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2005/06/14ANAHEIM, CALIFORNIA -CITY COUNCIL REGULAR ADJOURNED MEETING ~ June 14, 2005 The City Council of the City of Anaheim met in adjourned regular session for the meeting of June 7, 2005 at 2:12 p.m. in the Council Chambers of Anaheim City Hall, 200 South Anaheim Boulevard for the Affordable Housing workshop. PRESENT: Mayor Curt Pringle, Council Members: Richard Chavez, Lorri Galloway, Bob Hernandez and Harry Sidhu. STAFF PRESENT: Dave Morgan, City Manager, City Attorney Jack White, and City Clerk Sheryll Schroeder. A copy of the agenda for the meeting of the Anaheim City Council was posted on June 10, 2005 at the City Hall outside bulletin board. CONTINUED FY 2005/06 BUDGET HEARING: PUBLIC WORKS DEPARTMENT Gary Johnson, Director of Public Works/City Engineer presented an overview of the department's budget detailing the operations of six divisions: design services, field services, public works operations, development services, financial and administrative services and traffic and transportation services. He indicated two new positions would be added to support the increased workload associated with the Platinum Triangle, Mountain Park, redevelopment and infill development and expected the increased revenues generated from development-related service fees to offset the cost of the positions. He highlighted the department's accomplishments for the year and the significant work plans projected for next year. He remarked much time had been allocated this year to post-disaster recovery planning related to Ramsgate properties and Circle Haven/Maple Tree areas and expected to update Council on those efforts. Mr. Johnson also identified completed capital projects and the noteworthy projects scheduled for next year. He pointed out Orange County Transportation Authority (OCTA) board would consider a number of competitive projects on June 27th and OCTA staff expected 58 arterial highway regional projects would be recommended totaling over $10 million for the next two years and he had been working with the City Manager's office to ensure all matching funds were found for those projects to come to Anaheim. Council Member Sidhu noticed the budget summary reflected Public Works operation from 03/04 to 04/05 had increased and was continuing in that trend. Mr. Johnson replied that as a budget balancing strategy one year, the department did not include the normal fleet replacement and were now back on schedule with $15 million of fleet purchases. He reported two new operations had been added to the department as well, traffic signal work and maintenance of the public right-of- ways. Council Member Sidhu commented there was a decrease of $40 million in capital improvements this year requesting clarification. Mr. Johnson explained there was much fluctuation one year to the next in capital projects and that he would be adding $10 million worth of projects by amending the budget when the OCTA grants came in as those projects did not always align with ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 2 the budget cycles. He added that once grant funds had been secured, he would return to Council with a budget amendment. In addition, he commented, the department had some multi-year projects that would span three, four and five years which could reflect carryovers or rebudgeting in some cases. Council Member Sidhu asked the Finance Director how far off would the Public Works adopted budget of $188 million be to the actual figures of 04/05 and Mr. Sweeney replied it would be substantially under the adopted figure by approximately $40 million dollars. Council Member Sidhu asked what would happen to the $40 million dollars in savings and Mr. Sweeney responded it stayed in the fund balance in their respective funds, whether it was Measure M or Gas Tax and would be reappropriated by City Council as part of the reappropriation process. Council Member Galloway questioned the difference on the proposed budget of 05/06 versus last year related to federal highway reimbursements. Doris Roush, Operations General Manager, stated it was a matter of timing for receipt of the revenues versus when the project was scheduled. In this instance, the difference reflected a carryover for the Gene Autry project. Council Member Hernandez asked if there was a special category on the carryovers. Bill Sweeney remarked there was not, that the budget was amended by Council every September and Public Works would request to reappropriate funds that were not spent. Dave Morgan, City Manager, pointed out the underexpenditures did not mean there were savings, it meant projects were not completed in that time frame and therefore the dollars were not expended, but typically the projects had been approved by Council and would need to be carried into a different fiscal time frame. Mr. Sweeney pointed out in the absence of a contract or legal appropriation, at midnight on June 30, all appropriations expired unless legally encumbered by the end of the fiscal year. Council Member Hernandez suggested footnoting the budget documents so the reader could identify a carryover from a newly budgeted item and Mr. Sweeney concurred. COMMUNITY SERVICES Terry Lowe presented the Community Services Department budget of $43.5 million. He advised 23 percent was in aggressive capital for parks, recreation facilities and library development and almost 70 percent equally divided between parks, library, recreation and human and neighborhood services divisions, nine percent for golf and one percent for administration. He highlighted significant accomplishments for the year and pointed to high priority capital projects for the next fiscal year. Council Member Hernandez asked whether the department tracked crowd numbers at the various functions sponsored by the City such as the Fall Festival to determine how many people were being served by those events. Mr. Lowe indicated both the Police Department as well as his staff estimated crowd attendance but unless there were gate fees, true attendance had not been recorded. COMMUNITY DEVELOPMENT Elisa Stipkovich, Community Development Director, stated her department consisted of four divisions: administration, redevelopment, housing and work force development, with a staff of 199 full-time positions. She noted that revenue for next year was projected to be $158.3 million, the majority coming from the federal government and also from local project tax as well as sale of land and interest income. She stated expenditures were also $158.3 million, predominantly in the Housing Authority. