2013/05/14ANAHEIM CITY COUNCIL REGULAR MEETING
AND REGULAR ADJOURNED MEETING
OF MAY 14, 2013
The regular meeting of May 14, 2013 was called to order at 3:00 P.M. in the chambers of
Anaheim City Hall and adjourned to 4:30 P.M. for lack of a quorum. The regular adjourned
meeting was then called to order at 4:33 P.M. by Mayor Tait.
The meeting notice, agenda and related materials were duly posted on May 10, 2013.
PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Gail Eastman, Lucille
Kring and Kris Murray.
STAFF PRESENT: Interim City Manager Marcie Edwards, Interim City Attorney Michael
Houston, and City Clerk Linda Andal.
ADDITIONS /DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS:
Cecil Jordan Corcoran Outreach Homeless Ministries, updated council on the publishing of his
overview of the bible.
William Fitzgerald, Anaheim Home, voiced his opinion on the legality of the closed session
agenda.
At 4:40 P.M., Council recessed to closed session for consideration of the following item:
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section
54956.9: Seven potential cases
At 5:01 P.M., council session was reconvened.
INVOCATION: Scholar Jasdeep Singh Mann, Sikh Council of Southern California
FLAG SALUTE: Council Member Jordan Brandman
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Recognizing Arthur H. Echternacht, President, California- Hawaii Elks
Association
Recognizing John Welter, Police Chief, on his retirement from the City of
Anaheim
Chief Welter thanked council for the recognition and for their support to the department
throughout his tenure.
City Council Minutes of May 14, 2013
Page 2 of 27
Proclaiming May 2013, as Asian American and Pacific Islander Heritage
Month
Cyndi Ting thanked the city for recognizing Asian Americans and Pacific Islanders, adding that
she represented the Magnolia High School United Asian Club. She announced that the first
Chinese Lion Dance Team from Magnolia school would perform at the Anaheim Children's
Festival next Saturday. In addition, she indicated the first Asian American /Pacific Islander Spirit
Week would kick off next week with each of the clubs on campus representing different cultures
from Asia and sharing their experiences.
Proclaiming May 2013, as Jewish American Heritage Month
Proclaiming May 2013, as National Community Action Month
Rosa Renteria, Independencia Family Resource Center, accepted the proclamation thanking
the city for recognizing community action organizations and the services they provided.
Proclaiming May 13 -17, 2013, as Bike -to -Work Week
Ken Phipps, Orange County Transit Authority (OCTA), thanked Anaheim for its strong
participation in and promotion of Bike to Work Week, a priority program for OCTA. He remarked
that last year the OCTA board established a $4.5 million competitive grant program for bike
projects throughout the county and had awarded funds to 21 projects.
Proclaiming May 13 -17, 2013, as Project Management Week
Proclaiming May 19 -25, 2013, as National Emergency Medical Services
Week
Proclaiming May 19 -25, 2013, as National Public Works Week
City Engineer Mark Vukojevic remarked the Public Works Department provided for the
maintenance and operation of roads, bridges, public spaces, public facilities and the
underground water and sewer systems for the city. He added during Public Works Week, the
250 Anaheim Public Works team would educate and promote the public about the city's
infrastructure, engineering, construction and maintenance with its goal of improving the quality
of life for its residents, businesses and visitors.
Proclaiming May 15, 2013, as Peace Officer Memorial Day
Interim Police Chief Raul Quezada remarked that Peace Officer Memorial Day had been
established by President Kennedy in 1962 to recognize law enforcement officers who lost their
lives in the line of duty for the safety and protection of others, thanking council for heightening
awareness of this day.
Proclaiming May 22, 2013, as Harvey Milk Day
Dr. Kevin O'Grady, Gay and Lesbian Community Services Center of Orange County, thanked
the city for recognizing Harvey Milk and his significant contribution to civil rights in California.
At 5:14 P.M., Mayor Tait called to order the Anaheim Housing Authority (in joint session with the
Anaheim City Council).
City Council Minutes of May 14, 2013
Page 3 of 27
ADDITIONS /DELETIONS TO THE AGENDAS: None
PUBLIC COMMENTS (all agenda items, except public hearing): Mayor Tait established
guidelines for public comments stating they would cover agenda items 1 through 24, including
Item No. 23 regarding the proposed economic assistance agreements for the GardenWalk hotel
project. He added the Public Hearing for the proposed amendment to the GardenWalk project
development agreement would occur later during the meeting and the public would be given an
opportunity to speak at that time.
Russell, reported traffic lights on Harbor Boulevard were not set properly to allow pedestrians to
cross safely. Mayor Tait referred this matter to the Interim City Manager.
Cecil Jordan Corcoran, Outreach Homeless Ministries, discussed the status of his bible review
project.
Henry Vandermeir, Democratic Party of Orange County, presented a resolution on behalf of the
local Democratic Party concerning the adoption of district elections in Anaheim. He read the
specifics of the resolution encouraging adoption of eight separate districts and placing the
matter on the ballot for the 2014 general election.
James Robert Reade, resident, voiced his opinion on Pauline, Eastside, Citron and Ponderosa
gang activity, remarking the new Traveler's gang was gaining strength throughout the city.
William Fitzgerald, Anaheim Home, spoke on a number of issues related to staff, both past and
present. He offered copies of documents he felt would substantiate his allegation that a forgery
occurred on a contractual agreement with the city.
Craig Ferrell, resident, spoke in support of the proposed GardenWalk hotels, remarking there
was no risk to the general fund with no upfront expenditures required by the city. In addition,
the agreement would not diminish or take away funding from any existing city services while
generating future revenues and for those reasons, he encouraged council's approval.
Carol Latham thanked Anaheim city staff, the sponsors and the community for contributing to
the success of the WAND barbeque, adding that over 3,000 attended and enjoyed the West
Anaheim community event.
Michael Baker, updated council and the community on recent Boys and Girls Club events,
identifying goals that had been reached and those established for the future, adding that those
goals would not have been possible without the support of the city and the community.
Vivian Pham, Chair of the Citizens Advisory Committee, remarked the committee had finalized
their recommendation to city council last Thursday, i.e., to move forward with having the citizens
of Anaheim vote on whether to have elections by district or have them remain at large and
whether to increase the council membership. Additionally, Ms. Pham offered her support for a
worker retention ordinance to address the Honda Center workers and opposed the proposed
GardenWalk hotel tax incentive.
Stan Palowski, resident, spoke in support of the proposed GardenWalk hotels, remarking on the
success of the baseball stadium and the convention center, all built with the prospect of
generating future revenues. He added the GardenWalk project would grow revenues for future
generations.
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Michael Buss, Anaheim Arts Council, promoted the Anaheim Children's Art Festival at Center
Street Promenade this Saturday, featuring a day of free art activity and other events for children
and their families.
Jesse Jessup asked for moment of silence to draw attention to national and local racial
prejudice.
Jeff, resident, appealed to city council for the establishment of a worker retention ordinance to
help Honda Center workers retain their jobs. He supported district elections as well and
opposed the proposed GardenWalk tax incentive agreement.
Jeanette Lister, Honda Center employee, sought council adoption of a worker retention
ordinance, remarking Honda Center management had already posted recruitment ads on their
website to fill the positions of Aramark employees who were losing their jobs.
Yesenia Rojas from Anna Drive strongly opposed the proposed GardenWalk tax incentive
agreement, citing the need to retain tax dollars to help improve the disenfranchised
neighborhoods in the city.
Tefere Gebre, Orange County Labor Federation, remarked Honda Center employees were
being dismissed in order for Honda Center management to rehire at a lower rate of pay and
receive a $37,440 tax credit per employee due to the fact the Center was in the Anaheim
Enterprise Zone. He urged council to take action and represent those workers who had no
voice in this matter and to stop this type of practice in the enterprise zone.
Mark Daniels, resident, pointed out the Resort District and the Platinum Triangle had their own
designated street signs with the city seal omitted. He felt it was important to include the city
seal on those signs in a prominent manner as motorists traveled through intersections because
those areas should be identified as being in the City of Anaheim.
Jason Gonzales, resident, opposed the hotel tax incentive agreement, remarking revenues
should be earmarked for other needs such as playgrounds and street signs.
Genevieve Chavez Huizar opposed the GardenWalk hotel tax incentive plan which she stated
would take away funds for parks, libraries, and job growth in the city.
Sonia Hernandez discussed the impacts the death of Martin Angel Hernandez had on her family
and neighborhood, asking for accountability for the officer involved in his shooting.
Damian Ramirez, United Survivors of Anaheim, supported Honda Center workers who were
fighting for their jobs, the establishment of council elections by district and opposed the
GardenWalk hotel tax incentive.
Rick Skinner, resident, opposed the GardenWalk hotel agreement, stating the tax incentives
were unfair to other hotel operators and residents would lose $158 million in future lost
revenues.
John Gillespie, resident, opposed the GardenWalk hotel agreement, stating the hotel site was
one of the most prime real estate properties in the city and it made no business sense to give
away future revenues on a site that would eventually be developed because of that desirable
location.
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Charles Ahlers, OC V &CB, supported the need for four -star hotels in Anaheim to attract high -
end conventions and their attendees looking for luxury accommodations. Anaheim, he
remarked, had too many smaller hotels and not enough luxury room choices, and did not fare as
well as San Francisco, San Diego and in many cases, Los Angeles, for that reason. He
emphasized in order to do better, the product must change.
Duane Roberts, resident, urged council to adopt the Citizen Advisory Committee
recommendations as it would lead to greater civic engagement and representative government
for Anaheim. Regarding GardenWalk, he was not opposed to tax subsidy incentives on
principal but felt the developers should be required to pay employees living wages.
