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06/16/2015 ANAHEIM CITY COUNCIL REGULAR ADJOURNED MEETING OF JUNE 2, 2015 HELD ON JUNE 16, 2015 AND REGULAR MEETING OF JUNE 16, 2015 The regular adjourned meeting of June 2, 2015 was called to order at 3:34 P.M. on June 16, 2015 in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on June 12, 2015. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring, Kris Murray and James Vanderbilt. STAFF PRESENT: Interim City Manager Paul Emery, City Attorney Michael Houston and City Clerk Linda Andal. FISCAL YEAR 2015/16 PROPOSED BUDGET PRESENTATION/HEARING: City Manager Paul Emery announced this continued public hearing was for the review and adoption of the city's FY 2015/16 budget, reflective of the strength of Anaheim's economy and projecting a small contribution to reserves. He emphasized that since the end of the recession, the city had budgeted expenditures responsibly while major revenues grew beyond expectations allowing investment into the infrastructure and to enhance services for the community. He then introduced Finance Director Debbie Moreno to oversee the remaining budget detail. Capital Improvement Plan CIP : Ms. Moreno reported Anaheim's Capital Improvement Plan was a projection of the city's capital investments over a five year period and was used as both a fiscal and planning device that allowed the city to monitor all project costs, funding sources, departmental responsibilities, and project timing. She pointed out this year's CIP budget was proposed at $298 million and introduced Natalie Meeks, Public Works Director, to highlight the significant projects for the new fiscal year. Ms. Meeks began identified projects that would be under Public Works construction during the upcoming fiscal year, as follows: • The Ponderosa Park and Family Resource Center Project, located in the South District, included replacing the existing family resource center with a new 18,400 sq. foot building and 3.7 acres of park improvements. Amenities included a shaded community picnic area overlooking the playground and splash pad water play area, a walking track to encircle the existing baseball field and tie into a new outdoor fitness area and a new restroom facility. The majority of the shade trees would be preserved and the resource center would contain a gymnasium with a full-sized basketball court, a dance and exercise room, general use classroom, team room, counseling room and a multi-use room with a demonstration kitchen. She added this building was being designed around a central courtyard that could host a variety of special events and activities. • Pioneer Park on Sunkist Street near La Palma Avenue in Central Anaheim, was a project that was part of an ongoing effort to refresh the park system and included renovation of the park restroom building and the development of a 3/4 mile lighted loop trail of decomposed granite with a concrete curb edge. She pointed out that this amenity had been requested by the residents as it was a popular walking park, particularly for active seniors. City Council meeting minutes June 16,2015 Page 2 of 32 • Circle Park, near Ball Road west of Euclid in West Anaheim, was a vacant city lot whose area residents requested it be developed into a new pocket park with a small playground, picnic area and artificial turf. • The Riverdale Avenue roadway rehabilitation project was located in East Anaheim between Lakeview and Tustin Avenue and would eliminate potholes, rough road patches, standing water and the deteriorated roadway surface. Once complete, motorists would have a smooth driving surface with rubberized asphalt and fresh lane striping. In addition, pedestrians would enjoy new ADA compliant access ramps, smooth sidewalk surfaces, and curband gutters that drained more efficiently. • The Brookhurst Street roadway widening from SR 91 to La Palma in West Anaheim was nearly 1/2 mile long and would widen Brookhurst Street from four to six lanes similar to the recently completed Brookhurst widening from Ball Road to Katella Avenue. When completed, there would be less traffic congestion, improved aesthetics through drought tolerant landscaped medians and parkways with bicyclists using dedicated bike lanes and pedestrians enjoying the wide sidewalks. Additionally, Ms. Meeks pointed out, adjacent homeowners would see a new sound wall along the length of the project as well as drainage improvements and a new signalized intersection improving safety and access to neighborhood schools and parks. • Broadway sidewalk improvements from Maple Street to Manchester Avenue in Central Anaheim would be made on the north side of Broadway about 1/4 mile from Loara and Ross elementary schools, currently functioning as a dirt pathway connecting a sidewalk at each end. The project would construct about 500 feet of a seven-foot sidewalk, was ADA compliant with ADA access ramps, and the damaged curb and gutter would also be replaced separating pedestrians from vehicular traffic for improved safety. • Windy Ridge Water Storage Tank—Ms. Meeks reported one of the ways to make water systems more reliable during emergency events was to ensure there was gravity fed storage tanks available at higher elevations. The Windy Ridge Water Storage Tank would provide 1.6 million gallons of storage capacity, offering redundancy and reliability to the highest elevation areas of the city and improve flows to fire hydrants in the event of an emergency. Construction was scheduled to begin in the fall and expected to take about two years. She added that outreach had been recently conducted for area residents to inform them of the project and address construction impacts. • Phase II of the Mira Loma Underground Project was scheduled to begin construction next month, an area located in East Anaheim between SR 57 and Miller Street. She emphasized this was an important project as the transmission lines sent power from the Canyon Power Plant and would be undergrounded to improve reliability, especially during hot summer months. • Construction would also begin on Lincoln Avenue/Rio Vista Street, an undergrounding project that included undergrounding of two overhead crossings at SR 57 and SR 91. She added that staff was in the process of coordinating engineering design plans. Tom Morton, Executive Director of Convention, Sports & Entertainment, provided an overview of the Anaheim Convention Center expansion, with construction underway for the 7th expansion, called Betterment 7. He stated the expansion would further position the Convention Center as the largest exhibition facility on the west coast allowing for the retention of long-time annual events that continued to grow and would eventually outgrow the Convention Center. In addition, the expansion would increase meeting space capacity and attract those conventions whose City Council meeting minutes June 16,2015 Page 3 of 32 meeting space needs had outpaced the current inventory in Anaheim and would also allow for concurrent business events. Another component of the expansion was replacement of the current Car Park 1, which was in need of replacement and when completed, Betterment 7 would be constructed on the current car park site, consisting of 920,000 square feet of total construction, 200,000 square feet of leasable space that could be used as exhibit, ballroom or meeting rooms, and replacement of the existing 1,350 parking spaces, new loading docks and a new improved vehicular entrance. He added, a climate controlled connection to the existing facility and all necessary front-of-house and back-of-house space would complete the project. Mr. Morton indicated that Phase 1 was scheduled for completion in the second quarter of 2016 and would provide 600 parking spaces and a new bridge connection to the existing facility, while Phase II would be completed in May 2017. Dukku Lee, Public Utilities General Manager, reported on public utilities projects that had been completed or were in the planning stages for the new fiscal year as follows: • Utility crews recently completed the replacement of two power transformers and six 220,000 volt circuit breakers in Central and West Anaheim substations. With these improvements, 40 year old technologies were replaced with the most up to date. • Sixty-three new street lights were recently installed on Velare Street and South Park Circle in West Anaheim at the request of area residents with funding provided through the CDBG grants and Public Utilities Street Lighting matching funds program. • A new water delivery system that replaced a 19 year old system no longer supported by the manufacturer was recently installed and improved the capabilities of operators to monitor and control 750 miles of pipeline in Anaheim and enabled quick dispatch of crews to troubleshoot any problem areas. Mr. Lee stated the new system also monitored 10,000+ data points which included wells, pumps, storage, and treatment facilities. • Mr. Lee reported the installation of a new high capacity deep water well would be completed near Anaheim Lake, part of the systematic replacement of shallow wells ending their useful life with new wells that could access deeper parts of the underground aquifer. This new well would allow for two older wells to be retired and help ensure Anaheim residents and businesses continued to receive high quality reliable water. • The Utilities Department also monitored the performance of water mains in order to prioritize replacement throughout the city. Mr. Lee pointed out that water pipes could last up to 100 years, however, soil conditions or other factors could cause early failures. The age and condition of the water mains were evaluated and proactively replaced with new pipes and fittings that would enhance water reliability and minimize the risk of future pipeline failures. He added that Anaheim's reliability continued to be within the top 25 percent national water agencies due to this replacement program. • A new pipeline tank and pump station were being planned to use recycled water for irrigation at Pearson Park using recycled water produced at the Anaheim Recycled Water Demonstration Facility. It would supply irrigation water for the park and center medians near the park area, freeing up potable water during the drought situation, as well as helping Anaheim meet its state required reduction requirements. • A substation expansion was planned for the Canyon Business Center to replace 40 year old equipment and provide additional capacity to meet future load growth. Additionally, substation security improvements were planned to replace older surveillance cameras. City Council meeting minutes June 16,2015 Page 4 of 32 • Ongoing direct buried cable replacements were done to ensure Anaheim residents and business owners continued to receive reliable electric service and projects throughout the city which resulted in installation of new conduit, cable, and associated infrastructure to replace existing direct buried cable that had degraded due to soil conditions or was ending its useful life. To date, he remarked, the Public Utility had replaced over 60 percent of direct buried cable in the city. Terry Lowe, Director of Community Services, offered details on projects that were expected to open in the coming fiscal year, as follows: • A new 10,000 square foot poured-in place skate park would feature a skate plaza area located near the northwest corner of Ponderosa Park at Hester and Orangewood in South Anaheim. Mr. Lowe reported staff held numerous community meetings on this project, and received first hand input from the children and young adults in the neighborhood. • A second dog park, Olive Hills, located near the Olive Hills Tennis Center, would include separate areas for large and small dogs, with an agility area, seating and drinking fountains, both for dogs and their owners. In addition, a small restroom would be added, parking lot expanded, and landscaping would be completed using native trees and grasses. • At Pelanconi Park, East Anaheim, Mr. Lowe indicated fire clearance would be provided to protect surrounding homes. • At the request of active seniors in Central Anaheim, Mr. Lowe remarked an outdoor fitness area with multiple exercise stations would be located adjacent to the lawn between the Downtown Community Center and the youth center. • Around Edison Park in Central Anaheim, a 1/3 mile wide loop trail would be constructed offering outdoor exercise equipment stations along the path and relocating the volleyball courts to the center of the park in order to provide a buffer zone between the volleyball players and neighboring homes. • The department was actively reducing water usage with the removal of 29 acres or 1.265 million square feet of turn at the Anaheim Hills Golf Course, replacing it with native friendly landscape, completely funded from an MWD grant at a cost of$2.5 million. • Mr. Lowe remarked Stoddard Park in South Anaheim on 9th Street would receive a completely