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2013/07/23ANAHEIM CITY COUNCIL REGULAR MEETING OF JULY 23, 2013 The regular meeting of July 23, 2013 was called to order at 3:02 P.M. in the chambers of Anaheim City Hall. The meeting notice, agenda and related materials were duly posted on July 19, 2013. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Gail Eastman, Lucille Kring and Kris Murray. STAFF PRESENT: Interim City Manager Marcie Edwards, City Attorney Michael Houston and City Clerk Linda Andal. WORKSHOP — HOUSING ELEMENT Planning Director Sheri Vander Dussen introduced Dave Barquist of RBF Consulting and Jonathan Borrego, Principal Planner, to outline procedures updating the City's Housing Element. Mr. Barquist began the presentation reviewing the specific components of the update process, which would include project timelines, community engagement methods as well as key policy considerations, a precursor, he announced, to the next City Council Housing Element workshop. He explained the Housing Element was one of seven required elements within the General Plan and the only element which required certification and review from the State of California to serve as a legally binding document addressing local housing issues and a long -term policy for an eight year period. Its purpose was to identify existing needs in the community and the resources and tools to address issues and challenges in the future, with state certification creating an avenue for funding opportunities that offered a greater depth of options for secondary funding. The deadline for submittal, as required by state law, was October 2013 and should the city fail to meet that deadline, he indicated the planning process would drop to a four year period rather than an eight year cycle. HOUSING ELEMENT CONTENTS: Needs Assessment, a factor to be addressed in the Housing Element, evaluated all economic segments of the city, a wide spectrum of income considerations including identifying specific needs such as the elderly with disabilities or other individuals with special needs to be addressed in clear detail in the analysis. The Regional Housing Needs Assessment (RHNA) was a projection by Southern California Association of Governments (SCAG) of anticipated growth needs for the eight year planning period ending 2021 and a chart was provided which illustrated those projected needs in specific categories; i.e., extremely low income, very low income, low income, and moderate and above moderate incomes, all based on percentages of the multi - family income in Orange County for 2012 identified as $85,300. This table projected a total of 5,702 dwelling units needed by the City of Anaheim for families within those specific income categories for that planning period. He added this figure simply reflected the projected needs and was not a mandated quota, although the City was required to provide a policy and regulatory mechanism to allow the private market to build as they determined feasible. That median income level, he pointed out, changed based on the economy and looking back five years, had reached $98,000. When addressing needs, Mr. Barquist remarked, other factors were considered such as overpayment, overcrowding, uninhabitable - related issues due to deferred maintenance, the possible loss of housing stock for whatever reason including the expiration of housing affordability covenants that should be replaced with the cost of replacement and construction added to the equation. City Council Minutes of July 23, 2013 Page 2 of 15 The Resources and Constraints Analysis took a look at existing land inventory, including vacant and underutilized land with a potential for reuse or revitalization of existing uses; i.e., commercial to mixed use, industrial to residential. The city must also consider housing constraints, either governmental or non - governmental with Mr. Barquist pointing out governmental constraints such as timelines, approval process or fees could be under city control; non - governmental rates, he added, such as the cost of construction and interest rates, while not under city control, could impact the cost of construction and ultimately be translated to the buyer. Another important element to this process was to review existing policy programs, the progress made, what factors influenced success or failure and whether those polices should be continued. Resource changes, such as financial and staffing resources also had to be evaluated since they could have an influence on whether the program fared well with that policy analysis providing an effective tool to build on the existing program and make it more effective in the future. He added the Policy Program would include the 2014 -2021 Action Plan, adoption of the City Policy, policy actions and objectives as well as funding implementation. HOUSING UPDATE PROCESS: There were five steps to the update process identified by Mr. Barquist: Phase 1 was the review of the existing conditions with a Fall 2012/Winter 2013 timeline, Phase 2 addressed the public participation program, a Winter /Spring 2013 timeline; Phase 3 related to preparation of the draft Housing Element by January 2013; Phase 4 was the environmental analysis scheduled to be completed by Summer 2013; and Phase 5 was the scheduled adoption of the Housing Element in Fall 2013. COMMUNITY OUTREACH ACTIVITIES: In terms of public engagement and insuring outreach to the widest spectrum of the community, he noted staff made diligent efforts to reach the community through Anaheim TV, press releases, promotional flyers, and whenever a community event was held, took advantage of the opportunity to provide information at those events and encourage participation in the update process. Additionally, staff attended neighborhood council meetings for special presentations, sent e- blasts and other e- mailers, and instead of inviting the community to come to the city, held workshops within neighborhood communities all of which were memorialized as part of the Housing element process and available