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2011/06/07ANAHEIM CITY COUNCIL REGULAR ADJOURNED MEETING OF MAY 17, 2011 HELD ON JUNE 7, 2011 & REGULAR MEETING OF JUNE 7, 2011 The City Council regular adjourned meeting of May 17, 2011 was called to order at 2:07 P.M. on June 7, 2011 in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. A copy of the agenda was posted on June 3, 2011 on the kiosk outside City Hall. PRESENT: Mayor Tom Tait and Council Members: Gail Eastman, Lorri Galloway, Kris Murray and Harry Sidhu. STAFF PRESENT: City Manager Tom Wood, City Attorney Cristina Talley, and City Clerk Linda Andal D106 FISCAL YEAR 2011/2012 BUDGET HEARING City Manager Tom Wood announced this public hearing was to review and adopt the City's budget pursuant to applicable sections of the Charter and had been available to the public since May 27 He stressed this fiscal plan had been challenging, requiring innovative and tough decisions and was balanced with revenues matching expenditures, a total of $1.46 billion. In order to achieve this balanced budget, he noted, over $14 million in reductions were made. The 1,922 full -time positions reflected a decrease of 79 from the current budget with losses spread throughout all city departments. He added this was the fewest number of full -time positions the City has had in 20 years. Despite the challenge in this economic climate, he remarked, the proposed budget using primarily restricted resources, continued to invest in modern public amenities such as Founder's Park, a one -acre park designed to depict Anaheim's rich agricultural history and the Anaheim Coves at Burris Basin, a 14 acre nature park with recreation trails and access to the Santa Ana River. Public Utilities Department's construction of the Canyon Power Project would be completed in the new fiscal year, which he described as a state of the art 200 megawatt power generation facility providing local power to Anaheim as well as water recycling demonstration project to reduce the City's dependence on imported water by about 35 million gallons per year. Other projects on line included the Colony Marketplace, anchored by the Packing House and Brewery Tasting room in Anaheim's historic Packard building and expansion of the Anaheim Convention Center, the largest center on the west coast, in order to maintain its competitive edge and featuring enhanced outdoor space for meetings and events. He pointed out the City was also the leader in developing transportation solutions for the region, with construction of ARTIC in full swing during the next fiscal year, to be completed in 2014. Also in the planning stages for this next fiscal year was the Anaheim Rapid Connection project, a high capacity fixed guideway system that would efficiently connect ARTIC, the Platinum Triangle, the Anaheim Resort area and the Anaheim Convention Center. He emphasized this was a budget where progress continued to be made citywide and would continue to improve the City and quality of life for Anaheim's residents and visitors. Bob Wingenroth, Finance Director, reported the proposed 2011/12 budget was available on the City's website to all interested persons and included a Budget in Brief, the Operating Budget and Capital Improvement Program, Supplemental Schedules and Line Item Details. Within the Operating Budget document, an Executive Summary was provided discussing the economic outlook, the capital improvement programs scheduled for the 11/12 year, the Citywide Budget Overview and the General Fund Budget Information. For the second year, he explained, the Budget was organized into five key areas: Keeping Us Safe, Providing the Necessities, Council Meeting Minutes for meetings held on June 7, 2011 Page 2 of 18 Ensuring Quality of Life, Administering Efficient Government and Supporting Activities. The total budget reflected $1.46 billion and consisted of eight major funds: the Enterprise fund with $610 million, the General Fund at $226 million, Internal Service Funds of $190 million, Capital Projects with $188 million, Special Revenue Funds at $179 million, a Debt Service Fund of $50 million, Other General Purpose Funds of $10 million and Fiduciary Funds of $9 million. He added the General Fund budget was down 10 percent from last year, however, the overall budget was 12 percent higher than FY 2010/11 due to the expanded capital program which primarily consisted of gas tax funds, Measure M2 funds, Federal, State and OCTA grants as well as other proprietary funding sources. Transportation improvements reflected $198 million, the Electric systems at $33 million and the Entertainment Venues (mostly the Grand Plaza project) reflected $20 million. With 10 months into the current fiscal year, Mr. Wingenroth updated Council on General Fund revenues reporting total revenues were up by about 1.3 percent while expenditures were down 3.5 percent due to City departments controlling costs, operational reductions, and a freeze on hiring. The revenue forecasts for the next year were conservative with his staff studying a diverse set of indicators, national, globally, and regionally. Staff's expertise and the local business community were also consulted as well as taking into consideration historical trend data. This year, he noted, there was growth in Transient Occupancy Tax (TOT) increasing six percent from the prior year with hoteliers projecting growth in occupancy as well as rates for the coming year. Along with that, he pointed out, there was tremendous volatility in world events and in the economy and consumer confidence, which fueled Anaheim's tourist industry and sales tax was fragile. For those reasons, staff was projecting a four percent growth in TOT revenues, higher than FY 2010/11 but still less than the peak year of FY 07/08. Regarding sales tax, staff projected a 2.4 percent growth, slightly higher than 2010/11 (after backing out a one -time sales tax revenue receipt of $800,000). For property taxes, the department projected $59 million in revenues. On the General Fund (GF) expenditure side, Mr. Wingenroth pointed out over $14 million in reductions were made to the budget which included eliminating five percent of management positions in the GF budget valued at $1 million, and several labor groups taking a five percent reduction for the entire 2011/12 year valued at $3 million. In addition, the Police Department developed $3.3 million in reductions by relying primarily on personnel attrition, the Fire Department reduced their budget by $1.9 million through redeployment and reduction of resources, the Community Services Department was working on alternative service delivery methods in Library and Parks valued at $3 million and Public Works was in the process of developing efficiencies in services contracts valued at $1.4 million. The remaining departments, he added, had developed approximately $1 million in reductions as a combination of staff reductions and improvements in contracts. With the revenue estimates as well as the reductions in place, a balanced budget was presented with $226 million projected for revenues and matched by $226 million in expenses. He added the City would end the year with $14.7 million in reserves which reflected about 6.5 percent of the General Fund budget. Last year, Mr. Wingenroth explained, the 2010/11 budget was adopted planning to draw on reserves. At the start of 2010/11, the adopted budget decreased reserves by $18 million or $51,000 each day. By mid -year, City departments had made some reductions and at that point, the City lessened the drawdown on reserves to about $38,000 a day. The last four months of the year with all reductions in place and some positive revenue growth, progress was made but the City was still losing about $11,000 a day as the fiscal year closed. He emphasized the fact that the General Fund proposed for 2011/12 would be a balanced budget with zero draw -down on reserves. Council Meeting Minutes for meetings held on June 7, 2011 Page 3 of 18 Mayor Pro Tern Sidhu asked what the status of the General Fund would be at