Gonzalez et al. v. City of Anaheim et al., USDC Case No. CV10-4660 PA (SHx) consolidated with SACV 10-1608. At 5:02 P.M., City Council session was reconvened. INVOCATION: Rabbi Mordecai Keiffer, Temple Beth Emet FLAG SALUTE: Mayor Pro Tem Kring PRESENTATIONS: Recognizing BROS for its contribution to Anaheim's youth Alfonso Rodriguez, BROS Advisor, announced this program had been established by the students at Anaheim High School to help breakdown stereotypes of Latino male high school students and ensuring those students attained four year degrees through the California university system. He then introduced his board members, Assistant Superintendent Manuel Colon, the students, and parents involved in the BROS program. Gregory Santana, President, City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 12 of 19 talked about his participation in the program and how it changed his attitude and outlook, thanking the city for recognizing the BROS organization and its impact on participants. Recognizing Paul Andresen on his retirement from the Anaheim Family YMCA Mr. Andresen appreciated the City's recognition remarking it had been an honor and a privilege to be part of the YMCA and to work with the City of Anaheim and other collaborative partners to bring quality programs to the community. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming June 14-20, 2015, as National Flag Week Jim Dimwiddie announced there would be a musical tribute to Old Glory on Sunday, June 14th at Pearson Park, an event that marked the adoption of the U.S. Flag in 1777. He added that since 1996, more than 34,000 students had entered into an essay contest on "What the American flag meant to me," and this year there were 21 first place winners from Anaheim schools who would be awarded two Disneyland passes Recognizing the 2015 Anaheim Beautiful Honorees Sandra Sagert announced the certifications of recognition would be presented to the Anaheim Beautiful Honorees at their gala on June 3rd at the Astor Classic Museum. At that gala, various local and state legislators would be recognized along with the following awards recipients: the Unsung Hero Award, the Sally White Award, and the President's Award and the Wipeout Award. Ms. Sagert also announced that in honor of national Flag Week, Republic Services was offering grants to ensure American flags were maintained and displayed for the 2015 calendar year, offering details on this program and the organization's desire to expand the program at other locations. Proclaiming June 20, 2015, as World Refugee Day Nahla Kayali, Chair Refugee Forum of Orange County and Access California Service, thanked the city on behalf of the clients she served in Anaheim and the county of Orange. World Refugee Day was a time to celebrate the accomplishments of refugees worldwide, adding that last year over 7,000 of the resettled 70,000 refugees in the United States, made Anaheim their home. She thanked Council for their support to her organization and services that ensured refugees became contributing citizens. Recognizing the 25th Anniversary of the Americans with Disabilities Act Paula Margeson and Lani Daly from Dayle McIntosh Center, thanked the city for recognizing the Americans with Disabilities Act emphasizing this law was important because it is was a civil rights legislation and the cornerstone of the inclusion of Americans with disabilities into society and should be celebrated. ADDITIONS/DELETIONS TO THE AGENDA: None The City Clerk remarked the agenda as posted noticed a teleconferencing meeting and at this time the Mayor advised he had a conflict in his calendar and would not be attending tonight's City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 13 of 19 meeting and the teleconference would not be held. For the record, she stated, the Mayor would be reviewing the meeting and the budget workshop prior to the June 16t" meeting. PUBLIC COMMENTS (all agenda items, except public hearing): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk, Linda Andal. Daniel DeMeyere, resident, reiterated his request to have the bus stop at the intersection of Brookhurst and Crestwood moved (not removed) due to safety concerns at its present location. He complained of actions taken by the Public Works Department, the lack of police patrolling his neighborhood, and the high speed traffic on Brookhust. Mayor Pro Tem Kring requested an update on Mr. DeMeyere's concerns. Interim City Manager Paul Emery responded that Council had recently been provided a memo that outlined this issue and OCTA's decision to leave the bus stop where it was currently located. Cecil Jordan Corcoran, Outreach Homeless Ministries, was supportive of the proposed 200 bed homeless shelter on Kramer Boulevard and the need to care for those who needed help. Stephanie Stieler, First Light International Foundation, spoke in support of women who stood up for their rights and were good examples for their children and objected to those who publicly disparaged those efforts. Lou Noble thanked Council Member Murray for attending the Board of Supervisors meeting this morning to support the proposed homeless shelter