renovated restroom as part of the department's ongoing program to replace aging facilities in the system. • The Manzanita Park Community Center building in Central Anaheim would be renovated due to a fire attributed to arson. The Boys and Girls Club would be relocated to this facility off Romneya west of Harbor Boulevard to better serve the needs of the participants. Mr. Lowe added the building would be expanded at Club expense to provide additional programming space, enhanced visibility and a welcoming entrance, completely upgraded and the first permanent structure for the Boys and Girls Club. • Little People's Park, not far from City Hall in Central Anaheim, would be renovated per significant neighborhood input. The gazebo structure would be replaced and the half-court basketball area enlarged to a full-court with the turf replaced. The historic Anaheim light poles would be integrated into the park with new energy efficient LED fixtures to create better park illumination and a safer environment for this public space. In addition, architecturally designed fencing and natural stone columns similar to those at Washington Park would be added to the perimeter. City Council meeting minutes June 16,2015 Page 5 of 32 • The ongoing restoration of the historic 1857 Mother Colony House near Anaheim High School would be completed this year and would include foundation repair and structural reinforcement, a new wood shingle roof, replacement of interior electrical wiring and cracked interior walls, new interior wall coverings and exterior repairs and repainted. • The interior and exterior spaces at the Euclid Library in West Anaheim and the Sunkist Branch in Central Anaheim would be reconfigured to allow for more flexible use for a variety of community needs. Within the funds available, Mr. Lowe explained, the department would be upgrading and replacing outdated and inefficient systems, along with making ADA compliant improvements in public restrooms and travel spaces. Mr. Lowe followed the above presentation by reporting on the projects in the planning stages for the coming fiscal year, as follows: • To accommodate the demand by the public to better utilize Founder's Park Community Center in Central Anaheim, the department was planning to install a shade structure off the carriage house to allow for large outdoor events. • At Chaparral Park in West Anaheim, the water play area that had been offline since the 70's would be renovated and a welcome amenity for neighboring children. • As a first phase in the rehabilitation of the Brookhurst Community Center in West Anaheim, the reception area would be improved and the existing patio cover expanded to accommodate large events. In future phases, the department would be recommending expansion of the facility to better serve senior residents as well as children and young adults with physical and developmental disabilities. • Mr. Lowe indicated there were plans for the historic Wagner House at the Anaheim Tennis Center to be renovated. In addition to replacing antiquated and inefficient electrical and plumbing systems with LEED certified equipment, this project would include new restrooms, locker facilities and training rooms and renovation of walkways, parking lots, and landscaping. Following an extensive community input process, he indicated the department was also recommending the development of a new center court with featured seating and a special event area to better accommodate tournaments and enhance the revenue generation of this enterprise operation. The balance of the park reconstruction would occur in Phase III, in conjunction with the renovation of the adjacent Roosevelt elementary schools several years from now. • One of the most unique features of the city's first park, named for Mayor Charles Pearson, was the historic cactus garden created by Rudy Boysen and plans were in the works to renovate the garden to its former greatness of the 1920's. • Mr. Lowe noted that continuing a 12-year effort to engage the Santa Ana River by extending Anaheim Coves north of Lincoln Avenue to Contrero Street, to provide for a bicycle riding and hiking trail using native landscaping and demonstration gardens. He noted the city received authorization from all the involved agencies; Orange County Water District, Orange County Flood Control District and Southern California Edison to proceed on the proposed project. John Woodhead, Director of Community Development, reported on the following developments and other capital improvement projects underway for FY 2015/16: City Council meeting minutes June 16,2015 Page 6 of 32 • The MAKE Watering Hole referred to the renovation and conversion of the former Sunkist Orange Marmalade factory to a 10,000 square foot commercial retail establishment at 500 South Anaheim Blvd. The building would contain three commercial spaces housing a brewery, a winery and a distillery, each featuring a tasting room, one retail space, and a 3,000 square foot outdoor patio that would serve as gathering space for all three manufacturers. He explained this was the fourth component of the successful Packing House District and continued to pay homage to Anaheim's citrus and historic agriculture. The building construction would begin in the summer of 2015 and was expected to be completed by the end of this calendar year. • Neighborhood Rehabilitation — Mr. Woodhead stated that the residential street rehabilitation improvements proposed citywide would address aging infrastructure and residential complaints due to long overdue repairs to streets, signs, sidewalks, curbs and gutters. He reported much of the street pavement had deteriorated over the years due to insufficient funding for preventive maintenance, large stretches of sidewalks had uplifted due to mature trees and old street signs were in need of replacement. The total cost for the project was estimated at $9.3 million. • Railroad Grade Separation Crossings—OCTA was working with Anaheim and other cities to improve traffic flow and safety on streets by building a series of bridges to separate car traffic from trains. These bridges, funded by OCTA Bridges Program, would eliminate the need for commuters and commercial vehicles to stop at railroad crossings as freight trains passed, not good for the economy, the environment or quality of life. The Orangethorpe Avenue and Tustin Avenue/Rose Drive overcrossings would have vehicles safely travel over the railroad tracks and eliminate the need for train horns at these rail crossings. • The Santa Ana River Trail, Bike Trail project would widen the existing levy and provide a river walk along the westerly side of the Santa Ana River from the south side of Katella Avenue to the railroad at the south end of the project; this trail was also located along the easterly border of ARTIC. Mr. Woodhead indicated the project included a planted retaining wall, decorative metal railing, pedestrian lighting, drought tolerant planting and irrigation, and interpretive kiosks that would serve as a safe port of entrance and encourage pedestrians and bicyclists to travel to and from the ARTIC facility. Projects in the planning stages for next year were described as follows: • Last March, Council awarded $8.2 million from the Convention Center bond proceeds to fund the addition of one fire station and the relocation of a second station to improve response times citywide. Station 5 was located in the central east section of the city at 1154 North Kraemer in a heavy industrial area as well as near SR 91 and SR 57. Mr. Woodhead remarked that moving the station west of its current location would improve response times by nearly 50 percent and for the other site, staff was evaluating property in the La Palma/SR 57 area for feasibility. Station 12 was located at 4950 E. La Palma and would be retrofitted to house an existing engine or truck company while Station 8, located on East Riverdale Avenue, would be split allowing either Engine 8 or Truck 8 to be moved to new station 12. He added the split would improve response times by nearly 50 percent and staff was in the process of completing soil analysis on the site to be followed by the start of construction. • The Community Economic Development department was continuing its efforts in the implementation of Avon Dakota neighborhood revitalization plan in Central Anaheim. The next development phase would be underway with a total of nine properties currently acquired. Once the necessary acquisitions were completed, the properties would house new City Council meeting minutes June 16,2015 Page 7 of 32 affordable housing units, including the construction of a community center that would provide a much needed amenity and social services to the neighborhood residents. • The State College Boulevard undercrossing project located north of Katella would improve traffic flow and safety on streets by lowering the road below the railroad to separate cars, bicyclists, and pedestrian traffic from the trains. This grade separation would accommodate year 2030 State College Boulevard traffic volumes and the Metrolink service expansion program as well as the LOSAN Corridor and California High Speed Rail Projects. Mr. Woodhead stated this project was also an integral part of the Platinum Triangle development. • The Western Avenue pedestrian signal installation project was located in West Anaheim between Del Monte drive and Lindacita Lane and would add a new signal in order to provide a safer route for children and others traveling to and from Western High and Date Brook Elementary schools. • Drainage/Sidewalk Improvements—This project was located in West Anaheim and would widen Dale Avenue along the 500 block to match adjacent properties. Approximately 300 feet of curb, gutter and sidewalk would be installed and since the finished grade of Dale Avenue was higher than the property's existing grade, the curb and gutter would be constructed to capture runoff in the street and improve the aesthetics of the area. BUDGET RECAP: Finance Director Debbie Moreno briefly recapped the proposed FY 2015/16 budget, restating it totaled $1.7 billion and emphasized Council's priorities of public safety and neighborhoods, while maintaining service levels that included the enhancements adopted in last year's budget. She indicated it represented a 2 percent increase from FY 2014/16 adopted budget with the largest portion belonging to the Enterprise Funds at nearly 50 percent (comprised of Water Utility, Electric Utility, Sanitation Utility, Golf Courses, the Convention Sports and Entertainment Venues and ARTIC). She remarked since posting the proposed budget in late May, 2015, there had been a recent development related to the Anaheim Regional Transportation Intermodal Center(ARTIC) that arose as the center became operational. She noted that in the beginning stage of its operations, management worked to establish the center as an asset with the ability to support funding operations through its own revenue streams, which did not occur after the first months of operation. As a result, staff worked to minimize impacts by reducing costs and identifying other revenue opportunities. For the proposed FY 2015/16 budget, $2.2 million was needed to supplement ARTIC operating costs with staff identifying Measure M funds as a possible source for the shortfall and included that funding source in the proposed budget. Staff continued to look for other ways to address that shortfall, including discussions with the Anaheim Tourism Improvement District (ATID). She reported that on June 15, 2015, the ATID committee approved $4 million to help supplement funding for ARTIC operations and the budget would now be adjusted to reflect a $4 million transfer from the ATID funds, including $2.1 for the current fiscal year and the remaining $1.9 in the proposed budget year. She remarked this action reduced the transfer for operating costs for Measure M funds from $4.2 million for two years to only $300,000 in the proposed budget, which in turn allowed for more future street and road projects. General Fund Revenues/Expenditures Review: Ms. Moreno stated the City's base revenues totaled $286.2 million and with a surplus of$10.6 million, staff was able to recommend $10.4 million for additional service enhancements to directly benefit the community. Those enhancements had been divided into on-going services and one-time projects or improvements with the remaining surplus of$200,000 to increase General Fund Reserves. City Council meeting minutes June 16,2015 Page 8 of 32 The following breakdown of on-going services were based on the five-year capital improvement plan with staff recommending $6.2 million in public safety,street improvements and park/neighborhood improvements, as listed below: Public Safety: • For Police, funding was proposed for 10 new Police Officers, which represented the second year of the City Council's initiative to add 40 new Police Officers over four years. It also included the Public Safety