the close of this fiscal year. Mr. Wingenroth replied the loss to the reserves would be between $10 and $11 million dollars and the reserves would reflect between $14.5 and $14.7 million. Prior to the recession, Anaheim's reserves were in the $40 million range. Council Member Murray asked what the impacts were to diminishing reserves. Mr. Wingenroth replied reserve balances were one of the key financial indicators for rating agencies, however, because of the long -term financial management of Anaheim and the robust economy Anaheim enjoyed, during this economic downturn, Anaheim's bond ratings had not been reduced. ANAHEIM POLICE DEPARTMENT BUDGET FY 2011112 Police Chief John Welter explained the department's primary goal was to insure safety of nearly 350,000 people, thousands of businesses, and millions of visitors to Anaheim taking pride in a progressive community policing philosophy and problem oriented policing style. The total budget was $120.1 million, and included five funding sources: the General Fund, Police Outside Reimbursements, Asset Forfeiture, Law Enforcement grants, and Homeland Security Urban Area Security Initiative (UASI) grants. The budget supported 349 police officers and 181 professional civilian staff or 530 full -time employees, 100 volunteers who donated thousands of hours to the community with years of varied expertise and experience and 60.8 FT part-time equivalent positions. Showcasing the five year expenditure budget trend, Chef Welter pointed out the APD had consistently reduced its GF budget over the last 10 years due to ongoing strategic planning efforts, reduced operating costs and improved efficiencies with 51 few police officers and 29 professional staff. Performance Indicators for his department reflected overall Part 1 crimes (serious felonies, homicides, assaults, robberies, burglaries, auto theft, larceny, and arson) showed a clearance rate of 42 percent for the current year, which Chief Welter explained, was respectable for the profession. Next year's target was 40 percent, slightly reduced as detectives would be required to work once a month in patrol to keep patrol staffing levels up as a cost saving measure. Performance indicators also included patrol officer response times to emergencies, a critical measure from the time a 911 call was received to the time an officer arrived on scene. Currently the department was averaging 9 minutes, considerably improved from a couple of years ago when the response time was over 10.5 minutes. He added 51 percent of responses to priority calls were actually less than 7 minutes and through the reconfiguration of beats and other strategies, the department continued to see improvement in response times. In 2010, Anaheim had the lowest collision fatality rate in the last 10 years and maintained a 10 year low for injury collisions which contributed to Anaheim's "safe city" status, with Chief Welter pointing out was remarkable given the number of tourists visiting the City. Officers also issued approximately 46,000 citations and 3,900 commercial vehicle citations every year to maintain traffic safety. In the Community Service detail, 30 explorers were added to the program, which reached out to youths hoping they became cadets, officers, or civilian support staff in the future. Notable achievements for the department were identified: the Patrol Bureau revised their Beat Plan to enhance service with current staffing levels and maintained a low response rate to calls per service as possible; a sex offender compliance training program and data base for officers to insure offenders were in compliance with the law was created; the prisoner booking process in the jail was reconfigured which reduced booking time from 20 minutes to under 10 minutes translating to cops back on the street sooner, an example of the department's audits and strategies to become more efficient. Jail meal service was in the process of being outsourced saving about $20,000 yearly and eliminating meal preparation, handling and planning responsibilities. Council Meeting Minutes for meetings held on June 7, 2011 Page 4 of 18 Chief Welter indicated that crime rates throughout the nation fell last year according to stats released by the FBI, with most of Orange County largest cities following that trend. Anaheim saw a two percent drop in violent crime in 2010 and homicides had a 144 percent clearance rate by solving older murders from 1984 and 1993 through new technology. The clearance rate for rape was 47 percent, robbery at 31 percent, and aggravated assault at 49 percent. As homicides decreased, he pointed out, detectives would have time to reinvestigate and go after older crimes. The Forensics detail responded to approximately 3,500 calls for services with the increased community expectations and higher demands from the criminal justice community are driving CSI case loads. He added the crime lab made great strides in their ability to match DNA collected from any crime scene and assisted the Department in solving and prosecuting the most serious serial and /or prolific offenders. The Department received a federal human trafficking grant this year and partnered with Community Service Programs of OC to provide a revolutionary new approach to human trafficking cases by rescuing victims of prosecution and helping them get out of that life, while at the same time using them to target those individuals benefiting from this activity. He added APD was one of only three cities nationwide to receive this grant. Partnering with LAPD and the FBI, APD was aggressively involved in preventing internet crimes against children resulting in significant increases in child exploitation investigations and arrests. He also pointed out year -to -date drug case seizures increased over 100 percent from the preceding five years from 3.3 million to over 10 million in this current fiscal year with no signs of decreasing. A variety of important equipment was acquired to be used not only to help fight crime but to support response to natural disasters, such as the helicopter HD camera system and its downlink for critical incident management, many of these purchases using UASI federal funding. UASI funding, he stressed, was a critical component to homeland security and staff was watching carefully as to the future of that federal program. He further discussed the volunteer program with over 100 volunteers and his plans to increase the number. He highlighted the Junior Cadet program which addressed youths at a younger age, with over 300 kids now participating. Other community programs were the Adopt -a- Family program in partnership with several non - profits, which would link up with the "Kindness" initiative. He indicated the Justice Center continued to grow with more effective monitoring of sexual offenders and by continually adding new partners and more public outreach through a variety of public presentation and educational events. He added this was more than just treating victims after the crimes; it encompassed reaching out and trying to prevent crimes in the first place. The crimes view mapping for community members was close to roll out with residents being able to sign up for crime alerts, access crime trends, graphs, and charts to understand the crime in their neighborhoods, as well as a means to get them to help prevent crime, not just respond to it. He discussed the department's work on the other two sides of the crime angle, remarking the department wanted to work harder on the victim and location by expanding the "see something, say something" strategy, getting individuals to report suspicious activities. The Gang Reduction Intervention Partnership or GRIP, was one of the public /private partnerships working with schools and service providers to keep students in schools and out of gangs. For FY 11/12, the department would continue with long -term problem solving and problem oriented policing projects such as the anti - graffiti effort. The Chief's advisory board, he reported, consisted of 22 people who meet monthly with Chief