and multi -service center on Kraemer Boulevard. He stressed the need to find additional safe zones for the homeless as well. R. Joshua Collins, Homeless Advocates for Christ, thanked Council Member Murray for support of the County's proposed homeless shelter at today's Board of Supervisors meeting. He was critical of Code Enforcement Division's harassment of the homeless at Maxwell Park, asking for a public apology and that this policy to take the belongings of the homeless be changed. John Dunton spoke of the death of Ximena Meza, a 9 year old who had been fatally shot in a gang related shooting in Santa Ana and his organization's efforts to help the family through this crisis. He announced the business community and other donors had stepped up to help the family and as a community activist and advocate, he encouraged other volunteers to participate as well. Michael Dresser spoke in opposition to the proposed Kraemer Boulevard homeless shelter and multi -service center, citing it was the wrong location cited in an industrial center, the 200 bed shelter was too large and would concentrate all of the homeless in one area, and would reinforce the homeless perspective that they had low net worth to a community. He encouraged the city to rethink its position of support. William Fitzgerald spoke in opposition to the redistricting selection committee makeup, the Anaheim Police Review Board membership, Gail Eastman's re-election campaign and discrimination in general. Keith Olesen, on behalf of friends and supporters of the K-9 Monument effort, submitted another donation to the city which would bring the contribution amount to about $4,000. City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of lune 2, 2015 Page 14 of 19 John Gustafero, Anaheim YMCA, remarked that the Anaheim Achieves program had been implemented 15 years ago, in collaboration with the city and the school district, to provide a safe place for kids between the hours of 3:00 P.m. and 6:00 P.M. and that 15 years later, that program had been extended from 16 school sites to 47, serving over 7,000 students each day. He announced a special event scheduled for this coming Saturday, a film festival produced, written and directed by these students starting noon at the Ultralux Cinema. He invited Council and the community to attend. Gretchen Shoemaker objected to a cost of $40,000 for the Fall Festival, remarking that was too high a fee for a volunteer effort and she felt the city should be the responsible party. Her second request was to return the Mayor's administrative budget to its original amount commensurate with the duties and responsibilities of his office. Regarding the Fall Festival, Council Member Murray remarked the City Council was actively engaged in fund-raising efforts for events and she believed the city was committing funds toward the Fall Parade. Mr. Emery responded that he did not have the exact figures available regarding that funding but would follow up with that information to Council. Referencing the Mayor's administrative staff's salary, Ms. Murray commented there would be an increase proposed in the next budget, but the request to restore that figure to $100,000 for part-time work was something this Council did not support. Mayor Pro Tem Kring pointed out that every parade and every event in the city cost volunteers time to fund -raise for their causes, however, she believed there was a minimum sum that most of the non -profits received from the city, annually. Victoria Michaels, resident, requested the Mayor's staff budget be restored to $100,000 for the next fiscal year, citing the responsibilities associated with the Mayor's position. She also thanked the City Clerk for drafting a fact sheet with the dates for the redistricting meetings and locations in English and Spanish, remarking that she as a citizen would take the flyers and encouraged the community to attend, asking if others in the community would do the same. She offered a brief Spanish translation for her efforts to encourage better attendance at the redistricting meetings. Greg Diamond offered his opinion on Council interaction during public comments and also requested that more detail be presented as to what would be covered during budget workshops to make it easier for the interested public to research and be able to address relevant questions to Council on any budget concerns. Mr. Diamond added that the trial with GardenWalk had been resolved in the city's favor and it was his understanding that the city was to give 20 percent of the amount from 15 percent of the transient occupancy tax to debt service and requested clarification on why the amount shown in the budget reflected 14.6 percent budgeted for debt service, not 15 percent. Jerry Gephardt attended the free health fair at the Convention Center, remarking it was an extraordinary three day program, well attended and well used. He added that he and others were appreciative of the quality health, dental and vision care offered. Mark Daniels, resident, addressed his comments to climate change, stating the city's issues and everyday problems paled in comparison to this environmental threat and asked that Council authorize a symbolic proclamation addressing climate change and its impact worldwide. City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 16 of 19 AGR -8927 6. Approve a Temporary Construction Easement Agreement with Jeffrey G. Ames and Norma Jean Ames, in the payment amount of $1,300, for property located at 2186 West Huntington Avenue for the Brookhurst Street Improvement Project from 1-5 to SR91 (R/WACQ2013-00476). 