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2006/01/31 ANAHEIM, CALIFORNIA CITY COUNCIL REGULAR MEETING JANUARY 31, 2006 The City Council of the City of Anaheim met on January 31,2006 to call to order the regular City Council session at 3:12 P.M. in the Council Chambers of Anaheim City Hall, 200 South Anaheim Boulevard. PRESENT: Mayor Curt Pringle, Council Members: Richard Chavez, Lorri Galloway, Bob Hernandez and Harry Sidhu STAFF PRESENT: Assistant City Manager Tom Wood, Assistant City Attorney Cristina Talley, and City Clerk Sheryll Schroeder. City Manager Dave Morgan and City Attorney Jack White arrived during the closed session. A copy of the agenda for the meeting of the Anaheim City Council was posted on January 27,2006 at the City Hall exterior bulletin board. WORKSHOP - MID-YEAR BUDGET REVIEW: Bill Sweeney, Finance Director, reported the budget preparation process for this fiscal year was underway and he expected the proposed budget to be considered by Council In May with the budget hearings to be scheduled for June, 2006. He indicated California economy was strong, the unemployment rate of 4.9 percent was lower than presented last year and was continuing its downward trend and retail sales were strong, both statewide and in the City. He stated inflation had risen since last year but was well contained and consumer confidence remained strong. The areas to watch, he pointed out were interest rates, housing prices, and energy prices. He indicated the federal reserve had raised the short term overnight rate to 4.5 percent earlier today and 10 year treasury's were also at about 4.5 percent which brought about concerns related to the inverted yield curve and while that situation sometimes portends a recession, he remarked a great many economists were not talking about recession. Housing prices had accelerated the last few years but he expected they would start to moderate pointing out universities were calling for an orderly downward movement. He did not expect this to have an adverse effect on revenues but it would be of interest to the City in the long- term. Energy prices, he pointed out, affected the City in two ways; 1) Anaheim was a large procurer of gasoline and diesel fuel which meant operation expenses would increase and 2) there would be less discretionary spending for consumers. Specific to the City of Anaheim, the Transient Occupancy Tax (TOT) was way over budget figures and staff was projecting an increase through the rest of the fiscal year. Beyond that, Mr. Sweeney added, with the conclusion of Disney's 50th birthday celebration, staff would reevaluate the number of visitors to the City. He announced local universities issued their forecasts and were generally projecting a moderate downward progression in housing prices but generally strong retail sales. The City had a continued increase in taxable sales much of which staff contributed to Disney's 50th anniversary promotion but remarked the general economy was good and overall solid growth was projected. I n the adopted budget, strong revenue growth was projected for all categories and expenses were also projected to track the higher level of revenue due to public safety - 1 ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 2 enhancements adopted by Council. He noted there was a prudent use of reserves for the current year of just over $6 million with $2.4 million due to public safety and approximately $3.7 million for the final payment to the State of California and commented that the $6 million was well within the City's reserve policy. Mr. Sweeney ended by commenting with the higher revenues coming in, he was confident that instead of drawing $6 million from reserves, he believed the City would actually be contributing to the reserve position. Property taxes he noted were materially higher than budgeted which also included the one-time Vehicle License Fee (VLF) adjustment. Sales and use tax were strong at about 4.7 percent; TOT was conservatively projected at 4.5 percent (he remarked they were currently running 20 percent above last year and the projection assumed it would be 10 percent by the end of the fiscal year). Not much movement had occurred in business license tax as well as other fees and charges. Mayor Pringle asked for clarification on the property tax with the VLF adjustment. Mr. Sweeney responded the VLF had been taken away from cities and in its place, cities received a greater share of property tax, however it was up to the state to figure out what that number was going to be and "true-up" those figures. The VLF the City was entitled to in the year ending June 30,2005 was a fixed amount and going forward the new shift from VLF to property tax was the same dollar amount enhanced each year by the change in the City's assessed valuation. Mayor Pringle asked where VLF was reflected in the budget revenues and Mr. Sweeney indicated it was now in another category reflecting the smaller revenue of $2 million, roughly 1/3 of licenses fees collected. Mr. Sweeney stated he was also making the assumption that on labor, other operating debt and capital outlay the City would not save any money which was the most conservative approach to take in mid-year review, but that his staff was refining those numbers right now and he expected to see some savings at the end of the year. Regarding capital outlay, he stated typically the City would carry over funds from year to year that were not spent in the current fiscal year. Other operating expenses were handled differently and Mr. Sweeney pointed out on this evening's agenda was a request for appropriations