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2010/09/14ANAHEIM CITY COUNCIL REGULAR ADJOURNED MEETING OF SEPTEMBER 74, 2010 The regular City Council Session of September 14, 2010 was called to order at 3:00 P.M. and adjourned to 3:30 P.M. for lack of a quorum. The September 14, 2010 regular adjourned Council meeting was called to order at 3:41 P.M. in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. A copy of the agenda was posted on September 10, 2010 on the kiosk outside City Hall. PRESENT: Mayor Curt Pringle and Council Members: Lord Galloway, Bob Hernandez, Lucille Kring and Harry Sidhu. STAFF PRESENT: City Manager Tom Wood, City Attorney Cristina Talley, and City Clerk Linda Andal WORKSHOP — AFFORDABLE HOUSING STRATEGIC PLAN — ANNUAL REPORT Community Development Executive Director Elisa Stipkovich provided Council with the annual progress report on the Affordable Housing Strategic Plan (AHSP). Established in 2005, she stated the plan goal was to supply 1,200 affordable housing units by the end of a four year period. In 2009, Council extended the plan and modified the goal to reach 3,112 units by year 2014. She explained that at that time, the City faced the threat of the state taking $8.2 million in redevelopment funds and based on that potential threat, created an alternative goal which reduced the affordable units by 712. The State impact was, in fact, $5.2 million which reduced the goal of 3,112 by 300 units to a total of 2,812 to be reached by year 2014. She added the City also diversified the plan to include two new categories, rehabilitation of rental units and for -sale housing. Projects Completed /Underway /In Process At present, Ms. Stipkovich remarked, the City had 1,479 units either completed or underway with a goal of 1,333 units yet to be completed. The rental new construction goal was 2,112 units with 1,266 in process or completed, leaving 886 remaining. The rental rehab category was in the beginning stages with a goal of 284 units and only 16 completed. A goal of 400 for -sale units was also established, with 237 projects in process and 163 yet to be completed. Pradera, a project by The Related Companies, was recently completed, containing 100 percent affordable units and nearly 100 percent leased. Ms. Stipkovich announced Pradera's grand opening was scheduled for the end of this October. Another project by Anaheim Supportive Housing for senior adults called Integrity House was also completed. Ms. Stipkovich explained this was a conversion of a motel project on Beach Boulevard, and offered 49 studio units for developmentally disabled adults. This, she added, was not a ground lease; however, the City provided Section 8 rental assistance as well as park fee funding. Bellview project developed by Global Premier would provide 46 units, 100 percent affordable and received no funding from the City. Mayor Pringle remarked that this particular project had caused some concern to neighbors at one time, asking how staff had addressed those concerns. Ms. Stipkovich responded staff had worked with the developer and the community to insure walls around the perimeter of this project were higher and enhanced landscaping and other concessions were offered as well. Mayor Pringle asked if this developer who had not needed City funding assistance was considering other projects in the City. Ms. Stipkovich replied there had been some discussion of a project on Wilhelmina but because of concerns expressed by the community regarding the Council Meeting Minutes of September 14, 2010 Page 2 of 12 historic nature of the units in that area, the developer may be reconsidering a rehabilitation type project. Another project, she pointed out, was two separate developments on Manchester and Orangewood, for a total of 119 affordable units. Staff was still working on closing that project with the developer. The South Street project was a recent project Council approved for the Related Companies, consisting of 92 units with a ground lease with the City and 100 percent affordable. She added, the Department had been notified that the State preliminarily selected this project to be funded in the next round of tax credits and she anticipated construction could begin next February. Staff was also continuing to negotiate on the Cherry Orchard project, which was the old Lincoln Inn, and staff would be returning to Council with a revised agreement for that site. Under rental rehab, Casa del Sol, a non - profit entity for developmentally disabled persons, acquired the site with assistance of a loan from the City, and would rehab four units for 100 percent affordable for special needs persons. Colette's Children's Home, another non - profit developer, would rehab a four -unit property with assistance of a loan from the City, a