Welter and take on initiatives to help the Department. Three goals were identified for this calendar year: to develop outreach with faith -based groups to improve relationships between the Department and the community especially as it related to crime prevention; increasing neighborhood watch and business watch programs, and to support the school district's liaisons with the Department because it was a key Council Meeting Minutes for meetings held on June 7, 2011 Page 5 of 18 link between parents, campus, and police; and to continue 911 education of young people so it could help them save lives and prevent unnecessary calls to the police. He also stated the Department would continue to invest in the latest technology to detect, protect, prevent, and eliminate criminal activity, which included the OMEGA dash board which allowed data retrieval from the previous 24 hours to produce visualizations of that data, such as maps, charts, graphs, and reports in order to allocate resources more timely throughout the day or week. Next year, he remarked, the Department planned to support patrol officers with PUMA voice recorders which would reduce liabilities, aid in criminal investigation, and reduce false complaints. He ended his presentation stating the strategic planning process, various crime prevention strategies, community relations partnerships, and many of the youth programs would pay off and help maintain Anaheim's safe city status. Mayor Pro Tern Sidhu asked how the response times were decreasing when there were fewer employees in the department. Chief Welter responded a crime analysis solving meeting was held once a month in which the top 10 responses in each district was reviewed with the goal of trying to eliminate nuisance calls to allow more time to respond to priority calls and with GPS tracking in patrol cars, dispatchers would be able to see which car was the closest to a call. At 3:18 p.m., the adjourned regular meeting of May 17 concluded and the regular meeting of June 7, 2011 was called to order. Fire Chief Randy Bruegman reported the FY 2011/12 budget provided for the support of five specific divisions for a total of $59 million with a net cost to the GF of $44 million. There were 275 full -time employees and 7.8 part -time equivalent personnel. Over the last two to three years, expenditures had leveled off and revenues had declined due to rolling off of impact fees in the Platinum Triangle, a drop in building and plan permits, and a decrease in paramedic subscription service. He added the Anaheim FD was unique in that 25.8 percent of revenue would offset the budget noting that most agencies did not generate more than 10 percent of revenue. He added this next year the Department would be marketing the paramedic subscription service as a real benefit to those who participate. Organizationally, the Department eliminated one deputy chief, captured a full -time budget officer from the Audits Division, and flattened the organization by allowing direct reports by the fire marshal and emergency preparedness marshal directly to the Chief's office. The current performance measures, he stated, were based on averages while the future performance measures would be seen in the next budget cycle. Travel and response time and call process time to emergencies would be identified. Current year achievements included a complete review of the vision and values process and reorganization of the Metronet Dispatch service which offered dispatching services to six other cities. In February, the Department helped launch Kindness is Contagious month carrying that philosophy in the Department's value statement and daily operations. Two fire pumpers were on order, an international accreditation process was initiated, and a regionalization study with Fullerton and Orange was undertaken with the goal of becoming more efficient and more effective in delivering services between the three cities. New technology would include an advance vehicle locator, linked to a CAD process for dispatchers to see where each vehicle was located, a challenging task when six cities were involved. He added the Department had one of the most robust geographic information systems producing products we only read about. Currently the Department responded to approximately 29,000 incidents with 59,000 unit responses, 83.5 percent of which were medical in nature, 4.7 percent fires and the rest specialized emergencies or service calls. This past year, he stated, the Department focused on wild land /urban fires with equipment, training, and the development of agreements with forest services or other agencies and was prepared to address those types Council Meeting Minutes for meetings held on June 7, 2011 Page 6 of 18 of events. Two or more paramedics respond to every call and the two nurses on staff make sure the paramedics are trained and certified for field work. From the prevention, inspection, and investigation standpoint, Chief Bruegman remarked, fire prevention encompassed environmental protection and community outreach, last year attending 377 trade shows, working on fire permits and residential visits. One of the major environmental players in the City was the used oil program, funded through a grant, which last year collected over 48,000 gallons of oil that might otherwise have been dumped elsewhere. The Hazards Materials Division collected information from business to make sure that information was relayed to response mechanisms and to make sure companies had appropriate licenses and linked that information for field commanders to access those records in real time. Fire prevention staff also provided education and outreach helping coordinate the "Every 15 minute Drinking & Driving" Program, CPR certification and recertification, "Ready, Set, Go" Program, and vegetation management for property owners. A key component of the department was emergency preparedness and in high volatility areas with earthquake faults and wildland interface, 14 CERT teams were located throughout the City with their own stash of equipment to work in their own neighborhoods during disasters, which linked to the Mayor's "Hi, Neighbor" program. Other equipment was stored in the event any large scale inoculations must be distributed, an exercise that was practiced last fall during the dispensation of flu shots. For this fiscal year, the department was asked to meet a target reduction of $1.9 million and had to do it without layoffs due to a side letter with the AFA allowing the department to roll those individuals into a relief pool. Chief Bruegman explained staff analyzed several options and settled on the reduction of one unit out of Fire Station 8 and relocating a "quint" unit into that station. This meant that instead of two units, there would be one truck with four firefighters, having aerial capability as well as the initial fire combat ability. He discussed at length the process involved when determining the impacts of a reduction, whether it be a unit reduction or staff reduction, analyzing impact on unit availability, the impact on time when the station dispatched the unit until it arrived on scene and the impact on the fire force (assembling 16 firefighters with a chief officer on scene in an emergency). All of these factors were reviewed and analyzed and it was from that analysis, it was determined that removing one unit from Fire Station 8 had the least impact on operations. For the coming year, the departmental reorganization would be completed, reviewing every aspect of operation to see if there was a more efficient way to operate and there was also a business study going on with the JPA training center to determine what should be done to update the facility and its training methods to address newer methods of providing fire service. A facilities capital improvement plan would also be developed with $350,000 in the budget for Station 8 improvements and staff was also looking at whether there was a better and less expensive way to buy fire apparatus than the current process. Two type 3 fire pumpers were