associated with the opening of the Haskett Library and the West Anaheim Youth Center. Those expenses Mr. Sweeney had already included in the labor and other operating category. Mayor Pringle asked if there was a breakdown of the $3.5 million increase to other operating expenses and Mr. Sweeney indicated that would be provided to Council after the meeting. He remarked that Council had earlier asked for a separate column in the budget documents to show carry-overs for capital projects and that would be provided. Mayor Pringle asked if detail on capital outlay expenditures would be provided which were different from the projected budget and the mid-year report and Mr. Sweeney indicated it would also be provided at a later date. Property taxes were $28.3 million last year and $30.3 was projected for the coming year. He remarked there was a steady progression of revenue and he did not anticipate any material downturn in terms of property tax. Mayor Pringle reflected that property tax was a great form of revenue for local government because as overseers of property-directed services, a significant part of the budget should be based upon property tax revenue. Council Member Hernandez asked if the County Assessor provided an accounting on properties such as property appreciation schedules related to zip codes. Mr. Sweeny indicated he had not seen a detailed report of extraordinary transactions of that type but indicated the City could request it. Council Member Hernandez responded that he was trying to determine how the City would project property tax revenues with any accuracy, especially in light of the moderate downturn in housing prices that was forecast. Mr. Sweeney acknowledged the difficulty in dealing with paSSive revenues when it was necessary to estimate figures rather than have fixed rates in place. Mayor Pringle asked what ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 3 the assessed valuation of Anaheim property was and Mr. Sweeney stated he would provide that detail after the meeting. For transient occupancy tax projections, Mr. Sweeney remarked staff had tried to find and establish a base that would be sustainable over the long term. This year's jump in the TOT he attributed to the Disney 50th anniversary and the improved economy overall. Sales tax showed strong results and as the State of California received 25 percent of the sales tax and returned to the cities 25 percent of their revenue in property tax, called the "triple flip", that transaction was a push for the City as it did not have an impact on local governments and was necessary as the State needed to use sales tax in order to qualify for bonds sold two years ago. The biggest improvement, he remarked, had been in the business to business category with about 21 percent of the City's total taxable sales. He remarked that 21 percent was a target for most cities to attain and Anaheim had reached it. Mr. Sweeney indicated that in the General Fund there were monies that come in and monies that were transferred out. Council Member Sidhu had earlier questioned the $19 million in transfers from the General Fund. Mr. Sweeney explained that was the net of $25 million coming in and $44- million going out. With the exception of economic development at $1.3 million and AQMD, the transfers related to transient tax. In the 80's and the 90's, Anaheim Council adjusted the tax periodically (8 percent up to its present 15 percent) to accomplish improvements both to the Anaheim Resort and the Anaheim Convention Center. The General Fund was not adversely impacted, the visitors paid the transient tax and the tax was then used to service bonds over time over many years. This was a common tactic employed by elected officials in the past and was prior to Prop 218 and the citizens voting on this and the General Fund would never have to make any payment on the bonds. When the TOT revenues increased, the portion that paid debt service and other obligations also increased. The net discretionary draw by departments referred to the total General Fund less all fees and charges generated by the operating departments. This is where the discretionary revenue went, with almost 70 percent for police and fire, typical of local California governments. The remainder, 30 percent, funded everything from parks to recreation to public works functions. Council Member Sidhu asked how this percentage compared to other large cities. Mayor Pringle also asked if that number would be available for Council during the budget preparation as compared to the next ten largest cities in Orange County and 10 largest cities in California; Mr. Sweeney would provide that survey remarking that it was his feeling the numbers would be close. The assumptions used for the 5-10 year projection was to assume the economy would continue to grow, that the City would be adding five new police officers next year and that all operating costs for new facilities would be fully funded by Council and that departments were able to balance their discretionary targets and the City would have a balanced budget. He reported since 1996, Anaheim's budget had been balanced and through the last 10 years there had been a small surplus and that he expected a surplus of approximately $350,000 at the end of this fiscal year. ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 4:00 P.M., Mayor Pringle moved to closed session for the following items: ...... - ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 4 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 aI., Orange County Superior Court Case No. 05CC01902. 