7. Approve a Temporary Construction Easement Agreement with Sa-Rang Community AGR -8928 Church of Southern California, in the payment amount of $1,000, for property located at 1111 North Brookhurst Street for the Brookhurst Street Improvement Project from 1-5 to SR91 (R/WACQ2013-00473). 8. Approve an agreement with the County of Orange to provide literacy services for the AGR -3103.0 residents of Anaheim through the Library Division of the Community Services Department with the option to renew the agreement annually for the next three years. 9. Authorize and approve a letter seeking the support of the Governor of the State of 0109 California in expediting water supply and storage projects throughout the State of California by streamlining California Environmental Quality Act review by State agencies. Council Member Brandman had indicated he would record an abstention on Agenda Item No. Roll Call Vote reflected the following: AYES - 3: (Mayor Pro Tem Kring and Council Members Murray and Vanderbilt); Abstention - 1; Council Member Brandman; Absent - 1: Mayor Tait). Motion to Approve Carried. 10. Authorize the Public Utilities General Manager, or designee, to prepare, verify, certify AGR -9026 and submit a Notice of Intent to comply with the Statewide General National Pollutant Discharge Elimination System Permit for Discharges from Utility Vaults and Underground Structures, prepare and execute any related documents, and take any other actions necessary to implement compliance with the General Permit or the related Pollution Prevention Plan. 11. Approve and authorize the Public Utilities General Manager, or designee, to execute and take actions necessary to implement and administer the Streambed Alteration AGR 8929 Agreement, and any related documents, with California Department of Fish and Wildlife for landscaping maintenance at Walnut Canyon Reservoir, request an extension as provided in the agreement, and authorize de minimis changes that do not substantially change the terms and conditions of the agreement as determined by the City Attorney's Office. 12. RESOLUTION NO. 2015-176 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM establishing Permit -Eligible Parking District No. 38 (Charlotte Avenue) and determine the action is exempt from the California Environmental Quality Act pursuant to Regulation No. 15061(b)(3). 13. RESOLUTION NO. 2015-177 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM designating Chateau Avenue from Loara Street to Gilbuck Drive as "Permit Parking Only" streets within Permit -Eligible Parking District No. 12 (Permit Parking Area No. 12). 14. RESOLUTION NO. 2015-178 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expanding Permit -Eligible Parking District No. 13 and D175 designating Crone Avenue from Nutwood Street to Trident Street, Trident Street from City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 17 of 19 Chateau Avenue to Crone Avenue, and Broadview Street from Chateau Avenue to Crone Avenue as "Permit Parking Only" street within Permit -Eligible Parking District No. 13 and determine the action is exempt from the California Environmental Quality Act pursuant to Regulation No. 15061(b)(3). 15. RESOLUTION NO. 2015-179 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM designating Kings Court Drive from Ball Road to Bowling Street/Goodhue Avenue and Colonial Avenue from Kings Court Drive to the west end of the street as a 'Permit Parking Only" street within Permit -Eligible Parking District No. 29 (Kings Court Neighborhood). 16. RESOLUTION NO. 2015-180 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM establishing guidelines regarding lighting of Anaheim Regional Transportation Intermodal Center. 17. RESOLUTION NO. 2015-181 A RESOLUTION OF THE CITY COUNCIL OF P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 11836 and 11837). 18. RESOLUTION NO. 2015-182 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM concerning the status of the Circulation Element of the General Plan for the City of Anaheim and Mitigation Fee Program for Measure M (M2) Program. 