2006/03/28
ANAHEIM, CALIFORNIA
CITY COUNCIL REGULAR MEETING
MARCH 28, 2006
The March 28, 2006 City Council meeting was called to order at 3:05 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: City Manager Dave Morgan, 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 March 24, 2006
at the City Hall exterior bulletin board.
With the consent of Council, Mayor Pringle moved to closed session indicating the Natural Gas
Management workshop would be heard after the closed session.
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
CLOSED SESSION:
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision <8) 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. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
Name of case: Kocheksaraei v. City of Anaheim, at al., Orange County Superior Court
Case No. 05CC0072.
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision <8) of Government Code Section 54956.9}
Name of case: Small v. People of the State of California, etc., et at, Orange County
Superior Court Case No. 05CC06368.
4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Significant exposure to litigation pursuant to subdivision (b) of Government Code
Section 54956.9)
Number of potential cases: one or more.
Existing facts and circumstances: significant land movement and property damage to
the properties located at 357,365 and 373 Ramsgate Drive; 4039 and 4043 Circle Haven
Road, 4033, 4039 and 4045 Maple Tree Drive.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 2
5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
Name of case: Jane Doe v. City of Anaheim, et al., USDC Case No.SAVC05-1202JVS.
6. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (a) of Government Code Section 54956.9)
Name of case: Alonso v. City of Anaheim, Orange County Superior Court Case No.
04CC04524.
7. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representative: Joel Fick
Employee organization: Anaheim Firefighters Association, Local 2899
8. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representative: Dave Hill
Employee organization: Anaheim Municipal Employees Association, General and Clerical
Units and Non-Represented Miscellaneous Management and Confidential Employees.
WORKSHOP - NATURAL GAS MANAGEMENT:
Marcie Edwards, General Manager of Anaheim Public Utilities Department, introduced Tom Petrie
of Petrie, Parkman and Co., a global energy consultant firm, to provide a perspective on the energy
picture over the next five years. He identified several forces shaping global petroleum prices
touching on the Middle East dynamics, economic growth in China and India, the maturing of
Russian exports and the changing political impacts. The existing oil production base, he stated,
was less than 85 million barrels per day and the timing of bringing on new projects to add to the oil
base would be critical as to how it affected oil prices which in turn impacts and drives natural gas
prices. He also identified factors affecting mid-term gas structure related to the Gulf of Mexico and
the hurricane cycle which meteorologists expect to last through the decade. He stated the impact
of Hurricanes Katrina and Rita to gas production was beyond anything previously experienced and
he believed one billion cubic feet of production would not be recovered.
He indicated there were five different regions producing gas in the United States and only one, the
Rocky Mountains, had the potential for growth that would make a difference for the future. He
emphasized contracting with Wyoming Gas had been a wise move in capturing immature gas.
In the long-term, he stated, liquefied natural gas was an important element and identified regions in
the North Slope/Prudhoe Bay and in artic Canada that had the potential for supplying gas in 8 t010
years. He ended his presentation by emphasizing energy would be a challenge for the next two to
three decades due to global demand growth, the weather cycle related to global warming and
hurricanes and geopolitics. He believed controlling supplies on a multi-year basis would build
optionality in the City's energy portfolio.
Marcie Edwards introduced Steve Sciortino, Wholesale Manager, to explain the Department's mid-
term gas strategy. Mr. Sciortino indicated gas had become a larger part of the Department's
portfolio as a result of getting involved with the Magnolia gas facility. He added, based on the
current cost of gas, $30 million was needed to operate the facility per year. He emphasized the
volatility in gas remarking for every dollar increase in gas prices, it reflected a $5 million hit on the
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 3
budget. The Department's strategy was to layer in gas in three pieces, the long term, such as gas
reserves purchased and long-term supply contracts that extended more than five years, short-term
contracts which the Department currently has the ability to do although with a limited supplier and
mid-term contracts that range from two to five years in length to take advantage of pricing benefits.
The Department's overall objective was to be able to take advantage of market opportunities when
they come and spread the risk of gas over a longer period of time which locked in a price the
Department could manage and also take advantage of timing in terms of market fluctuations.
Council Member Sidhu remarked that 18 percent of the current gas purchases were now in long-
term contracts with the rest in short term. He recommended when staff returned with mid-term
contracts, they also increased the long-term contracts to 25 percent. Marcie Edwards responded
the Department was working with Southern California Public Power Authority to bring back an
additional long-term commitment, whether it would be in April or later. She commented the
advantage of the mid-term strategy was to keep the City positioned so that increasing the long-
term portfolio was not excluded. Mr. Sciortino added that the intent was to get a third of the whole
gas supply in long-term gas but that currently there were not a lot of opportunities in the market as
gas suppliers were holding onto their reserves at this time. Mayor Pringle stated he would not set
arbitrary requirements to lock in long-term supply as he believed as the market shifted, staff would
determine where those opportunities exist and act accordingly.
