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05/05/2015 ANAHEIM CITY COUNCIL REGULAR MEETING OF MAY 5, 2015 The regular meeting of May 5, 2015 was called to order at 3:03 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on May 1, 2015. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring, Kris Murray, and James Vanderbilt. STAFF PRESENT: Interim City Manager Paul Emery, City Attorney Michael Houston, and City Clerk Linda Andal. WORKSHOP: ECONOMIC DEVELOPMENT FOR COMMUNITY INTEREST John Woodhead, Community Development Executive Director, presented a Power Point video addressing why cities engage in economic development, sharing Anaheim's past successes, and presenting future opportunities to ensure the city retains its thriving economic climate by generating jobs and revenues for the community. Mr. Woodhead defined economic development as focusing on creating a business-friendly environment through the establishment of a general plan and zoning that encourages a healthy mix of residential, industrial, commercial, and recreational uses, the elimination of regulations where possible, streamlined development processes, installation of needed infrastructure, and provision of basic public safety services. The goal of economic development was to induce private development to generate jobs and tax revenues and should provide for community investment. Mr. Woodhead explained that economic development was necessary as neighborhoods do not generate enough tax revenue to provide the services and support they desire and deserve. Mr. Woodhead reviewed current and previous efforts that have helped invest in communities including a business-friendly environment, specific plans, overlay zones, regulatory relief task force implementation, infrastructure financing, and police and fire efforts. Substantial public investment has been made in the Canyon, Center City, and West Anaheim to create significant tax-generating areas. He highlighted Disneyland, the Stadium, Convention Center, Honda Center, ARTIC, the Grand Plaza, and the expansion of the Convention Center. He further discussed the importance of the Anaheim Resort, which provides approximately $45 million net revenue for the City's general fund, which is nearly 20% of all general fund services equivalent to funding 100 police officers, five fire companies, all city parks and libraries, and power generation costs for over 19,000 street lights. Mr. Woodhead shared his approach to successful economic and community development: create and consistently follow a broad comprehensive plan for types of development the City wants to encourage, recognize and honor the fact that this will take time, recognize and potentially address instances in which it makes no sense for the private sector to implement the plan without public sector assistance, and reinvest redevelopment and economic dividends in additional economic development activities and in community investment. Mr. Woodhead commented that the principles guiding the funding of economic development investments must City Council Minutes of May 5,2015 Page 2 of 32 be focused and based on a plan to generate jobs and tax revenues, without jeopardizing current general fund revenue nor the current level of services provided by the general fund, but instead use net new incremental general fund revenues augmented wherever possible with non-general fund sources such as residual funding from the Redevelopment Agency. Mr. Woodhead announced TOT revenue had nearly doubled since the 1996 investment in tourism infrastructure and was expected to rise with 1600 new hotel rooms under construction or in the late stages of pre-development. Missing from the robust hotel environment was the development of four diamond hotels which could not be currently supported without additional public investment. Four diamond hotels in the Resort could triple the revenue per acre over a 3- star development, increase the daily room revenue, and capture a new segment of the hospitality industry, adding that staff would revisit these policies and fiscal incentives. In the Canyon, staff will continue to look for additional revenue generating options through the Canyon Specific Plan, Metrolink station expansion, Pacific Center Specific Plan, pedestrian linkages between Kaiser, the station, and the Pacific Center. Mr. Woodhead shared developments that occurred in the previous year including Brookfield Homes' Domain and Colony Park residential communities, the opening of the Packing House, the largest lease in Orange County with St. Joseph's Healthcare moving in to the former AT&T building on Center Street Promenade bringing nearly 800 employees, and changes in property ownerships. Plans for Center City include adding content to the Packing District and initiating a new wayfinding program and branding effort. In West Anaheim, Westgate is poised to move forward upon State authorization, the City is working with a redevelopment plan for commercial corridors, and collaborating with a wide range of stakeholders for the Beach Boulevard Specific Plan. Mr. Woodhead noted that for the Angel Stadium, Honda Center, and ARTIC, the City could analyze and explore a unique opportunity from the State to create an environmental graphics and messaging platform that could generate significate new revenues, especially if coupled with incremental new revenues as the area. These items could help the City have necessary financial tools to forge lasting public-private partnership with Angels Baseball providing them with a renovated or new home in Anaheim, with a vibrant entertainment district for residents and visitors, and a tax-generating area to rival the Resort from which to fund significant community investment. Mr. Woodhead announced several activities to be pursued in next fiscal year: continued planning efforts in the Canyon and West Anaheim, revitalization of priority neighborhoods, development of affordable housing in general, a request through the budget adoption process to rename the department as the Community and Economic Development Department with some allocation of Redevelopment resources, and establishment with the City Manager's Office of an executive review team to create a consensus vision of Anaheim's economic and physical future and criteria against which major public investment and development activities will be vetted. Mr. Woodhead concluded his presentation by noting that Anaheim has many nice areas that need to grow and become better to truly make Anaheim a great city. Council Member Vanderbilt questioned whether there was a prioritization approach for economic development efforts in the four parts of the City mentioned, with Mr. Woodhead responding the efforts would move forward simultaneously with the Angels negotiations setting its own pace. Mr. Woodhead announced his expectation that the State would soon approve the City's plan for the disposition of assets and that staff was working on a purchase agreement with The LAB for Packing District assets. He noted that planning efforts in West Anaheim and the Canyon were ongoing and would continue and in relation to the Resort, a policy for four- diamond hotels would be brought forward in the near future. In response to a question from City Council Minutes of May 5,2015 Page 3 of 32 Council Member Vanderbilt, Mr. Woodhead stated the proposed policy would consider new construction as well as sub-branded floors or hotels within hotels. Mayor Tait agreed with the first portion of the workshop emphasizing great neighborhoods contributing to a great city through keeping areas clean and safe, eliminating unnecessary regulations, having a well thought-out general plan and zoning code, and investing in infrastructure but differed on the incentive side, stating his belief that incentives do not work and create a competitive disadvantage for those without the subsidy/incentive. He referenced a U.S. Conference of Mayors presentation by the Kaufman Foundation in support of his belief that incentives have been tried and have not worked, and noting the findings that a large immigrant community spurs economic development and stating his view that Anaheim has such a community and any programs should be focused on small businesses and budding entrepreneurs. Mayor Pro Tern Kring expressed her strong support for incentive for economic development and requested information on the timeline for the Westgate Project. Mr. Woodhead expressed his cautious optimism that the City would hear from the State in 60-90 days with approval to transfer properties to the City, at which time the City can dispose of the properties in accordance with the redevelopment plan. He indicated the Westgate site was development- ready and developer Zelman Group was ready to move forward. Council Member Murray appreciated the holistic approach being taken to maximize private resources and requested all options be looked to spur development in the western portion of the city. Mr. Woodhead commented that over$100 million had been spent in West Anaheim over the last decade on infrastructure and groundwork, which could make subsequent development quicker and less expensive but noted that the work in West Anaheim was behind that of the Canyon and Center City. Council Member Vanderbilt asked about public participation, with Mr. Woodhead providing information about the make-up and duties of the City Council as Successor Agency, the Oversight Board of the Successor Agency, the State Department of Finance, and public input on the original redevelopment plan and future dispositions of property. ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 3:40 P.M., Mayor Tait recessed to closed session for the following items: CLOSED SESSION: 1. PUBLIC EMPLOYEE APPOINTMENT (Section 54957 of the California Government Code) Position: City Manager 2. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Chris Chase Position: City Manager City Council Minutes of May 5, 2015 Page 4 of 32 3. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Cristina Talley v. City of Anaheim, Case No. 30-2014-00751921-CU- OE-CJC At 5:18 P.M., Anaheim City Council returned from closed session. INVOCATION: Pastor Brian Dagen, Sunkist Community Church FLAG SALUTE: Council Member Kris Murray PRESENTATIONS:Recognizing the Anaheim Hills Rotary Club on their 30th Anniversary Tracey Clark, Anaheim Hills Rotary Club president, introduced club members including president-elect Tony Siragusa and president-elect-elect Mike Shane, thanked the City Council, club members, and community at large for their support and participation in programs, and announced their signature event, Octoberfest, at the Oak Canyon Nature Center on October 17, 2015. Recognizing the 2014-2015 Girl Scout Gold Award recipients Vikki Shepp, Vice President of fund development for Girl Scouts of Orange County, highlighted the outstanding achievements of five young women from the Anaheim area who earned the Gold Award, the highest achievement in Girl Scouts. In particular, Ms. Shepp recognized Liza Villanueva who earned the Gold Award in 2014 for her project"iDream Express- Imagination, Discovery, Research, Education, Art, Music" which addresses poverty, hunger, illiteracy, and lack of education and resources for children in the Philippines by bringing mobile learning centers to the children. Liza Villanueva thanked the Council on behalf of all Girl Scouts and directed people to her Facebook page to support the iDream Express project. Proclaiming May 2015 as Water Awareness Month and recognizing the Anaheim Public Utilities WaterSmart Landscape Award Winners Issis Macias, Public Utilities Department Water Conservation Program Manager, presented the annual water awareness campaign including a number of programs and services to assist utility customers save water and announced a partnership with local schools to educate students on the importance of conserving water at home. Sandra Sagert, Anaheim Beautiful president, recognized the winners of the inaugural Water Smart Landscape Award: Jonathan and Jennifer Mabe, Arnold and Deborah Vagts, and Randy and Mary Beckham. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming May 5, 2015, as Crossing Guard Appreciation Day Jocelyn Casteneda and Karissa Casas, Adelaide Price Elementary student body president and vice-president, expressed their appreciation of crossing guards keeping everyone safe. Crossing Guard Mike Johnston emphasized the importance of keeping children safe by avoiding texting and talking on the phone when picking up the children. City Council Minutes of May 5,2015 Page 5 of 32 Proclaiming May 16, 2015, as Kids to Parks Day Sadie Cowden, Community Services Specialist, announced Kids to Parks Day, a nationwide day of play, scheduled for May 16, 2015, and encouraged people to explore local parks and utilize Fun on Wheels and the Oak Canyon Nature Center. Proclaiming May 2-10, 2015, as National Travel and Tourism Week Jay Burress, Anaheim Orange County Visitor and Convention Bureau president and CEO, discussed the impact of tourism on the community and announced there were 21 million visitors to Anaheim in 2014, a 16% increase over 2013, and countywide tourist spending of$10.7 billion. Proclaiming May 11-16, 2015, as Women's Lung Health Week Kelly McGinnis, American Lung Association, provided statistics about the instances of lung cancer, asthma, and COPD among women, announced the need for more research and clean air/tobacco control policies, and encouraged people to wear turquoise in support of those suffering from lung disease. Proclaiming May 6-12, 2015, as National Nurses Week Elizabeth Atilano, West Coast University Interim Executive Director, accepted the proclamation on behalf of their students, faculty, and administrators and provided historical and statistical information about their Anaheim campus. Dr. Erica Martinez, Orange County Campus Dean of Nursing, recognized Executive Chairman of the Board David Pyle as a recipient of the Friend of Nursing Award and announced the national theme of Nurses Week as "Ethical Practice, Quality Care." Proclaiming May 2015, as Meals on Wheels Volunteer Recognition Month Darla Olson, SeniorSery vice-president of advancement, announced they serve meals to and visit with 215 homebound seniors in Anaheim and will be recognizing their volunteers at their Board of Directors meeting on May 19, 2015. Proclaiming May 15, 2015, as Peace Officers Memorial Day Police Chief Raul Quezada provided background on the creation of Peace Officers Memorial Day and statistics on the number of officers killed in the line of duty with a recent increase over the last five years nationwide, indicating Anaheim had not lost an officer in the line of duty since a traffic collision death in 1988. Proclaiming May 3-9, 2015, as Public Service Recognition Week Jason Motsick, Human Resources Department, accepted the proclamation on behalf of approximately 3,000 city employees that provide full services to the City's residents. Proclaiming May 17-23, 2015, as National Emergency Medical Services Week Dave Berry, Anaheim Fire and Rescue EMS Captain, accepted the proclamation on behalf of all dispatchers and paramedics in the field. City Council Minutes of May 5,2015 Page 6 of 32 Proclaiming May 11-17, 2015, as Women Veterans Week Deserhae Arnett and Nadia Hernandez, Women's Veterans Network of Orange County, accepted the proclamation and described the assistance women veterans can receive upon their transition from exiting the military. Proclaiming May 4-8, 2015, as National Small Business Week Douglas Dare, U.S. Small Business Administration economic development specialist, announced that small businesses create two out of every three net new jobs and give communities a sense of place. Proclaiming May 2015, as National Community Action Month Allen Woo, Community Action Partnership of Orange County, indicated their organization differs from others as the poor work together to define themselves, find solutions, and meet basic needs through their multi-faceted organization, which recently celebrated its 50th anniversary. Proclaiming May 16, 2015, as Armed Forces Day Gary Mason, Commander of Veterans of Foreign Wars in Anaheim, recognized and thanked the armed forces, which consist of 1/3 of 1% of the total population, who serve in the military freeing up the rest of the citizens to enjoy their freedoms. At 6:07 P.M., Mayor Tait called to order the Anaheim Housing Authority (in joint session with the Anaheim City Council). ADDITIONS/DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS (all agenda items, except public hearings): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk Linda Andel. William Fitzgerald, Home Owners Maintaining our Environment, offered comments related to public comments made at previous City Council meetings. Larry Larsen announced eight schools in the Anaheim Union High School District have been designated as California Gold Ribbon Schools. He then addressed comments to the value of the Resort District to the City but his belief that not enough of the revenue goes back to the community who needs it, specifically citing Anaheim High School and decaying infrastructure. Daniel DeMeyere questioned the decision to site a bus stop on Brookhurst Street, requested information on the timeline for the County to address their portion of Brookhurst Street, and discussed his belief that deceptive information had been provided about various aspects of the project. Jay Burress, President/CEO of Anaheim/Orange County Visitor and Convention Bureau, provided history of the Anaheim Tourism Improvement District (ATID) indicating that 25% of the 2% assessment was set aside for transportation and infrastructure needs and requested the City convene a meeting with the ATID Transportation Committee to discuss short term support for ARTIC and partner for a longer-term solution related to transportation and Resort success. City Council Minutes of May 5,2015 Page 7of32 R. Joshua Collins, Homeless Advocates for Christ, read from the Bible and addressed how it applied to interactions between the Police Department and Code Enforcement with the homeless population. Lou Noble expressed his support for a shelter and shared his thoughts that current policies were not working as the homeless were afraid to go to parks and needed to be aware of criminals and encouraged the creation of a safe place for the homeless to rest. Kara Nguyen, speaking on behalf of Mercy House, the operator of Armory emergency shelters for the last 7 years, expressed her thankfulness for city support. Brad Fieldhouse, Executive Director of CityNet, provided an update on the Coming Home Anaheim collaborative and its work in assisting over 300 people get off the streets. He thanked Council for their leadership and vision on the multi-service center to fill an important gap in the broader continuum of care for the homeless, announcing that other cities are attending collaborative trainings to learn about what Anaheim is doing in this regard. Mark Schneider expressed his support of the cooperative funding agreement for 1000 N. Kraemer Place and described the efforts of Calvary Chapel East Anaheim outreach ministries to provide food, clothing, and essentials to those in need. Becky Nguyen, resident, discussed the difficulties she has encountered parking on the street, indicating that implementing permit parking would cause her to move out of Anaheim. Jason Morgan, mobile home park homeowner, offered comments regarding the affects permit parking would have on his living situation and the other mobile home residents, with his belief that parking permits would cause more issues then they would solve. Maurice Evans, resident, provided historical information about homelessness in Orange County and expressed thanks that Council was willing to address the issue by providing a multi-service center where homeless individuals could be safe. Gretchen Shoemaker expressed her pride in Mayor Tait and his visit with the Dalai Lama. Donna, East Anaheim resident, discussed people camping and starting fires behind her neighborhood in the vicinity of CA-57 and La Palma Avenue, indicating it is not clear whether the area is under the jurisdiction of Caltrans or the police and fire departments. Bill Postma, former Magnolia School District board member, applauded the Council for the way they work with residents through neighborhood district councils and working with residents to address the homeless problem through the multi-service center, and shared a specific story of a homeless young man, expressing that all stories differ and there is not just one solution. Tracey Clark, American Cancer Society, expressed support for Item No. 29 for restrictions on all sources of smoke including smoking lounges, water pipes, and hookahs. City Council Minutes of May 5,2015 Page 8 of 32 Marc Alexander, Alvarado Smith law firm, referencing Item No. 11 for the cooperative funding agreement, delivered objections to the project on behalf of property owners on North Kraemer Place and urged postponement of any approval until an environmental study is completed. Maria Bessem, resident, described her volunteer experience working with the homeless and offered support for the cooperative funding agreement. Greg Schulz, North Orange County Community College District provost, thanked Council for their leadership and support, announced the passage of Measure J for facilities bond, provided an update on their national search for a chancellor, and announced open forums on May 12th to meet the four finalists. Bernice Danker, West Anaheim resident, addressed Item No. 29, objected to smoking lounges and requested Council reconsider the three optional amendments not recommended by the Planning Department. Jeanette Bollen, Rancho La Paz mobile home park resident, supported the safe shelter as it would uphold the humanity, dignity, and self-respect of all people. Donna Whitman, neighborhood director for OC United, urged approval of the cooperative funding agreement for the multi-service center as a first step to help leverage a long term solution. Tareq Abuadas, Hidden Café owner, explained the culture and process of hookah, offering to meet with anyone interested in learning more. Mark Daniels, resident, encouraged the use of Glover Stadium for homeless outreach or a place for them to sleep and addressed comments to the perceived treatment of Yesenia Rojas and Nancy West. Esther Wallace thanked the City, Kaboom!, Disneyland, and the YMCA for the new playground at Twila Reid Park, extended an invitation to the 19th annual WAND BBQ on May 19th, and offered historical information and resident perspective related to hookah bars in West Anaheim. Amanda Edinger, Chairperson West Anaheim Neighborhood Council, thanked all involved with the installation of the new playground at Twila Reid Park. She then addressed her comments to the proposed hookah bar ordinance, questioning the distance of certain lounges from residential areas and discussing the effects smoke has on residents and non-smokers. Jesse Valdez, resident, expressed his objections to the proposed homeless shelter on Kraemer Place and requested a community forum to discuss the project. Rashad Al-Dabbagh, resident, referenced the promotion of the Little Arabia district helping transform Brookhurst Street into a thriving business community and requested Council reconsider the amendments related to hookah bars and to work closely with business owners to come to consensus rather than punish small businesses. City Council Minutes of May 5,2015 Page 9 of 32 Mohammed Eklhatib, Fusion