project for single homeless women with children. As part of the rehab efforts, Hermosa Village, which now provided over 500 affordable units, had several properties in that area that continued to pose problems to the community. Staff was anticipating returning to Council with Phase V, specifically taking into account some of the properties that posed security and maintenance challenges. One of the department's newest projects, done in conjunction with South Street project was Avon /Dakota and since June staff had closed on the purchase of one of the properties in Avon Dakota, made offers to three others, one of which was accepted and was waiting for decisions on the other two. She added that on tonight's agenda was a request to use some of the funds allocated to Avon /Dakota (about $500,000) and approve a rebate incentive program for owners of properties in Avon /Dakota neighborhood. Homeownership, stated Ms. Stipkovich, was a significant aspect of the AHSP. The largest was Colony Park, a Brookfield Development with Phase 1 and 2 nearing completion and Phase 3 scheduled to begin soon. Staff was proposing Phase 4, a 12 -acre parcel be slated for an RFP for a for -sale developer. She added that a year ago an RFP was issued for a mixed income rental project which received no acceptable proposals. Since it appeared the rental market was weaker than for -sale developments, staff was recommending an RFP be used to complete the last portion of Colony Park. She added there were several other parcels under negotiation, Brookfield had acquired parcel B and C as part of the Packing House project to develop 88 units of which 22 would be affordable. She added staff was working with Brookfield on Parcels F and G as well. Council Member Galloway remarked on the success of the Hermosa Village project asking if staff saw the Avon Dakota properties in that same manner. Ms. Stipkovich responded that the goals of the neighborhood were the same as those for Hermosa Village; however, staff might recommend different paths to get to that point. ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION: None At 4:01 P.M., Council adjourned to closed session to consider the following matters: Council Meeting Minutes of September 14, 2010 Page 3 of 12 CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of Case: Priceline.com, Inc., et al. v. City of Anaheim, et al., Orange County Superior Court, Case No. 30- 2009 - 00244120 and related cases 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of Case: Alicia Cortez Gomez et al. v. City of Anaheim et al., OCSC Case No. 30- 2009 - 00122292 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property: 915 East Orangewood Avenue and 2121 South Manchester Avenue Anaheim Housing Authority /Redevelopment Agency Negotiators: Elisa Stipkovich Negotiating Parties: Anaheim Housing Authority, Anaheim Redevelopment Agency, Orangewood Vistas and Manchester Park Under Negotiation: Price and terms At 5:07 P.M., the City Council session was reconvened. Mayor Pringle announced that Mayor Pro Tern Harry Sidhu would be absent from the remainder of the meeting, having departed for family reasons. Invocation: Pastor Ken Anderson, Grace Lutheran Church Flag Salute: Council Member Bob Hernandez Presentations Recognizing the 2009 Mills Act recipients Providing background, Mayor Pringle reported the Anaheim Colony Historic District had been established in 1997, a 2,127 square mile area in the downtown district. In order to encourage preservation of these homes and buildings, Council had created a local Mills Act program in 2000 which allows for a property tax reduction for qualifying historic properties. At this time, he noted, 271 sites had qualified as historic structures. Executive Director Elisa Stipkovich introduced the 2009 Mills Act recipients. Acceptance of Other Recognitions (To be presented at a later date): Proclaiming September 17 - 23, 2010, as Constitution Week Sharon Corsiglia accepted the proclamation on behalf of the Mojave Chapter Daughters of the American Resolution. At 5:14 P.M., the Anaheim Redevelopment Agency and the Anaheim Housing Authority was called to order for a joint public comment session. ADDITIONS /DELETIONS TO THE AGENDAS: Staff requested Item No. 6, a joint public hearing between the Agency and the Council as it related to the Anaheim Westgate Center, be withdrawn from tonight's agenda to be reconsidered at a future date. Council Meeting Minutes of September 14, 2010 Page 4 of 12 PUBLIC COMMENTS (all agenda items except public hearings): A spokesperson for Rosa Gutierrez (3125 West Del Monte Drive) explained Mrs. Gutierrez built a four -foot fence on her property without a permit as she was unaware a permit was needed. As the fence exceeded the height requirement for front