for review. In addition to the six workshops held in various portions of the city, a survey on the city's web page included 60 respondents whose questions mirrored some of those asked at the workshop. Through social media, a videotape was also available on YouTube for those interested persons who could not attend the community workshops. Lastly, he explained, city council had appointed an ad hoc committee who were diligently involved in the process and would be presenting their recommendations to council within the next month. KEY POLICY CONSIDERATIONS: Mr. Barquist remarked there were four basic key policy considerations: demographic changes, review of past performances, the needs of existing housing stock, and resource considerations. From the 2000 versus the 2010 census data, the population growth showed a population wave slowly aging throughout the region, not just in Anaheim. As to average household size, the actual trend in household size was increasing, with more individuals per household in the community as well as a diversity of race /ethnicity with Hispanics now reflected as above 50 percent in the 2010 census. In addition, 70 percent of housing built prior to 1980 reflected the need for repair and replacement, all of which had an influence on existing housing stock and needs. He explained housing conditions were also an important indicator in fashioning policy and by analyzing substandard conditions and /or complaints over the last two fiscal years, it was shown City Council Minutes of July 23, 2013 Page 3 of 15 that approximately 5,223 housing related complaints as detailed on a "heat" map highlighted where the largest number of registered complaints occurred in Anaheim, easily seen by the denser colors on this map. Regarding past performance, Mr. Barquist stated it was important to look at the last planning period of 2006 -2014, its objectives and actual achievements, and to understand the influencing factors and lessons learned from that program. For the previous planning period, SCAG had identified 9,498 regional housing needs, with the city establishing policy programs which recognized the need for 4,868 dwelling units, a quantity that could have been reasonably achieved during that planning period. Mr. Barquist noted that the actual number implemented was impressive at 4,566 dwelling units because the ability to reach some of those objectives related to a market that took a hit over the last few years due to the economic recession. When considering objectives for this coming planning period, Mr. Barquist pointed out the ability to finance programs and policies and staffing resources that would accommodate those polices, along with downward trends in entitlement funding and loss of redevelopment monies, all of these factors would have a significant impact on the city's ability to carry debt and finance through the long term all of which affected the policy and choices available. RESIDENTIAL OPPORTUNITY SITES: Jonathan Borrego, Planning Department, discussed carrying forward existing housing opportunities identified in the 2009 Housing Element. He stated Anaheim was required to demonstrate there was land capacity to accommodate 9,500 additional units in the last RHNA allocation and was able to demonstrate that capacity (which was all that was necessary) with several parcels in the city that were already designated for residential use in the General Plan as housing opportunity sites. Although sites had been designated for housing under the current General Plan, it was necessary for the city to come up with a zoning program which allowed the sites to develop housing without the need for future discretionary actions or public hearings. In order to ensure cities actively rezoned their housing opportunity sites, the state allowed those sites to be carried over into the new Housing Element and reuse them to accommodate the 5,700 unit new allocation figure and to also take advantage of the eight year planning cycle as opposed to a four year cycle. To accomplish this, the city created a Housing Opportunity Overlay Zone that would allow residents to develop housing on their sites consistent with the existing General Plan designation without the need to apply for a zone change. He added that because it was an overlay zone, the properties underlying zoning would stay in place so property owners were still able to keep or expand existing businesses or uses should they not be interested in developing residential uses in the future. Mr. Borrego noted staff had been working on the overlay zone for several months and was also working on a supplement to the General Plan EIR that would allow the city to take advantage of recent state legislation that provided for CEQA streamlining for infill projects, another desirable incentive for developers. He noted the first public hearing on the Housing Element was scheduled for the Planning Commission on September 9 th with the rezoning projected to be considered by Council in late September or early October, most likely as a consent item. Mr. Barquist remarked the ad hoc recommendations would be received by council as part of a workshop, focusing on the policy program. Thereafter, it would be submitted to the State Housing Community Development for review for the statutory 60 day period, anticipating the public hearings and adoption of the Housing Element would be considered this December or January. Mayor Pro Tern Eastman inquired if the total public participation numbers had been tallied with Mr. Borrego indicating about 300 active participants were reached, a significant increase over City Council Minutes of July 23, 2013 Page 4 of 15 the last Housing Element update process. Council Member Kring wondered if the south district neighborhoods were part of the outreach efforts with Mr. Borrego responding the south district had been actively involved and at least several workshops were held in district neighborhood meetings. She then requested clarification on the makeup of households and their formation with Ms. Vander Dussen