Ultralounge, expressed his concern about new pressures on hookah bars and proposed regulations that would put many out of business. He encouraged others to visit the establishments and learn more about them in order to work together to find changes without affecting their businesses and income. Heshmat Ali, attorney, commented on the effects of implementing proposed regulations on smoking businesses including potential loss of revenue and the business itself. He discussed the spread of hookah across cultures and religions and questioned whether such regulations are being put forth for cigar lounges and other smoking establishments or whether only hookah bars were being targeted. Mirvette Judeh urged approval of the cooperative funding agreement, bringing members of different faiths together under a shared belief in helping the needy. Jay Williams, Fullerton resident and pastor, noted it impossible to find a perfect location, encouraged Council to support the multi-service center and support collaboration to ensure success. Bob Cerince, resident, expressed support for the cooperative funding agreement, referencing work by the Anaheim Poverty Task Force and national examples of best practices for housing and increasing income. Karen Staignaugh, Unitarian Universal Church pastor, expressed her view about the connection between Mayor Tait's City of Kindness initiative and the multi-service center, urging Council to demonstrate their leadership and to vote yes tonight to continue collaborative efforts. Heshmat Ali requested Council postpone their vote on Item No. 29. Greg Diamond discussed the recent purchase of the Carl Karcher lot, expressing his view that both a multi-service center and a more unstructured campground-type site could be developed. Speaking as general counsel of CATER, he suggested Council was considering illegal action related to the fireworks ordinances (Item#18) and encouraged them to cease and desist from voting, submitting a letter referencing same. Victoria Michaels offered her view that delaying the adoption of the fireworks ordinances does no harm as she believes Honda Center sales cannot start in 2015. She also discussed safety concerns with fireworks sales immediately prior to a visit from the Dalai Lama. Cynthia Ward, resident and president of CATER, offered support for Item No. 11 as a good start with the multi-service center but encouraged consideration of options at the Carl Karcher site as well as affordable housing zone changes. In regards to Item No. 13, Ms. Ward expressed concerns with the assembled parcel of land and receiving market rate upon its sale. She indicated her view that Item No. 9 was a good idea with "iffy" execution and encouraged using money to expand the MWD program to include more people. City Council Minutes of May 5,2015 Page 10 of 32 Ricardo Toro, resident, expressed concerns about transparency regarding the homeless shelter and decisions being made, neighborhood concerns about safety and property values, and desired centers throughout the county, not just in one centralized location. COUNCIL COMMUNICATIONS: Mayor Tait requested the City Manager schedule a meeting with ATID. Mayor Tait and Mayor Pro Tern Kring responded to comments regarding Cecil Jordan Corkern and the public comment process. CITY MANAGER'S UPDATE: Interim City Manager Paul Emery remarked that the City is working with the Anaheim Tourism Improvement District to look at revenue opportunities, partnerships, and expenditures while working through ARTIC and will bring back additional information during the budget hearings. In response Mayor Tait's request, Public Works Director Natalie Meeks provided an update on the Brookhurst Street bus shelter, explaining that the City was required by the railroad to relocate the bus stop further south for safety reasons and it was therefore moved between Brookhurst and Crestwood. She added, a request from the City to OCTA to eliminate that bus stop entirely was denied by OCTA due to the nature of Brookhurst St. as a transit corridor, requiring bus stops every 1/4 mile. At 8:04 P.M., Mayor Tait closed the public comments and called for the joint public hearing between the Anaheim Housing Authority and City Council. PUBLIC HEARING: (in joint session with the Anaheim Housing Authority) 2. This is a joint public hearing of the Anaheim Housing Authority and the Anaheim City Council to consider resolutions regarding a Disposition and Development Agreement by and between the Anaheim Housing Authority and Olson Urban Housing, LLC, regarding certain real property generally located at 2415 S. Manchester Avenue for the development of a for-sale townhome development. RESOLUTION NO. 2015-157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Disposition and Development Agreement between the Anaheim Housing Authority and Olson Urban Housing, LLC, substantially in the form attached to the resolution; authorizing the Authority Executive Director to negotiate the terms of and finalize such Disposition and Development Agreement; authorizing the Authority Executive Director to implement such Disposition and Development Agreement; and making certain other findings in connection therewith. John Woodhead, Community Development Executive Director, explained that when the Housing Authority disposes of real property it is required to hold a joint public hearing with the City Council to hear public comment before taking any action. He provided historical information that the Anaheim Redevelopment Agency acquired approximately 24,000 square feet of Caltrans parcel in June 2006 located at 2415 S. Manchester Avenue. Upon the June 2011 dissolution of the Redevelopment Agency, the City Council elected to be the Successor Agency, but declined to be the successor of the housing assets and functions of the Redevelopment Agency; the Housing Authority elected to be successor of housing functions. In June 2012, the Successor City Council Minutes of May 5,2015 Page 11 of 32 Agency transferred this and other housing sites to the Housing Authority which has been approved by state audit. Mr. Woodhead described the site as constrained by infrastructure deficiencies such as sewer, water, storm drain, and electrical connections making it difficult to develop. He announced Olson Urban Housing had entered into a purchase and sale agreement with the owner of the property directly north of this site for the development of a for-sale townhome development and wishes to incorporate this site into their project. The Housing Authority is proposing to sell the site to the developer pursuant to a Disposition and Development Agreement and to use the proceeds of the sale for the development of affordable housing at another location. The developer would pay fair market value of$430,000 based on an independent appraisal, over the net cost to the Agency of$277,000 in its initial acquisition of the property and subsequent maintenance and managing of the site. Mayor Tait opened the public hearing. Hearing no public comment, Mayor Tait closed the public hearing. DISCUSSION: Council Member Vanderbilt questioned if the constraints on the property existed at the time of its purchase and what the initial plans were for using the property with Mr. Woodhead responding that housing funds were used for the acquisition as a housing use was anticipated. He added that the property was acquired with a number of Caltrans remnant parcels that the Redevelopment Agency hoped to aggregate with other sites wherever possible to effectively reuse them for housing purposes. Mayor Pro Tern Kring moved to approve RESOLUTION NO. 2015-157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Disposition and Development Agreement between the Anaheim Housing Authority and Olson Urban Housing, LLC, substantially in the form attached to the resolution; authorizing the Authority Executive Director to negotiate the terms of and finalize such Disposition and Development Agreement; authorizing the Authority Executive Director to implement such Disposition and Development Agreement; and making certain other findings in connection therewith, seconded by Council Member Murray. ROLL CALL VOTE: AYES —5: (Mayor Tait and Council Members: Kring, Murray, Brandman, and Vanderbilt.) NOES—0. Motion Carried. At 8:09 P.M., Mayor Tait adjourned the Anaheim Housing Authority and proceeded with the City Council session. CONSENT CALENDAR: Council Member Vanderbilt removed Item Nos. 11, 12, and 14 from the consent calendar for further discussion and Mayor Tait removed Item Nos. 9, 13, and 18. Mayor Tait indicated he would abstain on Item Nos. 7 and 11 as his firm had worked with the County of Orange during the past year. Mayor Pro Tem Kring then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the consent calendar as presented, in accordance with reports, certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Council Member Brandman. ROLL CALL VOTE: AYES—5: (Mayor Tait and Council Members: Kring, Murray, Brandman and Vanderbilt.) NOES—0. Motion Carried. City Council Minutes of May 5,2015 Page 12 of 32 B105 3. Receive and file minutes of the Budget, Investment and Technology Commission meeting of March 26, 2015, Sister City Commission meeting of January 26, 2015 and Parks and Recreation Commission meeting of February 25, 2015. 4. Determine on the basis of the evidence submitted by Vivere Residential II LLC, that the AGR-3639 property owner has complied in good faith with the terms and conditions of Development Agreement No. 2005-00007 for the 2014 review period for the development of a 336-unit multi-family residential project located at 1331 East Katella Avenue and 1725-1755 South Auburn Way in the Platinum Triangle. 5. Determine, on the basis of the evidence submitted by TDI/D Real Estate Acquisition LLC, that the property owner has complied in good faith with the terms and conditions of AGR-3504.1 Development Agreement No. 2010-00004 for the 2014 review period for the Jefferson Platinum Triangle Project to develop 771 residential units located at 1515 East Katella Avenue, 1781 South Campton, and 1551 East Wright Circle. 6. Accept the bid and approve an agreement with Pacific Coast Elevator Corporation dba Amtech Elevator Services, in an amount not to exceed $346,488, for elevator and AGR-6225.A escalator maintenance and repair services at the Anaheim Convention Center 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#8432. 7. Accept an award of funds from the County of Orange Board of Supervisors and approve AGR-7107.B and authorize the City Manager to execute and the Workforce Development Manager, authorized representative, to administer an agreement with County of Orange for the provision of vocational training activities. Mayor Tait recorded an abstention on this item. Roll Call Vote:AYES—4:(Mayor Pro Tem Kring and Council Members:Murray, Brandman and Vanderbilt.) NOES— 0. ABSTENTION- 1:Mayor Tait. Motion to approve carried. 8. Approve an application for local area designation and local board certification under D155 Workforce Innovation and Opportunity Act. 10. Approve and authorize the Public Works Director, or designee, to execute and take the necessary actions to implement and administer the Right of Entry and License AGR-8819 Agreement, in substantial form, and any related documents, with HHC HA Investments II, Inc. for the purpose of constructing engineered support system stabilizing components beneath the Hilton Hotel Parking Facility known as Hilton Car Park 2 and authorize only those modifications to the agreement as may be necessary and as approved by the Risk Manager and the City Attorney's Office. 