2013/09/03ANAHEIM CITY COUNCIL
REGULAR MEETING OF SEPTEMBER 3, 2013
The regular meeting of September 3, 2013 was called to order at 3:10 P.M. in the chambers of
Anaheim City Hall. The meeting notice, agenda and related materials were duly posted on
August 30, 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 — HOUSING ELEMENT DRAFT POLICY
Dave Barquist, RBF Consulting, remarked as part of the development of the policy program for
the Housing Element, there had been extensive outreach to the community through digital
media, you tube videos and community meetings with the goal of capturing as many ideas as
possible from the public. In addition, there had been an external staff review of the past
performance of the Housing Element existing policies, those that succeeded and those that did
not and how those experiences might influence the development of the new policy program.
The demise of the state redevelopment program was a major point of discussion, he
emphasized, as staff explored other possible funding resources available to the city as well as
its impact upon the policy program. The final component involved the Ad Hoc Committee,
appointed by the city council, which reviewed and offered recommendations of the proposed
policy program to council.
KEY POLICY CONSIDERATIONS: Mr. Barquist reported staff estimated the annual tax
increment during the prior Housing Element planning period illustrated $100 million dollars of
redevelopment set -aside funds were available for development of affordable housing, adding
that it was a huge loss to the city to no longer have those funds available for the new planning
period. In addition, the downward trend in entitlement funding revealed another loss of about
$500,000 as the prior planning period obtained about $7 million in CDBG, HOME and ESG
funding, and this next planning period estimated about $6.5 million in anticipated funding.
Added to that redevelopment deficit, he explained, there was the issue of holding debt and
financing debt as reflected in the American Dream Downpayment Initiative, the 2 nd Mortgage
Payment Assistance, Affordable Housing programs through Federal Home Loans Bank, the
HELP program, which was a one -time rental assistance program to provide upfront costs for
rehousing the temporary homeless and lastly, the Housing Stabilization or Neighborhood
Stabilization Program, a subcomponent of CDBG funding. Many of those programs, he
explained, no longer existed or were not available to the city so the principal issue was how the
city addressed the needs of the community as it related to housing without those resources they
had relied upon in the past.
REVIEW OF DRAFT POLICY PROGRAM: The recommendations for the new planning period
ending FY 20/21 policy program was to focus the policy program on existing housing stock to
concentrate on rehabilitation and preservation of neighborhoods and improvement of those
communities, as well as offering direct tenant assistance through Section 8 and other programs
as a component of that effort. The next recommendation, he explained, was to prioritize
available funds to determine the most effective use of those limited resources and rather than
City Council Minutes of September 3, 2013
Page 2 of 24
new construction, consider neighborhood improvements and improvement of existing housing
stock. He added that many of the programs outlined in the Housing Element focused on
monitoring successful city programs but this language specifically indicated the city would
monitor those programs throughout the course of the planning period and adjust them if
situations merited an adjustment.
POLICY PROGRAM ORGANIZATION: Mr. Barquist remarked that policy considerations
trickled down into overall guiding principles which then provided the framework for policy
strategy areas. Housing considerations came from community and staff input, comments from
the Planning Commission and City Council over the past planning periods as well as
discussions held when updating the Housing Element programs. Eight topics had been
identified as housing considerations: 1) Funding /Financing, 2) the growth needs of the
community, 3) addressing Regional Housing Needs Assessment (RHNA), 4) the use of the
current limited resources, community design and sustainability and how it all related to the
livability of Anaheim, 5) affordable housing opportunities, 6) community education and outreach,
7) housing availability for all income levels and 8) infill /redevelopment (reinvigorating and
reinventing existing housing and neighborhoods).
GUIDING PRINCIPLES: He explained the Guiding Principles related to setting ideals or
providing policy direction to identify a need, not necessarily a direct policy. Those guiding
principles for Anaheim's Housing Element were identified as: 1) quality housing which
contributed to quality of life; 2) housing choices which helped with balance throughout the
community; 3) addressing the special needs population and their access to housing; 4)
sustainable principles which contributed to livability reflective of the existing policy program in
the General Plan and 5) community outreach as an important component to the successful
integration and implementation of the policy program.
POLICY STRATEGY AREAS: Mr. Barquist stated housing production, conservation and
preservation, quality and design, rehabilitation of existing housing stock, and affordable housing
opportunities in the community were all sub - policies within the program and interconnected. He
emphasized the tasks of the ad hoc committee members were to review the existing policy
program, look at the existing conditions analysis, and from a holistic viewpoint, provide input
and ultimately recommendations for council's consideration.
Mr. Barqust indicated the committee offered several new strategy areas, the first being an
evaluation in alternative funding and financing mechanisms. This, he shared, brought about
discussion related to the degradation of state redevelopment resources and looking at the
potential funding resources and any innovative means for alternative funding and financing
mechanisms. He explained this could be achieved by meeting with professionals involved in the
business of funding financing construction as well as with nonprofit and for - profit entities to
discover what tools and techniques were emerging. The next strategy related to SB2
requirements to provide emergency shelters or shelter opportunities in the city. This was an
opportunity for the city to develop a collaborative policy outreaching to service providers and
those in the business of emergency shelters to understand the needs and to build and manage
those shelters and the considerations and tools used as part of the planning process. The third
strategy was to re- examine development standards, entitlement procedures, and development
fees specifically as it related to housing and from the perspective housing builders within the
community (both market rate and affordable). This again, he emphasized was to understand the
needs and whether the process might put up constraints for builders. The next strategy related
to the provision of infrastructure to serve housing, looking at prioritization and considerations of
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the capital improvement program along with other improvements in the community to gain some
level of coordination between housing production, housing strategy and the overcall capital
improvement program. The final strategy relating to the homeless and motel families was
basically an outreach program aimed at homeless providers and motel families to understand
issues related to service safety, the provision of quality housing, what the needs were and how
to address those needs. Again, he emphasized, that outreach and collaboration was the basis
for that final strategy. Mr. Barquist added the Committee offered additional recommendations;
i.e., conducting at least one updated survey during each planning period to re- evaluate priority
neighborhoods and based on the survey results, the city could respond to current existing
needs. In addition, the committee recommended supplementary language be added to include
the City would re- evaluate and look for additional housing opportunity sites at some point during
the planning period to further enhance Policy 1 N in this planning program.
QUANTIFIED OBJECTIVES: Mr. Barquist remarked it was important to make it clear in the
quantification of objectives that the City believed it could provide direct assistance. Related to
RHNA numbers, he emphasized, those figures were not quotas and Anaheim was not required
to meet those objectives. The quantified objectives were more related to what the city could
directly participate in and did not have to consider private sector involvement. He showed a
graph of the past planning period RHNA numbers by income category, including the city's goals
reflective of what could potentially be accomplished followed by the actual construction
numbers. He remarked the figures accomplished during that planning period which
encompassed the economic downtown cycle were significant on a regional basis. He then
illustrated the RHNA figures identified for the 2014/2021 planning period with the total quantified
objectives reaching 4,500.
Mr. Barquist ended the presentation indicating council would authorize submittal of the draft
Housing Element to the state for review on September 24, 2013, followed by a submittal to the
State Housing and Community Development Department for initial review no later than October
14, 2013, and eventual adoption and public hearing within a December 2013 or January 2014
time frame.
Council Member Brandman and Mayor Pro Tern Eastman thanked the Ad Hoc Committee
members for participating in this process and the time and effort they put into their
recommendations. Mayor Tait concurred remarking the document addressed very complex
issues in Anaheim.
ADDITIONS /DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
At 3:30 P.M., 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. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Section 54957 (b) (1) of the California Government Code)
City Council Minutes of September 3, 2013
Page 4 of 24
Title: City Clerk and City Treasurer
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Subdivision 54956.8 of the California Government Code)
Property: Parcels 253 - 473 -01 (1200 S. Phoenix Club Drive) and 253 - 631 -39 (no site
address)
Agency Negotiator: Marcie Edwards
Under Negotiations: Price and Terms of Payment Regarding Purchase of Property
At 5:10 P.M., Council returned from closed session and the meeting was reconvened.
Invocation: Pastor Gregory Tucker, Hope Community Church of Anaheim
Flaq Salute: Council Member Jordan Brandman
Presentations: Recognizing Michael Baker on receiving the Maytag Dependable Leader
Award
Mayor Tait congratulated Michael Baker on receiving this recognition, remarking on the energy
and passion it took to grow a small Boys and Girls Club to one serving over 2,400 youths today.
