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2013/08/13ANAHEIM CITY COUNCIL REGULAR MEETING OF AUGUST 13, 2013 The regular meeting of August 13, 2013 was called to order at 3:06 P.M. in the chambers of Anaheim City Hall. The meeting notice, agenda and related materials were duly posted on August 9, 2013. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Gail Eastman, Lucille Kring and Kris Murray. STAFF PRESENT: City Manager Marcie Edwards, City Attorney Michael Houston and City Clerk Linda Andal. WORKSHOP — HOMELESS UPDATE Mayor Tait invited Orange County Supervisor Shawn Nelson to the podium who spoke of the county's work on the homeless issue. Supervisor Nelson underscored that over $70 million was spent directly on homeless related issues every year. Emphasizing the need for regional solutions to reduce the numbers of homeless, he encouraged partnering with the city for a coordination of efforts and resources and to address the challenge of finding an appropriate site for homeless services. He appreciated Mayor Pro Tem Eastman and Council Member Murray's involvement in this regional subject. Mayor Tait and Council Member Murray expressed their appreciation to Supervisor Nelson for his commitment and leadership in this area. Community Services Director Terry Lowe introduced the workshop participants: Interim Police Chief Raul Quezada, Karen Roper, Director of Orange County Community Services and Deputy City Attorney Mark Facer. He stated over the last several years, the numbers of homeless rapidly increased nationwide, with Anaheim experiencing similar intensification; and today, the city's homeless population was greater in numbers and could be seen in residential neighborhoods, public parks and other public facilities engaging in inappropriate and often unlawful behavior. The recent increases in homelessness, he reported, was attributed to the multi -year decline in the economy, high unemployment rates, post- traumatic stress disorder and other mental issues, early release of thousands from the prison system, lack of mandatory treatment and /or institutionalization of the mentally ill and chronic substance abuse. Specific to La Palma Park, he noted, residential neighbors and local business owners were frustrated at the continuing unacceptable behavior that occurred at the park, which in part was supported by well- meaning individuals and groups that provided food and other material support to the homeless. He added due to the consistent enforcement of park curfews at 10:30 p.m., nightly, by park rangers and the police department, the homeless leave La Palma Park each night and camp in surrounding areas including sidewalks, alleys and public properties. He remarked the Community Services Park Maintenance Division worked closely with the Police Department to identify park amenities that could be added, altered or removed to lessen the negative impacts of unsuitable behavior by anyone at La Palma or any other park and despite those efforts, many issues associated with the homeless continued and prevented staff from keeping the park in an acceptable condition and prevented residents from enjoying it as well. He noted capital development staff also looked at a potential redesign of the park to reduce passive space and to increase active space and promoting a higher usage by organized groups. This fiscal year, Mr. Lowe pointed out, park ranger patrols began at 10 a.m. everyday instead of 1 p.m. and ended at midnight rather than at 10:30 p.m. in an effort to better enforce park curfew ordinances and reduce activities related to substance abuse and other issues; and he City Council Minutes of August 13, 2013 Page 2 of 25 emphasized, staff immediately contacted the Police Department regarding any criminal activities. Mr. Lowe explained that after meeting with concerned residents and business owners in the area around La Palma Park, a study of best practices was conducted to determine how other agencies in the region coped with similar issues. That was followed by a meeting with various organizations to develop a strategy to address the impacts of the homeless population on the surrounding community. This effort, he noted, resulted in the La Palma Park pilot project created to address the most important concerns of nearby residents and business owners by providing an off -site location where the homeless could store their personal items and access restroom facilities after closure of the park. The program would include the use of two large storage units to be located at the city -owned vacant lot across the street from La Palma Park, at the northeast corner of La Palma Parkway and Terry Avenue. This area, he stated, would be lighted, fenced (with a mesh covering to obscure the view of the inside of the enclosure), and include a locked gate. The storage units would offer the homeless a secure place to store their personal belongings, would reduce the storage of items at the park and also allow individuals to access needed services and programs during the day or night. (During the last winter shelter season, Mr. Lowe emphasized, many homeless stated they did not use the Fullerton Armory shelter because they were afraid to leave their personal belongings behind). Two portable restrooms would also be installed in the same vacant lot to provide 24 hour access in order to reduce unsanitary practices. Mr. Lowe informed council, the storage units, if approved, would be operated under an agreement with Mercy House and would have set operational hours for individuals to bring in and take out their belongings. He added Mercy House would also distribute duffel bags to the homeless to pack up those items they would be storing and end their use of stolen shopping carts. Outreach workers from Mercy House believed they could build trust through this program for the purpose of encouraging and assisting homeless individuals to move into shelter programs, drug and alcohol rehabilitation facilities and other types of living assistance programs. Mercy House, he stated, would also work in conjunction with the Anaheim Poverty Task Force to move the food distribution currently taking place in La Palma Park to the pilot project area and would coordinate various groups distributing food so there would be sufficient rather than too much food offered, which, he added, was currently the case. Mr. Lowe reported this project was proposed for a period of six months with an option for an additional six months, if successful; and when the seasonal emergency shelter opened at the Fullerton Armory in December, the city would know whether or not this pilot project was successful and it could be continued over the winter months or longer if warranted. He further explained the project would be measured by various factors, adding that on tonight's consent calendar was an agreement with Mercy House to conduct the pilot project at La Palma Park. If approved, he informed council, the equipment would quickly be installed and Mercy House would begin outreach and support services and any individuals not wanting help, would be required to comply with city ordinances and park regulations. Raul Quezada, Interim Police Chief, remarked that transient homeless related calls for service represented a significant draw on resources, two percent of the 191,000 calls for service in 2012, and especially demanding in terms of time spent on each call which often did not provide a long -term resolution of the problem. He stated many times homeless individuals had underlying medical, psychological and other challenges contributing to their homelessness and to work toward a more lasting resolution, the department would now be partnering with the Orange County Health Care Agency on these calls. Many calls, he added, were for unattended City Council Minutes of August 13, 2013 Page 3 of 25 or abandoned property left throughout the city and the Department would bring back a code amendment this fall to offer tools to remove and relocate this property. He added for those locations where this problem was prevalent and habitual, signs would be posted detailing the Code section and the prohibition against the storage of personal properties, including a phone number to call for information on how to retrieve property in the event it was removed and stored. Chief Quezada added the department already had a storage container dedicated for this purpose and staff would insure the timely release of personal properties to their owners on a scheduled basis. He remarked another tool needed in the department's efforts towards a long -term solution was an enforceable code to address the rapidly growing trend of homeless setting up tents and using camping equipment in public parks. Staff was working with the City Attorney's office to draft an ordinance that would not infringe upon the rights of individuals but provided the necessary tools to preserve park space for its intended use and anticipated having it for council's approval in two months. Regarding shopping carts, Chief Quezada indicated officers did enforce a section of the Business and Professions Code although it was necessary to have certain identifying markings on carts to do so. Additionally, retailers also contracted with private companies to collect these carts as well. The goal with this type of enforcement, he pointed out, was to remove unwanted blight and a negative perception and appearance in some of Anaheim's public areas. Lastly, he remarked, there was a pending Memorandum of Understanding with the Orange County Health Care Agency to create a partnership with the Department and Mental Health professionals. Specifically, he stated, a clinician would accompany an officer in the field to improve the provision of services to the chronically mentally ill and to respond to an incident in which psychiatric evaluation and intervention was immediately needed. He indicated this collaboration would result in the prompt placement of these individuals into the appropriate facilities and would reduce the impact of calls on the Department, the City and the community at large. Karen Roper, Orange County Community Services Director, explained the various services offered by the County: Workforce Investment, Housing and Community Development Homeless Prevention, Orange County Housing Authority, Office on Aging, and Orange County Veterans. The county had partnered with the city on their Anaheim Jobs Fair, providing funding and leadership coordination; provided collaborative grants for Anaheim's Work Force Investment Board and offered an annual $16 million of continuous care homeless assistance funding through their Prevention Division. In addition they conducted a regional count of the homeless and administered the contract for the Armory Shelter Program as well as providing staff support on the Commission to End Homelessness. The Orange County Housing Authority also partnered with