2000/06/06ANAHEIM, CALIFORNIA- CITY COUNCIL MEETING
JUNE 6, 2000
The City Council of the City of Anaheim, CA met in regular session.
Present:
Mayor Tom Daly, Council Members: Frank Feldhaus, Lucille Kring,
Tom Tait and Shirley McCracken.
Staff Present: City Manager Jim Ruth, City Attorney Jack White, City Clerk Sheryll Schroeder,
Assistant City Clerk Cindy DanieI-Garcia, City Treasurer Charlene Jung, Finance Director Bill
Sweeney, Budget Manager Jeff Stone, Human Resources Director David Hill, Assistant City
Manager Dave Morgan, Convention, Sports and Entertainment Director Greg Smith,
Anaheim/Orange County Visitors Bureau President, Charles Ahlers
A copy of the agenda for the meeting of the Anaheim City Council was posted on June 2, 2000
at the City Hall inside and outside bulletin boards.
Mayor Daly called the regular meeting to order at 3:03 p.m. in the Council Chambers of the
Anaheim City Hall, 200 S. Anaheim Blvd. The first podion of the meeting was the continuation
of the departmental budget presentations on the proposed Fiscal Year 2000/2001 budget.
FISCAL YEAR 200012001 DEPARTMENTAL BUDGET WORKSHOP (continuation):
City Manager, Jim Ruth, asked Jack White, City Attorney, to present his departmental budget,
which was located on page 34 and 35 of the budget document.
City Attorney White explained his proposed budget represented an approximate $87,000
increase over last year's budget due to increased labor costs. He explained his proposal was to
add a second paralegal position in the civil division for both litigation and transactional work and
to further reduce the use of outside legal services. He noted the cost of the new position would
be shared equally with Redevelopment and Public Utilities Departments. He reviewed the
remainder of his budget.
Council Member Feldhaus asked if the 267 annual cases was an average, to which Mr. White
responded that the number stayed fairly constant, within about 10 cases.
Mr. Ruth introduced City Treasurer, Charlene Jung, who presented her budget located on pages
38 and 39 of the budget document.
Charlene Jung gave a description of the Treasurer's Office functions and explained that the
Office had earned over $41 million in interest income, over $180,000 in capital gains and
received almost $100,000 in SB90 claim reimbursements. Reviewing the expense and
operations portion of the budget, she reported that the department had used new technology to
enhance investment oppodunities and reduce costs.
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June 6, 2000
Page 2
Council Member Feldhaus asked the Treasurer if she was restricted to a percentage of
investment with the SLESF. Charlene Jung responded that was a separate bank account, it
was not part of the City's portfolio so it had to be invested separately. She added that it was
invested into CD's because it would be too expensive to buy securities.
Council Member Feldhaus asked if that was a reserve fund of the City and she responded that
SLESF was reimbursement from the COPS bill, where the City received funding every year.
There was a projection of how the funds could be invested, but the funds tend to be very shod
term because it was spent within one year, she explained.
Council Member Tait asked the Treasurer if the Budget Advisory Commission put restrictions on
her as far as the type of investments. Ms. Jung answered no, they were advisory in nature but
they discussed different strategies before investments took place.
Council Member Tait wondered if they usually agreed with her trading decisions and she
answered yes, sometimes their recommendations were on investments she wasn't ready to
complete.
Council Member Feldhaus asked Treasurer Jung how much money was in the SLESF fund and
she answered $1.2 million. He requested an overview of the detail usage of the fund and the
reinvestments.
City Manager Ruth introduced Human Resources Director, David Hill, who presented his
proposed budget for Fiscal Year 2000/2001, which is found on pages 62 and 63 of the budget
document.
David Hill presented his departmental budget, which is made a part of the record.
Mayor Daly noted the department's budget was increasing about 18% over current year and he
asked where the increase was. Mr. Hill answered in the employment area with the increased
recruiting from 134 current year to a projected 200. He added the second major increased area
was the leased Human Resources Information System and the third major increase was a part
time hour's increase in the Employee's Relations Program.
Mayor Daly asked how much of the increase was for the leased Human Resource Information
System and Mr. Hill said $232,000 over current year. Dave Hill said the next major increase
was in the recruitment program where the department anticipated going from 134 current year
recruitments to over 200, which increased advertising and all the ancillary costs; printing,
postage, etc. The third, he explained, was a part time, half time, position in the Employee
Relations Program to further support their investigation and follow up on EEO and sexual
harassment complaints.
Mayor Daly asked of the recruitments completed current year, how many were filled with in-
house personnel. Mr. Hill answered that he would have to return with the particulars, adding
that there had been a major increase in promotional opportunities within the organization during
the last year, he did not have specifics but would provide a breakdown. The promotions were
averaging about 1 or 2 a week at this time, he reported.
Mayor Daly asked Dave Hill to supply him with the number of recruitments that were filled in-
house.
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June 6,2000
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Council Member Tait asked Mr. Hill what he had planned, in light of state law, regarding
diversity in the work place. Mr. Hill noted the City encouraged equal employment oppodunity,
done in a way that the preference statute was not violated.