15. RESOLUTION NO. 2015-159 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ratifying and approving the action of the Public Works Director, D175 or her designee, in submitting grant application on behalf of the City of Anaheim, with the California Governor's Office of Emergency Services under Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of City Council Minutes of May 5,2015 Page 13 of 32 1988, and/or State Financial Assistance under the California Disaster Assistance Act for seismic structural retrofits at City Hall and in accepting such grant funds on behalf of the City of Anaheim and approving inclusion of such funds in appropriate fiscal year. D129 16. RESOLUTION NO. 2015-160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM identifying the terms and conditions for Anaheim Fire and Rescue Personnel assigned to an emergency incident. 17. RESOLUTION NO. 2015-161 A RESOLUTION OF THE CITY COUNCIL OF D154.3 THE CITY OF ANAHEIM approving a Letter of Understanding between the Anaheim Police Association and the City of Anaheim. 19. ORDINANCE NO. 6325 (ADOPTION)AN ORDINANCE OF THE CITY OF ANAHEIM amending and restating subsection .130 of Section 6.44.010 (Nuisances) of M142 Chapter 6.44 (Nuisances) of Title 6 (Public Health and Safety) of the Anaheim Municipal Code relating to nuisances based upon the finding and determination that the subject matter of this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2) and 15060(c)(3) of the State CEQA guidelines and is not a "project", as defined in section 15378 of the State CEQA guidelines (Introduced at Council meeting of April 21, 2015, Item No. 25). 20. ORDINANCE NO. 6326 (ADOPTION) AN ORDINANCE OF THE CITY OF C280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2014-00272) (DEV2014-00033) (2848 and 2901-2905 East South Street) (Introduced at Council meeting of April 21, 2015, Item No. 29). C280 21. ORDINANCE NO. 6327 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2014-00274) (DEV2014-00126) (Introduced at Council meeting of April 21, 2015, Item No. 30). 22. ORDINANCE NO. 6328 (INTRODUCTION)AN ORDINANCE OF THE CITY OF ANAHEIM establishing the campaign contribution limit for the election cycle commencing M142 January 1, 2015, pursuant to Anaheim Municipal Code Section 1.09.050. 23. ORDINANCE NO. 6329 (INTRODUCTION) AN ORDINANCE OF THE CITY OF C280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning based upon the finding and determination that said amendment is categorically exempt from the provisions of the California Quality Act (CEQA) pursuant to Section 15332 (In-Fill Development Projects) of the State CEQA guidelines (Reclassification No. 2014-00264) (DEV2014-00014) (1648 West Orangewood Avenue) (rezoning from the Transition Zone to Single-Family Residential Zone). 24. ORDINANCE NO. 6330 (INTRODUCTION)AN ORDINANCE OF THE CITY OF c280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning based upon the finding and determination that Environmental City Council Minutes of May 5,2015 Page 14 of 32 Impact Report No. 330 serves as the appropriate environmental documentation for said amendment under the provisions of the California Environmental Quality Act (CEQA) (Reclassification No. 2015-00278) (DEV2015-00030) (1406, 1422 West Broadway, 318 South Hessel Street, 1280 West Santa Ana Street and 301 South Manchester Avenue) (rezoning from Industrial Zone to the Public Recreation Zone). END OF CONSENT CALENDAR: 9. Approve the proposed Turf Removal Customer Assistance Program to authorize the City to provide zero interest loans to qualified property owners to fund qualified turf removal costs above available rebate amounts and to set the terms and conditions of the D182 program; approve a master Turf Removal Customer Assistance Agreement (Assistance Agreement) to be executed by the City and qualified property owners as a prerequisite for participation in the program; authorize the Public Utilities General Manager or designee to execute the Assistance Agreement and any related documents and take necessary actions to implement and administer the Assistance Agreement and program; and authorize de minimis changes that do not substantially change the terms and conditions of the Assistance Agreement, as determined by the City Attorney's Office. Dukku Lee, Public Utilities General Manager, explained Item 9 aimed to establish a zero interest loan program to assist city residents and businesses with up-front costs for turf removal. Mr. Lee announced the current rebate for turf removal was $3 per square foot based on a contribution of$2 from MWD and a grant received last year to add the extra dollar. Mr. Lee indicated the proposed program would allow customers to receive a loan up to $5,000 for residents and up to $10,000 for businesses to help fund differences between their construction costs and available rebates, as installation costs typically ranged from $5 to $6, with artificial turf a bit more. This bridging mechanism would allow customers to save on their out-of-pocket expenses and repay the loan via their utility bills over a 24-month period. Mr. Lee explained the department would start the program with $1 million available which would cover approximately 700,000 square feet of turf removal and save about 30 million gallons of water each year. As customers repay their loans, the monies would be available to additional customers throughout the drought. Mayor Tait announced he had received a letter from a citizen letter questioning the cost benefit of the entire turf removal program, appreciating the letter and analysis behind it, but expressed his support of the item to provide a risk free loan to be paid back over two years on their utility bill for those that wish to perform such a project but don't have available funding. Mayor Tait recognized the requirement for the City to reduce its water usage by 20% and recognized the great progress the Public Utilities Department and people of Anaheim are making by taking the drought seriously and leading the way in Orange County. He then requested an item for a future agenda to send a letter to the State of California requesting CEQA requirements be relaxed for water storage projects. Mayor Tait moved to approve Item 9, seconded by Council Member Murray. City Council Minutes of May 5, 2015 Page 15 of 32 Prior to the vote, Council Member Vanderbilt inquired about the amount of funding available for businesses versus residents and whether consideration was given for a larger amount to businesses. Mr. Lee responded that the program, as envisioned, was a way to get approximately 200 residents and 25 small businesses at any one time to participate, which would use up the $1 million. He recognized that mid-sized and larger businesses may wish to do turf removal, however any increased funding for them would not allow for funding for the smaller projects that may have issues with out-of-pocket expenses. He announced that while the program was not geared to larger businesses, the Utilities Department would continue to work with large businesses on water surveys, other ways to conserve, and available rebate money. Council Member Brandman requested clarification on Mayor Tait's CEQA request, with Mayor Tait stating he wanted it to come back as a future item and was not part of the vote for this item. Roll Call Vote: AYES — 5: (Mayor Tait and Council Members: Kring, Murray, Brandman, and Vanderbilt). NOES —0. Motion Carried. 11. Approve the Cooperative Funding Agreement, in substantial form, with the County of Orange and City of Fullerton to facilitate the study and fund the acquisition of real property in connection with the potential establishment of a year-round homeless AGR-8820 emergency shelter and multi-service center at 1000 N. Kraemer Place, the final form of the Funding Agreement shall be conclusively evidenced by the execution and delivery thereof by the parties; determine the Funding Agreement is exempt from the California Environmental Quality Act pursuant to the State CEQA Guidelines, 14 Cal. Code Regs. Sections 15262 and 15004(b) (2) (A), authorize and direct the City Manager to execute and take the necessary actions to implement and administer Funding Agreement, and any related documents, with any revisions, modifications, or amendments thereto that are in substantial conformance with the Funding Agreement as determined by the City Attorney's Office; and increase the Community Services' fiscal year 2014/15 expenditure appropriations by $500,000. Mayor Tait declared a conflict of interest on Item 11 as his firm had worked with the County of Orange during the past year and recused himself from the discussion, leaving the dais. Kristine Ridge, Interim Assistant City Manager, announced Item 11 was the proposed approval of a cooperative funding agreement with the County of Orange and the City of Fullerton along with the necessary action for the appropriation of funds. Ms. Ridge explained the purpose of the funding agreement was to monetarily assist the County with its due diligence, feasibility studies, and the acquisition of property at 1000 N. Kraemer Place for a potential homeless shelter and multi-service center. She indicated the County had sought funding assistance of$500,000 from both Anaheim and Fullerton, and emphasized that if the County does not purchase the property, the City would only be required to contribute $50,000, for feasibility and due diligence costs. Additionally, she noted, if the County does purchase the property and completes all necessary steps to use the property for a shelter/center, but later sells the property or changes the property's use; the agreement requires the City's acquisition contribution to be reimbursed. City Council Minutes of May 5, 2015 Page 16 of 32 Council Member Vanderbilt acknowledged the speakers who spoke about potential impacts the proposed facility may have on them and considering that homelessness is a countywide issue, expressed his wish that other cities, particularly in North Orange County, provide financial assistance in the future to mitigate security and other issues outside the facility. Ms. Ridge responded that the Cities of Fullerton and Anaheim have discussed how to engage other cities in supporting these efforts. Council Member Murray commented that this was the first step in a significant public engagement process and a lengthy planning and development process. She spoke to the city's collaborative work with the County, and thanked Supervisors Todd Spitzer and Shawn Nelson, County staff, CityNet, and professional staff for the planning involved making this possible. Council Member Murray acknowledged that few sites could accommodate the needs of multi- service homeless shelter, but the Kraemer Place property was large enough, freeway accessible with transit access, and not too close to residential areas, schools, or parks. She indicated the City and County were committed to making sure the facility was an asset to those it served and the surrounding community, and there would be significant opportunity for people to engage, express concerns, and work together to find solutions to address those needs. She expressed her concern with an opposition campaign and shared her thoughts on compassion, the need to act to alleviate pain, suffering, and poverty, the needs of children and veterans, and the need for a safe place for all people to go. Council Member Murray moved to approve Item 11, seconded by Mayor Pro Tem Kring. Mayor Pro Tern Kring thanked Ms. Ridge and City staff for finding this location and having the funds for this first step and acknowledged the shared responsibility between Anaheim, Fullerton, and the County. She addressed the concerns mentioned by those near the site by focusing on how wonderful the facility will be upon completion and the many services that would be provided. She acknowledged that change is often difficult for people but the City would move forward to find solutions, including the potential for other locations or facilities. Council Member Brandman thanked the staff and stakeholders for their hard work on this issue. Roll Call Vote: AYES—4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt). NOES —0. ABSTENTIONS— 1: (Mayor Tait). Motion Carried. Mayor Tait returned to the dais. 12. Approve and authorize the Director of Community Development to execute and administer a Second Amendment to Professional Services Agreement (PSA) with M. AGR-8098.2 Arthur Gensler&Associates, Inc.; a First Amendment to PSA with Seibert Perkins AGR-8060.1 AGR-7717.2 Design; a Second Amendment to PSA with CSG Financial Advisors; and a First AGR-8008.1 Amendment to PSA with Greenhaus increasing compensation for each contract by $100,000 per year for on-call development and economic development services. Council Member Vanderbilt referenced the earlier workshop on community development and investments in private/public partnerships where four areas were discussed —WestgateNVest Anaheim, the central core of Anaheim, the Resort district, and the Stadium, and while City Council Minutes of May 5, 2015 Page 17 of 32 acknowledging that these contracts allow some of that work to move forward in all areas simultaneously, expressed his desire to see special consideration afforded to the western portion of the City. Mayor Tait echoed the concerns described by Council Member Vanderbilt. Mayor Pro Tern Kring moved to approve Item 12, seconded by Council Member Brandman. Roll Call Vote: AYES — 5: (Mayor Tait and Council Members: Kring, Murray, Brandman, and Vanderbilt). NOES—0. Motion Carried. 