Council Member Galloway thanked staff for the presentation and asked what it would mean to
Anaheim ratepayers to increase the City's portfolio by $200 million in five years. Ms. Edwards
explained when the original decision to invest in the Magnolia facility was made, an analysis of gas
prices, tolerances and what it would do to the budget was performed. There were higher priced
contractual obligations that were removed from the portfolio at the time the Magnolia facility was
added as a resource so the portfolio did not increase by $200 million and much of that was netted
out by the loss or reduction in contracted energy expenses.
Council Member Sidhu questioned the time line and cost benefits for mid-term contracts; Ms.
Edwards responded if the Department was able to lock into a five-year contract, it would probably
equate to a savings of $2 million per year. She added it was a small savings as the long-term
forecast for gas was not as low as hoped for due to the market factors identified by Mr. Petrie.
Mr. Sciortino added the other part of the portfolio was the long-term gas strategy and these
contracts would come back to Council for approval on a case-by-case basis as was done with the
contract with Wyoming Gas. The benefit was that it guaranteed a gas supply and at the lowest
price option. The disadvantage was to lock in for a 20 year commitment and experience a dynamic
drop in prices over the long haul. He stated the Department would be asking Council in April for
the ability to contract with more than just one short-term producer by signing an enabling
agreement in order to get approval up front and act on any pricing opportunity immediately rather
than coming back to Council for approval on each short-term contract and lose the pricing benefit
by not acting quickly enough. Council Member Sidhu asked what the cost would be; Mr. Sciortino
responded it could range from $175 million to $200 million dependent on the pricing but he
anticipated it to be approximately a $73 million commitment.
Mayor Pringle reconvened the Council session at 5:05 P.M.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 4
Presentations:
Deacon Raymond Duthoy, St Justin Martyr Church
Mayor Pro Tern Chavez
DC Human Relations Commission Annual Update - Marcus Gonzales
presented a copy of annual report and recognized Police Chief Welter for his
involvement in the hate crime network and other program services.
Mothers against Drunk Drivers presenting their annual Driving Under the
Influence Deuce Awards to Anaheim Police Officers - Bob Marlowe
recognized the efforts of outstanding Anaheim police officers.
AcceDtance of Other Recoanitions (To be Dresented at a later datel:
Invocation:
FlaG 58lute:
Proclaiming April 2006 as National Donate Life Month - April 29th, RunlWalk at
Cal State Fullerton, which was accepted by Chris and Peggy Coleman.
Proclaiming April 21-23, 2006 as YMCA National and Global Youth Service
Day
Recognizing Mary Rourke and Sister Cecilia Duran for their contributions to
the Luevano Foundation
Recognizing the Luevano Foundation Scholarship Recipients
Certificate of Recognition for Ray Martinez on his induction into the American
Disc Jockey Hall of Fame
Mayor Pringle called to order the Anaheim Redevelopment Agency and the Anaheim Housing
Authority in joint session with the City Council.
ADDlnONSlDELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (ALL MATTERS EXCEPT PUBLIC HEARINGS):
James Robert Reade spoke of the accomplishments of Dr. Hector Garcia
Greg Palmer, President of Anaheim Police Association, thanked Council for their work in the
recently negotiated labor contract and specifically in offering hiring bonuses to experienced police
officers to keep the Department competitive in attracting top quality personnel.
Three Cal State Fullerton students majoring in political science addressed Council on funding
needs for public university students. They asked the Council and the community to encourage
Assemblyman Tom Umberg and Senator Joe Dunn to support the Governor's proposed budget for
the California university system to prevent student fees from increasing. They also addressed
Hector Montoya's legislation, AB 2813 , which provided funding for students in higher education
institutions but limited that funding to students under 24 years of age. It was pointed out the
average age of students at Cal State Fullerton was 27. Mayor Pringle recommended the students
lobby the other five members of the state assembly representing Anaheim as well as
Congresswoman Lynn Daucher and Senator Bob Margate.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 5
Larry Rosenberg, co-director of Anaheim Ballet, invited the community to a performance on April
14 of a full length ballet and spoke of the successes of former Anaheim Ballet participants.
A resident utilizing the Anaheim Therapeutic Center (A TC) for 29 years asked that the Center not
be closed down and relocated.
June Langston, booster club member of ATC and mother of a handicapped son 44 years old who
had been attending the center for 38 years, informed Council the building was 73 years old and in
need of updating and requested Council's assistance.
An individual attending the Anaheim Therapeutic Center voiced his support for the Center and the
well-used parks and stores surrounding the area.
Tammy DeGroot, a parent with two children attending the Anaheim Therapeutic Center,
understood there had been some discussion to moving the Center to a different site and explained
why the children and parents preferred to remain in the current location but would also appreciate
a building update.
Lori Kellen, president of booster club for ATC, stated there was a Casino night fund raiser to
subsidize the various programs at the Anaheim Therapeutic Center on April 29th at the Brookhurst
Community Center and invited all to attend.
Ed Perez, Heritage Forum, remarked the Miss Anaheim of 2006 pageant had been held on March
19th at the Forum and had been a success with 800 in attendance.