Council Member Feldhaus asked what Dave Hill meant by demographics of the area as being
an inhabiting factor and he responded that what he meant was that the City was experiencing a
turnover of retirees who will retire from now to 2007.
Council Member Feldhaus asked if there were problems getting applicants and Mr. Hill
responded that the labor market had changed dramatically in the last 12 months and the
applicant flow had reduced from traditional levels and the City's eftotis to increase visibility in
the labor market had been increased dramatically in order to attract qualified applicants to fill the
positions.
Jim Ruth asked Finance Director Bill Sweeney to present the Finance Depadment's Fiscal Year
2000/2001 proposed budget, which is found on pages 56 through 59 of the budget document,
which is a part of this record.
Council Member Tait mentioned that citizens get frustrated when they call City Hall and get a
computer response and Mr. Sweeney said he understood and when the new interactive system
is implemented, that should be taken care of.
Mr. Ruth announced that the Convention, Sports and Entertainment Departmental budget would
be presented next by General Manager Greg Smith. The budget document, page 52 through
55, is made a part of the record.
During the slide presentation, Council Member Tait explained that when General Manager
Smith said there was no general fund subsidy, he did not understand because on the revenue
portion, there were two general fund transfers. Mr. Smith said he was referring to a general
fund subsidy for the operations of the convention center. The two general fund transfers were
for the debt service, which was not an operational cost and the resort maintenance district which
was a fee that was imposed on all the landowners in the area, which is an operational cost of
the convention center.
Mayor Daly questioned the same slide, asking if the $6.5 million, which would be transferred
from the convention center reserves to the on-going convention center project, was anticipated.
Mr. Smith said it was not anticipated in the original award of the contract for the construction
project, initially. As the City got into the project, he explained it was noted that there were some
problems with the construction drawings and there were change orders and they realized they
would have to dip into the convention center reserves to help complete the project. He added
that at the start of the project, they knew they had a very large reserve account and they were
holding on to it in case this would happen. He added that he was still not sure they would need
$6.5 million to complete the construction project, but it was being budgeted as an outside
chance. He finalized by saying most probable it would be somewhat less than $6,5 million.
Mayor Daly asked if the convention center project was somewhere close to $6.5 million over
budget. Mr. Smith said it could be, he was budgeting for it to be over budget by $6.5 million
draw, however, he added, it may not end up at that level.
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June 6,2000
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Mayor Daly asked if any significant features of the convention center been deleted because of
the problem. Greg Smith noted the significant elements such as landscaping, the front look of
the building had all been maintained and when the project was completed in December, the
Council would see what they were shown three years ago when the project was first started.
Council Member Tait asked if Mr. Smith could pin point a single largest reason for the over
budget projection and Mr. Smith responded that when the City went out to bid on the project,
there were several omissions in the construction drawings and unknown conditions that
occurred that had caused this to happen.
Council Member Tait asked if it would be an accurate statement that the extras on the project
were an estimated $6.5 million. Mr. Smith said no, there would be more than that because they
had budgeted for extras and change orders in the project, but were actually exceeding those.
City Manager Ruth interjected that it was the City's intent to negotiate that with the architect to
reduce costs.
Mr. Smith added that there might be some reimbursement of that money being spent on extras
and change orders, some recovery from the designer because of errors and omissions that
occuFred.
Greg Smith continued with the power point presentation of the 2000/2001 budget.
Council Member Tait, responding to the slide depicting labor work hours, asked Greg Smith
what seven positions were being added. Greg replied that of the seven positions, two were of
the technical/professional; area event coordinator and training coordinator for all part time staff.
He added in the general unit, non-management positions were house keeping manager, a
receptionist telephone operator, an HVAC mechanic, an accounting specialist and a painter.
Upon a question by Council Member Tait, Mr. Smith replied that the total number of full time
employees were 71.
Greg Smith continued with the presentation. When discussing plans for arena enhancements,
Mayor Daly noted that hiring of HOK to do the improvement plans concerned him since there
was a problem with the previous project and he wondered if the contract had been before
Council for approval. Mr. Smith answered no, a proposal was being prepared now.
Mr. Smith continued with his presentation and upon completion, Mayor Daly asked how much
was planned to be spent on the little arena at the convention center. Mr. Smith answered that
this year, in the budget, there was only $420,000 budgeted for improvements. When the
architect was hired and preliminary work was completed, staff would establish what needed to
be done. He noted there were several code issues at hand and several issues regarding the
function of the arena. He indicated that he was hesitant to give an estimate, but he felt the City
would end up spending somewhere between $4 and $8 million when the arena was complete.
He added that the enhancements to the area could take place over several years. He explained
the $420,000 would complete the locker rooms, scoreboard, and carpeting. He indicated that
depending on how the carpeting went, he might be able to pick up some of the seating
reupholstering.
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June 6,2000
Page 5
Mayor Daly asked if the $299,000 sponsorship program paid rent for the use of the building. Mr.
Smith said Kinko's rent was separate and not included in the sponsorship revenue. Mayor Daly
questioned if the others used the facility in a way that would require a rent payment or was it
simply identification with the facility. Greg Smith said that sponsorships were getting more
complicated, Air Pod Bus and Pacific Coast Sightseeing do have the right to be in the lobby to
solicit, rent would be in the sponsorship for Air Port Bus and Pacific Coast Sightseeing.