budgeted critical for wildland and urban land interface. He added the Department would continue to focus on leadership and a succession plan as over 20 percent of the workforce would be eligible to retire with maximum benefits within the next five years and he anticipated that would happen. With that in mind, a testing process for new hires was being developed as well as a process of accreditation. Organizationally, he stated, as the department moved forward, it was necessary to be innovative and look to do business differently. Part of that process was to institutionalize a quality improvement process and philosophy and the accreditation model was that model for fire services. This process, he stated, should take from two to three years to complete the self assessment and peer review and within the next year, a strategic plan regarding deployment options would be available to Council for review as well as a projections for the next five years. Council Meeting Minutes for meetings held on June 7, 2011 Page 7 of 18 The Department was fully engaged with the Freedom & Kindness initiative and was scheduled to launch the "Hi, Neighbor" initiative. Part of the freedom process was the Department's regulatory reform group, and staff was looking to provide some reform to make it easier on businesses and still allow the department some level of comfort. FY 2011112 PUBLIC UTILITIES DEPARTMENT: Marcie Edwards, General Manager, Public Utilities Department, remarked there were hundreds of performance indicators for the Utility Department, however, they eventually rolled into areas of great concern to customers: reliability, quality, and price related. She stated that over the last few years, the total departmental budget generally trended downward, with power supply cost increasing significantly and between FY 10/11 and 11/12, that figure represented almost $20 million. This power supply increase, she pointed out, was largely offset through tough decisions and reaffirming priorities in the balancing of the budget resulting in a total proposed FY 2011/12 budget of $486 million, an overall drop from last year of about $6 -7 million. Regarding employee counts, the 11/12 budget included 355 FT positions, a reduction of 22 from the 377 employees, over the last several years. This reduction, she pointed out was accomplished by not filling positions as employees retired and finding other ways to get the work done to customers' satisfaction. The part time count was 26, down from the current year's 39. She added the national average for utilities with 100,000 or more meters was one employee for every 276 meters, pointing out Anaheim had 445 meters per electric employee and 626 meters per water employee, meaning the Utility performed the same work as other similar utilities with 40 to 50 percent fewer employees. Another point she clarified was that all departmental expenses rolled up into either the water or electric utility with all costs ultimately paid from those two revenue streams, entirely self - supported by electric and water rates. Water Use Forecast: Ms. Edwards reported a four year view of the water forecast projected a long, warm summer and a dry winter combined to give Anaheim high use in FY 2009. A more normal weather pattern as well as conservation brought down water use by eight percent the following year and in the current fiscal year, there was again a milder than usual summer and much of the year was milder that normal with the department anticipated to end the fiscal year with water demand far lower than previous years. A similar pattern was forecast for FY 2011/12. She explained the budget was then developed by taking projected water demand and modeling the expected use of water resources in response to that demand. In the case of water, there were only two sources, local pumped groundwater from Orange County Water District (OCWD) and purchased imported water from Metropolitan Water District (MWD). Customer use of the projected 59,000 acre feet of water this next year would translate into a revenue stream of about $56.8 million and the Water Utility portion of the proposed department budget reflected about $63.5 million consisting of operating costs associated with the actual commodity of water itself, debt service and capital. The additional revenue between $56.8 revenue from the water rates and the projected budget would come from bond funds and interest income. The $18.2 million in operating costs was for the ongoing field maintenance program to keep the thousands of valves, miles of pipe, multiple reservoirs and pumps running efficiently on a daily basis. It also funded planning and water conservation activities as well as the Utilities' share of common utility administration function such as customer service, accounting, and finance. For the year end, she pointed out, the operating cost was down by almost 10 percent. She added the largest part of the water utility budget was for water supply: OCWD's water, pumped from the local aquifer was priced the lowest and Anaheim used the maximum amount allowed. The proposed budget included $10.5 million for water from OCWD and another $15 million to purchase water from Council Meeting Minutes for meetings held on June 7, 2011 Page 8 of 18 MWD and $4 million in power costs for running water related system equipment. Additionally there would be about $9.3 million in debt service and a little over $9 million for water capital, with most projects paid out of bond reserves for that fiscal year, not revenues nor sales. Electric Utility Forecast: Ms. Edwards reported electric sales also declined significantly the last few years as a result of the downturn in the general economy. And as with water, the decline was compounded this fiscal year by a much cooler than normal summer which resulted in almost seven percent reduction in electric use. She remarked that the department was not able to be more conservative in estimating another mild summer and lower demand as was done with water revenues, because the Utility was required to base usage projects on normal historically warm summers, not periodic cool summers. She added there were millions of dollars in penalties that could be assessed if the department projected too conservatively. She further added if the energy forecast did not materialize, adjustments would have to be made at that time. A forecast of 2,400 gigowatt hours of energy used by Anaheim's retail customers would translate into a revenue stream of $325 million per year, and because Anaheim not only bought but sold energy, the Department projected another $32 million in revenues from wholesale market activities. She stated the Electric Utilities portion of the department's budget reflected $422 million and consisted of operating costs, power supply cost, debt service and capital. The difference between the $325 million in retail sales and the $422 million budget, she explained, was made up of other revenues in the electric business as well as bond funds. In Operating, Ms. Edwards pointed out, there was about $12 million for field maintenance programs, including routine maintenance to keep 13 substations and 1,200 miles of power lines operating smoothly, $5.5 million for electric operations which included the 24/7 operations desk, and also funded the maintenance of local power generation systems, the older power generator on Kraemer and the new Canyon Power Plant. There was also about $12 million in the operating budget for a variety of mandated business and community programs. By far the largest portion of the electric budget, she stressed, was for power supply. Using the forecast, the power supply budget reflected almost $274 million. Unlike water supply, she remarked, in power there were literally thousands of variables, using a complex power production model that determined the ultimate cost and utilization of electricity. She indicated it was complicated to point to one or two single elements that impacted the budget, however, she wished to address the major components of the $20 million increased