yards, Mrs. Gutierrez was told to remove the fence by City staff. Over 60 signatures from neighbors in support of the fence was provided to Council. Mayor Pringle thanked the speaker for his remarks, explaining there were other options available to Mrs. Gutierrez rather than removal of a fence not built to City code. The Planning Director and Code Enforcement Manager were present and available to meet with the Gutierrez family and discuss their options. David Lake, resident, volunteered a number of traffic concerns, neighborhood nuisances and possible solutions. Doug Mangione, IBEW, remarked that electrical work in the convention center should be performed by certified electricians not C10 contractors. Regarding Item No. 19, he was initially concerned that Tiger Electric would be doing work in the convention center but now understood that the company was providing electrical equipment. Charles Ahlers, Anaheim /Orange County Visitors & Convention Bureau, reported on marketing successes: the Produce Marketing Association had moved their 2012 meeting from Houston to Anaheim and the American Cardiology Association was considering returning to Anaheim from Las Vegas. Rob Nothoff, announced OCCORD was hosting a non - partisan candidates forum for Anaheim city council candidates on September 22, 6 -8 p.m. at the Islamic Institute of Orange County. The forum was open to the public and would be moderated by the League of Women Voters. Mark Whitaker, 13 year resident, offered his budget expertise for the Budget, Investment and Technology Commission. James Robert Reade offered comments regarding gang activity. Alma Ramirez, resident, commented on gang structure and illegal activities. Mr. Garcia, resident, also commented on Anaheim's successful gang enforcement JOINT PUBLIC HEARING (Redevelopment Agency and City Council) 6. A joint public hearing to consider the Second Amendment to the Disposition and Development Agreement between the Agency and Zelman Anaheim, LLC to incorporate certain terms and conditions relating to the development of the Anaheim Westgate Retail Center (Center) and to consider a Donation Waiver and Release Agreement with The Walt Disney Company to receive the donation of the sun icon from the California Adventure Park, to incorporate into the Center. Council Meeting Minutes of September 14, 2010 Page 5 of 12 City Council Action: Approve the Second Amendment to the Disposition and Development Agreement, in substantial form, between the Anaheim Redevelopment Agency and Zelman Anaheim, LLC. This item was continued to a future date by staff. No action taken. CONSENT CALENDAR: Mayor Pringle removed Item No's. 30 and 31; Council Member Galloway removed Item No. 23. Mayor Pringle asked to be recorded as abstaining on Item No. 25, due to a potential conflict of interest. Council Member Kring moved to waive reading in full of all ordinances and resolutions and to adopt the balance of consent calendar in accordance with the reports, certifications and recommendations furnished each council member and as listed on the balance of the consent calendar, seconded by Council Member Hernandez. Roll Call Vote: Ayes — 5: Mayor Pringle and Council Members: Galloway, Hernandez, and Kring. Noes — 0. Absence —1: Council Member Sidhu. Motion Carried B105 9 • Receive and file the minutes of the Library Board meeting of June 14, 2010, Golf Commission meeting of July 22, 2010, Sister City Commission meeting of July 26, 2010 and Public Utilities Board meeting of July 28, 2010. 10. Award the contract to the lowest responsible bidder, All American Asphalt, in the amount of $455,277, for the La Palma Avenue Street Improvements project from Clementine Street to Anaheim Boulevard, authorize the Finance Director to execute the AGR -6422 Escrow Agreement pertaining to contract retentions and increase the Department of Public Works fiscal year 2010/11 revenue and expenditure appropriations by $506,168 for the American Recovery and Reinvestment Act funding. 11. Accept the bid of Valley Cities /Gonzales Fence Company, in the revised amount of D180 $292,934.49 (including tax and delivery), for the purchase of steel fencing, gates and gate operators for the Convention Center, in accordance with Bid #7418. 12. Accept the low bid of Cabral Roofing & Waterproofing Corporation, in an amount not to D180 exceed $384,975, which includes a 10% contingency, for roofing services at the Central Library, in accordance with Bid #7424. 13. Accept the proposal from Bauer Compressors, Inc., in the amount of $1,401,570 D180 (including taxes), for the purchase of air purifying respirators for the Police Department, in accordance with RFP #7409. 