Council Member Kring mentioned that Mr. Smith had purchased a Java City cart and she asked
if it was up and running yet. Mr. Smith said no, the food and beverage capital expenditures
were paid for through ARAMARK and the Java City cart would come from their funds,
Council Member Tait asked when the $12 million debt service would be finished and Mr. Smith
said he was not sure. Finance Director, Bill Sweeney, responded that he believed it went to
2019. Council Member Tait asked if that was for the new renovation and Mr. Sweeney
responded no, it was for the previous improvements at the convention center. Council Member
Tait asked where he would see the debt service for the recent renovation. Mr. Sweeney said in
the Anaheim Resort Debt Service Fund. Council Member Tait questioned why the convention
center debt was not in the convention center fund. Mr. Sweeney answered that the City would
move the assists in the convention center but the reason was to keep all the debt together, it
was a different funding source than what they had used historically.
City Manager Jim Ruth asked Charles Ahlers, President of the Anaheim/Orange County Visitor
and Convention Bureau, to present the proposed budget for Fiscal Year 2000/2001, payments
to the Convention Bureau are budgeted in the Convention, Sports and Entertainment
Department's budget. The presentation is a pad of the record.
Speaking to his slide regarding Funding Sources, Mayor Daly asked Mr. Ahlers to explain the
convention housing charge. Mr. Ahlers said the Bureau ran a centralized housing reservation
system for conventions, in return a charge is added for that, about $8 a transaction, no matter
what the cost of the room.
Council Member Kring, referring to Mr. Ahlers' slide that showed $3 million in lieu donations
from hotels and dinners, etc., asked if that was the "pot" of money used to pay to bring in the
tour operators. He responded that was used as much as they could, the subsidy did not always
cover the entire cost.
Responding to Council Member Feldhaus' question to the definition of "TAG DAYS", Mr. Ahlers
responded it was "Travel Agents Familiarization Program", which had been on going for about
20 years, occurring in September of each year. Council Member Feldhaus asked if he
understood correctly that the City's participation was only about 63% of the operating budget
from the City. Mr. Ahlers responded yes, it was a positive change, since they were able to
derive revenue from other sources, which brought the City's participation percentage down.
Council Member Feldhaus asked through what mechanism did Mr. Ahlers lobby state and
county governments to secure associated funding. Mr. Ahlers said they had help from the City
Manager's Office with the County and he met with County officials continually. At the state
level, Mr. Ahlers said, it was difficult because the state now had a toudsm commission that
Anaheim and its visitor properties was helping to fund. He noted he went to the State with a
cooperative proposal that was turned down.
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June 6,2000
Page 6
Council Member Feldhaus said he did not know what percentage of the other cities were
members of the organization, but it seemed like they should be stepping forward to help self-
fund some of the needs and necessities, Mr. Ahlers replied that in a way they were, 60% of the
membership was from outside the City of Anaheim, about 35% of the dues and revenue.
Council Member Feldhaus, referring to Consent Calendar Item A 15 on this evenings agenda, a
$1 million loan to the Anaheim/Orange County Visitor and Convention Bureau, asked if the
entire Bureau, including members outside of Anaheim, were committed to the repayment of the
loan. Mr. Ahlers said they hoped so, they had commitments from hotels, he had not received
commitments from the entire membership at that point, but he had enough commitments to
make the payments. He said it was so new that he had not had a chance to sell it to the entire
membership.
Council Member Kring asked if $1 million would be enough and Mr. Ahlers said it was a good
compromise number. He said they would do much good for the City by spending the money,
like increasing the TOT and bolster occupancy.
Mayor Daly noted in his presentation, Mr. Ahlers had mentioned two areas where the million
dollars would be focused and he asked him to elaborate on it.
Mr. Ahlers said what was planned with the $1 million loan was to bring as many association
meeting planners and CEO's to Anaheim as the building was being completed and during the
first year because it was brand new. He said he would like part of the money to be spent on
national attention, newspapers and CNN. Mayor Daly asked when the money would be spent
and Mr. Ahlers said immediately. Mayor Daly said he did not think the PR program was
complete and he wished to see more detail.
Council and staff discussed the new Anaheim Resort logo.
Budget questions and comments would be heard at the 5:00 p.m. noticed public hearing this
date.
At the conclusion of the workshop, at 4:41 P.M., Mayor Daly moved to recess to Closed
Session, seconded by Council Member McCracken. Motion carried unanimously.
PUBLIC COMMENTS - CLOSED SESSION ITEMS:
There were no public comments relative to Closed Session items.
The following items were considered at the Closed Session.
CONFERENCE WITH LEGAL COUNSEL PURSUANT TO GOVERNMENT CODE
SECTION 54956.9(a) - Existing Litigation:
Name of Case: Vista Royale Homeowners Assn. v. 396 Investment Co. fka The
Fieldstone Company, et al., Orange County Superior Court Case No. 77-30-74 (and
related cases).
CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION:
Initiation of litigation pursuant to subdivision (b) of Section 54956.9:
One potential case.
