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10/25/2016ANAHEIM CITY COUNCIL REGULAR MEETING OF OCTOBER 25, 2016 The regular meeting of October 25, 2016 was called to order at 3:01 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 October 21, 2016. PRESENT: Mayor Tait, Mayor Pro Tem Kring, and Council Members: Kris Murray, Jordan Brandman, and James Vanderbilt. ABSENT: None 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: None. CLOSED SESSION: At 3:01 P.M., Mayor Tait recessed to closed session for consideration of the following items: PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Section 54957 (b) of the California Government Code) Position Title: City Manager and City Clerk 2. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick Position Title: City Manager and City Clerk 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property 1: 2200 East Katella Avenue, Anaheim, CA 92806 Agency Negotiator: Paul Emery, City Manager Negotiating Party: Anaheim Performing Arts Center Foundation (APAC) Under Negotiation: Price and terms of Payment for Lease of Property 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: International Brotherhood of Electrical Workers, Local 47 (IBEW), International Brotherhood of Electrical Workers, Local 47 (IBEW) Part - Time Unit, Anaheim Municipal Employees Association (AMEA) Part -Time Unit, and Teamsters, Local 952 5. PUBLIC EMPLOYEE APPOINTMENT (Section 54957 (b)(1) of the California Government Code) Position: City Attorney City Council Minutes of October 25, 2016 Page 2 of 8 6. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick Position: City Attorney The Mayor reconvened the City Council meeting at 5:06 P.M Mayor Tait opened the meeting requesting a moment of silence to honor Chief Petty Officer Jason Finan, the first American killed in the military offensive to reclaim the Iraqi city of Mosul from the Islamic State, and Anaheim's Reserve Police Officer, Ken Shelton who lost his battle to cancer. INVOCATION: Pastor Bill Cao, St. Anthony Claret Catholic Church FLAG SALUTE: Mayor Pro Tem Lucille Kring PRESENTATION: Recognizing Pastor Oonna Cassanova, Children's Ministries, Anaheim First Church of the Nazarene Police Chief Raul Quezada introduced Jemma Smith, a representative of the Neighborhood Advisory Committee, and shared that Pastor Oonna Cassanova was recommended by this Committee for her excellent work in serving the children of the community. Acceptance of Other Recognitions (To be presented at a later date): Proclaiming November 2016, as American Diabetes Month Proclaiming November 2016, as Native American Indian Heritage Month Proclaiming November 2016, as Orange County Grand Jury Awareness Month Proclaiming November 2016, as Pancreatic Cancer Awareness Month Proclaiming November 2016, as Purple Heart Month Proclaiming November 1, 2016, as Extra Mile Day Danny Watkins accepted the Proclamation on behalf of Orange County Military Order of the Purple Heart, and all servicemen who gave their lives to serve our Country, including his 34 shipmates. He extended an invitation to those interested in becoming members to attend the meeting of the Order of the Purple Heart on the 4th Saturday of the month at 11:00 A.M. in the Legion Hall on Beach Boulevard in Midway City. Mayor Tait thanked him for his service to the country and shared that Anaheim was named a Purple Heart City last year. Mayor Tait called to order the Anaheim Housing Authority at 5:21 P.M. (in joint session with the City Council). 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. City Council Minutes of October 25, 2016 Page 3 of 8 R. Joshua Collins, Homeless Advocates for Christ, read a scripture and claimed that certain laws were criminalizing the homeless and Code Enforcement continued to take away unattended property of homeless individuals depriving them of their basic needs. Jim Elmore, Senior Pastor of Trinity Lutheran Church, requested a waiver of fees to relocate the church's solar panels explaining that the panels were emitting blinding light into the backyards and upper rooms of neighboring homes. He shared the cost to the church would be $11,000 to $12,000 and other incidentals like roof repairs, but this had to be taken care to remove the inconvenience to their neighbors Mayor Tait commended Mr. Elmore for being a good neighbor and requested Public Utilities General Manager, Dukku Lee to work with him in hopes of finding a solution. Jeanine Robbins voiced her opinion on campaign flyers supporting the re-election of Mayor Pro Tem Lucille Kring. Mayor Pro Tem Kring offered clarification on issues raised by Jeanine Robbins on short term rentals (STR) and the election promotional flyers. Mr. Robbins shared information that he read on a study conducted in London on `Functions of the Amygdala'. John Dunton spoke in favor of cameras in the parks. William Fitzgerald made personal allegations against council members and offered his views on the rainbow