Patty Gainey, resident, opposed the GardenWalk Hotel agreement, believing it would not benefit
the residents and would continue to have negative impacts for 30 years.
German Santos, resident, believed there was a moral crisis in the nation with regard to racial
bias, explaining his personal situation and why he believed this to statement to be true.
Christopher Smith, Honda Center worker, urged council to represent its citizens and help save
jobs of Honda Center employees.
Alexandra Lopez talked of harassment by Anaheim police officers, asking that council stop this
type of activity against the community.
Theresa, inquired why officers were not using recording devices that were purchased in 2011 by
the Police Department, devices that could be used to confirm or deny allegations made against
officers by civilians.
Teri Thaxton, non - resident, spoke first to the need for accountability for police officers involved
in shootings and to the need for additional police officer training in all other areas.
Sandy Day, resident, presented statistics regarding the Doubletree Hotel which shared a similar
TOT incentive as that offered to GardenWalk hotels. In 2011, the Doubletree Hotel collected
and paid $8,622,594 in transient occupancy taxes (TOT) to Anaheim and received 50 percent of
that back in rebate, i.e., $4,311,297. In addition, there was almost $300,000 collected for
Anaheim Trails and Improvement District fees in November 2010. She added these funds did
not include sales or property taxes which the city also received, job growth through the hiring of
132 employees on staff as a mix of full and part-time, and the employment of 1,200 during 18
months of construction. She noted Council Member Kring and Mayor Tait were on the council
at that time and voted to approve the Doubletree development agreement in early 2000 and
because of that vote, 140 people had jobs today and this public /private partnership had met
promised expectations.
Victoria de Gomez expressed distrust that council would make the right decision on the
GardenWalk hotel project, asking that the citizens be allowed to vote on this proposal.
Vern Nelson, OJ Blog, spoke in opposition to the GardenWalk Hotel development agreement,
remarking if the developer would wait an additional year, he would be able to build the project
without any subsidy and Anaheim would receive 100 percent of the TOT. He stated if this
agreement was approved, other developers would demand the same treatment and he believed
that scenario had already occurred regarding the GardenWalk mall.
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Renee, remarked the people of Anaheim were waiting for action to be taken and for officers
involved in recent shootings to be held accountable for their acts or at the very least, have their
patrol routes changed from the inner city neighborhood to other sections of the city.
Donna Acevedo, resident, expressed grief over the death of Joel Acevedo remarking on the
impacts to her family. She objected to the positions taken by the council majority over recent
actions and tax breaks given to big corporations while residents remained disenfranchised.
Katie Rollins, resident, urged council enactment of district elections to allow representation for
all Anaheim residents and spoke in support of Honda Center workers, asking for assistance with
their job loss.
Trina Rollins, Honda Center employee, appealed to council to assist the workers whose efforts
contributed to making Anaheim event venues a success.
Linda Lagados, resident, objected to the developer tax subsidy asking that council make the
needs of children of low income families a priority, along with parks, libraries, and the homeless.
Tina Cortana, resident, urged the passage of a worker retention ordinance for the Honda Center
employees. Additionally, she supported district elections with eight council seats, asking that
this matter go before the vote of the people quickly.
Carolyn Johnson, resident, recommended an election on the GardenWalk hotel development be
held to let the people decide on the use of transient occupancy tax. Additionally she proposed
that some of those revenues be used to develop an international sporting club where youths
were helped by professional soccer players while developing their leadership skills as well as
their athletic ability.
Ada Briceno, Unite Here, Local 11, remarked that development subsidies in Los Angeles were
only offered when assistance was provided for surrounding communities along with a worker
retention ordinance to safeguard employees. Ms. Briceno advocated for a similar ordinance for
Anaheim to protect the Honda Center employees and protect against the financial incentives
brought about by the Anaheim Enterprise Zone.
An unidentified female did not feel enough was being done for the poor people of Anaheim,
citing specific instances to validate her observation.
Steve McKay, Anaheim Community Coalition, objected to the proposed developer incentive
plan, remarking future generations would point to this decision as one of the most disastrous
policy decisions made. He urged no action be taken.
Cynthia Ward, resident, requested Agenda Item No. 9 be pulled from the consent calendar for a
fuller understanding of the contract change order. Addressing Item No. 16, the Anaheim
Enterprise Zone, she expressed distress that employers within the Enterprise Zone could be
dismissed and then those employees replaced for the purpose of being rewarded with a tax
credit for doing so. She asked why the Chamber of Commerce was asking for over $1 million in
additional funds to administer the enterprise zone when an audit of their work was not yet been
completed and whether Chambers staff had met with the Honda Center management to
intervene on behalf of the layoffs, as required by the enterprise zone contract. Ms. Ward
recommended the audit be completed before actions were taken on this item.
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Dr. Patricia Adelekan, resident, urged council to take actions that would benefit all people, and
harm none.
Jill Kanzler, SOAR, spoke in support of the economic assistance agreement that would create
two four -star hotels in Anaheim GardenWalk emphasizing this project would benefit the resort
district, create thousands of new jobs and millions of dollars in tax revenue as well as breathe
new life into the GardenWalk Center. She added the SOAR coalition supported this project
because it would pose no risk to the general fund while serving as an important step in
revitalizing the city's tourist infrastructure, benefiting the city and its citizens as a whole.
Ricardo, resident, stated the developer tax subsidy was dividing the city, recommending it be
put to a vote of the people and allow the city to heal.
Maria Ariz, resident, explained the realities of working as a dishwasher and fighting for a
contract with Disney Corporation. She stood in solidarity with the Honda Center employees who
were losing their jobs, remarking it was the employees that made these venues successful.
Amin David, resident, citing the outcome of Anaheim council election statistics, urged council to
put the developer tax incentive on the ballot along with district elections.
Alex Lehey, Buena Park Library District, remarked that in 2009, Los Angeles Alliance for New
Economy study looked into what a $750 million taxpayer investment in Long Beach's tourist
industry yielded and found concentrated poverty as a result. He wondered if planned budget
cuts were taking away from the public good and whether so much public money was offered for
private development when West Anaheim was neglected. He asked for positive public services
on Beach Boulevard as deserving of council's attention and city resources as the Resort District.
Todd Ament, Chamber of Commerce, remarked the Chamber had a successful year with the
Anaheim Enterprise Zone and to date, over 3,000 people had been employed and over $10
million was invested in equipment and job growth for the city. Addressing the GardenWalk
project, he remarked that over the next 20 years, over $258 million would be generated for the
city, and should the subsidy not be approved, the city would get a less dense project that would
create a fraction of the jobs and revenue, that is, approximately $60 million over that same time
period. He urged council to approve the project and consider establishing a policy to bring more
jobs and create more revenue for the resort.
Lawrence Pearson Woodard, Sr., resident, announced that over the next four days, 6,000
members of the Elks would visit Anaheim, asking they be welcomed and encouraged to return
in 2017.
Brian Chuchua, resident, was distressed that an unintended consequence of the Anaheim
Enterprise Zone was for employers to fire employees and rehire at a lower wage in order to
qualify for a tax credit. He also urged council to deny the GardenWalk Hotel development
agreement.
Lord Galloway supported a worker retention ordinance to protect current Honda Center
employees and spoke in opposition to the $158 million tax subsidy for the GardenWalk hotels.
She added as a former council member, she understood this agreement, how and why it was
created and who benefited from it and she strongly objected to an agreement that profited a few
while ignoring Anaheim's disenfranchised.
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Andrea manes invited the community to enjoy the Greek Festival held at St. John the Baptist
Greek Orthodox Church this weekend.
Eric Altman, OCCORD, spoke against the $158 million tax subsidy, stating it did nothing to
create public resources, parks, libraries, and community centers in neighborhoods that
desperately needed those resources. Mr. Altman added this issue was one of the reasons the
community was urging city council elections by district rather than at large, to allow every
neighborhood to have a voice in how city needs were considered. He then urged council to
accept the recommendations of its citizen advisory committee and put a charter amendment on
the ballot, increasing the size of this council to six or eight seats and allow for a vote of the
people.
David Rose remarked in 1996 he approached the city with an idea to redevelop a 10 acre
church site, an orange grove, two hotels, a warehouse and a Chinese restaurant into a project
called Anaheim Center for Entertainment. Staff rejected that proposal and in 1999, it resurfaced
as Anaheim GardenWalk, modeled after Universal City Walk, but unfortunately, he stated, the
timing for that project occurred during the economic downturn. He emphasized existing
conventioneers and sports fans had the resort area bustling with visitors ready to spend money
and the only thing lacking was enough luxury four -star hotels to attract those high -end
spenders. He fully supported the GardenWalk Hotel development agreement.
Joanne Sosa, Take Back Anaheim, addressed specific comments to each of the council
members, ending her remarks stating a rally would be held on July 24 for community members
to celebrate their victory.
At 7:48 P.M. Mayor Tait recessed the city council meeting to address the Anaheim Housing
Authority agenda. Council session was reconvened at 7:49 P.M.
CONSENT CALENDAR: Council Member Kring removed Item Nos. 9 and 16 from the consent
calendar for further discussion. Mayor Tait indicated he would record an abstention on Item
No's. 4, 5, 6, 7 and 8 as his firm had worked with RJ Noble Company, Patriot Contracting &
Engineering and BP West Coast Products. Council Member Kring then moved to waive reading
in full of all ordinances and resolutions and to adopt the balanced of consent calendar as
presented, in accordance with reports, certifications and recommendations furnished each city
council member and as listed on the consent calendar, seconded by Council Member Murray.
Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and
Murray.) Noes — 0. Motion Carried.
8105 3. Receive and file minutes of the Community Services Board meeting of March 14, 2013,
Cultural and Heritage Commission meeting of March 21, 2013, Sister City Commission
meeting of March 25, 2013 and Public Utilities Board meetings of February 27, 2013 and
March 27, 2013.
4. Award the contract to the lowest responsible bidder, R.J. Noble Company, in the amount
of $701,247.08, for the Anaheim Boulevard Improvements from the Santa Ana Freeway
(1 -5) to Ball Road and authorize the Finance Director to execute the Escrow Agreement
AGR -7603 pertaining to contract retentions.
Motion by Council Member Kring to approve, seconded by Council Member Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and
Murray). Noes — 0. Abstention — 1: Mayor Tait. Motion to approve carried.
City Council Minutes of May 14, 2013
Page 9 of 27
5. Award the contract to the lowest responsible bidder, R.J. Noble Company, in the amount
AGR -7604 of $555,340.36, for the Broadway Improvements from Dale Avenue to Magnolia Avenue
and authorize the Finance Director to execute the Escrow Agreement pertaining to
contract retentions.
Motion by Council Member Kring to approve, seconded by Council Member Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and
Murray). Noes — 0. Abstention — 1: Mayor Tait. Motion to approve carried.
6. Award the contract to the lowest responsible bidder, R.J. Noble Company, in the amount
of $1,032,592.67, for the Knott Avenue Improvements from Orange Avenue to Lincoln
AGR -7605 Avenue and the Orange Avenue Improvements from Knott Avenue to Western Avenue
and authorize the Finance Director to execute the Escrow Agreement pertaining to
contract retentions.
Motion by Council Member Kring to approve, seconded by Council Member Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and
Murray). Noes — 0. Abstention — 1: Mayor Tait. Motion to approve carried.
7. Award the contract to the lowest responsible bidder, Patriot Contracting & Engineering,
in the amount of $1,555,190, for the West Anaheim Bike Trail (through Edison Powerline
AGR -7606 Easement) Improvements project from Lola Avenue to Broadway and authorize the
Finance Director to execute the Escrow Agreement pertaining to contract retentions.
Motion by Council Member Kring to approve, seconded by Council Member Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and
Murray). Noes — 0. Abstention — 1: Mayor Tait. Motion to approve carried
8. Approve an Agreement for Acquisition of Real Property with BP West Coast Products,
LLC, in the acquisition payment of $312,000, including a not -to- exceed $10,000
reimbursement payment to relocate a shutoff valve for property located at 1801 South
AGR -7607 State College Boulevard for a nonexclusive public utility easement and temporary
construction easement for the Katella Avenue Improvement 1A project (State College
Boulevard to Lewis Street) (RAN ACQ 2011- 00412).
Motion by Council Member Kring to approve, seconded by Council Member Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and
Murray). Noes — 0. Abstention — 1: Mayor Tait. Motion to approve carried
10. Approve and authorize the Community Development Director to execute and administer
the Cooperation Agreement (City /Housing Authority Loan Agreement) by and between
AGR -7602 the Anaheim Housing Authority and the City to fund a loan to the Successor Agency of
the Anaheim Redevelopment Agency.
11. Approve and authorize the Community Development Director to execute and administer
the Cooperation Agreement (Loan Agreement pursuant to Health and Safety Code
Section 34173(h)) by and between the City and the Successor Agency to the Anaheim
AGR- 7602.1 Redevelopment Agency to fund a loan to the Successor Agency of the Anaheim
Redevelopment Agency.
12. Approve an agreement with Jonathan Price Design, in an amount not to exceed $30,000
AGR- 3367.0 annually, to design the Anaheim magazine and graphic communication elements for a
City Council Minutes of May 14, 2013
Page 10 of 27
term of one year with two one -year optional renewals and authorize the City Manager to
execute any related documents to administer the agreement.
13. Approve the First Amendment of the Canyon Power Project Site Lease and Services
Agreement with Southern California Public Power Authority and authorize the Public
AGR- 5410.1.1 Utilities General Manager to take the necessary actions to implement and administer the
amendment.
14. Approve and authorize the Public Utilities General Manager to execute and take the
necessary actions to implement and administer License Agreement (Contract No.
AGR- 1955.0 9.1798) with Southern California Edison Company (SCE) for an electric transmission
and fiber optics right -of -way and License Agreement (Contact No. 9.1579) with SCE for
an electric overhead and underground distribution right -of -way to remain within the
Barre -Villa Park 220 kV transmission line right -of -way.
15. Approve and authorize the Human Resources Director to implement and offer an
D154.1 accelerated separation program for full -time employees in classifications assigned to the
D154.2 Confidential, Professional/Technical, Middle Management, Supervisory, and
Administrative Management units employed within the Community Development
Department.
RESOLUTION NO. 2013 -065 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving a Letter of Understanding between the Anaheim
Municipal Employees Association, General and Clerical Units and the City of Anaheim.
17. RESOLUTION NO. 2013 -067 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the Director of Community Services or his
AGR -7608 designee ( "Director ") to accept all grants from KaBOOM! on behalf of the City of
Anaheim for the installation and maintenance of playground equipment at Modjeska
Park, authorizing the Director to execute all required grant documents.
Approve the KaBOOM! Letter of Intent and authorize the Director of Community
Services, or his designee, to act as the agent of the City on all matters concerning this
grant program and to accept future stipends and funds received from KaBOOM! for
maintenance of the playground equipment at Modjeska Park.
18. RESOLUTION NO. 2013 -068 A RESOLUTION OF THE CITY COUNCIL
R100 OF THE CITY OF ANAHEIM expressing support for the exploration of a formal Sister
City relationship with Pudong, China.
19. ORDINANCE NO. 6274 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL
M142 OF THE CITY OF ANAHEIM amending portions of Chapter 18.116 of Title 18 of the
Anaheim Municipal Code, nunc pro tunc, to make clarifications to and/or correct errors or
omissions in Ordinance No. 6265, previously adopted (Introduced at Council meeting of
April 16, 2013, Item No. 20).
20. ORDINANCE NO. 6275 (ADOPTION) AN ORDINANCE OF THE CITY OF
M142 ANAHEIM amending Ordinance No. 6235, relating to a pilot program for the operation of
a self - service bicycle sharing system within the City of Anaheim (Introduced at Council
meeting of April 30, 2013, Item No. 24).
City Council Minutes of May 14, 2013
Page 11 of 27
M142 21. ORDINANCE NO. 6276 (ADOPTION)AN ORDINANCE OF THE CITY OF
ANAHEIM amending Chapter 14.40 of Title 14 of the Anaheim Municipal Code relating
to speed limits on city streets (Introduced at Council meeting of April 30, 2013, Item No.
25).
D114
22. Approve minutes of the Council meetings of April 16, 2013.
END OF CONSENT CALENDAR
9. Approve and authorize the Director of Public Works to execute Contract Change Order
AGR- 6517.0.1 No. 1, and any related documents, in the amount of $1,100,000 in favor of C.C. Myers,
Inc., for additional work for the Gene Autry Way Interchange Improvement project.
Mark Vukojevic, City Engineer, reported this item was a contract construction change order that
summarized all of the additional work that was performed on the Gene Autry Way Interchange
and roadway project. Of these items, he noted, approximately 85 percent were completed,
except for some additional fencing and roadway striping changes that would be finalized upon
approval of the contract change order. The work, he explained, included additional pavement
repairs requested by Caltrans, additional pavement on Haster Avenue, additional expenses for
utility relocations and adjustments to adjacent properties in order to make the project functional.
Council Member Kring inquired whether these changes were not anticipated in the original
contract with Mr. Vukojevic replying in the affirmative.
Council Member Kring then moved to approve Item No. 9, seconded by Mayor Pro Tern
Eastman. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman,
Kring and Murray.) Noes — 0. Motion Carried.
16. Receive and file the Annual Report pertaining to deliverables for the Year 1 Agreement
with the Anaheim Chamber of Commerce to implement the Anaheim Enterprise Zone,
approve the First Amendment to the Agreement with the Anaheim Chamber of
AGR - 7108.1 Commerce to implement the Anaheim Enterprise Zone and approve the Hiring Tax
Credit Voucher "Expedited" Application Fee, in the total amount of $128.
RESOLUTION NO. 2913 -066 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving an update of the boundaries of the targeted
employment area for the City of Anaheim Enterprise Zone reflecting new United States
census data.
Sheri Vander Dussen, Planning Director, presented a brief review of the first year of the
Anaheim Enterprise Zone (AEZ), along with proposed amendments to the existing contract
between the City and Chamber for administration of the zone, and an update to the City's
Targeted Employment Area, a component of the enterprise zone.
Last year, she reported, the California Department of Housing and Community Development
granted final designation to the Anaheim Enterprise Zone, effective February 1, 2012 for a
period of 15 years. For this designation, the City made specific commitments to the State that
had to be fulfilled in the first five years of the program and included a minimum budget, specific
marketing and outreach activities, business visitation and reporting requirements. She
indicated, Council subsequently entered into an agreement with the Anaheim Chamber of
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Page 12 of 27
Commerce to administer the enterprise zone for an initial period of five years with one option to
renew for an additional five -year period, and that included contract language that identified
specific reporting requirements and the scope of work for Year 1 as well as a compensation
schedule for each of the five years of the contract.