remarking for planning purposes, a 2.3 persons per household was used for data purposes but statistics now showed that the number of persons in a household had increased, while the formation of new households had become stagnant. She indicated that could be reflective of adults returning home to parents after college as the economy made it difficult for them to be employed and on their own. Council Member Murray asked for details on the secondary funding resources referred to in the presentation with Mr. Barquist responding it referred to grant opportunities from the federal government via the state as many of those programs applied for in the past required a certified Housing Element to be eligible for those funding resources. She asked for definition of the mechanisms available for the private market to achieve results with Mr. Barquist responding the rezoning program was an example of providing a regulatory framework which would entice developers in the community. Council Member Murray remarked the state was requiring that the city allow for greater density pointing out that overcrowding was a critiquing factor of the Housing Element and asked how the state recommended compliance with the Housing Element in terms of density. Mr. Barquist responded that overcrowding was one of the evaluations of the existing housing, not necessarily a critique, and was caused by economic conditions forcing people to double up or was reflective of not enough two or three bedroom units available. Council Member Murray questioned how the state recommended addressing overcrowding in the Housing Element with Ms. Vander Dussen responding a standard was not required but consideration of units with multiple bedrooms and looking at the affordability of housing in the broader instance would address overcrowding in general. Council Member Brandman inquired what legislative or regulatory actions were on the radar in the future that could impact housing. Mr. Barquist responded with the loss of redevelopment funds and other budgetary constraints, local jurisdictions bore more of the burden meeting housing needs. Mayor Tait referencing CEQA reform asked for clarification on recent legislation. Mr. Borrego remarked a process for community level environmental review typically in the form of an EIR was available to clear infill development, in general, throughout the community. A broad level environmental document that looked at impacts citywide could be used for infill development and since the General Plan EIR had been adopted in 2004 and looked at the build -out of the city, there had been subsequent state legislation passed such as analyzing greenhouse gas emissions which must now be included in the document and staff was essentially updating the General Plan EIR to include that information which could in turn be used to create future development. ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 3:46 P.M., Council recessed to closed session for consideration of the following items with Mayor Tait reporting he would declare a potential conflict of interest and abstain from voting on the Angels Baseball, Item No. 4. CLOSED SESSION ITEMS: City Council Minutes of July 23, 2013 Page 5 of 15 CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Moreno et al. v. City of Anaheim, Orange County Superior Court Case No. 2012- 00579998 2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of the California Government Code Section 54956.9: One potential case 3. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Wilson v. City of Anaheim, Orange County Superior Court Case No. 2012- 00614516 4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Subdivision 54956.8 of the California Government Code) Property: 2000 East Gene Autry Way, Anaheim, CA (Angels Stadium of Anaheim) Agency Negotiator: Tom Morton Negotiating Parties: Angels Baseball, LP, City of Anaheim Under Negotiation: Price and Terms of Payment Regarding Lease At 5:09 P.M., council session was reconvened. Invocation: Pastor Jerry Dirmann, Anaheim Foursquare Church, The Rock Flap Salute: Council Member Lucille Kring Presentations: Recognizing Danielle Lindquist and Adrian Yruretagoyena for their heroic lifesaving efforts Fire Chief Randy Bruegman introduced Danielle Lindquist, a veteran and her father Adrian Yruretagoyena, retired firefighter, recognizing their heroic efforts in responding to a nearby explosion, extinguishing the fire and alerting neighbors and residents, insuring there was no loss of lives or property. He thanked them for their bravery and quick, decisive actions. Acceptance of Other Recognitions (To be presented at a later date): Proclaiming August 12, 2013, as International Youth Day Mayor Tait highlighted Project SAY, a program to engage junior high and high school students to become actively involved in the community, thanking them for the time and energy devoted to the community. Recognizing the 2013 Anaheim International Dance Festival On August 9 — 11 Anaheim Ballet would showcase award - winning students at the International Dance Festival at The National Grove of Anaheim as well as offering a free performance at Pearson Park. Larry Rosenberg, executive director, played a short video highlighting last year's performance and thanked the city for its support of the arts. City Council Minutes of July 23, 2013 Page 6 of 15 A recognition was added to the agenda recognizing Andrea Manes on being honored by the Anaheim Family YMCA ADDITIONS/DELETIONS TO THE AGENDA: Staff requested public hearing Item No. 27 be continued to August 13, 2013, and with no objections raised, Item No. 27 was continued to August 13, 2013. PUBLIC COMMENTS (all agenda items): Cecil Jordan Corcoran, Outreach Homeless Ministries, updated council on his biblical activities. Jaime Roberto (James Robert Reade) addressed gang influences and prevailing attitudes in the community. John Dunton, resident, expressed his appreciation that recent protesters conducted their march with no violence or property damage involved and recommended acting Police Chief