flag. Mayor Tait reminded the public the microphone was privileged and he could not limit free speech and apologized that people had to listen to uncivil comments directed towards Council Members. Council Member Brandman thanked the Mayor for his defense and apology. Lori Giroux, spoke on Item No. 11 — Permit Parking on Cherry Way. She shared the inconvenience residents experienced every day and asked Council to vote in favor of permit parking on this street. Cecil Jordan Corkern read several passages from the scripture and expressed his opinion on the need to burn all films that corrupt the minds of children. Deb Hetherington requested Council's help to solve the dilemma her neighbors faced because of rowdy and unsafe behavior of the homeless in her neighborhood. Mark Daniels expressed his thoughts on contribution limits for elections and was happy that districting was finally on the current ballot. Bobby Donelson addressed STRs and offered comments on Mayor Pro Tem Lucille Kring's vote on STIR ban. Mayor Pro Tem Lucille Kring clarified that she voted to ban STRs. Sixto Castellanos requested Council implement permit parking in the Lombard Cherry neighborhood and shared the experience he and his family are faced with on a daily basis. City Council Minutes of October 25, 2016 Page 4 of 8 Lou Noble read from scriptures and urged Council to allot vacant city property to open safe zones for the homeless and not wait until the homeless shelter was ready. Cynthia Ward offered regrets to Council Member Brandman for being subjected to allegations made by William Fitzgerald. She also expressed her dissatisfaction to the time limit provided to speakers to address multiple issues on the agenda. Victoria Michaels reprimanded the comments of William Fitzgerald and expressed her opinion that Council voted on parking permits without a detailed study. Pam Donelson commented on the vote relating to STRs. Nancy West, advocate of Domestic Violence Awareness, offered loop pins to Council to honor Domestic Violence Awareness month. She also spoke on Officer Involved Domestic Violence (OIDV) and shared literature on victims of OIDV. `The Camera Man' addressed illegal marijuana dispensaries operating in Anaheim and expressed his opinion on enforcement. Greg Diamond spoke about the election and his opinion that it was about people versus money. With no further comments from the public, Mayor Tait closed the public comment portion of the meeting. COUNCIL COMMUNICATIONS: None CITY MANAGER'S UPDATE: City Manager, Paul Emery, informed Council that a report on the Kraemer facility would be presented to Council at the November 1, 2016 meeting. At 6:22 P.M., Mayor Tait recessed the City Council to consider the Anaheim Housing Authority agenda, reconvening the City Council at 6:28 P.M. CONSENT CALENDAR: At 6:28 P.M., the consent calendar was considered. Mayor Pro Tem Lucille Kring pulled Item no. 4 and Council Member Vanderbilt pulled Item No. 12 for further discussion. MOTION: Council Member Brandman 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 to each city council member and as listed on the consent calendar, seconded by Council Member Murray. ROLL CALL VOTE: AYES: 5 (Mayor Tait, Mayor Pro Tem Kring, Council Members: Murray, Brandman and Vanderbilt) NOES: 0 D114 2. Approve minutes of the City Council meeting of July 26, 2016. B105 3. Receive and file minutes of the Library Board meetings of August 8, 2016 and September 12, 2016, Public Utilities Board meeting of August 24, 2016 and September 20, 2016 correspondence from Library Board regarding library conditions. City Council Minutes of October 25, 2016 Page 5 of 8 D116 5. Approve recognitions to be presented at a later date proclaiming November 7-18, 2016, as City of Anaheim Annual Giving Campaign and recognizing the 2016 Anaheim Beautiful Holiday Lights contest winners. D117 6. Approve the Investment Portfolio Report for September 2016. 7. Award the contract to the lowest responsible bidder, Vasilj, Inc., in the amount of AGR- $2,230,285, for the Citywide Sanitary Sewer Improvement Program/Projects and 10345 authorize the Finance Director to execute the Escrow Agreement and determine the project is categorically exempt under the California Environmental Quality Act (Cerritos Avenue from Euclid Street into the alley east of 9th Street). 8. Award the contract to the lowest responsible bidder, Miramontes Construction Co., Inc., in AGR- the amount of $1,299,905.50, for the 2016 Alley Sanitary Sewer Improvement 10346 Program/Project and authorize the Finance Director to execute the Escrow Agreement and determine the project is categorically exempt under the California Environmental Quality Act (alleys east of Claudina Street, Emily Street, and Philadelphia Street from South Street to Water Street). 