power supply cost for the new year. Some was attributed to the Canyon Power Project coming on line this summer, about $13 million, however; the inclusion of Canyon in Anaheim's power portfolio would also create offsets to that increase such as the $8 million reduction in required wholesale energy purchases because the City could rely on the Canyon plant. Anaheim would also realize about $6.5 million reduction in external charges from the SOCAL Grid operator, simply by having Canyon available. Some of the increase in power supply would also be attributed to the Intermountain Power project, the 200 megawatts received from a coal plant in Utah, as its cost would go up about $5.5 million this year since the plant itself required fewer plant outages and would be on line more and when it ran more, its marginal costs increased. With this available for Anaheim's use, these were hours that the City did not have to buy from the market and then costs would go down, which was why, she explained, a complex cost modeling system was used. About $55 million in the Electric Utilities budget also reflected debt service, and another $32 million went towards capital projects. She added the Public Utility board reviewed all finances associated with both businesses in detail, from debt to asset ratio, debt service numbers, on and off balance sheet debt, and debt service reformulating. Highlighting some of the accomplishments for this fiscal year included 194 residential and four commercial solar projects that generated enough energy to power about 300 homes, with existing 216 active residential and 15 commercial projects additionally creating enough energy Council Meeting Minutes for meetings held on June 7, 2011 Page 9 of 18 to power another 475 homes. This year the department contracted to take power from a landfill in Brea, generating energy by collecting methane gas and turning it into electricity, enough to consistently power about 22,000 Anaheim homes. The department also continued to offer a wide variety of programs to customers which paid out this fiscal year with $1 million in residential and commercial incentives that resulted in energy savings and another $350,000 in rebates for energy star appliances, about 2,500 free home utility checkups, 2.500 free shade trees and 1,000 customers receiving one time emergency assistance for help in paying their electric bill. The Water Utilities aggressive schedule of exercising water valves and inspecting hydrants continued and almost 8,000 of 23,000 water valves and 3,000 of 7800 hydrants were inspected and maintained. There was also an on going systematic pump and motor replacement program to replace unreliable, inefficient or worn pumps at all facilities. Utilities was also responsible for a program aimed at preventing groundwater contamination in the city, requiring responsible parties to clean up contamination caused by leaks from underground storage tanks so they would not infiltrate the local aquifer. This year the program closed five more cases and to date, over 300 leaky tank sites had been cleaned up in Anaheim. In the past 20 years, Anaheim's water use dropped by nine percent while the population had grown by 31 percent. This, she reported, was a reflection of the success of Anaheim's conservation program and since 1993; customers saved over 84 billion gallons of water. This fiscal year the water utility also made major investments in new and upgraded facilities, including Nohl Canyon Water Tank and the Olive Hill pump station; the departments was also continuing the program to install new water wells in Anaheim. The warehouse scrap program was successful and anticipated generating almost half a million dollars in the coming year. The electric utility also made major investments in facilities and infrastructures with the Canyon Power Plant, testing for commercial operation, the first two of four units took place the week of May 22, were up and running and plugged into the grid. The two units should be commercially available for this summer with the other two units to be on line by fall. This would be the first industrial application using recycled water from OCWD groundwater replenishment program. A continuing staple in the capital program, were the undergrounding projects reaching the 100 mile mark completed in the current fiscal year. For the new year, the department intended to provide solar panels for a large portion of the Convention Center with enough roof top space to add 1,500 kilowatts of solar energy, a utility owned project that would benefit the Convention Center from the standpoint of it being a good marketing tool and benefit the utility for inclusion as part of the required overall renewable energy portfolio. Next year, the department also planned to expand the recycled water project by completing the water recycling demo project near city hall, 100,000 gallons per day capacity treatment facility to eventually offset the need to import up to 35 million gallons of water a year. In the upcoming year, using a grant, the department would conduct a feasibility study to potentially provide recycled water in a variety of areas within Anaheim along Ball Road and would include evaluating the viability of using an abandoned 16 inch diameter oil and gas pipeline presently in the road to increase the availability, both to create and distribute recycled water in the city. The Department also continued to invest in the water system for the upcoming year; Hidden Canon pump station near Serrano would be expanded for fire flow capacity and reliability of water system in higher elevations, and Linda Vista reservoir and pump station would be rehabbed by phasing -in improvements to this 70 year old facility. Next year, the utility would be further expanding the use of the design -build process for undergrounding by using design -build on Lincoln /Magnolia to save over $1.2 in costs plus time to minimize traffic impacts and to allow designs to run parallel. Construction would drop from 36 to 20 months. Lastly, continuing to expand on Freedom and Kindness initiative, the Utility would work to put regulatory reform into a personal connection with customers, continue to streamline programs, enhance the website, and continue to offer a wide variety of customized services. Council Meeting Minutes for meetings held on June 7, 2011 Page 10 of 18 Council Member Murray inquired how the state's environmental mandates impacted rates for Anaheim customers. Ms. Edwards responded there were not a lot of options available with the shortening of the timelines issued by the state's regulatory bodies, moving from a 20 percent renewable energy requirement to 30 percent. Contracts were in place to meet the requirements, however, she noted, a bill was passed recently that set interim targets and staff was wrestling with the most cost effective way to respond to those mandates. She added that some of the associated penalties were equivalent to going out and buying renewal credits. She had originally projected rates would increase by 12 to 17 percent over the next 10 years if everything remained as is, however with the 30 percent requirement, those rates could reach a 20 percent increase. She added the department was continuing to try to sensibly build its portfolio and would keep Council apprised. Council Member Murray asked Ms. Edwards to help residents understand why certain capital projects were continuing when residential and business rates were increasing. Ms. Edwards remarked that with the passage of AB1890, the Department was required to spend roughly three percent of operating income in predetermined categories: renewables, low income, research and development projects, and energy efficiency. Goals were set within each of those requirements but the requirement to spend the money was not optional, which meant anywhere from $12 to $25 million a year would be expended to meet those mandates. For undergrounding projects, four percent had been added to every bill which was approved some time ago, to underground all major transportation