2. CONFE.RENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Subdivision (a) of Government Code Section 54956.9) Name of case: Roberts v. Madden OCSC Case No. 05CC00072. 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Subdivision (a) of Government Code Section 54956.9) Name of case: Roland Covey v. Coorg Corporation, et at OSCS Case No. 04CC12617 4. CONFERENCE WITH LABOR NEGOTIATORS Agency designated representative: Joel Fick Employee organization: Anaheim Firefighters Association, Local 2899. 5. CONFERENCE WITH LABOR NEGOTIATORS Agency designated representative: Dave Hill Employee organization: Anaheim Police Association 6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 150 W. Vermont Avenue, Anaheim Negotiator: Joel Fick, John Welter Negotiating parties: City of Anaheim and Conservative Baptist Assn. of Southern California. Under negotiation: Purchase/Lease 7. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 888 S. Disneyland Drive, Anaheim Negotiator: Joel Fick, John Welter Negotiating parties: City of Anaheim and 888 Milan R. E. LLC Under negotiation: Five Year Lease (FSG) 6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 1175 N. East Street, Anaheim Negotiator: Joel Fick, John Welter Negotiating parties: City of Anaheim and Taormina Inter Vivos Trust Under negotiation: Five Year Lease (Net) 9. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 505 N. Euclid Street, Anaheim Negotiator: Joel Fick, John Welter Negotiating parties: City of Anaheim and Anaheim Place Partners Under negotiation: Five Year Lease (Net) Upon the conclusion of the closed session, Mayor Pringle reconvened the Council meeting. ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31,2006 Page 5 Invocation: Flag Salute: Pastor Roger Frick, Zion Lutheran Church Mayor Pro Tem Chavez Recognizing long term City retirees with more than 20 years of service. Dave Hill, Personnel Director, recognized employees who had worked for the City of Anaheim for 20 to 39 years. Recognizing Anaheim Hills Shell and Weir Canyon Honda on receiving the Automobile Club of Southern California's Quality Service Award. Two Anaheim businesses were recognized for Quality Service Awards - Anaheim Hills Shell Station and Weir Canyon Honda. Presentations: ADDITIONS/DELETIONS TO ANY OF THE AGENDAS: None PUBLIC COMMENTS (ALL MATTERS EXCEPT PUBLIC HEARINGS): James Robert Reade provided comments related to Anaheim Police Department. Blake Wu, Tribal President of Associated Student Body of Canyon High School, spoke of the growing problem of reduced food donations as agencies struggled to restock their supplies after assisting Hurricane Katrina victims. He spoke of the success of the Canyon High School student body contributing over 21,000 pounds of food and in addition raising funds to provide over 42,000 meals for those in need. He encouraged the City's participation in a citywide food campaign. Jeannie Creighton, Second Harvest Food Bank of Orange County, announced Anaheim was hosting the 6th annual "Feed the Need" Food Drive remarking her organization provided close to 220,000 meals in Orange County and also encouraged the City's participation. William Fitzgerald, Anaheim HOME, addressed health concerns related to Disneyland fireworks display. Michael Baker, executive director of Boys and Girls Clubs of Anaheim, informed Council and the community of the annual gala to benefit motel outreach program occurring on April 22nd at the Disney Grand California hotel. Alma Ramirez spoke on several issues. CONSENT CALENDAR: Council Member Hernandez requested Item No's. 19, 27 and 29 be removed from the consent calendar for further discussion; Council Member Chavez removed Item No. 25 and Council Member Sidhu removed Item No. 18. Mayor Pringle indicated he would abstain on Item No's. 7 and 8 and removed Item 21 for further discussion. Council Member Galloway moved to approve the balance of the consent calendar Items 1 - 36, seconded by Council Member Sidhu 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; ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 6 Mayor Pringle, Council Members: Chavez, Galloway Hernandez, and Sidhu. Noes - O. Motion carried. 1. Reject certain claims filed against the City. C118 2. Receive and file minutes of the Deferred Compensation Committee meetings held B105 September 14 and September 30,2005; Investment Portfolio Report for November and D117 December 2005; minutes of the Library Board meeting of December 12, 2005 and minutes of the Public Utilities Board meetings of November 3 and December 1, 2005. 3. Approve agreements with Harrington Geotechnical Engineering, Inc. and Kleinfelder, Inc. to 1682 provide soils testing, materials testing and certified deputy building inspection services for 2755 capital improvement projects. (Continued from the Council meeting of January 10, 2006, Item 31) 4. Approve the Acquisition Agreement for the purchase of real property located at 105 East 3934 Wakefield Avenue and authorize the acquisition payment of $1,078,000 to Janet A. Lloyd, including escrow fees to Grover Escrow Corporation. 5. Approve the Acquisition Agreement for the purchase of real property located at 331,501 3928 and 519 West Ball Road and authorize the acquisition payment of $222.757 to Lei Chung. Trustee; Rosana Hsu Chao, Trustee; Edward Miller, Trustee and Mary O. Miller, Trustee. 6. Approve the Acquisition Agreement for the purchase of real property located at 2217 E. 3929 Lincoln Avenue and authorize the acquisition payment of $9.500 to Franklin E. Kraatz and Joyce La Vaun Kraatz. 