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June 6,2000
Page 7
CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE
SECTION 54957.6:
Agency designated representative: David Hill
Name of employee organization: Anaheim Firefighters' Association.
CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE
SECTION 54957.6:
Agency designated representative: David Hill
Name of employee organizations: Anaheim Police Association, Anaheim Municipal
Employees' Association, International Brotherhood of Electrical Workers, Local 47,
Service Employees International Union Local 1877 and Teamsters Local 952.
CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE
SECTION 54957.6:
Agency designated representative: David Hill
Name of employee organizations: unrepresented management employees.
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
Property: 300 South Beach Boulevard, Anaheim, California.
Agency negotiator: Lisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency and Steve Chiang
Under negotiation: price and terms of payment.
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
Property: 124 W. Santa Ana Street and 501 S. Anaheim Boulevard, Anaheim,
California.
Agency negotiator: Lisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency and Joseph O. Clark
Under negotiation: price and terms of payment.
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
Property: APN 251-091-08 (south side of Water Street between S. Lemon Street and
S, Anaheim Blvd., Anaheim, California).
Agency negotiator: Lisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency Gerald Liekhus
Under negotiation: price and terms of payment
CONFERENCE WITH REAL PROPERTY NEGOTIATORS:
Property: APN 251-091-09 (north side of Stueckle Street between S. Lemon Street and
S. Anaheim Boulevard, Anaheim, California).
Agency negotiator: Lisa Stipkovich
Negotiating parties: Anaheim Redevelopment Agency and City Distribution Services,
Inc.
Under negotiation: price and terms of payment.
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June 6,2000
Page 8
10.
CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION:
Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 of the
Government Code: five potential cases. Claims of Friends of Frank Feldhaus
Committee, Irving Pickler, Supporters of Irv Pickler Committee, Debra Daly, Tom Daly
and Friends of Tom Daly Committee.
At 6:30 P.M., all Council Members returned to open session and Mayor Daly called the regular
Council meeting of June 6, 2000 to order.
INVOCATION: Pastor Jimmy Gaston, Church of Christ
FLAG SALUTE: Council Member Tom Tait
PROCLAMATION:
Recognizing June 14, 2000 as Army Day. Captain Mark Paget, Historian and Commander for
the Newport Beach Company, announced that Army Day in Anaheim was June 14, 2000 and he
encouraged citizens to celebrate the 225th birthday of the Army by attending any of the open
houses to be held by the U.S. Army recruiting battalion at each of their 45 stations.
PRESENTATION:
Mr. Burt Fink, Vice President, Anaheim Sister Cities Association, announced that next year will
be the 25th Anniversary of the association between the cities of Anaheim and Mito, Japan. He
encouraged citizens to go to Mito in 2001 and see artifacts about Anaheim in the museum's
Anaheim room. Mr. Fink then introduced four of the six student ambassadors from Anaheim
high schools. The following students were recognized and will be representing Anaheim in Mito,
Japan: Nicholas Phillips, Gilbert East School; Jason Pi, Katella High School; Breysi Garcia,
Anaheim High School; and Jennifer You, Canyon High School. Sean Arayasirikul and
Jacqueline Vekickh were not present. Mayor Daly awarded each student a letter of
congratulations.
Mayor Daly welcomed Cub Scout Pac Troop 183 from Roosevelt Elementary and Juarez
School.
ADDITIONS/DELETIONS TO THE AGENDA: There were no additions/deletions to the
agenda.
PUBLIC COMMENTS:
Jack Armstrong, 8468 Neptune Dr., Buena Park, on behalf of the Flag Day Committee, invited
the Council Members and citizens to attend the Flag Day ceremony on Sunday, June 11, 2000,
from 1:00 P.M. to 3:00 P.M. at Center Street Promenade.
Linda Lee Grau, 24 Morning Dove, Irvine, spoke about the reduction in the size and cost of
government.
Jeannie Avery, Anaheim Hills, asked the City for an investigation of Richard Chavez. She said
she felt Mr. Chavez was creating racial problems in connection with the Eli Home. She added
that land use and location of the building were the real issues.
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June 6,2000
Page 9
CITY MANAGER/DEPARTMENTAL CONSENT CALNEDAR A1 - A23:
City Clerk Sheryll Schroeder announced that there was one clarification to item A16. It will be a
June 20, 2000 public hearing, rather than a July 11, 2000 public hearing.
City Manager Jim Ruth had two suggestions regarding the consent calendar; the first was a staff
request for continuance on item A2 for one week and that item A20 be withdrawn.
Mayor Daly moved to waive reading in full of all ordinances and resolutions to be acted upon for
the Council meeting of June 6, 2000. Council Member McCracken seconded the motion.
Motion carried unanimously.
On motion by Mayor Daly, seconded by Council Member McCracken, the following items were
appreved in accordance with the reports, certifications and recommendations furnished each
Council Member and is listed on the Consent Calendar.
A1.
Receive and file minutes of the Anaheim Redevelopment and Housing Commission
meeting held May 3, 2000.
Receive and file minutes of the Budget Advisory Commission meeting held April 19,
2000.
Receive and file minutes of the Anaheim Park and Recreation Commission meeting held
April 26, 2000.