13. Authorize the Director of Community Services to issue a Request for Proposals, in D150 substantial form, for the sale and development of an approximately seven acre parcel along Anaheim Way and enter into an Exclusive Negotiation Agreement, in substantial form, with Storage West Self Storage for the disposition of a remnant parcel along Anaheim Way. Larry Pasco, Parks Manager, described the property as an oddly shaped, 7 acre piece of land on a one-way freeway frontage road south of Katella Avenue on Anaheim Way between an existing public storage business and an industrial area, adjacent to the 1-5 freeway and a Southern California Edison easement. He announced the land was originally purchased in 1997 by the Anaheim Redevelopment Agency for$2.9M and later transferred to the Community Services Department through the use of Platinum Triangle park development fees. Over the years, the site had been considered for use as a school, an NBA practice facility, parking for the nearby American Sports Center (ASC), and the new location of ASC. Mr. Pasco explained the school concept had been abandoned due to the close proximity to the 1-5 freeway and a 2005 California EPA air resources study that strongly advised against siting certain recreation activities within 500 feet of a freeway, due to negative health effects. Mr. Pasco indicated that interest in the property has intensified due to the improving economy, with unsolicited inquiries and offers submitted to the Community Services Department for commercial and industrial uses similar to businesses surrounding the property. He announced that the property had recently been appraised with a value between $9-10 million. Mr. Pasco explained that when the property was acquired 18 years ago, the department's intention was to build a park with a baseball field with soccer field overlay. Due to its irregular shape, Mr. Pasco noted only one soccer field could be constructed on the site and that due to limitations on access, the high cost of development on the site, the relatively small return on investment with one joint use sports field, and the CA EPA recommendation against park locations near freeways, City staff has reevaluated building a park at this location. Mr. Pasco announced the City Manager's office, Community Development, and Community Services Departments jointly recommend an RFP be issued to formally gauge the private sector interest in acquiring this property for compatible use with its surroundings. Mr. Pasco explained Item 13 is for the approval of an RFP process and to entertain offers for sale of the property. If a desirable offer is received, the sale of the land would be brought back to Council for approval. Mr. Pasco explained that if the property is sold, the original purchase price would be repaid to the Platinum Triangle park development fund with interest; the distribution of additional profits would be at Council discretion. He further explained that some areas of the City, such as the Platinum Triangle, are well positioned to receive healthy park development fees due to many _ _ _ City Council Minutes of May 5, 2015 Page 18 of 32 residential development projects currently in the planning stages which will fund the acquisition of new land and parks while other areas of the city do not have a significant influx of park development funding. The Community Services Department recommends that if the property is sold, any profits should be allocated to a sector of city that has serious needs for infrastructure improvement, particularly La Palma Park. Mr. Pasco provided background information about La Palma Park- it is the second oldest park in the City, built in 1938. He added that it has the greatest need for rehabilitation as well as an opportunity to broker improvements to raise service levels in the north area of the city. Planned improvements could include three additional soccer fields in the passive western section of the park and expanded use of Glover Stadium and Dee Fee Field if artificial turf were installed. Mr. Pasco explained that organized soccer is a year round sport and the high demand for field space greatly outweighs existing park abilities to provide; in addition to which, Anaheim does not have a large lighted sports complex able to host multiple events simultaneously. He shared that the sale of Anaheim Way property offers a unique opportunity for businesses to locate to Anaheim to provide services, jobs, and revenue to the City, while also creating funding to make La Palma Park a destination sports complex needed by City residents. Mayor Tait remarked that this land is adjacent to Platinum Triangle and purchased with Platinum Triangle park fees for future residents of the Platinum Triangle and asked how many people were projected to live in the Platinum Triangle. Jonathan Borrego, Planning Manager, estimated the population would be approximately 27,000, based on projections and the number of units planned for ultimate buildout. Mayor Tait shared his view that this site was seven acres and that while it may not be perfectly located and an odd shape, it was the last available vacant City- owned land in the area which could be used as green space in the City which is under-parked for its population. He acknowledged that being next to a freeway was not ideal, but that there was no prohibition against a park at such a location and that emissions would continue to drop due to increased use of electric vehicles. Mayor Tait expressed his dislike of selling the land since there would be additional people moving to an area that had paid for the land to be a park. He added the change to industrial use was a mistake and indicated his opposition to the item. Mayor Tait then moved to oppose Item 13, seconded by Council Member Vanderbilt. DISCUSSION: Mayor Pro Tern Kring questioned whether there was a prohibition on building a park near a freeway and whether regulations had changed since the initial purchase of the property. John Woodhead, Community Development Executive Director, replied that the property had been a remnant which was deemed positive to obtain and concepts were reviewed to integrate with the American Sports Center. Mr. Pasco re-stated the 2005 California EPA Air Resources Board study that reviewed all recreational uses and strongly advised against parks and schools being sited adjacent to freeways or major roadways. He said the use was not prohibited but was an advisement that most jurisdictions were following for public health reasons. Mayor Pro Tern Kring questioned whether restrictions may be lessened in the future with Mr. Pasco responding that it was difficult to predict and may actually be more restrictive. He added that today's item was for an RFP to see what kind of offers the City might receive for City Council Minutes of May 5,2015 Page 19 of 32 the property. In response to a question by Council Member Vanderbilt, Mr. Pasco provided information about past efforts to purchase park land within the Platinum Triangle, confirmed staff continues to look for park sites within the Platinum Triangle as they are aware of the need for parks there, mentioned preliminary discussions with the school district about developing a joint facility in the Platinum Triangle, and explained that any potential sale proceeds could be used anywhere within the City including La Palma Park or to purchase land in the Platinum Triangle, if it became available. He referred to the Ball Road Basin as a wish for the City to obtain and referenced $100 million in Platinum Triangle park fees that the City would receive through development to provide parks for future residents. Mayor Tait commented that this is land the City already owns and that based on land entitlements and appraised values, the proceeds from a sale would only purchase about two acres instead of the seven acres already owned. He acknowledged the great plans for La Palma Park but emphasized the need for green space and parks within walking distance for 27,000 residents of the Platinum Triangle and again objected to the item. Council Member Brandman acknowledged the Mayor's concerns but disagreed with his conclusions pointing to the California EPA advisement. He acknowledged the land was purchased with the best intentions, but conditions had changed. He expressed his support of staff's recommendations to allocate proceeds to La Palma Park and explained this item was to put out an RFP to create an opportunity to obtain capital that could be used to purchase additional land and direction of where to spend the proceeds would occur later, expressing his view that this property was not a proper place for a park. In response to a question from Mayor Tait, Mr. Woodhead announced the Anaheim Redevelopment Agency acquired the parcel from Caltrans in a portfolio of remnants from the 1-5 widening and then transferred it to the City in 2004 due to stated interest from the Parks Division. Mr. Borrego added the transaction occurred about the time the Platinum Triangle Master Land Use Plan was also adopted. Mayor Tait expressed his view that the City is short on park space and using any proceeds at La Palma Park would re-do the park but would not add park land. He emphasized the need for recreation and park space in the dense development area of the Platinum Triangle. Roll Call Vote to oppose Item 13: AYES —2: (Mayor Tait and Council Member Vanderbilt). NOES — 3: (Mayor Pro Tem Kring and Council Members Murray and Brandman). Motion Failed. Council Member Brandman moved to approved Item 13, seconded by Mayor Pro Tem Kring. DISCUSSION: Council Member Vanderbilt requested staff be vigorous in locating alternate park space within the Platinum Triangle for a sports complex or adjacent to a school, with Mr. Pasco agreeing that staff would continue to look for large park space in the Platinum Triangle. Mayor Tait expressed his concern that land was not getting less expensive. Roll Call Vote: AYES—4: (Mayor Pro Tem Kring and Council Members: Murray, Brandman, and Vanderbilt). NOES — 1: (Mayor Tait). Motion Carried. City Council Minutes of May 5,2015 Page 20 of 32 14. RESOLUTION NO. 2015-158 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing Permit-Eligible Parking District No. 35 (Citron D175 