Ms. Vander Dussen stated the Chamber submitted its first Annual Report for review by the city
outlining achievements, services, and activities for the first year adding that the Chamber met
the provisions outlined in the scope of services of the contract, and exceeded them in many
instances. They had processed almost 1,500 tax credit vouchers for new employees and
implemented promotional activities for the enterprise zone resulting in over 28,000 contacts with
business and community groups.
Per contract provisions, Ms. Vander Dussen indicated an independent audit firm evaluated the
Chamber's performance and the overall performance of the enterprise zone for the first year,
including assessing program and contract compliance and reviewing internal controls and
reporting procedures related to the program. She stated although the audit was not yet
complete, initial positive feedback from the audit firm indicated the Chamber's performance and
compliance with the scope of services met or surpassed its obligations. The Chamber had
already initiated changes to its operation in response to minor observations from the auditor
related to its internal processes, controls and procedures and staff expected recommendations
in the final audit report would result in refinements to the operation and administration of the
AEZ to attain positive results in future audits by the state.
CONTRACT AMENDMENTS
Based on actual costs of applying the enterprise zone for the first year, Ms. Vander Dussen
stated the Chamber had submitted a request to modify the agreement and increase
compensation to more accurately reflect the costs they incurred, including the addition of City
sponsorship of key community events, the creation of an "expedited" voucher process and
related fee, and minor clarifications to the wording of the contract. She added the original
contract identified specific payment for each of the five years of the contract based on research
and discussions with other local enterprise zones. She added that since all other enterprise
zones were operated by government agencies, it was difficult for the Chamber and the City to
clearly project the actual costs of the program. Therefore, she explained, the Chamber was
requesting an increase in compensation for Years 2 through 5 to reflect the actual costs of the
program incurred in Year 1. Those changes to compensation, she explained, were necessary to
fund additional staff to carry out the day -to -day enterprise zone tasks and cover higher -than-
anticipated costs related to event planning, reporting, and tracking activities.
In order to minimize the impact of the additional compensation requested by the Chamber, it
was proposed to be paid from voucher revenue collected. As part of the enterprise zone
program, Ms. Vander Dussen remarked, businesses were able to obtain tax credits from the
State when qualifying employees were hired. She further added that since those tax credits
were processed by the local enterprise zone and submitted to the State, the local zone could
collect fees for voucher processing and use the fees currently set at $100 per voucher to offset
the costs of enterprise zone administration. Based on Anaheim's first year of voucher activity
and voucher activity of other similar enterprise zones, staff projected voucher revenue for the
second contract year would be roughly $298,000, which would cover the additional amount
being requested by the Chamber. For future years, she remarked, voucher revenue was
expected to increase and level off at $500,000 per year.
City Council Minutes of May 14, 2013
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Ms. Vander Dussen noted when the contract was originally approved, voucher revenue was
expected to offset the cost the city incurred to create the enterprise zone over time and to
reimburse the General Fund for expenditures to the Chamber. Staff anticipated voucher
revenue would still cover all the additional costs being requested over the life of the zone;
however, approval of the additional compensation requested would mean that it would take
longer for the City to recover all of its costs. She added if the amount of voucher revenue
received was not enough to cover annual contract costs, the city would be able to defer or
modify certain contract tasks to reduce the compensation to the Chamber. In no instance, she
emphasized, would the city be required to pay any amount to the chamber that exceeded the
voucher revenue collected for the contract year and if the Chamber collected more voucher
revenue than what was needed to cover the contracted amount, that revenue would be remitted
to the city.
Ms. Vander Dussen stated the Chamber also requested to be paid up front in the remaining
contract years in order to address many unanticipated hard costs that occurred in the first year
as it was not uncommon for them to carry thousands of dollars in cost for activities that were
scheduled much later in the year. Since the Chamber would be required to report on a quarterly
basis with the city tracking progress regularly, any performance problem that surfaced, she
emphasized, would be noticed. In addition, Ms. Vander Dussen pointed out, the contract also
included a ten percent withholding for each payment until the annual report was submitted to
and approved by the city and staff could withhold more than ten percent if necessary to balance
the cost of tasks not completed. Lastly she pointed out, if the Chamber failed to complete tasks
there was the option of revoking the contract.
Two additional proposals were offered by the chamber. The first was an expedited review
process for voucher applications which would guarantee the timeframe for voucher processing,
and if not met, the Chamber would refund the expedited fee of $28. With the expedited fee, Ms.
Vander Dussen remarked, the total cost to process a voucher would be $128, a reasonable
amount given the value of a single voucher could be as much as $38,000. The second proposal
was to include sponsorship of several community events in this contract. The City would pay
$97,000 per year to sponsor the Taste of Anaheim, an Economic Development Conference, a
Business Awards program, and the Anaheim OC Job Fair and these events would complement
the Chamber's enterprise zone activities. The City would receive all the benefits of sponsorship
that were offered to major sponsors for each event and this sponsorship amount would also be
paid from voucher revenue. She added should not enough voucher revenue be collected, the
city would not be required to sponsor all of the events.
As a result of the Chamber's efforts, she reported, 74 Anaheim businesses benefitted from the
AEZ in the first year. The Chamber fulfilled all of its obligations during that first year, she
remarked, even dedicating Chamber resources beyond the contracted amount to complete
activities, and the proposed changes to the agreement would ensure the Chamber continued to
fulfill all of the City's obligations to the State to retain the AEZ.
PROPOSED TARGETED EMPLOYMENT AREA MODIFICATION
In addition to modifying the Chamber's contract, the Council was being asked to modify the
Targeted Employment Area, or TEA. As required by the State, Ms. Vander Dussen pointed out,
the TEA boundaries had been updated based on the latest census data. Anaheim Enterprise
Zone businesses could obtain a hiring tax credit if a resident of a TEA was hired since TEAs
were typically areas where a majority of the residents had relatively low incomes. As a result of
City Council Minutes of May 14, 2013
Page 14 of 27
this update, the number of qualifying census tracts for the Anaheim TEA was reduced from 63
census tracts to 53 census tracts and the total population with the Anaheim TEA was reduced
from 272,916 residents to 259,149 residents. These updated TEA boundaries, she remarked,
would be effective June 1, 2013.
Ms. Vander Dussen ended her presentation with a recommendation by staff to approve the
proposed amendments to the existing contract between the City and Chamber, including the
revised compensation and payment schedule, City sponsorships, the expedited processing fee
and minor clarifications, and to approve the update to the City's Targeted Employment Area.
In answer to Mayor Tait's question, Ms. Vander Dussen responded the audit would be
completed this June. Mayor Tait then stated he would prefer to see the results of the audit
before taking action on this amendment and moved for a continuance of this item until that time,
seconded by Council Member Kring for discussion purposes.
Mayor Pro Tern Eastman asked staff if a continuance would affect the zone operation, with Ms.
Vander Dussen replying the Chamber contract year was February through January coinciding
with the granting of the Anaheim Enterprise Zone, and while they were continuing to allocate the
same resources as the first year of the contract, they were most likely not recovering all of their
costs at this point in time. Mayor Pro Tern Eastman inquired whether approval could be granted
provisionally until the audit was submitted with the city attorney responding it would not be
appropriate and discussion was subsequently held on what other options were available to the
city related to audit rights or possible defaults or contract breaches. Ms. Vander Dussen
indicated there were provisions in the contract that allowed the city to terminate this contract at
any time without cause by giving 90 days' notice in writing to the Chamber and that the
Chamber could not terminate this agreement except for cause.
Mayor Pro Tern Eastman remarked an earlier concern had been raised by members of the
public regarding possible unintended consequences of the enterprise zone. Ms. Vander
Dussen responded the Honda Center was within the boundaries of the Anaheim Enterprise
Zone and nothing had been identified by staff that would make them ineligible for tax credits if
they were to hire eligible employees through the termination of the ARAMARK contract.
Roll Call Vote for Mayor Tait's motion for continuance of this item, seconded by Council Member
Kring. Roll Call Vote: Ayes — 1 (Mayor Tait) and Noes — 4: (Mayor Pro Tern Eastman and
Council Members: Brandman, Kring and Murray.) Motion Failed.
Council Member Kring moved to approve the First Amendment to the Agreement with the
Anaheim Chamber of Commerce to implement the Anaheim Enterprise Zone; to approve the
Hiring Tax Credit Voucher "Expedited" Application Fee, in the total amount of $128; and to
approve RESOLUTION NO. 2013 -066 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
approving an update of the boundaries of the targeted employment area for the City of Anaheim
Enterprise Zone reflecting new United States census data, seconded by Council Member
Murray. Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council Members: Brandman,
Kring and Murray.) Noes — 1: Mayor Tait. Motion Carried.
City Council Minutes of May 14, 2013
Page 15 of 27
23. City Council discussion and action on:
C350 RESOLUTION NO. 2013 -069 A RESOLUTION OF THE CITY COUNCIL OF
AGR- 1491AV THE CITY OF ANAHEIM approving the Fourth Addendum to the previously- approved
Pointe Anaheim Initial Study /Mitigated Negative Declaration for the Anaheim
AGR- 1491.V GardenWalk Project and determining that said addendum, together with other
previously- approved environmental documentation, serves as the appropriate
environmental documentation for the proposed Economic Assistance Agreements
between the City of Anaheim and GardenWalk Hotel I, LLC for the GardenWalk Hotels
Project.
RESOLUTION NO. 2013 -070 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving two Economic Assistance Agreements between the
City of Anaheim and GardenWalk Hotel I, LLC for the GardenWalk Hotels Project and
authorizing the City Manager to execute and administer the Agreements.