Mr. Baker responded the Maytag award had been a great surprise to him and was a reflection of
his dedicated staff and board members. He added the funds received would be used to expand
services for those who needed it the most.
Acceptance of Other Recognitions (To be presented at a later date):
Proclaiming September 17 -23, 2013, as Constitution Week
Proclaiming September 23, 2013, as Family Day - Be Involved; Stay
I nvolved
Proclaiming September 15 - October 15, 2013, as Hispanic Heritage Month
Proclaiming September 2013, as Childhood Obesity Awareness Month
Proclaiming September 8, 2013, as Literacy Day
Proclaiming September 2013, as World Alzheimer's Awareness Month
Proclaiming September 8 -14, 2013, as International Hotel Housekeepers
Week
Recognizing Anaheim High School Fallen Heroes and Colonist Veterans
Program
Recognizing Dennis Kuhl on being honored by the Anaheim Chamber of
Commerce
Sharon Corsiglia, Mohave Chapter of the Daughters of the American Revolution, thanked the
city on behalf of the chapter for recognizing Constitution Week, on the 226 anniversary of the
US Constitution.
City Council Minutes of September 3, 2013
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Yvonne Duncan accepted the Hispanic Heritage proclamation on behalf of LULAC, an
organization that transformed civil rights and community service for Hispanic Americans. She
spoke to LULAC's record of accomplishments and achievements in improving the lives of many
Hispanics throughout the nation.
Shawna Henry, Alzheimer's Association, thanked the city for bringing awareness to this public
health issue asking that the community "go purple" from September 23 — September 27 to
bring awareness and understanding of this disease.
Dennis Kuhl, Angel Baseball, appreciated the recognition, stating the Angels organization
enabled him to outreach and help many causes in the city of Anaheim and it had been a
privilege for him to do so.
Jay Burress, Anaheim /Orange County Visitor & Convention Bureau, accepted the proclamation
on behalf of hotel housekeepers, remarking that jobs of all sizes and shapes made up the
tourism industry and housekeepers were the first in line to make a good impression on visitors.
John Guastaferro, Anaheim YMCA, accepted the proclamation on behalf of childhood obesity,
an important issue addressed by the YMCA with several initiatives designed to promote healthy
living, good eating habits and providing enough spaces for kids to be active in play.
Kimberly Vig remarked the Literacy Project Foundation had been in Anaheim schools over the
last two years promoting literacy through proven methods, and thanked the city for recognizing
the personal benefits gained through literacy.
Janet Brown, Anaheim High School Alumni Association, indicated she, along with other board
members was present to thank the city for recognizing their efforts to identify alumni who gave
their lives for their country. A salute to these fallen veterans would be held on September 11
at Cook Auditorium and interested persons could find out more information on their website at
www.anaheimcolonists.com
ADDITIONS /DELETIONS TO THE AGENDA: City Clerk reported staff requested Item No. 5 be
removed from the agenda for a revision to the equitable sharing agreement and advised it would
be rescheduled on a future date.
PUBLIC COMMENTS (all agenda items):
Dennis Kuhl, Angels Baseball, emphasized the good work provided by the Angels Foundation
over the last decade, an important partner and contributor to community organizations and their
causes. Speaking to Item No. 14 on the agenda, he remarked, the lease extension would
provide both the city and the Angels the time to work through negotiations on the Angel
Baseball Stadium lease and ensure the focus remained on giving Angel's fans a high quality
experience for years to come.
William Fitzgerald commented that Council Member Kring had reversed her position on her
campaign promises following the election and warned she would vote for approval of the Angel
Baseball item, a matter in his opinion, was a stadium give -away. Calling for a point of order,
Council Member Kring responded to and countered each allegation made by Mr. Fitzgerald.
Brian Chuchua objected to approval of the Angel Baseball item, remarking for the last 16 years
the Angels organization paid the city $2 for every ticket sold above a certain threshold which
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averaged about $1 million dollars adding if the ticket prices increased, the amount given to the
city should be increased by that same percentage. He also opposed leasing the stadium 50+
acres for $1 /year to allow Angels Baseball to develop the land around them as they see fit,
stating the city should put the property out to public bid to get the best price.
James Robert Reade talked of the need to form a preventive police patrol to limit opportunities
for misconduct by having an increased law enforcement presence as a deterrent in areas of
expected crime. He cited specific instances where this program could be used.
Mark Merhav, Angel Baseball Foundation, reported that through the Foundation, nearly $4
million had been donated to local charities affecting thousands of youths in this community, an
effort that began once Arte Moreno took control of Angels Baseball. He added that baseball
players consistently used the Foundation as a conduit for their own charitable causes which
added support for local needs pointing out the Foundation looked forward to continuing its
mission of improving the lives of countless children and families in Anaheim for years to come.
Michael Baker praised Angels Baseball and the relationship they had with the Boys and Girls
Club, remarking he could not thank them enough for their contributions and physical help over
the years.
John Dunton addressed the positive changes occurring in Anaheim, emphasizing there was a
different vibe coming from Anna Driven as seen during the recent cleanup event attended by
city leaders and Interim Chief Raul Quezada and his command staff. He also recognized
Angels Baseball and the importance of their support to the Boys and Girls Club making a real
impact to the disadvantaged youths of the community.
Mark Daniels, resident, urged council to table Item No. 14 related to Angels Baseball in order to
receive public input and to allow time to work out an agreement acceptable to all.
Laurel Ehrichs introduced herself as a political science major attending Fullerton College who
would be observing council and/or school board meetings until the end of the year and would
appreciate an opportunity to interview council members at some point in time.
Fernando Negrete, Eli Home, offered a correction and clarification about his previous comments
made on August 13 which he stated disparaging comments had been made by the chair of
the Community Services Board towards Eli Home. He emphasized those comments were made
by vice -chair Grant Henniger and he apologized for the error. He further refuted specific
comments made by Mr. Henniger remarking that Eli Home's submittal for ESCRI funding had
been retracted until such time it was felt the organization would be treated fairly and on the
same basis as any other non - profit entity.
Kevin Hogan, resident, urged the city to reconsider the framework that would define the city's
negotiations with the Angels, remarking it was not a good deal as the city would give up naming
rights, raise the threshold for collecting ticket revenue and give Angels Baseball owner acres of
some of the most valuable land in the city for the next 66 years to develop and collect revenues
during that time. He refuted the rationale that baseball brought $213 million in revenue to the
city, stating there was no correlation between sports facility construction and economic
development and that rather than bringing in new dollars, sports fans spent leisure dollars they
would have spent elsewhere inside the stadium.
City Council Minutes of September 3, 2013
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Amin David, addressing Item No. 14, requested council postpone the matter to the next meeting
to allow the public a chance to review an issue that had so much importance to the citizens of
Anaheim. He added although the agreements were considered non - binding, this stance
became a baseline for negotiations and locked the city into a position not in the best interests of
the community.
Dorothy Rose, Orange County Symphony, discussed the new music education program offered
to Anaheim city schools, the after school instrument instruction and included in this program
was an invitation to those students to attend the symphony orchestra concert as part of their
study curriculum. She invited the community to participate by donating unused instruments to
make them available to the children as part of this program.
John Baca, speaking on behalf of IBEW, fully supported the Angels organization remarking they
were good employers who treated their personnel well, many of whom lived and raised families
in Anaheim.
Joanne Sosa, Take Back Anaheim, opposed Item No. 14, a deal, she remarked, that would give
Angels Baseball total naming rights and a 66 year lease of 50 acres of stadium land for $1 a
year, property valued at $300 million which belonged to the people of Anaheim. In addition,
Angels Baseball would retain all of the revenues generated from any development on those
acres for those 66 years. She believed the proposed land lease would take away the city's right
to negotiate the best development deal for the city on one of the last remaining parcels owned
by the people and cautioned that Take Back Anaheim was committed to informing residents
about the impacts of this decision.
Vitoria de Gomez spoke in opposition to Item No. 14, stating council was giving away the wealth
of the city through these types of agreements.