Ralston Riviera Ravenna Raleigh) and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). Council Member Vanderbilt referenced his previous comments and continued concern that parking permit districts create a long-term problem and moved to approve the resolution with an amendment to allow only an overnight permit parking (12am-6am), seconded by Mayor Tait. Mayor Pro Tern Kring questioned how the overnight parking permits would solve the problem of the residents who have trouble parking when they return home from work with Council Member Vanderbilt replying that staff presented the neighborhood several options, one of which was overnight parking, and his wish was to consider less restrictive options. Public Works Director Natalie Meeks explained that the action tonight was the first of a two-step process, per Council Policy, to create a permit-eligible parking district with individual street segments still needing to vote on their individual restrictions. She explained that residents typically want 24-hour permits available only to residents of those districts while Council Member Vanderbilt's suggestion is to limit the need for parking permits in this district to 12-6am, which is something staff would have to bring back out to the neighborhood. Council Member Vanderbilt explained his motion was to approve the district but only have the one option of 12- 6am permits available for residents to vote upon rather than multiple options to discuss and select from. Council Member Brandman questioned whether Council had ever imposed such a restriction during the creation of a district, with Ms. Meeks responding that all options for permits are typically presented to the residents. Council Member Vanderbilt expressed his concern that the Council acts in the middle of the permit-parking process rather than at the final decision point and believed there should be a broader consideration of this issue. Discussion ensued about balancing the desires of residents with policy considerations, with Council Member Brandman sharing concerns about addressing broader policy issues within a specific application and suggested passing this item so that a precedence is not set nor creating a haphazard process; however, later discussing the overall policy. Mayor Tait suggested continuing the item to allow for additional questions and addressing the policy concerns, with Council Member Vanderbilt noting that the overall approach should be considered and appreciated the discussion. Mayor Pro Tern Kring requested a workshop on permit parking to flush out all issues. Council Member Vanderbilt withdrew his motion. Mayor Tait moved to continue the item to the next available meeting after budget workshop. Motion failed for lack of a second. Council Member Murray remarked that staff and Council would need to determine the appropriate point to have a broader discussion to ensure communities and neighborhoods were not treated differently. Ms. Meeks announced there were currently 27 applications in the queue as neighborhoods continue to request options via this Council Policy as implemented in 2007, with Mayor Tait noting that waiting to complete all 27 applications would be a lengthy process. Ms. Meeks responded that some could be held at different stages while others would need to move forward. City Council Minutes of May 5,2015 Page 21 of 32 Council Member Brandman moved to approve Item 14 as presented, seconded by Council Member Murray. Roll Call Vote: AYES—4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt). NOES — 1: (Mayor Tait). Motion Carried. 18. ORDINANCE NO. 6323 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Title 6 (Public Health and Safety) of the Anaheim Municipal Code M142 to permit the sale and discharge of safe and sane fireworks within certain areas of the City based upon the finding and determination that (1) the sale of fireworks is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15304 of the State CEQA guidelines and (2) the discharge of safe and sane fireworks is not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the state CEQA guidelines and is not a "project", as defined in section 15378 of the state CEQA guidelines. ORDINANCE NO. 6324 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Title 18 (Zoning Code) of the Anaheim Municipal Code to include the definition of fireworks and to permit the sale of fireworks as a temporary use within the arena district of the Platinum Triangle Mixed Use (PTMU) Overlay Zone based upon the finding and determination that the sale of fireworks as a temporary use within the arena district of the PTMU Overlay Zone is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15304 of the State CEQA guidelines. (Both Introduced at the Council meeting of April 21, 2015, Item No. 23). Mayor Tait shared his belief that when voters approved allowing City Council to allow the sale of fireworks within Anaheim in June 2014 they envisioned traditional fireworks stands run by community groups as fundraisers rather than one sales location at the Honda Center. Mayor Tait stated he was not overly critical of the presented plan and appreciated staff thinking of alternatives, but believed it unlikely someone from West Anaheim would travel across town to buy fireworks and would rather see the traditional stands to help bring the community together. Council Member Vanderbilt discussed his support of the ordinance, concerns regarding the agreement with the Honda Center which had already been approved, and requested the City Attorney provide guidance related to a letter addressing this item. City Attorney, Michael Houston replied that the letter appeared to raise two allegations that would theoretically prevent the Council from voting on the adoption of the ordinances, the first of which was that the ordinances as introduced at the previous meeting and then presented for adoption had significant changes. Upon review of the ordinances and the agenda titles from both meetings, no changes were located by either City Attorney Michael Houston or City Clerk Linda Andal. Ms. Andal explained that ordinances must first be introduced at one meeting and then brought back for adoption, or second reading, at a subsequent meeting. She added that the documents are copied over from the first meeting to the second in the electronic agenda preparation process with no changes made. She confirmed that no departments requested any changes to the documents between meetings. Mr. Houston explained the second allegation in the letter City Council Minutes of May 5,2015 Page 22 of 32 was that the agenda was vague as to the action to be taken, with Mr. Houston noting that the city's charter as well as general state law uses the terms "introduction" and "adoption"for ordinances. As the agenda titles read accordingly for both meetings, Mr. Houston judged there to be no ambiguity. Council Member Murray moved to approve Item 18, seconded by Mayor Pro Tem Kring. Roll Call Vote: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt). NOES— 1: (Mayor Tait). Motion Carried. D116 25. Oppose California Senate Bill 128, a bill that would legalize assisted suicide in California (Continued from Council meeting of April 21, 2015, Item No. 08). City Clerk Linda Andal announced that pursuant to Council Rules of Conduct 3.04.020 this item was deemed automatically continued from the previous meeting as there was a tied vote due to the absence of Mayor Tait. The motion at the previous meeting was tied 2-2 (AYES - 2: Mayor Pro Tem Kring and Council Member Murray, ABSTENSIONS -2: Council Members Brandman and Vanderbilt). Mayor Pro Tem Kring indicated, as a Catholic, she could not morally vote in favor of the Senate Bill. She explained there were many ways for doctors to manage pain, all of which require consent which is not always able to be achieved at such stages. Mayor Tait commented that on its face the bill may seem merciful for those in severe pain at the end of life, but worried about the economics of healthcare and a slippery slope where the costs to end a life versus the cost to treat the illness would find balance, stating his opposition to the bill and problems with assisted suicide on a moral basis. Mayor Pro Tern Kring moved to approve Item 25, seconded by Mayor Tait. Roll Call Vote: AYES —3: (Mayor Tait and Council Members: Kring and Murray). NOES—0. ABSTENTIONS —2: (Council Members Brandman and Vanderbilt). Motion Carried. 26. ORDINANCE NO. 6331 (INTRODUCTION) AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM authorizing an amendment to the contract between the City of AGR-1553 Anaheim and the Board of Administration of the California Public Employees' Retirement System. Interim City Manager Paul Emery announced that at its last meeting City Council adopted a resolution informing CalPers of its intention to amend its contract and as part of the process Council was now required to adopt an ordinance via ministerial action. Mayor Pro Tern Kring moved to approve Item 26, seconded by Council Member Murray. Vote: 5-0. Roll Call Vote: AYES—5: (Mayor Tait and Council Members: Kring, Murray, Brandman and Vanderbilt.) NOES—0. Ordinance Introduced. 27. Nominate and appoint a representative to the Metropolitan Water District. 6105 Metropolitan Water District: APPOINTMENT: Stephen Faessel City Council Minutes of May 5,2015 Page 23 of 32 In response to a question from Mayor Tait, City Clerk Linda Andal confirmed that Council Policy requires a city employee or city resident to serve on the Metropolitan Water District and any changes to the policy would have to be officially changed at a subsequent meeting. Council Member Murray nominated resident Stephen Faessel, seconded by Mayor Pro Tem Kring. DISCUSSION: Council Member Vanderbilt requested clarification on the application process with Ms. Andal responding that this was a regional board rather than a Council-created board or commission with different appointment procedures. She advised that many regional boards require a sitting member of Council to serve, but in this instance it could be an employee or resident, however the appointment was at the discretion of Council and applications were not accepted. Mayor Tait requested to continue this item and initiate an application process to determine if there were additional interested applicants, with Council Member Murray expressing challenges with continuing the item due to members of Council scheduled to miss upcoming meetings and the issues facing MWD which require an Anaheim representative. Council Member Murray also announced that Mr. Faessel was willing and able to serve the city in this role. Mayor Tait questioned whether Don Calkins could continue to serve with Ms. Andal replying that Mr. Calkins was no longer qualified for the position pursuant to Council Policy 1.7 as he was not a resident or city employee. In response to Mayor Tait's questions about waiving the policy, both Ms. Andal and City Attorney Michael Houston confirmed that would have to be brought back before Council as the agenda did not provide for such action. Council Member Vanderbilt asked to implement an application process for future regional board appointments to allow all members of the Council an opportunity to gauge interest and qualifications. Roll Call Vote: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt). NOES —0. ABSTENTIONS— 1: (Mayor Tait). Motion Carried. Mayor Tait subsequently changed his vote and Mr. Faessel was unanimously appointed. Approved Vote: 5-0. 