Receive and file a Notice of Filing by Entergy Service, Inc., dated May 15, 2000, filed
before the United States of America Federal Energy Regulatory Commission a
compliance report in compliance with the Commission's order in Allegheny Power
Service Co., et al.
Receive and file the application filed before the Public Utilities Commission of the State
of California of Fernando A. Ochoa, doing business as Mexican Super Shuttle Express,
for a cedificate of public convenience and necessity to operate as a passenger stage
company between points in the San Femando Valley to San Ysidro.
Receive and file minutes of the Anaheim Private Industry Council meeting held March
23, 2000.
A2. Award the contract to the lowest responsible bidder, Layne Christensen Company, in the
amount of $442,550 for construction and development of Well No. 45 (Spodstown) and
approve and authorize the Finance Director to sign the Escrow Agreement pertaining to
contract retentions. This item was continued one week to June 13, 2000.
A3. Award the contract to the lowest responsible bidder, Valverde Construction, Inc., in the
amount of $176,860 for Pressure Regulating Station No. 34 and approve and authorize
the Finance Director to sign the Escrow Agreement pertaining to contract retentions.
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June 6,2000
Page10
A4.
Amend the FY 1999/2000 Public Works Department Capital Improvement budget to
incorporate $250,000 from sewer maintenance reserves to cover construction and
contingency costs for the Wilken Way Street, sewer and water improvement project, and
award the contract to the lowest responsible bidder, Hillcrest Contracting, Inc., in the
amount of $622,912 for Wilken Way street, sewer and water improvements from Oertley
Drive to Harbor Boulevard and its vicinity and approve and authorize the Finance
Director to sign the Escrow Agreement pertaining to contract retentions.
Regarding A4, Mayor Daly said he understood that water and sewer was involved, but just a few
months ago, there were some residents from the Wilken Way neighborhood asking for speed
bumps or street closure. Mayor Daly wanted to know the status of their request before the item
was approved. He recalled that they were still surveying and attempting to reach a consensus
in their neighborhood.
Russell McGuire, Deputy City Engineer, Public Works Department, reported that John
Spaulding, Manager for the Anaheim Resort Neighborhood Program, managed and did
neighborhood reviews. The consensus of the neighborhood was speed bumps. There was
some inquiry regarding closure of Wilken Way and the cost of that closure would be between a
quarter and a third of a million dollars. The report was issued and shared with the
neighborhood. The consensus of the neighborhood was still speed bumps. The project
included three basic components: utilities, sewer and water, missing sidewalks and the speed
bumps for traffic control in the neighborhood. Mr. Spaulding was in communication with, and
continued to inform the neighborhood that the project was proceeding.
Mayor Daly asked Mr. McGuire if the residents of Wilken Way were comfortable with the
recommended improvements, including the speed bumps. He also asked if there was any
additional correspondence and if there was anyone still pressing for closure of the road.
Deputy City Engineer McGuire replied that the residents understood that the speed bumps were
the feasible solution to the speeding problem, as they perceived it. The closure of Wilken Way
presented too many problems and was such a significant cost that it was not feasible. At last
communication with John Spaulding, staff had not received any further communication with the
people in the neighborhood after the report was issued about the cost and the complexity of
closing Wilken Way, Deputy Engineer McGuire reported.
Mayor Daly asked if the contract was approved and staff finds out that there was still a desire for
closure, would it be too late to stop the process. He said he did not want to hold up the contract
if there was no longer a desire by the residents to pursue the street closure.
City Attorney White explained that if Council approved the contract, it would be a binding
contract with the contractor. The City may be able to negotiate some settlement with the
contractor, that it may possibly involve payment of some lost profit as a result of the contract not
moving forward, he added.
Mayor Daly suggested holding off for one week so that staff can make sure that the residents
are comfodable with the speed bump alternative rather than the street closure. The Mayor said
his concern was that the City would hear from the residents, in a month or two, that they were
expecting the closure or they did not want the speed bumps and the City already spent money
and he questioned if anyone had seen correspondence or heard from Wilken Way residents.
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June 6,2000
Page11
Council Member Tait agreed with Mayor Daly to continue the item for a week,
Mayor Daly stated that it would be nice to get a sense of the neighborhood and how they felt
about speed bumps and the closure.
Mayor Daly moved for a one week continuance. Council Member Tait seconded. Motion
carried unanimously.
A5.
Award Master Agreement contracts to Sturgeon Electric Company, ELC Electric, Pouk &
Steinle, Inc., and Henkels & McCoy, Inc., for the electrical construction, maintenance,
repair and immediate response services in connection with the City's electrical system;
waive any irregularities in their documents, and authorize the Public Utilities General
Manager to administer the Master Agreements.
A6.
Approve and authorize the Mayor and City Clerk to execute the Acquisition Agreement
for real property located at 1544 South Harbor Boulevard (RAN 5210-2) and authorize
the acquisition payment of $180,000 to Park Place Inn Anaheim, Inc., General
Partnership, in connection with the Anaheim Resort Area Improvement Project.
A7.