9. Approve and authorize the City Manager to execute the First Amendment to Workforce AGR- Innovation and Opportunity Act Agreement with KML Enterprises Career Development, 9244.1; LLC and Career Development Solutions, LLC increasing the maximum subgrant amount AGR- from $250,000 to $350,000; and the First Amendment to CalWORKS Agreement with E. 7162.13.1 Cubics, LLC dba QBICS Career College increasing the maximum subgrant amount from $250,000 to $400,000, for anticipated additional vocational skills training enrollments through June 30, 2017 and authorize the Workforce Development Manager to administer the amendments. AGR- 10. Approve the Pavement Impact Mitigation Agreement with Walt Disney Parks and Resorts 10347 U.S., Inc., in the estimated amount of $110,732.92, that provides for compensation to the City for accelerated wear on streets effected by Disney's Frontierland Expansion heavy truck traffic. 11. RESOLUTION NO. 2016-210 A RESOLUTION OF THE CITY COUNCIL OF THE D175 CITY OF ANAHEIM designating Cherry Way from 1233 Glen Drive/1146 Cherry Way to Romneya Drive as "Permit Parking Only" street within Permit -Eligible Parking District No. 53 ("Lombard Cherry"). 13. ORDINANCE NO. 6383 (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. 2016-00290; DEV2016-00012) (719 North East Street; rezoning the property from "RM -3" Multiple -Family Residential zone to "RS -2" Single -Family Residential zone) (Introduced at Council meeting of October 18, 2016, Item No. 29). C280 14. ORDINANCE NO. 6384 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal City Council Minutes of October 25, 2016 Page 6 of 8 Code relating to zoning (Reclassification No. 2016-00295; DEV2016-00048) (807 and 807 Y2 Dale Avenue; rezoning the property from "T" Transition zone to "RS -2" Single - Family Residential zone) (Introduced at Council meeting of October 18, 2016, Item No. 30). C280 15. ORDINANCE NO. 6385 (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. 2016-00298; DEV2016-00054) (123 North Rio Vista Street; rezoning the property from "T" Transition zone to "RS -2" Single -Family Residential zone) (Introduced at Council meeting of October 18, 2016, Item No. 31). C280 16. ORDINANCE NO. 6386 (ADOPTION) AN ORDINANCE OF THE CITY OF AGR- ANAHEIM amending certain sections of Chapter 18.20 (Platinum Triangle Mixed Use 10349 (PTMU) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code (Zoning Code Amendment No. 2015-00128; DEV2015-00024) (Introduced at Council meeting of October 18, 2016, Item No. 37). ORDINANCE NO. 6387 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2015-00001 by and between the City of Anaheim and LTG Platinum LLC and authorizing the Mayor to execute said agreement for and on behalf of the City (DEV2015-00024) (Introduced at Council meeting of October 18, 2016, Item No. 37). 17. ORDINANCE NO. 6388 (ADOPTION) AN ORDINANCE OF THE CITY OF F130.2 ANAHEIM granting a non-exclusive franchise to Yellow Cab Company of Northern Orange County, Inc. dba Yellow Cab of Greater Orange County, for the purpose of operating taxicab service in the City of Anaheim; and stating the term and conditions upon which said franchise is granted (180 taxicab permits) (Introduced at Council meeting of October 18, 2016, Item No. 38). ORDINANCE NO. 6389 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM granting a non-exclusive franchise to Cabco, Inc. dba California Yellow Cab, for the purpose of operating taxicab service in the City of Anaheim; and stating the term and conditions upon which said franchise is granted (75 taxicab permits) (Introduced at Council meeting of October 18, 2016, Item No. 38). END OF CONSENT CALENDAR D182 4. Receive and file general information including actions by other municipalities related to imposing taxes or fees on video streaming services. Dukku Lee, Public Utilities General Manager, presented a report on taxes/fees on streaming video services such as Hulu or Netflix. He advised staff strongly recommended against such taxes and reported some cities and States viewed tax on video streaming services as a way to compensate for the loss of sales tax revenue due to reduced sale of music compact disc or DVDs. He further reported Chicago, San Bernardino, Glendale and the State of Pennsylvania have posted a tax on streaming services and added that Chicago is being challenged under the City Council Minutes of October 25, 2016 Page 7 of 8 Federal Internet Tax Freedom Act on the legality of levying a 9% tax on this service. He mentioned some local jurisdictions such as Pasadena were currently reviewing their utility user's tax and a need for a vote of their constituents. Mayor Pro Tem Kring thanked Mr. Lee and stated she placed this item on the agenda so that the public would know this was happening elsewhere but that she was opposed to any such taxing. MOTION: Mayor Pro Tem Kring then moved to receive and file Item No.4 seconded by Council Member Brandman. VOTE: 5-0. Motion carried. 