7. Approve the Agreement for Acquisition of Mobile Home and Improvements, in the amount 3930 of $28,300, for one mobile home located at 1844 South Haster Avenue, Space No. 25. for the Gene Autry Way (West)II-5 Freeway Highway project. Mayor Pringle abstained; vote: 4-0. 8. Approve the Agreement for Acquisition of Mobile Home and Improvements with Aurora 3931 Nelson, in the amount of $13.300. for one mobile home located at 1844 South Haster Avenue, Space No. 28, for the Gene Autry Way (West)/1-5 Freeway Highway project. Mayor Pringle abstained; vote: 4-0. 9. Approve and authorize execution of the Final Map and Subdivision Agreement of Tract No. 3932 16640 located at 425 North Magnolia Avenue. 10. Approve and authorize execution of the Assignment & Assumption Agreement with Stantec 3062 Consulting. Inc. for the Katella Avenue Smart Street Project. 11. Reject an Irrevocable Offer for Dedication of a waterline easement lying within Parcel 3 of P110 Parcel Map 90-232, quitclaim of the City's rights, title and interest in and to the Irrevocable Offer for Dedication of a portion of a waterline easement and authorize the Mayor to execute the Quitclaim Deed. (Abandonment No. ABA2005-00119). r - ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31,2006 Page 7 12. Set the public hearing dates and times for consideration of the fiscal year 2006/07 budget 0106 as June 13, 2006 at 2:00 p.m. and June 20,2006 at 2:00 p.m. 13. Accept the bid and authorize the execution of an agreement with Merchants Building 3933 Maintenance, LLC, in an amount not-to-exceed $1,000,000 a year for a two-year agreement for custodial services beginning March 1, 2006 with three one-year options to renew and authorize the Purchasing Agent to execute any renewal options, all in accordance with Bid #6659. 14. Accept the proposal of ADT Security Services, Inc. in an amount not-to-exceed $1,158,505 3927 for the purchase and installation of a Turnkey Integrated Security System for Public Utilities and authorize the Purchasing Agent to execute and take any and all necessary actions to implement the agreement and related documents, all in accordance with Bid #6630. 15. Approve and authorize the Finance Director to execute all documents related to the First 3043 Amendment to the contract with Electronic Data Systems Corporation (EDS) to provide for an additional three year term plus three optional one-year extensions. 16. Waive the sealed bid requirement of Council Policy 306 and authorize the Purchasing 0180 Agent to issue a purchase order to Chameleon Associates, LLC, in the amount of $40,000 (plus applicable tax) for a public terrorism preparedness training course for the Police Department. 17. Waive the sealed bid requirement of Council Policy 306 and authorize the Purchasing 0180 Agent to issue a purchase order to Chair Choice, for a not-to-exceed amount of $43,125 (including tax, installation and delivery) for twenty-four custom lounge chairs and four custom computer benches for the new Haskett Branch Library and authorize Purchasing to accept the lowest responsive bids for manufacturing and installation services for the interior design elements of the Haskett Library, all in accordance with Bid # 6714. 20. Review the need for continuing the local emergency heretofore proclaimed by the Director 0175 of Emergency Services as ratified by City Council Resolution No. 2005-17, 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. 22. Accept grant funds in the amount of $6,050 from the State of California Rivers and 0150 Mountains Conservancy for interpretive elements at the Oak Canyon Nature Center and amend the Community Services Department revenue and expense budget by $6,050 for the Nature Program. 23. Provide a reserve and expenditure appropriation authority from the 216 Fund (Parksites 0150 and Playgrounds) in the amount of $102,929 for design and construction costs for the Oak Canyon Nature Center Trail Restoration Project. 24. Approve an amendment to a License Agreement with Disney GOALS, Inc., to utilize Martin 3450 Recreation Center to conduct a youth hockey skating and training program for underprivileged area youth. T ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 8 26. Waive City Council Policy 306 and approve an agreement with Robert D. Johns to manage 1704 and operate golf professional services at the Dad Miller and Anaheim Hills Golf Courses. 28. Approve the cable franchise transfer agreement from Adelphia Communications 1500 Corporation to Time Warner Cable and authorize the City Manager, on behalf of the City, to authorize, implement and enforce the agreement. 30. RESOLUTION NO. 2006-06 A RESOLUTION OF THE CITY COUNCIL OF THE 0154 CITY OF ANAHEIM approving a letter of understanding between the Teamsters Union, Local 952, and the City of Anaheim. 31. RESOLUTION NO. 2006-07 A RESOLUTION OF THE CITY COUNCIL OF THE P124 CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein. (City Deed Nos. 10901-10903, 10905, 10908-10911 & 10913). 32. RESOLUTION NO. 2006-08 A RESOLUTION OF THE CITY COUNCIL OF THE M142 CITY OF ANAHEIM adopting an application fee pursuant to Section 4.22.040 of Chapter 4.22 of Title 4 of the Anaheim Municipal Code relating to smoking lounges. 33. RESOLUTION NO. 2006-09 A RESOLUTION OF THE CITY COUNCIL OF THE P124 CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein. (City Deed Nos. 10906 & 10907). 34. ORDINANCE NO. 6013 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM M 142 adding Chapter 7.52 to Title 7 of the Anaheim Municipal Code relating to shopping cart containment and retrieval. (Introduced at the Council meeting of January 10, 2006, Item 38) RESOLUTION NO. 2006-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting fees pursuant to Chapter 7.52 of Title 7 of the Anaheim Municipal Code relating to shopping cart containment and retrieval. 