Career Pipeline program. • Fire & Rescue funding was for three new firefighters at Station 7, funding for a new hire training academy, and the continuation of the Community Care Response Unit pilot program. Street Improvements: • Additional funding opportunities included street improvements to address aging infrastructure and long overdue repairs to streets, signs, sidewalks, curbs and gutters. Parks and Neighborhoods: • Community Services funding was proposed to expand the mobile afterschool program approved last year from once a week in 10 neighborhoods to twice a week, and adding daily after school recreation programs in 10 parks. Funding in the amount of$4.2 million in one-time projects and purchases to benefit parks and neighborhoods, street improvements and public safety: Parks and Neighborhoods: • Community Services one-time enhancements include installation of air conditioning and heating in the Peralta Park Recreation building and funds to repair the damaged drainage at Olive Hills Park. • Also included was the continuation of park refresh projects, including adding pathway lights, repairing or replacing playground surfaces in the parks, and making necessary turf renovation and irrigation improvements Street Improvements: • Public Works funding would include illuminated street name signs and various upgrades to streets, sidewalks, curbs and gutters throughout the City. Public Safety: • A $200,000 enhancement for signal preemption, a new Type III Fire Engine for wild land events, and funding for fire clearance at Pelanconi and Deer Canyon Parks. City Council Personnel Services: As requested by Council Member Vanderbilt, Ms. Moreno provided an overview of personnel costs for the City Council budget. The total proposed personnel services budget for City Council reflected $670,000, a decrease of ten percent from last year's budget, although there was a proposed funding increase for each elected official to cover their projected expenses associated with their assistants, at increase of$2,000 or three percent for a total of$67,000 per assistant. There was also $4,300 included for each assistant to cover the expense of medical insurance premiums should all employees become eligible and elect to enroll in the city's health plan in accordance with the Affordable Health Care Act. City Council meeting minutes June 16,2015 Page 9 of 32 Currently she reported staffing consisted of a Mayor's Assistant, two Senior Policy Aides and one Council Aide, along with a professional services agreement for contract labor and one shared Council Services Coordinator providing assistance to all Council Members. SUMMARY: In summary, she remarked, the General Fund budget provided for an additional $10.4 million for parks and neighborhoods, street improvements and public safety, a reflection making living in Anaheim easier, safer and more prosperous while maintaining a structural balance where ongoing revenues exceeded ongoing expenditures. She added the five year plan included increasing the cost of funding for long-term obligations including pensions and retiree medical expenses insuring Anaheim's ability to afford proposed services today and into the future. She emphasized the funding status of the pension plan had improved from about 64 percent in 2010 to an estimated 74 percent at fiscal year's end, in 2014. In addition, the retiree medical plan had been closed to new participants as well as those nonsworn personnel hired after January 1, 1996 and sworn personnel in late 2011. She pointed out the city had a long- standing tradition of prefunding this obligation in contrast with many other agencies that had little or nothing set aside (32 percent funded at $82 million). As a result, she pointed out, two rating agencies, Fitch and Standard & Poor's both reviewed the City's General Fund credit in November of 2014 and affirmed the AA rating, which meant Anaheim had a strong capacity for financial commitments and very low risk of default. Lastly she remarked, the city's Budget, Investment and Technology Commission unanimously supported the proposed budget for the coming fiscal year. She indicated that later on in the agenda, council would consider adoption of the FY 2015/16 budget, including the amendments for service enhancements as presented, the appropriations limits for the city and its five community facilities districts as well as changes to the city's fee resolutions for the new fiscal year. DISCUSSION: Council Member Vanderbilt inquired if the budget figures detailed in the CIP funding sources summary would need to be adjusted based on the ATID's recent commitment to ARTIC operations expense and also if there was some intent to use available funding for the environmental and engineering studies related to Anaheim Rapid Connect(ARC). Ms. Moreno remarked that the figures were already in place for ARTIC and would require a simple shift between the fund transfer from Measure M and ATID. After further discussion, Ms. Moreno emphasized that ATID would be able to afford any budgeted expenses they had planned as well as maintain a fund balance of$7.3 million. In reference to the ARC query, Natalie Meeks responded that an environmental study was underway for ARC, funded through Orange County Transit Authority with a ten percent match provided by ATID, since transportation was one of the reasons the ATID was formed. She added those funds were separate from the ATID surplus and had already been encumbered by ATID. Referring to budget document details, Mayor Tait stated it appeared the total budget grew by $18 million from last year's budget with Ms. Moreno responding that general fund revenues proposed for the 15/16 year had exceed the 14/15 revenues by$18.5 million. However, she pointed out, when the FY 2014/15 adopted budget was developed, staff had anticipated revenues would grow by nearly $9 million to be able to provide for the city's on-going costs (roughly $8 million in labor costs and $5 million in increased pension costs) which meant the budget actually increased about $8-9 million over what had been projected. Mayor Tait responded that left roughly $6 million in surplus for City Council priorities (ten officers and three firefighters) rather than taking away from existing services. Ms. Moreno commented that the cost of firefighters and the training academy was about$1 million, the additional police officers City Council meeting minutes June 16,2015 Page 10 of 32 at $2 million, $2.2 million allocated to street repair, another small portion to Fire with slightly over$500,000 for recreation programs. Mayor Tait added that he understood the ATID transfer for ARTIC operations asking if general fund monies would then be freed up for future street improvements as a result. Ms. Moreno replied that no general fund monies were allocated to ARTIC operations; however the transfer would make available those Measure M funds for streets and roads. Requesting clarification on the budget's projected revenues for the Resort District, which showed a robust growth from FY 2015/16 to FY 19/20, Ms. Moreno responded the revenues included anticipated funds from the Convention Center expansion with another$6 million in net revenues beginning FY 18/19, that included transient occupancy taxes, sales taxes and property taxes, but did not include funds from the GardenWalk development since construction was not underway. Mayor Tait then pointed out that total revenues from the Resort reflected $147 million with the corresponding total expenses shown as $80 million which meant 54 percent of revenues went back into the Resort. Ms. Moreno explained that while a large portion of funds went back to the Resort, since it produced more than it spent it resulted in 24 percent less resources needed for the rest of the community. In response to a follow-up question, Ms. Moreno remarked that in 2013, the tax revenues generated by the Resort was slightly less than 50 percent and now it was slightly more; however, the cost of service had not increased as much as the tax revenues and the surplus for the rest of the General Fund had increased both in nominal dollars and as a percentage. In 2013, it was nearly a 20 percent contribution and now that contribution, she reported, was nearly 25 percent of the General Fund budget. Council Member Murray remarked this was one of the best budgets seen in decades with a positive five year outlook investing robustly in the community and neighborhoods. She added it was also the result of policies that were sometimes criticized but were reflective of incentive programs that had been successful for many years and had resulted in long-term revenues. She appreciated staff's expertise, time and efforts in bringing forward this budget and thanked the city's tourism partners for their commitment to offset funding for ARTIC while the city investigated other revenue generators to cover operational costs in the future. Mayor Tait's focused on the debt service obligation for the $180 million Convention Center expansion, asking how the city could pay for a $14 million annual debt obligation for the next 30 years, when the expansion would generate around $6 million in TOT. Ms. Moreno stated when staff reviewed those figures, the $6 million was a net number and did not include the LPMR related to the 1997 Resort Bonds and did not include revenues that would have been otherwise lost if the expansion had not occurred because the timing was such that the city was better off by expanding. Mayor Pro Tern Kring thanked staff for an extraordinary budget that showed the tremendous impact tourism had on the city and a bright future with new hotels coming on board and new trade shows signing up to take advantage of the Convention Center expansion. She remarked there was not one part of the city that would not see an improvement with this budget and she had been supportive of the tourism and hospitality industry for the last 12 years and was ready to move forward. PUBLIC COMMENTS ON FISCAL YEAR 2015/16 BUDGET: None Mayor Tait then continued the FY 2015/16 budget public hearing to Agenda Item No. 30, the adoption of the budget document and supplemental actions. City Council meeting minutes June 16,2015 Page 11 of 32 • ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 4:38 RM., Council recessed to closed session for consideration of the following item. 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 At 5:11 P.M., Council returned from closed session and the agenda was resumed. INVOCATION: Mae Masrori, Bahai Faith FLAG SALUTE: Council Member Jordan Brandman ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming July 4, 2015, as Independence Day Proclaiming June 2015, as LGBT Pride Month Jim Cain, Operations Manager for the Anaheim Community Council, thanked the city for their support of the July 4t" event honoring military and fallen heroes. Zachery Glass, Orange County Pride, accepted the LGBT Pride month proclamation, and invited the community to join in the celebration of OC Pride Week with events being held countywide. Mayor Tait announced in honor of a friendly wager he made with Mayor Rahm Emanuel over whether the Anaheim Ducks or the Chicago Blackhawks would take home the Stanley Cup, he would send a case of Anaheim's finest craft brew and Anaheim Chiles along with a personal check to a charity for at risk youths in Chicago selected by Mayor Emanuel. Conversely, he announced and presented a video of Mayor Naheed Nenshi of Calgary, singing "Let It Go" as well as reported Mayor Nenshi's contribution to ACT, because the Anaheim Ducks defeated the Calgary Flames. ADDITIONS/DELETIONS TO THE AGENDA: None 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. Cecil Jordan Corkern discussed the challenges of being homeless and for a discussion on the proposed County multi-purpose homeless shelter on Kraemer Boulevard. City Council meeting minutes June 16,2015 Page 12 of 32 Gail Eastman, former Anaheim Council Member, spoke in support of Item No. 29, the Four Diamond hotel incentive policy, important for the future of the city and important for the construction and high level jobs that development would generate. Jill Kanzler, SOAR, encouraged Council to approve the hotel incentive program, to attract hotel developers to make additional investment in Anaheim, to further grow the economy through taxes paid by visitors and as a complement to the convention center expansion. William Fitzgerald offered his opinion on a number of items; i.e. city politics, city leaders, Disneyland. Jonathan Barba, Orange County Young Democrats, spoke in support of the hotel incentive remarking it was not a partisan issue but one offering opportunities for those in the construction trades and for local young men and women to have a chance to learn lifelong skills. Larry Fraser, resident, requested the city reconsider the sale of fireworks in Anaheim, remarking this was not the time to take a chance on fire hazards during this severe drought condition and