Anaheim, Santa Ana and Garden Grove to assist about 26,000 people per month in 31 cities. Additionally the Orange County Housing Authority applied for other voucher grants that assisted Anaheim's residents, such as Shelters Plus Care vouchers for special needs homeless and non - elderly disabled vouchers which moved people out of institutionalized care back into the community. The Office on Aging offered regional services such as non - emergency medical transportation, meals in the senior center, as well as home delivered meals, in -home support, caregiver support, health education, and many other regional services that help older adults stay at home instead of being institutionalized. Their Veterans Office provided claims benefits assistance for health care, pension compensation, college tuition fee waivers and the partnership with the Health Care Agency with mental health services funds offering on- site mental health care for veterans, emergency housing assistance and other support services to provide a one - stop -shop for veterans and their families. City Council Minutes of August 13, 2013 Page 4 of 25 Examples of Barriers to Ending Homelessness The Armory Emergency Shelter, she remarked, was not a good model as its 400 beds were only available on a limited schedule and the goal was to provide a year -round shelter for the homeless rather than this current alternative. Faith - based providers and others in the community offered meals and services in parks that caused a negative impact to the surrounding community and although it was an opportunity to serve the poor, she explained, it impacted neighbors. The "Not In My Backyard" viewpoint was also brought up when affordable housing or shelter projects were proposed as there was a misconception about how these projects impacted neighborhoods. A significant barrier, she emphasized, was the elimination of redevelopment and federal budget cuts to HOME and CDBG funding which had a detrimental impact on the ability to build affordable housing and finance the operation of shelters and other types of programs. This barrier, in particular, she added, suggested the need more collaboration between the county, cities and other stakeholders. Ms. Roper reported a ten year plan to end homelessness was developed with the following goals: 1) prevent homelessness in the first place; 2) outreach to those who are homeless or at risk for becoming homeless, 3) improve the effectiveness of the emergency shelter and access system; 4) improve the transitional housing shelter system to lower the threshold so it was easier for those in crisis to avail themselves of services; 5) develop permanent housing options linked to a range of supportive services; 6) ensure people had the right resources to remain housed so they did not cycle back into homelessness; 7) improve data systems to accurately define the need for housing and related services; 8) develop systems and organizational structures to provide oversight and accountability to make sure the plan was working; and 9) advocate for community support, social policy and systemic changes necessary to succeed in the plan implementation. The goals of the Ten Year Plan, she further explained, would begin with prevention, followed by providing year -round emergency shelters and multi - service access centers to ultimately rapidly re -house people off the streets immediately into housing. Permanent housing was part of the solution designed to be responsive to the needs of local communities, and could consist of market rate housing, Section 8 rental assistance with supportive services and affordable housing. The Commission to End Homelessness, she stated, was a high caliber commission, with representatives from the County Board of Supervisors, Orange County City Manager's Association, Orange County Fire Chiefs, Orange County Police Chiefs and Sheriffs Associations, Orange County Business Council, as well as various non - profits and stakeholders, all working together to make strategic improvements in the system. An important objective with this plan was to look at a year -round emergency shelter because it was an access point to getting people off the street, connected with services and into permanent housing and improving the quality of life for the surrounding community. Collaborative partnership opportunities with Anaheim were many, she remarked, and included the formation of the year -round emergency shelter /multi- service center, VASH housing vouchers for homeless veterans, Shelter Plus Care housing vouchers for special needs homeless, Mental Health Services Act housing with wrap around services, expanded efforts for outreach, engagement, and connection to mental health care. She stated funding levels were lower for some of these opportunities, but they were still available. Council Member Murray referred to Interim Chief Quezada's comment regarding state realignment mandates requesting a report to council on the current status, the numbers of parolees released in Anaheim, and how that was managed in a way to insure residents were City Council Minutes of August 13, 2013 Page 5 of 25 protected and whether there were resources from the state to help fund the cost of management. Ms. Murray inquired whether vouchers were available to transition families living in motels that began on a temporary basis with Ms. Roper responding there may be opportunities under a unique program entitled Tenant Based Rental Assistance in partnership with the County. Council Member Kring wondered how accurate the homeless count was with Ms. Roper indicating Federal guidelines must be used and the numbers derived were not perfect, however an extrapolation method was used to represent the whole. Statistically, that count was approved by HUD, and while not exact, she stated it was reliable. Council Member Brandman remarked he looked forward to seeing recommendations for the full expansion of La Palma Park in the future. Mayor Tait added that the city of Albuquerque had some success using a multi - pronged approach, with Mr. Lowe responding staff was looking at a variety of model programs, including that of Albuquerque as they moved forward. Supervisor Nelson offered insight into the Fullerton Armory shelter and the challenges of establishing a year -round homeless shelter and appreciated the city's willingness to consider such a site. ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 4:05 P.M., the Anaheim City Council recessed to closed session for consideration of the following items: CLOSED SESSION ITEMS: 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 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 3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Section 54957 (b) (1) of the California Government Code) Title: City Clerk and City Treasurer At 5:25 P.M., council session was reconvened. Invocation: Father Joseph Boules, Saint Verena Coptic Orthodox Church Flag Salute: Mayor Pro Tem Gail Eastman Presentations: Recognizing My Safe Harbor on receiving the WORLD Magazine 2013 Western Region Hope Award City Council Minutes of August 13, 2013 Page 6 of 25 Becky Ahlberg, Executive Director, stated My Safe Harbor empowered low- income single mothers through education, inspiration, and personal development in an effort to affect safe and stable families. She reported the organization received no government funding, operated with a yearly budget under $100,000 with one full -time employee and over 100 volunteers. She was proud they had received the Hope Award for effective compassion and was one of five entities in the running for the national award. Guadalupe Flores and Maria Lopez shared their stories of how My Safe Harbor made a difference in their lives. Presentation of City of Anaheim Historical Photo Steve Faessel remarked on behalf of Anaheim's Centennial celebration and funding by the Mother Colony House, he was presenting to the city two side -by -side panoramic photographs, one taken in 1913 and the other in 2013. Both photos were taken from the same height and perspective; the first by Judge James Solomon Howard atop a 100 foot water tower and the second by Donna and Terry Reingold via Anaheim Fire apparatus. He explained viewers could now see the changes that occurred after 100 years. Mayor Tait expressed appreciation for Mr. Faessel's many contributions to the community. Mayor Tait then requested this meeting be adjourned in memory of Mitchell Cook, a 14 year old Canyon High School football player who collapsed and died during football practice. ADDITIONS /DELETIONS TO THE AGENDA: None PUBLIC COMMENTS (all agenda items): Cecil Jordan Corcoran, Outreach Homeless Ministries, discussed the bible, its modern uses and the status of his studies. Jaime Roberto (James Robert Reade) remarked he continued to be an outspoken proponent to hold parents accountable for street gang terrorist activities. William Fitzgerald, Anaheim Home, objected to specific capital projects stating they were solely for the benefit of Disneyland and suggested Disney use their revenues to fortify their property against possible terrorist attack in light of the recent headlines related to potential terrorist strikes in the U.S. Jim Hughes spoke to traffic safety issues for pedestrians regularly crossing Beach Boulevard between Orange and Ball Road. He stated the comments from the Planning Commission were not helpful and again asked for the city's assistance. Mayor Tait requested staff research the issue and report back to council, recognizing that it may be a complicated issue between agencies. Eric Garcia, Travelodge and restaurant on Beach Boulevard, remarked two deaths occurred within a four month period to pedestrians in that area, urging the city to seek a solution. Mayor Tait thanked Mr. Garcia and Mr. Hughes for bringing this to the city's attention, remarking the Public Works Director would investigate their concerns. Mike Jacobs, resident, spoke in support of Item 8, asking for the city's support for some type of traffic calming device for his neighborhood. He indicated a recent traffic study conducted by Public Works Department revealed that around 1,540 cars traveled the two neighborhood streets and at least 230 cars exceeded the speed limit and despite efforts, residents had been unable to slow down those drivers. City Council Minutes of August 13, 2013 Page 7 of 25 Michael Rothans, speaking in support of Item No. 8, addressed the traffic increase his neighborhood experienced over the years and the need for traffic calming measures to mitigate excess speeds. He added the small percentage of residents speaking out against the speed lumps cited concern over property values, a viewpoint he believed was unfounded as Santa Ana Canyon and Fairmont neighborhoods did not see a decrease in value when their speed lumps were put in place. Correna Chavers spoke of the death of her brother, Manuel Angel Diaz and a recent article in