28. Consider appointments/re-appointments to city Boards and Commissions where those terms expire June 30, 2015. All scheduled vacancies will be for a term of four years, B105 expiring June 30, 2019, except the Sister City Commission; terms are for three years, ending June 30, 2018. Budget, Investment and Technology Commission: [Re] Appointment: Daniel Fierro (Incumbent, Daniel Fierro) Mr. Fierro was unanimously reappointed by affirmation. Community Center Authority: Appointment: Billie Joe Wright (vacancy of Everardo Nava) Council Member Brandman nominated Billie Joe Wright and Mayor Pro Tern Kring nominated Dale Laizure. The straw vote for Mr. Wright reflected AYES—4, ABSTENTION City Council Minutes of May 5,2015 Page 24 of 32 — 1. Mayor Pro Tern Kring withdrew her nomination and voted for Mr. Wright, who was then appointed unanimously. Approved Vote: 5-0. Community Services Board: [Re] Appointment: Becky Murphy (Incumbent, Becky Murphy) Ms. Murphy was unanimously reappointed by affirmation. Appointment: Ernesto Medrano (vacancy of Anca Trifa) Mayor Pro Tem Kring nominated Christopher Murillo. The straw vote for Mr. Murillo reflected AYES-2(Mayor Pro Tem Kring and Council Member Vanderbilt);ABSTENTION - 3 (Mayor Tait and Council Members Murray and Brandman). Council Member Murray nominated Ernesto Medrano. The straw vote for Mr. Medrano reflected AYES-4, ABSTENTION- 1. Mayor Pro Tem Kring revised her vote and Mr. Medrano was then appointed unanimously. Approved Vote: 5-0. Cultural and Heritage Commission: [Re] Appointment: Patricia Adelekan (Incumbent, Patricia Adelekan) Ms. Adelekan was unanimously reappointed by affirmation. [Re] Appointment: Hema Patel (Incumbent, Ernesto Medrano) Council Member Murray nominated Hema Patel who was unanimously appointed. Housing and Community Development Commission: [Re]Appointment: John Gatti (Tenant; Incumbent, John Gatti) Mr. Gatti was unanimously reappointed by affirmation. Appointment: Phyllis Greenburg (West District; vacancy of Darlene Powell) Council Member Brandman nominated Phyllis Greenberg who was unanimously appointed. Library Board: Appointment: Linda Esping (vacancy of Linell Mathisen) Mayor Pro Tem Kring nominated David Laviguer. The straw vote for Mr. Laviguer reflected AYES-2(Mayor Pro Tem Kring and Council Member Vanderbilt);ABSTENTION -3(Mayor Tait and Council Members Murray and Brandman). City Council Minutes of May 5,2015 Page 25 of 32 Council Member Brandman nominated Linda Esping who was unanimously appointed. Park and Recreation Commission: Appointment: Jim Adams (vacancy of Mike Brennan) Mayor Pro Tem Kring nominated Jim Adams who was unanimously appointed. Appointment: Craig Farrow (vacancy of Georgia Lappin) Council Member Murray nominated Craig Farrow who was unanimously appointed. Planning Commission: Appointment: Grant Henninger (vacancy of Peter Agarwal) Mayor Pro Tern Kring nominated Grant Henninger who was unanimously appointed. Council Member Vanderbilt nominated Nathan Zug, later withdrawing his nomination following discussion, and City Attorney concurrence, of Mr. Zug's inability to serve on the Planning Commission and the school board simultaneously as they are incompatible offices. [Re]Appointment: Michelle Lieberman (Incumbent, Michelle Lieberman) Ms. Lieberman was unanimously reappointed by affirmation. Public Utilities Board: [Re]Appointment: Susan Faessel (Incumbent, Susan Faessel) Ms. Faessel was unanimously reappointed by affirmation. [Re]Appointment: Diane Quezada-Singer (Incumbent, Diane Quezada-Singer) Ms. Quezada-Singer was unanimously reappointed by affirmation. Sister City Commission: [Re] Appointment: Anthony Al-Jamie (term ending June 30, 2018) (Incumbent, Anthony Al-Jamie) Mr.Al-Jamie was unanimously reappointed by affirmation. [Re]Appointment: Lori Farrow (term ending June 30, 2018) (Incumbent, Lori Farow) Ms. Farrow was unanimously reappointed by affirmation. [Re]Appointment: Christine Locke (term ending June 30, 2018) (Incumbent, Christine Locke) Ms. Locke was unanimously reappointed by affirmation. City Council Minutes of May 5,2015 Page 26 of 32 29. Initiate an amendment to Title 18 (Zoning) relating to regulation of smoking lounges. M142 Item No. 29 Discussion. Motion T/K Continue to July 21, 2015. Approved Vote: 5-0. Jonathan Borrego, Planning Services Manager, explained this item was a request for City Council to initiate a zoning code amendment related to smoking lounge regulations, referencing a workshop from November 2014 wherein Council reviewed the history of Anaheim's regulations, California's smoke-free workplace laws, and options for amending the current code requirements. Mr. Borrego explained there were currently 15 lounges operating in city, with an additional lounge approved but not yet opened, and many of these lounges were concentrated in West Anaheim, particularly along the Brookhurst Street corridor. He shared that while many businesses operated in a manner compatible with their surrounding uses, some businesses create negative impacts such as excessive noise, odors, and public disturbances. As a follow up to the workshop, staff was presenting a number of possible code amendments for Council's consideration: 1) amendments to ensure local regulations would be consistent with California's smoke-free workplace law; 2) regulations to ensure compatibility with surrounding uses; 3) clarify existing code requirements; and 4) optional amendments not recommended by staff but which have been discussed in previous public forums. Category 1 amendments would include the prohibition of sale or service of food or beverage within an enclosed smoking lounge. While state law exempts smoking lounge employees from the provisions of smoke-free workplace laws, if the locations sell products other than tobacco then they no longer qualify as a smoking lounge. Mr. Borrego explained the businesses could still serve food and beverages in outdoor patios, noting that about seven of the current lounges currently separate smoking and food service operations and could continue to do so. He added there is no restriction on customers bringing in their own food or beverage. Mr. Borrego noted the other amendment in this category would be to prohibit live entertainers as they are not exempt from the smoke-free workplace law provisions. Category 2 amendments were designed to ensure compatibility with surrounding uses and would include a requirement that coals used to heat tobacco be cooled indoors to minimize community complaints and potential safety hazards. He added a minimum 25-foot separation between outdoor smoking lounge areas and the doorway or outdoor patio of an adjacent business to lessen the impact of second-hand smoke. Following an analysis of police activities at smoking lounge locations, staff identified a distinct spike in calls for service after 2:00 am primarily for fights and other disturbances. Based on this analysis, staff recommended that any lounge operating after 2:00 am must obtain a Conditional Use Permit (CUP). Mr. Borrego explained that a CUP would provide staff with an additional enforcement tool for these locations, of which there are currently 12 operating past 2:00 am, eight of which do not currently have a CUP. If Council were to approve this amendment, staff recommended that the eight businesses be given 18 months to obtain a CUP, which would be considered at a Planning Commission hearing, or exert an option to scale back their hours to avoid the CUP requirement. Staff also recommended strengthening the code so music would not be audible from adjacent residential properties and a series of amendments to clarify existing regulations. City Council Minutes of May 5,2015 Page 27 of 32 Mr. Borrego then discussed other potential regulations that had been mentioned at previous meetings and the prior workshop. The first would be to revert back to the code currently in place from 2006 to 2012 that prohibited a smoking lounge from operating within 200 feet of a residential area or within 1000 feet from a school. The code was amended in 2012 to allow smoking lounges within these separation distances pursuant to a CUP showing mitigating factors to protect against adverse impacts, reviewed on a case-by-case basis. A second potential amendment would require grandfathered smoking lounges within 200 feet or a residential area to apply for a CUP, which would affect a handful of smoking lounges operating in such areas that predate the current CUP requirement and currently operate. The third optional requirement would require a minimum separation between smoking lounge locations. He advised that such separation distances currently apply only to sex-oriented businesses, large family day cares in residential areas, and emergency shelters due to operational considerations. Mr. Borrego indicated staff considered these options but after close analysis of existing lounges, it was difficult to come up with a one-size-fits-all regulation, as there are several lounges within 200 feet of a residential area that generate few to no calls to code enforcement or police. Mr. Borrego explained the next steps of the process, if Council chose to move forward with the amendments. Staff would draft specific language for inclusion in the code, Planning Commission review and recommendation during a public hearing, and Council consideration through the ordinance introduction and adoption process. He acknowledged the many perspectives on regulating smoking establishments, stating that staff felt the proposed amendments balance the needs of existing business owners with those of the surrounding community. Mr. Borrego announced staff did perform outreach on this issue by mailing a letter on April 21 to all smoking lounge businesses about this item, sending a subsequent email when the agenda and staff report were available for review, and working with West Anaheim stakeholder groups. Mayor Tait expressed concerns on potentially putting some businesses out of business and requested a workshop for the businesses themselves to get their input, learn how they operate, and find better ways of doing things. Mayor Tait then moved to continue Item 29 until after the budget hearings to allow for an informal briefing to stakeholders and operators to explain state law and what the City was doing, allow for their input, and look for less intrusive ways of implementing the regulations. Mayor Pro Tem Kring agreed with a continuance, discussed good efforts that had been made to diminish resident complaints, wished to support business owners and obtain their input, and seconded the motion to continue. Council Member Vanderbilt asked for confirmation that the process and discussion have been open and led to the current suggestions, with Mr. Borrego confirming same and offering to continue meeting with and working with concerned communities. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members Kring, Murray, Brandman, and Vanderbilt). NOES—0. Item 29 continued to July 21, 2015. 