William Fitzgerald expressed his belief that tickets for events at Pond, Grove and Stadium given to
Council persons should be considered taxable income.
Mayor Pringle requested the City Attorney address Mr. Fitzgerald's allegations. City Attorney Jack
White stated the City had contracts with professional sports teams and managers of other
entertainment venues which reserved some spaces for the City. He added there was a policy as to
how tickets could be distributed and that policy did not authorize the sale of tickets. He indicated
that most tickets available to Council Members were not used by them but given to charities or as
fund raisers for charitable events and that to his knowledge, that terms of the policy had been
upheld by the Council. Mayor Pringle stated Mr. Fitzgerald had the right to make comments during
oral communications but that in this instance, those comments were not correct.
Alma Ramirez offered a variety of comments on discrimination, hate crimes and the political scene.
JOINT COUNCIUREDEVELOPMENT AGENCY PUBLIC HEARING:
At this point in time, Mayor Pringle recessed the Anaheim Housing Authority to consider a joint
public hearing with the Anaheim Redevelopment Agency related to a Disposition and Development
agreement with Brookfield Olive Street LLC.
3. A Joint Public Hearing to consider approving a Disposition and Development Agreement
with Brookfield Olive Street LLC.
ANAHEIM CITY COUNCIL MEEnNG MINUTES
March 28, 2006
Page 6
RESOLUTION NO. 2006-052 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving a Disposition and Development Agreement with Brookfield
Olive Street LLC and making certain findings in connection therewith.
Elisa Stipkovich, Community Services Director, provided background on the Disposition and
Development agreement with Brookfield Olive Street LLC remarking staff had been working on this
project for some time. She explained the Agency had authorized staff to enter into a Purchase and
Sale agreement with the owner of the 18.3 acre industrial property at the northeast corner of Olive
and South Streets as the developer had requested assistance from the Agency in acquiring the
site. The developer was also acquiring two more acres for the 339 condominium housing project
of which 10 percent or 34 units were to be affordable moderate income condominiums. She stated
the Agency was purchasing the site from an institutional owner for $36 million at fair market price
and would be selling it to the Brookfield Olive Street LLC for the same cost less the public street
and park which would be retained and then conveyed to the City. She noted the City would be
receiving over $15 million in property tax over a 3D-year period from this project with $4.3 million
going towards affordable housing setaside funds. In addition, if the developer sold the units for
more than the estimates in the pro forma and as long as costs remained the same, the City would
receive 25 percent of any increase in revenue. She also indicated the Agency would provide for a
minimum of $750,000 to be used for down payment assistance for the 34 affordable moderate
income units.
Mayor Pringle confirmed with staff that the developer had requested the City's assistance in
purchasing the site due to a variety of timing issues and that the City was now selling the property
back to the developer for the same price less the public improvements; Ms. Stipkovich concurred,
remarking that the developer had also requested acquisition of the site in two phases to which the
City agreed, necessitating a short term loan with Phase 2 closing in 12 months.
Council Member Sidhu emphasized this property was not being acquired through eminent domain
but was being sold on a friendly basis and commented the project would be a great improvement
of a former industrial site for the citizens of Anaheim.
Mayor Pringle opened the public hearing and receiving no comments, closed the hearing. Council
Member Sidhu moved to approve Resolution No. 2006-052, seconded by Council Member
Chavez.
RESOLUTION NO. 2006-052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM approving a Disposition and Development Agreement with Brookfield Olive Street LLC
and making certain findings in connection therewith.
Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and
Sidhu. Noes - o. Motion carried.
Mayor Pringle recessed the Anaheim City Council to consider the Redevelopment Agency items
and reconvened the Council at 5:56 P.M.
CONSENT CALENDAR:
Mayor Pringle removed Item No's. 20, 22, 23, and 28 for further discussion and also indicated he
would abstain on Item No. 38. Council Member Sidhu moved to approve the balance of the
, ......
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 7
consent calendar Items 6 - 44. 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 - O. Motion carried.
6. Reject certain claims filed against the City.
C118
7. Receive and file the Housing and Community Development Commission meeting minutes
B 105 of February 13. 2006; Public Utility Board meeting minutes of February 2, 2006; Library
0117 Board meeting .minutes of February 13. 2006; Community Services Board meeting ,""inutes
of January 12. 2006; Housing and Community Development Commission meeting minut~s
of March 1. 2006; Park and Recreation Commission meeting minutes of Janu~ry 25. 2006;
Golf Commission meeting minutes of January 26.2006; and. Investment Portfolio R~port
for February 2006.
8. Approve the Acquisition Agreement for the purchase of real property located at 2312 East
3982 . Paradise Road and authorize payment of $10.000 to Barbara A. Sommars for the .
Lincoln .
Avenue - State College Boulevard to Sunkist Street Widening Project.
9. Approve the Acquisition Agreement for the purc.hase.of real property located at 1661 WE;)st
3983 Katella Avenue and authorize the acquisition payment of $2.170 to' Gilbert Moreno. and
Michie Moreno for the Katella Avenue Smart Street P~oj~ct.