corridors in the City, and the Department was roughly halfway through that program. Council Member Galloway remarked the capital expenditures over the years had been substantial asking if that was indicative of deferred maintenance. Ms. Edwards responded that maintenance had not been deferred, rather it was a result of planned capital improvements and if a $50 million project was approved in one year but took five years to complete, those monies were tacked onto subsequent years. She added that some of the large borrowing also had to do with actual operating agreements with other agencies that were not in the capital program. Mayor Tait inquired how electric and water rates compared to neighboring cities with Ms. Edwards responding that electric rates were about ten percent lower in comparison to the local private utility, and a lot lower than some of the other public utilities. On the water side, Anaheim rates were in the lowest 30 percent rates within Orange County and competitive on both arenas. She also pointed out that most cities had a utility user tax on top of the utility bills and that Anaheim did not, so Anaheim customers were paying between 12 -15 percent less than the surrounding cities with utility user taxes in place. PUBLIC COMMENTS ON FISCAL YEAR 2011/2012 BUDGET: William Fitzgerald, Anaheim Maintaining Our Environment, opposed the water rate increase citing California' s large surplus of water. With no other comments offered, Mayor Tait continued the fiscal year 2011/2012 budget public hearing to June 14, 2011 at 1:00 P.M. ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 5:03 P.M., Council recessed to closed session for the following items. Council Meeting Minutes for meetings held on June 7, 2011 Page 11 of 18 CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 5496.9 of the Government Code) Name of Case: Alejandra Avila v. City of Anaheim; OCSC Case No. 30 -2009 00125103 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of case: City of Yorba Linda v. City of Anaheim, Orange County Superior Court Case No. 07CC08763 At 5:25 P.M., Council session was reconvened. Invocation: Council Member Gail Eastman Flag Salute: Council Member Lord Galloway Presentations: Recognizing the recipient of the 2011 Disneyland Resort Scholarship Lacy Gayton, Disneyland Resort, announced this was the sixth year of Disney's scholarship program remarking that over $260,000 in scholarships had been awarded to Orange County High School seniors donating hundreds of hours to ambitious community service projects while retaining a 3.5 GPA. This year Emily Samp, Cypress High School in Anaheim was one of the ten Orange County seniors receiving a $5,000 scholarship with a project involving Guide Dogs for the Blind. Recognizing the winners of Green Ribbon Week Contest Susan Faessel, Anaheim Beautiful, announced the elementary school students receiving this award. Mayor Tait called to order the Anaheim Housing Authority (in joint session with the Anaheim City Council) for a joint public comment session. ADDITIONS /DELETIONS TO THE AGENDAS: PUBLIC COMMENTS (all items except public hearings): Jeff Schleiger, resident, opposed the removal of a fire unit servicing Anaheim Hills citing public safety concerns William Fitzgerald, Homeowners Maintaining Our Environment, objected to the increase in water rates when there was a surplus of water in California. Cecil Corkin Jordan, resident, remarked he had seen improvements in the City and supported Mayor Tait's "Hi Neighbor" initiative. James Noble complained that issues he had brought to Council's attention in May were unresolved. Dorothy Rose, Orange County Symphony, thanked the City for its support over the years and tH announced an upcoming concert season at Servite Auditorium beginning June 26 Council Meeting Minutes for meetings held on June 7, 2011 Page 12 of 18 At 5:59 P.M., City Council session was reconvened. CONSENT CALENDAR: Mayor Pro Tem Sidhu moved to waive reading in full of all ordinances and resolutions and to adopt the 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 Eastman. Roll Call Vote: Ayes — 5: Mayor Tait and Council Members: Galloway, Eastman, Murray and Sidhu. Noes — 0. Motion Carried 3. Receive and file minutes of the Library Board meetings of March 14, 2011 and April 11, B105 2011; Sister City Commission meeting of April 25, 2011; Public Utilities Board meeting of April 27, 2011; and Parks and Recreation Commission meeting of April 27, 2011. 4. Award the contract to the lowest responsible bidder, Asplundh Construction Corporation, in the amount of $1,449,957.50, for the Direct Buried Cable - Phase VIII project and AGR -6787 authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 5. Award the contract to the lowest responsible bidder, Canyon Springs Enterprises, in the amount of $8,357,215, for the Linda Vista Reservoir and Pump Station Replacement AGR -6788 project, waive all technical errors or discrepancies, and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 6. Award the contract to the lowest responsible bidder, Jeff Tracy, Inc., dba Land Forms Landscape Construction, in the amount of $540,015, for the Santa Ana Canyon Road Multi -Use Trail project (Imperial Highway to 500' east of Quintana Drive), authorize the AGR -6789 Finance Director to execute the Escrow Agreement pertaining to contract retentions, and increase the Public Works Department fiscal year 2010/11 revenue and expenditure appropriations by $500,000 for the Federal Transit Administration funding. 7. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a purchase order to Vidacare Corporation, in the amount of $26,661.45 D180 (including taxes and shipping), for intraosseous infusion medical kits for the Fire Department's paramedic units. 8. Approve a Joint Participation Agreement with the City of Buena Park for the construction AGR -6790 of the Knott Avenue pavement rehabilitation project (Crescent Avenue to Lincoln Avenue). 9. Approve the Second Amendment to Agreement with West Coast Arborists, Inc., increasing the scope of tree maintenance services and the annual not -to- exceed AGR- 4565.2 contract amount to $ 1,693,560 to cover the cost of the additional services. 10. Approve and authorize the Executive Director of Community Development to execute and administer the Second Amendment to Agreement, in substantial form, with Orange AGR - 1993.2 County Community Housing Corporation for participation in the HOME Program for the Casa Delia project. 11. RESOLUTION NO. 2011 -074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Workforce Investment Act Title I Master AGR- 2738.K Subgrant Agreement between the City of Anaheim and the State of California for the term of April 1, 2011 through June 30, 2013. Council Meeting Minutes for meetings held on June 7, 2011 Page 13 of 18 12. RESOLUTION NO. 2011 -075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the application for Statewide Park Program grant 8100 funds for the Ponderosa Park and Community Center project. Authorize the Director of Community Services to act as the agent of the City on all matters concerning this grant program, and if the grant application is successful and funds are approved, amend the Community Services Department budget accordingly for the fiscal year in which grant funds are received. 13. RESOLUTION NO. 2011 -076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the application for Statewide Park Program grant R100 funds for the Cerritos Avenue property. Authorize the Director of Community Services to act as the agent of the City on all matters concerning this grant program, and if the grant application is successful and funds are approved, amend the Community Services Department budget accordingly for the fiscal year in which grant funds are received. 14. RESOLUTION NO. 2011 -077 A RESOLUTION OF THE CITY COUNCIL OF D154.4 THE CITY OF ANAHEIM approving a Letter of Understanding between the Anaheim Firefighters Association, Local 2899 and the City of Anaheim. 