Raul Quezada be considered for the position of Chief of Police. Theresa Smith, resident, discussed her treatment by Anaheim police following the death of her son in 2009 and slanderous statements made by James Robert Reade. William Fitzgerald opposed a number of city capital projects, specifically objecting to any secondary benefits to Disney as a result of those projects and objected as well to funding for the EID Festival as identified in Item No. 12, citing the need for separation of church and state. Ron Bengochea, resident, spoke in support of the appointment of Marcie Edwards as City Manager. Referring to Item No. 24, he recommended the charter review committee provide for district maps and boundaries prior to the proposed June ballot for residents to fully understand the impacts. Jim Keyes remarked several persons had been injured and killed by running across Beach Boulevard between Ball Road and Orange Avenue, seeking the city's assistance with a street light or crosswalk or other barrier to keep people safe. Additionally, he remarked the conditions at the Covered Wagon Hotel were deplorable, asking that these health issues be addressed as well. Mayor Tait requested the City Manager investigate those issues raised. German Santos, resident, addressed his comments toward racial discrimination tactics by local law enforcement. Genevieve Huizar addressed the recent protest on July 21S in support of her son, Manuel Angel Diaz, remarking protestors numbered 600 and while the police were out in full force, the march remained peaceful as advertised. Joshua Hunter, resident, remarked he provided free fitness training in the park for 15 -20 people every week and was told he could no longer continue this activity, asking for council's help to keep this effort going. Mayor Tait requested the City Manager look into that issue and report back to council. Joanne Sosa, ESCRI, addressed a recent roundtable discussion with Chief Quezada and others seeking to build a relationship between the Police Department and the community, facilitated by former councilwoman Lord Galloway. Treva Wishart remarked that a bond had been listed on her property tax bill since 1986, over 33 years, remarking that it appeared the city extended the bond timeline without a vote of the people. Mayor Tait asked staff to look into that issue and apprise council of the results. City Council Minutes of July 23, 2013 Page 7 of 15 Donna Acevedo, Guinida resident, highlighted two vacant, weedy lots in her neighborhood, remarking on the need for parks and community centers for her community and the lack of concern by this council for local neighborhood needs. Jeff Letourneau, Democratic Party of Orange County, spoke to Item 25, asking that the item be pulled from the consent calendar as it merited further discussion. Approved by the California voters, he urged marijuana dispensaries be regulated rather than shut down. Additionally, he supported eight separate voting districts for the city of Anaheim and single member district elections. Marian Dalati and Layla Dalati spoke about the EID Festival, remarking it was a religious holiday culminating in a celebration after a month long fasting to understand the hardships of the poor. They encouraged the community to attend the free event in downtown Anaheim on August 17 — 18 with live entertainment and other fun events for the community. Mohammed Dalati remarked as a Muslin American, the EID Festival was part of the Muslim religion, which included fasting for one month in recognition of the poor and to be grateful for what he had. Abraham Dalati stated his father began this event as a method to bring the communities together in one celebration and encouraged all to attend. Rashad AI- Dabbaugh, resident, remarked the Arab community had contributed much to Anaheim's diversity, culture and economy and thanked the committee and their efforts to bring the traditions and history of Muslims to Anaheim. He encouraged council's support of the festival, an important celebration for Muslim Americans. Rania Shaita, remarked the EID Festival was a time to be proud Muslims sharing ethnic food, music and educational exhibits to explaining why fasting was an important part of this celebration, an event uniting the community as a whole. Rhonda Ammouri, addressing the EID Festival, remarked it was a religious and cultural holiday and offered the opportunity to educate the community on the Muslim faith and to stop some of the negative stereotypes. She added her request that city council support this event. Vern Nelson spoke on behalf of Donna Acevedo, remarking at large district elections were expensive while single member districts provided an avenue for candidates to reach voters who resided in their community by walking the district and knocking on doors. Greg Diamond remarked the option selected by council for residency districts via an at large system would not pass peer review and would cause the city to lose its case against the ACLU litigation. He believed the reason it was placed on the ballot was to confuse the issue in case a referendum was placed on the ballot for a single member district electoral system. CONSENT CALENDAR: Council Member Kring removed Item No. 12 from the consent calendar for further discussion. Mayor Tait pulled Item No. 24 and declared a potential conflict of interest on Item No. 13 as his firm had worked with Lionakis in the past and for Item No. 26 as his firm had a banking relationship with Wells Fargo Bank. He indicated he would also abstain on Item No. 12 as he had been asked to be honorary chair of the EID event. Council Member Kring then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the 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 Eastman. Roll Call Vote: Ayes — 5: (Chairman Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. City Council Minutes of July 23, 2013 Page 8 of 15 1. Receive and file minutes of the Cultural and Heritage Commission meeting of May 16, B105 2013, Sister City Commission meeting of May 20, 2013, Parks and Recreation Commission meeting of May 22, 2013, Public Utilities Board meeting of May 22, 2013 and Community Services Board meeting of May 23, 2013. D117 2. Approve the Investment Portfolio Report for June 2013. D175 3. Adopt a seven -year Transportation Capital Improvement Program to comply with Renewed Measure M funding requirements. 4. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a purchase order to Across the Street Productions, in the amount of D180 $40,334.50, for an incident management training and certification program for the Anaheim Fire Department. 5. Accept the lowest complete bid of Bound Tree Medical LLC, in an amount not to exceed D180 $283,911.75, for the purchase of medical supplies required by the Fire Department, for a one year period with four one -year optional renewals, and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #7956. 6. Accept the proposal of Keystone Public Safety, Inc., in the amount of $287,548, for a new mobile data software system for the Anaheim Fire Department and Metro Cities Fire D180 Authority and authorize the Purchasing Agent to execute any and all documents necessary for the purchase, implementation and maintenance of the system, in accordance with Request for Proposal #7909. AGR- 3677.A 7 Accept the proposals and approve agreements with Joseph C. Truxaw & Associates, AGR- 3676.A Inc., The Culver Group, Inc., D. Woolley & Associates, Inc., Johnson -Frank and AGR -7723 Associates, Inc., KDM Meridian, and V.A. Consultants, Inc., to provide on -call land and AGR- 3675.A engineering surveying services in support of the Public Works Department, Construction AGR -7724 Services, Survey Section for a two year period with three two -year optional renewals. AGR -7725 8. Award the contract to the lowest responsible bidder, Stephen Doreck Equipment Rentals, Inc., in the amount of $647,750, for the Olive Street 16 -inch Water Main AGR -7726 Replacement Project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 9. Award the construction contract to the lowest responsible bidder, Shawnan, in the amount of $1,114,688.29, for the Residential Street Improvement Project, Group 4, and authorize the Finance Director to execute the Escrow Agreement pertaining to contract AGR -7727 retentions. 10. Approve an employment agreement with Marcie Edwards effective July 24, 2013 for her AGR -7728 services as City Manager. 11. Approve and authorize the City Manager to execute the Lease Agreement with ALSCO, Inc., in the lease payment amount of $825 per month, for city -owned property located at AGR -7729 131 West Katella Avenue and authorize the Public Utilities General Manager or designee to take the necessary actions to implement and administer the agreement. City Council Minutes of July 23, 2013 Page 9 of 15 13. Approve and authorize the City Manager to execute an agreement with Lionakis, in an amount not to exceed $888,950, for the planning, schematic design, preparation of AGR -7731 construction documents, construction observation, and post- construction services for the Ponderosa Park and Family Resource Center project at 2100 South Haster Street and authorize the Community Services Director to increase the contract amount by up to 10% if such increase is necessary. 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. 14. Approve an agreement with SeniorSery to utilize Brookhurst Community Center, on a shared basis, to provide a comprehensive meal program that includes recreational AGR- 4659.D activities and social services to senior citizens. D114 15. Approve minutes of the Council meeting of June 11, 2013. 16. RESOLUTION NO. 2013 -111 A RESOLUTION OF THE CITY COUNCIL OF P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain interests in real properties (City Deed Nos. 11523, 11552, 11582, 11583, 11584, 11588, 11589, 11590 and 11591). 17. RESOLUTION NO. 2013 -112 A RESOLUTION OF THE CITY COUNCIL OF P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 11585, 11586, 11592 and 11593). 18. RESOLUTION NO. 2013 -113 A RESOLUTION OF THE CITY COUNCIL OF Pilo THE CITY OF ANAHEIM vacating a portion of a public service easement located at 800 Western Avenue (ABA2012- 00252) pursuant to California Streets and Highway Code Section 8330, et seq. - Summary Vacation. 19. RESOLUTION NO. 2013 -114 A RESOLUTION OF THE CITY COUNCIL OF D182 THE CITY OF ANAHEIM modifying the electric rates, rules and regulations by modifying Rule Nos. 6 and 7 for the sale and distribution of electricity as adopted by Resolution No. 71 R -478 and most recently amended by Resolution No. 2013 -002. RESOLUTION NO. 2013 -115 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM modifying the water rates, rules and regulations by modifying Rule Nos. 6 and 7 for the sale and distribution of water as adopted by Resolution No. 72R -600 and most recently amended by Resolution No. 2013 -003. By these resolutions, certify that the modifications to Rule Nos. 6 and 7 contained in the electric and water rates, rules and regulations are exempt under the California Environmental Quality Act, Section 15061(b)(3) of Title 14 of the California Administrative Code. 20. RESOLUTION NO. 2013 -116 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM modifying the rates, rules and regulations for the sale and D182 distribution of electricity as adopted by Resolution No. 71 -478 and most recently amended by Resolution No. 2013 -002. City Council Minutes of July 23, 2013 Page 10 of 15 By this resolution, certify that additions and modifications to Rule Nos. 1 and 12 contained in the electric rates, rules and regulations are exempt under the California Environmental Quality Act, Section 21080(b)(8) of the Public Resources Code and Title 14 of the California Administrative Code, Sections 15273(a) and Section 15061(b)(3). 21. ORDINANCE NO. 6283 (INTRODUCTION) AN ORDINANCE OF THE CITY OF 0280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating zoning (Reclassification No. 2013 - 00253; DEV2012- 00135) [3083 -3087 West Ball Road; Rezone to RM -1 (Multiple - Family Residential)]. 