recommending that it be revisited when normal rainfalls made such a policy viable. Raymond White, Chaparral Park resident, strongly objected to a halfway house operating in his neighborhood remarking there were frequent calls for police and paramedics at the home which was operated in a manner detrimental to the neighborhood. Ron Miller, LA/OC Building Construction Trades Council, stated his organization represented 140,000 craftsmen and women within 48 different local unions and 14 trades and were in full support of the luxury hotel incentive program emphasizing that building trades also provided careers and via local hires and apprenticeships, those career pipelines opened up to the community. He added the Convention Center expansion was one of the most important decisions City Council had made and this policy would help retain and attract large conventions to support that expansion investment. Richard Samaniego stated IBEW Local 441 represented over 2,000 local workers, many that lived in or near Anaheim and would benefit from the luxury hotel incentive program. Adoption of this project would provide for prevailing hourly wages under the Davis Bacon Act of 1931, legislation, He encouraged Council approve the hotel incentive program on the agenda. Phil Salerno, representing Local 500 cement masons, supported a hotel incentive program not only for the development it would generate but for the language it contained that put apprentices to work along with veterans. Ernesto Medrano, LA/OC Building & Construction Trades Council, remarked that he had attended the groundbreaking of Anaheim Convention Center expansion and that it was now time to support that investment with high-end hotels that created skilled and high paying wages while putting young people to work with the protections of the apprenticeman and journeyman standards and local hire provisions. Alejandro Reyes remarked he had been trying to get into an apprenticeship program as a career pathway and encouraged the city to go forward with the luxury hotel incentive so he and others could help build Anaheim. City Council meeting minutes June 16,2015 Page 13 of 32 Daniel Meza Jr., OC/LA Ironworker, stated he was an example of what such a program as the hotel incentive policy could do to give residents an opportunity at a career and a better life, a chance for Anaheim's youths. Keith Harkey, representing 4,500 members of Ironworkers of OC/LA, emphasized his members provided safe and highly skilled ironworkers in the industry and their apprenticeship program would be opened up to the local work force and veterans. His organization fully supported approval of Agenda Item No. 29. Jon Dunton, resident, praised the Cops 4 Kids program, remarking it was one of the greatest organizations offered to Anaheim's kids to keep them out of trouble and was well received in the community, as evidence by one of the largest graduation class this totaling 480. R. Joshua Collins, Homeless Advocates for Christ, requested city municipal code be repealed that banned personal property from being stored in parks, stating it was being selectively enforced and targeting only the homeless. Lou Noble remarked that refugees forced from their homes saw neighboring countries taking them in and giving them safe zones in which to live. He urged the same type of safe zone be provided for Anaheim's homeless population. Larry Slagle spoke in support of the hotel incentive program remarking it was an amenity lacking in Anaheim because the focus for years had been driven by family tourism and vacation- oriented facilities and activities. He stated luxury hotels would attract high spenders, enhancing the city's image as a resort destination, as well as generating a high income stream because of the increased rooms and room rates. Charles Hams, Anaheim OCV&CB, remarked the Convention Center expansion when completed would make the resort a global convention destination unlike any other on the west coast or in the country. He provided statistics from last year and added convention attendees expected high levels of accommodations and the hotel incentive policy would enable Anaheim to offer these options and he urged Council to support this policy. Barry Gilbert, Anaheim RAICES, invited the Council and public to visit their annual field day event at the West Anaheim Police Substation on Beach Boulevard. Members of this amateur radio organization would be operating all day and night from June 27—June 28th and he encouraged the public to visit. Kevin Curtis, Rainforest Café, remarked that thanks to Disneyland, Downtown Disney, the Angels, the Ducks, and the soon to be expanded Convention Center, tourists, families and business travelers came to Anaheim, ate in Anaheim restaurants, shopped in local stores and stayed in local hotels while generating tax revenues for the city. He believed the was good for the business community, employees and the residents of Anaheim as it paid for the vital services that all enjoyed. Carl Ritola, plumbers &steamfitters local 582, urged the city to solidify Anaheim's position as a tourist destination and to provide construction jobs for the local work force who for too long had to travel long distances in order to work. City Council meeting minutes June 16,2015 Page 14 of 32 David Moore, resident, had been driving to work in Riverside as a construction laborer by trade, and was appreciative of the local hiring preference in the hotel incentive program, urging council's approval. Julio Perez, OC Labor Federation, urged Council to support the hotel initiative including the language that called for local hires and apprentice standards. He remarked the labor federation that consisted of 250,000 men and women working in Orange County prided itself on reaching out and collaborating with the community to enhance opportunities for young workers to establish good jobs and careers. He asked those in support stand up in solidarity for this policy. Victoria Michaels, resident, requested the Mayor's staffing budget be restored to $100,000 a year, stating it was needed for the mayor to address his unique responsibilities and by not doing so; he was handicapped by the loss of his assistant during the remaining fiscal year. Kathy Dutton, resident and hospitality representative, spoke in support of the hotel incentive program remarking it would give Anaheim a competitive edge against other tourist destinations and encourage new development specific to luxury hotel products that would attract new business and close the competitive gap. Ross McCune, Anaheim Chamber of Commerce, urged Council to vote in favor of the hotel incentive program, indicating the Chambers believed the new policy would be the next step in maximizing the value of tourism in the city on par with any other major city. He added it supported the current expansion efforts of the Convention Center, and would bring in needed jobs in the construction phase and when the hotels were opened and was also about economic development in the city to be able to reinvest in neighborhoods and city services. Richard Wood, resident, opposed the hotel incentive program, pointing out the General Fund revenues received had been 20 percent in 1996 and now, after millions of dollars in bonds invested in the Resort, it was only up to 24 percent and in his opinion was not a good investment return. He added giving away taxes so the privileged few could enjoy luxury hotels was not in the best interests of Anaheim's residents and that if there was really was a demand for these types of hotels, developers would build them under the free enterprise. Mark Daniels, resident, spoke against approval of the luxury hotel incentive, remarking that in the 1990's, a promise had been made that the money generated from the Resort area was to help the rest of the city. In his opinion that did not happen, and the funds generated from the resort did not appear to make a difference in the rest of the city. An unidentified speaker addressed sidewalk concerns, caused by uprooted sidewalk foundations and deterred maintenance, asking for the city to take some action. Mayor Tait concurred that sidewalks were an issue emphasizing that it was being addressed in the new fiscal budget and would be discussed during Agenda Item 30. Jerry Alder, GardenWalk, urged Council to support the hotel initiative, remarking incentives were a valuable tool in the hospitality industry as it put the city in control of timing and making sure all elements of a development came together at the right place and time. Amin David was not against luxury hotels coming into the city and was a long-time supporter of labor, but expressed his belief that this type of development should stand on its own, unaided, like any other business in the city. City Council meeting minutes June 16,2015 Page 15 of 32 Larry Larsen remarked that Anaheim's business model of identifying, notifying and flagging business strategies in advance was flawed and developers/hotel owners should come to the city and negotiate their own deal, adding if there were business opportunities here, the developers would be here as well. Mathew Garcia, apprentice ironworker, spoke in support of the hotel incentive policy and about the positive impacts the apprenticeship program made in his life. Doug Macioni, IBEW, emphasized the importance of creating jobs and why incentives were sometimes necessary to bring in business. Yesenia Rojas remarked that nothing had changed on Anna Drive and with all the discussion about hotels, corporations and revenues being generated, her community remained unchanged. She pointed out neighborhood kids were outside with nothing to do when they needed to be kept active and out of trouble. Benita Gagne stated the Anaheim Republican Assembly spanned all of Anaheim and came from varied social and economic backgrounds and that her board of directors requested she speak to Council in opposition to the luxury hotel incentive program. She recognized that increasing Anaheim's economy and creating jobs at all levels was important but felt tourism was a volatile segment of the American economy and the likelihood of Anaheim's economy increasing for 20 straight years would not come to pass. She added that basing a major portion of city revenues on the sometimes unpredictable tourism industry was not good fiscal government policy. An unnamed man was in favor of the hotel incentive program, stating it would provide jobs for local tradesmen and increased revenues to the city. Brian Chuchua, resident, opposed the hotel incentive program, remarking transient occupancy tax should be preserved for the city's general fund now and in the future. Cynthia Ward, CATER/resident, congratulated staff on developing a budget document that was "as close to transparent" as she had seen. She remarked for the first time the benefits from the Resort had been quantified at 24 percent, although she commented decisions had been made based on the assumption it generated 50 percent of revenues. In addition, for the first time, bond obligations had been disclosed and lease revenue obligations from 1997 to present was shown as an unfunded liability at over$775 million and she believed the city would fall short on its payments based on a revenue growth of just four percent. She requested Council defer any action on the budget tonight, look at past practices at what other communities were doing and build that into the assistance agreement. She urged Council to consider a more conservative approach. Todd Ament announced the Anaheim Jobs Fair being held at the Convention Center on June 17th with 224 employers offering 3,500 jobs. He also spoke in support of Agenda Item 29, a policy that would benefit the residents and businesses with no risk for residents. He offered statistical data that showed the city would be better off with a luxury hotel than a 2-3 diamond facility. He added the policy was based on two decades of sound market research and studies which had proved to be correct and he urged council's approval. City Council meeting minutes June 16,2015 Page 16 of 32 COUNCIL COMMUNICATIONS: CITY MANAGER'S UPDATE: Paul Emery, Interim City Manager, played a flash mob video created by the Planning Department which highlighted customer appreciation during National Building Safety month. CONSENT CALENDAR: Mayor Tait removed Item No. 15 from the consent calendar for further discussion. He also indicated an abstention on Item Nos. 13 and 17 as his firm had worked with HDR this past year and with SoCal Edison. Mayor Pro Tem Kring then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the consent calendar as presented, in accordance with reports, certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Council Member Vanderbilt. Roll Call Vote: Ayes—5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt.) Noes—0. Motion Carried 8105 1. Receive and file minutes of the Budget, Investment and Technology Commission recommendation dated June 16, 2015 and Public Utilities Board meeting of April 22, 2015. 