The Economic Assistance Agreements that are the subject of the aforementioned City
Council Resolutions authorize financial assistance from the City to GardenWalk Hotel I,
LLC in an amount equal to seventy percent (70 %) of the transient occupancy tax
generated by the Hotels (as defined in the agreements), with such financial assistance
ending on the earlier of (i) payment of the full Feasibility Gap Amount (as defined in the
agreements) for each hotel (which between the two Hotels amounts to a total of
$158,000,993 in financial assistance), (ii) a 20 -year period from the date of completion of
each hotel, or (iii) termination of the agreements.
Marcie Edwards, Interim City Manager, introduced this item, stating it was prudent for Anaheim
to continually look for new opportunities to help grow a critically important economic engine of
Anaheim, specifically the tourism and hospitality business through transient occupancy tax
(TOT). She indicated staff's analysis of the proposed GardenWalk assistance agreement was
that it would attract larger and highly rated conventions to Anaheim that would help the overall
economy by filling hotel rooms, restaurants and retail shops, and creating new monies for the
general fund and would not take away from existing city services. Currently, she added, there
were very few ways of raising money for increased investment needs and rather than
recommend raising taxes or cutting city services, this assistance agreement, she emphasized,
would enhance the city's revenue stream largely through its visitors. These increases in
revenues would help provide support services to neighborhoods and address many of the
needs voiced by Anaheim's residents. The funds to build the hotels would be put up by
investors and banks, and only when those hotels were operating, would the city then provide the
developer a share of the TOT they generated. She added this was structured as a
performance -based incentive and if taxes were not generated, the city would not provide
economic assistance. She further added that based on the work of experts in the hotel
development field, staff estimated the general fund would be better off by over $250 million
during the term of the hotel incentives.
John Woodhead, Community Development Director, reiterated that tourism played a significant
role in the economies of California, Orange County and Anaheim, and accounted for $106.4
billion in spending statewide and $83.5 billion countywide in 2012. He pointed out Anaheim
competed well for tourism revenue generated by such spending and its success had paid
dividends to the city's general fund. Once service costs and the Anaheim Resort related debt
service was deducted, approximately $45 million in net revenues were received by the city's
City Council Minutes of May 14, 2013
Page 16 of 27
general fund from $109 million gross transient occupancy tax (TOT) revenues received
annually. With an adopted general fund budget of $237 million, he pointed out the Anaheim
Resort provided revenue for nearly 20 percent of all general fund services, $45 million for 100
police officers, five fire companies, all city parks and libraries and the power generation costs for
over 19,000 street lights.
These resort revenues, he emphasized, were driven by taxes, specifically TOT principally paid
by visitors to the city and effectively lowering the tax burden to the residents of Anaheim. In
addition to generating $45 million in net revenue for the general fund annually, businesses in the
resort were assessed through the Anaheim Resort Maintenance District (ARMD) in order to
create and maintain a garden district that offered visitors a unique destination. Those special
assessments paid only by the businesses in the resort, funded median and parkway
landscaping, resort signage, bus shelters, special lighting and traffic signals at no cost to the
general fund. In addition, the property owners in the resort and Platinum Triangle approved the
Anaheim Tourism Improvement District (ATID) in 2010 which provided for marketing and
promotion as well as transportation improvements solely funded by the businesses in the resort.
The ARMD and ATID annually generated $15 million combined and allowed the resort area to
remain self- sufficient.
Mr. Woodhead discussed the competition between cities to capture tourism revenue. He shared
that while Anaheim had been able to attract and capture a significant portion of tourism revenue,
it did not attract large upscale convention and tourism business and addressed this issue in
1996 by establishing a plan to revitalize the city's tourist - serving infrastructure to expand the
industry. He added, over time this investment nearly doubled TOT revenue over the last
decade. In 2002, in an effort designed to compete for and attract additional higher tier
convention business for Anaheim and to raise the profile of the Anaheim resort, council
endorsed an economic incentive program to motivate the development of upscale hotels.
Several concepts, he explained were behind the 2002 hotel development incentive program.
The first was to be able to land more convention business which was not only good for upscale
hotels, but benefitted all the hotels in Anaheim. More conventions translated into increased
occupancy and room revenues for existing hotels which in turn increased TOT revenue for the
city. In addition, he pointed out, conventioneers staying in upscale hotels had more disposable
income and were more likely to spend money in Anaheim ultimately resulting in greater success
for local businesses and generation of sale tax revenue for the city.
Under the 2002 hotel development incentive program, Mr. Woodhead stated, Anaheim offered
assistance in an amount not to exceed 50 percent of project generated TOT. Unfortunately, he
remarked, no upscale hotels were developed under that program or through various assistance
agreements crafted outside the original parameters of that program over the course of the last
decade; however, during this period, he noted, there were incentives offered by competing
cities. The Miramar Hotel in Santa Barbara County would receive 70 percent of TOT over a 15
year period, the Port Lawrence Hotel in Palm Springs would gain 75 percent of TOT over 20
years, the Wilshire Grand Hotel would get 100 percent for 25 years and the Courtyard/
Residence Inn for LA Live would receive 50 percent of sales, property, business and TOT taxes
for 25 years, while LA Live downtown hotel would receive $246 million in TOT over 25 years
plus a $5 million grant and $4 million in permit fee rebates. He noted that public assistance in
southern California currently ranged from 14.8 to 33.5 percent of total development cost.
Because it had been the policy for Anaheim to attract upscale hotels for over a decade, and
since the 50 percent incentive yielded limited success with other competing cities gaining
City Council Minutes of May 14, 2013
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success using more robust incentive plans, Mr. Woodhead commented, staff then entered into
negotiations with a developer proposing to develop two four -star quality hotel towers on the
GardenWalk site. The goal was for a balanced incentive proposal that would put the developer
in a position to build the needed four -star hotels while delivering the best financial benefit to
Anaheim. In January 2012, he noted, council approved an economic assistance agreement
with GardenWalk Hotel I LLC, which provided assistance from the city to the developer equal to
80 percent of the gross TOT generated by the project over 15 years. That assistance was
estimated to equal $158 million gross or $75 million in net present value dollars, and provided
for a two - phased construction with the first phase beginning within two years. Mr. Woodhead
added since time constraints prevented an effective evaluation of the economic feasibility of the
project, staff did not endorse that agreement and subsequent court action invalidated it.
Mr. Woodhead reported the developer had now returned to staff with a revised proposal for the
city's consideration and staff had four months to negotiate and evaluate its financial aspects
which would provide for the development of up to 866 hotel rooms of a four -star caliber in two
phases. Project development costs were estimated to be $283 million and the agreements
provided for city assistance in an amount equal to 70 percent of the TOT for the development of
the convention hotel of not less than 466 rooms and a resort hotel of not less than 350 rooms.
He pointed out city assistance would end on the earlier date of 20 years from completion of
construction, or the receipt of TOT assistance up to a not to exceed amount of $158 million
gross, adding that the net present value of that maximum assistance was $46.6 million. That
$46.6 million, he stated, reflected 16 percent of development costs which compared favorably
with southern California competitors. In addition, he remarked, there were no upfront
expenditures required from the city, and, there was no risk to the city's general fund as provision
of the assistance was contingent upon completion of construction of the hotels and
commencement of operation and the generation of TOT from the hotels.
He further explained there had also been extensive analysis of the gap between the cost of
developing and operating the project and what costs the project could finance and viably
support. With current development costs of $283 million, the feasibility gap for the project was
$63.1 million (net present value) and it was that cap that the city assistance of $46.6 million in
net present value dollars was intended to partially fill. While the city assistance offered to
partially offset a cap in financing current development costs, it was also important to emphasize
the development operating risks were borne by the developer since city assistance was not due
to the developer until the applicable hotel was constructed and operated as required. Mr.
Woodhead indicated construction of the convention hotel was required no later than May 26,
2015 and was to be completed within 30 months, with the maximum city assistance to be
funded for that hotel at approximately $81.1 million. Construction of the resort hotel must begin
no later than November 26, 2019 to be completed within 30 months, with the maximum city
assistance for that hotel to be about $76.9 million dollars. Based on the developer's pro forma
and hotel economic analysis and the assumptions which had been validated by the City's
independent real estate economist, Mr. Woodhead stated staff determined that an economic
feasibility gap existed given the current financing marketplace and to the extent council desired
to maximize the probability of opening successful high end resort amenities in the near and
intermediate term and generate new general fund revenues sooner rather than later, staff
recommended approval of the proposed agreements as well as accompanying environmental
documentation.
Mr. Woodhead then compared what could be developed on the GardenWalk hotel sites without
city assistance versus the proposed tax incentive. In the current economic environment, he
City Council Minutes of May 14, 2013
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remarked, it was possible three -star quality hotels could be built without public assistance,
however, the development of such hotels without assistance would most likely be Type 4 wood
frame construction, effectively limiting the number of rooms that could be developed on any
given site. As that limitation related to GardenWalk, he stated, the two hotel sites could
probably accommodate development of no more than 250 rooms on each site, in contrast to the
approximately 866 that were currently proposed under the incentive agreement. Comparing the
city's 100 percent share of TOT revenues for such a three -star development with the city's 30
percent share of TOT revenue from the proposed four -star hotels during the term of the
proposed agreement revealed that revenues from the proposed four -star hotels exceeded the
three -star hotels by $124 million.