35. ORDINANCE NO. 6014 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM C280 amending portions of Section 18.20.020 of Chapter 18.20 of Title 18 of the Anaheim Municipal Code relating to zoning and development standards (Zoning Code Amendment No. 2005-00042), Nunc Pro Tunc. (Introduced at the Council meeting of January 10, 2006, Item 39) 36. Approve minutes of the adjourned meting of January 10, 2006. END OF CONSENT CALENDAR: 18. Accept the bid from Pauwells Transformers, in a not to exceed amount of $406,351.11 and 0182 the bid from ABB, c/o Wesco Distribution in a not to exceed amount of $148,835.07 (including tax and freight) for the purchase of distribution transformers for the Public Utilities Department, all in accordance with Bid #6698. Marcie Edwards, Utilities General Manager, reported there had been an open contract for multiple vendors to provide distribution transformers but that due to significant increases in the core ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 9 elements of the transformers, Wesco and Pauwells did not renew their existing purchase agreements for 2006 whose terms allowed for a permitted Consumer Price Index (CPI) increase. She stated the Utilities Department then solicited bids from distribution transformer manufacturers and of the four responses received two were the original bidders at a higher price. Her staff analyzed the four bids and of the transformers that were selected, no other vendor bid on the ABB transformers. Of the other group, she noted, Pauwells was the low bidder. She indicated this was a small order of about 43 transformers which would be enough to get the department through the next month without delaying installation for the Stadium Loft project. Council Member Sidhu stated he understood the need to purchase transformers during emergencies circumstances but questioned the hurry in this instance. Ms. Edwards responded the transformers were scheduled to go into a number of jobs, of which the Stadium Lofts project was the biggest. She remarked distribution transformer manufacturers were not many and the department was familiar with the majority of firms who offer them but the issue in this case was the high price of copper and aluminum in the manufacture of the transformers. She stated a rough estimate for the increases in transformers was about 20 to 25 percent higher. Council Member Sidhu moved to approve Item No. 18, seconded by Council member Hernandez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 19. Cancel the regularly scheduled Council meeting of February 28, 2006 and add a 0114 replacement meeting for February 14, 2006. Mayor Pringle stated he had requested the change in meeting dates due to a conflict with the February 28th date. Since February 14th was Valentine's Day, he asked staff to keep the agenda for that date relatively short. After a brief discussion, Council Member Hernandez moved to approve Item No. 19, seconded by Council member Chavez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 21. Authorize a budget appropriation for the purpose of funding operating expenses for the new 0150 Haskett Library in an amount of $883,922 for FY 2005/06 and authorize a budget appropriation for the purpose of funding operating expenses for the new West Anaheim Youth Center/Gymnasium facility in an amount of $266,400 for FY 2005/06. Terry Lowe, Community Services Director, reported staff was asking Council to adjust the budget appropriation for the 05/06 budget to enable the department to begin to staff and equip two new facilities that would be opening shortly in West Anaheim. The Haskett branch library had been enlarged from 7,500 square feet to 24,000 square feet and had been a project identified for many years as a very high priority for West Anaheim and was scheduled to open in May, 2006. The other facility, the West Anaheim Youth Center Gymnasium and police facility would be staffed and ready for opening in July, 2006. Mayor Pringle remarked he appreciated the partnership the City had with a variety of community non-profit organizations such as the Boys and Girls Club which allowed the community to provide services in the City's facilities. Mayor Pringle moved to approved Item No. 21, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 25. Approve the lease agreement with the Orange County Water District (OCWD) for the 3377 development, operation and maintenance of the recreational facilities at the proposed Burris Pit Recreation Area. r ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 10 Terry Lowe reported this item was to approve a lease agreement with OCWD to assume responsibility and operation of the Burris Pit recreational area, approximately 116 acres which would be added to the City's recreational system. Mr. Lowe explained this natural resource would be available to many people and he had appreciated the opportunity to work with OCWD staff and elected officials to make this possible. Council Member Chavez indicated the agreement had been unanimously approved by the OCWD and he wanted to thank staff and the OCWD for the year of negotiations which culminated in making this possible. He stated it had taken a while but the board members of OCWD understood the value this natural site had to the community and he was proud of the project which added another dimension to Anaheim's recreational system. Mayor Pringle thanked staff, Council Member Chavez and other elected Orange County officials for opening up this natural wildlife refuge to the people, remarking it had been unseen behind a barbed wire fence for many years and now would be available for school children and residents to view wildlife habitat from observation decks along this portion of the Santa Ana River. He added with the City applying to the Rivers and Mountains Conservancy for grant funds, there was now $1 million to utilize for walking paths, observation decks and picnic areas. He expressed his excitement in this partnership project and suggested a community open house when the site was ready. Council Member Chavez moved to approve the lease agreement with OCWD, seconded by Council Member Sidhu. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 27. Approve and authorize the Public Utilities General Manager to execute the Amended and 1683 Restated San Juan Project Participation Agreement with the City of Anaheim and various power agencies. Marcie Edwards reported Anaheim Utilities had an approximately 10 percent share in the San Juan coal plant which translated to roughly 50 megawatts of power. She explained the agreement described the management of the plan and also contained components related to coal supply which had transitioned from surface mining to internal tunnel mining and necessitated a modification in the agreements to reflect that change. She reported there was no change in the economic terms of the agreement, as it only dealt with how the fuel was being mined and delivered to the facility. Council Member Hernandez commented on the extraordinary amount of back up material for the agreement remarking he had not had sufficient time in which to review it. He understood the brief and concise staff report and asked for assurance that information relating to the backup material was reflected in the staff report. Ms. Edwards stated the original operating agreement involved nine separate agencies which explained the amount of detail that was provided and she had summarized the implications of the amendment in the staff report. She added the agreement had been reviewed by all the operating agencies for consistency and by legal counsel to insure it was in the appropriate form and had also been reviewed by Anaheim's internal staff that was comfortable changes were adequately reflected in the staff report. Council Member Hernandez moved to approve the Amended and Restated San Juan Participation Agreement, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 29. Approve an agreement with USA Volleyball to relocate the USA Men's National Team to 3935 Anaheim by April 2006 to train for the 2008 Olympic Games in Beijing and the 2012 Games in London and authorize the City Manager to finalize and sign said agreement. f ~ ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 11 Mayor Pringle remarked this agreement with USA Volleyball to train for the 2008 and 2012 Olympic Games in Anaheim was a phenomenal opportunity and would bring more awareness of the City and its assets to the public. He stated Council looked toward the community to support the team in any manner and was looking toward the community for ways to raise private dollars to fund the program. He added the City was committed to helping raise resources for the USA Men's National Team for the next six years or more. He commented that when the team practiced at the American Sports Center last July, the Hilton Hotel was generous in providing rooms, Anaheim Chevrolet had donated vehicles, and Mimi's Cafe and the White House Restaurant provided meals which signaled to the team the Anaheim community's commitment to the sport. Mayor Pringle introduced Coach Hugh McCutcheon who stated the team was very grateful and appreciative for the support and for the opportunity to work out at a world class facility, the American Sports Center. He indicated there would be international competition in July and the public was welcome to attend those events or the practice sessions and show their support. Mayor Pringle suggested sharing that information on the City's website to inform the community of events or practice times. Council Member Hernandez spoke of the importance of adding to Anaheim's sports image and of the volleyball team traveling worldwide and carrying the Anaheim name with it. Mr. McCutcheon indicated the team was not only here to use the sports facility but also wanted to be an integral part of the community. Council Member Sidhu moved to approve the USA Volleyball agreement, seconded by Council Member Hernandez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. 37. Consider an appointment to the Senior Citizen Commission, term to expire June 30, 2008 8105 (Joan Helms). (Continued from the Council meetings of December 20, 2005 and January 10, 2006) Council Member Chavez nominated Ray Brooks to Senior Citizen Commission. With no other nominees offered, Mr. Brooks was unanimously appointed. . 5:30 P.M. PUBLIC HEARINGS: 38. A public hearing to consider the abandonment of a portion of Wilhelmina Street abutting AT P110 & SF railroad right-at-way, east of Pauline Street (Abandonment No. ABA2005-00112). Natalie Meeks, Public Works Department, stated the abandonment was tor a right-ot-way that was no longer required for current or future traffic and that it had been closed to traffic for a number of years. She added the abandonment of the right-of-way would also settle litigation of which the City was a part. Mayor Pro Tern Chavez opened the public hearing and receiving no testimony, closed the hearing. Council Member Sidhu moved to approve Resolution NO. 2006-011 and approve the conveyance by quitclaim of the City's right, title, and interest in the abandonment area to the entities legally entitled thereto, seconded by Council Member Galloway. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - O. Motion carried. RESOLUTION NO. 2006-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a portion of Wilhelmina Street (ABA No. 2005-00112). ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 12 39. ADDENDUM TO THE POINTE ANAHEIM INITIAL STUDY AND MITIGATED NEGATIVE C350 DECLARATION/MODIFIED MITIGATION MONITORING PLAN NO. 004 (PREVIOUSLY APPROVED) 1463 AMENDMENT TO DEVELOPMENT AGREEMENT NO. 1999-01 1491 AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ANAHEIM AND ANAHEIM GW. LLC: LOCATION: MultiDle Prooerties: Property is approximately 29.1 acres in The Anaheim Resort between Harbor Boulevard and Clementine Street, and Disney Way and Katella Avenue. The project site has approximate frontages of 1,500 feet on the south side of Disney Way between Harbor Boulevard and Clementine Street, 1, 185 feet on the west side of Clementine Street between Disney Way and Katella Avenue (excluding Fire Station No. 3 at 1713-1717 South Clementine Street), 728 feet on the north side of Kate II a Avenue between Clementine Street and a point 771 feet west of the centerline of Clementine Street, and 585 feet on the east side of Harbor Boulevard between Disney Way and a point 615 feet south of the centerline of Disney Way. The site is vacant except for the Anaheim Plaza Hotel at 1700 South Harbor Boulevard. Addendum to the Pointe Anaheim Initial Study and Mitigated Negative Declaration/Modified Mitigation Monitoring Plan No. 004 (Previously-Approved) - Request that the City Council determine that the previously-approved Addendum to the Pointe Anaheim Initial Study and Mitigated Negative Declaration/Modified Mitigation Monitoring Plan No. 004 are adequate to serve as the required environmental documentation for the proposed actions. Amendment to Development Agreement No. 1999-01 - Request to approve Amendment No. 2 to the First Amended and Restated Development Agreement No 99-01 regarding the commencement date of the Initial Development Phase of the Anaheim GardenWalk Project. Amendment to the Disposition and Development Agreement By and Between the City of Anaheim and Anaheim GW, LLC - Request to approve Amendment No. 2 to Disposition and Development Agreement by and between the City of Anaheim and Anaheim GW, LLC regarding the commencement date of the Initial Development Phase of the Anaheim GardenWalk Project. ACTION BY THE PLANNING COMMISSION: Determined that the Addendum to the Pointe Anaheim Initial Study and Mitigated Negative Declarationl Modified Mitigation Monitoring Plan No. 004, are adequate to serve as the required environmental documentation for the proposed actions. (5 Yes votes, Commissioners Flores and Velasquez absent) Recommended City Council approval of Amendment No.2 to the First Amended and Restated Development Agreement No. 99-01. (PC2005-161) Approved a related amendment to Conditional Use Permit No. 4078 (PC2005-160) to extend the required start of construction to February 26,2007. Sheri Vander Dussen, Planning Director, reported the owner of the Anaheim GardenWalk project had requested approval of amendments to the two agreements that govern development of the project. She indicated the agreements now required the developer to commence construction of the property by February 26 of this year and the proposed amendments would delay the start of construction by one year to February, 2007. She explained the applicant was currently preparing a proposal to amend the existing entitlements related to the mix and allocation of land and the extension would provide sufficient time to process the proposed changes to the project anticipated to be presented to the Planning Commission and Council in March and April of this year. The new plan would amend the original concept approved in 1999 and amended in 2002 and would still feature an upscale garden -...r i ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 13 theme shopping and entertainment destination. She added the project would include approximately 440,000 square feet of specialty retail, restaurants and entertainment uses including a multiplex movie theater. It also included four hotels with up to 1,266 hotel rooms of which up to 400 could be vacation ownership units. The concept of a large parking structure including overflow parking for the convention center remained part of the project and GardenWalk was also seeking entitlement for a subsequent phase that could include additional specialty retail restaurants and hotel rooms on the Anaheim Plaza Hotel and Suites property. Ms. Vander Dussen stated the project amendments would involve revisions to the development agreement and the disposition and development agreement that would include a comprehensive schedule of performance for the project and would change the interim time frame for the initial phases of development. She ended with the statement that staff was supportive of the proposed amendments to provide additional time to process the revisions to the plan. . Mayor Pringle opened the public hearing. William J. Stone, Excel Realty Holdings, the developer and the managing partner of Anaheim Gardenwalk LLC reiterated he was requesting an extension of the agreements. He indicated the final site plan and the request for the addendum to both the development agreement, the disposition and development agreement and the conditional use permit had been submitted to staff. He explained the environmental documentation had taken longer to complete and the