0117 2. Approve the Investment Portfolio Report for May 2015. 3. Determine, on the basis of the evidence submitted by Walt Disney Parks and Resorts AGR 1516 U.S., Inc., that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 96-01 for the 2014 review period for the Disneyland Resort Project. 4. Authorize the Purchasing Agent to issue purchase orders, in an amount not to exceed $6,219,140 plus applicable taxes, for various City vehicles for the 2015/16 fiscal year, 0180 including a three percent (3%) contingency for unexpected costs associated with these vehicle purchases and for the replacement of vehicles severely damaged in accidents. 5. Accept the low bid from SIGMAnet, Inc., in the amount of$155,330.69 plus applicable 0180 tax, for the one time purchase of storage area network (SAN) equipment and installation for the City and authorize the Purchasing Agent to issue a Master Agreement Purchase Order with four one-year optional renewals to make future purchases of SAN equipment, in accordance with Bid#8511, and available budget appropriations. 6. Award a contract to the lowest responsible bidder, Vasilj, Inc., in the amount of $2,597,810, for the Citywide Sanitary Sewer Improvement Program/Projects, Group 6, AGR-8996 Model 13 on Harbor Boulevard, West Street, Wakefield Avenue and Eleanor Driver and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 7. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the D180 Purchasing Agent to issue a purchase order to Taser International, Inc., in the amount of $32,500 plus applicable tax, for the purchase of 50 additional body-worn cameras, maintenance and support for the Anaheim Police Department and authorize the Purchasing Agent to make future purchases of this equipment and related services, renew the maintenance and support agreements, and execute all documents necessary to complete the transactions, subject to available budget appropriations. City Council meeting minutes June 16,2015 Page 17 of 32 AGR-3502.0 8. Approve a License Agreement with The Chance Theater and waive fees to utilize Twila Reid Recreation Center for rehearsals for a period of three years. AGR-1989 9. Approve an Amended and Restated Lease Agreement with Savanna School District to .1.1 lease a portion of Twila Reid School for park purposes and authorize the Director of Community Services to extend the agreement upon the same terms and conditions for five additional one year terms upon expiration of the amended and restated term. 10. Approve the First Amendment to Agreement with Mercy House, in the amount of AGR-7741.A.1 $104,000, to continue operations of the La Palma Check-in Center for the purpose of providing outreach and assistance to transient and homeless persons at La Palma Park and the immediate vicinity during fiscal year 2015/16 and authorize the Director of Community Services to extend the agreement upon the same terms and conditions for three additional one year terms and modify the compensation up to 10% of the contract amount. AGR-8997 11. Approve an Engineering Services Agreement with Stantec Consulting Services, in an amount not to exceed $740,180.70, for the Traffic Signal Synchronization Project on Orangewood Avenue (Batavia Street to Harbor Blvd). 12. Approve and authorize the Director of Public Works to execute Contract Change Order AGR-8480.0.1 No. 1 and any related documents, in the amount of $84,346, in favor of Asplundh Construction Corporation for the Intelligent Transportation Systems, Changeable Message Signs and Changeable Arrow Signs Project in the Anaheim Resort for Katella Avenue, Harbor Boulevard, Disneyland Drive, and Convention Way. AGR-8998; 13. Approve and authorize the Public Works Director to execute and take the necessary 8999;9000; 9001;9002; actions to implement and administer the on-call professional services agreement, and 9003;5756.A; any related documents, with 34 companies for as-needed consulting services to support 9004;9005; the Public Works Department and authorize di minimis changes as approved by the City 9006;9007; 9008;9009; Attorney (3QC, Inc., AK Consulting Engineers, Inc., Anderson Penna Partners, Inc. 9010;5748.A; ARCADIS U.S., Inc., Richard Brady & Associates, CASC Engineering and Consulting, 9011;5760.A; Inc., CIVILSOURCE, Inc., CWE, DHS Consulting, Inc., DUDEK, e2020 Technology, Inc., 5757.A;9012; Field Automated Communication Systems, LLC, Fountainhead Consulting Corporation, 9013;9014; 9015;9016; GHD Inc., Ghirardelli Associates Inc., EC &AM Consultants DBA GK &Associates, 9017;9018; HDR Construction Control Corporation, Heery International, Inc., KITCHELL CEM, Inc., 9019;5755.A; KOA Corporation, RAK Development Inc. DBA Kreuzer Consulting Group, LSA 9020;5752.A; 9021;5750:A; Associates, Inc., MARRS Services, Inc., Onward Engineering, Parsons Brinckerhoff, 9022;9023; Inc., PMA Consultants, LLC, Project Dimensions, Inc., RBF Consulting, SA Associates, 9024 Simplus Management Corporation, Swinerton Builders DBA Swinerton Management & Consulting, TMCx Solutions, LLC, VA Consulting, Inc., Vanir Construction Management, Inc.). Mayor Tait recorded an abstention on this item due to a potential conflict of interest. Roll Call Vote: AYES—4: (Mayor Pro Tern Kring and Council Members: Brandman, Murray and Vanderbilt). NOES— 0. ABSTENTION— 1:Mayor Tait. Motion Carried. 14. Approve and authorize the Public Works Director to execute and take the necessary AGR-9025 actions to implement a Professional Services Agreement, and any related documents, with G4S Secure Solutions, Inc., in an amount not to exceed $752,533 per year, for security guard services at City facilities. 1 City Council meeting minutes June 16,2015 Page 18 of 32 16. Approve the Second Amendment to Water Conservation Funding Agreement No. 70026 AGR-4060.2 (Agreement 70026)with the Metropolitan Water District of Southern California (MWD) to AGR 341$.2 extend the term for an additional ten years to June 30, 2025, approve the Second Amendment to Water Conservation Funding Agreement No. 66637 (Agreement 66637) with MWD to extend the term for an additional nine years and six months to June 30, 2025, and authorize the Public Utilities General Manager to execute the Second Amendment to Agreement 70026 and the Second Amendment to Agreement 66637, and any other related documents, and take any actions necessary, required, or advisable to implement and administer said Second Amendments. 17. Approve a Joint Audit Agreement among the Boulder Canyon Project Contractors, which AGR 2005.) include the City of Anaheim, and the Southern California Public Power Authority relating to a joint audit of the Hoover Dam Power Plant electric service agreements and authorize and direct the Public Utilities General Manager to execute the Joint Audit Agreement, and any other related documents, and for the General Manager, or designees, to take any and all actions as are necessary, required, or advisable to implement and administer the Joint Audit Agreement or otherwise participate in activities related to the Joint Audit. Mayor Tait recorded an abstention on this item due to a potential conflict of interest. Roll Call Vote: AYES—4:(Mayor Pro Tem Kring and Council Members:Brandman, Murray and Vanderbilt). NOES—0. ABSTENTION— 1:Mayor Tait. Motion Carried. 18. Approve a Master Subscription and Use Agreement with The Scientia Group, Inc., in the AGR-7853.A annual fee amount of$31,250, for Anaheim Fire& Rescue to utilize electronic patient care report software from Scientia for a one year period with the option to renew for one additional year. AGR-7162.8 19. Approve and authorize the City Manager to execute various CaIWORKs Vocational AGR-7681.A Training Program Vendor Agreements (E. Cubics, LLC, Fortuna Educations, LLC, IEC AGR-9058 US Holdings, Inc., and QPE Technical Institute, Inc.) and authorize the Workforce AGR 7682.A Development Manager or his authorized representatives to administer the agreements for the provision of occupational skills training. 0154.3 20. RESOLUTION NO. 2015-184 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-097 nunc pro tunc(Police Safety Management). D154 21. RESOLUTION NO. 2015-185 A RESOLUTION OF THE CITY COUNCIL OF THE CiTY OF ANAHEIM amendirig Resolution No. 2014-093 for the purpose of creating, deleting, and/or modifying certain classifications designated as Administrative Management. RESOLUTION NO. 2015-186 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-094 for the purpose of creating, deleting, and/or modifying certain classifications designated as Middle Management. RESOLUTION NO. 2015-187 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-095 for the purpose of creating, deleting, and/or modifying certain classifications designated as Professional Management. City Council meeting minutes June 16,2015 Page 19 of 32 RESOLUTION NO. 2015-188 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-096 for the purpose of creating, deleting, and/or modifying certain classifications designated as Supervisory Management. RESOLUTION NO. 2015-189 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-061 for the purpose of creating, deleting, and/or modifying certain classifications designated as Confidential. RESOLUTION NO. 2015-190 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-053 for the purpose of creating, deleting, and/or modifying certain classifications designated as Anaheim Municipal Employees Association, General Unit. RESOLUTION NO. 2015-191 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-098 for the purpose of creating, deleting, and/or modifying certain classifications designated as Anaheim Municipal Employees Association, Clerical Unit. RESOLUTION NO. 2015-192 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-173 for the purpose of creating, deleting, and/or modifying certain classifications designated as Teamsters, Local 952. RESOLUTION NO. 2015-193 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2015-173 for the purpose of creating, deleting, and/or modifying certain classifications designated as Non- Represented Part-Time. RESOLUTION NO. 2015-194 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-062 for the purpose of creating, deleting, and/or modifying certain classifications designated as Non- Represented Part-Time Event. 22. RESOLUTION NO. 2015-195 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-092, which established rates of compensation for classifications designated as Executive Management. 0154.4 RESOLUTION NO. 2015-196 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing rates of compensation and pay policies for classifications designated as Fire Safety Management and superseding Resolution No. 2000-129 and amendments thereto. 23. RESOLUTION NO. 2015-197 A RESOLUTION OF THE CITY COUNCIL OF AGR 9027 THE CITY OF ANAHEIM declaring its intention to adopt an ordinance granting a non- exclusive franchise to Center of the Universe LLC for transportation services within and around the City of Anaheim Packing District, establishing a time and date of a public hearing to consider such franchise and a fee in support of such franchise (Public hearing scheduled for July 21, 2015). City Council meeting minutes June 16,2015 Page 20 of 32 Approve an application for a non-exclusive franchise to Center of the Universe LLC to provide transportation bus trolley services, determine that a California Environmental Quality Act statutory exemption is the appropriate environmental determination for this request, and approve an agreement with Center of the Universe LLC to provide temporary shuttle services for up to a six-month period. 24. RESOLUTION NO. 2015-198 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM removing Janss Street from Permit-Eligible Parking District No. 30 (Citron-Resh District). 25. RESOLUTION NO. 2015-199 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM designating east side of Citron Street from Sycamore Street to 114 N. Citron Street and Chartres Street from Citron Street to Resh Street as "Permit Parking Only" Street within Permit-eligible parking district No. 30 (Citron-Resh Neighborhood). D182 26. RESOLUTION NO. 2015-200 A RESOLUTION OF THE CITY COUNCIL OF AGR-9150 THE CITY OF ANAHEIM authorizing the California Statewide Communities Development Authority to conduct any levy contractual assessments within the City of Anaheim in accordance with the California Street and Highways Code; and approving a Participation Agreement for the CaliforniaFirst Program and authorizing the City Manager to execute that agreement and take such actions as are necessary to implement and administer the agreement. R100 27. RESOLUTION NO. 2015-201 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the destruction of certain city records more than two years old (Audit, City Administration, City Attorney, City Clerk, City Treasurer, Finance, Fire & Rescue and Police). 