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07/26/2016 ANAHEIM CITY COUNCIL REGULAR AND REGULAR ADJOURNED MEETING OF JULY 26, 2016 The regular meeting of July 26, 2016 was called to order at 3:00 P.M. and adjourned to 4:00 P.M. for lack of a quorum. The regular adjourned meeting of July 26, 2016 was called to order at 4:01 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 July 22, 2016. PRESENT: Mayor Pro Tem Lucille Kring and Council Members: Kris Murray, Jordan Brandman, and James Vanderbilt. ABSENT: Mayor Torn Tait STAFF PRESENT: City Manager Paul Emery, Acting City Attorney Kristin Pelletier, and City Clerk Linda Andal. ADDITIONS\DELETIONS TO CLOSED SESSION: None. PUBLIC COMMENTS ON CLOSED SESSION ITEMS: David Zenger, resident, expressed concerns about cost overruns with Turner Construction Company related to the expansion of the Anaheim Convention Center. He cited records he had received and questioned whether payment has been made. Cynthia Ward, CATER President, stated cost overruns were not the client's problem, but the developer's and provided background information pertaining to the work by Turner in 2014, contract and bond approval, and filing of litigation by CATER. Greg Diamond stated Council had a responsibility to not violate the Brown Act and questioned whether Item No. 1 was a bona fide closed session item. Acting City Attorney Kristin Pelletier clarified that the closed session was not for the purpose of discussing any bond financing but that there was significant exposure to litigation related to alleged construction delays, unforeseen conditions, discovered conditions, etc. which are reflected in a tort claim that is on file in the City Clerk's office. CLOSED SESSION: At 4:11 P.M., Mayor Pro Tern Kring recessed to closed session for consideration of the following items: 1. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of California Government Code Section 54956.9: One potential case involving Turner Construction Company related to cost overruns in connection with the expansion of the Anaheim Convention Center. 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: C.V. et al. v. City of Anaheim, 9th Cir. Case No. 14-55760 City Council Minutes of July 26,2016 Page 2 of 14 3. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: One potential case. 4. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick Name of Employee Organizations: Anaheim Police Management Association (APMA), Anaheim Municipal Employees Association, General and Clerical Units (AMEA) 5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property 1: 2626 E. Katella Avenue, Anaheim; APN 232-07-206; Owner: City of Anaheim Property 2: Piece of land without a distinctive address situated adjacent to and west of the Honda Center (located at 2695 E. Katella Avenue), Anaheim; APN 253-60-102; Owner: City of Anaheim City Negotiator: Paul Emery, City Manager Negotiating Party: Anaheim Arena Management, LLC Under Negotiation: Price and terms of payment for purchase and lease of property At 5:18 P.M., the City Council session was reconvened. INVOCATION: Pastor Cliff Sliger, Anaheim First Christian Church FLAG SALUTE: Council Member Jordan Brandman ADDITIONS/DELETIONS TO THE AGENDA: None. PUBLIC COMMENTS (all agenda items): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk Linda Andal Paul Kott asked for the City's support in relocating the Fall Festival community floats and equipment, at least on a temporary basis and eventually a more permanent solution, highlighting the history of the Halloween parade and volunteers. R. Joshua Collins, Homeless Advocates for Christ, read from the Bible, expressed concerns regarding treatment of the homeless, and offered his opinion that the Christian flag should be raised in recognition of those persecuted for their faith. Mayor Pro Tern Kring responded to Mr. Collins's concerns, suggesting churches would be the most appropriate places to raise the Christian flag and referencing City and County efforts to provide services to the homeless population. Cecil Jordan Corkern read a scripture from the Bible and spoke about the Star Wars presentation and Disney projects in Florida and Anaheim. Keith Olesen, speaking to Item No. 12, asked the City to help find a permanent home for the Halloween Parade's floats and equipment to keep the 92-year community tradition of the parade alive. Greg Diamond, regarding Item Nos. 21 and 22, informed Council of a potential referendum and asked them to remove the items from the consent calendar for