5:30 P.M. PUBLIC HEARINGS: City Council Minutes of May 5,2015 Page 28 of 32 30. This is a public hearing to consider a resolution pursuant to Section 147(f) of the Internal Revenue Code of 1986 with respect to the proposed issuance by the Anaheim Housing B137.1 Authority of its multi-family housing revenue bonds in an aggregate principal amount not to exceed $15,000,000 in order to finance the acquisition, rehabilitation and equipping of the multifamily rental housing project Pebble Cove Apartments. John Woodhead, Executive Director of Community Development, explained this action was to approve conduit financing bonds to be issued by the Anaheim Housing Authority, pursuant to this TEFRA hearing. He reported the Pebble Cove Apartments were an existing 112-unit multi- family affordable housing complex located at 2555 W. Manchester Ave. The developer, 2555 West Winston Road, has requested the issuance of tax-exempt bonds to finance their acquisition and rehabilitation of the apartment complex. Such bond financing has been routinely used for as-risk affordable housing developments such as Pebble Cove and, as the issuer, the Housing Authority could require the developer to address critical capital improvement needs and incorporate current building standards as well as extend the affordability period so low income families could have safe affordable housing options. Mr. Woodhead reported the Housing Authority adopted a resolution of its intention to issue such bonds on March 25, 2014, allowing the Housing Authority to provide conduit bond financing as required by state and federal law and fulfilling federal tax law requirements under the Tax Equity and Fiscal Responsibility Act (TEFRA). Mr. Woodhead further stated notice of the public hearing was published in the Anaheim Bulletin on April 23, 2015 and in order to move the project forward and complete the California Debt Limit Allocation Committee application process, staff requested approval of the resolution in accordance with Section 147f of the Internal Revenue Service Code. The proposed bond issuance would not exceed $15 million and would be repaid from project revenues providing no risk default to the City or Housing Authority, which would receive 1/8 of 1% of bond amount at the time of issuance and annually thereafter to monitor affordable units. Mr. Woodhead advised, in response to Mayor Tait, the develop was Marion and Company, which formed a LP named 2555 West Winston LP. Mayor Tait opened the public hearing. Hearing no public comment, Mayor Tait closed the public hearing. Mayor Tait confirmed there was no risk to the City and moved to approve RESOLUTION NO. 2015-162 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to Section 147(f) of the Internal Revenue Code of 1986 approving the issuance of bonds by the Anaheim Housing Authority for the Pebble Cove Apartments; seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES —5: (Mayor Tait and Council Members Kring, Murray, Brandman, and Vanderbilt). NOES—0. Motion Carried. 31. This is a public hearing to consider an ordinance amending Chapter 10.18 of Title 10 of the Anaheim Municipal Code relating to Anaheim's water conservation and water M142 shortage contingency rules and regulations, declaring a Severe Water Shortage, ordering implementation of Water Reduction Plan III, rescinding Resolution No. 2014- City Council Minutes of May 5,2015 Page 29 of 32 151 and finding that said ordinance is not subject to the California Environmental Quality Act pursuant to California Water Code section 10652. Dukku Lee, Public Utilities General Manager, presented background photos and statistics of how the drought has progressed throughout California over the last three years with now 44% of the State in an exceptional drought and a snow pack of only 6%. Mr. Lee announced Governor Brown had issued an Executive Order mandating a 25% statewide reduction in water use which the State Water Board divvied up across the various water agencies, assigning nine tiers of reductions ranging from 6% to 36% based on a 3-month period of per capita water usage from the summer of 2014, with Anaheim landing in middle of the 20% tier. He advised that the State could assess penalties up to $10,000 per day for noncompliance. In addition, Metropolitan Water District allocated water at Level 3, which was a rationing of water supplies. Mr. Lee reported the city would have to reduce its amount of imported water, roughly 1/3 of water used in Anaheim, by 15% or be assessed a surcharge up to 3 times the amount. He also reported that groundwater pumping percentage was down a couple percent and staff was monitoring all three areas closely. Mr. Lee presented information about Anaheim's water use, referencing pre-recession usage of 77,000 acre feet per year for all water usage (residents/businesses/etc.). As a result of the economic recession, usage dropped significantly. Today, he commented, conservation efforts by businesses and residents as well as building code changes, the increase of water usage coming with the economic recovery has not risen back to the 77,000 mark. Mr. Lee highlighted the department's Water Recycling plant next to City Hall where approximately 50,000 gallons of water is recycled daily for use in outdoor irrigation and in the dual plumbing system in Anaheim West Tower; recycled water used for operational purposes at Canyon Power Plant and ARTIC; and the efforts of other city departments including smart, weather based water controls at parks and a grant received from MWD to replace 20 acres of turf at Anaheim Hills Golf Course. Staff recommended Council implement Water Reduction Plan III to mirror the state's restrictions of watering two times per week, which also included instituting nighttime water, requiring shut- off nozzles on hoses, and making mandatory on restaurants that water only be served upon request and hotel linen laundering practices. Plan III addresses extreme, exceptional drought conditions leaving Plan IV available for Council consideration in an emergency situation such as regional transmission issue. Mr. Lee outlined the two-day per week watering schedule: odd-numbered addresses watering Tuesday and Saturday and even-numbered addresses watering Sunday and Thursday. He also explained the alternative compliance plan for large customers with more than three acres of outdoor space and multiple water meters which could create their own plan to allocate their water usage differently to achieve a 20% reduction in water use. He announced available rebates for high-efficiency and mist-rotating nozzles which use fewer gallons of water per minute as well as available variances for special circumstances customers may have. City Council Minutes of May 5, 2015 Page 30 of 32 Mr. Lee explained the State also required agencies report enforcement and any type of citations or penalties distributed by the City. As such, the Public Utilities Department was working with Code Enforcement on a 3-step process: 1) Utilities employees would provide educational information, explain the new watering schedule, and offer rebate programs; 2) Code Enforcement notification of potential fine(s) if they do not make corrective actions; 3) Carry out fine(s). While the Governor increased the $500 maximum fine to $10,000, Utilities staff was not recommending such increased fines but was focusing on education, reserving any fines for those who refused to change their practices. Mr. Lee also announced various available customer assistance programs, including an additional $1 from MWD for turf removal program, a zero interest loan program, and a small business direct install program where an expert performs a survey of irrigation for overwatering/over-spraying and will offer to install a weather- based controller on the spot. Mayor Tait remarked that every city has to do its part and Anaheim is fortunate to be at the 20% reduction level, not the maximum 36% like other cities. He indicated Orange County had done a lot of wastewater recharge and achieved tremendous savings, sharing his thoughts that 20% is an achievable goal. He also stated the City was not interested in raising revenue or fining people, rather having the Utilities Department work with customers to get to necessary levels. Mayor Pro Tem Kring recognized that many people have been conserving water in various ways for years, questioned why reductions hadn't been implemented earlier in the drought, and requested information on how the plan would be publicized. Mr. Lee announced the Utilities Department would utilize bill inserts, website, social media, and more concentrated efforts to reach out to customers with an educational campaign, especially as they continue to receive many phone calls about restrictions and impacts. Additionally, the department has recommended to the State Board to broadcast consistent messages, across the state, via radio stations. Mr. Lee further stated that water usage had been in decline since 2006 and water use did not become a primary issue until economic recovery conflicted with the existing drought. He related the City did not want to get too far ahead of the state with mandatory restrictions and wanted to maintain consistency with other water agencies. Responding to further questions, Mr. Lee explained the Dad Miller Golf Course receives most of their water from a well and that the department was speaking with all stakeholders, particularly about the alternative compliance plan which would allow flexibility in keeping frontage areas more green while allowing back areas to go brown, allow for children's play areas to remain watered while scaling back elsewhere, etc. He encouraged customers to submit rebate applications as soon as possible as the funding may not be available shortly. Mayor Pro Tern Kring questioned the practice of restaurants serving water without request, with Mr. Lee responding staff was in the process of reaching out to restaurants and hotels and offering free placards, with 53 restaurants and 25 hotels participating, and other restaurants requiring corporate approval of such items. Council Member Vanderbilt reminded users to switch their automatic sprinklers and requested staff provide technical assistance as needed. Mr. Lee announced they were in the process of hiring two temporary "Water Savers" to visit homes and educate the community by walking them through steps to change settings or to install weather based controllers. Council Member _ _ City Council Minutes of May 5, 2015 Page 31 of 32 Murray requested all information be added to the website with a checklist for rebate programs, mandates, consequences, etc. in an easily accessible location. Mayor Tait opened the public hearing. Hearing no public comment, Mayor Tait closed the public hearing. Mayor Pro Tern Kring moved to introduce ORDINANCE NO. 6332 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 10.18 of Title 10 of the Anaheim Municipal Code relating to Anaheim's water conservation and water shortage contingency rules and regulations, and based upon the finding and determination that said ordinance is not subject to the California Environmental Quality Act pursuant to California Water Code Section 10652; seconded by Council Member Murray. Mayor Tait requested staff place the watering schedule prominently on the city's webpage, with Mr. Lee agreeing and presenting plans for refrigerator magnets and educational materials at the Water Expo on June 6. ROLL CALL VOTE: AYES —5: (Mayor Tait and Council Members Kring, Murray, Brandman, and Vanderbilt). NOES—0. Ordinance Introduced. REPORT ON CLOSED SESSION ACTIONS: NONE COUNCIL COMMUNICATIONS: Council Member Brandman spoke of his attendance at the Kaboom!, Build at Twila Reid and the Cindo De Mayo Fiesta. He announced the 9th Annual Health Fair on May 29-31 at the Convention Center. Council Member Murray cheered on the Anaheim Ducks and spoke of her attendance at the Dia del Nino Celebration and requested a recognition be presented to the soccer league involved in the program. She announced the Job Fair on June 17 and provided comments about the multi- service shelter. Council Member Vanderbilt highlighted the musical event hosted by the Anaheim City School District and the Higher Ground ribbon cutting. Mayor Pro Tem Kring reported on her attendance to the 50th Anniversary Gala of the OC Fair Housing and the Opening Ceremony for ART (Anaheim Resort Transit). She requested staff work with lobbyist to bring back worker's compensation regulation and wished all mothers a Happy Mother's Day. Mayor Tait shared his travels to India and his time with Dalai Lama and Archbishop Tutu and reported it was not a city sponsored event. He requested the City Treasurer provide a report to Council on the City's debt. City Council Minutes of May 5,2015 Page 32 of 32 ADJOURNMENT: With no other business to conduct, the meeting was adjourned at 11:04 P.M. àe ully submitted, 411. e Linda N. Andal, CMC City Clerk