RESOLUTION NO. 2000R-84 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM concerning the status of the Circulation Element for the City of
Anaheim. (Informs OCTA that the City's Circulation Element is in conformance with the
County Master Plan of Arterial Highways.)
A8.
ORDINANCE NO. 5731 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending Chapter 14.57 of the Anaheim Municipal Code pertaining to the
directing of traffic.
Council Member Feldhaus asked if it was necessary to amend the ordinance or could the City
have Disney directly contract with the City to be able to provide traffic controllers, rather than
change the ordinance.
Natalie Meeks, Civil Engineer, stated that the agreement the City would be entering into with
Disney was an operational agreement for reversible lanes that serve the parking structure in the
Anaheim Resort Area. They will manage and operate the parking structure and also the
reversible lanes, so it was important for them to have control so those items work together for
access and safety reasons.
Ms. Meeks said she had worked with the City Attorney's Office and the agreement with Disney
was an operational agreement, not a direct employee type of contract that was listed in the
current ordinance. Under that specific agreement, this new clause was being added to the
ordinance to allow the City to enter into an operational agreement and assign some specific
portion of traffic control to another agency.
City Attorney White explained the proposed ordinance would amend the current language of
Section 14.57.020, Subsection C of the Municipal Code which states that an employee of a
party contracting directly with the City was exempt from the provision that prohibits them from
controlling traffic. It gives the City the right to contract with anyone, including Disneyland, to
have an employee direct traffic if the City has approved the ordinance, he finalized.
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June 6,2000
Page12
Council Member Feldhaus asked why the City didn't contract with Disney to allow their
employees to control the traffic at the intersection flyover, instead of having to make an
amendment to the ordinance.
City Attorney White answered the City would still need to have an amendment to the ordinance
to do that, regardless of whether they were contracting with Disneyland or any other firm or
party. Currently there is nothing in the Municipal Code that would authorize a private party or a
church or Disneyland or anyone else to have its employees direct traffic on a public street, only
the Police Department or other persons that are deputized by the Chief of Police were allowed
to direct traffic, he said.
AS.
RESOLUTION NO. 2000R-85 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and
service easements, and setting a date and time to consider abandoning certain street
and public utility easements located at Jeffrey Drive, Michelle Drive and the alleys
between Jeffrey and Michelle, and Walnut and Jeffrey, all between Lynne and Audre,
together with Audre Drive between Walnut and the alley between Michelle and
Hampstead (Abandonment No. 00-5A). (Suggested public hearing date: July 11, 2000,
at 6:00 P.M.)
A10.
RESOLUTION NO. 2000R-86 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and
service easements, and setting a date and time to consider abandoning that certain
blanket easement for water purposes (originally granted to Dyke Water Company)
bounded generally by Cerritos Avenue on the north, Walnut Street on the east, the
Southern California Edison easement on the south, and Ninth Street on the west
(Abandonment No. 00-6A). (Suggested public hearing date: July 11, 2000, at 6:00
P.M.)
All. RESOLUTION NO. 2000R-87 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and
service easements, and setting a date and time to consider abandoning that certain
easement for utility purposes, six feet in width, extending northerly from Katella Avenue
approximately 120 feet westerly of Ninth Street (Abandonment No.
98-7A). (Suggested public hearing date: July 11, 2000, at 6:00 P.M.)
A12.
RESOLUTION NO. 2000R-88 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and
service easements, and setting a date and time to consider abandoning that certain
easement for water purposes on property located generally south of Riverdale Avenue
and easterly of the State Route 91 Freeway (Abandonment No. 00-SA). (Suggested
public hearing date: July 25, 2000, at 6:00 P.M.)
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June 6,2000
Page13
A13.
RESOLUTION NO. 2000R-89 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and
service easements, and setting a date and time to consider abandoning that certain
easement for road and public utility purposes located south of La Palma Avenue, west of
White Star Avenue, and north of the State Route 91 Freeway (Abandonment No. 99°
17A). (Suggested public hearing date: July 25, 2000, at 6:00 P.M.)
A14.
Accept the bid and authorize the execution of an Agreement with Osmose, Inc., in an
amount not to exceed $244,600 for utility pole inspection, testing, treatment and
reinforcement services for a thideen month period beginning June, 2000 and authorize
the Purchasing Agent to exercise up to two additional one-year optional renewals,
limited to the Consumer Price Index increases, in accordance with Bid #6025.
A15.
Approve a Second Amendment to Agreement with the Orange County Visitor &
Convention Bureau, (1) delaying the Bureau's financial contribution to assist with the
costs of the Convention Center expansion, (2) granting a $1 million loan to the Bureau to
facilitate the bureau's promotion of the Convention Center and the Anaheim Resort
Area, and (3) modifying the formula used to calculate the portion of TOT collections
available to reimburse the Bureau for its expenses incurred in fulfilling its obligations
under the agreement.
Mayor Daly requested at the workshop held earlier that day that he would like more detail of
how the money would be spent. It was a one million dollar loan and the City would not see the
proceeds or be repaid for five years. Mayor Daly also asked staff to report back to Council on
the explanation of the need for the third pad of the item to modify the funding formula. He said
he understood the delay in asking the Bureau to fund their previously agreed contribution to the
Convention Center expansion. Mayor Daly made a motion for a one-week continuance of Item
A15. Council Member Feldhaus seconded. Motion carried unanimously.