discussion, expressing his opinion that Council did not negotiate the best deal with the hotel developers on behalf of City City Council Minutes of July 26,2016 Page 3 of 14 residents and suggesting a possible 35% TOT subsidy rather than 70% to save the City $5 million per year for use towards pensions for public service unions. Lou Noble read a Bible passage, spoke about the homeless and questioned why resources were not being used toward creating safe zones on city lots. Council Member Murray responded that the City strived to reach out to the homeless population who wanted and desired assistance by partnering with CityNet, working to build a shelter to reduce public congregating and the associated health hazards, and implementing economic policies to generate new revenue to serve the homeless and Anaheim residents. Mayor Pro Tern Kring, addressing both Mr. Noble and Mr. Collins, thought it unfair to dismiss the City's endeavors to house the homeless as through the collective effort of the police officers and other city staff, over 500 homeless individuals had been housed while others refused the opportunities presented to them. Doug Robbins, Painters and Allied Trades District Council, urged Council approval of Item Nos. 21 and 22 for the approval of the two 4-diamond hotels. He stated the two projects, together with the Disney hotel, would create 9,000 jobs for local residents and veterans, thus strengthening the local economy and tax revenue for the general fund. Philip Salerno, Local 500 Cement Masons, thanked the Council for their pro-growth votes and job enhancement policies, stating tax incentives for the 4-diamond hotels would create thousands of jobs and increase the city coffers. Bob Donelson requested Council honor the historic moment of the first female candidate to be nominated to the Presidency. Ernesto Medrano, LA/OC Building and Construction Trades Council, spoke in support of Item Nos. 21 and 22 as they would provide jobs for residents and veterans with full medical benefits and pension plans and hoped for a unanimous yes vote. Sam Hurtado, representing sheet metal workers, supported Item Nos. 21 and 22 and stated his appreciation of Council Member Murray's presentation that showcased the vision of the City to create jobsand provide opportunities to live and work in their neighborhood. Anthony Novello, UA Local 582 Plumbers & Steamfitters of Orange County, supported the two 4-diamond hotels stating they would bring approximately 9,000 construction jobs to Anaheim, of which 30% or more would be locally hired and veterans, requested Council to keep the project moving forward, and assured them they were doing the right thing for the city. Pam Donelson thanked Council for banning short term rentals (STRs) and hoped that all STRs would be gone within 18 months, voicing her concern on the home-share ordinance and the Kaleidoscope community, believing the home-share ordinance should not be considered until the STRs were eliminated from residential areas. Ada Briceno, UNITE HERE, opposed the Wincome subsidies despite their inclusion of a Project Labor Agreement as they did not include a card check neutrality agreement with a chance at good paying jobs, confirming they had not received a response from Wincome regarding such agreement. She added the City had a responsibility to protect their investment and with a 70% investment of TOT for the next 20 years there was potential for labor disputes. City Council Minutes of July 26,2016 Page 4 of 14 Council Member Murray assured Ms. Briceno the City was making sure the workers had access and their rights were upheld, finding it disingenuous to say the city did not do its part when UNITE HERE did not seek such agreement or card check neutrality until the item was already agendized for public consideration. Martin Lopez, resident and UNITE HERE Local 11, stated that he wanted to ensure the hotel workers and other workers that serviced these hotels made a good wage to ensure they could afford to live and not just work in the city, expressed doubts about the working and environmental conditions for these projects through CEQA compliance by reliance on the stale supplemental EIR-340 from 2012, and asked Council not to ratify the approvals but to go back and re-study the agreements. John Dunton expressed his thanks and paid tribute to the Battalion Chief Pat Russell, Chief Bruegman, and Deputy Chief Julian Harvey and their teams for saving him from near death through their quick thinking and prompt action when he