28. ORDINANCE NO. 6335 (ADOPTION)AN ORDINANCE OF THE CITY OF M142 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) (Introduced at Council meeting of June 2, 2015, Item No.20). END OF CONSENT CALENDAR : 15. Approve the Third Amendment to the Concession Agreement with Nederlander-Grove, LLC to exercise the extension of the agreement through December 31, 2020, modify the AGR-1843.0.32.3 termination language of the agreement, and allow Anaheim-based performing arts organizations use of the facility for up to five days annually at no rental charge; and AGR-1843.0.34.3 approve the Third Amendment to the Parking License Agreement to exercise the extension of the agreement through December 31, 2020 and modify the termination language of the agreement to be consistent with the Concession Agreement. At 7:16 P.M., Tom Morton, Executive Director of Convention, Sports & Entertainment, introduced a new member of his team, Dan Lee, formerly with the Long Beach Convention Center, Arena and Performing Arts Center. He then announced Item No. 15 referenced a contract extension option with Nederlander Grove for management services at the City National Grove of Anaheim. Providing background on the Grove, he indicated it had gone through a number of changes since it opened as Tinseltown City Council meeting minutes June 16,2015 Page 21 of 32 Studios in 1998 under Ogden ownership. The dinner theater then quickly changed to a multi- purpose venue and was renamed the Sun Theater, followed by a change in name to the Grove of Anaheim when SMG acquired the facility management interests. As SMG was not successful with programming of the space, the City of Anaheim acquired the building in 2002 at a cost of $6.7 million and hired Nederlander organization as a management partner for the venue. Most recently, he reported, Nederlander brought on City National Bank as a naming rights partner and the building was renamed the City National Grove of Anaheim. He remarked that since 2002, the Grove presented over 2,800 events, over 200 per year, ranging from concerts and comedy to Broadway and family shows to performing arts and cultural events. Corporate and special events along with city/community events used this facility as well. He mentioned concert headliners that included Prince, Stevie Nicks and Willy Nelson and Broadway and family shows such as Rent, Grease, Cats, Stomp, and Sesame Street Live as well. Various dance companies had performed at the Grove as well as hosting Apple, AT&T and Billabong corporate events. Mr. Morton emphasized the Nederlander partnership had been outstanding and the city received over$6.5 million in revenue sharing and parking lease revenues to date. Mr. Morton explained Council was considering the approval of the current five year contract extension with Nederlander providing management services of the Grove through December 31, 2020. In addition, he indicated there was newly added contractual language that allowed the city additional termination options should the facility or the site be developed, redeveloped or repurposed in the near future, including the development of a performing arts center and language that would allow Anaheim based performing arts organizations the use of the facility for up to five days annually at no rental charge. Mayor Tait remarked he wholeheartedly supported the extension of a lease that had served Anaheim well with the added programming for the arts and moved to approve Item No. 15, seconded by Mayor Pro Tem Kring. Roll Call Vote: Ayes—5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). Motion Carried. 29. RESOLUTION NO. 2015-202 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a Hotel Incentive Program and determining said D155 action is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060 (c)(3) and not a project under Section 15378. Paul Emery introduced this resolution noting it would establish a citywide program to induce the development of a new upscale hotel market, was being recommended by staff, and had been requested for consideration from the dais. The policy created a level playing field and a clear framework for any developer interested in pursuing an upscale hotel project in Anaheim city limits. Kristine Ridge, Interim Assistant City Manager, reported the program for Council's consideration was not a new concept and for over the past decade Anaheim made efforts to induce the development of upscale, high quality hotel projects that were lacking in Anaheim's inventory. Providing this type of policy would offer a pathway to filling the void of upscale rooms in the city and would enhance Transient Occupancy Tax (TOT) revenues while creating multiple jobs both City Council meeting minutes June 16,2015 Page 22 of 32 in the construction and in the hotel industry and associated increases in both sales and property taxes. She emphasized the preservation and growth of room tax revenue stream was vitally important for the city to be able to provide quality services to residents, businesses and visitors and while the policy was recommended citywide, staff understood that more than likely the interest would be in and around the Resort area, an area that generated 92 percent of the citywide room tax revenues. The program was designed to enrich Anaheim's strong financial standing by incentivizing economic development that in turned supported quality services for the community. She remarked the program was consistent with economic development objectives presented last month in a workshop and required no new city spending as all of the assistance was proposed based on future room taxes generated by the new hotel projects and would only serve to improve Anaheim's financial footing. She emphasized that the resolution was for the adoption of a city policy only and any resulting economic assistance agreements would be brought back for council consideration at a public hearing. Community and Economic Development Director John Woodhead presented the salient features of the hotel incentive program as follows: • Economic assistance would be provided in the form of incentive payments under an operating covenant agreement between the city and the owner/developer consistent with the hotel incentive program. • Each operating covenant agreement would be prepared by staff for Council consideration at a noticed public hearing under the requirements of AB562. • Incentive payments would be equal to 70 percent of the project generated TOT for new luxury hotels and 50 percent of the project generated incremental TOT for the renovation of existing hotels into luxury hotels, both for a period of 20 years. • The continuous operation of a luxury hotel in accordance with AAA Four Diamond hotel criteria or better would be required for receipt of incentive payments. • Luxury hotels were defined as hotels providing the physical features and operational services which met or exceeded the rating criteria established for AAA Four Diamond hotels or higher by the American Automobile Institute. By way of guidance, minimum development standards for AAA Four Diamond hotels and a list of the brands and flags that typically qualified for AAA Four Diamond status were detailed. • Owners or developers of luxury hotels would be required to expend minimum shell costs of not less than $225,000 per guestroom for new hotels and $100,000 per guestroom for new or renovated hotels. Owners/developers of luxury hotels would be required to expend minimum furniture, fixture and equipment costs of not less than $30,000 per guestroom for new and renovated hotels. • Operating covenant agreements would contain an obligation of the owner/developer to comply with prevailing wages and to use good faith efforts to hire local residents and contract with local subcontractors, suppliers and other businesses. • Operating covenant agreements would contain an obligation of the owner developer to ensure that all journeyman and apprentices comply with all state labor laws and that the workforce met a specific ratio of apprenticeship program graduates and OCEA certified workers, as well as contain at least one site safety manager with OCEA 30 hour certification. • The hotel incentive program would be available on a citywide basis. Mayor Tait requested clarification on the average daily room (ADR)for a Four Diamond hotel versus that of the new Springhill Suites, a recently constructed three star hotel. Mr. Morton responded that the luxury hotel would be about $240 or$250 a night with Mr. Baltin of PKF City Council meeting minutes June 16,2015 Page 23 of 32 Consulting responding he would "guesstimate" the Springhill Suites ADR room rate at about $125-$130. Mayor Tait remarked his problem was with the 70 percent TOT rebate going back to the developer and the city retaining only 10 percent and he did not think the numbers worked to the city's advantage. With a three diamond hotel, the city would retain 100 percent of the TOT versus a few dollars from the four diamond hotel. Ms. Ridge replied that typically a four diamond hotel, was a steel structure, contained twice the number of rooms than a wood framed two or three diamond hotel and that the analysis of the two hotels showed a four diamond facility on a 2.5 acre site bringing in more than triple the amount of TOT because there were more rooms generating room tax. Additionally, the facility would generate more sales and property taxes. Mayor Tait remarked that the O'Connell hotel with 880 rooms was a similar situation, although there was no requirement in the subsidy agreement for the hotel to be a four diamond facility. He added that in the O'Connell situation, the city would write a check each year in the amount of $8 to $10 million to the developer. He indicated this might work out if the O'Connell hotel did not take rooms away from existing Anaheim hotels or if nothing else was built for the next 20 years; however, if either of those events occurred, this business model would not work and the city would actually have made less revenues than it currently did. He added when the city returned 70 percent of the TOT or$158 million over 20 years, how could the remaining ten percent be anywhere near the $450 million figure that staff indicated the city would earn over the assistance period. Mr. Woodhead responded that he revisited that report and found that $485 million figure was based on two components: all of the TOT generated from the hotels over the assistance period (2016 through 2042), a 26 year period because while the assistance period was 20 years, staff assumed the second hotel would lag the first hotel by six years so there would be a period of time when the first hotel assistance would end and the city would be receiving 100 percent of the TOT generated, while the second hotel was still under the subsidy agreement. The second point of that analysis, he explained, was that existing hotels would be able to raise their average daily room rate because the neighborhood would be improved and residents could take advantage of the amenities that four diamond hotels brought to the Resort. He stated the PKF analysis was based largely on what had been proven at LA Live after the JW Marriott was built. He added that the $484 million figure did not reflect what the city would receive in revenues but was simply the total TOT generated over the 26 year subsidy period because those hotels were being constructed. Mayor Pro Tern Kring stated she was in full support of this policy that included language in support of hiring locals and veterans. She remarked that the luxury hotel incentive program would address the needs of larger conventions and trade shows coming to Anaheim because of the expanded Convention Center and the additional rooms needed because of concurrent trade shows. For the O'Connell hotels, Ms. Kring emphasized the hotels must be rated by AAA as four-diamond hotels in order to get the subsidy. Addressing the O'Connell agreement, Mr. Morton clarified that built into that agreement were requirements for certain minimum building costs and FF&E (furniture, fixture and equipment) that was required to be expended to get to the physical standards for a AAA four-diamond project but a rating from AAA was not necessary. For the current upscale hotel incentive, the requirements were handled slightly different requiring hotels to have or exceed rating criteria for AAA Four Diamond hotels or better and a list of brands and flags that typically qualified for AAA Four Diamond status was included. Mayor Tait responded that there was no requirement in O'Connell's agreement stating the hotel must have a AAA four diamond designation and O'Connell would still receive the $158 million City Council meeting minutes June 16,2015 Page 24 of 32 subsidy. Council Member Kring asked if that agreement could be revised as she had been under the impression the hotel must be built to a Four Diamond status. Mr. Morton responded that staff had been looking at this issue for the better part of three years and the argument in favor was if they had a AAA flag, then the rating was obvious because