Ross McCune, Anaheim Chamber of Commerce, spoke in favor of retaining Angels Baseball in
Anaheim as a respected, integral part of the community and of the value the organization had to
the city, not only in terms of their charitable work but in the direct and indirect economic benefits
totaling more than $200 million the city received annually via their presence. He emphasized
the presence of a major league ball team in Anaheim positioned the city as a global destination
along with the other entertainment and sporting venues and their loss would be a blow to the
economy and the branding of Anaheim. The Chambers supported approval of the proposed
memorandum of understandings and the lease amendment allowing for additional time for
productive negotiations with the Angels.
Jay Buress, Anaheim /Orange County Visitors & Convention Bureau, supported approval of Item
No. 14, remarking a national and international image helped the sale of tourism in Anaheim and
offered a world class destination infrastructure. He emphasized there were only 28 cities with a
major league baseball team and the benefits reflected civic pride, identification, and a real
economic impact with 81 home games representing an opportunity to package room nights,
impact restaurants and other retail, plus other entertainment options. It also afforded the
tourism industry a focus on growing international visitors with baseball as a destination
expanding to 100 million visitors by year 2021. He added there were baseball fans in Asia,
Australia and Latin American who wanted to see baseball in the United States and this afforded
the industry an opportunity to go after this market aggressively.
City Council Minutes of September 3, 2013
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Jason Castro, student, opposed Item No. 14, remarking the Angel Stadium parcel was worth
millions of dollars to the citizens of Anaheim and should not be given away to Angels Baseball
for $1 a year rent. Instead, he stated, council should be looking to improve libraries and parks
and helping the homeless.
Chris Synder, Catch Restaurant, remarked his restaurant business had benefited from its close
proximity to Angels Baseball and without them many jobs would be lost. He urged council to
carefully consider their actions.
Joe Manzella, Catch Restaurant owner, remarked he had a major interest in Angels Baseball as
it generated 40 percent of his business that was trackable, adding the restaurant could not be
sustained without Angels Baseball. He stated the city's negotiations efforts saw the RAMs
leave and the Clippers and the Kings fall through, and he worried that the Angels organization
would follow that same path.
David Zenger, resident, addressing Item No. 14, did not understand the rationale for outlining
negotiating deal points ahead of discussions. Extending the Angels Baseball lease to 2019, he
remarked, offered them the leverage to determine whether leaving was advantageous or not
and in the meantime gave them entitlement to over 50 acres of prime real estate tax free and an
opportunity to make money through the sale of this site. He emphasized this type of negotiation
did not benefit the citizens of Anaheim.
Steve McKay, Anaheim Canyon Community Coalition, remarked the memorandum of
understandings detailed in Item No. 14 on the agenda, gave the city a bad starting point in that
the termination clause offered no real benefit to the city, and giving up naming rights and
property entitlements for 66 years should be part of later discussions not an upfront deal. He
urged retention of the Angels organization requesting council slow down, take a closer look at
the issues and the public's concerns, and to make sure a top negotiator was on the city's side.
Donna Acevedo, resident, strongly opposed approval of Item No. 14, remarking it was just
another giveaway of Anaheim's potential revenues and citizens would continue to be guardians
of Anaheim's revenues, and warning about the impacts of such actions.
An unidentified woman thanked police officers for their efforts in West Anaheim. She also urged
council to take their time before making a decision on Item No. 14.
Jose Moreno asked council to take the time in advance of negotiations to analyze the deal and
allow the public time to make sure any potential agreement worked for the citizens as well.
Greg Diamond urged council to hold over the Angels Baseball item until September 24 as the
current framework could potentially give away one of Anaheim's major revenue sources for the
General Fund. Extending the lease could give Angels Baseball the opportunity to get out of the
agreement and maximize profits through the development and /or sale of stadium property. He
emphasized the public should have been given the opportunity to understand the impacts
associated with Item No. 14 before any action was taken.
Cynthia Ward, resident, remarked approval of Item No. 14 on the agenda would give away any
advantage the city had and would actually be negotiating against the city's best interest.
City Council Minutes of September 3, 2013
Page 9 of 24
CONSENT CALENDAR: Council Member Brandman removed Item No. 9 from the consent
calendar for further discussion and Council Member Kring pulled Item No. 10. Mayor Tait
declared a potential conflict of interest on Item No. 8 as his firm and worked with ARB and J. De
Sigio Construction adding he would record an abstention. 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 Mayor
Pro Tern Eastman. Roll Call Vote: Ayes — 5: (Chairman Tait and Council Members: Brandman,
Eastman, Kring and Murray.) Noes — 0. Motion Carried.
B105 1. Receive and file the Library Board report dated August 15, 2013, minutes of the
Community Services Board meeting of June 13, 2013 and minutes of the Cultural and
Heritage Commission meeting of June 20, 2013.
2. Ratify a change order to the existing master agreement with Galls LLC, increasing the
D180 total amount to $180,000 to cover the additional uniforms and services required by the
Police Department through August 2013, accept the bids of Galls, LLC, and Uniform
Headquarters, Inc., in an aggregate amount not to exceed $215,297 (including tax), for
uniforms and accessories for the Police Department, as required, 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 # 7949.
3. Waive Council Policy 4.1 and approve the First Amendment to Agreement with
AGR- 6446.A.1 Community Services Program, Inc., in an amount not to exceed $150,000, for consulting
services related to the Gang Reduction, Intervention and Prevention program.
4. Approve the 2014 Health and Welfare Plan Rates and authorize the Human Resources
D154 Director to execute all required provider agreements on behalf of the City.
5. Approve the Equitable Sharing Agreement and Certification Report with the Federal
D160 Government for the Police Department's equitable sharing activity of the Department of
Justice funds and U.S. Department of Treasury funds for the fiscal period of July 1, 2012
to June 30, 2013.
Item No. 5 was removed from the agenda at the request of staff.
AGR -7802 6 Approve an agreement with Orange Coast Title Company, in the estimated annual
expenditure range of $15,000 to $30,000, for on -call title report services.
AGR -7803 7. Approve and authorize the City Manager to execute an agreement with The Planning
Center, in an amount not to exceed $299,625, to prepare an Environmental Impact
Report for the Anaheim Canyon Specific Plan.
AGR- 6529.A 8 Approve and authorize the Public Utilities General Manager to execute and take the
AGR -7804 necessary actions to implement and administer a Master Construction Agreement (MCA)
AGR- 6532.A with fifteen (15) contractors, and such other contractors pre - qualified by the City in the
AGR- 3025.0 future, for water system construction, repair, maintenance and immediate response
AGR- 4780.B services to support the Public Utilities Department, authorize de minimis changes that do
AGR -7805 not substantially change the terms and conditions of the MCAs, so long as such changes
AGR -7806 are determined to be de minimis by the City Attorney and determine that the projects to
AGR- 6535.A be performed under the MCAs shall be categorically exempt under the California
AGR -7807
AGR - 3070.6, AGR- 3320.0
AGR -7808, AGR- 3052.0
AGR- 6536.A, AGR -7809
City Council Minutes of September 3, 2013
Page 10 of 24
Environmental Quality Act (CEQA), Sections 15301, 15302, 15303, and/or 15304 of Title
14 of the California Code of Regulations (ARB, Inc., Arnaz Engineering Contractors, Inc.,
David T. Wasden, Inc., General Pump Company, Inc., J. De Sigio Construction, Inc.,
Kana Pipeline, Inc., Kaveh Engineering & Construction, Inc., MNR Construction, Inc.,
Mladen Buntich Construction Co., Inc., Paulus Engineering, Inc., Steve Bubalo
Construction Co., T.E. Roberts, Inc., Tamang Electric, Inc., W.A. Rasic Construction Co.,
Inc., Weber Water Resources).
Mayor Tait abstained: Roll Call Vote: Ayes — 4: Mayor Pro Tem Eastman and Council
Members: Brandman, Kring and Murray.) Noes — 0. Abstain — 1: Mayor Tait. Motion to approve
carried.
11. ORDINANCE NO. 6286 (ADOPTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending various Chapters of Title 18 of the Anaheim Municipal Code [and
C280 determine that action is exempt pursuant to California Environmental Quality Act,
Guideline Section 15061(b)(3) (no possibility of environmental effect)] (Zoning Code
Amendment No. 2013 - 00109) (DEV2013- 00050) (Introduced at Council Meeting of
August 20, 2013, Item No. 16).