reason for the extension was because the lender had requested it due to the current development loan on the property. He confirmed the project would be back to Council in March or April of this year and his intent was to begin the project in May to be open in October of 2007 and coincide with the City celebration. He added the project had been progressing well and there were exciting restaurants and other good retail lifestyle tenants interested in the project. Mayor Pringle remarked that in an earlier discussion with Mr. Stone, he had stated he did not anticipate delaying the development. Mr. Stone responded the project was already well underway and his plans were to move forward as expeditiously as possible. Council Member Sidhu had the same concern and Mr. Stone reiterated that the design documents were nearly complete and grading was scheduled for May emphasizing the project would move forward as planned. Council Member Sidhu asked for clarification on what the lender had requested. Mr. Stone indicated that if the development did not meet the deadline, the lender had requested a one-year extension. Since the GardenWalk project had not been granted the entitlements yet, the lender did not want to see a lapse occur with those entitlements. Council Member Sidhu confirmed with Ms. Vander Dussen that construction in May was feasible. With no other public testimony offered, Mayor Pringle closed the hearing commenting on the appeal of the project which would address the needs of visitors as well as residents in the project area, offering retail needs and quality restaurants. Council Member Sidhu moved to determine that the previously-approved Addendum to the Pointe Anaheim Initial Study and Mitigated Negative Declaration/Modified Mitigation Monitoring Program No. 004 was adequate to seNe as the required environmental documentation for the proposed actions, introduced Ordinance No. 6015 and moved to approve that certain Amendment NO.2 to the Disposition and Development Agreement with Anaheim GW, LLC, seconded by Council Member Chavez. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway I Hernandez and Sidhu. Noes - O. Motion carried. ORDINANCE NO. 6015 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM (I) approving Amendment NO.2 to First Amended and Restated Development Agreement No. 99- 01 by and between the City of Anaheim and Anaheim GW, LLC, as successor-in-interest to Excel -' ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 14 Pointe Anaheim, LLC (II) making certain findings related thereto, and (III) authorizing the Mayor to execute Amendment NO.2 for and on behalf of the City. Report on Closed Session Actions: None Council Communications: Council Member Hernandez requested and received a moment of silence in memory of Corretta Scott King. Council Member Galloway remarked that she had been attending the trial regarding the Anaheim Angels and the City and was proud of the representation by staff and its team of attorneys. She also congratulated the Mayor on his State of the City address commenting she was also proud of being part of the Council team. Council Member Chavez reiterated those comments stating the trial had made valid the City's strong argument and he was also pleased with the dignity and manner in which the trial was conducted. He also commented favorably on Mayor Pringle's address in which the Mayor portrayed the positive events happening in the City. Mayor Pringle also concurred with the caliber of the legal team engaged by the Council to safeguard the City's rights pointing out that one of the members of the team, Mr. Andy Guilford of Shepherd Mullin law firm had just been appointed to the Federal bench. He added that experts had determined a value to the loss of the promotional right to the use of the "Anaheim" name to be from $100 million to $300 plus million and that spending money to protect that asset was the right thing to do on behalf of the taxpayers of the City. He also referenced attending the US Conference of Mayors held in Washington DC last week remarking he had met with the Secretary of the Department of Transportation (DOT) to talk about DOT's funding and commitment to the ARTIC station. He reported Mr. Mineta and staff was aware of the project and committed to assist the City. He had also met with the majority and minority staff of the Appropriations Committee specifically on the ARTie project and indicated that Congresswoman Loretta Sanchez as well as Congressmen Ed Royce and Gary Miller had all communicated their support. In addition, the Mayor spoke of meeting with the Department of Homeland Security, specifically the Science and Technology office. He explained Anaheim had been picked with three other cities in the nation to be presented with new science and technologies related to homeland security and as a model city, Anaheim would provide feedback to Homeland Security of those new products. Mayor Pringle thanked Council Member Chavez for introducing him as he received and accepted recognition on behalf of the City from the Jewish National Fund. He remarked the State of the City address was available on the City's web site and the public could see some of the ideas presented as he highlighted the successes of this Council team. He thanked Council for the successes they shared and looked forward to new frontiers in the future. Adjournment: At 7:18 P.M. and with the consent of Council, Mayor Pringle adjourned the meeting of January 31, 2006. ~ ANAHEIM CITY COUNCIL MEETING MINUTES JANUARY 31, 2006 Page 15 Respectfully submitted I ;: J J / _~ ~..ttA Sheryll Schroeder, MMC City Clerk T I ~