suffered from chest pain at the previous Council meeting. William Fitzgerald, Homeowners Maintaining our Environment, offered his perspective on how the loss of TOT from the 4-diamond hotels would affect the city's future and voiced his opinion on the upcoming municipal election. Cynthia Ward requested the minutes of the June 14, 2016 meeting be amended to reflect the comment made by Mayor Pro Tern Lucille Kring ordering the public to avoid applauding and if it continued she would have the officer remove them from the meeting. Ms. Ward added this was a denial of their constitutionally-protected rights to free speech and applause was determined to be free speech by the Appellate Court. Council Member Vanderbilt asked if changes could be reflected on the minutes for June 14th with City Clerk Linda Andal confirming that changes could be made to the minutes and upon request from the Council the item could be removed for revision and returned at the subsequent meeting for approval. Ms. Andal explained that minutes reflect the discussion and the action by Council on actual items and Mayor Pro Tem Kring's directive pertained to the decorum of the meeting and was not part of any Council action. Richard Byrd, Iron Workers Local 416, urged Council to move forward on the development of the 4-diamond hotels, as presented in Item Nos. 21 and 22. Lisa Heyrend voiced her disappointment at how a matter pertaining to a medical consent form was handled by the Oak Canyon Day Camp run by the City, as the removal of her children from the program caused them great distress. Mayor Pro Tem Kring requested Ms. Heyrend meet with Acting Community Services Director Larry Pasco to further discuss this matter. Judy Morton, Neighborhood Watch and Police Chief's Advisory Committee member, voiced her concern that the Anaheim Sustainability Center, also known as a Dump Digestion Processing Center, was being planned within 1,200 feet of her home and within 1,500 feet of an elementary school and believed the stench and fumes would have ill effect on the children and the residents within its radius. She asked this item be addressed as a public hearing to give residents who would be affected an opportunity to be actively involved in this discussion. Upon request of Mayor Pro Tem Kring, David Belmer, Planning & Building Director, provided background information on the facility as follows: the project had not been brought to Council in an official capacity as it is still in the early stages of planning and City Council Minutes of July 26,2016 Page 5 of 14 public review; the Council had considered a separate item related to a power and energy agreement which is still contingent on the public hearing process for the project; the environmental documents have been prepared and circulated for public review and comment with the comment page remaining open until August 15; public input and comments will be included in the environmental analysis; many entitlement applications and permits were still pending including one from SCAQMD; the applicant has engaged in two public outreach meetings; and the city is planning a workshop before the Planning Commission that will lead to the ultimate public hearing, likely in August or September. He clarified the project was not a dump as there would be no exterior waste stored on site, it would all be internal. He added, there were a number of technical reports being prepared in association with environmental conditions, odors, and noise, and at this point the reports suggested that any impacts could be mitigated. Ms. Morton responded that she had been told by a staff member that the item had gone before Council, requested an analysis, and expressed concern that only residents living within 300 feet of the facility would be notified. Dr. Wendy Lee shared her personal family story as an STR owner and requested Council reconsider STRs in the Kaleidoscope community. Neal Lauzon, International Brotherhood of Electrical Workers Local 441, thanked Council for voting in favor of the 4-diamond hotels in the Resort area and urged them to vote unanimously to approve Item Nos. 21 and 22 as this would provide job opportunities to Anaheim residents. Tom Canfield voiced his concern regarding the food incineration project at 1300 North Lakeview. He reported there were three schools within a 6/10th mile radius of that property which would be affected by the air quality as they were located in the prevailing wind's direction. Eric Froberg, Kaleidoscope Association Board Member, thanked