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 3 Ms. Stipkovich also addressed the impact of extending the redevelopment project areas for an additional 10 years emphasizing the 20 percent setaside funds would increase to 30 percent setasides with the total funds available for affordable housing over the life of the project approximating $267 million after debt service. Council Member Sidhu asked what the $3.7 million of miscellaneous funds referred to and Ms. Stipkovich reported there were some pass through agreements in which sales tax flows through the Agency and Ms. Stipkovich remarked she would provide detail to Council on those funds. Council Member Sidhu also requested details on the workforce development programs. Ms. Stipkovich explained the $3 million came from the State but the original source was the federal government and there were strict guidelines as to how the funds could be spent. She noted the programs usually involved training for adult dislocated workers, youth programs and youth jobs, and use of the services of the one-stop center. She also indicated that besides training, child care and transportation was available. Council Member Sidhu asked how they determine if the programs were worthwhile and Ms. Stipkovich remarked there was a recordkeeping system for any individual receiving funds from the programs as to whom became employed, how long jobs were retained and at what salary. Council Member Hernandez requested clarification on the WARN system to mitigate impacts from plant closings; Ms. Stipkovich remarked that any employer closing a plant with more than 150 employees must notify the local government and workforce development staff then made themselves available to host assessments, provide training, and help those individuals to find work. Ms. Stipkovich detailed the numerous underway and completed redevelopment projects plus those scheduled for the coming fiscal year in the different areas of the City. Council Member Galloway asked for funding details on the homeless programs with Ms. Stipkovich replying she would provide that information. Council Member Sidhu noticed the difference in cost for the parking structure in the central district and the downtown parking structure. Ms. Stipkovich remarked the structure in the downtown area would serve the CIM development tenants and the general public and would be built with redevelopment funds, owned by the City with the developer owning the residential above the parking structure. The deal struck with CIM was for the City to build the parking structure as the economics did not work for the developer but the City would then receive participation in the income stream and upon sale of all four buildings. She added a good portion of the parking on Parcel A would be for public parking for the museum and cultural center and only a portion would be for the residential buildings. Council Member Sidhu asked who maintained the structure to which Ms. Stipkovich replied the operation and maintenance was privatized and the users were also assessed and would pay a portion to maintain the facility. She emphasized that because so much of the structure was for public parking, the building was seen as something the Agency should maintain for a period of time to see how things worked out in the downtown area. Council Member Sidhu indicated he was uncomfortable having the Agency oversee the maintenance. Ms. Stipkovich stated all costs were reassessed back to the users but that some day the Agency might want to consider selling the structure in the future. Council Member Hernandez asked if there was a penalty for keeping redevelopment funds idle and was that a monitoring function of the State. Ms. Stipkovich stated the Agency did not automatically receive property tax, an Agency must submit a state of indebtedness to show the funds were needed and if there were no obligations, an Agency would not be entitled to funds. Her ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 4 department stayed on top of identifying properties and putting those funds to work and she noted the amount of assessed value would then create the revenue stream for the future. Council Member Galloway remarked that last year the budget showed incentives for affordable housing at $1.5 million but that nothing was budgeted for housing assistance in the next fiscal year. Ms. Stipkovich remarked those were solely HOME funds and housing assistance would be reflected in another fund. At 3:00 P.M., Mayor Pringle adjourned the June 7, 2005 regular adjourned meeting to call to order the June 14, 2005 Anaheim City Council meeting. PLANNING DEPARTMENT Sheri Vander Dussen, Planning Director, stated the department consisted of three divisions: building and geographic information systems group, community preservation and licensing, and planning services. She remarked her budget eliminated two positions and added an accounting technician to manage the citywide collection of development fees. She reported there were minimal budget increases with most funding coming from development fees, redevelopment, utilities, CDBG funds and the General Fund. She detailed the important accomplishments of the department and highlighted what was in store for the next fiscal year. She also recognized the three awards received by the department this fiscal year. Mayor Pringle asked for discussion on fee structure as it related to appellants. Currently he indicated the fee was based on time and service provided pointing out an appellant could get stuck with paying a larger appeal fee imposed by staff negotiations with the project applicant. Ms. Vander Dussen remarked that currently if an individual appealed a project, a deposit of $2,300 was required and if additional time was necessary for the process, the appellant would have to replenish that amount. She indicated staff proposed the appellant pay the initial deposit and receive a refund if warranted, otherwise any additional costs over the deposit amount would be the applicant's s obligation. Mayor Pringle felt the $2,300 was too costly particularly for a small project and asked if a varying scale could be applied. Mr. Morgan remarked that the fee could be based on project valuation and suggested choosing a temporary appeal fee and having staff return with a recommendation for change. Mayor Pringle asked staff to be ready to present a lower appeal fee when the item was before Council at the end of the budget hearings. VISITORS AND CONVENTION BUREAU Charles Ahlers, Anaheim Visitors and Convention Bureau, listed the department's priorities as increasing funding and visitor spending, expanding business space, providing greater business opportunities for members and acting as an advocate. Mr. Ahlers described projected revenues and expenditures for the coming fiscal year. He provided details on efforts to promote more tourism, and increase visitor-spending. Council Member Galloway asked how the City compared to Las Vegas as a resort destination. Mr. Ahlers replied Las Vegas convention center received $110 million in business while Anaheim received $8 million; although San Diego at $12 million and Los Angeles at $16 million made for better comparison. CONVENTION, SPORTS AND ENTERTAINMENT Greg Smith, stated his department consisted of four operating divisions, the Anaheim Convention Center, Angel Stadium, Arrowhead Pond and the Grove with a total appropriation of $56,075,000. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 5 He offered details on each entertainment venue, providing funding information as well as expenditures and capital improvements for the coming year. He remarked the travel industry was experiencing tremendous grow and competition was strong. He commented the exhibit hall occupancy rate was at the highest level since the expansion, at 82 percent occupancy, pointing out the space had grown by 36 percent due to the expansion. He noted the travel industry experienced growth and the competition was strong and the convention and trade show market had changed. To bolster attendance, meeting planners added educational tracks and industry certification programs to run concurrently with the industry's trade shows creating the need for more meeting rooms. He explained that a plan had been developed to double the amount of meeting rooms in the Convention Center which would be paid for by the hotels through some type of assessment. Council Member Sidhu asked if the convention center had been running a deficit and if so, for how long. Mr. Smith indicated there were no losses for the Convention Center and the reason there was a draw on the fund balance in the current year and projected for the next fiscal year was to cover the capital projects. Mr. Smith indicated the Center had been doing well since the mid-90's and the reserve balance had grown from zero to $16 million with the draw for 05/06 being $6 million for capital improvements. Council Member Sidhu asked what was anticipated by building the meeting rooms and Mr. Smith indicated it would bring in more business in a more competitive market. Council Member Sidhu asked what the projected additional business would be and Mr. Smith indicated the improvements would be an investment to develop a higher income stream through higher paying tenants in the facility. Mayor Pringle remarked the reason why cities support convention centers was not because those facilities were financially successful; it was because the conventions drew visitors that stayed in hotels to generate bed tax and other visitor-serving services. Council Member Sidhu asked for clarification on the Stadium operation; Mr. Smith noted the revenue was projected at $4.6 million for 05/06 with expenditures at $5 million, of which operating expenses totaled $2.2 million. This year $400,000 would be transferred from the reserve fund to cover the losses. POLICE DEPARTMENT John Welter, Police Chief, stated his department was comprised of four divisions with over 560 employees and a civilian workforce of 196. He noted five new police officers had been added, and the department had added additional air support with the purchase of a new helicopter. He provided details on the funding breakdown and the operating expenses. In addition, he explained the methodology to have as many as 14 or 15 new field officers by separating trainee's costs from those of full-time officers. He noted the department reflected 345 officers at July 2005 and could be at 361 in June 2006 as long as the department remained aggressive with the recruitment and had no unplanned losses due to retirement of injuries. He listed the accomplishments for the previous year and detailed the challenges facing the department for the coming year. Dave Morgan added the departmental presentations were concluded for the budget hearing and Council could consider a responsible budget focusing on concerns of the community, addressing capital requirements and continuing to emphasize public safety, economic developments and maximizing city assets. He noted the Budget Advisory Commission recommended adoption of the budget at its May 18, 2005 meeting. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 6 Council Member Chavez asked what percentage of Transient Occupancy Tax (TOT) revenues came from motels being used as family living centers. Mr. Morgan indicated he could provide studies on that matter but the City's analysis indicated those funds were actually coming from those properties functioning as a short-term stay. Bill Sweeney remarked the motels would be exempt from paying TOT if residents stayed 30 days or longer. Council Member Chavez asked for a list of those hotels and Mr. Sweeney would provide. Council Member Chavez asked for the detail for the resort debt service of $27 million. Mr. Sweeney indicated those were lease payment measurement revenues for which the City agreed to pay in the late 90's to fund all of the resort area improvements, roadways, parking, convention center, etc., borrowing $510 million. He noted that instead of agreeing to pay the principal and interest on the debt, the City agreed to pay the increment received off the resort and three percent of citywide TOT. The City's obligation was to transfer that measured revenue fora 40 year term debt. Council Member Chavez remarked the General Fund balance had increased and was currently $15 million. Mr. Sweeny remarked revenues had exceeded expenses over the last several years by that amount of money. Mr. Morgan indicated that was one of the reasons the 05106 budget recommended drawing those funds down by $6 million, $3.7 million for the State ERAF and $2.4 million to augment police services. Mayor Pringle asked how the Intergovernmental Relations (IGR) position and the External Affairs position would be structured in the City Manager's budget. Mr. Morgan remarked the IGR and the public information function had been transitioning in response to the higher expectations by the Mayor and Council during that time period, utilizing consultant contracts, and this was an attempt to rebuild that program. He explained there were currently two positions classified in a generic way, staff analyst and staff aide and the intention was to achieve working titles which would be intergovernmental relations officers/analyst, which still have to be finalized. That function would report to the Assistant City Manager to give added emphasis to the position. In addition, he noted, there had been a disconnect between public information efforts and intergovernmental relations efforts and staff was trying to determine the best way to make sure they were in sync with each other. Council Member Hernandez remarked that part of the agreement with Disney Ice was the inclusion of a certain number of community service hours in lieu of land rent and he wondered how the change in ownership impacted that agreement. That answer would be provided to Council. PUBLIC COMMENTS (FY 05/06 BUDGET HEARING). Mayor Pringle opened the public comment portion of the budget hearings. Greg Palmer, president of Anaheim Police Association, supported Chief Welter's budget proposal remarking the department ranked among the top in the safest tourist destinations and among the leaders in solving crime in California. Mayor Pringle continued the 2005/06 Budget Public Hearing to 5:00 P.M ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 7 ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None Mayor Pringle moved to closed session for the following items: CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9) Name of case: City of Anaheim v. Angels Baseball, LP, et al., Orange County Superior Court Case No. 050001902. 