a third party had designated it. On the other hand, it was difficult to induce development if the developer/owner was beholden to get the AAA rating. In the end, he stated the city was after quality and recognized that quality could be gained with the minimum development standards that were taken from the AAA guidelines. Council Member Murray emphasized that this action would create a policy that was in some aspects an expansion of the existing incentive policy as it contained local hire provisions and quality jobs and offered the opportunity citywide. She emphasized there was a value in having four star properties in Anaheim and the components as outlined by staff were what was required for four diamond hotels, with a list of definitions applicable to all hotel rating agencies. She added that the transient occupancy subsidy was necessary to compete with other cities, including nearby Garden Grove, pointing out Los Angeles and San Diego had subsidies at 100 percent for 25 years or more. She believed this policy would ensure immediate revenue to the city while generating long-term economic security for the future, and appreciated the time and attention staff put into creating it. Council Member Murray also mentioned that Council Member Vanderbilt had suggested looking at economic incentives for grocery stores in the downtown and west end that had a difficult time attracting grocery retailers, remarking she would be supportive of this effort as well. Mayor Tait inquired if there were any owners/developers who had approached the city regarding development of a four diamond hotel with Mr. Morton responding he had been approached by owners of sites who were interested in such a policy. Mayor Tait stated he understood that LT Global, a Chinese developer, had talked about using their land near the stadium site for a multi- story hotel, and that they were not looking for a subsidy as it made sense to build a luxury hotel on that site. With this policy in place, he emphasized, it would cost the city tens, if not hundreds of millions of dollars and if the average daily rate ended up being $180 because this policy did not guarantee a higher room rate, those developers would get their TOT rebated in either case. Mr. Emery responded the rebate was based on revenue generated, and if the room rate was $180, it would generate less TOT and of that amount, 70 percent would be reimbursed. Mayor Tait pointed out if the competing luxury hotel charged $180 per night, then Springhill Suites at a lesser rate would lose clientele that would book the luxury hotel instead. Mr. Emery added that he had not seen any concrete proposal from LT Global regarding a potential four diamond hotel, noting that it was outside the Resort district so the incentive formula would be different, a 70 percent rebate, 20 percent to LPMR to pay off the bonded indebtedness for improvements along Katella and Harbor Boulevard, and 10 percent to the city. Along with that were higher property taxes associated with a four diamond property, increased sales taxes, and the creation of jobs. Mayor Tait disagreed with the overall analysis, stating there might be a lot of four diamond hotels taking advantage of this policy and with the expanded Convention Center costs to be paid for by incremental new TOT, he did not see how there could be enough new revenues to pay for the bonds. Mayor Tait emphasized the following points: that ARTIC revenue projections had not worked out as anticipated which resulted in a shortfall for ARTIC operating costs with ATID stepping in to cover two years of the shortfall or$4 million; a Convention Center expansion which cost $15 million for 30 years when it was projected to increase TOT revenues by $6 million annually; a proposed street car that would cost $4 to $10 million annually to operate, not to mention its capital costs and a City Council meeting minutes June 16,2015 Page 25 of 32 GardenWalk hotel subsidy that would rebate$8 million annually from the general fund once the hotels were built. He believed this policy would only exacerbate the problem and made no sense to implement. Mayor Pro Tern Kring responded that tonight's action would only create a policy and should any developer want to build a four-diamond hotel, there would be a public hearing and at that time, the city could determine whether or not a subsidy was needed. She added this was a public/private partnership, a concept that began many years ago to build for the future, not for today. MOTION: Mayor Pro Tem Kring then moved to approve RESOLUTION NO. 2015-202, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a Hotel Incentive Program and determining said action is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Sections 15060(c)(2) and 15060 (c)(3) and not a project under Section 15378, seconded by Council Member Murray. DISCUSSION: Council Member Vanderbilt remarked there were many hotels in the city close to 500 rooms with GardenWalk proposed at 880, asking should the resolution have a higher threshold of rooms as part of the policy. Mr. Morton replied there were a number of boutique products entering the market with 250 to 300 rooms that were four-diamond quality and capturing that niche was desirable but larger four-diamond structures were desired as well. Mr. Vanderbilt requested clarification regarding the GardenWalk potential litigation, with City Attorney Michael Houston responding there was still an appeal period and the threat of litigation continued under an appeal and under the Force Majeure clause in the existing agreement, the time limit for performance was excused by the time of delay for the litigation and appeal, and the city was bound to provide the extra time in which to perform the terms of the agreement. Council Member Murray inquired if all city debt obligations, including the Convention Center and resort bonds, were factored into the FY 2015/16 budget with Mr. Emery responding in the affirmative and adding that a five year projection that included all costs associated with long- term indebtedness as well as anticipated revenues and expenditures was part of the budget also. She pointed out that with all those encumbrances, the city would enjoy prosperity because of the strength of the Resort area and the other economic generators in the city. Mr. Emery concurred and answered in the affirmative that tonight's action was the right policy to ensure Anaheim's long-term financial security. Council Member Brandman stated the reconstituted hotel incentive program capitalized on the strengths to encourage development of world class accommodations that Anaheim needed and deserved. He was supportive of a policy that enhanced economic growth, hiring locally and highly skilled workers which would also have no fiscal burden on residents and businesses. Mayor Tait disagreed, remarking if the city kept giving back TOT to developers, the revenues needed for police, fire and general employees would not be there for them in the future. Council Member Vanderbilt thanked staff for their time and efforts and for those who spoke in favor or against this policy, remarking it gave added perspective for him to consider. He indicated when Council first had this discussion on a number of initiatives proposed in May, there were four areas of focus; i.e. the industrial area to the east, West Anaheim, the Central District and upscale hotels; and he had hoped that all four of those measures would be considered at the same time. His preference was to have other economic programs come on City Council meeting minutes June 16,2015 Page 26 of 32 line first that were more tangible for Anaheim's citizens and could directly benefit them instead of supporting a policy that only benefitted a select few. Roll Call Vote: AYES—3:(Mayor Pro Tem Kring and Council Members Brandman and Murray) NOES—2: Mayor Tait and Council Member Vanderbilt. Motion Carried. PUBLIC HEARING: 30. Continued public hearing on the fiscal year 2015/16 budget, budget appropriations limits D106 for the City and its Community Facilities Districts, and changes in various fee schedules. At 8:13 P.M., Debbie Moreno, Finance Director, offered a brief recap of the proposed FY 2015/16 City of Anaheim Budget, reporting it totaled $1.7 billion and emphasized Council's priorities of public safety and neighborhoods and maintaining service levels including the enhancements adopted last year. The proposed budget represented an increase of two percent from FY 2014/15 adopted budget, with the largest portion belonging to the Enterprise Funds at nearly 50 percent. The City's base revenues totaled $286.2 million with a proposed surplus of $10.6 million and with that, staff was able to recommended $10.4 million for additional service enhancements that would directly benefit the community. The proposed enhancements were divided into on-going services and one-time improvement projects and the remaining surplus at $200,000 increased the reserves for the general fund. Based on the five year plan, she reiterated, staff was recommending $6.2 million in on-going public safety, street improvements, and park and neighborhood enhancements: For Police, funding was proposed for Public Safety Career Pipeline and the addition of ten new police officers which represented the second year of Council's initiative to add 40 police officers over 4 years. Fire & Rescue funding was for the addition of three firefighters at Station 7, funding for a new hire training academy, and the continuation of the Community Care Response Unit Pilot Program. For street improvements, additional funding opportunities would address aging infrastructure and long overdue repairs to streets, sidewalks, curbs and gutters. Community Services funding was proposed to expand the mobile after-school program approved last year for once a week in ten neighborhoods to twice a week and adding daily after school recreation programs in 10 parks. Additionally, $4.2 million in onetime projects and purchases would benefit parks and neighborhoods, street improvements and public safety. Community Services one-time enhancements include installation of NC and heating in the Peralta Park Recreation Building and funds to repair the damaged drainage at Olive Hills Park. Also included would be the continuation of Park Refresh projects including adding pathway lights, repairing or replacing playground surfaces, and making necessary turf/irrigation improvements. Public Works funding would include 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 include $200,000 for signal preemption, a new Type III fire engine for wildland events, and funding for fire clearance at Pelanconi and Deer Canyon Parks. Annual Appropriations Limits: In addition to the budget, Ms. Moreno reported Council would also consider the annual appropriations limits for fiscal year 2015/16 for the City and each of its five Community Facilities Districts ("CFD"), in accordance with the California state constitution. City Council meeting minutes June 16,2015 Page 27 of 32 She noted the limits were based upon the appropriations limits for fiscal year 2014/15, adjusted for the growth factors in City population, and California per capita personal income growth. Also, debt service has been paid in full for the Anaheim Hills Community Facilities Districts (Sycamore Canyon, The Highlands and The Summit) and no further assessments would be levied, but the City still had an obligation to establish an appropriations limit as long as the districts legally existed. She added the expenditures in the proposed budget continued to be substantially below the expenditure limits established by the state constitution. Proposed Fee Changes this year include fees for City Attorney, Convention Sports and Entertainment, Community Services and Public Works as follows; • Fees for the City Attorney would allow the Prosecution Division to recover all or a portion of actual costs associated with reproduction requests from defendants; • Increased rates for personnel, technical services and facility equipment rates were proposed by the Convention, Sports and Entertainment Department in an effort to develop fair and equitable charges consistent with other comparable facilities (Revenue Impact: $60,000) • The Community Services Department was proposing new and increased fees in their Recreation and Human Services Division (fees include a wedding package fee at the Oak Canyon Nature Center, Adult Flag Football fee, a patio rental fee at Brookhurst Community Center, a movie screen and projector rental fee at Pearson Park Amphitheatre and facility rental fees at the new Miraloma Family Resource Center (Revenue Impact: $4,000). • Public Works was proposing increased Impact fees, developer fees and solid waste collection fees (Revenue Impact: Impact Fees $17,000; Solid Waste Fees $1,253,645; Developer fees $185,000) To summarize, Ms. Moreno reported this general fund budget invested an additional $10.4 million in the community for parks and neighborhoods, street