END OF CONSENT CALENDAR:
9. Approve and authorize the Public Utilities General Manager to execute and take the
necessary actions to implement and administer the Renewable Power Purchase and
AGR -7810 Sale Agreement and the Interconnection Agreement, and any other related documents,
AGR - 7810.1 with Anaheim Energy LLC and certify that the Purchase and Sale Agreement complies
with the California Energy Commission's greenhouse gases Emission Performance
Standard as enumerated in Senate Bill 1368.
City Manager Marcie Edwards reported this item was for the purchase of an innovative
renewable energy resource and was an effort to provide a third of the power supply from
renewable resources as required by the State. She added staff recommended council approve
this power purchase agreement with Anaheim Energy LLC which took waste and converted it to
energy and counted towards renewable energy requirements.
Dukku Lee, Acting General Manager, stated two agreements were for council's consideration
that would benefit Anaheim residents and businesses. The first was a power sale agreement
and the second was an interconnection agreement that would allow Anaheim Energy to begin
development of a small generator that accepted organic waste, such as food products which
accelerated its decomposition into a gas, to ultimately be used to fuel a generator. This project
would produce 4.5 megawatts of energy or enough power to supply 900 homes, reduced the
amount of waste by 186 tons per day or over 67,000 tons of waste annually and was applied to
the city's state diversion goal of 75 percent by year 2020 as defined in AB 341. He explained
the project also created new jobs in the city, both construction and the on -going operation of the
facility. He added it was located in an industrial area and near an existing waste collection
facility so it was not impacting residents with noise and odor and the emissions would be
permitted through the South Coast Air Quality Management District and in full compliance with
those air quality requirements. By keeping the generation local, he noted, Anaheim was able to
reduce its cost of transmitting power out of state into Anaheim and those cost savings helped
keep rates lower than surrounding cities. In addition, it helped Anaheim meet the state mandate
of 33 percent renewable energy by the year 2020. For the power sale agreement, he noted, the
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city only paid for the energy delivered to Anaheim so it did not have the risk of stranded capital
affecting residents. The project was scheduled to come on line in early 2016 and Anaheim
Energy was in the process of applying for federal tax.
Council Member Brandman appreciated Public Utilities staff for their consistent innovative
projects and in meeting the state's requirements for renewable energy. Council Member Murray
moved to approve Item No. 9, seconded by Council Member Brandman. Roll Call Vote: Ayes —
5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0.
Motion Carried.
R100 10. RESOLUTION NO. 2013 -135 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM to become a Healthy Eating Active Living (HEAL) city.
Council Member Kring remarked she had asked for this item to be considered on the agenda as
she was supportive of a program promoting healthy eating habits. She indicated the area
identified by this program included Edison Park, Edison Elementary School and Sycamore
Junior High and educated families on how to eat better and promoting walking as well as
exercises in the classrooms with positive results from those involved. She thanked John
Gustaferro for suggesting this program and moved to approve RESOLUTION NO. 2013 -135 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM to become a Healthy
Eating Active Living (HEAL) city, seconded by Council Member Murray. Roll Call Vote: Ayes —
5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0.
Motion Carried.
12. Appoint a representative to the Public Utilities Board to complete an unexpired term
8105 ending June 30, 2014.
Public Utilities Board
Appointment: Lon Cahill (June 30, 2014)
(unscheduled vacancy of Dave Morgan)
The following nominees were offered for a position on the Public Utilities Board: Council
Member Brandman nominated Lon Cahill, Council Member Kring nominated Abdulmageed
Abdulrahman and Mayor Tait nominated John Leos. The Vote for Lon Cahill reflected: Ayes —
3:(Council Members Brandman, Eastman and Murray.) Abstention — 2: (Mayor Tait and Council
Member Kring). The Vote for A. Abdulrahman reflected: Ayes — 1: Council Member Kring.
Abstentions — 4: (Mayor Tait and Council Members Brandman, Eastman and Murray). The Vote
for John Leos reflected Ayes — 2: (Mayor Tait and Council Member Kring). Abstentions — 3:
(Mayor Pro Tern Eastman and Council Members Brandman and Murray).
Both Mayor Tait and Council Member Kring stated they would support Lon Cahill's appointment
and Mr. Cahill was unanimously appointed to the Public Utilities Board.
13. Receive and file the report summarizing the Anaheim Police Department Community
D160 Outreach and Operational Enhancements.
Interim Police Chief Raul Quezada introduced his command staff: Captain Bob Conklin, Captain
Mark Cyprian, Lieutenant Steve Martin and Interim Deputy Police Chief, Julian Harvey. Chief
Quezada began his presentation with an informative video on the Cops4Kids Program
City Council Minutes of September 3, 2013
Page 12 of 24
explaining it was truly an investment in the direction the Department was going. He indicated
the video had been taken at Betsy Ross Elementary School on the second day of the academy
when the kids involved were able to see the police helicopter land, meet Anaheim's mounted
units as well and view a SWAT demonstration with all the excitement those activities generated.
He added it was the only program in the nation in which officers interacted with elementary
school students, learning responsibility, respect, discipline, team building and trustworthiness,
values that they would use in their daily life. Those 309 students, he added, attended and
successfully graduated the academy and the goal was to see them continue and advance
through Jr. Cadets, to Explorers, to Cadets and potentially consider law enforcement as a
career.
OPERATIONAL ENHANCEMENTS: Chief Quezada described the following operational
enhancements taking place in the Department. In May of this year, the department
implemented digital audio recorders to be worn with uniforms, a mandatory policy of the
department. The next technological step under consideration was the use of video recorders
with staff in the process of trying out various devices with the goal of using them on some patrol
officers at the start and eventually to augment and replace audio recorders. He explained the
equipment was expensive for both the video recording devices and for the storage of the data.
Since last summer, he noted, the K9 vehicles were modified to prevent the dogs from accessing
the front seat and now they could only be released through the rear doors. Recognizing the
need to work with the community on a 1:1 basis, the department now emphasized that when
time permitted and patrol officers were not responding to calls, they leave their units and interact
within neighborhoods and businesses answering questions or providing assistance. In addition,
there would be increased foot patrols and school safety patrols.
To address the issue raised by many residents and others in the community about reassigning
officers who had an impact on a specific neighborhood, Chief Quezada remarked that impact
was something he constantly evaluated, and he had moved personnel from one area to another
because of it. Another issue raised was the lack of portable privacy barriers to cover crime
victims or accident victims and since last summer, he noted, those barriers had been purchased
and were now part of the crime scene technical vehicles. Because of an opinion released by
the state attorney general, Chief Quezada indicated the department was evaluating and
modifying a current policy in recognition that many people in this community were fearful of
immigration and believed erroneously local police officers worked as federal agents. With that
in mind, staff was making modifications to policies to ease the tension in the community
encouraging citizens to report crimes and come forward without fear of their immigration status.
Along that same line, he added, was the concern about vehicle impounds and the current policy
now addressed those concerns; i.e., for DUI checkpoints, if a vehicle stopped was unlicensed, it
was parked on the side and officers asked for permission to allow the registered owner or a
licensed driver to come and retrieve the car. He indicated the policy for straight traffic stops
would also mirror this procedure.
PUBLICATIONS AND WEBSITE OUTREACH: Currently, the chief remarked, the Chief's
Advisory Board was comprised of school board members, business owners, and community
members and he was taking that framework one step further and putting together a
Neighborhood Advisory Board consisting of community members citywide, including the 12
priority neighborhoods with the goal of having those representatives get direct access to the
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chief's office as well as the command staff so that the department could work together and listen
to the concerns coming directly from the street and resolve issues immediately. He added the
first meeting of the neighborhood advisory board was scheduled for November.
In the past, the Orange County District Attorney's Office made available their investigative
reports involving police officers online, however, Chief Quezada pointed out, that information in
the form of letters would now be hand - delivered to the family members of those involved in
incidents related to the Anaheim Police Department, in Spanish at the family's request, as well
as posted on their website. He indicated the Chief's Advisory Board was now on the
department's website as well as part of the outreach efforts. Complaint forms were easily
accessible online and at the front counter and each of the chief's advisory board members had
a phone extension and their own email address, should an individual prefer to submit a
complaint to Internal Affairs via advisory board members. Another outreach effort was the
development of a brochure that explained exactly what a police officer could do when initiating
contact whether it be a traffic or pedestrian stop and staff was working with the ACLU on
language for a flyer that would give direction as to what an officer should or should not be doing,
along with information on the complaint form process. That flyer should be available in
November both in English and Spanish. Other areas of interest available on the department
website was the Police Officer Policy Manual and a community calendar that included the
various activities and events scheduled by the department. He reported the website had taken
on a different look and was more user - friendly and accessible.