15. RESOLUTION NO. 2011 -078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a public utility easement located at 1357 South Palm Pilo Street, pursuant to California Streets and Highway Code Section 8330, et seq. - Summary Vacation (Abandonment No. ABA2011- 00228). 16. RESOLUTION NO. 2011 -079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the 2010 Urban Water Management Plan and 8100 authorizing the Public Utilities General Manager or her designee to file the Urban Water Management Plan and take such other necessary actions to implement and administer the plan. 17. RESOLUTION NO. 2011 -080 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Community Services). 18. ORDINANCE NO. 6211 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM repealing Section 1.04.900 of Chapter 1.04 of Title 1 of the M142 Anaheim Municipal Code relating to the Golf Commission (introduced at Council meeting of May 17, 2011, Item No. 27). 19. ORDINANCE NO. 6212 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM temporarily waiving certain provisions of Chapter 17.38 of M142 Title 17 of the Anaheim Municipal Code relating to deferral of certain impact fees (introduced at Council meeting of May 17, 2011, Item No. 28). 20. ORDINANCE NO. 6213 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Subsections .010 and .040 of Section 18.20.120 M142 of Chapter 18.20 of Title 18 of the Anaheim Municipal Code (Zoning Code Amendment No. 2011- 00098) (DEV2010- 00161; introduced at Council meeting of May 17, 2011, Item No. 31). Council Meeting Minutes for meetings held on June 7, 2011 Page 14 of 18 ORDINANCE NO. 6214 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (i) approving Development Agreement No. 2010 -00004 by and between the City of Anaheim and BRE Properties, Inc. (ii) making certain findings related thereto, (iii) authorizing the Mayor to execute said agreement for and on behalf of the City, and (iv) terminating Development Agreement Nos. 2005 -00002 and 2005- 00003, as subsequently amended (DEV2010- 00161; introduced at Council meeting of May 17, 2011, Item No. 31). 21. ORDINANCE NO. 6215 (INTRODUCTION) AN ORDINANCE OF THE CITY M142 COUNCIL OF THE CITY OF ANAHEIM amending Chapter 4.95 of Title 4 of the Anaheim Municipal Code pertaining to false alarms. 22. Approve minutes of the Council meeting of May 17, 2011. PUBLIC HEARINGS: 23. This is a public hearing to consider a resolution determining the public interest and necessity for the acquisition of property located at 1610 South Brookhurst Street for the P121 Brookhurst Street widening from Ball Road to Katella Avenue. RESOLUTION NO. 2011 -081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM determining the public interest and necessity for the acquisition of property located at 1610 South Brookhurst Street for the purposes of the Brookhurst Street widening from Ball Road to Katella Avenue project (R/W ACQ2009- 00353). Natalie Meeks, PW Director, presented the public hearing for the acquisition of right -of -way necessary for the construction of the Brookhurst Street Widening project from Ball Road to Katella Avenue. Brookhurst Street would be improved by adding three thru -lanes in each direction along with median and pedestrian improvements. This segment of Brookhurst, she explained was the only segment between Interstate 5 and Pacific Coast Highway that had not been widened to six lanes and created a bottleneck for north /south traffic in the area. A short segment of southbound Brookhurst north of Cerritos would remain two lanes to be widened in the future in cooperation with the County of Orange in phase 2 of this project. She indicated both phases of the project had been environmentally cleared for the Initial Study and Mitigated Negative Declaration approved by Council on June 22, 2010. Ms. Meeks stated the project, as planned, required the acquisition of 23 single family properties and that staff was in the process of acquiring the property necessary to implement the project. Acquisition agreements had been approved for 15 of the 23 properties to date and staff continued to work with the other property owners to reach settlement. The property on tonight's agenda was being recommended for adoption of a resolution of necessity to advance the acquisition process and while negotiations with the property owner were underway and staff hoped to reach settlement, it was important to pursue a parallel path to possession in order to insure possession of the property in time for construction. Mayor Tait announced in this public hearing he would take testimony from the owner of record or designated representative for this property. Testimony would be limited to the following five issues only: 1) whether the public interest and necessity require the project, 2) whether the property was planned and located in a manner most compatible with the greatest public good and least private injury; 3) whether the property sought to be acquired was necessary for the project; 4) whether the offer required by Gov. Code Section 7267.2 had been made to the owner or owners or record; and 5) whether the City met all other prerequisites to the exercise of eminent domain in connection with the property. Council Meeting Minutes for meetings held on June 7, 2011 Page 15 of 18 Mayor Tait opened the public hearing for comments and receiving none, closed the hearing. Council Member Galloway moved to approve RESOLUTION No. 2011 -081 OF THE CITY OF ANAHEIM determining the public interest and necessity for the acquisition of property located at 1610 South Brookhurst Street for the purposes of the Brookhurst Street Widening from Ball Road to Katella Avenue project, seconded by Mayor Pro Tern Sidhu. Roll Call Vote: Ayes — 5: Mayor Tait and Council Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried. 24. This is a public hearing to consider a resolution confirming the diagram and assessment 'x106 and providing for the levy of the annual assessment in and for the Anaheim Resort Maintenance District for fiscal year 2011/12. RESOLUTION NO. 2011 -082 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM confirming the diagram and assessment and provide for the levy of the annual assessment in and for the Anaheim Resort Maintenance District. Dan Oregel, Public Works Department, reported that in July 1999, Council approved the formation of the Anaheim Resort Maintenance District based upon a vote to do so by property owners. These property owners, he explained, voted to levy an assessment upon themselves to insure the long -term quality of maintenance, repair, and replacement-of resort area public improvements consistent with the operation of the unique destination area. On May 17, 2011, Council initiated fiscal year 2011/12 annual levy by accepting the assessment engineers report and scheduling this public hearing. Mr. Oregel stated the engineer's report indicated the levy would generate approximately $4,437,711 which would be deposited into the resort maintenance district fund to be used solely for the operation and maintenance of the resort district and indicated the resort district advisory board had reviewed and approved the levy and the proposed budget. Council's approval would confirm the assessment and provide for the levy for the resort district. Mayor Tait opened the public hearing for comments and receiving none, closed the hearing. Council Member Murray moved to approve RESOLUTION No. 2011 -082 OF THE CITY OF ANAHEIM confirming the diagram and assessment and provide for the levy of the annual assessment in and for the Anaheim Resort Maintenance District, seconded by Mayor Pro Tem Sidhu. Roll Call Vote: Ayes — 5: Mayor Tait and Council Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried 25. DEVELOPMENT AGREEMENT NO. 2010 -00005 (DEV2010- 00182) OWNER: RRM Properties, LTD, P.O. Box 3600, Corona, CA 92882 APPLICANT: Ted Frattone, Hunsaker and Associates, 3 Hughes, Irvine, CA 92618 LOCATION: The 15.5 -acre site is located generally south of the Riverside (SR -91) Freeway, east of Eastern Transportation Corridor (SR -241) and approximately 3,600 AGR -6802 feet southeast of the intersection