14. Waive the sealed bid requirement of Council Policy 4.0 and ratify the issuance of a D180 purchase order to General Pump Company Inc., in the amount of $54,522.26 (including taxes), for the emergency repair of Well 39 turbine pump for the Public Utilities Department. 15. Waive the sealed bid requirements of Council Policy 4.0 and approve the Fourth Amendment to Agreement with Turbo Data Systems, Inc., extending services for an AGR- 3611.4 additional three months, at a cost of $19,935 per month for parking citation payment processing services. 16. Approve and authorize the Director of Public Works to execute the Contract Change Order No. 1 and any related documents with Autobahn Construction, Inc., in the amount AGR- 5966.0.1 of $13,330.70, for the Sycamore Street Improvements project from Clementine Street to Anaheim Boulevard. Council Meeting Minutes of September 14, 2010 Page 6 of 12 17. Approve an Agreement for Acquisition of Real Property with Mathew and Dolores Biazevich, in the acquisition payment amount of $348,000, for property located at 1636 AGR -6423 South Brookhurst Street for the Brookhurst Street Widening from Ball Road to Katella Avenue project (R/W ACQ2009- 00347). 18. Approve and authorize the Director of Community Services to execute Amendment No. AGR- 4839.1 1 to Property Operating Agreement between the Muzeo Foundation, Anaheim Redevelopment Agency, and the City for the continued operation of the Muzeo (related to Agency Item No. 03). 19. Approve the Electrical Utility Agreement with Tiger Electric, Inc., to provide various AGR -6424 electrical services, on a non - exclusive basis, to persons at the Convention Center who require such services in connection with events. 20. Approve the Amended and Restated Agreement with the Anaheim /Orange County Visitor & Convention Bureau (VCB) authorizing the VCB to provide the services AGR- 2990.A necessary to promote Anaheim as a premier tourist and trade show /convention destination (approval contingent on the approval of Public Hearing Item No. 38, Resolution of Formation). D154 21. Approve the 2011 Health and Welfare Plan Rates and authorize the Human Resources Director to execute all required provider agreements on behalf of the City. 22. Approve and authorize the City Attorney to execute an attorney services agreement AG R-6425 with the firm of Gibson Dunn & Crutcher, LLP, to provide legal services to the City and increase the City Attorney's fiscal year 2010/11 budget as necessary. 24. Award, approve and authorize the Public Utilities General Manager to administer and execute master construction agreements with thirteen qualified bidders for as- needed construction services, waive any irregularities in their documents and authorize the D182 Public Utilities General Manager to take the necessary actions to implement the agreements. 25. Approve and authorize Public Utilities General Manager to execute the Memorandum of Understanding (MOU), and any related documents, by and among the Orange County Water District, Yorba Linda Water District, Irvine Ranch Water District, and the City for AGR -6427 the processing and consideration of a request to annex land into the Orange County Water District, more specifically as pertains to Anaheim for an area in the eastern portion of the City, and associated California Environmental Quality Act (CEQA) evaluation and documentation, and to take any necessary actions to implement the MOU. Roll Call Vote: Ayes — 3: Council Members: Galloway, Hernandez and Kring. Noes — 0. Abstention — 1: Mayor Pringle. Absence — 1: Council Member Sidhu. 26. Approve the Annual Retail Electric Providers Report and the attestation as to the accuracy of the Annual Retail Electric Providers Report; approve the annual Power D182 Content Label and authorize the preparation and submission of the 2010 quarterly projections of the Power Content Label; and authorize the Public Utilities General Manager or her designee to execute and submit the attestation and any related documents required by the California Energy Commission. Council Meeting Minutes of September 14, 2010 Page 7 of 12 27. RESOLUTION NO. 2010 -143 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing and approving the improvement and expansion of T108 the Anaheim Convention Center, the refunding of certain obligations, the financing thereof and other matters relating thereto (approval contingent on the approval of Public Hearing Item No. 38, Resolution of Formation). 28. RESOLUTION NO. 2010 -144 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Letter of Understanding between the Anaheim D154.4 Firefighters Association, Local No. 2899 and the City of Anaheim. RESOLUTION NO. 2010 -145 A RESOLUTION OF THE CITY COUNCIL OF D154.5 THE CITY OF ANAHEIM approving a Letter of Understanding between the International Brotherhood of Electrical Workers, Local 47, and the City of Anaheim. 