Orange County Weekly related to police brutality. Margeaux Ulbrich, speaking in support of Item No. 8, explained traffic was a real issue in her neighborhood and residents had been working for some time to get the traffic to slow down. She welcomed the traffic calming measures stating residents would be safer. Megan Hartman representing Big Brothers and Sisters of Orange County thanked the Community Services Board for recommending funding for this nonprofit organization serving 2,000 at risk youths by providing a mentor to help put them on the right path. Julie Brunette spoke in support of the Anaheim police. Dr. Cynthia Smith, Creative Identity, thanked the Community Services Board for recommending funding. She explained Creative Identify was a prevocational empowerment component for those with Downs Syndrome, cerebral palsy, and autism with the goal of making these individuals productive members of society Michael Baker. Boys and Girls Club, thanked the Community Services Board for their recommendation in support of the Boys and Girls Club and all the non - profits serving the community. He added with the help of Angels Baseball foundation and Arte Moreno, the Boys and Girls Club were able to provide school clothing for 1,000 kids. Additionally, it was one year since the Club reached out to Anna Drive and since that time, 649 kids received scholarships into the program and his goal was to reach out to four more at risk neighborhoods. Judy Dickinson stated that ACACIA Adult Day Services was proud to be a community partner with Anaheim, thanking the city for its past support and the Community Services Board for recommending funding for the coming year. Linda Ross, Anaheim Poverty Task Force, remarked they had been advocating on behalf of the homeless population for the last five years and had generated a 15 point plan addressing issues contributing to homelessness. Most recently, she stated, the task force conducted a count of the homeless and found there were over 400 people living in the streets. She commended the La Palma Park pilot program and its humane approach to recognizing the basic needs of the homeless that would support the ultimate goal of reducing homeless numbers. Maria Avena, Coast to Coast Foundation, thanked the city for taking measures to address the homeless. She indicated her organization consisted of 100 volunteers had served 3000 homeless meals and provided clothing and care kits and were committed partners in addressing homelessness. Rosalba Gasca, resident/nurse, expressed concern that large groups regularly play volleyball at Edison Park, and held gambling and betting at each tournament with alcohol being consumed as well. Mayor Tait requested the City Manager look into this issue and ensure the users were in compliance with city laws and park regulations. City Council Minutes of August 13, 2013 Page 8 of 25 Sandra Lewandowski spoke in support of the Anaheim Chamber of Commerce economic development efforts, stating it served as a trusted advocate for small businesses, connecting them with needed resources and bringing Anaheim's advantages to the forefront. Fernando Negrete, Eli Home, expressed disappointment that the Community Services Board elected not to fund ESCRI, a faith -based initiative under the umbrella of the Eli Home, an organization that empowered people of the East Street Corridor. He believed this decision was simply based on politics and not value, as ESCRI served older youths, a group that the Olin study revealed did not have enough programs. Suzanne Mathai, High Hopes Identity Discovery Foundation, remarked High Hopes was not recommended by the Community Services Board for funding and asked that council reconsider. Explaining Hope University, she indicated the program offered a multi- faceted fine arts program for adults with intellectual disabilities serving the individual as a whole. She announced the coming Saturday night gala fund - raiser inviting the community to attend the performance. Lingling Zhu strongly opposed speed lumps on her street, remarking there had not been an increase in the number of homes on her street nor was there speeding on Cottontail Lane. She urged the city to consider other options, remarking her aging parents would be disturbed by the placement of those devices. Peter Agarwal, addressing Item No. 22, stated he had been closely involved with Chamber of Commerce Enterprise Zone administration, remarking that most businesses were happy to hear of the benefits they could receive. Many of those businesses, he stated, were able to make substantial reinvestment in their business and were promised that the Chamber would make sure those business credits were processed. That job, he emphasized, was not completed and there was more work to be done. He urged council support continuation of the Chamber contract. Nahla Kayali, Access California, thanked the Community Services Board for their recommendation for CDBG funding, remarking her nonprofit organization primarily served the immigrants and refugees from the Arab American and Muslim community. In 2012, she stated, over 6,500 clients were served with collaborative help from the city. Larry Slagle spoke in support of Item 22, remarking the Enterprise Program may terminate December 31S however many businesses had not completed their paperwork and new businesses could still take advantage of the Enterprise Zones benefits. He urged council to allow the Chamber to work through and wrap up the process and should the replacement legislation be valuable, he recommended continuing this partnership with the Chamber. Donna Acevedo, resident, remarked the Office of Independent Review would be ineffective as a police oversight committee as its purpose was to review complaints of officer - involved brutality charges or fatalities and provide recommendations, a solution not acceptable to the community. Ashleigh Aitken, Community Services Board, reported the recommendations for the FY 2013/14 funding process were before council for consideration. This year, funds were allocated to 15 agencies and 18 different programs divided between youth, seniors and low income families. She added this year 35 percent of funding went to youth programs, 31 percent to seniors and 34 percent for low income families, immigrants and the disabled. Mayor Tait, recognizing the difficult task before the Board, thanked members for their time and effort in making these recommendations. City Council Minutes of August 13, 2013 Page 9 of 25 Lisa Ewing, addressing Item No. 18, remarked the neighborhood began this process in March of 2012 and had been extremely patient while the process played out. She urged council support for this neighborhood permit parking request. Janie Wolicki, Women Helping Women and Men 2Work (WHW), thanked the Community Services Board for considering the nonprofit organization for funding. She explained WHW provided comprehensive support services to disadvantaged men and women, helping them to get jobs by providing professional apparel, a service that made a difference when individuals were seeking employment. Greg Diamond, speaking to renegotiation of the Angel Stadium lease, remarked in the first five years of the lease, the city earned $15,000 and the average for the past 11 years was $1.7 million per year. He pointed out the RAMS organization had paid $2.4 million a year which would end in two years. He believed he could put together a consortium that would guaranty the city more than $1.7 million a year. Rob Ignacio, resident, opposed speed lumps for his neighborhood, remarking there were other surrounding streets that would be impacted that never had a chance to vote and there were no other alternatives presented to the community other than the speed lumps. Jerry Alder, resident, thanked the city for its past partnership with the Chamber of Commerce, urging that a long view to taken on economic development in the city and its continued partnership with the Chambers could help grow economic vitality in providing jobs and resources to the city. Todd Ament, Chamber of Commerce, stated that despite the state changing the rules for local governments, there was still work to do to ensure jobs came to Anaheim. He reported Anaheim was recognized as running a model Enterprise Zone and there was still concern that companies that hired during the remainder of the calendar year were served. He added the Chamber was prepared to continue to work together with the city, to look at tasks that don't make sense to continue, while taking advantage of $3.7 billion that would be available of the next five years. He indicated there were still opportunities in the Canyon area and the Resort and looked forward to working with staff to develop the next round of jobs. Carol Jacobs, speaking in support of Item No. 8, explained this was a neighborhood looking for solutions to speeding on their residential street and while 15 percent of cars counted on several days had exceeded speed limits, that translated to 230 cars traveling in excess of the speed limit on a daily basis and presented a safety concern for the residents. She added all neighbors were invited to attend meetings to discuss solutions, but few did and a committee was formed from the few who cared enough to attend. Irene Kraemer addressed Item No. 18, remarked the surrounding streets were full of apartments causing overflow parking in her neighborhood. She noted the problem worsened over the years and believed that permit parking would alleviate the problem. CONSENT CALENDAR: Mayor Tait removed Item Nos. 4 and 13 from the consent calendar for further discussion and indicated he would abstain from voting on Item No. 8 as he lived within 500 feet of Cottontail and Item No. 10 due to a potential conflict of interest involving Caltrans. Council Member Kring requested Item No. 15 be removed from the consent calendar as well. Council Member Brandman 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, City Council Minutes of August 13, 2013 Page 10 of 25 certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Mayor Pro Tern Eastman. Roll Call Vote: Ayes — 5: (Chairman Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. 8105 1. Receive and file minutes of the Sister City Commission meeting of June 24, 2013 and Public Utilities Board meeting of June 26, 2013. D114 2. Approve minutes of the Council meeting of June 18, 2013. 3. Reappoint five individuals to the Anaheim Workforce Investment Board, two members 8105 representing business and three members representing the public- sector, to a four -year term ending July 23, 2017 (Business Representatives: Sandra Estrada and Mary Ellen Blair; Public Sector Representatives: Greg Schulz, Ernest Oviedo, and Martin Lopez). 5. Approve the 2013 -2017 Workforce Investment Act Local Strategic Workforce Plan and D159 authorize the Mayor to execute the plan and modifications thereto and related documents. 