10. Approve District Agreement No.12-538 for the BNSF Soundwall Materials - Caltr~ns
3984 Imperial Grade. Separation Project at the SR-90 and Orangethorpe/Esperanza.
11. Approve the Temporary Construction Easement Agreement for the property located at 111
3985 East Wakefield Avenue and a~thorize the paym~nt.of-$27.5o.0 to J~ime.Chav~z f9r the. . .
Gene Autry Way .(West) 1-5 Freeway Highway Project... .
. .. .
12. Approve the first-year option to the agreement with Orange County ~triping Service, In~.- for
1496 street striping maintenance services.
.". ..
13. Accept the proposal and enter into an agreement with Time Warner Telecom of California.
3986 LP. in the amount of $199.836. for internet service for a period of three years. with. three
one-year optional renewals. and authorize the Purchasing Agent to exerci$~ the renewal
options. all in accordance with RFP # 6706.
14. Waive the se.aled bidding requirement of. Council Policy..306 and authorize the Purchasing
0180 Agent to issue a purchase order to McMahan Business Interiors. in a not-to-exceed amount
of $66,766 'pIus tax~ .for furniture for'the Building Division.. . .
III . '; ~ . . . a .
15. Waive the sealed .bidcJing requirement of Gouncil P9licy ~06 and authorize the issuance of a
0180 purchase order to Capstone Turbine Corporation. in the amount of $26.870. for a four year
I .,.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 8
full service agreement for three Capstone Inicro-turbine generators located at the Fleet
Services yard and authorize the Purchasing Agent to execute the service .a.greenie'nt on a
yearly basis. .
16. Waive the sealed'bidding req.uirement of Co.uncil Policy 306 and authorize the Purchasing
0180 Agent to issue a purchase 'order to PMW Enterprise, in the amount of $25,191.87 (plus. .
applicable tax), for.~r~fflc monitori'ng equipment for the'~'PC)lice Department.
17. Waiv~ the sealE;td .bid requirement of Council Policy 306 and authortze the. issuance of e
0180 . purchase .order for a not-to-exceed amount of $400,000 to AmeriCan Asphalt S.outh,
Incorporated for slurry seal, all in accordance w.ith Bid #6619.
18. Accept the low' bjd of Harley Davidson Anaheim-Fullerton; 'fo'r the amount of $'1.00; 719.31' .
0180 'including tax, 'for five Police Harley-Davids'on motorcycles for the Fleet Services Division in
accordance with Bid #6722.
19. Accept the low bid with Azteca landscaping, in an amount not-te-exceed $<<;2.514.80; for
3987 landsCape maintenance at the Police Department Headquarters and ~ast . .
3988 Substation/Community Center and authorize the Purchasing Agent to execute the
agreements for a two year period. with three one year optional' renewals all in accordance
with Bid #6705.
;" . .. I.. I" I . ~
21. Approve. the donation Qf two concert b~nc;J timpani dru~s..~nd one bass drum. to .the.
0150 Placentia Symphonic Band.
24. Approve an agreement with the County of .Orange to~ transfer funds for the 20.05. ~dward . .
3989 Byrne Memorial Justice Assistance Grant (JAG) Progr~m.
. .
25. Approve a three year lease agreement 'with Gabriel Porras for a base: monthly rent of .
3990 $1 ,550 for the Rurpose .of utilizing wareho.use space at 1412 S. Central Park Avenue ~B for
the storage of property and evidence. .
26. Authorize the Fire Chi.ef or his designee to submit a'joint .grant application in conjunction
0129 with the cities of Orange and (3arden Grav.e. tt) the State of. Galifomia Office of.Traffic .
Safety for the Nc;>rth Net Fire Agenci~s Regional OTS. E.MS Grant Project and "e.xecute any
actions and documents for the purpose of 'obtaining and accepting said gr~nt funds 'if such
grant is awarded to the City. and upon award and acCeptan~ of such. grant. authorize the
increa~e of Fiscal.Year 2006/07 revenue and expenditu~e appropriations-by the amount of'
the grant award and authorize the Finance Oiredor to carry forward into future fiscal years
any unexpended app~opriation related thereto. . .'
27. Approv~ a lea~e with Earthlink. Inc. to permit installation of. radio equipm~nt antennae and
3991 other ~utual aid radio equipment on the roof of City Hall West as part of Earthlink's citywide
3992 wire.less broadband C9mmuni~tions network -and ;a~ttlorize the ..City..Man.ag~r or hi~
designee t~-~xecute .related documents and take such actions as are -necessary to
implement the lease; and approve a Fiber Optics lease with Earthlink to peri11it access .to
Anaheim'~ fiber a~ part of Earthlin~'s citywide wire,less. .~roadband communications network
and aut~orize' the Public Utilities General..~ana~er to e~ecute the Fiber O~tics Lease and
. ~"
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 9
related documents and take such action as are necessary to implement the Fiber Optics
Lease.
29. RESOLUTION NO. 2006-038 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
P124 ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties
or interests therein. (City Deed Nos. 10925-10927).