Council for putting their community on a future agenda for discussion. Jeff LeTourneau, regarding Item Nos. 21 and 22, agreed these projects would provide incredible jobs to residents, however he felt the Council was responsible for not negotiating the card check and neutrality agreements to protect the interests of the low-wage laborers who struggle to survive. Mayor Pro Tern Kring responded that Council was approving development agreements and not negotiating trade agreements, stating any other labor union had their own obligation to work with the developers to strike an agreement. Council Member Murray thanked Mr. LeTourneau for his comments and stated the responsibility to look out for the interests of the laborers lied with the bargaining unions and the building trades negotiated privately with the developer, not the City, to agree to certain terms. Mark Daniels, resident, voiced his opinion that while the city was on the right track to help the homeless, the efforts were insufficient considering the magnitude of the problem. Jeanine Robbins cited examples of the negative effects and nuisances created by STRs in the Kaleidoscope district, offered her belief that the City should not consider introducing an ordinance on home-sharing until the effects of the ban of STRs played out, and expressed her opinion that the proposed home-sharing ordinance should be discussed in depth before any decisions were made. She also expressed concerns regarding the subsidy vote, urged Council City Council Minutes of July 26, 2016 Page 6 of 14 to fulfill their obligation to protect the residents, and believed the City could build a safe zone for the homeless on land at Harbor and La Palma. D.R. Heywood supported Item Nos 21 and 22 urging Council to vote in favor of economic development, jobs, and millions of dollars in net revenue. Andreke Martinez thanked Council for approving Item Nos. 21 and 22 so residents could work within the city and not travel great distances to seek job opportunities. Norma Lopez, Teamsters Local 952, commended the Council on their leadership and encouraged them to vote in favor of the 4-diamond hotel projects. Mike Robbins offered his opinion on the STR ban and homelessness and offered suggestions on how to support and help the homeless. Roya Fucia, Sprinkler Fitters Local 709, praised the Council and offered support for Item Nos. 21 and 22. Magdalena Acevedo requested Council approve Item No. 17, permit parking for her neighborhood on Chalet Street near Euclid and Ball. Victoria Michaels supported Ms. Ward's request regarding minutes of the June 14th meeting to reflect Mayor Pro Tem Kring's comments on clapping. Linda Lobatos expressed her opinion that due consideration was not given to the residents before making a decision to give away $500 million toward the development of 4-diamond hotels and urged Council to pursue solutions to the homeless problem. David K., Citizens Against Legalizing Marijuana, highlighted the ill effects on health, crime, kids, families, homelessness, and the financial burden to the City and State if smoking and growing marijuana was legalized. COUNCIL COMMUNICATIONS: Council Member Vanderbilt requested staff provide an update on transportation projects, such as the ARC project, at the next City Council meeting. CITY MANAGER'S UPDATE: None. CONSENT CALENDAR: At 7:01 P.M., the consent calendar was considered with Council Member Murray pulling Item No. 4 for further discussion and Mayor Pro Tem Kring pulling Item Nos. 21 and 22. MOTION: Council Member Murray moved to waive reading in full of all ordinances and resolutions and 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 —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES — 0. ABSENT— 1 (Mayor Tait.) Motion Carried. City Council Minutes of July 26,2016 Page 7 of 14 CONSENT CALENDAR: B105 1. Receive and file minutes of the Community Services Board meeting of June 9, 2016, Library Board meetings of March 14, 2016, April 11, 2016 and June 13, 2016 and Sister City Commission meeting of May 23, 2016. D116 2. Approve recognitions to be presented at a later date recognizing Sue Ray, Council Services Coordinator, for her outstanding dedication, years of service and retirement, Anaheim students' participation in the Anaheim Active Transportation Leadership Institute, and proclaiming September 20, 2016 as National IT Professionals Day and November 16, 2016 as GIS Day. D117 3. Approve the Investment Portfolio Report for June 2016. D144.6 5. Approve the response to the Orange County Grand Jury Report titled, "Drones: Know Before You Fly" and direct the City Manager to execute a letter and forward the response to the Presiding Judge of the Orange County Court and the Orange County Grand Jury. D180 6. Accept the proposals from Level 3 Communications and Cogent Communications, in the amounts of$55,037 (plus tax and fees) and $18,000 (plus tax and fees) respectively, to provide citywide internet services for a period of two years with three one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with RFP#8690. D114 7_ Approve minutes of City Council meeting of June 14, 2016. 