6. Determine that the Anaheim Convention Center Solar Project (Project) is statutorily AGR -7739 exempt under the California Environmental Quality Act, Section 21080.35 of Title 14 of the California Code of Regulations; determine the proposal submitted by Borrego Solar Systems, Inc. ( Borrego), dated January 3, 2013 is the most advantageous to complete the Project for the City; award the contract to Borrego, in the amount of $5,794,200 with a ten percent (10 %) contingency to design and construct the Project; waive any irregularities in any of the documents of the best qualified and responsible bidder; approve the contract, in substantial form; and authorize the Public Works Director or designee to execute any related documents and take the necessary actions to implement and administer the contract, including the execution of an escrow agreement in accordance with Public Contract Code Section 22300. 7. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing D180 Agent to issue a purchase order to Philips Healthcare, in the amount of $224,241.70, for Philips HeartStart MRx Refresh Service and upgrades to the Anaheim Fire Department's heart monitor /defibrillator units. 8. Approve speed lumps on Cottontail Lane between Sunset Ridge and Hollow Oak Road D175 and on Hollow Oak Road between Sunset Ridge and Cottontail Lane as a traffic calming measure. Mayor Tait abstained on this item. 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. 9. Approve the Reimbursement Agreement with the Garden Grove Sanitary District for the AGR -7740 construction of a sanitary sewer line in Cerritos Avenue from Gilbert Street to Brookhurst Street with the City's project share estimated to be $1,190,000. 10. Approve and authorize the Director of Public Works, or her designee, to execute Program Supplement Nos. L84, L85 and L86 to Administering Agency -State Agreement AGR- 5290.0.L84 for State Funded Project 00145S with State of California, Department of Transportation AG R- 5290.00. AGR - 5290. to accept $1,167,300 in grant funds, authorize the acceptance and management of such 18 6 L8 City Council Minutes of August 13, 2013 Page 11 of 25 grants on behalf of the City, and increase the Public Works Fiscal Year 2013/14 revenue and expenditure budget by $781,200 for the Safe Routes to School projects (La Palma Sidewalk Improvements, Lin col n/Westch ester Traffic Signal and Magnolia/Winston Traffic Signal). Mayor Tait abstained on this item. 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. 11. Approve and authorize the City Manager to execute a professional services agreement, AGR- 1956.0 in an amount not to exceed $100,000, with Golden West Medical Center for the purpose of providing physical examinations and annual physical fitness testing for Fire personnel for a one year term with two -year optional renewals. 12. Approve the Fifth Amended Joint Exercise of Powers Agreement of the Orange County - City Hazardous Materials Emergency Response Authority with the City of Huntington AGR- 2051.5 Beach which provides policy revisions necessary to accommodate the withdrawal of two provider agencies, City of Santa Ana and Orange County Fire Authority 14. Approve the First Amendment to Agreement with SoftSmiths, Inc. to change the delivery method to a Soft -as -a- Service system and to move the Energy Trading and Risk Management System to a remotely hosted web -based system, in an amount not to AGR - 4465.1 exceed a one -time implementation fee of $91,800 in the first year and increase the existing annual fee by $218,000, which escalates 4% each additional three year term; approve Order Form OF 1226 to implement additional reporting requirements in compliance with AB 32 and the associated Cap- and -Trade program, in a one -time fee not exceed $108,000; and authorize the Acting Public Utilities General Manager to execute the Amendment and related documents and to take the necessary actions to implement and administer the Agreement as amended. 16. RESOLUTION NO. 2013 -117 A RESOLUTION OF THE CITY COUNCIL OF Pilo THE CITY OF ANAHEIM vacating a portion of public service easement located at 1400 S. Harbor Boulevard (ABA2012- 00247) pursuant to California Streets and Highway Code Section 8330, et. seq. - Summary Vacation. D175 17. RESOLUTION NO. 2013 -118 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing Permit - Eligible Parking District No. 24 (Gaymont Laxore). 18. RESOLUTION NO. 2013 -119 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing Permit - Eligible Parking District No. 25 (Gilbuck D175 Alexis). 19. RESOLUTION NO. 2013 -120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Letter of Understanding between the International D154.5 Brotherhood of Electrical Workers, Local 47, and the City of Anaheim. 20. ORDINANCE NO. 6283 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal c2so Code relating zoning (Reclassification No. 2013 - 00253; DEV2012- 00135) (3083 -3087 City Council Minutes of August 13, 2013 Page 12 of 25 West Ball Road; Rezone to RM -1 (Multiple - Family Residential)] (Introduced at Council meeting of July 23, 2013, Item No. 21). 21. ORDINANCE NO. 6284 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Subsection .020 of Section 18.24.030 of Chapter 18.24 of Title 18 C290 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) (Introduced at the Council meeting of July 23, 2013, Item No. 22). END OF CONSENT CALENDAR: 4. Approve the FY 2013 -2014 Annual Action Plan for Federal Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions D155 Grant (ESG) funds of $6,505,539, amend the adopted FY 2013 -2014 budget to increase the Community Development budget by $680,000 and the Community Services budget by $96,300, and designate the Director of Community Development as the certifying official authorized to execute all documents related to the administration, management, and implementation of the CDBG, HOME, and ESG programs. Mayor Tait explained that federal funds were distributed to a variety of non - profit programs and the Community Services Board used a comprehensive process to determine how those funds were divided among the many non - profits. He mentioned serving on this committee some years ago and the difficulty in making decisions because the needs were much greater than the funds. He also recognized that several groups were disappointed in not receiving funding and while he personally supported ESCRI and the work they do as well as High Hopes Foundation, he would stand behind the committee's recommendations. Mayor Pro Tern Eastman appreciated the percentage breakdown provided by the Board, remarking it was a fair division and she supported the Board's decisions as well. Council Member Kring added that she would support the recommendations of the Board that met and vetted every group that submitted applications. Council Member Murray inquired if audits were submitted as part of the process with all applicants and recipients with Community Services Director Terry Lowe responding that audits were required and an end of year report was provided by each non - profit and Committee members also conducted on -site visits before as part of their comprehensive review. Mayor Tait then moved to approve Item No. 4, seconded by Council Member Kring. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Approved. 13. Approve an agreement with Mercy House to implement a pilot project aimed at providing outreach and assistance to homeless persons at La Palma Park, in the amount of $52,150, for a six month period with an option to extend for an additional six months for AGR -7741 a total not -to- exceed amount of $104,300, and authorize the Community Services Director to execute any related documents and take the necessary actions to implement and administer the agreement. City Council Minutes of August 13, 2013 Page 13 of 25 Mayor Tait indicated that a thorough workshop had been conducted earlier as a joint presentation between the City of Anaheim and Orange County. He thanked Mercy House for stepping forward to help address the homeless issue at La Palma Park and he believed this innovative solution would succeed. Mayor Pro Tem Eastman added that staff was ready to put this pilot program into practice following approval of this item. Director Terry Lowe indicated storage containers would be delivered the next day and he would get back to council with feedback as to how the program was faring. Mayor Tait then moved to approve Item No. 13, 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. 15. Approve an agreement with Growth Opportunities through Athletics, Learning & Service (GOALS) for a comprehensive graffiti education and intervention program and authorize the AGR -7742 Chief of Police, or his designee, to execute any related documents and take the necessary actions to implement and administer the agreement. Council Member Kring congratulated GOALS for being selected by staff to help with graffiti removal commenting that having kids facilitate this program gave them a better understanding of how graffiti impacts the community. Mayor Tait expressed his appreciation as well remarking it was an innovative way to remove graffiti and would change the culture of the city. Council Member Kring moved to approve Item No. 15, 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. 