29. RESOLUTION NO. 2010 -146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Public Utilities General Manager following R100 submission of the application on behalf of the City of Anaheim to the United States Department of Interior, Bureau of Reclamation for its CALFED Water Use Efficiency Grant Funding program, to accept such grant funding award and to execute such agreements and documents as are necessary to accept such grant funding on behalf of Anaheim. 32. RESOLUTION NO. 2010 -147 A RESOLUTION OF THE CITY COUNCIL OF P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed No. 11373). 33. RESOLUTION NO. 2010 -148 A RESOLUTION OF THE CITY COUNCIL OF B105 THE CITY OF ANAHEIM repealing Resolution No. 95R -131 relating to qualifications for membership on the Investment Advisory Commission. 34. Approve minutes of the Council meetings of August 24, 2010 and August 31, 2010. END OF CONSENT CALENDAR 23, Waive City Council Policy 4.1 and authorize the City Manager to execute an agreement AGR -6426 with J.D. Power and Associates, in an amount not to exceed $122,568, to conduct a Citizen Satisfaction Survey. Deputy City Manager Sheri Vander Dussen reported this item was a proposal to engage the firm of JD Power & Associates for additional customer service surveys. In 2008, the City contracted with this firm for surveys of customers in the Police Department, Planning and Public Utilities departments. As a result of the input received and their recommendations for improvement, all three departments had taken a number of steps believed to have improved the level of customer service offered. She added staff was now proposing to survey additional departments, specifically customers who played on either of Anaheim's golf courses, as well as participants in adult sport leagues, recreation classes and individual participants who attended an event or convention. The contract was not to exceed $123,000 and if Council approved, staff would work with JD Power on a schedule to conduct that survey work. The work would be accomplished via email or electronically as opposed to telephone surveys as done in 2008. Council Meeting Minutes of September 14, 2010 Page 8 of 12 Mayor Pringle was supportive of this effort, pointing out all three departments were enterprise funds and no costs would be generated through the general fund. Council Member Galloway supported these efforts as she felt there were measures and improvements made because of the 2008 surveys which saved time and money, increased service, and was well worth the money spent. Council Member Kring would not support the request feakng the funds could be spent elsewhere because of budget constraints realized in this tough economic time. Council Member Hernandez moved to approve Item No. 23, seconded by Council Member Galloway. Roll Call Vote: Ayes — 3: Chairman Pringle and Council Members: Galloway and Hernandez. Noes —1: Council Member Galloway. Absence —1: Council Member Sidhu. Motion Carried. 30. RESOLUTION NO. 2010 -149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring the results of the Special Mail Ballot Election for the D127 Broadway/Thistle Island Annexation, held on August 31, 2010. City Clerk Linda Andal reported on July 19, 2010, following the protest hearing held by the Local Agency Formation Commission ( LAFCO), LAFCO adopted a resolution ordering the City to hold an election to determine the annexation of the Broadway/Thistle neighborhood. On July 27 Council approved a resolution setting that special election, and on August 31 the City held an all -mail special election of the qualified electors of the neighborhood which required the affirmative vote of the majority of the votes cast to pass. Ms. Andal added that on September 2 " the Clerk's office canvassed the ballots and the measure received 35 "yes" votes and 84 "no" votes and the measure failed to receive the necessary affirmative votes of the qualified electors. Mayor Pringle expressed his disappointment, explaining the process that led up to this election and the fact there was a redundancy of services and higher costs associated for this county island located within Anaheim boundaries. He recommended any services provided by the City outside Anaheim's borders be provided in an equitable manner. Mayor Pringle moved to approve RESOLUTION NO. 2010 -149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring the results of the Special Mail Ballot Election for the Broadway /Thistle Island Annexation, held on August 31, 2010, seconded by Council Member Kring. Roll Call Vote: Ayes — 4: Mayor Pringle and Council Members: Galloway, Hernandez and Kring. Noes - 0; Absence — 1: Council Member Sidhu. Motion Carried 31. RESOLUTION NO. 2010 -150 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the issuance by the Anaheim