With the development of GardenWalk hotels, Mr. Woodhead further explained, it was
anticipated that a large number of guests who looked for upscale accommodations in Orange
County's beach cities or who were unable to secure accommodations at the upscale Disney
Hotels, would patronize the new facilities given GardenWalk's unique positioning and its high
quality facilities and amenities. And, in addition to the TOT generated directly by the two hotels,
Mr. Woodhead stated the city was expected to receive additional TOT from other hotels
because of the new conventions that these four -star quality hotels would attract and the
increase in value they would have on the Anaheim destination. This incremental increase in
TOT, he pointed out, was considered "net new" and because it was not generated by the
GardenWalk hotels, it was not subject to the agreements. The city also had an existing
obligation to pay out amounts reflective of and equal to 20 percent of TOT to the debt service
related to the 1997 Anaheim resort expansion and the bonds issued in connection with them.
The TOT generated by the convention center hotel, the resort hotel, and the "net new" TOT
would result in additional amounts being paid towards the existing debt service. All amounts of
TOT generated above and beyond the assisted amounts, and the resort debt service obligation,
would be available for discretionary use in the general fund to pay for core services such as
police and fire protection, library and recreational services, as well as enhance the quality of life
of the residents, businesses and visitors of the city. The entire project, he remarked, was
expected to generate approximately $484.5 million in new TOT to the city over the term of the
agreements and of that total, $255.6 million or more than half was expected to be retained by
the general fund to be used to provide core services. New sales tax and property taxes would
also be generated to the city as municipalities received one percent share of all taxable retail
sales generated primarily by food and beverage sales. Regarding property taxes, the city would
receive its portion for the one percent levy on assessed value. In addition to the city's portion of
tax revenue directly attributable to the GardenWalk hotels, Mr. Woodhead pointed out the
developer would also directly contribute to ATID, established in 2010 by a vote of property
owners to self- assess in the amount of two percent of room sales to provide funding for the
marketing and promotional services provided by the Anaheim /OC Visitor and Convention
Bureau and transportation needs.
Summarizing this data, he stated the agreements were estimated to generate a net $278.3
million in discretionary revenues available to the general fund to provide core services to all. In
addition, $70.9 million of project tax revenues could be of assistance to pay resort debt service
which could potentially pay off existing debt earlier by approximately 2.5 years. He added, this
potential early retirement of debt would relieve the general fund of more than $60 million of
annual debt service in the last 2.5 years. Lastly, $64.6 million in additional ATID assessments
would be available to reinvest in the Anaheim Resort to pay for marketing and promotional
activities as well as transportation needs. As noted in the developers hotel economic analysis
and validated by the city's independent real estate economist, Mr. Woodhead reported hotel
City Council Minutes of May 14, 2013
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development of a luxury caliber at the GardenWalk site would bring a number of positive
benefits to both the city of Anaheim and the greater hospitality community. In addition to
increasing tax revenues, enhancing existing hotel supply, and attracting highly rated
conventions to the city, the hotel development would also create and support approximately
1,300 permanent local jobs annually as well as 3,000 temporary jobs related to construction.
Moreover, he remarked, the proposed GardenWalk hotels would enhance and support retail
dining and entertainment outlets at the repositioned GardenWalk Center as originally envisioned
and the proposed agreement posed no risk to the general fund while serving as an important
step in revitalizing the city's tourist infrastructure and enhancing a destination that served as the
primary economic engine of Anaheim and benefited the city as a whole.
Mayor Tait remarked it appeared the potential $250 million in TOT was earned through the
years 2016 to 2042, with the vast majority of those funds occurring toward the end of that
timeline. In 2031, he stated the developer should get back about $80 for the first hotel with the
city retaining $12 million. Mr. Jim Rabe, Keyser Marston & Associates (an economic consultant
for the city), concurred stating by year 17 of the assistance period, the maximum assistance
was basically reached and in the other years of the agreement, years 18, 19 and 20, the city
should be receiving 100 percent of the TOT earned. Mayor Tait asked how the breakdown of
TOT was rebated to the developer with Mr. Rabe indicating the developer would receive $81
million for the first hotel and about $75 million for the second hotel, a smaller amount because
the room rates were less but the proportions would be similar, and close to $158 million in total
with the city receiving about $20 million in TOT revenues.
Mayor Tait inquired if the agreement outlined specific requirements for the developer to build
four -star hotels with Mr. Rabe replying there were several measures employed to insure quality
hotel construction. The first reflected a minimum amount needed to spend on each hotel in hard
construction dollars for furniture, fixtures and equipment (FF &E), a per room minimum that must
be expended to build the type of quality needed for a four -star hotel along with a series of hotel
operating standards that must be met, those standards taken from various raters of hotel
quality. Mr. Rabe affirmed there was no requirement for a rating agency to confirm the two
hotels were four -star facilities, however, if the hotels were only earning at a three -star level, the
argument could be made they were not meeting standards and would not qualify for assistance.
Mayor Tait expressed his concern that there was no redress in the agreement should the
proposed hotels not meet four -star standards and spoke about the luxury hotel requirement list.
Mr. Rabe indicated the list included the following: a wakeup call must be delivered within two
minutes of the requested time, the final bill must be offered to guests for review prior to final
receipt, television must feature premium cable or satellite pay per view movies and there must
be meeting space in both hotels. These requirements, he added, were not staff generated but
had been developed from AAA and other raters. Mayor Tait also inquired whether hotel plans
had been submitted and Mr. Woodhead responded that schematics had been provided as they
were required under the entitlements and the developer would not be able to deviate from them
much without deviating from the entitlements and the agreement. He then inquired how the
land value of $30 million for both hotels was determined, asking Mr. Rabe if it was worth that
amount. Mr. Rabe responded that without performing a detailed analysis with comparable land
values, his best guess would place the property at $18 to 22 million. Mayor Tait asked why the
market value had not been used rather than a cost value as the developer would be paid back
his cost as opposed to value. Mr. Rabe indicated the developer's acquisition and carrying costs
to date was used, a choice made during negotiations. He added that the developer would still
get the full assistance amount if $22 million was used instead of $30 million as the property
value, since there would still be a gap that was not being completely filled.
City Council Minutes of May 14, 2013
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Mayor Tait questioned how the eight percent discount rate was determined with Mr. Rabe
indicating to compute the gap, the return requirements for hotel projects was an 11 percent
return on costs, and over and above that, the current lending environment for hotel financing
was more difficult and a lender would only give 50 percent of cost or value with the rest coming
from equity. He added a combination of those reflected the difference between an economic
gap and a financing gap for the project as typically lending for hotels might be 65 to 75 percent
of value in a normal climate rather than the current 50 percent, which was why the gap was
significant. Mayor Tait commented, that in this agreement, the developer put up the land, had
his cost of the land valued at $30 million and any investor would get a 20 percent return on that
investment year in, and year out, with Mr. Rabe responding that 20 percent was required for a
hotel investor to underwrite the project.
Mayor Tait asked what the average room rate would be to yield anticipated TOT revenues for
the hotels with Mr. Rabe responding the Convention Center hotel would run $250 a night and
the resort hotel would command $260 per night. Bruce Baltin, PKF Consulting, remarked those
room rates reflected the average daily room rate over the course of the year. Mayor Tait
indicated he spoke to the Mariott and Hilton asking for room rates and whether they were four -
star establishments. The Mariott replied in the affirmative with a room rate of $129 and the
Hilton indicated they were a 3.5 star hotel, with Mayor Tait pointing out this should be a good
measurement of the proposed hotel's room rates. Mr. Baltin commented, that the Mariott may
be considered a four -star but it and the Hilton were older hotels that catered primarily to the
convention business and only secondarily to leisure businesses and their rates were lower
because they had more rooms to fill. He added after looking at those rates it was determined
there was a reasonable differential, about 47 percent, consistent with other markets in San
Diego and Los Angeles.
Council Member Kring asked if the room rates were predicated on 70 to 80 percent occupancy
with Mr. Baltin responding it was based on about 76 percent average occupancy rate. She
responded to comments of an earlier speaker emphasizing this agreement was not the same
and had more transient occupancy taxes coming to the general fund and therefore she was in
favor of the agreement, as compared to the agreement last year. Discussing the Hilton sale,
she indicated that last year, when the development agreement was approved, a financier
bought the Hilton Hotel for $200 million and the only entity to benefit was the previous Hilton
owners. The city received no new transient occupancy taxes from that deal.
Council Member Murray stated that since 1999, council spent several years doing the same
type of economic research that was done to date and came up with a 50 percent transient
occupancy tax share, plus sales tax, as an incentive for developers; a plan that was
unanimously approved, and included the votes of Council Member Kring and Mayor Tait who
were members of the city council at that time.
Council Member Kring concurred and offered background from her perspective. In 1999, she
explained, on a unanimous vote by council, GardenWalk was approved and was to consist of
three hotels, high -end dining and retail, public art displays and the possibility of a public
aquarium. In addition, 400 time share units were also planned above the hotel parking
structure. Included in the footprint of that project, she remarked, was the Anaheim Plaza Resort
which would have given the mall a frontage on Harbor Boulevard across from Disneyland. After
9/11, the economy suffered a period of uncertainty that halted much building and the developer
of this project did not have the funds to buy the hotel and the main entrance of the mall ended
City Council Minutes of May 14, 2013
Page 21 of 27
up on Katella. She noted there were a few starts and stops because of the economy and the
mall opened in June 2008 with about 65 percent occupancy. Six restaurants had all opened
between November 2007 and April 2008, including Council Member Kring's business and the
original deal approved by council gave the developer 50 percent of the sales tax to help with the
parking structure that was to be available for overflow parking from the convention center. They
were also to receive 50 percent of the TOT and 20 percent of sales tax from the hotels.