22. Determine if a modification to the contract with the Anaheim Chamber of Commerce is appropriate at this time in light of the State of California's termination of the Enterprise AGR -7108 Zone Program at the end of calendar year 2013. Council Member Brandman called for a point of order on this item, asking the city attorney if it was appropriate for any member of this council to sit in consideration of this item per the Political Reform Act because each council member had received contributions from PACs related to the Chamber of Commerce or by board members of the Chamber of Commerce. Michael Houston, City Attorney, responded if that were the case, there would not be a conflict under the Political Reform Act as political contributions were not considered financial interests for these purposes. Upon further questioning, Mr. Houston replied financial interests related to sources of income, gifts, investments, ownership of real property and a catchall provision for personal financial interests adding that receipt of political contributions was specifically excepted and recognized by California Supreme case law. Mayor Tait stated he had asked for this item to be agendized as recent state law terminated the Enterprise Zone Program at the end of this calendar year, and asking Sheri Vander Dussen, Planning Director, to provide a brief background on this matter. Ms. Vander Dussen indicated the Enterprise Zone had been granted by the state effective February, 2012 and the Chamber of Commerce administered the Zone on behalf of the City through marketing efforts, processing vouchers for tax credit and fulfilling reporting and monitoring requirements. She noted the passage of AB 93 and SIB 90 repealed the California Enterprise Zone program by December 31, City Council Minutes of August 13, 2013 Page 14 of 25 2013; however, businesses could still take advantage of the current benefits of the program though the end of the year. The agreement contained a set scope of work with values attached and the vouchering activity was covered. Mayor Tait indicated there was an amendment in May that increased the contract, asking for affirmation on that increase. Ms. Vander Dussen confirmed the increase was for $130,000 with Mayor Tait stating that reflected a total of $2.3 million over five years. He added the process followed was for those companies coming into Anaheim for business purposes and hiring staff that met certain qualifications, a tax credit was offered by the state and that voucher must be verified, a function provided by the Chamber under contract to the city. He confirmed with Ms. Vander Dussen that normally that function was performed by cities or counties that made up the Enterprise Zone. He emphasized since the state terminated the Enterprise Zone, he wanted to ensure that the Chamber was aware that their contract would end at some point in the future because it was no longer an indefinite program. He indicated he would like council to ask staff to address this issue and begin the termination of this contract and to work out a system that made sense at the end of the year. Since payment to the Chamber was made in advance of the work, he felt it was appropriate to let them know the contract would be terminated at the end of the year and moved to do so, seconded by Mayor Pro Tern Eastman for discussion purposes. Council Member Kring remarked representatives from the Governor's Office explained the funding was being transferred to Enterprise Zone 2, a program that would have similar functions but was designed to help companies attract employees such as veterans or early release prisoners. If that was the case, she asked how staff would recommend the transfer from the original enterprise zone to the second version would be seamless. Mayor Tait remarked if council wished to have the Chamber engage in activities beyond the scope of this contract, a new agreement should be put in place. It was also his understanding that the State would be administering the new incentive program with no role for local jurisdictions. For those reasons, he reiterated the need to end the Chamber contract and the annual payment of $400,000+ for processing vouchers that would end in January 2014. Council Member Murray stated she had attended a meeting with Senator Correa last week with the Governor's job czar, Michael Rossi, who pointed to Anaheim's program as being a model for the state. He stated the GoBiz (Governor's Office on Business and Economic Development) program had not yet been defined and Anaheim would have a seat at the table as that program moved forward, due to the successes of the Chamber in managing the Anaheim Enterprise Zone. Four thousand new jobs had been created so far and she felt it was premature to disrupt that investment. She recommended working with the Chamber for the next 60 -90 days to look at a new work plan and bring back recommendations for an amended contract compliant with the new program. She would not support an early termination of the contract until more was known about the sunset date for vouchers and how the new program would be defined. Mayor Tait restated that he was not asking the contract to be terminated today, but that it continue as it wound down and processed the few additional vouchers until the end of the year. At the end of the year, he added, the Chamber could be contracted to do the de minimis work as compared to the current contract which covers putting on events, attending conferences, talking to businesses outside of Anaheim, all functions that would no longer be necessary. Council Member Kring remarked last week the Chamber stated they were constantly reaching out and still talking to new and existing businesses, working to find jobs for those who were desperate and since there was still over four months remaining in 2013, she would not support this motion. Mayor Pro Tem Eastman commented she also had concerns that this action would be premature until the city was aware of what form the new program would take, adding it would be prudent to wait with the expectation staff would get up to speed on the state's decision and City Council Minutes of August 13, 2013 Page 15 of 25 there was no urgency to take this action tonight. Council Member Brandman stated he believed the mayor's motion would do irreparable harm if approved, adding that Governor Brown had an October 13 deadline for cleanup legislation and there was still time to consider this action in September before the next payment was to be made to the Chamber and called for the question. Debate continued, with Mayor Tait inquiring as to the full cost of the amended contract. Ms. Vander Dussen indicated it was $2,367,500. Mayor Tait stated a contract amendment had been approved three weeks before the audit was due on a contract that was initially $1.7 million and then increased to $2.3 million without an increase in the scope of duties. Mayor Tait inquired if a financial or performance audit was required with Ms. Vander Dussen remarking it was a performance audit and the Chamber received a determination that they had performed per their contract with the city. Mayor Tait wondered why the City would continue to spend money when the Enterprise Zone program ended on December 31 st of this year. Council Member Brandman reported staff had already begun administrative proceedings to revise the scope of duties on the Chamber's contract and recommended they be allowed to bring back their recommendations to council regarding any future impacts. Council Member Murray suggested staff continue its work to modify and amend the scope of duties and make recommendations to council when there was more information from the state on the promulgation of the new program and how it might be in the city's best interests to proceed before a future payment was made to the Chamber. Mayor Tait stated he had moved to direct staff negotiate a contract with the Anaheim Chamber of Commerce to wind down and terminate the Enterprise Zone Program by the end of the calendar year 2013, in accordance with state law and that Mayor Pro Tern Eastman had seconded that motion earlier. Roll Call Vote: Ayes — 1: Mayor Tait. Noes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and Murray.) Motion Failed. D128 23. Receive and file the report on budgeted costs for core services by neighborhood. Finance Director Debbie Moreno presented a presentation on the budgeted costs for core services by neighborhood and this high -level analysis was now presented to council. While the City's budget was not tracked by geographic area, she stated staff used relevant statistical data to estimate each of the departments' taxpayer supported costs by neighborhood, using the Neighborhood Council Districts; i.e., West, Central, South and East Neighborhood Council Districts. She added while this report focused on daily operational services of the General Fund, a section of the report summarized investments in community amenities to better put into perspective all of the invested resources and since each of the districts varied in population and size, the report represented data by total dollar allocation, as well as per capita and per square mile. The lowest per capita net cost, she reported, was in the East neighborhood district at $560 and the highest was reflected in the South district at $663 per capita. She specified the results indicated that the proportion of each neighborhood's costs closely followed the proportion of its population and while the East neighborhood had the largest area of land, it was still in line with per capita costs throughout the city. The first step in the process, stated Ms. Moreno, was to define the areas of the neighborhoods. Since the city had already established Neighborhood Council Districts to focus on the needs of those neighborhoods and used an interdepartmental approach to improve livability, sufficient data was available by this geographic division to reasonably estimate core costs for services. For purposes of clarification she explained the boundaries of the four districts: the West neighborhood boundary was west of Euclid Street, the 1 -5 Freeway and Brookhurst Street, the Central district was located west of Rio Vista Street, north of Ball Road and east of Euclid City Council Minutes of August 13, 2013 Page 16 of 25 Street, the 1 -5 Freeway and Brookhurst Street, the South Neighborhood District was south of Ball Road and east of Euclid Street and the East District was east of Rio Vista Street. She broke down the neighborhood statistics, remarking the Resort was excluded for purposes that would be made clear later. The West District had just under a third of the population but not quite 20% of the land area; the Central neighborhood was the largest in population but only the second largest in size; the South was the smallest in both population and land; and the East was the largest in size, nearly half of the entire city but only 20 percent of the population. She pointed out because each of the neighborhoods had very different characteristics; information on total dollars spent per capita and per square mile were shown. Ms. Moreno noted the General Fund was the primary source for funding neighborhood core services, and included police and fire protection, library programs, park maintenance, and street maintenance. Expenditures within the General Fund were chiefly made up of personnel costs to support these ongoing programs and day -to -day operations and the analysis was specific to the General Fund which was taxpayer supported and did not include costs that were offset by user fees. With the focus on tax - funded costs, she clarified; the analysis also excluded neighborhood expenditures from special purpose funds, such as grant funds, which typically funded projects that were one -time in nature or for restricted purposes. She further explained the costs of the Resort were excluded because preliminary analysis revealed that the 20 million annual visitors distorted the service levels for the South neighborhood, and as previous analysis indicated, the Resort paid for its cost of services and then contributed to the remainder of the city. Anaheim's Net Costs were then reduced by the Resort's estimated portion of nearly $12 million for police, fire and other operational expenses. The next step was to apportion each of the departments' budgets by neighborhood and this was completed by putting the departments into either Operating or Support functions. For the operating departments that offered direct