8. Approve an agreement with Property Specialists, Inc., dba CPSI, in the amount of AGR 10195 $49,232, for right of way acquisition/relocation and appraisal services for the Safe Routes to School Project for sidewalk gap closure on the south side of La Palma from East Street to 500 feet west of East Street. 9. Approve the Agreement for Acquisition of Real Property with Steven Curtis Walker and Lisette C. Walker, in the acquisition amount of$9,200, for partial acquisition of property AGR-10196 located at 1200 South Sunburst Way and a reimbursement, in the amount of$1,500, for the removal of a tree for the Ball Road and Sunkist Street Intersection Improvement Project (R/W ACQ 2015-00579). 10. Authorize the Acting Public Works Director, or his designee, to accept and manage an approved Comprehensive Transportation Funding Program grant, in the amount of D175 $10,174,241, for the Lincoln Avenue Right-of-Way Phase Project (West Street to Harbor Boulevard) and increase the Public Works fiscal year 2016/17 revenue and expenditure budget accordingly. City Council Minutes of July 26,2016 Page 8 of 14 11. Authorize the Acting Public Works Director, or his designee, to accept and manage an approved Railroad Crossing Section 130 Funding Program Grant, in the amount of D175 $175,500, for the Olive Street Railroad Crossing Project between Santa Ana Street and Ellsworth Avenue and increase the Public Works fiscal year 2016/17 revenue and expenditure budget in restricted grant funds accordingly. 12. Approve and authorize the Acting Director of Community Services, or his designee, to execute and administer a License Agreement with the Anaheim Fall Festival Committee AGR-10197 to use a portion of land and interior building space located at 1426 East Vermont Avenue for activities associated with the Anaheim Fall Festival and Halloween Parade and authorize de minimis changes that do not substantially change the terms and conditions of the agreement, so long as such changes are determined to be de minimis by the City Attorney's Office. 13. RESOLUTION NO. 2016-138 A RESOLUTION OF THE CITY OF COUNCIL OF P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 11976 and 11977). P124 14. RESOLUTION NO. 2016-139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain interests in real properties (City Deed Nos. 11980, 11981, 11982, 11983, 11984, and 11985). 15. RESOLUTION NO. 2016-140 A RESOLUTION OF THE CITY COUNCIL OF THE D175 CITY OF ANAHEIM expanding Permit Parking District No. 12 and designating north side of Juno Avenue from Loara Street to Gilbuck Drive, and the east side of Gilbuck Drive from Crone Avenue to 902 S. Gilbuck Drive as "Permit Parking Only" street within Permit Parking District No. 12 and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). 16. RESOLUTION NO. 2016-141 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM expanding Permit Parking District No. 13 and designating north side of Juno Avenue from Trident Street to Falcon Street as "Permit Parking Only" street within Permit-Eligible Parking District No. 13 and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). 17. RESOLUTION NO. 2016-142 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM expanding Permit-Eligible Parking District No. 29 and designating Castle Avenue from Nutwood Street to the end of cul-de-sac, Chalet Avenue from Kings Court Lane to 1714 W. Chalet Avenue, Kings Court Lane from Chalet Avenue to the end of the street, and Fann Street from Chalet Avenue to the south cul- de-sac as "Permit Parking Only" streets within Permit-Eligible Parking District No. 29 and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). City Council Minutes of July 26,2016 Page 9 of 14 18. RESOLUTION NO. 2016-143 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM designating Polk Avenue from Western Avenue to Grand Avenue as "Permit Parking Only" Street within Permit-Eligible Parking District No. 41 ("Coolidge Monroe Tyler Polk"). 