2. LIABILITY CLAIM Claimant: United States Environmental Protection Agency Agency claimed against: City of Anaheim At 5:30 P.M., Mayor Pringle reconvened the Council meeting. Invocation: Sr. Chaplain Rossington, Anaheim Fire Department Flag Salute: Council Member Sidhu Presentations: Recognizing members of the Anaheim Angels Little League Team. At 5:38 P.M., Mayor Pringle called to order the Anaheim Redevelopment Agency and Anaheim Public Financing Authority (in joint session with the City Council). ADDITIONS/DELETIONS TO ANY OF THE AGENDAS: There was a clarification to Item 1 on the Redevelopment Agency agenda stipulating the $50,000 for underwriting reflected counsel fees. Item 2 on the Redevelopment Agency agenda and Council Item 23 were removed from the agenda to be submitted at a future date. PUBLIC COMMENTS (ALL MATTERS EXCEPT PUBLIC HEARINGS): William Fitzgerald, HOME, spoke on misuse of public funds. James Robert Reade provided political commentary. Alma Ramirez offered comments unrelated to agenda. Larry Rosenberg, Anaheim Ballet, spoke of recent successes of members of the ballet company Mayor Pringle recessed the Anaheim Public Financing Authority and the City Council sessions at 5:54 P.M. CONSENT CALENDAR: Mayor Pringle removed Items 18 and 31 for separate discussion; Item 20 was removed by Council Member Sidhu. Item 23 had been previously removed from the agenda by staff. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 8 Council Member Sidhu moved approval of the balance of the Consent Calendar Items 6 - 32, seconded by Council Member Galloway to waive reading in full of all ordinances and resolutions and to approve the following in accordance with the reports, certifications and recommendations furnished each Council Member and as listed on the Consent Calendar. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez, and Sidhu. Noes - 0. Motion carried. 6. Reject certain claims filed against the City. C118 7. Receive and file the Budget Advisory Commission recommendation and minutes of the 6105 Housing and Community Development Commission meeting held April 20, 2005. 8. Accept the lowest responsive bid and approve an agreement with Marina Landscape, Inc., 3528 in an amount not to exceed $43,475 (including tax), for an initial two-year period for weekly trash removal services from freeway ramps in the Anaheim Resort District and authorize the Purchasing Agent to exercise up to three one-year renewal options in accordance with Bid #6621. 9. Authorize the issuance of a change order to Clean City, Inc. to increase the amount of 2842 service and the not to exceed cost of the annual purchase order by $100,000, for additional weed abatement and trash removal services for the Public Works Department, Streets and Sanitation Division. 10. Authorize the Purchasing Agent to issue purchase orders, in an amount not to exceed D180 $7,323,800, for the purchase of various vehicles and equipment for City departments for fiscal year 2005/06. 11. Award the contract to the lowest responsible bidder, J. De Sigio Construction, Inc., in the 3529 amount of $990,832, for the Katella Avenue and Brookhurst Street Water Main Replacement project. 12. Award the contract to the lowest responsible bidder, J. DeSigio Construction, Inc., in the 3530 amount of $200,715, for the Orangethorpe Park Main Replacement. 13. Award the contract to the lowest responsible bidder, Specialized Environmental, Inc., in the 3531 amount of $848,075, for the demolition of various locations for the Katella Smart Street Master Plan. 14. Award the contract to the lowest responsible bidder, Inspection Engineering Construction, 3532 Inc., in the amount of $328,571.50, for the Lincoln Avenue signal improvements from Clementine to the East City limits and approve and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 15. Approve the Final Map and Subdivision Agreement of Tract No. 16672 with Hidden Hills 3533 Estate LLC related to property located at 429 South Country Hill Road. 16. Approve the Final Map and Subdivision Agreement of Tract No. 16691 with Arden House 3534 LLC related to property located at 135 South Dale Street. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 9 17. Approve an agreement with Carollo Engineers, in an amount not to exceed $2,000,000, for 3535 engineering services for the Central Anaheim Area Sewer Condition Assessment. 19. Approve a License Agreement with Feedback Foundation, Inc. to utilize the Brookhurst 1445 Community Center on a shared basis to provide a comprehensive meal program, including recreational activities and social services to senior citizens through June 30, 2006. 21. Approve Electrical Utility Agreements to authorize eight electrical contractors to provide 2900 various electrical services, on anon-exclusive basis, to persons at the Convention Center 1549 who require such services in connection with events (S & N Show Service, Inc. dba Action 2807 Electrical; Capital Exposition Electrical Services, Inc.; CES Electrical, Inc.; Convention 2925 Electrical Services, Inc.; Convention Technical Services, Inc.; Edlen Electrical Exhibition 2806 Services of California, Inc.; Hi-Tech Electrical, LLC.; LB Lights West, Inc.). 1550 2805 2804 22. Approve the Fifth Amendment to the Professional Services Agreement with The Planning 2803 Center, in an amount not to exceed $6,000, for technical peer review of the Mountain Park 2802 Specific Plan Amendment EIR and approve the Second Amendment to the Reimbursement Agreement with The Irvine Company, in an amount not to exceed $6,000, to provide for The Irvine Company to reimburse all costs associated with The Planning Center's Technical Peer Review of the Mountain Park Specific Plan Amendment EIR. 23. Approve and authorize the City Manager to execute the Cooperation Agreement dated June 1, 2005 between the City of Anaheim, City of Yorba Linda and the Redevelopment Agency for the Savi Ranch/Weir Canyon Traffic Improvements (related to Agency Item #3; continued from the Council meeting of June 7, 2005, Item #36.1). This item removed from the agenda by staff. 24. Approve the Fiscal Year 2004/05 net write-off of uncollectible customer accounts totaling D128 $411,522. 25. Approve and authorize the Public Utilities General Manager to execute the Specific Utility 3538 Relocation Agreement with the Orange County Transportation Authority. 26. Approve and authorize the Public Utilities General Manager to execute a Utility Pole Lease 3539 Agreement with Southern California Edison fora 25-year term. 27. That the City Council review the need for continuing the Proclamation of the Existence of a D175 Local Emergency by the Director of Emergency Services of the City of Anaheim issued on February 9, 2005, and the subsequent orders issued pursuant thereto, concerning land movement and property damage in the vicinity of 357, 365 and 373 Ramsgate Drive in the City of Anaheim, and, by motion, determine that the need for continuing the local emergency exists. 