22. ORDINANCE NO. 6284 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Subsection .020 of Section 18.24.030 of Chapter 18.24 of c28o Title 18 of the Anaheim Municipal Code (Zoning Code Amendment No. 2013 - 00108; DEV2013- 00031) (Allow alcoholic beverage sales for off - premises consumption in markets or grocery stores with a minimum floor area of 10,000 square feet in the South Anaheim Boulevard Overlay zone). M142 23. ORDINANCE NO. 6279 (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 (Douglass Road) (Introduced at Council meeting of July 2, 2013, Item No. 10). 25. ORDINANCE NO. 6281 (ADOPTION) AN URGENCY ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 4.21 to Title 4 of the Anaheim Municipal Code prohibiting the establishment or operation of mobile medical marijuana dispensaries. (A copy of the M142 full text of the proposed Ordinance is available for review in the Office of the City Clerk). END OF CONSENT CALENDAR: AGR -7730 12. Approve and authorize the City Manager to execute an agreement with the Eid Festival Committee for the Eid Festival on August 17 -18, 2013. Council Member Kring announced that many speakers had addressed the benefits of the EID Festival and she enthusiastically supported it as well and moved to approve Item No. 12, seconded by Council Member Murray. Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council Members Brandman, Kring and Murray.) Noes — 0. Abstention — 1: Mayor Tait. Motion Carried. 24. ORDINANCE NO. 6280 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Title 1 of the Anaheim Municipal Code to add Chapter 1.25 M142 (Residency Districts for City Council Members), Sections 1.25.010 through 1.25.050, inclusive, to establish residency districts and require City Council Members be from residency districts and elected at large (Introduced at Council meeting of July 2, 2013, Item No. 13). At the request of Council Member Murray, City Attorney Michael Houston reported this item was a second reading of an ordinance requiring council members be from residency districts and elected at large, introduced at the last meeting to establish residency districts for council members. To clarify, he reported this matter did not require voter approval and did not relate to resolutions council acted on and considered at the last council meeting relating to both the City Council Minutes of July 23, 2013 Page 11 of 15 increase in size of the city council as well as to whether or not a residency requirement would be added to the City Charter. The discussion relating to the vote requirements necessary for charter amendments to be adopted which were actually part of the California Constitution and which was a matter of law and required the highest vote count to prevail, was not applicable to the matter before council this evening. He further explained residency districts, or from districts, meant that candidates for members of the city council and city council members must be residents of those districts from which they were elected by the voters of the city at large. If this ordinance was adopted, only one council member could be elected from each district. The ordinance was also drafted to state that the number of districts were equal to the number of council members, and was phrased that way intentionally in order to account for the possibility that the present number of city council members, which was four, may be increased at some point at a future date based on adoption of a charter amendment. He noted the proposed ordinance would be used for elections commencing in November of 2014 and required council by resolution or ordinance to establish districts no later than March 1 s ', 2014. Should council approve this second reading, Mr. Houston recommended that staff be instructed, as part of the mapping process, to go through the process of creating maps for both four and six member districts so that should the voters choose to adopt charter amendments, the city would be in a position to have those considered as well. He added establishment of districts or changes in boundaries would not abolish or terminate the terms of any existing council members as specified in the ordinance. Mayor Tait remarked for purposes of clarification, currently Anaheim had an at large electoral system meaning that all council members could reside in any area of Anaheim and would be elected by all eligible voters within the city with Mr. Houston concurring. Mayor Tait responded that the ordinance being considered for second reading was still an at large system with Mr. Houston responding, as defined by state law; it fit the definition of an at large electoral system even though it had a residency component. Mayor Tait added for that reason, council was allowed to adopt this ordinance rather than require a vote of the people for this change to a residency component, with Mr. Houston concurring, adding that this residency ordinance conformed to the at large election requirement in the city charter. Mayor Tait remarked he would not be voting for this ordinance because it was not a single member districting system and the recommendation of the advisory commission was to seek the will of the voters as to whether they wanted a single member district system or not. He added this was not representative democracy and he believed residents should have the right to determine how they wanted to be governed. Council Member Murray did not agree, stating the option put in place by this council was a legal, viable and representative system used across the state and in Orange County, pointing out, a large majority of cities remained at large and offered representative democracy to their residents, governing in the best interests of their cities as a whole rather than a fragmented district -based system in which they were only accountable to a select group of residents. She stated Santa Ana, Newport Beach and Orange Unified School District utilized this residency - based system with at large voting successfully for some time and Anaheim's residents were familiar with it. She