services to the community, such as police, fire, and community services, data by specific location was used. For the support departments, such as the City Manager's office, City Attorney, Finance, and Human Resources, costs were allocated to follow the overall allocation of the operating departments which meant if one -third of all operating costs were in one neighborhood, then one -third of all support costs were allocated to that same neighborhood. Public safety costs were allotted by using the number of calls for service for both police and fire. For Community Services, park maintenance was assigned based on the number of acres of parks in each neighborhood and facility locations were used to allocate libraries and community centers. Lastly, centerline miles were used to apportion Public Works costs while the numbers of street lights were used to distribute the costs of Public Utilities, since most of this was related to street lights. Ms. Moreno pointed out each department's Net Cost total was then allocated to the neighborhoods and the analysis showed the highest Net Cost was in the Central neighborhood at $78.7 million, or 39.0% of the overall Net Cost and the lowest was for the South at $24.5 million, or 12.2% of the overall Net Cost. Because of the varying population and size characteristics, she emphasized, this information was not that meaningful by itself. Regarding Per Capita Net Costs, or that which represented the cost in relation to the population count for , each neighborhood, the highest Per Capita Net Cost was found in the South District at $663 and the lowest in the East at $560. Citywide, across all neighborhoods, she underscored, the Per Capita Net Cost was $608 and overall they were fairly consistent. She reported staff had also looked at the Per Square Mile Net Costs, or that which represented the cost in relation to each square mile in each neighborhood, with the West and Central Districts showing the highest Per City Council Minutes of August 13, 2013 Page 17 of 25 Square Mile Net Cost at about $6.8 million and the lowest in the East at $1.6 million. Citywide, across all neighborhoods, the Per Square Mile Net Cost reflected $4.1 million. Ms. Moreno pointed out the first part of the report focused on the daily operating costs of the General Fund and in order to better illustrate the overall investments of resources in community amenities, staff updated a previously prepared estimate of total investments from all funding sources. The updated table now included not only the total dollars invested but the amount per capita and per square mile. The lowest per capita was in the South at $117 and the highest was in the Central neighborhood at $204. Citywide, across all neighborhoods, the Per Capita Net Cost reflected $165. Additionally, the city's future plans for investments to community amenities were shown via the Capital Improvement Program of the FY 2013/14 budget. A significantly higher amount was reflected in the South District, which benefitted from the Platinum Triangle fees that generated funds restricted to the development and improvement of community facilities within that specific neighborhood. The planned construction in the south, she added, included a new community center, gym and pocket park, stating there was over $6 million of unallocated funds for development of new and existing parks in the Platinum Triangle. Overall, Ms. Moreno explained, the results of the analysis showed that the distribution of City General Fund resources closely followed along with the population of each of the four (4) neighborhoods within the City. Additionally, a review of the capital improvement program also showed a distribution of resources consistent with the population of the neighborhoods as well as a commitment to meeting the needs of more distressed neighborhoods in the Western and Central portions of the City. Council Member Murray remarked this report validated what she and Mayor Pro Tern Eastman had considered to be true, that there was a significant commitment made to serving the city as a whole and equitably balanced throughout while putting emphasis on stressed neighborhoods. She added because of development in the Platinum Triangle, the city was also able to invest millions of dollars in parks. She thanked staff for responding so quickly recommending this document be updated annually for the community as well because there were entities putting out contradictory information. OCCORD, in particular, she stated, had put out a report saying the city spent $170 /person on community resources for the Hills area and $156 per person for the flatlands, asking staff why there should be such a disparagement between reports. Ms. Moreno responded OCCORD used estimated census data by zip code which did not include 92803, the east and central area, while staff used population data from the 2010 census by census tract to more closely follow the boundaries of the neighborhood council districts. Ms. Murray added that in addition, the OCCORD report talked about more parks and libraries in the east versus all other areas with Ms. Moreno responding that staff's analysis looked at all parks and a significant acreage that did not require city maintenance was excluded from the cost estimates because it would skew the analysis. Council Member Murray asked that this report be communicated broadly to residents in English and in Spanish. Mayor Pro Tern Eastman remarked that with council's involvement in the budget process, they intuitively understood what the report validated, that resources were spread equitably throughout the city. She also asked that the information be available on the city's website and also available should interested person request a copy; Ms. Moreno concurred. Council Member Kring recommended this document be posted in the libraries as well, adding that she was surprised that the South neighborhood district had the largest per capita resources at $663 /capital. She also noted out of 52 parks in Anaheim, the majority, at least 30, were in the flatlands. Council Member Brandman also suggested this report be a living document and that it be used in the normal budget workshop process and updated each year. City Council Minutes of August 13, 2013 Page 18 of 25 Council Member Kring then moved to receive and file the report on budgeted costs for core services by neighborhood, seconded by Mayor Pro Tem Eastman. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. PUBLIC HEARINGS: 24. This is a continued public hearing to consider a resolution adopting a new schedule of fees, charges and rates for building, construction, planning technology system, and D128 NPDES permits, services and activities (Continued from Council meetings of June 18, 2013 and July 23, 2013). RESOLUTION NO. 2013 -121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a new schedule of fees, charges and rates for building, construction, planning technology system, and National Pollutant Discharge Elimination System (NPDES) permits, services and activities. Sheri Vander Dussen, Director of Planning, reported staff had been meeting with the representatives from the Building Industry Association of Orange County (BIA) along with some of its members, Lennar and Brookfield, who were active in Anaheim, to discuss the proposed fee increase for building services. She indicated a letter had recently been received from the BIA stating the organization did not object to the proposed fee adjustment of eight percent for services. She stated the city had not revaluated its fees for over five years and if they had kept pace with costs or even the typical CPI, the current fees would have been at least 10 -12 percent higher. Ms. Vander Dussen pointed out the revenues of the Building Division no longer funded necessary resources and staffing levels requiring General Fund subsidies and in recent years, that subsidy ranged from $37,000 to $500,000. The current fee structure, she explained, was designed to recover all expenses associated with building activities; however, it was out of date and had not kept pace with current costs and activities and the proposed fee increase was estimated to increase Building Division revenues by $357,000. She indicated the Building Division was experiencing higher volumes of work coming out of the recession and experts anticipated that need to continue, and staff was now spending more time with customers as a result of a strong focus on customer service and also a need to evaluate and inspect more complex state regulations. She pointed out customers, when asked, had consistently stated that as long as fees were reasonable, they would rather have a higher level of customer service and a timely response to their applications, a recommendation also made by the Mayor's task force on regulatory relief. She also indicated that several builders commented that compared to other cities, Anaheim's fees were reasonable. This proposed adjustment, she emphasized, would provide customers with their first and highest priority, customer service and timeliness and the additional revenues would be used to fund operations and production- oriented positions such as plan checkers or inspectors designed to insure the Division met current service level standards. Ms. Vander Dussen stated if approved, the fees would go into effect in 60 days and staff would provide plenty of notice to customers of the changes and recommended approval to the city council. Mayor Tait opened the public hearing for comments. City Council Minutes of August 13, 2013 Page 19 of 25 William Fitzgerald, Anaheim Home, discussed a variety of unrelated issues, but specific to this public hearing, he felt the fees were unjust, pointing to the $148 permit fee for replacement of a water heater. With no other comments offered, Mayor Tait closed the public hearing. He asked staff to elaborate on the cost to replace a residential water heater. Ms. Vander Dussen responded that in the past a typical water heater replacement permit was a simple process for both customer and staff, however, today, the process consisted of 13 state - mandated pages including the permit, declaration, Title 24 Form, Owner - Builder Verification Form and inspection record, and customers typically needed more assistance in completing these forms which increased processing times. The $148 fee was a reflection of that increased processing time. Mayor Tait then moved to approve RESOLUTON NO. 2013 -121 OF THE CITY OF ANAHEIM adopting a new schedule of fees, charges and rates for building, construction, planning technology system and National Pollutant Discharge Elimination System (NPDES) permits, services and activities, seconded by Council Member Kring. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. 