In partnership with the Community Services Department, Chief Quezada stated a map had been
developed to address the inability to locate resources and services within certain
neighborhoods. This map identified those resources available in specific areas of the city with
addresses, phone numbers and links to each individual website. In addition, the department
was moving forward with an app for Smartphones, as well to access the community resources
map.
COMMUNITY OUTREACH PROGRAMS: The mobile police program was condensed to an
eight week educational program offering information about the police department, the services
provided as well as specific information for parents on crime prevention and safety. This
program was taken directly to the neighborhoods to make access to information available to all.
The chief indicated there were 167 neighborhood watch programs throughout the city, each with
their respective block captains and crime prevention specialists that worked with various
neighborhoods to insure they were aware of what they should and should not be doing when
witnessing a crime. Another program, the Public Safety Career Path, was created as a result of
a two day workshop last year along with the Olin Report recommending a career path for
students looking to go into law enforcement. Beginning this fall, he stated, the program would
be introduced to Orangeview and Dale Schools as a small after - school program and in the fall of
2014, additional curriculum could be moved into the same schools with the purpose of getting
kids interested in law enforcement early.
The Coffee with a Cop Program offered an opportunity to sit down and have a dialogue with an
officer and to date, he reported, 35 meetings had been scheduled. Counseling was also now
available for family and witnesses as a component of the duties of the Lieutenant overseeing
crimes; the Diversion Program offered juveniles the opportunity to seek some type of program in
lieu of prosecution with the Department partnering with GOALS and Community Services
Department for counseling and community service. Another outreach program was the Mobile
Recreation Program run by Cops4Kids instructors as well as Explorers that go into
City Council Minutes of September 3, 2013
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neighborhoods and offer recreational activities with officers interacting with parents and
Explorers interacting with the neighborhood kids. Thanking council for funding additional
officers in this last budget cycle, Chief Quezada remarked the Community Policing Team and
the GRIP Program now had an additional 13 officers which enabled expanding GRIP to 12
schools.
Before ending his presentation, Chief Quezada responded to general questions that were often
raised by residents. Regarding illegal parking in alleys, the chief indicated the goal was not to
cite vehicles; it was to clear alleys for emergency vehicle access. Regarding ICE agents in
detention facilities, Chief Quezada stated there had not been an ICE agent in the City for almost
ten years. Regarding officer response units, he indicated there was generally one officer per
unit and if there was a high priority call, there might be five to seven officers on scene which
gave the appearance of a lot of vehicles involved, pointing out that the supervisor on scene
would clear these units as quickly as possible and return them back into service. Regarding
gang injunctions, currently the city has three injunctions and feedback received relative to the
first gang injunction filed had seen a 40 percent decrease in calls for service in that
geographical area. He added this was a tool the department used and had already seen its
benefits with that first injunction. Regarding community partnerships, the chief remarked this
was an area the department encouraged everyone to get involved in, to go on the website and
say what officers were doing right and what they were doing wrong and offer solutions as to how
citizens could work together to reduce crime and form stronger partnerships.
Each of the council members expressed their appreciation to Chief Quezada for listening to the
community and addressing their needs and placing an emphasis on children who grow up
seeing law enforcement as an ally.
Council Member Kring moved to receive and file the report, seconded by Council Member
Murray. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman,
Kring and Murray.) Noes — 0. Motion carried.
14. Discussion and action:
D124 RESOLUTION NO. 2013 -136 A RESOLUTION OF THE CITY COUNCIL OF
AGR- 1433.0.6 THE CITY OF ANAHEIM approving Memoranda of Understanding relating to (1) an
AGR- 1433.IV Amended and Restated Stadium Lease with Angels Baseball LP and (2) a Ground
AGR - 1433.1 Lease for the Stadium District with Pacific Coast Investors LLC, authorizing the City
Manager to execute said Memoranda of Understanding and determining said action is
exempt from the California Environmental Quality Act pursuant to CEQA Guidelines
Sections 15060, 15061 and 15301.
RESOLUTION NO. 2013 -137 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the First Amendment to Amended and Restated
Lease Agreement by and between the City of Anaheim and Angels Baseball LP,
authorizing the City Manager to execute said agreement and determining said action is
exempt from the California Environmental Quality Act pursuant to CEQA Guidelines
Sections 15060, 15061 and 15301.
City Manager Marcie Edwards introduced the item, stating council was requested to approve
three documents; the first was a memorandum of understanding (MOU) between Angels
Baseball and the city to establish a nonbinding framework to guide future negotiations with
City Council Minutes of September 3, 2013
Page 15 of 24
respect to items such as the Angels lease term and stadium repairs, entitled the Stadium Lease
Memorandum of Understanding. The second item, entitled Ground Lease Memorandum of
Understanding, described a non - binding framework of potential terms for leasing and
developing the land around the stadium and both MOUs included a 30 day termination clause
that could be initiated by either party. The third item was a binding lease amendment allowing
the Angels to extend the termination period of their lease by 2.5 years to 2016 in an effort to
provide additional time to complete the needed negotiations. These actions were being made to
spur the negotiation process making it clear Anaheim was a public agency and that public input
was critical to the process. Staff anticipated hearing a wide variety of opinions from fan and
residents alike as Angels Baseball had been a part of the history, culture and economy of the
city for 47 years. To that end an email box had been established as well as a voice mail box
making it easier to leave comments ( baseball(cDanaheim.net ) and (714- 655 - 0000)/
Tom Morton, Convention, Sports & Entertainment Director, introduced Charles Black of CB
Urban Development. He shared Mr. Black had decades of experience in the public /private
sector in real estate projects with special emphasis on public /private partnerships and from
2002 to 2006, he was the president of the San Diego Padres baseball organization and leader
of the development team for Petco Park, a $300 million ball park surrounded by a 26 -block
ballpark district, recognized as one of the most successful redevelopment projects in the
country.
Providing background on the Angel Baseball agreement, Mr. Morton reported the city entered
into an agreement with Disney Sports in 1996 for the Angels baseball organization to play
baseball in Anaheim through 2029. However, he pointed out, in that agreement there was a
termination right which allowed the team to terminate the agreement after the 2016 baseball
season. This entitlement led to preliminary discussions about whether and under what
conditions the Angel organization would remain in Anaheim. He added, for those preliminary
discussions to develop into meaningful negotiations, staff was requesting approval of two
memorandums of understanding and one lease amendment to be discussed in detail by Charles
Black.
Mr. Black restated the three actions under consideration by the council, stressing that
everything else would continue to be on the table until definitive agreements were reached
which could be consistent, somewhat consistent or vary from these MOU's. He reiterated the
MOU's did not restrict the parties from negotiating issues outside the MOUs and allowed the city
to explore a broad range of economic and non - economic opportunities for the people of
Anaheim. He added the non - binding MOU formats allowed council to provide direction to the
negotiation team on how to deal with some of the issues and in this specific context, staff asked
for guidance on whether the Ground Lease MOU should be part of the mix because it did solve
a specific problem in these negotiations.
Referring to the Stadium Lease Memorandum of Understanding, Mr. Black stated it established
the framework for a new stadium lease with the goal of retaining the Angels until 2036 and
beyond to 2057. Under that MOU, the Angels assumed responsibility for all maintenance,
repairs and capital improvements, which were estimated to cost approximately $130 to $150
million over the next 20 years and the Angels would retain control of the team name, however,
he pointed out, this was an element that would be negotiated as it was of considerable value to
the Angels organization and should be discussed. In addition, the city would continue to receive
threshold ticket and sales revenue. Mayor Tait stated Mr. Black indicated retaining control of
the Angels name was still on the table, however, it appeared to Mayor Tait, that should this
City Council Minutes of September 3, 2013
Page 16 of 24
MOU be approved tonight; the naming rights would be held by the Angels. Mr. Black responded
that was not the case, Angels Baseball had expressed that elimination of the suffix "of Anaheim"
to their name was an important issue to them so the city would put that on the table as a
negotiation point and was not committing to make that change. Mayor Tait inquired why it was
included in the memorandum of understanding with Mr. Black replying the public had a right to
know and it was important to get as much input as possible before going into negotiations.