remarked some larger cities in California had gone to a district based system while others used the at large system with the major difference being that Anaheim's council members represented a larger per capita number of residents. This, she explained, was the reason why the city council concurred in moving to a larger number of council member seats as recommended by the CAC. She highlighted those California cities using a single member district system, remarking that the majority were facing extraordinary structural deficits now; i.e. City Council Minutes of July 23, 2013 Page 12 of 15 Los Angeles, San Diego, San Jose, Fresno, Long Beach, Oakland, San Bernardino and Modesto. She did not believe a case could be made that services were improved with that type of an elections model, given the circumstances surrounding the fiscal solvency of some of these cities. Specific to Anaheim, she pointed out there were successes in electing Hispanic and other ethnic minorities to city council and minorities may have represented a majority in some of those elections. She added that Mayor Tait was the first mayor from Anaheim Hills to serve in 20 years, so the claim that Anaheim Hills was controlling council was not accurate and today there was a majority of council members who lived west of State College Boulevard. She added if the size of council had been increased for the last election, John Leos and Jennifer Rivera would have been successfully elected, even as Jordan Brandman was by far the preferred candidate for the downtown core Hispanic precinct. To the allegations made that city council was not being responsive to the CAC, she remarked, that statement was misleading. The CAC had been unable to reach a majority recommendation on the method of election, however they unanimously recommended council put the issue of district or at large elections to a vote of the cities and council concurred, and a legal, appropriate and successful system was approved as well as an increase to the size of the city council seats also recommended by the CAC. Additionally, the CAC recommended increased and on -going voter participation; the city council concurred, and was working with staff to do so. She stated the council's proposed ordinance would ensure residency based districts were considered for Anaheim and this ordinance would ensure immediate action. Council Member Murray then moved to adopt ORDINANCE NO. 6280, AN ORDINANCE OF THE CITY OF ANAHEIM amending Title 1 of the Anaheim Municipal Code to add Chapter 1.25 (Residency Districts for City Council Members), Sections 1.25.010 through 1.25.050, inclusive, to establish residency districts and require City Council Members be from residency districts and elected at large and to request the city attorney return with a process to draw both four and six districts for consideration by the electorate for the items before them on the June 2014 ballot, seconded by Council Member Kring for discussion purposes. Council Member Kring pointed out many residents had provided input to council that they were not interested in single member districts, including Assemblyman Doug Wagner, adding that the city had been well run with professional staff and part -time council members for over 150 years and this year's budget offered much to improve the quality of life in the community. Mayor Pro Tern Eastman commented that the number one question asked by citizens relative to districting was what the boundaries would look like and for that reason, the city attorney was asked to work on creating district maps to answer those questions. Council Member Brandman remarked he was philosophically in favor of single member districts and for that reason, would be voting against this measure. Mayor Tait, quoting statistics, remarked since he had been involved in Anaheim politics, there had been 11 council members from Anaheim Hills and Frank Feldhaus was the only elected candidate from West Anaheim, a good argument, in his opinion for single member districts. He added that Anaheim was the largest California city using an at large system and based on that size population, it made sense to go to single member districts. He again indicated he would not vote to approve the ordinance. Discussion continued on whether the proposed ordinance reflected an at large system or district -based system. Roll Call Vote: Ayes — 3: (Mayor Pro Tern Eastman and Council Members Kring and Murray.) Noes — 2: (Mayor Tait and Council Member Brandman.) Motion carried and Ordinance No. 6280 was adopted. City Council Minutes of July 23, 2013 Page 13 of 15 26. Authorize the Public Utilities Department to utilize proceeds from the Revolving Credit Agreement with Wells Fargo Bank, National Association for periodic draws in fiscal years D182 2014, 2015, and 2016 up to a maximum cumulative not -to- exceed amount of $14,000,000 for the purpose of funding existing or additional water utility capital projects and related expenses. Mayor Tait left the dais at 7:08 P.M., remarking his firm had a banking relationship with Wells Fargo and he would therefore abstain on this item. Steve Sciortino, Acting Public Utilities General Manager, reported that a revolving line of credit had been previously authorized by council with the intent of providing an additional source of funding for specific needs, including the retirement of certain bonds (completed this month) to provide a source of funding for collateral requirements related to the cap and trade option and to provide funding for various capital projects. This specific item, he stated, was a request to use the line of credit to take advantage of lower short term interest rates to finance a portion of the water utility's capital program. The recommendation was to draw up to $14 million over the next two years from the line of credit which at current interest rates would save the water utility over $400,000 in interest expense annually when compared to long -term fixed rate bonds. Mr. Sciortino indicated staff was asking to draw upon the line of credit without