19. ORDINANCE NO. 6333 (ADOPTION) AN ORDINANCE OF THE CITY OF X280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning based upon the finding and determination that said amendment is categorically exempt from the provisions the California Environmental Quality Act pursuant to Sections 15315 (Minor Land Divisions) and 15332 (In -Fill Development Projects) of the State CEQA guidelines (Reclassification No. 2010-00240) (DEV2010- 00134) (2248 South Loara Street) (rezoning from the Multiple Family Residential zone to Single -Family Residential zone) (introduced at Council meeting of May 19, 2015, Item No. 36). M142 20. ORDINANCE NO. 6335 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Section 1.04.110 of Chapter 1.04 of Title 1 of the Anaheim Municipal Code relating to departments of the City (amendment and deletion of certain department names). PUBLIC HEARING: 21. This is a public hearing to consider a resolution determining the public interest and P121 necessity for the acquisition of property located at 1252 North Brookhurst Street for the purposes of the Brookhurst Street Widening -1-5 to SR91 Freeway Project (continued from Council meeting of May 19, 2015, Item No. 40). This hearing was considered at 6:22 P.M. Natalie Meeks, Public Works Director, explained the public hearing was to consider a resolution of necessity to acquire a piece of property on Brookhurst Street between the 1-5 and SR91 Freeway, a portion needed for the Brookhurst Street Widening project to mitigate the bottleneck City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 18 of 19 along Brookhurst. She stated an additional lane would be added in each direction along with other street amenities and the project had been cleared with an Initial Study and Mitigated Declaration approved by the City Council on January 29, 2013. She noted the construction was scheduled for the fall of this year and that the property to be acquired was vacant with the owner having moved out without making payments for over two years. In addition, foreclosure proceedings were underway, the city had settled with the relocation of the property owner and both the owner and the bank concurred in moving forward with the resolution of necessity allowing the city to work with the bank to acquire this site. Mayor Pro Tem Kring provided guidelines for the public hearing, stating she would first take testimony from the owner of record or designated representative for the property to be limited to the following five issues: 1) where the public interest and necessity required this project, 2) where the project was planned and located in a manner that would be most compatible with the greatest public good and least private injury, 3) where the property sought to be acquired was necessary for the project, 4) whether an offer complying with Government Code 7267.2 has been made and 5) where the city complied with all other procedures prerequisite to the exercise of eminent domain in connection with the property. Mayor Pro Tem Kring then opened the public hearing for comment and invited the owner or designated representative of the property to speak. With no testimony offered, Mayor Pro Tem Kring then invited any members of the public to speak and receiving none, closed the public hearing. Council Member Brandman moved to approve RESOLUTION NO. 2015-183, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for the acquisition of property located at 1252 North Brookhurst Street for the purposes of the Brookhurst Street Widening -1-5 to SR91 Freeway Project (R/W ACQ 2013- 00455), seconded by Council Member Murray. Roll Call Vote: AYES — 4: (Mayor Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt). NOES — 0. ABSENT — 1: Mayor Tait. Motion Carried. REPORT ON CLOSED SESSION ACTIONS: None COUNCIL COMMUNICATIONS: Council Member Vanderbilt recognized the following: the success of the annual health fair held last weekend, thanking Council Member Brandman and staff for their efforts. He also thanked Council Member Murray for her leadership on the homeless issue and the upcoming Job Fair, and to Mayor Pro Tem Kring for honoring high school athletes and the unique programs offered by the YMCA as well as supporting the dog parks at La Palma and Lemon. Regarding Council administrative budget allocations, he requested the next budget discussion include details on the itemized information. Council Member Murray reported on the Board of Supervisors' unanimous vote to support the homeless shelter on 1000 N. Kraemer Blvd. She spoke about the Orange County Family Justice Center's event and highlighted staff volunteers. She congratulated the Ducks for their successful season and the Disneyland Resort on its 60th Anniversary. She also announced the upcoming OC Job Fair on June 17th and the 100 Chances event, focused on employment assistance, to be held on July 15tH Mayor Pro Tem Kring spoke of her attendance at the Orange County Family Justice Center's "Runway of Strength" event and her speaking engagement at LILIA School regarding careers in City Council Minutes of Regular Adjourned Meeting of May 19, 2015 and Regular Meeting of June 2, 2015 Page 19 of 19 leadership. She congratulated Council Member Brandman on the success of the Health Fair and the Anaheim Duck's for a great season, thanked Council Member Murray for speaking at the Board of Supervisors meeting in support of the homeless shelter, and announced the Cops for Kids event on June 12t". She also highlighted the life and achievements of Lowell B. Jones and requested the meeting be adjourned in his memory. ADJOURNMENT: At 6:45 P.M., with no further business to conduct, Mayor Pro Tem Kring adjourned the June 2, 2015 meeting in memory of Lowell B. Jones. R pec fully submitted, Linda N. Andal, CMC City Clerk