Mayor Tait inquired if council approved this MOU tonight, what would that tell him about the
council's position with Mr. Black responding that depending on how the discussion and vote on
this matter played out, approval of this MOU would tell him that under certain circumstances
council would be willing to eliminate "of Anaheim" from the Angels name, but, he clarified, it
would not direct him or staff to do it.
Mr. Black outlined the benefits the city would receive if the MOU were approved; i.e., it would be
relieved from all responsibility for stadium maintenance and repair and any capital
improvements, which currently Anaheim contributed $600,000 annually to stadium reserves. He
added, nineteen hundred permanent and part -time jobs associated with Angels operations
would be preserved, the city would retain ownership of the stadium land and would continue to
receive sales and property taxes, a share of threshold ticket revenues and the city would
maintain the desirability of Anaheim as a convention and meeting venue with annual and
indirect benefits of $204 to $213 million dollars. Mr. Black remarked that Convention, Sports
and Leisure International (CS &L), a leading advisory and planning firm providing economic
analysis on venues across the country, concluded that Angels Baseball brought $204 million of
direct and indirect spending to the city's economy. He emphasized this study specifically
excluded numbers that were derived from the substitution effect (that is, dollars spent on Angel
games were substituted for dollars spent on other entertainment venues) and were net new
numbers.
The second requested action, Mr. Black stated, was the Ground Lease Memorandum of
Understanding, which again established a framework for negotiating a lease with Pacific Coast
Investors LLC (PCI), an affiliate of the Angels, and included the land surrounding the baseball
park. PCI would lease the Stadium District at a nominal rent for a minimum of 66 years, a figure
necessary to make the lease financeable so that development could actually occur. There
would also be a development agreement that the city would consider which would allow PCI to
develop under the existing entitlements of the Platinum Triangle Master Land Use Plan and
Anaheim would retain authority to grant final project approvals consistent with any other project
and all required environmental approvals would be performed just like any other project before
council. This structure, he explained, would create a way for the Angels to assume
maintenance, repair and capital improvements for a 47 year old stadium within the Platinum
Triangle subject to the Ground Lease MOU and Platinum Triangle entitlements of about 5,200
dwelling units, 3.1 million square feet of commercial and 3.1 million square feet of office space.
He added for 17 years the city tried to develop this 50 acre portion referred to as Sportstown
without success; it was heavily encumbered by parking spaces totaling 14,821 and of that,
12,500 parking spaces belonged to the Angels. He pointed out the only way to get full
development out of this property was through an agreement with Angels Baseball because they
could manage the handling of that parking space encumbrance through complementary uses
such as those used in Petco Park in San Diego. In addition, he pointed out, development of this
property would require about $65 million of infrastructure investment. Mayor Tait inquired if
San Diego provided the land for the ball park with Mr. Black responding the ball park property
and all land immediately adjacent to the ball park, another 12 acres, was provided by San
Diego, adding that San Diego spent about $150 million on land and infrastructure in addition to
City Council Minutes of September 3, 2013
Page 17 of 24
what they invested in the ballpark. He clarified that San Diego did not "give" the land but under
the structure of a deal, contributed money to the ballpark and out of it came a 30 percent
ownership stake in the ballpark, close to 20 acres in total.
Continuing the presentation, Mr. Black indicated staff suggested the negotiation framework
include a nominal rent rather than a market rent as there were some rough equivalents between
the value of the land and the maintenance, repair and capital improvement obligation that the
Angels would undertake, estimated to be from $130 to $150 million. In addition, staff believed
the best outcome for Anaheim citizens would result from giving the Angels organization an
incentive to develop the entire stadium district with high - valued, mixed uses with the stadium as
an anchor. He reported if the property was built -out according to the Platinum Triangle Master
Land Use Plan, it would produce about $3.5 billion dollars of improvements, driving job creation
and substantial economic benefits that could be in excess of $100 to $200 million annually for
that scale of a development, although he pointed out, an estimate of that benefit had not yet
been calculated.
Mayor Tait remarked when Anaheim was trying to attract an NBA franchise, council approved a
3 rd amendment to an agreement with Anaheim Arena Management and included as part of that
agreement was a ground lease of a city owned parcel adjacent to the Honda Center, another
fully encumbered property used for parking for the Honda Center and with that approval, the
consideration for the ground lease was the payment of development, operation and
maintenance cost of that area and an extension of the Anaheim Arena Management term for ten
more years through 2033.
Continuing the presentation, Mr. Black indicated the third requested council action was the
lease agreement amendment which modified the Angels 2016 termination right so that it could
be exercised no later than October 16, 2019. This termination right that was negotiated in 1996
allowed the Angels, without cause, to terminate the lease provided they give the city 12 months'
notice and that it occurred between October 15, 2016 and February 15, 2017. Mayor Tait asked
why that amendment was binding and why it was not offered in the form of a memorandum of
understanding as the other leases were. Mr. Black responded the Angel organization requested
it be binding and staff identified it as an important component of the negotiation process. In
providing an extension, he emphasized, the pressure was off both parties and thoughtful
negotiations could take place for a complex agreement in those three years. He added the
Angels organization was likely to spend tens of millions of dollars improving a city -owned asset
and every dollar spent created additional leverage for Anaheim. Discussing whether the Angels
would consider picking up and moving elsewhere, Mr. Black pointed out the Angels did have
alternatives contrary to some public opinion. In reality, Angel territory under the Major League
Baseball constitution included Orange, Los Angeles and Ventura counties, an area of about 4.3
million acres, and the prospect of finding a 16 acre site with associated parking and
infrastructure was probable. He understood that parking was a concern; however in urban
areas such as in downtown Los Angeles, he pointed out there were half a dozen potential sites
that had enough parking spaces within a 20 minute walk that could suffice and other cities such
as Irvine and the City of Industry offered options as well. He stated the owner, Arte Moreno,
had made it clear in initial discussion that he had both the resources and a willingness to build
his own stadium and would not require public subsidies to build improvements. To place this in
context, Mr. Black explained, the public paid an average of 59 percent of the cost of new major
league baseball facilities, around $300 to $500 million for a modern baseball park. Seattle's
stadium cost $664 million of public funds, Denver around $323 million, Arizona at $443 million
and Washington about $524 million and he emphasized, those cities extended themselves to
City Council Minutes of September 3, 2013
Page 18 of 24
attract and retain major league baseball because those parks had been proven generators of
economic activity with 81 regular season home games drawing millions of fans each season.
He added that baseball more than any other sport celebrated not only the games but the places
in which it was played and with council's direction, staff would figure out a way to bring that
energy to the Platinum Triangle for the benefit of the people of Anaheim.
Mayor Tait remarked the public received notice of this action on Friday afternoon, Labor Day
weekend, and it made more sense to postpone it to the next meeting on September 24 and
allow more time for public input and to consider the impacts of the proposed MOU's and lease
amendment. Mr. Black recommended continuing the receipt of public input via the city's
website or by phone and going with staff's recommendation to move forward and continue to
receive the direct and indirect economic benefits of over $200 million annually. He pointed out
Angels Baseball bolstered the city's tourism marketing efforts, reinforced the Anaheim Brand
and advanced community pride and quality of life and while intangible benefits were difficult to
evaluate they did have value and should be considered as well. The next step in the process,
following approval of the MOU's and the lease amendment, was to immediately begin
discussions with Angels Baseball. Once agreements were reached, they would be made public
well in advance of any council consideration and the public could continue to provide input
during that process. He added staff believed this was the right process to negotiate the next
chapter of Anaheim's 47 year relationship with the Angels with a path to development of the
stadium district and to create substantial economic benefits to the city.
Council Member Murray asked the city attorney to clarify what was binding and what was not
binding in the three actions for council's consideration. City Attorney Michael Houston
responded there were only three aspects of the memorandums of understanding which were
binding on the city, the MOU's expressly stated with the exception of good faith negotiations, all
of the terms were non - binding; that is the parties must negotiate in good faith with Angels
Baseball having knowledge that the city must comply with applicable law and only the final
agreement was binding. One aspect of the obligation to negotiate in good faith was that neither
party was liable for damages for a breach of these agreements and that either party could
terminate discussions within 30 days.