Redevelopment R100 Agency of its Anaheim Merged Redevelopment Project Area 2010 Tax Allocation Bonds (Taxable Recovery Zone Economic Development Bonds) making certain determinations relating thereto. At the direction of bond counsel, Executive Director Elisa Stipkovich requested Item No. 31 be removed from the consent calendar for a separate vote. Council Member Galloway moved to approve Item No. 31, seconded by Council Member Hernandez. Roll Call Vote: Ayes — 4: Mayor Pringle and Council Members: Galloway and Hernandez. Noes — 0; Absence — 1: Council Member Sidhu. Motion Carried. Council Meeting Minutes of September 14, 2010 Page 9 of 12 B105 35. Consider making two appointments to complete the unexpired terms on the Sister City Commission, term ending June 30, 2011 (Kim Tulleners) and June 30, 2013 (Randy Amiri). APPOINTMENT: (vacancy of Kim Tulleners) APPOINTMENT: vacancy of Randy Amiri) This item continued to September 28, 2010. 36. Consider making five appointments /reappointments to the Budget, Investment and Technology Commission for terms ending, June 30, 2012 (1 - unscheduled vacancy); B105 June 30, 2013 (1 - unscheduled vacancy); and June 30, 2014 (3 - two members eligible and seeking reappointment and one new appointment). APPOINTMENT: Mark Whitaker (June 30, 2012) (unscheduled vacancy of Arjan Sachdev) Council Member Kring nominated Mark Whitaker to the Budget, Investment and Technology Commission. With no other nominations offered, Mr. Whitaker was unanimously appointed. (June 30, 2011) (June 30, 2013) APPOINTMENT: (unscheduled vacancy of Jonathan Dallas) (June 30, 2013) REAPPOINTMENT: Patrick Pepper (June 30, 2014) incumbent, Patrick Pepper Mr. Pepper unanimously reappointed. (RE)APPOINTMENT: Neil Malley (June 30, 2014) Incumbent, Neil Malley Mr. Malley unanimously reappointed. APPOINTMENT: (June 30, 2014) 11 th seat) The remaining vacancies carried over to September 28, 2010. 37. Consider making appointments /reappointments to the Parks and Recreation Commission to fill the unexpired term of Jack Knapil, term ending June 30, 2012; B105 consider the reappointment of Andrea Manes to a second term ending June 30, 2014, and an appointment of a Senior Commission member to a term ending June 30, 2014. APPOINTMENT: Samantha Navarro (June 30, 2012) (unscheduled vacancy of Jack Knapil) Mayor Pringle nominated Samantha Navarro, and with no other nominations offered, Ms. Navarro was unanimously appointed. (RE)APPOINTMENT: Andrea Manes (June 30, 2014) incumbent, Andrea Manes) Andrea Manes was unanimously reappointed. Council Meeting Minutes of September 14, 2010 Page 10 of 12 APPOINTMENT: Judy Huitt (June 30, 2014) (Senior Citizen Commission Member) Council Member Hernandez nominated Judy Huitt and with no other nominations offered, Ms. Huitt was unanimously appointed. PUBLIC HEARING: 38. This is a public hearing to consider a resolution forming the Anaheim Tourism Improvement District for the promotion of local tourism and convention - related T108 programs as well as transportation improvements within the Anaheim Resort and Platinum Triangle. RESOLUTION NO. 2010 -151 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM forming Anaheim Tourism Improvement District of 2010. Authorize an increase in the revenue and appropriations in the City Manager's fiscal year 2010/11 budget for formation costs associated with the Anaheim Tourism Improvement District (ATID) and the subsequent reimbursements from ATID revenue, as appropriate. Deputy City Manager Greg Garcia reported this was a public hearing to consider adoption of a resolution to establish the Anaheim Tourism Improvement District (ATID). For the past two years, he stated, representatives from the Anaheim /Orange County V &CB together with members of the local hotel industry explored the merits of implementing a tourism improvement district in Anaheim. The formation of ATID would allow the tourism industry to expand funding for marketing activities through a cooperative partnership funded by the hospitality industry. It would also allow for Anaheim to adequately retain and expand its current share of the convention market as well as provide immediate opportunities for hotels to attract business. Mr. Garcia added that the resolution would officially establish the Anaheim TID and provide that a new assessment equal to two percent of the hotel room rent be levied on all hotels located within the TID boundaries. The proposed boundaries of the TID consisted of the Anaheim resort area as well as the Platinum Triangle. The resolution, he explained, also provided ATID to be established for a period of 30 years. Of the revenues collected, the resolution provided for 75 percent of the funds to be dedicated to marketing, promotions and related activities to bolster