9128 25. This is a public hearing to amend the fee schedule for services rendered by the Fire Department's Fire Prevention Division. RESOLUTION NO. 2013 -122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM revising fees for services rendered by the Anaheim Fire Department and establishing the effective date of fees and rescinding Resolution 2012- 088. Rusty Coffelt, Deputy Fire Chief, reported staff was requesting to amend the fee schedule for service provided by the Fire Prevention Division to realize the city's goals outlined in the Regulatory Relief Task Force recommendations. He noted the current fee resolution adopted by the City had no provisions for charging fire and life safety inspection fees when performed at apartment buildings that had three and four units. He added that recent interpretations from the State Fire Marshall's Office and the California Building Standards Commission indicated that three and four unit dwellings must be included in the Multi - Family Risk Reduction Inspection program because they fall into the occupancy R -2 classifications, the same as dwelling units five and above. Mr. Coffelt explained there were two revisions to the fee schedule requested. The first was to include three and four unit apartment buildings into the $36 fee category of the Multi - Family Risk Reduction Inspection program to place them within the same category as apartment buildings with five to nine units. The second request was for late fees for non - payment to begin at 30 days past invoice rather than the current 45 days to allow consistency with other departmental fee -based programs. He remarked these proposals had been discussed with the Apartment Owners Association of Orange County (AAOC) and the California Apartment Association and while both of these organizations were generally opposed to fees for government services, they had voiced no objections to either the methodology used nor the proposal to add three and four unit buildings to the lowest inspection fee category. Mayor Tait opened the public hearing for comments. City Council Minutes of August 13, 2013 Page 20 of 25 William Fitzgerald, Anaheim Home, objected to the fee, stating fire prevention services should not reflect a cost to the taxpayer and he believed this was a ruse to raise funds for the city under the guise of a fee, not a tax. With no other comments offered, Mayor Tait closed the public hearing. Council Member Kring remarked these fees were caused by state mandates and those that objected should talk to their legislators about changing those mandates and then moved to approve RESOLUTION NO. 2013 -122 OF THE CITY OF ANAHEIM revising fees for services rendered by the Anaheim Fire Department and establishing the effective date of fees and rescinding Resolution No. 2012 -088, 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. 26. ZONING CODE AMENDMENT NO. 2013 -00109 (DEV2013- 00050) LOCATION: Citywide 0280 A City - initiated amendment to Title 18 (Zoning) of the Anaheim Municipal Code ( "Code ") including, but not limited to, updating and streamlining certain business permit regulations and procedures and reducing the number and type of business uses required to obtain a conditional use permit. Certain regulations pertaining to encroachments for single - family zones and large family daycare will be relaxed. Changes also include clarifications to various sections of the Code, requiring a conditional use permit for auto sales agency offices, including an amortization program for existing businesses already established, and moving certain private property related engineering standard details to "Planning Standards ", including updating reference language in the East Center Street Specific Plan (Adjustment No. 2, SPN90 -2(B), Disneyland Specific Plan (Adjustment No. 9, SPN92 -1 Q ), Anaheim Resort Specific Plan (Adjustment No. 7, SPN92 -2V) Hotel Circle Specific Plan (Adjustment No. 4, SPN93 -1 D). Environmental Determination: The City Council will determine whether this action is exempt from the California Environmental Quality Act under Section 15061(b)(3) of Title 14 of the California Code of Regulations on the basis that there is no possibility that the Zoning Code amendment may have a significant effect on the environment. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended City Council approval of Zoning Code Amendment No. 2013 -00109 with modification to Sections 18.16.080.030.0303, 18.38.205.020.0209 and 18.46.150.010. Vote: 5 -0 -1: Commissioners Bostwick, Faessel, Lieberman, Persaud and Seymour voted yes. Chairman Ramirez abstained. Commissioner Agarwal was absent. (Planning Commission meeting of July 1, 2013). ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending various Chapters of Title 18 of the Anaheim Municipal Code (Zoning Code Amendment No. 2013 - 00109) (DEV2013- 00050). The City Clerk remarked an amended ordinance was distributed to council which deleted the provision on hours of limitation of operation for lounges and that introduction of this ordinance would include the amendment. Sheri Vander Dussen, Planning Director, announced this was a city initiated request to amend the zoning code in response to recommendations by the Regulatory Relief Task Force. The proposed changes would reduce the numbers of business uses that would require a conditional City Council Minutes of August 13, 2013 Page 21 of 25 use permit, updated business regulations and included changes that would benefit homeowners. The amendment also addressed an issue that generated numerous complaints, i.e., vehicles for sale parked on city streets. She noted Mayor Pro Tem Eastman and Council Member Kring had fielded a number of these complaints in addition to those complaints handled by staff and after a recent meeting with the Department of Motor Vehicles (DMV), staff proposed to address this issue by requiring single vehicle auto dealers to obtain a conditional use permit. This code amendment, she remarked, had been shared with various neighborhoods through Neighborhood Council District meetings and although not required, was noticed as a public hearing to create an opportunity for the community to comment. She noted affected business and property owners were also notified of the opportunity to speak. She advised that the Planning Commission reviewed and recommended approval of this code amendment at its meeting in July. ELIMINATION OF CONDITIONAL USE PERMITS FOR CERTAIN BUSINESS: Ms. Vander Dussen reported this was the second round of code amendments implementing the Mayor's Regulatory Relief Task Force indicating that one of their recommendations was to reduce the types of businesses that needed conditional use permits to open as the elimination of this permit would help business owners by providing certainty as well as time and cost savings. She noted Council already approved the elimination of 16 land uses from the conditionally permitted to the permitted category. With this amendment, six more business types would no longer require a conditional use permit (CUP), including dance and fitness studios, plant nurseries, restaurants with outdoor dining, broadcasting studios, modular structures not visible to the street and small recycle processing facilities. Staff evaluated conditions of approval typically attached to such permits for these land uses and to incorporate them into the code where appropriate so that potential operational impacts would continue to be mitigated without the need for a public hearing. Also included was an increase to the permitted number of seats for restaurants defined in the code as take -out restaurants. These restaurants would be allowed a maximum of 20 seats whereas now they could only have 10 seats. Examples of these, she explained, would be donut shops, yogurt shops, and small family owned restaurants, adding this change would allow these businesses to expand without increasing the parking requirement associated with a fast food restaurant. SMOKING LOUNGES: Ms. Vander Dussen indicated smoking lounges were currently permitted by an administratively regulated permit and under current zoning; they must be located 200 feet from residential uses and 1,000 feet from public or private schools. Because of the land use patterns in Anaheim, she pointed out, many commercially zoned parcels were situated within 200 feet of residential zones and this code amendment would allow the consideration of a CUP for smoking lounges that did not meet the distance standards. She stated these businesses could be approved if the Planning Commission determined that a smoking lounge would not have a negative impact on residents or schools. Specifically, of the 13 smoking lounges currently approved in the city, six were located more than 200 feet from a residential zone, and seven within 200 feet were established prior to adoption of this requirement. Under current standards, she noted, the primary operation of a smoking lounge must be conducted indoors with a maximum of 10 seats allowed outside as an accessory use. With this code amendment, she stated, lounges could apply for CUP to operate either wholly or in part outdoors and this amendment would provide flexibility to the businesses for the outdoor activity while allowing the city to provide protection for neighboring land uses through conditions of approval. She added this amendment also included the proposal to limit the hours of operation with smoking lounges, however, after discussions with business owners, and because new smoking lounges could likely be located City Council Minutes of August 13, 2013 Page 22 of 25 within 200 feet of residential zones and require a CUP, staff determined it would be more appropriate to look at the hours of operation thru the CUP process and that change was reflected in the amended ordinance referred to by the City Clerk in her introductory statement. RETAIL AUTOMOBILE SALES: Ms. Vander Dussen explained retail automobile sales were permitted by zoning code for two types of land uses, the traditional car lots that usually displayed multiple vehicles for sale and office only retail sales agencies where the primary land use was an office. She noted the Department of Motor Vehicles (DMV) required all auto dealers to have a display area for vehicles that were offered for sale and the zoning code allowed office use only auto dealerships to operate with one display space and limited advertising on the vehicle to one required posting. Currently, she stated, the traditional car lots required a CUP while the office use only dealers were allowed by right if the amount of on -site display area accommodated the one required display space. The city currently had 119 permits for office use auto dealers, and she remarked, the unanticipated effect of these dealerships was problematic in that many cars offered for sale were being displayed on public streets. She added the DMV estimated that only 10 percent of the vehicles displayed on public streets were personal vehicles offered for sale and the remaining were other vehicles displayed by