30. RESOLUTION NO. 2006-039 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
P124 ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties
or interests therein. (City Deed No. 10940).
31. RESOLUTION NO. 2006-040 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P124 OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real
properties or interests therein. (City Deed Nos. 10931-10936).
32. RESOLUTION NO. 2006-041 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P124 OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real
properties or interests therein. (City Deed Nos. 10922-10924).
33. RESOLUTION NO. 2006-042 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
P124 ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties
or interests therein. (City Deed No.1 0917).
34. RESOLUTION NO. 2006-043 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
P124 ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties
or interests therein. (City Deed Nos. 10941 & 10942).
35. RESOLUTION NO. 2006-044 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P124 OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real
properties or interests therein. (City Deed No.1 0918).
36. RESOLUTION NO. 2006-045 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P124 OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real
properties lor interests therein. (City Deed Nos. 10937 and 10938).
37. RESOLUTION NO. 2006-046 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P124 OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real
properties or interests therein. (City Deed Nos. 10928-10930).
38. RESOLUTION NO. 2006-047 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P110 OF ANAHEIM declaring its intention to vacate certain public streets, highways and
easements. (Abandonment No. ABA2006-00122). Public Hearing scheduled for April 25,
2006.
Mayor Pringle abstained.
--_.~....
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 10
39. RESOLUTION NO. 2006-048 RESOLUTION OF THE CITY COUNCIL OF THE CITY
0160 OF ANAHEIM authorizing the Chief of Police or his designee to submit a grant application
on behalf of the City of Anaheim to the U.S. Department of Justice, Bureau of Justice
Assistance, to participate in the FY 2006 State Criminal Alien Assistance Program
(SCAAP), authorizing the Chief to execute all required grant documents, and if awarded,
authorizing the acceptance of such grant on behalf of the City and amending the budget for
FY 2006-07 accordingly.
40. RESOLUTION NO. 2006-049 RESOLUTION OF THE CITY COUNCIL OF THE CITY
0112 OF ANAHEIM amending Resolution No. 2006-19 Nunc Pro Tunc.
41. RESOLUTION NO. 2006-050 RESOLUTION OF THE CITY COUNCIL OF THE CITY
0117 OF ANAHEIM authorizing the destruction of certain city records more than two years old.
(Treasurer's Office)
42. RESOLUTION NO. 2006-036 RESOLUTION OF THE CITY COUNCIL OF THE CITY
0175 OF ANAHEIM (i) reviewing the need for continuing the local emergency heretofore
proclaimed by the Director of Emergency Services of the City of Anaheim as ratified by City
Council Resolution No. 2005-17, (ii) determining that the need for continuing the local
emergency exists, and (iii) authorizing and ratifying certain acts and order by the Director of
Emergency Services.
43. ORDINANCE NO. 6018 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM
C280 amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to
zoning (Reclassification No. 2005-00169). (Property consists of 40.9 acres located on the
east side of Olive Street, between Santa Ana Street and South Street.) (Introduced at the
March 7,2006 Council meeting, Item #47)
44. Approve the regular meeting minutes of March 7, 2006.
END OF CONSENT CALENDAR:
20. Approve proposed amendment to the recently adopted Travel and Reimbursement Policy to
0114 limit the number of City boards and commissions eligible for reimbursement.
At the last meeting, Mayor Pringle indicated a Travel and Reimbursement Policy required to meet
State law had been passed and he had requested the City Attorney to review that policy as it was
applicable to City commissioners to clarify that certain boards and commissions were not entitled to
reimbursement from the City and therefore did not have to undergo a bi-annual ethics and conflict
of interest training. Discussion was held at that time and there was a recommendation to include
the Planning Commission and Public Utilities Board members under that policy. Mayor Pringle
indicated that since that time staff suggested including the Housing and Community Development
Commission, the Library Board, the Workforce Investment Board and the Deferred Compensation
Committee. He understood the Deferred Compensation Committee consisted of staff attending
training sessions on behalf of employees but questioned the inclusion of the other commissions.
Jack White, City Attorney, stated it had been his intent in redrafting this policy to reflect current City
practices and these boards and commissioners were being reimbursed either by policy or under
ordinance but that Council had the right to limit those commissioners eligible under the policy.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 11
Mayor Pringle suggested removing the Housing and Community Development Commission, the
Library Board and the Workforce I nvestment Board from eligibility under this policy and asked for
Council's perspective. Council Member Chavez asked if any reimbursement had been requested
by these boards; Elisa Stipkovich indicated it was her understanding that if staff were paying for
board members to attend a function such as the State of the City Address, they should be included
in the policy. Mr. White indicated the policy was pursuant to specific provisions in a new statute
and his view was if the City paid for a fixed fee at a seminar or training session and lunch or dinner
was included, there would be no reimbursement to commissioners attending as they did not have
any control over how much was spent as the fees were fixed. Mr. Morgan added that under the
Workforce Investment Board, the program required the Chairman of the board to attend training in
Washington, D.C. and there would be incidental costs. Under this new interpretation, the policy
was not needed for the Housing and Community Development Commission or the Library Board.