A16.
RESOLUTION NO. 2000R-90 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to provide for an annual levy and collection of
assessments in the Anaheim Resort Maintenance District for Fiscal Year 2000/01 and
setting a time and place for public hearing thereon. (Suggested public hearing date:
June 20, 2000, at 6:00 P.M.)
RESOLUTION NO. 2000R-91 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM initiating proceedings for the annual levy of assessments in, and
accepting an assessment Engineer's report for, Anaheim Resort Maintenance District.
Council Member Feldhaus commented on the proposed levy and assessment in the Resort
Area District. He said he received correspondence from businesses in the fringe areas that felt
that it was unfair to them because they were not beneficiaries of the defined Resort Area and he
asked if those people had been addressed.
Tom Wood, Assistant City Manager-Development, resp9onded that those concerns had been
referred to the Assessment Engineer. Upon investigation, staff found that those businesses
were well within the beneficiary area. The Assessment Engineer had to make an evaluation as
to whether or not they were benefiting from it according to the findings that they went through
and they concluded that they were, he explained.
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June 6,2000
Page14
Council Member Feldhaus mentioned there was a liquor store at Vermont and Harbor that was
there long before the Resod Area. They complained that they had not received any benefits
from the Resort Area, and Council Member Feldhaus stated he agreed with that.
Mayor Daly noted this item scheduled the public hearing for the annual collection of the
assessment. He requested staff report back with more information on the Assessment District
Engineer's evaluation of some of the properties where questions had been raised, including the
liquor store property.
Council Member Kring said she had met with someone last week that owned a small subway
sandwich shop on Harbor Boulevard and he said that during the construction, his actual
revenue had plummeted dramatically and he felt that a lot of the small businesses had been
impacted during the construction. She wondered if there was any way the City could go back
to the Engineer or go back to the group and ask to hold off collecting the fee until everything
was done. The Marriott, the Convention Center, Disneyland, and the Hilton had been finished,
so they were not impacted, she said. The people on Harbor Boulevard were being severely
impacted by the construction, she felt, suggesting modifying their dues structure.
Tom Wood, Assistant City Manager-Development stated that this was an annual headng that
was required under the State law and was adopted by over 80 percent of the property owners
one year ago. Every year thereafter, there is a requirement for public hearing, he added.
Mayor Daly apprised the Council of the suggested public hearing date of June 20, 2000.
A17.
Approve the terms and conditions of the Tenth Amendment to Agreement with Eberhart
Consultants (formerly Eberhad and Stone), the City's geotechnical consulting firm for the
Santiago Landslide.
A18.
ORDINANCE NO. 5732 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM adding Section 1.01.385 to Chapter 1.01 of Title I of the Anaheim Municipal
Code relating to reimbursement for vandalism.
Council Member Feldhaus questioned setting the parameters at a maximum of $250 for
violations.
City Attorney, Jack White answered that State statute included a $250 maximum. The most that
cities were are allowed to charge by law would be up to $250 if adopted by an implementing
ordinance, even if the actual cost exceeds $250. The statute that was adopted by State
legislature says that a City may adopt an ordinance to collect up to $250 of enforcement costs.
He informed that the City was not mandated by State law to pay $500 to capture a vandal, it
was their choice to do so.
Council Member Feldhaus asked the City Attorney if vandalism was a misdemeanor and if it
allowed $1,000 under State law.
Jack White, City Attorney, informed there had to be a conviction and it was usually a
misdemeanor depending upon the amount of the damage. The $1,000 is in addition to the
penalty that is imposed and was at the discretion of the judge to impose it.
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June 6,2000
Page15
A19. Approve the Attorney Services Agreement with Curiale, Dellaverson, Hirschfeld, Kelly &
Kraemer to perform investigatory services on behalf of the City.
A20.
Approve and authorize the Public Utilities General Manager to execute a Third
Amendment to extend the Agreement with R.W. Beck to provide additional consulting
services relating to the Department strategic options with regard to the electric system
competitive environment. (Continued from the meeting of May 16, 2000, Item A19.)
Upon recommendation from City Manager Jim Ruth, Item A20 was withdrawn.
A21.
Approve the proposed Five-Year Electric Underground Conversion Plan for fiscal years
2000/01 through 2004/05 at an estimated capital cost of $46.1 million as recommended
by the Public Utilities Board at their meeting of April 20, 2000. (Continued from the
meetings of May 16, 2000, Item A26, and May 23, 2000, Item A18.)
A22.
Approve and authorize the Public Utilities General Manager to execute an Agreement
with Abacus Energy Services and approve the form of Agreement with Energy Services
Providers.
A23. Approve minutes of the Anaheim City Council meeting held May 16, 2000.
(Council Member McCracken abstained as she was not in attendance that date)
Mayor Daly moved to approve the entire consent calendar, including the ordinances and
resolutions. The Roll Call vote adopting Resolution Nos. 2000R-84 through 2000R-91 was five
ayes, no nays.
PUBLIC HEARING ON THE FISCAL YEAR 2000/2001 CITY BUDGET PLAN:
Item A24.