tourism and 25 percent be dedicated to transit projects, including operation and maintenance of ARC /elevated guide -way when it comes on line and for specified uses to be determined by a three member transportation committee. The funds allotted management by an entity under contract with the City, the Anaheim /Orange V &CB, to be responsible for day -to- day management of marketing activities. Both the Transportation Committee and the V &CB would be responsible for filing annual reports. He added that notices were sent to hotels, and only one letter was received in opposition. Mayor Pringle opened the public hearing. Alma Ramirez supported tourism as a high priority in Anaheim. Kevin Chen, Super 8 Motel, supported this proposal to bring additional tourism exposure to the city and attract more convention groups. He also recommended suitable oversight and accountability to insure funds were spent appropriately. Council Meeting Minutes of September 14, 2010 Page 11 of 12 Charles Ahlers, V &CB, echoed the industry's desire to be competitive, well funded with transparency and accountability. He added the V &CB was aware of concerns and would make sure through a change in the board, that TID investors would have an annual public meeting and an opportunity to participate in the board of directors as well as a final say in whether or not the annual operation goes forward. Mayor Pringle remarked that at present, the amount of funding the City contributed to the V &CB relates to two cents of the bed tax which over the years has contributed to the Convention Center becoming a state of the art facility. To remain competitive, however, more meeting spaces and exhibit areas were needed and this assessment district, funded by hoteliers would finance any physical improvements that could not be done with the current funding. He added the hoteliers had agreed to an additional two cents to be assessed on their operations to fund improvements, enhance market outreach and address transportation in the resort without an obligation to Anaheim's taxpayers. With no other comments offered, Mayor Pringle closed the public hearing. Council Member Kring was supportive of this effort and commented on the various trade shows attracting participants. Council Member Galloway asked for details on the operation of the TID. Mr. Garcia explained there would be a three member transportation committee to oversee transportation funds and how they were expended. The 25 percent setaside would go towards ARC project operation and maintenance that would benefit the Platinum Triangle and the Resort District. The committee would consist of a member of the City, the largest TID contributor and another TID member recommended by the OCV &CB. The V &CB was in the process of reorganization and would act as the board of directors representing the interests of both Anaheim and Garden Grove, proportionally. He added there would also be a smaller executive board of TID members charged with providing Council with an annual report and other duties. Report on Closed Session Actions: In the matter of Priceline.com, Inc. et al v. City of Anaheim and related cases, the City Council has authorized an appeal from the trial court dismissal of the City's cross complaint. Council Communications: Council Member Hernandez announced that on September 15 at 10:00 a.m., Anaheim would be conducting a test of the Orange County Notification System — Alert Orange County. He further reported that Anaheim West Tower was awarded the LEED Gold Certification and announced that he would be hosting the 4 th Annual DASH forum on October 20 at the Anaheim Downtown Community Center to discuss housing needs for those with disabilities. Council Member Galloway announced the Running Springs Elementary Red Hawk Run -a -thon and Access Service's Health Fair to be held on Friday, September 17 She recognized City employee, Loretta Day, in the City Clerk's Office. Council Member Kring announced the 14 Annual Coastal Clean -up to be held at Yorba Regional Park and spoke about the success of the fundraiser for the Boys and Girls Club held at the Anaheim White House. Mayor Pringle commended Natalie Meeks, Director of Public Works and Mark Vukojevic, City Engineer, for their efforts on the Gene Autry Project and the 600 jobs that it would create. He Council Meeting Minutes of September 14, 2010 Page 12 of 12 also spoke about other city projects, including a 950 -seat Battle of the Dance theatre and two new breweries to open within the City. He announced that he would be holding his last Mayor's Prayer Breakfast this Thursday, September 16 at the Convention Center. Adjournment: At 6:57 P.M., Mayor Pringle adjourned the September 14, 2010 City Council meeting. Res ully submitted, Linda N. Andal, CIVIC City Clerk