Mayor Pringle recommended additional changes to the policy; Section 6,82 relating to private
automobile. The Mayor did not feel mileage reimbursement should be given for mileage occurring
within the County of Orange. With the high cost of gas, Council Member Sidhu felt volunteers
should be reimbursed for travel within the County; Council Member Chavez concurred that mileage
reimbursement within the County of Orange should not be reimbursable. Mayor Pringle asked that
subsection f on page 5 be modified to read "that employee shall provide information to the member
as to what those expenses were." He also recommended the sentence "it is the policy of the City
that no member shall sustain personal monetary loss as a result of duties performed in the city" be
removed. Council Member Hernandez indicated these costs were the cost of doing business as a
volunteer and he did not think the boards and commissioners expected or wanted reimbursement.
Mayor Pringle moved to approve the modified policy, seconded by Council Member Hernandez.
Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and
Sidhu. Noes - O. Motion carried. Mayor Pringle requested the Commission members be notified
of the policy.
22. Authorize the Community Services Director to provide a gO-day legal notice to Los Angeles
1771 SMSA Limited Partnership (d.b.a. Verizon Wireless) that their exclusive license agreement
with the City for construction and operation of cellular tower facilities at Riverdale Park will
terminate on June 27,2006, as will any sublicenses or subleases entered into by Verizon
with other cellular companies.
23. Approve the First Amended License Agreement template between the City of Anaheim and
D150 individual telecommunication carriers for the purpose of constructing and operating cellular
facilities within City parks; authorize the Community Services Director to execute individual
agreements and any other related documents; and to take such actions as are necessary to
implement the agreements; authorize de minimus changes that do not substantially change
the terms and conditions, so long as such changes are determined to be de minimus by the
City Attorney; and authorize the Risk Manager to approve changes, as appropriate to the
indemnification and insurance provisions of the Master Agreement.
Terry Lowe, Community Services Director, stated Item No. 23 was the first amendment to a master
license agreement previously approved by Council to allow cellular facilities within Anaheim's City
parks. He indicated the agreement would enable the department to put conditions within the
agreement that would allow concurrent development of new ball field lighting along with new
cellular towers. He added what staff had proposed and Council approved was that future cellular
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 12
facilities on city parks would be incorporated into the lighting system. This amendment would allow
staff to make adjustments in schedule and construction to build the facilities concurrently but at the
same time to minimize any downtime in the parks. In addition, if changes were required to the
agreement that were not substantial in nature, those changes could be made, including minimal
changes to insurance provisions, which Mr. Lowe commented, would allow for a business-friendly
relationship with the carriers.
Mayor Pringle pulled the items for separate discussion to highlight the program which made use of
the City's assets to provide cellular services and at the same time add to the aesthetic value of the
community. Mayor Pringle questioned section 3.11 which discussed government approvals and
asked what those approvals were. Mr. Lowe stated it would give the City latitude in the event there
were changes at the county, state or federal level. Mayor Pringle commented on the provision
specifying right of entry into the City parks; Mr. Low stated that provision would allow the City to
have some control over when maintenance was scheduled in City parks in the event the park was
heavily used. He added for emergency maintenance there was leeway within the agreement to
allow for it. Mayor Pringle suggested giving the department greater latitude to allow for additional
work beyond the 7:00 A.M. to 3:00 P.M. schedule if the park was not in use by adding the
modification that additional time could be scheduled through the Department of Community
Services. He also referenced Item 10.1 which discussed advantages in technology. This provision
stated as technology advanced and improved and as improved antennas were developed which
were routinely used in licensed business, the City may require it in its reasonable discretion.
Mayor Pringle confirmed the City had approval of the antenna installation and felt the industry
would take advantage of new technology in order to retain its business clientele and he did not feel
the City should dictate advances in technology. Council Member Chavez was supported of Mayor
Pringle's recommendation. Mayor Pringle asked for clarification to Section 23; Mr. White
responded it addressed the fact that another governmental entity, whether county or state, could
demonstrate they had the more paramount use of the site and the right to condemn the property,
although he stated that was not likely to occur.
Mayor Pringle commented that Item No. 22 was a related matter in that it would give legal notice of
termination to one telecommunications carrier in accordance with their lease to provide access to
more competition coming into the market place. Mr. Lowe indicated the carrier, Verizon, was
welcome to participate under the master lease agreement.
Mayor Pringle moved to approve Item No. 22 and modified Item No. 23, seconded by Council
Member Galloway. Council Member Sidhu was supportive of this program remarking that it would
illuminate City parks and generate $140,000 per year of extra income to be used for the
maintenance of some of these parks. Mr. Lowe added the program was being applied to six parks
at this time. Roll call vote: Ayes - 5; Mayor Pringle, Council Members: Chavez, Galloway,
Hernandez and Sidhu. Noes - o. Motion carried.
28. Approve the nomination process and the initial list of potential honorees for the
B 105 Anaheim/OC Walk of Stars, a project designed to coincide with the City1s Sesquicentennial
celebration in 2007.