improvements, and public safety, a reflection of the priority given to Anaheim residents. The budget was structurally balanced where ongoing revenues exceeded on going expenditures and the five year plan included increasing costs for funding long-term obligations including pensions and retiree medical costs, ensuring the city could afford services today and into the future. She noted the funding status of pension plans improved from approximately 64% in 2010 to an estimated 74% at the end of June, 2014. She added the retiree medical plan was closed to new participants and those non- sworn personnel hired after January 1, 1996 and sworn personnel in late 2001; in contrast to many agencies that had little to nothing set aside;Anaheim being 32 percent funded with approximately $82 million set aside. Ms. Moreno indicated that both Fitch and Standard and Poor's rating agencies reviewed the City's General Fund credit in November of 2014 and affirmed the AA ratings which indicated that the City had a strong capacity for financial commitments and a low risk of default. Finally, she reported the advisory body to the City Council in matters pertaining to the short and long range financial planning and funding of City activities unanimously supported the City's Proposed FY 2015/16 Budget. Mayor Tait opened the public hearing for comments. City Council meeting minutes June 16,2015 Page 28 of 32 William Fitzgerald, Anaheim HOME, objected that the seven items for adoption of this budget were considered during one hearing, negating the public's opportunity to speak on each item. With no other comments offered, Mayor Tait closed the hearing. Council Member Murray thanked staff for a thoughtful budget that showed investments being made citywide and a financial outlook that was extraordinary. Council Member Vanderbilt inquired whether the solid waste franchise agreement reflected an increase based on the CPI and whether it was necessary for Council to weigh in on that increase. Ms. Meeks responded that the fee charged to residents and businesses for collection and disposal of waste was a fee with a number of obligations included, one of which was paying the trash hauler that picked up and disposed of the waste that had a CPI cost index tied to it, and an obligation to pay the disposal fee at the county site, a fee that was not a pass through. The agreement with Republic Services, she explained, did not require the city to raise fees as a matter of fact, and over the last five years, fees were only raised 1.9 percent because the city had a healthy fund balance and was able to keep fees low during the recession. She added it was time to get back on a structural program for the long-term viability of the system, and that the fee was now being increased. She further added there were obligations to notice residents under 218 legislation, so there was a process to follow to recommend increases to the public, and it was not an automatic increase. Mayor Pro Tern Kring stated she would support the budget in its entirety remarking there was something for everyone in each part of the city, thanking staff for their efforts and for providing transparency within the document. Mayor Tait stated he would support approval of the budget but was concerned about the long term health of the city, particularly after passage of the hotel initiative. He added he would abstain on the resolution related to the Highlands CFD due to a potential conflict of interest. MOTION: Council Member Murray moved to approve the fiscal year 2015/16 budget, budget appropriations limits for the City and its Community Facilities Districts, changes in various fee schedules and the service enhancements presented by approving the below listed resolutions, seconded by Council Member Brandman. Prior to announcing the roll call vote, City Clerk, Linda Andal, reported related to Resolution G, waste and sanitation fees, that 120,123 public notices were mailed and to date, 37 written protests were received by the City Clerk's Office. She advised that the number of written protests did not constitute a majority and therefore Council was permitted to act on Resolution G. Roll Call Vote: AYES—5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt.) NOES —0. Motion Carried. A. RESOLUTION NO. 2015-203 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the fiscal year 2015/16 budget. B. RESOLUTION NO. 2015-204 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the annual appropriations limit for the fiscal year 2015/16. City Council meeting minutes June 16,2015 Page 29 of 32 RESOLUTION NO. 2015-205 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 1989-1 (Sycamore Canyon) annual appropriations limit for the fiscal year 2015/16. RESOLUTION NO. 2015-206 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 1989-2 (The Highlands) annual appropriations limit for the fiscal year 2015/16. Mayor Tait declared a conflict on Resolution No. 2015-206. Motion by Council Member Murray to approve, seconded by Council Member Brandman. Roll Call Vote: AYES—4: (Mayor Pro Tem Kring and Council Members:Brandman, Murray and Vanderbilt.) NOES —0. ABSTENTION— 1:Mayor Tait Motion Carried. RESOLUTION NO. 2015-207 A RESOLUTION OF THE CITY COUNCIL OF THE CITY ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 1989-3 (The Summit) annual appropriations limit for the fiscal year 2015/16. RESOLUTION NO. 2015-208 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 06-2 (Stadium Lofts) annual appropriations limit for the fiscal year 2015/16. RESOLUTION NO. 2015-209 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 08-1 (Platinum Triangle) annual appropriations limit for the fiscal year 2015/16. C. RESOLUTION NO. 2015-210 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the schedule of rates, fees and charges for rental of space, parking and for certain labor, equipment and services at the Anaheim Convention Center. D. RESOLUTION NO. 2015-211 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fees to be charged for Community Services Department programs and services commencing on September 1, 2015. E. RESOLUTION NO. 2015-212 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fees to be charged for certain services provided by the Prosecution Division of the City Attorney's Office. F. RESOLUTION NO. 2015-213 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a new fee schedules for the Public Works Department of the City of Anaheim. G. RESOLUTION NO. 2015-214 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a revised schedule of sanitation fees and charges for wastewater and solid waste and rescinding Resolution No. 2013-105 and determining such actions are exempt from the California Environmental Quality Act pursuant to Public Resources Code Section 21080(b)(8) and Guideline Section 15273(a). City Council meeting minutes lune 16,2015 Page 30 of 32 PUBLIC HEARING: 31. This is a public hearing to consider a resolution confirming the diagram and assessment and providing for the levy of the annual assessment in and for the Anaheim Resort T106 Maintenance District. At 8:48 P.M., the public hearing on the Anaheim Resort Maintenance District was considered. Dan Oregel, Public Works Department, reported that in 1999 Council approved the formation of the Anaheim Resort Maintenance District based upon a vote to do so by the property owners in the area known as the Anaheim Resort. Property owners voted to levy an assessment upon themselves to insure the long-term quality of maintenance, repair, and replacement of Resort area public improvements consistent with the operation of a unique visitor destination area. On May 19, 2015, Council initiated the FY 2015/16 annual levy proceedings by accepting the Assessment Engineer's Report and scheduling this public hearing. Mr. Oregel indicated that a Revised Assessment Engineer's Report dated June 8, 2015 was attached and incorporated one parcel that was missing from the May 8th preliminary report. The Assessment Engineer's Report stated the levy would generate about $4.4 million which was deposited into the Resort Maintenance District fund specifically for the operation and maintenance of the District. He added the Resort District advisory board reviewed and approved the levy and the proposed budget and that following City Council's approval of this resolution, the assessments would be confirmed that provided for the levies of each parcel within the District. Mayor Tait opened the public hearing. William Fitzgerald, Anaheim HOME, stated that although Disneyland received 95 percent of the revenues in the Resort area, they paid less than half the maintenance fees because the levies was biased in their favor. Mayor Pro Tern Kring remarked Mr. Fitzgerald had been demanding that Disney fireworks be terminated for years and was the origin of his ongoing commentaries against the city, her and others. With no other comments offered, Mayor Tait closed the public hearing. Council Member Vanderbilt requested clarification on the use of frontage property as a determinant for the maintenance district assessment. Natalie Meeks remarked the formula used to apply the assessment was developed at the time the assessment district was created and took into account several different components to try to provide equity across the Resort area. Disney properties fronted Harbor, Disneyland Drive and Ball Road and the frontage calculation did not favor them in any way. Mayor Pro Tem Kring moved to approve RESOLUTION NO. 2015-215 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM confirming the diagram and assessment and providing for the levy of the annual assessment in and for The Anaheim Resort Maintenance District, seconded by Council Member Murray. City Council meeting minutes June 16,2015 Page 31 of 32 Roll Call Vote: AYES —5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt.) NOES —0. Motion Carried. REPORT ON CLOSED SESSION ACTIONS: None COUNCIL COMMUNICATIONS: Mayor Pro Tem Kring highlighted the life and achievements of Stan Pawlowski and requested the meeting be adjourned in his memory. She spoke of the Public Utilities Save Water Expo that was held at ARTIC and drew 1,200 people concerned about the drought and appreciative of information from local and regional conservation experts. She reported the Anaheim Achieves Film Festival celebrated their 15th anniversary and to date had served 7,000 of Anaheim's youths who showcased their filmmaking skills and creative talents each year. She spoke of the Cops 4 Kids graduation, the scheduled Fall Festival fundraiser to be held at Tony's Original Deli on June 24th, and her nomination of Shirley McCracken to the OCSD Walk of Fame. Council Member Vanderbilt congratulated all Anaheim High School graduates and thanked his aide, Helen Meyers, for coordinating tickets to the Stadium or arena for the top two graduates of each high school. He announced the Job Fair on June 17, remarking he was looking forward to participating, and spoke about his interest in receiving information on a stimulus program for quality retail stores in the city. Council Member Murray announced the Job Fair on June 17th with her co-chair James Vanderbilt, stating she expected 4,500 job seekers and around 250 employers from across the region participating. She added there was emphasis placed on veterans transitioning back into the workforce with a number of specialized programs offered throughout the day. She spoke of her attendance at the Flag Dag festivities this past weekend in the Colony, and World Refugee Day held at Pearson Park. She also attended the Association of California Cities Orange County Infrastructure Summit to talk about how to improve infrastructure in southern California and encouraged all to attend the Fall Festival fundraiser at Tony's Deli on June 24th Council Member Brandman spoke about his attendance at World Refugee Day at Pearson Park and the Flag Day Celebration and to the loss of Stan Pawlowski. Mayor Tait reported on his attendance in Washington, DC for the Mayor's Conference to discuss and support a transportation bill, as well as his attendance at a Yale CEO conference in New York where national Mayors were invited to discuss national issues, an event he paid for on his own. He also spoke about his attendance at the Southern California Technical Institute graduation to give the commencement address and congratulated all Anaheim High School graduates. He and his wife had participated in the Taylor Wish 5K to raise awareness and funds to fight pulmonary hypertension, and announced the arrival of the Dalai Lama on July 5 to celebrate compassion and kindness. He spoke about his friendship with Stan Pawlowski and how involved he was in the community. City Council meeting minutes June 16,2015 Page 32 of 32 ADJOURNMENT: At 9:12 P.M, with no other business to conduct, the June 16, 2015 meeting was adjourned in memory of Stan Pawlowski. rpetfully submitted, /"WilA.0 i _. I _ ....I Linda N. Andal, CMC City Clerk