19. RESOLUTION NO. 2016-144 A RESOLUTION OF THE CITY COUNCIL OF THE D154.1 CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and D154.2 conditions of employment for employees in classifications represented by the Anaheim Municipal Employees Association, General Unit (MOU effective January 5, 2016 through January 4, 2018; 2% wage increase effective pay period beginning July 1, 2016, 2% wage increase effective pay period beginning June 30, 2017 and clarifying language). RESOLUTION NO. 2016-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees in classifications represented by the Anaheim Municipal Employees Association, Clerical Unit (MOU effective January 5, 2016 through January 4, 2018; 2% wage increase effective pay period beginning July 1, 2016, 2% wage increase effective pay period beginning June 30, 2017 and clarifying language). RESOLUTION NO. 2016-146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2014-061 which established rates of compensation for job classifications designated as Confidential (2% wage increase effective pay period beginning July 1, 2016 and 2% wage increase effective pay period beginning June 30, 2017). 20. RESOLUTION NO. 2016-147 A RESOLUTION OF THE CITY COUNCIL OF D154.3 THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees in classifications represented by the Anaheim Police Management Association (MOU effective January 15, 2016 through January 14, 2018; 2% increase effective July 1, 2016, 2% increase effective June 30, 2017, and 3% increase effective January 12, 2018; City contribution for APMA represented employee with an active 457 Deferred Compensation plan). 23. ORDINANCE NO. 6378 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2015-00284) C410 (DEV2015-00101) (415 South Anaheim Hills Road; rezoning from open space to multiple AGR-10198 family residential zone) (Introduced at Council meeting of July 12, 2016, Public Hearing Item No. 27). ORDINANCE NO. 6379 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016- 00003 by and between City of Anaheim and Sagecrest, LLC, A California Limited Liability Company, and authorizing the Mayor to execute said agreement for and on City Council Minutes of July 26, 2016 Page 10 of 14 behalf of the City (Development Agreement No. 2016-00003)(DEV2015-00101) (415 0144.6 South Anaheim Hills Road; 60-unit, attached single family residential project) (Introduced at Council meeting of July 12, 2016, Public Hearing Item No. 27). END OF CONSENT CALENDAR 4. Approve the response to the Orange County Grand Jury Report titled, "Light Rail: Is Orange County on the Right Track?" and direct the City Manager to execute the letter and forward the response to the Presiding Judge of the Orange County Court and the Orange County Grand Jury. Council Member Murray encouraged residents to review the Grand Jury Report. She confirmed Anaheim has been studying a light rail project for more than 10 years and was in the process of finalizing the environmental work and that the Grand Jury concluded that Anaheim was on the right track in working towards a long-term transportation master plan that would help create an inter-county network of light rail and other transit options. MOTION: Council Member Murray moved to approve Item No. 4, seconded by Council Member Brandman. ROLL CALL VOTE: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) Motion Carried. 21. ORDINANCE NO. 6376 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016- C220 00001 by and between City of Anaheim and Good Hope International, a California AGR-10188.1 Corporation, and authorizing the Mayor to execute said agreement for and on behalf of the City (DEV2015-00120) (1700 South Harbor Boulevard; 580-room, 8-story hotel) (Introduced at Council meeting of July 12, 2016, Public Hearing Item No. 24). 22. ORDINANCE NO. 6377 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016- 00002 by and between City of Anaheim and FJS, Inc., a Texas Corporation and C220 authorizing the Mayor to execute said agreement for and on behalf of the City AGR-10190.11 (DEV2015-00134) (1030 West Kateila Avenue; 634-room, 8-story hotel) (Introduced at Council meeting of July 12, 2016, Public Hearing Item No. 26). DISCUSSION: Addressing both Item Nos. 21 and 22, Mayor Pro Tern Kring stated the new hotels would benefit residents by creating revenue that would go towards city resources like public safety, community services, and paying debts. She continued that this would be entirely new revenue that does not currently exist and would