28. RESOLUTION NO. 2005-101 RESOLUTION OF THE CITY COUNCIL OF THE A203 CITY OF ANAHEIM requesting the Local Agency Formation Commission to initiate proceedings pursuant to the Cortese-Knox Hertzberg Local Government Reorganization ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 10 Act of 2000 for reorganization of property related to Imperial Highway. 29. ORDINANCE N0. 5977 {ADOPTION) AN ORDINANCE OF THE CITY OF M142 ANAHEIM amending Title 17 of the Anaheim Municipal Code relating to land development and resources {Introduced at the Council public hearing of June 7, 2005, Item #35). ORDINANCE N0.5977 ADOPTED. 30. ORDINANCE N0. 5978 (ADOPTION} ORDINANCE OF THE CITY OF ANAHEIM F130 granting to Southern California Edison Company, its successors and assigns, anon- 3071 exclusive franchise to use and to construct and use, solely for transmitting electricity through the City of Anaheim (except in cases of subsequent annexations and of customers served under fringe agreements), poles, wires, conduits and/or appurtenances, in, along, across, upon, over and under the public streets, ways, alleys and places, as the same now or may hereafter exist, within said municipality (Introduced at the Council public hearing of June 7,2005, Item #39). ORDINANCE N0.5978 ADOPTED. 32. ORDINANCE N0. 5979 (INTRODUCTION} ORDINANCE OF THE CITY OF ARA ANAHEIM approving the Redevelopment Plan Amendments to extend by one year the effectiveness of the Redevelopment Plan and the time limit for the receipt of property tax increment for the Merged Project Area {Nunc Pro Tunc). ORDINANCE INTRODUCED. END OF CONSENT CALENDAR 18. Approve and authorize the Executive Director of Community Development to approve, 3536 substantially in the form attached, (1) a Purchase and Sale Agreement and Escrow 3537 Instructions with the Union Pacific Railroad Company, (2) a Prospective Purchaser Agreement with the California Regional Water Quality Control Board; and (3}authorize the Executive Director to make changes acceptable to the City Attorney to these documents for the purpose of acquiring property for the expansion of Ross Park. Director Elisa Stipkovich indicated staff was working with Union Pacific Railroad for some time to acquire this property to complete the expansion of Ross Park. Staff also asked the Regional Water Quality Control Board to enter into a prospective purchaser agreement which helped protect the City in terms of any hazardous substances that might be on the site. She explained staff was aware there were some hazardous substances on site, however, entering into the agreement would grant immunity from the CRWQCB if remedial action plans were in compliance. Mayor Pringle asked who was responsible for clean-up to get to a standard for park use. Claire Fletcher, Real Estate Manager for Community Development Department, reported that at the same time negotiations were in process with the railroad {who was not responsible for contamination on- site), staff was also making progress in negotiations with a neighboring property owner who actually occupied the site and had since 1912. Home Oil Corporation was recognized by CRWQCB as the responsible party; Home Oil submitted a remedial action plan to the water board which was approved and was a voluntary clean-up. She noted it was possible through the negotiations that Anaheim would take over responsibility of implementation of clean-up of the site in order to expedite creating the park site and it would be the City's intention to only enter into that type of arrangement at Home Oil's expense or perhaps as a product of the purchase that would ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 11 come to the Council for approval. Mayor Pringle asked if the City was seeking to purchase the Home Oil site as well and Ms. Fletcher replied in the affirmative. Mayor then asked when the clean-up implementation would take place and Ms. Fletcher replied that Home Oil should be pursuing the clean-upright now but that had not been done and the water board had been patient with them. Ms. Fletcher believed it was Home Oil's hope that through the purchase and arrangements, the City would be the implementing party through a funding hold-back in escrow but the cost of that clean-up would be covered. Ms. Fletcher indicated that staff was in negotiations for the Home Oil site and had some significant breakthroughs. Mayor Pringle assumed a similar type of protection would be available to the City if the Home Oil site was also purchased and Ms. Fletcher remarked that the Prospective Purchaser agreement that staff was currently negotiating with the water board and which CRWQCB staff supported, would cover both parcels if and when the City became the owner. Mayor Pringle asked for the size of the parcel and Ms. Stipkovich replied it was .95 acres. Mayor Pringle asked what would happen if purchase of the Home Oil site took multiple years, would the City go forward with any modification of this site; Terry Lowe indicated that at the very least the City would landscape the site to improve the aesthetics for that area. Mayor Pringle asked when a plan for the park returned, he would like to discuss some of those outstanding issues for that park, such as a gazebo and other enhancements that the C'rty had indicated they would carefully consider making that a more active park; Mr. Lowe agreed. Council Member Chavez moved to approve Item 18, seconded by Council Member Sidhu. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - 0. Motion carried. 20. Approve Plumbing Utility Agreements with J & D Plumbing and Yard Plumbing to provide 1548 various plumbing services, on anon-exclusive basis, to persons at the Convention Center 2808 who require such services in connection with events, City Manager Dave Morgan indicated this was an agreement with two plumbing firms to provide plumbing services to various tenants at the Anaheim Convention Center and under the agreement, they would be added to a list of other providers to be able to offer their services to tenants. He explained part of the agreement was that the convention center would receive a ten percent premium for the opportunity to operate within the Convention Center. Council Member Sidhu commented that Items 20 and 22 were similar contracts, one for plumbing contractors and one for electrical contractors and questioned why the City was entering into contracts with two plumbers while there were 7 or 8 electricians. Greg Smith, Convention Center, indicated there were three plumbing contractors that worked in the Convention Center and these contracts were up for renewal, however, the 3rd plumber did not get his paperwork back to the City in time, and that contract would come back at a later date. He pointed out the City did not limit the number of contractors that could work in the Convention Center and C011traCtOrS were generally hired by the general decorating contractor setting up the exhibits. He explained these contracts were to bring in plumbing, compressed air, natural gas or water to individual exhibit booths. Council Member Sidhu then asked why electrical contractors pay a higher percentage than the plumbers to which Mr. Smith replied it was common industry practice of what the market would bear but there were also cost implications in the power being provided. Council Member Sidhu expressed concern that the commission was not equitable for the two types of contractors servicing the Convention Center. Mr. Morgan indicated additional backup detail on the two items would be provided and returned for the next meeting if that was needed; Council Member Sidhu concurred. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 11 Mayor Pringle remarked that Council just passed an electrical contract with a commission at 25 percent and Mr. Smith had stated it was common practice in the industry and had been in place for at least ten years and the plumbing commission had been in place for the same amount of time. The Mayor asked if staff reviewed whether each contractor provided safe equipment to work to which Mr. Smith replied in the affirmative. Mayor Pringle affirmed that the City did not cap the number of contractors placed on a list if they met the requirement for safe and proper equipment and insurance. Discussion was held by Council as to the purpose of the commission and whether the fees were equitable. Council Member Chavez accepted Mr. Smith's rationale for the fees and moved to approve Item 20, seconded by Council Member Hernandez. Roll call vote: Ayes - 4; Mayor Pringle, Council Members: Chavez, Galloway, and Hernandez. Noes -1; Council Member Sidhu. Motion carried. 31. RESOLUTION N0. 2005-102 RESOLUTION OF THE CITY COUNCIL OF THE D154 CITY OF ANAHEIM amending Resolution No. 2000R-123 which established rates of compensation for job classifications designated as Administrative Management. RESOLUTION N0. 2005-103 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. ZOOOR-124 which established rates of compensation for job classifications designated as Middle Management. RESOLUTION N0. 2005-104 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2000R-125 which established rates of compensation for job classifications designated Professional. RESOLUTION N0. 2005-105 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2000R-126 which established rates of compensation for classifications designated as Supervisory Management. RESOLUTION N0. 2005-106 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2001 R-57 which established rates of compensation for classifications assigned to the Confidential Unit. RESOLUTION N0. 2005-107 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing rates of compensation for classifications assigned to the Anaheim Municipal Employees Association, General Unit. RESOLUTION N0. 2005-108 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing rates of compensation for classifications assigned to the Anaheim Municipal Employees Association, Clerical Unit. RESOLUTION N0. 2005-109 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing rates of compensation and pay policies for unrepresented part- time job classifications and superseding Resolution No. 97R-101 and amendments thereto. RESOLUTION N0. 2005-110 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing rates of compensation and pay policies for unrepresented event- related part-time job classifications and superseding Resolution No. 97R-101 and amendments thereto. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 13 RESOLUTION NO. 2005-111 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 92R-17 which established personnel rules for Management, Confidential and Non-Represented Part-Time classifications. RESOLUTION NO. 2005-112 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2000R-130 which established Management Pay Policies for classifications designated as Executive, Administrative, Middle Management, Supervisory and Professional including Police and Fire Safety Management. Mayor Pringle indicated he asked for this item to be removed from the Consent Calendar as he had asked for a clarification earlier in the budget hearing in terms of the positions dealing with the External Affairs and the Internal Governmental position. Mr. Morgan stated he would bring back a clarification to Council of those positions at a subsequent meeting. Council Member Hernandez moved to approve, with notification to bring back a clarification on the External Affairs and intergovernmental Relations positions; seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - 0. Motion carried. 33. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF API ANAHEIM approving the issuance by the Anaheim Redevelopment Agency of its 2005 taxable subordinate housing tax allocation refunding bonds (Anaheim Merged project Area) and making certain determinations relating thereto (related to Agency Item #3 and Public Financing Authority Item #4). Council Member Galloway removed Item 33 from the agenda, seconded by Council Member Sidhu. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - 0. Motion carried. 34. Discussion relating to recognizing Board and Commission members, on an annual basis 6105 (requested by Council Member Sidhu at the Council meeting of June 7, 2005). Mayor Pringle remarked Council Member Sidhu had asked for discussion on this matter. Council Member Sidhu stated he believed boards and commissioners should have a special recognition of their efforts annually to thank them for their service. Council Member Hernandez believed the annual volunteer banquet was sufficient to recognize the City's volunteers, including the commission members; Council Member Galloway concurred. Mayor Pringle also supported one citywide special event as being appropriate to pay tribute to the boards and commissioners. Terry Lowe confirmed that the annual volunteer party related only to those volunteers participating in parks and recreation services, and Mayor Pringle suggested the Community Services Department extend an invitation to all the boards and commission members to the volunteer banquet. With no objection from Council, Mr. Lowe would include all boards and commission members in that event. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 14 35. Consider appointments to Board and Commission members whose terms expire June 30, B105 2005. All terms will be for four years, expiring June 30, 2008, except for the Senior Citizen Commission, which have three year terms. Community Services Board: Terms to expire June 30, 2009 Council Member Galloway offered the name of Robert J. Currie, who was unanimously appointed. The second appointment was continued to June 21, 2005. Golf Commission: Term to expire June 30, 2009 This appointment continued to June 21, 2005. Investment Advisory Board: Term to expire June 30, 2009 With no objection from Council, Mayor Pringle continued the appointment to June 21, 2005 Park and Recreation Commission: Terms to expire June 30, 2009 With no objection from Council, Mayor Pringle continued the appointment to June 21, 2005 Senior Citizen Commission: Council Member Galloway offered the name of Henry De La Mora who was unanimously appointed to a term which will expire June 30, 2008. The remaining appointments for Senior Citizen Commission were continued to June 21, 2005. PUBLIC HEARINGS: 36. Continued public hearing on the fiscal year 2005/06 budget, the public hearing on budget D106 appropriation limits for the City and its three Community Facilities Districts (Items A - D), and the public hearing on changes in fee schedules (Items E - Q). Close the public hearings on the fiscal year 2005/06 budget, budget appropriation limits, and changes in fee schedules. Mayor Pringle reopened the public hearing. The City Manager indicated there were a series of resolutions to be approved by the adoption of the budget. Council Member Galloway asked for Items G & H to be removed for separate discussion, Mayor Pringle removed Items L & M. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 15 A. RESOLUTION NO. 2005-113 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the annual appropriations limit for the Fiscal Year 2005/06. B. RESOLUTION NO. 2005-114 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the Community Facilities District No. 1989-1 (Sycamore Canyon) annual appropriations limit for the Fiscal Year 2005/06. C. RESOLUTION NO. 2005-115 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the Community Facilities District No. 1989-2 The Highlands) annual appropriations limit for the Fiscal Year 2005/06. D. RESOLUTION NO. 2005-116 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the Community Facilities District No. 1989-3 (The Summit) annual appropriations limit for the Fiscal Year 2005/06. E. RESOLUTION NO. 2005-117 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fess to be charged for Community Services Department programs and services commencing on September 1, 2005. F. RESOLUTION NO. 2005-118 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adjusting the amount of the fee for the Public Library Facilities Plan for the East Santa Ana Canyon area. G. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adjusting the amount of the Park-in-Lieu fee and rescinding Resolution No. 2004R-128. H. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adjusting the amount of the Park-in-Lieu fee for the Platinum Triangle area and rescinding Resolution No. 2004R-179. Mr. Terry Lowe indicated that Item G reflected Park-in-Lieu fees for the entire City and Item H referred to Park-In-Lieu fees for the Platinum Triangle. Each year, he explained, Council would adopt a resolution for assessment of fees for the development and rehabilitation of parks throughout the City. The fee was charged to the developer and a formula based on current real estate values as well as cost for construction was utilized calculated by 2 acre per 1,000 formula. In the Platinum Triangle the land would be commercial property and much more expensive to acquire than property elsewhere throughout the City which was why there was a deviation in the fees. He noted the fees were analyzed last year and had been revised using the same formula and methodology used in the past. Council Member Galloway indicated Citywide the park-in-lieu fee proposed was $8,400 per unit and in the Platinum Triangle for a single residential unit the cost would be $9,378 remarking if every residential unit in the Platinum Triangle was paying $9,300 and Council was considering almost 10,000 units, the total in-lieu fee would be substantial. Mr. Lowe indicated he had heard with the complete build-out of the Triangle the fees would be roughly $30 to $40 million. Mayor Pringle indicated that total would actually be close to $90 million. Council Member Galloway asked what the plans were for use of those park fees; Mr. Lowe replied land would be acquired in the near vicinity of the Triangle to develop for parkland, not within the center of the Triangle where land ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 16 was $5 to $6 million per acre. He stated that some of the CalTrans remnant parcels recently approved for purchase by Council might have some suitable locations where both passive and active parks could be developed. He also pointed out the developers would develop some parkland and the City would be receiving credit for that parkland which would decrease the total dollar figure quoted earlier. Mr. Lowe remarked those funds would also be used for rehabilitation of parks in that area that would serve the new population. Council Member Galloway confirmed parkland fees must be used for acquisition of parkland and the rehabilitation of park facilities in the Platinum Triangle, and could not be used for park maintenance and must be utilized within five years. Mayor Pringle indicated that the present in-lieu fee was $6,000 per unit for a single family unit and the City was proposing the fee to increase to $8,400, a 35 percent increase and asked what generated that increase. Mr. Lowe replied the significant increase related to the increases in the cost of land and construction costs. He explained the land in the area was appraised to determine what the increase in value was from one year to the next and engineering construction cost index was used for determining what the increase in construction would be. Mayor Pringle remarked that one of the OCTA remnant parcels recently authorized for purchase was amulti-acre property along the freeway and asked what the cost was, and staff replied the City paid $2.5 million for the 2.5 acre. Mayor Pringle emphasized he was not ready to increase the park in-lieu fees by 35 percent, a figure that would add to the cost of the new units to be borne by the new renter or homeowner. He believed the park fees were high enough at $7,000 per unit which meant there were $70 million in funds available for necessary park and recreation facilities in the Platinum Triangle particularly since the City recently bought 2.5 acre of property for $1 million per acre. RESOLUTION NO. 2005-119 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the green fees and cart rental fees to be charged at the Dad Miller Golf Course and the Anaheim Hills Golf Course. RESOLUTION NO. 2005-120 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a schedule for rates to be charged for rental of space and for certain labor, equipment and services at the Anaheim Convention Center. RESOLUTION NO. 2005-121 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fees for parking at the Anaheim Convention Center. K. RESOLUTION NO. 2005-122 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM revising fees for services rendered by the Anaheim Fire Department and establishing the effective date of fees. L. RESOLUTION NO. 2005-123 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting new fee and rate schedules for building, construction, Geographic Information System, and National Pollutant Discharge Elimination System permits, services and activities RESOLUTION NO. 2005-124 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fees and rates for Community Preservation inspections and graffiti abatement. RESOLUTION NO. 2005-125 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending certain fees relating to Community Preservation activities. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 17 RESOLUTION NO. 2005-126 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting new fee and rate schedules for Planning, Zoning and Environmental petitions, applications, permits, approvals, appeals and inspections. Mayor Pringle pulled this item to address the cost of appellant fees. Staff recommended that Exhibit A of the above resolution be modified for anon-applicant appellant flat fee of $500 rather than the $2,300 initial deposit. Council Member Sidhu asked if the flat fee could be based on a I/2 percent of the project cost. Mr. Morgan remarked that discussion heard during the workshop was to impose an interim fee and staff would return with a recommendation based on category or valuation. Mayor Pringle asked prior to modifying the fee structure, what was the appeal fee. Sheri Vander Dussen stated there were two appeal fees, the City Clerk had imposed a flat fee of $350 and Planning also used to impose a flat fee of $350, for a total of $700. Under the current fee structure, the appellant makes a deposit to Planning to cover the hourly charges plus pay a $350 flat fee to the City Clerk with staff now proposing a flat fee of $500; $350 would go to City Clerk, Planning would keep $150, and the project applicant would be billed for any costs incurred above that amount. Mayor Pringle asked if anyone would object to going back to the old fee of $350 and $350 for a total of $700 and then have staff bring aproject-based appeal formula in the near future; and Council Members concurred. ORDINANCE NO. 5980 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 18.80 of Title 18 of the Anaheim Municipal Code relating to fees. The ordinance was introduced. M. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 17.36 to Title 17 of the Anaheim Municipal Code establishing public safety facilities and vehicle and equipment impact fees for new and expanded development in the City. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing public safety facilities and vehicle and equipment impact fees for new and expanded development in the City. Roger Smith, Fire Chief, indicated Item M was submitted in order for the City to continue to preserve the existing levels of police and fire service to the community. The development impact fees would fund required capital improvements or equipment necessary as development growth impacted the existing department resources. The recommended development impact fees would generate approximately 61.5 percent of the capital needed for projected improvements with approximately 9.1 percent to be funded by the sale of some properties no longer needed as the result of relocating a number of fire stations. The calculation of the impact fees was derived on a per unit basis for residential land uses on per square foot of pad basis for business related land uses. Mayor Pringle asked if the development fees were new; Chief Smith replied there was a temporary development fee in place in the Platinum Triangle for which this citywide fee would replace. He explained the temporary fee was currently $350 per unit and 20 cents per commercial square foot. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 18 Mayor Pringle expressed concern for the impact fees, particularly new fees which exceeded the temporary fee by a significant amount. Mayor Pringle asked to see more information about the nexus and the argument for the fees. He questioned the applicability of the fees to residential expansions. The City Attorney stated there was a provision in the ordinance to make the fee for expansions based only on the square footage of the expansion, as long as the use was not changed. The City Manager remarked that both the park in-lieu fees and the development impact fees were not required for the adoption of the operating budget since both fees were designed to handle future capital costs. He stated if Council would like staff to return with more information in both those areas, that could be done. Mayor Pringle commented he was not prepared to take action on these fees and given the cost detail, it would have to be proven to him that it was a wise step to take. Council Member Chavez stated he believed the fees were going in the right direction, indicating adjustments may have to be made. He further stated developers had been given density bonuses and setback bonuses to build and Anaheim now had a tremendous amount of growth which placed a burden on fire safety and stressed the need for additional fire stations and finding the funds to make that happen. Council member Sidhu believed these fees would be an extra burden on developers and suggested additional study to lessen impacts to new homeowners. Council Member Hernandez moved to approve Items A through Q, with the exception of G, H and M, asking for those items to be continued and to approve Item L as amended, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - 0. Motion carried. With no other comments offered, Mayor Pringle closed the public hearing N. RESOLUTION NO. 2005-127 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending rates, rules and regulations for the sale and distribution of water as adopted by Resolution No. 72-600 and most recently amended by Resolution No. 2005- 39. O. RESOLUTION NO. 2005-128 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting new fee schedules for the Public Works Department of the City of Anaheim. P. RESOLUTION NO. 2005-129 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a revised schedule of sanitation charges for wastewater. Q. RESOLUTION NO. 2005-130 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a revised schedule of sanitation charges for solid waste. Council Member Hernandez moved to adopt the budget appropriations and changes in fee schedules, continuing Item Nos. 36G, 36H and 36M, seconded by Council Member Galloway. Roll call vote: Ayes - 5, Mayor Pringle, Council Members Hernandez, Chavez, Sidhu, Galloway. Noes - 0. Motion carried. ANAHEIM CITY COUNCIL MEETING MINUTES June 14, 2005 Page 19 Council Member Sidhu moved to adopt the 2005/06 budget, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - 0. Motion carried. Report on Closed Session Actions: None Council Communications: Council Member Galloway related an act of kindness. Council Member Chavez again spoke of his concern relating to the lack of fire stations in the Platinum Triangle area. Mayor Pringle requested the City Attorney present a Freedom Resolution for the Council meeting on June 21, 2005 to emphasize City advances in freedom rights. Adjournment: At 7:40 P.M., Mayor Pringle adjourned the meeting. Respectfully submitte Sheryll Schroeder, MMC City Clerk