Council Member Murray remarked this was the first day of a framework to begin negotiations
with the Angel organization and it would be done in good faith within the context made public so
the entire community could weigh in on the process. There were pathways to generate new
revenues, to have the Angel organization take care of maintenance, repair and capital
improvements of the stadium estimated at $120 to $150 million, the elimination of the city's
annual payment towards reserves of $600,000 and an estimated economic benefit to the city of
about $200 million. The only binding issue was to extend the opt -out provision of the existing
lease and an amendment that would lead to the best possible agreement for the citizens, the
fans and Angels Baseball. Council Member Kring emphasized that no city services would suffer
as a result of these actions, citing the numerous services citywide that had been enhanced this
year as part of the budget process and stating she would be supporting the proposed actions.
Council Member Brandman confirmed with the consultant and staff the possibilities available for
the Angels organization to find temporary or permanent sites in Los Angeles, Orange and
Ventura counties. Mayor Pro Tern Eastman, expressing her support as well, was confident
these actions provided for the first step in a good faith negotiation which simply defined some of
the terms that could be considered.
City Council Minutes of September 3, 2013
Page 19 of 24
Mayor Tait disagreed remarking by extending the opt -out provision in the current lease, it made
it easier for Angels Baseball to leave Anaheim and if that occurred, it would be traced back to
this action. The Mayor believed he would not act in good faith if he approved the memorandums
of understanding and the lease amendment because he did not agree with the terms within
those documents. Mr. Houston responded that it was clear from the language of the MOU's and
the resolutions, along with discussions held with the parties that formed the interpretation of
those documents, that any future inconsistent terms would not violate the good faith
negotiations because both parties acknowledged those inconsistencies could occur. Mayor Tait
remarked that labor negotiations were often finalized through a memorandum of understanding,
and it was his opinion that such a document was reflective of an agreement and far from the
start of a negotiation process; Mr. Black disagreed with that statement. Mayor Tait added the
loss of the words "of Anaheim" in the team's name was important to the citizens and experts on
the city's side in a past court trial regarding the team's naming rights, put a value of $300 million
to that right. He disagreed with the assumptions behind the CL &S study that Anaheim residents
spent, on average, about $11.40 per person at restaurants, bars, retail, entertainment and
transit in connection with their attendance at games and a non -local baseball fan spent $40 on
average and felt that other economists should weigh in on this matter.
Mayor Tait provided a power -point presentation to make his points clearer and give a historical
perspective on the stadium. In 1995, he remarked, Gene Autry owned the Angels and they had
the use of the stadium and parking lot, about 55 acres of land, and the City received $4 to 5
million per year in rent. In 1996, the city entered into a lease negotiation and Disney bought the
baseball team. Disney put $80 million towards stadium improvements and the City put in $30
million. With that deal, he explained, Disney operated and maintained the stadium, receiving all
revenues generated from that operation, all revenues from the team naming rights and the use
of the parking lot along with all parking revenues. The lease was for 33 years; however, at the
team's discretion they could terminate the lease after 20 years, or year 2016. The City received
$2 for every seat sold above 2.5 million which last year was about $500,000 and a portion or the
parking revenues ranging from $100,000 to $200,000. In addition the city received two platinum
suites, which Mayor Tait believed should not have been included in the agreement as it was
inconsistent with public service. He added there was also a provision that "Anaheim" should be
included in the team's name, and when Arte Moreno who took over the lease from Disney
changed the name to Los Angeles Angels of Anaheim, the city litigated the matter and the court
determined that it did not violate that agreement.
Fast forward to today, he commented, and there were now two memorandums of understanding
and a lease amendment under consideration. One MOU was between Pacific Coast Investors
LLC, owned by Arte Moreno, and the city. Under that MOU, PCI would lease the city's 155
acres for a minimum of 66 years (estimated value of $150 to $380 million); the exclusive right
and sole discretion to transfer the property, full discretion and control of and all rights to
develop, improve or otherwise alter the property, all revenue generated from the property, and
an on top of that it contemplated returning any hotel, property or sales taxes back to PCI.
Mayor Tait added he would have thought a reasonable deal was a joint venture between the city
and Angels Baseball sharing revenue from development of the land which had the potential to
bring in $3.8 billion in revenues, a win /win situation for both entities.
The Mayor explained the second proposed MOU between Angels Baseball and the city of
Anaheim offered the following: The Angels, if they chose, could control all use of the revenue
from the stadium until 2057, the right to terminate and leave in 20 years or 27 years or in 34
years (2050) while the lease for the stadium acreage ran for 66 years. The Angels could also
City Council Minutes of September 3, 2013
Page 20 of 24
have control over and exclusive rights concerning the team name, essentially dropping
"Anaheim" from the name. Additionally, the threshold for receiving ticket sales would be $2 per
seat sold above 3 million seats, which he stated would have been a minimal amount if that
clause was in effect this year. Lastly, he pointed out, the Angels had the right to terminate the
lease for an additional three years.
Paul Emery, Deputy City Manager pointed out the Mayor did not mention the maintenance
needs for a 47 year old facility. Mayor Tait asked what would happen if the Angels terminated
the current lease with Mr. Emery responding the stadium facility might be shuttered, possibly
razed and the city would lose that direct economic benefit of over $100 million a year while the
city transitioned to find a new developer and began a lengthy process. He pointed out those 50
acres had been sitting undeveloped for 17 years versus the current scenario of an organization
driving $100 million in revenues each year. Mayor Tait remarked the current obligation of
Angels Baseball was up to $150 million of maintenance asking what the property would be
appraised at should the Angel organization leave. Mr. Emery responded if 150 acres were
offered in a mass sale, and with the $65 million worth of improvements for the outline of the
specific plan and demolition costs for the facility, the profit would be less than $150 million. If
the city took the time to develop a master plan and make a public investment in the site, he
stated there could be a larger return. Mayor Tait presented a newspaper article from 2007 that
indicated that site had an estimated value of $150 to $380 million with its current entitlements
and Archstone, a developer, at that time indicated they would pay $200 million for that site. In
any event, he stressed, the property was certainly worth more than $1 a year. Mayor Tait also
emphasized that in 1996, the public came out in the hundreds to voice their opinion on the
Angels Baseball agreement and he wanted that same robust public debate before council took
any action at this time.
Mayor Tait moved to continue the proposed lease amendment until the next council meeting on
September 24 which failed for lack of a second. Mayor Tait then moved to continue the two
memorandums of understanding until September 24, 2013 which also failed for lack of a
second.
Council Member Brandman requested staff annotate and respond to the Mayor's presentation
point by point. The City Attorney added, where appropriate, he would like to weigh in on certain
issues.
Mr. Black remarked that one of the problems Mayor Tait had with the 66 year lease was the fact
there was a shorter term for the Stadium Lease and a longer term for the MOU Ground Lease,
adding that it would be one of the issues to address during negotiations as it would relate to
remedies in the event there was a premature termination without justification of the stadium and
how it would impact the Ground Lease MOU. He remarked that issue was not yet addressed
but it would be. Mr. Morton stated this was not unique in the goal of attracting and /or retaining
professional sport franchises and when the city considered attracting an NBA franchise, a 66
year development lease was offered for a property that was also heavily encumbered, as was
the current property, with 12,500 parking spaces necessary to support the stadium. Just to give
it a value, he explained, this burden must be taken into consideration and while the city might
not be able to do much with the site, Pacific Coast Investments could. Mr. Black pointed out
that was consistent with the market place, and while not a reason to do it, U.S. cities often
provided land to major league baseball teams and did not use payment of rent as a mechanism
to enjoy the economic benefits. Mr. Emery added when the framework was developed, staff
looked for opportunities for the Angels franchise to get an appropriate rate of return on this land
City Council Minutes of September 3, 2013
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in an effort to invest in a city facility and extend the term under which they played baseball in
Anaheim.
Mr. Houston commented, with respect to Mayor Tait's next point of concern that PCI had the
exclusive right to transfer the stadium property, he explained that was in consideration of a
broader concept in which the city maintained a reasonable right of approval over any transfer
which would be consistent with the general practice by public agencies to maintain a reasonable
right of approval; it was not an unfettered right. Mr. Black stated that the media had pointed out
that the Angels owner was not a real estate developer and the city had sufficient control to make
sure the property was transferred to an entity with the capacity to develop the site.
With respect to the point that PCI would have full discretion and control of, and all rights to
develop, improve, or otherwise alter the property, Mr. Black pointed out they would have
discretion as to the timing and phasing of the property but development was dictated by the
Platinum Triangle Master Land Use Plan and the negotiating team would anticipate discussing
how those development obligations would be undertaken by the Angels. He emphasized
Anaheim would have the same level of control as with any other development project within the
city limits.