never be realized without the incentive program. She added that over a 20-year period the hotels would generate nearly $300 million in revenue and billions of dollars after the 20 year period. Ms. Kring provided alternate solutions being looked at by several surrounding cities of raising taxes and emphasized Anaheim's use of economic development was a proven policy for over 60 years to protect its residents and generate revenue without raising taxes. She continued that the three sites as currently developed with two motels and a parking lot currently generated $3.5 million per year while the proposed 4-diamond hotels would generate $14.5 million per year, even during the TOT incentive period. City Council Minutes of July 26,2016 Page 11 of 14 Council Member Vanderbilt stated it would be beneficial to have an extensive debate or dialogue on this issue as a half billion dollars was a large amount of money and many questions had been raised, particularly as related to leisure and hospitality wages being lower than the average wage of Orange County jobs per a recent Chapman University study. Council Member Murray explained the policy was based on a previous policy originally adopted 15 years ago in 2001 and then expanded in 2002. She continued that because of investment in economic developments, Anaheim had emerged out of the recession, adopted a balanced budget for four years in a row, restored cash reserves, adopted representative agreements, re- invested hundreds of millions of dollars in parks and libraries, and closed the liability gap by almost 10% in the unfunded liabilities for pensions. Council Member Murray noted the creation of thousands of jobs for residents and veterans these projects would create while becoming foundational aspects of the City's financial position and appreciated the numbers had been reviewed by an outside economic consultant, Keyser Marston, further solidifying her support for the two items. MOTION: Mayor Pro Tem Kring moved to approve Item Nos. 21 and 22, ORDINANCE NO. 6376 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016-00001 by and between City of Anaheim and Good Hope International, a California Corporation, and authorizing the Mayor to execute said agreement for and on behalf of the City (DEV2015-00120) (1700 South Harbor Boulevard; 580-room, 8-story hotel) and ORDINANCE NO. 6377 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016-00002 by and between City of Anaheim and FJS, Inc., a Texas Corporation and authorizing the Mayor to execute said agreement for and on behalf of the City (DEV2015-00134) (1030 West Katella Avenue; 634-room, 8-story hotel), seconded by Council Member Murray. ROLL CALL VOTE: AYES —3: (Mayor Pro Tern Kring and Council Members: Murray, and Brandman.) NOES— 1 (Council Member Vanderbilt.) ABSENT— 1 (Mayor Tait.) Motion Carried; Ordinances Adopted. 24. Consider appointments to city Boards and Commissions where those terms expire June 30, 2016 and appointments to fill the following unscheduled vacancies: Community Services Board, term to expire June 30, 2018, Cultural and Heritage Commission, term B105 to expire June 30, 2019, Library Board, term to expire June 30, 2018, and Parks and Recreation, term to expire June 30, 2019. All scheduled vacancies will be for a term of four years, expiring June 30, 2020, except the Sister City Commission; terms are for three years, ending June 30, 2019 (continued from Council meeting of July 12, 2016, Item No. 23). Community Center Authority: Appointment: Dale Laizure (term ending June 30, 2020) (vacancy of Paul Walters) Mayor Pro Tern Kring nominated Dale Laizure, seconded by Council Member Murray. Council Member Vanderbilt nominated Steve Kleine. Roll Call Vote for Dale Laizure: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) City Council Minutes of July 26, 2016 Page 12 of 14 Community Services Board: Appointment: Richard Licerio (term ending June 30, 2018) (Unscheduled vacancy of Teresa Shimogawa) Council Member Brandman nominated Richard Licerio and Council Member Vanderbilt nominated Leon Cisneros. Roll Call Vote for Richard Licerio: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) Cultural and Heritage Commission: Appointment: Raymond Asad (term ending June 30, 2019) (Unscheduled vacancy of Hema Patel) Council Member Vanderbilt nominated Steve Kleine and Mayor Pro Tern Kring nominated Raymond Asad. Roll Call Vote for Steve Kleine: AYES — 1: (Council Member Vanderbilt.) NOES —0. ABSTAIN — 3 (Mayor Pro Tem Kring and Council Members Murray and