Mayor Pringle stated the Sesquicentennial Commission was referring a proposal to establish the
Anaheim Walk of Stars along Harbor Boulevard and Central Way and create a process by which
honorees that had been part of the Anaheim life be recognized. John Nicoletti, External Affairs
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 13
Manager, added the Commission was also submitting 150 names for Council's approval so they
may be solicited as potential candidates for the Walk of Stars. It was pointed out that future
Councils could broaden and modify the list.
Council Member Galloway moved to approve Item No. 18, Council Member Sidhu seconded the
motion, asking how many spaces were available and had a design been established. Mr. Nicoletti
indicated there were many spaces available as the walk of stars could connect the resort to the
Platinum Triangle in the future and at this time the Commission was waiting to see how many stars
would be available. He added funding for the stars, at $15,000 per star, would be coming from the
individuals sponsoring the stars and there would be no cost to the City. Council Member Galloway
asked if the names had a direct link to Anaheim or Orange County and would there be a priority to
those names with a connection to Anaheim. The response indicated the Commission was looking
Countywide for individuals recognized for this involvement with Anaheim. Roll call vote: Ayes - 5;
Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and Sidhu. Noes - o. Motion
carried.
PUBLIC HEARING:
45. CECA MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PLAN
C350 NO. 125 lPREVIOUSLY-APPROVEDl.DEVELOPMENT AGREEMENT NO. 2004-00002
OWNER: CREA Nexus Anaheim Corners, LLC, 9381 Judicial Drive, Suite 100, San
Diego, CA 92121
AGENT: David Slaughter, Fuscoe Engineering, 16795 Von Karmen, Irvine, CA 92606
LOCATION: 1801 East Katella Avenue: Property is approximately 6.3 acres and is located
at the northwest corner of Katella Avenue and State College Boulevard (Stadium Lofts-
Anaheim).
Development Agreement No. 2004-00002 - Request to amend a Development Agreement
between the City of Anaheim and CREA/Nexus Anaheim Corners, LLC to allow residential
condominiums.
Tentative Tract Map No. 16618 - Request to establish a 1-lot, 390 unit residential mixed
use condominium subdivision.
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved the CECA, recommended Council approval of the Development Agreement and
approved the Tentative Tract. Vote: Ayes - 7.
Sheri Vander Dussen, Planning Director, stated Item No. 45 was an application requesting to
amend a development agreement for a previously approved project, the Stadium Lofts in the
Platinum Triangle. The request was to record a tentative map and amend the development
agreement to allow the units to be converted to condominiums. She noted Stadium Lofts was the
first mixed use project approved in the Platinum Triangle, was located at the northwest corner of
State College and Katella and would consist of 390 units and a little more than 10,000 square feet
of retail and restaurant space. She added the project was under construction and occupancy of
the first units was expected to happen later this spring. The proposed amendments would change
references from apartments to condominiums throughout the agreement and insert the tentative
tract map within the previously approved agreement and maintenance obligations had also been
modified to reflect that the project was ownership as opposed to rental. Because the loss of rental
units in the Platinum Triangle could be a concern, she stated a brief analysis demonstrated there
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 14
had been 5,312 units approved so far in the Platinum Triangle. This compared against a total of
9,500 units ultimately permitted with about 20 percent of the units approved so far designated
rental units in the Archstone Development as well as the BRE project. She noted the Lennar A-
Town project included almost 2,700 units and there could be a rental component in that project as
well. Ms. Vander Dussen had also received an application for approximately 2,000 more dwelling
units in the Platinum Triangle but none were proposed as rental units. She added as property
values in the Platinum Triangle escalated it had become more difficult to offer rental units in this
area and while a variety of rental and ownership units was desirable, staff believed the proposed
amendment would maintain consistency with the goals of the Platinum Triangle and was consistent
with the other projects already approved in the Platinum Triangle and recommended approval.
Mayor Pringle opened the public hearing. The applicant, Mr. Heffner, explained the requested
changes. As background, he stated the developer was one of the first participating in the Platinum
Triangle and had begun designing a project before the City passed its General Plan update and
before the Platinum Triangle came into existence. It was the developer's understanding Council's
philosophy was to have the market drive development in the Platinum Triangle. He indicated with
an equity partner, the project was designed as a four-story, wood frame construction with the idea
of it being rental property but with the changing market and the interest they had already received
from buyers wanting to buy in the Platinum Triangle, they were requesting this amendment. He
added there was no doubt the project would be successful as a rental project as it would be built to
condominium specifications with stainless steel appliances and granite countertops pointing out the
unit rental prices would have fallen in the range of $1,000 to $3,000 per unit. On the for sale side,
the units would sell from a range of $300,000 to $700,000 but he emphasized the market would
determine the actual sales price. Mr. Heffner indicated the project had been approved early on
before the City's design guidelines were in place and as a result there were additional construction
costs to bear, one of the risks they were willing to take being one of the pioneer builders in the
Triangle. He requested Council's approval of the amendment.