Mayor Daly opened the public hearing and announced that this was the opportunity for the
public to comment on the proposed 2000/2001 City Budget. He added there would also be an
opportunity to comment on the proposed budget Tuesday, June 13, 2000.
Linda Lee Grau, 24 Morning Dove, Irvine, said this was a time to reduce the size of city
government, lower costs and eliminate the City's padicipation in any business endeavors.
Mayor Daly moved to continue the public hearing on the budget to Tuesday, June 13, 2000, at
5:00 P.M. Council Member McCracken seconded the motion. Motion carried unanimously.
APPOINTMENT TO THE PARK AND RECREATION COMMISSION:
Item A 25. Current vacancy of Gladys Wallace, term expiring June 30, 2002.
Mayor Daly noted two individuals had applied for membership on the Park and Recreation
Commission, one of the two individuals was recently appointed to the Private Industry Council
and served on that advisory Committee. The Mayor opened the nominations for an
appointment to the Park and Recreation Commission and asked Council Members for their
nominations.
Council Member Kring nominated Linda Newby and Council Member Feldhaus nominated Maria
Hamblin.
City of Anaheim - City Council Minutes
June 6, 2000
Page 16
On motion by Mayor Daly, seconded by Council Member McCracken, nominations were closed.
Motion carried unanimously.
A vote was then taken on the nominees in the order in which they were nominated.
Linda Newby - Ayes: Tait, Kring. Noes: McCracken, Feldhaus Daly
Maria Hamblin - Ayes: McCracken, Feldhaus Daly. Noes: Tait, Kring.
Council Members Tait and Kring changed their votes for unanimous approval of Maria Hamblin
to the Parks and Recreation Commission for the term ending June 30, 2002.
Items B1 throuclh B2 from the Zoning Administrator Meeting of May 18, 2000: (No action
necessary unless Council desires to set a padicular item for public hearing) APPEAL PERIOD
ENDS: JUNE 9, 2000
B1.
ADMINISTRATIVE ADJUSTMENT NO. 2000-00192
CATEGORICALLY EXEMPT, SECTION 15061(b)(3):
OWNER: Roland S. Tanner, 180 Canyon Crest Drive, Anaheim, CA 92808
LOCATION: 180 Canyon Crest Drive: Property is 0.45 acre having a frontage of 170 feet
on the north side of Canyon Crest Drive and a maximum depth of 226 feet located at the
terminus of Canyon Crest Drive.
Waiver of minimum side yard setback (10 feet required; 8 feet proposed) to construct a 541
square foot first floor room addition and a 161 square foot second floor room addition to an
existing single family residence in the RS-HS 22,000 (SC) (Residential, Single Family
Hillside-Scenic Corridor Overlay) Zone.
ACTION TAKEN BY THE ZONING ADMINISTRATOR:
Approved Administrative Adjustment No. 2000-00192 (ZA DECISION NO. 2000-23).
B2.
ADMINISTRATIVE ADJUSTMENT NO. 2000-00194
CEQA CATEGORICAL EXEMPTION - CLASS 3:
OWNER: Pacific Islandia California Inc., 1015 West Ball Road, Anaheim, CA 92802
AGENT: Anaheim Sheraton, 1015 West Ball Road, Anaheim, CA 92802, Attn: Jeffrey
Morse
LOCATION: 1015 West Ball Road: Property is 11.82 acres located at the northeast corner
of West Street and Ball Road, and having frontages of 450 feet on the nodh side of Ball
Road and 620 feet on the east side of West Street.
Waiver of maximum permitted height to construct parking lot gate arms in the Anaheim
Resort SP92-2 (36 inches permitted for gate arm located in the 20-foot setback along Ball
Road and West Street; 45 inches proposed for a gate arm located 3 feet from Ball Road
and West Street).
ACTION TAKEN BY THE ZONING ADMINISTRATOR:
Approved Administrative Adjustment No. 2000-00194 (ZA DECISION NO. 2000-24).
Zoning Administrator Items, B1 - B2, no action taken.
City of Anaheim - City Council Minutes
June 6,2000
Page17
REPORT ON CLOSED SESSION ACTIONS:
City Attorney Jack White announced there were no actions to report and that Council would
recess to Closed Session at the close of the regular meeting.
COUNCIL COMMUNICATIONS:
Council Member McCracken thanked all those who sent her cards and good wishes for
recovered health.
Council Member Feldhaus wished Council Member McCracken good health and continued
progress. He also reminded everyone about the fourth annual Anaheim Flag Day celebration,
Sunday, June 11, 2000, downtown, from 1:00 P.M. to 3:00 P.M.
Mayor Daly announced the continuation of the budget discussions to Tuesday, June 13, 2000.
CLOSED SESSION:
Mayor Daly recessed the regular meeting to Closed Session at 7:35 P.M. At 8:24 P.M.,
Anaheim City Council returned to open session and no actions were reported taken,
ADJOURNMENT:
No further business to come before the Council and by general consent, the Council Meeting of
June 6, 2000 was adjourned at 8:25 P.M.
Respectfully submitted:
Sheryll Schroeder, CMC/AAE
City Clerk