of Santa Ana Canyon Road and Gypsum Canyon Road. The applicant requests a Development Agreement by and between the City of Anaheim and RRM Properties, LTD. to provide for the development of 56 single- family residential units in conjunction with previously- approved Tentative Tract Map 17289 and Conditional Use Permit No. 2008 -05362 (Robertson's property). Environmental Determination: Previously- approved Mitigated Negative Declaration Council Meeting Minutes for meetings held on June 7, 2011 Page 16 of 18 ACTION TAKEN BY THE PLANNING COMMISSION: Motion recommending City Council approval of Development Agreement No. 2010- 00005 (DEV2010- 00182). VOTE: 6 -0. (Chairman Faessel and Commissioners Agarwal, Ament, Persaud, Ramirez and Seymour voted yes. Commissioner Karaki was absent) (Planning Commission meeting of May 9, 2011) MOTION: E/M Find and determine that the previously approved Mitigated Negative Declaration is adequate to serve as the required environmental documentation for this request. ORDINANCE NO. 6216 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (i) approving Development Agreement No. 2010 -00005 by and between the City of Anaheim and RRM Properties, LTD., (ii) making certain findings related thereto, and (iii) authorizing the Mayor to execute said agreement for and on behalf of the City (DEV2010- 00182). CJ Amstrup, Planning Department, reported this public hearing was a result of a request by RRM Properties to enter into a development agreement with the City governing the development of a 56 single family housing project approved in 2009. The project was adjacent to the Irvine Company's Mountain Park Development and last year, he stated, the City had entered into a 20 year development agreement with Irvine Company for development of their Mountain Park project. The Mountain Park project consisted of up to 2,500 residences, a park, school and a fire station on approximately 3,000 acres located south of the Riverside Freeway adjacent to the 241 toll road. He explained that access to the RRM project could only be taken through the gated private streets of Mountain Park and RRM could not begin construction until the Mountain Park project was underway. Mr. Amstrup explained this agreement would provide RRM Properties with a vested right to develop their property in the same time frame as the Mountain Park project and included dedication of an access road for construction of a water reservoir in Mountain Park, contribution of $500 per home for the construction of a youth sports facilities in addition to the payment of standard parks and recreation fees and an agreement to implement energy efficiency measures for the new homes. Both the Planning Commission and staff recommended Council approve this development agreement. Mayor Tait opened the public hearing for comments. Rich Robertson, applicant, remarked this development agreement was similar to that approved for the Irvine Company and was important to RRM Properties as they could not begin their project until the Mountain Park development was underway and it was unknown what that time frame would ultimately be given the economy and Irvine's 20 year development agreement with the City. He added RRM would be paying its fair share of all public improvements. William Fitzgerald, Homeowners Maintaining Our Environment, opposed the environmental document stating it was inadequate and voiced his disapproval of the proposed development stating there were no benefits to be derived for the City. He also opposed permitting development 15 to 20 years in the future. Rich Robertson, offering rebuttal to earlier comments, urged Council's consideration of an agreement consistent with that provided to the Irvine Company and looked forward to developing the site as soon as it was physically possible. Council Meeting Minutes for meetings held on June 7, 2011 Page 17 of 18 With no other comments offered, Mayor Tait closed the public hearing. Mayor Pro Tern Sidhu remarked the Irvine Company had been initially opposed to this development and asked if there was an actual agreement with the Irvine Company to provide access. Mr. Amstrup confirmed that access would be allowed through a private agreement between RRM Properties and the Irvine Company. Specifically, Mr. Robertson stated when the Irvine project was within 300 feet of the last tract, RRM could begin developing their site. He added there was no other access available as the State had shut down Coal Canyon for the wildlife preserve. He added that he had traded that easement on Coal Canyon for a field modification permit for the same amount of property on the back side. Council Member Eastman moved to find and determine that the previously approved Mitigated Negative Declaration was adequate to serve as the required environmental documentation and to introduce Ordinance No. 6216 (i) approving Development Agreement No. 2010 -00005 by and between the City of Anaheim and RRM Properties, LTD., (ii) making certain findings related thereto, and (iii) authorizing the Mayor to execute said agreement for and on behalf of the City (DEV2010- 00182), seconded by Mayor Pro Tern Sidhu. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried. Report on Closed Session Actions: None Council Communications: Council Member Eastman announced that she had accepted the Spirit of Partnership award, on behalf of the City, from the Santa Ana River, Trail & Parkway Partnership for the Anaheim Coves project. This was another addition to Anaheim's green space, a 14 acre nature park alongside the Santa Ana River (formerly called the Burris Pit) and scheduled to be opened in the fall. Mayor Pro Tern Sidhu announced the Annual Free Health Fair to be held on June 12 at the Brookhurst Community Center identifying the many private sponsors who provided for a variety of free services to all participants. He also reported The Orange County Job Fair scheduled for June 15th at the GardenWalk provided an opportunity to connect with over 100 Orange County employers recruiting for 1,500 jobs. He also addressed the concerns surrounding the reduction of one fire truck and provided facts that refuted a recent flyer distributed by AFA in the Anaheim Hills neighborhoods. Lastly he announced the 16 annual flag day observance would take place on June 11 in downtown Anaheim and encouraged the community to join in the celebration. Council Member Galloway reported her attendance at the ICSC Convention in Las Vegas along with Council Member Eastman. She explained this was an opportunity to learn about transportation development for municipalities. She also attended the dedication of the Nohl Canyon Water Storage Tank, a project that would benefit the City for a century and recognized Public Utilities Department employee, Peggy Oviedo. Council Member Murray acknowledged the work of the Public Utilities Department and specifically regarding the Nohl Canyon Water Storage Tank project, a planned 10 million gallon above ground drinking water storage tank facility which took a number of years to complete through a collaborative effort of surrounding communities. She shared that she was the commencement speaker at the South Baylor University, one of the largest and oldest academic institutions for acupuncture, herbology and oriental medicine quartered in Anaheim. She spoke Council Meeting Minutes for meetings held on June 7, 2011 Page 18 of 18 of the Anaheim Beautiful 40 Annual Awards Gala at the Anaheim Convention Center and encouraged citizens to become members and announced the Chocolate exhibit launched at the Muzeo. Mayor Tait thanked staff for their work on the first round of budget presentations and touched upon budget topics emphasizing that this Council would have a balanced budget, stop the drain on reserves and would take no action that would put public safety at risk. Adjournment: At 6:02 P.M., Mayor Tait adjourned the June 7, 2011 Council meeting to June 14, 2011 at 1:00 P.M. for the continued fiscal year 2011/12 budget public hearing. Res c ully submi ed, Linda N. Andal, CIVIC City Clerk