Gradually, she remarked, the food court restaurants closed along with her wine bar business
and various retailers. With the current plan for the proposed GardenWalk hotels, she indicated,
there would be a 70 percent rebate of TOT, with a two year window period before starting
construction. Unlike the former agreement of 1999, there would be no sales tax rebates to
hoteliers and unless the hotels were built and successful, no funds would ever be returned to
the developer. Property tax would continue to be paid, the developer would receive his rebate
and 20 percent of the TOT would be used to pay off the Anaheim Resort Bonds with 10 percent
going into the general fund. As the hotels were more successful, she remarked, the revenue
from these percentages would also increase. She added the subsidy was not open- ended, but
was for a time certain and was necessary for the developer to be able to obtain the construction
loan. She emphasized the city had a history of helping with economic assistance and in the
early 2000's when hotel brands were going to Garden Grove because they gave away free land,
TOT and sales tax, no revenues were coming to Anaheim and at that time it was determined a
50 percent rebate on TOT be offered for any new hotel construction. She noted Mayor Tait and
she were members of the council at that time, as they were in 1999, and the vote was
unanimous in support of this plan. She added only one hotel took advantage of this, the
Doubletree Suites, which had proven to be a successful venture. She believed the two
GardenWalk hotels would help visitors and conventioneers stay in Anaheim, attract larger and
higher end conventions and grow revenues for the future.
Council Member Murray emphasized with the substantial amount of research detail and two
independent economic studies that had been provided, she believed the data was
overwhelmingly in favor of the proposed agreement with extraordinary numbers of new net
revenue to the City of Anaheim over the life of this development agreement and zero impact to
services. If the hotels were not built to the construction quality of four -star service hotels, she
added, the developer would not receive the tax benefit. And, with California having gone
through one of the worst recessions with high unemployment rates in Anaheim, and the state
finding ways to divert every other source of revenue from local government, she stated this was
an option that reduced the tax burden on residents and businesses and would generate
hundreds of millions of dollars of new revenue over the term of the agreement. She added that
hotels were multi - generational, and when the tax increment benefit the city would receive was
calculated, it was in the hundreds of millions of dollars and would come directly to the city and
could not be diverted by the state. This decision for her, she explained, was made based on the
information provided and the need to insure the city was financially safe in the long -term and
she would support the agreements.
Mayor Tait announced he would not support this project citing the risk to the future general fund
through the loss of 70 percent TOT revenues earned by these hotels. Those feasibility gap
payments would commence 90 days after the initial operation year and would be made monthly
from that point on until the $158 million cap was reached. He believed if this was a viable
project, financiers would be looking to invest. He added currently there were seven hotels
under construction or in the planning stages in the City of Anaheim with over 1,200 rooms, all
being constructed without tax incentives, which meant this site would not remain vacant should
the GardenWalk hotels not be built. Additionally, he believed this process was the opposite of a
City Council Minutes of May 14, 2013
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free market and good government, and the development agreement contained no requirement
that the hotels be rated as four -star with no plans yet approved. Mayor Tait pointed out with
three -star hotels, 100 percent of the TOT would go to the city and offered no risk to the future.
He believed at the very least the citizens should vote on this project and made a motion to do
so. No second was offered and the motion failed.
Council Member Murray asked staff to respond as to whether there was a potential risk to the
future general fund. John Woodhead replied that other cities provided assistance to the
financing of a project and if there was some problem along the way, financing could put a
municipality at risk. This project would create a future revenue stream from transient occupancy
tax monies generated by the project, and against that future revenue stream the developer was
able to get financing. The financing, he explained was done by private parties and should any
problems arise, the city would have no risk under this scenario since it would receive 100
percent of the benefit for every new dollar generated. Council Member Murray remarked that
Garden Grove built a number of new hotels over the last few years by offering incentives and
were getting that TOT revenue only because of the nearness to Anaheim's resort district.
Those incentives included giving away free land, offsetting permits and fees, a TOT share and
in the most recent agreement, their voters approved revenue bonds that their residents were on
the hook for to fund those hotels, and these actions had taken place, she pointed out, with no
opposition from the residents. Council Member Murray referred to Mayor Tait's approval of a
development agreement in 1999 which included 50 percent TOT share and 50 percent sales tax
share, pointing out the current agreement only addressed TOT.
Mayor Tait concurred that he had voted for Point Anaheim in 1999 pointing out that what was
eventually built in 2006 did not reflect that agreement. He added there was also a sales tax
agreement in 2006 in which the retail sales tax at Garden Walk Center was reinstituted. With
regard to Garden Grove, he stated those were redevelopment agreements and his engineering
firm had worked for that city under contracts dealing with drainage and utility locations, not
financing. Location was important in development, he emphasized and Anaheim had location
just as Laguna Beach and Newport Beach did.
Mayor Pro Tern Eastman remarked one of the reasons the city was looking at incentives was to
be able to build a higher quality hotel and fill in what was missing in the resort district and, as
confirmed by Mr. Wood, the monies received from the four -star hotels receiving economic
assistance would exceed the revenues from three -star hotels receiving no assistance and
generating 100 percent of its TOT to the city. She was supportive of this project because of the
need in Anaheim's market place to attract higher -end conventions and ultimately more revenue.
She was also supportive of a general policy in which the city would consider giving subsidies to
developers willing to provide a higher level of product.
Council Member Kring reported plans were being discussed on expanding the convention
center to book bigger and higher -end conventions and these proposed luxury rooms were
needed to house the conventioneers. She also pointed out a special election to have the voters
consider this project would cost the taxpayers $200,000 to $300,000 adding that having citizens
vote on proposed projects would put a halt to any new businesses coming to Anaheim because
of the delay and uncertainty. She added the city council's purpose was to make those hard
decisions for the city and she would be supporting this project.
Council Member Murray affirmed she would also support this project because of the market
decisions presented to council that the project would grow the convention center and resort-
based businesses, a revenue stream that was unique to Anaheim, home to the largest
City Council Minutes of May 14, 2013
Page 23 of 27
convention center on the west coast. The data was based on two independent economic
studies and Anaheim's professional staff that showed there was a net positive gain with this
project and no future risk to the city. She asked that staff bring back an ordinance for future
council consideration that would offer these same terms available to anyone willing to build this
type of property in Anaheim. Mr. Houston recommended that request be offered during council
communications.
Council Member Brandman commented he had met with the applicant, the representatives, the
trades and those who were in favor and against the project during the course of discussion and
deliberation on this project. Based on the fact that a three -star hotel with 100 percent TOT
remitted to the city would generate $111 million while a four -star hotel with TOT assistance
would generate $235 million, and the fact that the GardenWalk hotels would be required to have
good paying construction jobs as part of this package, because of the public assistance given,
he would support this project. He discussed the history of progressive decisions made in
Anaheim that saw Disneyland, Angel Stadium and the Convention Center, followed by major
improvements to those venues to leverage population boom, even utilizing Anaheim Union High
School District bonding revenues. He expressed confidence that by moving forward with this
project, Anaheim would insure its competitiveness with other cities and was critical to be able to
reinvest in the neighborhoods.
Mayor Tait inquired if the developer had talked to the applicant about a certain percentage of
Anaheim labor being hired, Mr. Woodhead responded staff asked the applicant to work closely
with labor to come to some type of understanding and that the agreement stated "owner and city
wish to encourage local hiring practices where possible in connection with the construction of
hotels. Owner will notify that tax incentives are available for local hiring through the Anaheim
Enterprise Zone."
Council Member Murray moved to adopt RESOLUTION NO. 2013 -069 OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM approving the Fourth Addendum to the previously -
approved Pointe Anaheim Initial Study /Mitigated Negative Declaration for the Anaheim
GardenWalk Project and determining that said addendum, together with other previously -
approved environmental documentation, serves as the appropriate environmental
documentation for the proposed Economic Assistance Agreements between the City of
Anaheim and GardenWalk Hotel I, LLC for the GardenWalk Hotels Project, seconded by Mayor
Pro Tern Eastman. Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council Members:
Brandman, Kring and Murray.) Noes — 1: Mayor Tait. Motion Carried.
Council Member Murray moved to adopt RESOLUTION NO. 2013 -070 OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM approving two Economic Assistance Agreements
between the City of Anaheim and GardenWalk Hotel I, LLC for the GardenWalk Hotels Project
and authorizing the City Manager to execute and administer the Agreements, seconded by
Mayor Pro Tern Eastman. Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council
Members: Brandman, Kring and Murray.) Noes — 1: Mayor Tait. Motion Carried.
24. Approve conducting a review of the City's Charter, direct staff to commence a Charter
M100 review process, and direct staff to prepare a resolution for City Council consideration
that outlines the creation of a citizens advisory committee, referred to as the Charter
City Council Minutes of May 14, 2013
Page 24 of 27
Review Committee, scope of work of such committee, including potential areas of
amendment to the Charter for committee review /recommendation, and define a
timeframe for delivery of a final report with the Committee's recommendations and
authorize staff to receive applications for the selection and appointment of a Charter
Review Committee.
Paul Emery, Deputy City Manager, remarked that Council Member Brandman had requested
staff look into the re- establishment of a charter review committee on December 18, 2012. Since
that time, he stated, staff reviewed how Anaheim conducted charter reviews in the past, and
how nearby cities addressed that subject. He indicated larger cities similar to Anaheim
reviewed city charters every 10 years, created citizen advisory committees made up of
community members who were committed and knowledgeable about how government operated
with some retaining consultant services to assist with outreach efforts.