having to obtain authorization for each individual transaction up to the planned amount of $14 million, because each individual capital project and expenditures would still be subject to the normal council approval process and must be within the Utility Department's approved budget. He added appropriate financial controls would be enacted as all expenses for capital projects required proper authorization prior to incurring the expense. He further explained the Department planned to pay back the line of funds used for these water capital expenses by a combination of water operations cash and ultimately the sale of interest bonds. Initially, he added, $2.6 million of bonds included in this year's budget were earmarked for debt service for a new bond issue that would not be delayed and could be used to pay back a portion of the line of credit, bringing up the line's unused balance and making it available for future projects. Mr. Sciortino added that the line of credit already authorized the retirement of the 2012B Electric Revenue Bonds and was being used to supply funds for collateral requirements associated with the cap and trade program. A chart was then provided which indicated how the line of credit would be managed over the life of the agreement along with the planned series of draws from the line and the payback resulting in a prudent use of funds by maintaining an available balance of possible other needs and a minimum balance outstanding at the end of the agreement. Council Member Kring moved to approve Item No. 26, seconded by Council Member Murray. Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council Members: Brandman, Kring and Murray.) Noes — 0. Abstention — 1: Mayor Tait. Motion Carried. Mayor Tait returned to the dais at 7:12 P.M. PUBLIC HEARING: 27. This is a public hearing to consider a resolution adopting a new schedule of fees, charges and rates for building, construction, planning technology system, and NPDES D182 permits, services and activities. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF -- THE CITY OF ANAHEIM adopting a new schedule of fees, charges and rates for City Council Minutes of July 23, 2013 Page 14 of 15 building, construction, planning technology system, and National Pollutant Discharge Elimination System (NPDES) permits, services and activities. At request of staff and with the consent of council, Item No. 27 was continued to August 13, 2013. At 7:12 P.M., Council recessed for the remainder of closed session. At 8:50 P.M., the Council reconvened the meeting REPORT ON CLOSED SESSION ACTIONS: City Attorney Michael Houston reported City Council authorized the City Attorney to initiate litigation in one matter (Vote: 5 -0). The matter, defendants, and other particulars would be disclosed once the matter formally commenced. COUNCIL COMMUNICATIONS: Council Member Brandman spoke about the Firecracker 5K Run at Canyon High School and 4th of July Parade and thanked all involved in organizing the successful event. He further reported on the Charter Review Committee meeting held on July 18, announcing the next meeting would be July 31S at 6:00 P.M. with Spanish translation services provided. Additionally, he noted all of the Charter Review Committee meetings would be videotaped with agenda and viewing accessible from the charter web page on the city website. He also reported the City Clerk's Office had launched a City Clerk Bookshelf which offered links to all City rules, policies, regulations and manuals, and was now available to the public and announced the Paul Revere Park project at the Guinida Lane neighborhood would be awarded $257,500 by the California Land and Water grant, with construction to begin in December. Council Member Murray commented on the Paul Revere park project and its investment in the Guinida Lane community and council's unanimous commitment to neighborhoods. She thanked Council Member Kring for donating her time, talent and leadership for many years on behalf of the annual 4 of July festivities. Council Member Kring spoke of the great success of the 4 th of July celebration thanking the many volunteers, the Canyon Hills Community Council and the Chamber of Commerce for their work on this event. She offered her congratulations to Marcie Edwards on her appointment as City Manager and thanked the community and the police for the peaceful demonstration held on Sunday. In addition, as a Vector Control trustee representing Anaheim, she provided information on the West Nile Virus, an illness transmitted by mosquitos, offering tips on how to address this recurring problem. Mayor Pro Tern Eastman, remarked there were several vacant parcels of land in the Guinida neighborhood that could be improved and add to the quality of life of those residents, asking that city staff take a look at options for those sites. She noted the Wig Wag central community garden was planning another workday and any interested persons could visit the city's website at Anaheim.net/garden and find out more detailed information. In addition, she had the honor of accepting the Roses Award from the Orange County Taxpayers on behalf of the city related to pension reform efforts and would pass that award onto staff. City Council Minutes of July 23, 2013 Page 15 of 15 Mayor Tait commended everyone involved in putting on the 4 th of July parade and festivities and reported on his meeting with Col. Chuck Taylor, 13 MEU, at Camp Pendleton where he observed an amphibious assault exercise and wished them well as they begin their next deployment. He also shared he would be attending the Orange County Youth Summit at Cal State Fullerton in a discussion on how to succeed in college and the workforce and would be working on a Mayor's P21 Initiative (Partnership for 21S Century Skills). Mayor Tait also offered his congratulations to Marcie Edwards on her appointment as City Manager. Adjournment: With no other business to conduct, Mayor Tait adjourned the July 23, 2013 council meeting at 9:04 P.M. Re tfully submitted, Linda N. Andal, CIVIC City Clerk