Tom Morton stated in terms of the revenue generated from the stadium district, the development
created a pathway in which the Angels could provide ongoing capital repairs and maintenance
of the stadium, a provision they currently had. In three years, the stadium would be 50 years
old and with the Angels willing to take on that responsibility and expense, they were seeking a
mechanism in which they could generate revenue to invest in a city asset so they could continue
to play baseball in the stadium. Marcie Edwards, City Manager added, she did not feel this was
a fair stipulation that all revenue would go to PCI, because it was an item still open for
discussion.
Michael Houston addressed the final point identified by the Mayor, regarding a provision with
respect to economic assistance. He indicated this was interpreted to mean the city would do
nothing; that it would not do for any party seeking economic assistance from the city; it did not
obligate the city to provide that assistance but identified taxes and fees that could be potentially
developed from a project and following an analysis the city used to determine whether or not
there were economic gaps, the city could consider providing those incentives as part of the
negotiation process.
Referring to Mayor Tait's issues raised on the MOU between Angels Baseball and the city, the
first point made was that the Angels had control of revenues from the stadium until 2057. Mr.
Black stated Angels Baseball had that now. The second issue raised was that the Angels had
the right to terminate the agreement through 20 years and beyond; a point that had been made
earlier and discussed at length. The third point referred to the Angels having absolute control
over the team naming rights with Mr. Black remarking that attributing $300 million to the suffix
"of Anaheim" was misleading in terms of value to the naming rights. The next issue, the ticket
threshold moving to those tickets sold above three million seats, Mr. Morton reported that was
contemplated after the debt service was paid off and the city's capital reserve contribution to
stadium improvements of $600,000 per year ended. The final bullet point extending the opt -out
right to Angels Baseball to 2017, 2018, and 2019 seasons meant the Angel organization would
have to find a substitute venue and Mr. Black did not see that as important in terms of leverage.
Referring to the last concern raised by Mayor Tait, Ms. Edwards remarked staff might consider
adding a summation of the overall economic benefit because Anaheim was more than a city, it
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Page 22 of 24
was a region in and of itself and she felt there was value in the report, regardless of the
numbers given.
Mr. Morton offered the following, an analysis was conducted by CS &L which indicated that $120
million in annual economic activity was directly related to Angels Baseball being played in the
city and should the team exercise their right to leave and relocate, those dollars would pick up
and move with the team. In addition there were 1,900 jobs associated with Angels Baseball
operation, a mature workforce that counted on those jobs to supplement their income and the
intangible benefits of community price, quality of life and the ability to market tourism all
benefited the city and these negotiations offered an opportunity to reinvest in the stadium asset.
Council Member Brandman discussed the impacts of developing the stadium district should the
Angels organization relocate, asking if the planning process for coming up with a master plan for
that site played into the decision to extend the opt -out provision. Mr. Black remarked it was
certainly a part of it and another point they considered was a possible impulsive reaction on the
part of the Angels organization to consider relocation because if they did not opt -out, the right to
do so ended. Mr. Brandman asked staff what the consequences were if the city did not extend
the opt -out provision versus extending it and the Angel organization made the decision to leave
during that three year extension. Mr. Emery responded the CS &L report identified over $100
million annually in direct economic benefits as a result of the Angels playing baseball in
Anaheim, and if they left and nothing happened at that site, those revenues stopped. The city
would have to master plan the site, make any revisions to the specific plan as a result of no
longer having a stadium on site, and could sell it either as a total package and receive a smaller
return or parcel it out for development purposes, which would take longer to accomplish. During
this time frame, the city would be missing out on that direct economic benefit. If the opt -out
were extended, he added, the city would be in a better position and would have had time to
consider their options before losing revenues.
Council Member Murray remarked staff had countered, point by point, those issues raised by
Mayor Tait, and she objected to the news media dissecting those details before council had a
chance to have a discussion on this item, and taking provisions of the negotiation framework out
of context and publicizing them as an agreement. She emphasized the MOU's provided the
framework to come up with a revenue stream in conjunction with a partnership with Angels
Baseball and to make needed improvements to an aging stadium; i.e. the basic structural needs
such as seismic, plumbing and electrical without the use of general funds. She then called for
the item.
Mayor Tait reiterated his objections, remarking the MOU's should be framed as a joint venture in
which the city partnered with Angels Baseball and shared in the profits, the risks and the
benefits. He added he could agree to a name change to California Angels or Southern
California Angels or Orange County Angels, a name reached through the negotiation process
and could not understand the rationale in extending the opt -out provision of the lease.
Discussion continued with Council Member Kring remarking that a public /private partnership
was a good idea and one that should be discussed during negotiations and that Mr. Moreno
signed the documents because he wanted to move forward with those discussions. Ms. Kring
stated she was ready to vote on this matter as well. Mayor Pro Tern Eastman concurred.
Council Member Murray then called for the question and moved to approve RESOLUTION NO.
2013 -136 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving
Memoranda of Understanding relating to (1) an Amended and Restated Stadium Lease with
Angels Baseball LP and (2) a Ground Lease for the Stadium District with Pacific Coast Investors
City Council Minutes of September 3, 2013
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LLC, authorizing the City Manager to execute said Memoranda of Understanding and
determining said action was exempt from the California Environmental Quality Act pursuant to
CEQA Guidelines Sections 15060, 15061 and 15301; and to approve RESOLUTION NO. 2013-
137 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the First
Amendment to Amended and Restated Lease Agreement by and between the City of Anaheim
and Angels Baseball LP, authorizing the City Manager to execute said agreement and
determining said action was exempt from the California Environmental Quality Act pursuant to
CEQA Guidelines Sections 15060, 15061 and 15301 staff's recommendation on the MOU's and
the lease agreement, seconded by Council Member Kring. Mayor Tait responded it was not in
the best interests of the people of Anaheim to go forward with these actions, stating that he
would not vote for approval. Roll Call Vote: Ayes- 4: (Mayor Pro Tern Eastman and Council
Members: Brandman, Kring and Murray.) Noes — 1: Mayor Tait. Motion Carried.
Report on Closed Session Actions:
Michael Houston, City Attorney, reported on Item No. 02 relating to public employee evaluations
for City Clerk and City Treasurer. City Council rated City Clerk, Linda Andal and City Treasurer,
Hank Stern, as distinguished contributors (Vote: 5 -0).
Council Communications:
Mayor Pro Tern Eastman spoke to the success of the Anna Drive cleanup, adding she would be
meeting with the City Manager to see what could be done to help improve the neighborhoods.
She also attended the gun buy -back held at La Palma Park, remarking the Police Department
had taken 100 guns off the street, which exceeded their goal and spurred planning for the next
event in 2014. She announced the following events: the Anaheim Family Justice Foundation
"Toast for Hope" benefit on September 19 at the Anaheim Brewery, and a car wash benefiting
the 13 MEU adoption committee on September 12
Council Member Kring stated she was a 19 year survivor of breast cancer and had been actively
involved in the American Cancer Society and was reaching out to the Susan Komen Foundation
to consider Anaheim as a 1 OK venue for their events. She announced a meeting coming up
with city staff to discuss a potential dog park on September 4th at Stoddard Park, inviting the
public to attend, the Paint Your Heart Out Gala dinner scheduled for September 13 and
thanked her husband, Ron, for his support as they celebrated their 25 anniversary on this date.
Council Member Murray announced that she would be one of the celebrity waiters at the Paint
Your Heart Out Gala to be held at the Anaheim White house, adding that the Boys and Girls
Club "Cork for Kids" fund raiser was also slated for that same date, September 13
Council Member Brandman added he would also be a celebrity waiter at the Gala dinner and
was glad to see this event taking place as the funds raised were put to good use toward home
improvements and encouraged the community to support the 13 MEU car wash on September
12 th
Mayor Tait expressed his disappointment in not receiving a second on his motion to continue
Item No. 14 to the next council meeting in September.
City Council Minutes of September 3, 2013
Page 24 of 24
ADJOURNMENT: With no other business to conduct, Mayor Tait adjourned the September 3,
2013 council meeting at 9:45 P.M.
RPee Ily submitted,
Linda N. Andal, CIVIC
City Clerk