Responding to Council Member Sidhu's question as to whether construction costs had increased
since he had purchased the site, Mr. Heffner stated the developer would make a profit as rental
units and would also make a profit if the units were for sale. He added at the time they began the
process, he was looking at long-term rental income but with the changing market conditions, he
wanted to take advantage of an opportunity to sell his units as condominiums.
With no other public comment offered, Mayor Pringle closed the hearing remarking that much of
the success of the Platinum Triangle resided with the Planning staff but also with the pioneers and
developers who participated early on and took the risk without knowing what the City guidelines
would be. He added that property values had quadrupled in the Triangle and that the units, if for
sale, would be one of the best values for someone to buy in that area as they were being built to
condominium standards. He added while the City was interested in encouraging rental
development Citywide he would have a hard time forcing developers to build rental units if they
would do better with "for sale" units. Council Member Sidhu moved to approve the CEOA Mitigated
Negative Declaration and Mitigation Monitoring Plan No. 125 (Previously Approved) and to
introduce ORDINANCE NO. 6019, seconded by Mayor Pringle.
Council Member Galloway appreciated the developer's interest in the City but stated there was a
need for rental units for 90 percent of the residents who could not afford to buy in the City and she
could not support the revisions.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 15
Council Member Chavez also thanked the developer for choosing to build in Anaheim and
investing in the City but also referenced the need for affordable housing as well as rental units. He
believed if the units changed to condominiums, a significant portion of the City's demographics
would lose out.
Council Member Hernandez was supportive of the revision and thanked the developer for taking an
early risk and making an investment in Anaheim. Council Member Sidhu concurred with the
developer's property rights to build for sale units.
Mayor Pringle commented that every member of Council appreciated the developer's interest in
moving forward with the project. He pointed out that as rental units, there would have been a
requirement for an income between $90,000 - $100,000, which would have restricted many from
participating. He emphasized the high cost of property in the Platinum Triangle and the fact there
was not a requirement for affordable housing in that area, indicating he was supportive of the
recommended changes
MOTION: Approve CECA FINDING: CECA Mitigated Negative Declaration and Mitigation
Monitoring Plan No. 125 (Previously Approved)
ORDINANCE NO. 6019 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM
(i) approving Amendment No. 1 to Development Agreement No. 2004-00002 by and between the
City of Anaheim and CREAlNEXUS Anaheim Corners, LLC, (ii) making certain findings related
thereto, and (iii) authorizing the Mayor to execute Amendment No. 1 for and on behalf of the City.
Roll call vote: Ayes - 3; Mayor Pringle, Council Members: Hernandez and Sidhu. Noes - 2;
Council Member Chavez and Galloway. Motion carried.
Report on Closed Session Actions: None
Council Communications:
Council Member Hernandez reported on his recent League of National Cities trip to Washington
D.C. attending seminars put on by the conference host and meeting with various elected
representatives. Returning with information to share with the Community Services Director related
to possible tax credits for first time home buyers, Council Member Hernandez stated the
conference had been interesting and informative with inspiring speakers. He spoke of meeting
with Congresswoman Loretta Sanchez's staff member Amy Akiano on the issue of veterans and
housing opportunities for disabled veterans. Ms. Akiana was personally familiar with the
challenges of the handicapped and assured him that Congresswoman Sanchez would be in
contact.
Council Member Galloway commented on her trip to Washington D.C. as well reporting she had
lobbied for funds for ARTIC and also for the Anaheim Family Justice Center and the Anaheim
Therapeutic Center. She remarked it was very clear that Anaheim's reputation for innovative
thinking had preceded them and she felt staff members in Congressman Ed Royce's office and
Loretta Campbell's office were aware of and interested in their efforts. Council Member Galloway
also encouraged the youth who had demonstrated at City Hall to be involved in what happens in
their city, county and state.
ANAHEIM CITY COUNCIL MEETING MINUTES
March 28, 2006
Page 16
Council Member Sidhu encouraged citizens to support AB 1913, Bonnie Garcia's legislation to
track transient sex offenders through the use of global positioning satellite systems. Residents
could contact Ms. Garcia director or through their local assembly person.
Mayor Pro Tem Chavez commented on his trip to Washington D. C to attend the National League
of Cities conference and to lobby for funds for ARTIC and the Anaheim Therapeutic Center. He
felt some progress had been made and that the elected representatives were receptive to lobbying
efforts. He also distributed a memo to Council as a result of his research on the Miss Anaheim
pageant. He indicated that in 1990, Council approved one pageant program, Miss Anaheim
Pageant affiliated with the Miss California and Miss America system as the City's official pageant
and hostess.
Mayor Pringle reminded all of the Boys and Girls Club annual fund-raiser being held on April 22 at
the Grand California Hotel. He also referenced a friend and past student of his, Jordan Branman,
now working as new staff person in the Orange County Business Council.
Adjournment:
At 7:40 P.M. with the consent of Council, Mayor Pringle adjourned the meeting of March 28, 2006
Re~~tfUIIY SUbmi~,.
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/Sheryll Schroeder, MMC
City Clerk