Since it had been more than 13 years since Anaheim considered changes to the charter, staff
was seeking approval to conduct a fifth charter review, establish a seven member advisory
committee and allow staff to begin accepting applications from residents interested in
participating in committee and take the necessary steps to pursue a charter review process. He
added staff was prepared to bring back a resolution on the May 28 agenda outlining the
makeup of the committee, with five direct appointments and two at large appointments selected
by the council, and to further define the scope of the work of the committee to provide a final
report that would consist of possible charter review amendments for council's review and
consideration.
Council Member Brandman appreciated staff's efforts on this issue and recommended a policy
for a charter review be conducted every ten years. Mr. Emery indicated proposed time frames
for this task would be laid out in the resolution to allow for a June election for any revisions for
the charter with an anticipated ten community meetings occurring in the fall in anticipation of
having a charter election in June. Council Member Brandman remarked when the California
Independent Redistricting Commission was adopted by voters, those commissioners were
appointed by the state auditor and the balance were appointed by the commissioners, which he
felt offered an independent commission makeup, suggesting a similar structure be considered
for Anaheim.
Council Member Kring approved Item No. 24, seconded by Council Member Murray. Roll Call
Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.)
Noes — 0. Motion Carried.
PUBLIC HEARING:
25. City Council discussion and action on:
C350 AMENDMENT NO. 4 TO SECOND AMENDED AND RESTATED DEVELOPMENT
AGREEMENT NO. 99 -01 (DEV2013- 00025)
AGR- 1463.2.4 OWNER: GardenWalk Hotel I, LLC, 333 City Boulevard West, Suite 1900, Orange, Ca
92868
APPLICANT /AGENT: Ajesh Patel, GardenWalk Hotel I, LLC, 333 City Boulevard West,
Suite 1900, Orange, Ca 92868
LOCATION: 1775 South Clementine Street and 300 West Disney Way
City Council Minutes of May 14, 2013
Page 25 of 27
Amendment No. 4 to the Second Amended and Restated Development Agreement No.
99 -01 as it pertains to the construction of two hotels that are approved as part of the
Anaheim GardenWalk project. The proposed Amendment would extend the required
construction start date by two years and allow phased construction.
Environmental Determination: The previously- approved Disneyland Resort Specific
Plan Environmental Impact Report No. 311, the 1999 Pointe Anaheim Initial Study and
Mitigated Negative Declaration ( "IS /MND "), the First Addendum to the IS /MND, the
2006 Second Addendum to the IS /MND, the Third Addendum to the IS /MND, and a
proposed Fourth Addendum to the IS /MND, dated March 27, 2013.
ACTION TAKEN BY THE PLANNING COMMISSION:
Recommended City Council approval of Amendment No. 4 to the Second Amended
and Restated Development Agreement No. 99 -01 (Dev2013- 00025).
Vote: 6 -0: Chair Pro Tempore Persaud and Commissioners Agarwal, Bostwick,
Faessel, Lieberman, Persaud, and Seymour voted yes. Chair Ramirez was absent.
(Planning Commission meeting of April 8, 2013).
RESOLUTION NO. 2013 -071 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the Fourth Addendum to the previously- approved
Pointe Anaheim Initial Study /Mitigated Negative Declaration for the Anaheim
GardenWalk project and determining that said addendum, together with other
previously- approved environmental documentation, serves as the appropriate
environmental documentation for the proposed Amendment No. 4 to the Second
Amended and Restated Development Agreement No. 99 -01 between the City of
Anaheim and GardenWalk Hotel I, LLC for the GardenWalk Hotels Project.
ORDINANCE NO. 6277 (INTRODUCTION) AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM approving Amendment No. 4 to Second
Amended and Restated Development Agreement No. 99 -01 by and between the City of
Anaheim and GardenWalk Hotel I, LLC; making certain findings related thereto; and
authorizing the Mayor to execute said agreement for and on behalf of the City.
Sheri Vander Dussen, Planning Director, reported this item was a request to amend the
development agreement associated with the construction of two hotels which were the subject
of the Economic Assistance Agreements discussed earlier this evening. The proposed
amendment, she explained, would change the required timing of construction to be consistent
with the Economic Assistance Agreements approved during this meeting. In addition, the
Planning Commission had reviewed this request on April 30 and unanimously recommended
City Council approval.
Mayor Pro Tern Eastman opened the public hearing remarking there was a five minute time
limit for any member of the public desiring to speak on this legislative item.
William Fitzgerald, Anaheim Home, stated while he had no objections to this item, there was not
a legal quorum here to vote on this item, citing and outlining, in his opinion, conflicts of interests
by members of council.
With no other public comments offered, Mayor Tait closed the public hearing.
Council Member Murray responding to Mr. Fitzgerald's comments stated they were completely
false, and she had no conflict of interest on this matter and would be voting on the item. Mayor
City Council Minutes of May 14, 2013
Page 26 of 27
Pro Tem Eastman also remarked she had no criminal conflict of interest and would be voting as
well. In addition, Council Member Brandman announced he had no criminal conflict of interest
as alleged by Mr. Fitzgerald and was comfortable voting on this project.
Mayor Tait reaffirmed he would be voting against the amendment as he believed the arguments
for the incentive to create jobs now was lost as the developer would not be building the second
hotel into late 2019. With this incentive offered, he believed construction should start as soon as
possible rather than delayed.
Mayor Pro Tem Eastman moved to adopt RESOLUTION NO. 2013 -071 OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM approving the Fourth Addendum to the previously -
approved Pointe Anaheim Initial Study /Mitigated Negative Declaration for the Anaheim
GardenWalk project and determining that said addendum, together with other previously -
approved environmental documentation, serves as the appropriate environmental
documentation for the proposed Amendment No. 4 to the Second Amended and Restated
Development Agreement No. 99 -01 between the City of Anaheim and GardenWalk Hotel I, LLC
for the GardenWalk Hotels Project, seconded by Council Member Kring. Roll Call Vote: Ayes —
4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and Murray.) Noes — 1:
Mayor Tait. Motion Carried.
Mayor Pro Tem Eastman then moved to introduce ORDINANCE NO. 6277 AN ORDINANCE
OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Amendment No. 4 to Second
Amended and Restated Development Agreement No. 99 -01 by and between the City of
Anaheim and GardenWalk Hotel I, LLC; making certain findings related thereto; and authorizing
the Mayor to execute said agreement for and on behalf of the City, seconded by Council
Member Kring. Roll Call Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members:
Brandman, Kring and Murray.) Noes — 1: Mayor Tait. Motion Carried.
REPORT ON CLOSED SESSION ITEMS:
Michael Houston, Interim City Attorney, reported on Item No. 1, stating by a vote of 5 -0 with all
council members voting yes, direction to initiate litigation was given on seven matters. The
action, defendants and other particulars shall, once formally commenced, be disclosed to any
person upon inquiry unless doing so would jeopardize the city's ability to serve process on any
defendant.
COUNCIL COMMUNICATIONS:
Council Member Brandman addressed his attendance at the following events: Cinco de Mayo
breakfast, dedication of the Anaheim Water Sustainability Campus on May 7 the WAND
barbeque on May 11 at Twila Reid Park and the Fire Services Day festivities at the NorthMet
Training Center. He announced the upcoming 7th Annual Health Fair at Magnolia Hospital and
thanked Police Chief John Welter for his service to the city, highlighting his accomplishments.
Council Member Murray also spoke to Chief John Welter's accomplishments during his tenure
with the city. In addition, she reported on the recent California Supreme Court ruling in favor of
municipality's rights to ban marijuana dispensaries within city borders, remarking that today
Anaheim had less than 10 dispensaries versus 120 that were operating in 2011. She thanked
the grass roots community efforts for taking a hard stance against those establishments.
Council Member Murray also announced the upcoming Children's Art Festival on May 18 at
City Council Minutes of May 14, 2013
Page 27 of 27
Center Street Promenade, a free event for family, and the Veterans' Memorial Dedication also
held on May 18 She as well thanked the Citizen Advisory Committee for Elections and Civic
Engagement for their work and dedication and addressed the proposed GardenWalk project
and the commitment of developer Bill O'Connell.
Council Member Kring requested an ordinance be prepared to address economic development
programs for all hotels in Anaheim, and that staff look at opportunities to create a pocket park
for children at a specific location she identified on Haster Street. She then announced the
upcoming Greek Festival and spoke of her attendance at the Family Justice Center gala.
Mayor Pro Tern Eastman reported on her travel plans to Washington, DC representing Anaheim
as a member of the Orange County Transportation Authority board. She thanked the Cultural
and Heritage Commission for another successful Art Crawl and thanked staff for distributing
meeting decorum information prior to the start of the meeting. She also announced that the use
of speaker cards would be implemented at the next council meeting and an informational
brochure related to council sessions would be available for interested persons.
Mayor Tait appreciated Mayor Pro Tern Eastman's implementation of speaker cards and
expressed his support for discussion of a proposed ordinance regarding hotel economic
development. He reported on his participation on the following events: UBM Cannon and
Business4Better Conference, American Cancer Society's Relay for Life at Canyon High School,
the Cinco De Mayo festival, the American National Day of Prayer at St. Justin Martyr and the 5K
Taylor Wish fundraiser in the Canyon area. Mayor Tait also announced the Veterans' Day
Memorial on Memorial Weekend and the start of a new tradition of raising a flag in honor of
departed veterans.
Adjournment: AT 11:01 P.M., with no other business to conduct, Mayor Tait adjourned the
May 14, 2013 city council meeting.
Re tfully submitted,
dV14fD
Linda N. Andal, CMC
City Clerk