Brandman.) ABSENT— 1 (Mayor Tait.) Motion Failed. Roll Call Vote for Raymond Asad: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) Library Board: Appointment: David Laviquer (term ending June 30, 2018) (Unscheduled vacancy of Kenneth Shimogawa) Council Member Brandman nominated David Laviguer who was unanimously appointed by acclimation. Park and Recreation Commission: Appointment: Ryan Balius (term ending June 30, 2019) (Unscheduled vacancy of Jim Adams) Council Member Vanderbilt nominated Steve Kleine and Mayor Pro Tern Kring nominated Ryan Balius. Roll Call Vote for Steve Kleine: AYES — 1: (Council Member Vanderbilt.) NOES —0. ABSTAIN —3 (Mayor Pro Tem Kring and Council Members Murray and Brandman.) ABSENT— 1 (Mayor Tait.) Motion Failed. Roll Call Vote for Ryan Balius: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) City Council Minutes of July 26, 2016 Page 13 of 14 Planning Commission: Appointment: Jess Carbajal (term ending June 30, 2020) (vacancy of Victoria Ramirez) Council Member Murray nominated Jess Carbajal and Council Member Vanderbilt nominated Jodie Mosley. Roll Call Vote for Jess Carbajal: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) Sister City Commission: Appointment: Jerry O'Keefe (term ending June 30, 2019) (vacancy of James Dinwiddie II) Appointment: Julia McGinnis (term ending June 30, 2019) (vacancy of Ann Gallaugher) Appointment: Paul Anderson (term ending June 30, 2019) (vacancy of John Nguyen) Council Member Vanderbilt nominated Jerry O'Keefe, Mayor Pro Tern Kring nominated Julia McGinnis, Council Member Vanderbilt nominated Steve Kleine, and Mayor Pro Tern Kring nominated Paul Anderson. Roll Call Vote for Jerry O'Keefe: AYES—4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) Roll Call Vote for Julia McGinnis: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES —0. ABSENT— 1 (Mayor Tait.) Roll Call Vote for Steve Kleine: AYES — 1: (Council Member Vanderbilt.) NOES —0. ABSTAIN — 3 (Mayor Pro Tern Kring and Council Members Murray and Brandman.) ABSENT— 1 (Mayor Tait.) Motion Failed. Roll Call Vote for Paul Anderson: AYES —4: (Mayor Pro Tern Kring and Council Members: Murray, Brandman, and Vanderbilt.) NOES—0. ABSENT— 1 (Mayor Tait.) REPORT ON CLOSED SESSION ACTIONS: Kristin Pelletier, Acting City Attorney, reported the following: Closed Session Item No. 2, City Council authorized the filing of a petition for a writ of certiorari to the United States Supreme Court (Vote: 4-0; Ayes: Mayor Pro Tem Kring and Council Members Brandman, Murray, and Vanderbilt; Absent: Mayor Tait); Closed Session Item No. 3, City Council directed the City to appear as an interested party in pending litigation and advised the action, parties and other particulars would be disclosed upon inquiry once the action was initiated unless doing so would prejudice the City's ability to effectuate service of process or ability to conclude existing settlement negotiations (Vote: 4-0; Ayes: Mayor Pro Tem Kring and Council Members Brandman, Murray, and Vanderbilt; Absent: Mayor Tait); and Closed Session Item No. 4 was not considered. City Council Minutes of July 26,2016 Page 14 of 14 COUNCIL COMMUNICATIONS: Council Member Murray announced the ribbon cutting for the Olive Hills Dog Park, the unveiling of the second police dog monument to be held on August 6, and thanked staff and supporters of the police dog monuments. She spoke of her participation in the sendoff of the 2016 USA Volleyball Olympic teams and requested the following items for the next agenda: i) reschedule the August 23, 2016 council meeting to August 30, 2016, ii) prepare a resolution supporting the Orange Unified School District School Facility Bond, and iii) offer a formal presentation of the Anaheim Active Transportation Leadership Institute. Council Member Vanderbilt announced Congresswoman Loretta Sanchez's Veteran Service Workshop and Green Bird Program Clean-up, both to be held on July 30. He also revised his previous request for a transportation update to be presented at the August 23 or 30 Council meeting. Mayor Pro Tem Kring highlighted Anaheim Convention Center's designation as LEED Gold Certified, announced the 3rd Annual Vegan Fair to be held on July 30, and spoke of the 2016 Olympic Volleyball Team sendoff and her visit with the Mito, Japan Sister City students. ADJOURNMENT: With no further business before the City Council and with no objections, Mayor Pro Tern Kring adjourned the July 26, 2016 meeting at 7:44 P.M. •= tfully submitted, a tat Linda N. Andal, CMC City Clerk