licensed and unlicensed dealers. She further explained that case law prohibited the city from banning personal vehicles on public streets although the DMV required dealers to display and sell their vehicles at their licensed place of business. She pointed out that it took time for DMV staff to investigate and determine which cars were personal and which belonged to dealers, adding that state budget cuts limited their ability to address this issue. The proposed code amendment would require a CUP for office only car dealers and she pointed out, through this process staff would have the opportunity to evaluate the proposed business operation and the appropriateness of the property to accommodate an auto dealership without impacting adjacent streets and properties. Staff would evaluate the proposed operation of the business including the number of employees, anticipated numbers of sales, and inventory volume as well as the number of onsite display and customer spaces. Ms. Vander Dussen pointed out this CUP requirement would provide the Planning Commission with the opportunity to impose conditions and would give the city an additional enforcement tool that would expressly prohibit the sale and display of vehicles in public streets by taking action to revoke the permit. She noted the requirement for CUP for this land use would be very closely in line with what occurred in neighboring cities, revealing that Anaheim was one of only two Orange County cities allowing this operation by right so this action would create parity with the standards for larger auto dealers. She indicated that because there were so many office use only dealers, the amendment contained an amortization period and those dealers must apply for their CUP by July 1, 2015 if they wished to continue operating. Owners of businesses that demonstrated a significant investment in their property could also apply for an extension to July 1, 2015. Ms. Vander Dussen added that the city's experience was that many of these businesses operated on a month -to -month lease and had a high level of turnover, and many would cease through natural attrition by July, 2015. All business owners along with property owners were notified of the proposed change through direct mail, with Ms. Vander Dussen remarking several dealers were expected to speak to this proposed change. She added several of the property owners expressed concern over the cost of a CUP and staff had responded when multiple dealers were established on a property, all of the dealerships could be considered through one application and once the CUP was established, the auto dealers could be changed to a different car dealer in the event that the City Council Minutes of August 13, 2013 Page 23 of 25 owner wished to lease to a different tenant. She also believed if the car dealers were consistent with code compliances, they would be able to use the expedited 30 -day CUP, the cheapest and fastest application available to applicants. She concluded her report stating the code amendment eliminated the requirement for a CUP for six types of businesses, allowed for greater flexibility for smoking lounges and take -out restaurants, and would reduce the number of cars being sold on public streets by requiring a CUP for all auto dealers. Discussion was held on the cost of a 30 day CUP (approximately $3,000) and the lengthy amortization period in which the City Attorney remarked that under current law, when an individual had a vested right to operate, the economic value of their vested right was amortized over a period of time and his office determined that July 1, 2015 was appropriate based on other locales and jurisdictions in the area. Mayor Tait opened the public hearing for comments. Rany Tawfik stated he was a property owner with 60 percent of his building occupied by licensed auto dealers, both wholesale and retail, noting that many do not show up at all and did not have cars on the site as transactions occurred over the internet. He emphasized he would lose renters because they would simply move their business to another city. He added that if the problem was the proliferation of vehicles for sale on city streets, why not tow the cars, adding that cars for sale on the street competed with and impacted licensed auto dealers as well. Shane Shaw, Growth Management Company, reported he had called the city and asked the purpose of requiring a conditional use permit for all auto dealers and was told it reflected the need to reduce unauthorized cars for sale on public streets. He felt the assumption those cars belonged to auto dealers was unfair and not a strong rationale for requiring a permit. He added that most of the 119 dealers in the city were small "mom and pop" companies and their revenue margin was small and could not fund the cost of a conditional use permit, especially when approval of that permit was not a certainty. He indicated he would litigate this proposal which added costs to existing businesses all based on the assumption that cars on public streets belonged to licensed auto dealers. An unidentified individual was concerned with the smoking lounge related amendments, expressing concern over the hours of limitation and patio expanded uses. With no other comments offered, Mayor Tait closed the hearing. Council Member Kring asked staff for clarification on the previous speaker's concerns regarding smoking lounges as it was her understanding the city was making things easier for this type of business. C.J. Amstrup, Planning Services Manager, stated he believed the speaker was addressing the fact that if he was beyond 200 feet from residential areas, he would be able to have a dining patio without a conditional use permit. If he had an existing business, he would be licensed and would not need a CUP unless he was within 200 feet of residences. If he proposed having an outdoor smoking lounge or outdoor seating area, he could apply for a CUP, otherwise, Mr. Amstrup clarified, it was prohibited. He added the current code allowed 10 accessory seats outside for smoking lounges pointing out that many existing smoking lounges had an existing patio that was grandfathered in prior to adoption of City Council Minutes of August 13, 2013 Page 24 of 25 the code. Those establishments could continue operation, however, if they expanded outdoor seating area beyond the original approval, by current code they could not and with this code amendment in place, they could apply for a CUP. Mayor Tait invited the last public speaker to the podium, asking if that explanation answered his questions. The individual remarked that when he earlier discussed the hours of operation with staff, he was told the hours of operation would be limited. Sheri Vander Dussen interjected, that she believed the public speaker was reading from the original staff report in which smoking lounges were required to close at 2:00 P.M. and outdoor patios at 11:00 P.M., language that staff had eliminated from the ordinance and was reflected in the amendment ordinance the City Clerk identified during introduction of this item. The individual was satisfied with that explanation and Mayor Tait remarked the goal was to provide more business friendly environments by reducing restrictions for certain businesses. Regarding auto car dealers, Ms. Vander Dussen stated there may be a misunderstanding, noting that not every car dealer would qualify for the expedited CUP. With regard to the speaker renting offices from a building owner, she emphasized, those cars were not on city streets and it was her understanding that the DMV required a retail dealer to have display space but if they were wholesalers they would not be impacted by this ordinance. There was some discussion as to whether or not the ordinance language specified the difference between retailer and wholesaler. Consequently Mayor Tait remarked that it was not his intent to add restrictions to businesses that had no impact on the city, stating he would move to continue this item to the next agenda and in the meantime, staff could brief council and possibly come up with additional ideas to meet the goal of reducing the numbers of vehicles for sale on public streets. Mayor Tait then moved to continue this item to the August 20 meeting, seconded by Council Member Murray. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. REPORT ON CLOSED SESSION ITEMS: None COUNCIL COMMUNICATIONS: Mayor Pro Tem Eastman announced the following upcoming events: Friday Night Free Movie Night at Pearson Park on August 16 and 23 Silent Movie Night on August 17 and a Wig Wag community garden event scheduled for August 18 She highlighted the services of TIP International, a program assisting families during tragic events. Council Member Kring addressed the benefits and goals of the HEAL program (Healthy Eating Active Living) and requested a resolution be placed on a future agenda designating Anaheim as an Orange County HEAL city. She announced the upcoming Veterans' Day celebration for November 11 and spoke of her attendance at the "Sayonara" dinner with the Mito, Japan exchange students, thanking the host families and the Sister City Commission for all that they do in fostering sister city relations. Lastly, Council Member Kring requested a citywide motel ordinance be drafted for council consideration instilling best practices and to reduce criminal activity. Council Member Murray expressed her condolences to the family of Mitchell Cook. She discussed the District Attorney's community event called "Keep Calm and Beat H.E.A.T. (referencing Human Exploitation and Trafficking) scheduled for September 8 th and requested that the city co -host the event. She also announced the following upcoming events and /or dates City Council Minutes of August 13, 2013 Page 25 of 25 to remember: the Anaheim Halloween Parade fundraiser, a Spaghetti Supper at Toni's Deli on August 21s a Free Tech Tool session at the Anaheim Library on August 15 the Great Gatsby Weekend by Anaheim Public Arts Center on August 24 and 25 and the Orange County Black Chamber of Commerce 3 Annual Banquet to be held on September 3rd Mayor Tait announced the John Woelke House and George Hansen House had been added to the National Register of Historic Places. He highlighted the GOALS graffiti program and spoke of his attendance at the 4 th Annual International Dance Festival, the National Night Out and his visit with the Mito, Japan exchange students. He reported his attendance at the 50 convention of the Syriac Orthodox Church, Ebarc festival, and the Beta Alpha Psi fraternity community event and offered his condolences to the family of Mitchell Cook. ADJOURNMENT: With no other business to conduct, Mayor Tait adjourned the August 13, 2013 council meeting at 9:52 P.M. in memory of Mitchell Cook, Canyon High School student, and the recent passing of an Anaheim visitor from Korea. R ctfully submitted, Linda N. Andal, CIVIC City Clerk