13130 12. RESOLUTION NO. 2016-211 A RESOLUTION OF THE CITY COUNCIL OF THE AGR- CITY OF ANAHEIM (1) approving a Bond Proceeds Expenditure Agreement between the 10348 City of Anaheim and the Successor Agency to the Anaheim Redevelopment Agency providing for the transfer of excess bond proceeds by the Successor Agency to the City for bond -eligible purposes, (2) accepting such funds from the Successor Agency, and (3) making certain findings in connection therewith (Proceeds of the Anaheim Redevelopment Agency 2010 Tax Allocation Bonds (Taxable Recovery Zone Economic Development Bonds), in the amount of approximately $3.4 million, for the implementation of capital improvement projects in CenterCity). Increase the Community & Economic Development Department's fiscal year 2016/17 City budget accordingly, which will be offset by a decrease in the Successor Agency's budget. Mr. Woodhead informed Council that the Redevelopment Dissolution Act allowed a successor agency that has received a finding of completion to use bond proceeds from bonds issued prior to 2011 for the purposes for which the bonds were sold, provided that such proceeds in excess of amounts satisfied approved enforceable obligations and shall be expended in a manner consistent with the original bond covenants, and further provided that such expenditures constitute "excess bond proceeds obligations." He advised the Anaheim Successor Agency received its Finding of Completion and has proceeds from its Anaheim Redevelopment Agency 2010 Tax Allocation Bonds in the amount of approximately $3.4 million. The State Department of Finance has requested, and the Oversight Board has directed, that the Anaheim Successor Agency transfer its excess bond proceeds to the City for redevelopment purposes and in a manner consistent with the original bond covenants. Approval of the resolution will provide for the implementation of capital improvement projects in downtown including acquisition and/or construction of public buildings, facilities, structures, or other improvements, such as the Santa Ana Street improvements that was just commenced. He continued, debt service for these Recovery Zone Bonds would continue to be serviced by the Successor Agency, using the Redevelopment Property Tax Increment Fund (RPTIF). Council Member Vanderbilt inquired whether the State authorized use of the bonds and if the bonds could be used for projects in downtown. He further inquired whether bonds were to be paid back from incremental taxes from pre-existing development or future developments. Mr. Woodhead explained that the City would continue to receive money from the Redevelopment Property Tax Fund, which is the property tax that would have gone to Redevelopment had it not been dissolved. He explained the County Assessor held the money to satisfy the former Agency's obligation towards repayment of bonded indebtedness. He reported the city received direction from the State to transfer these funds to the city to enable the city to comply with the bond covenants. He explained a portion of the money would go into the coffers, but the city was under an obligation to spend the proceeds. City Council Minutes of October 25, 2016 Page 8 of 8 MOTION: Council Member Brandman moved to approve RESOLUTION NO. 2016-211 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, (1) approving a Bond Proceeds Expenditure Agreement between the City of Anaheim and the Successor Agency to the Anaheim Redevelopment Agency providing for the transfer of excess bond proceeds by the Successor Agency to the City for bond -eligible purposes, (2) accepting such funds from the Successor Agency, and (3) making certain findings in connection therewith (Proceeds of the Anaheim Redevelopment Agency 2010 Tax Allocation Bonds (Taxable Recovery Zone Economic Development Bonds), in the amount of approximately $3.4 million, for the implementation of capital improvement projects in CenterCity), 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. CITY ATTORNEY'S REPORT: The City Attorney reported the City Council held a performance evaluation of the City Clerk and rated her performance as a distinguished contributor, granting a 3% merit under the city's matrix. VOTE: 5-0. COUNCIL COMMUNICATIONS: Mayor Pro Tem Kring spoke of her attendance at the re -opening of the Euclid and Sunkist Libraries and announced the Annual Fall Festival on October 29 and the Veteran's Day celebration on November 11. Council Member Vanderbilt spoke of his attendance at the City's tree planting project at Twila Reid Park and his attendance at the Islamic Institute of Orange County Open House. Council Member Murray expressed her condolences to the family of Anaheim Reserve Officer Ken Shelton and Navy Chief Petty Officer Jason Finan. She announced the Early Vote Center at City Hall and encouraged all to come out and vote. She also announced the Annual Fall Festival and Parade to be held on October 29. Council Member Brandman stated he will see everyone at the Annual Fall Festival and Parade. Mayor Tait spoke of his attendance at the re -opening of the Euclid and Sunkist Libraries and expressed his condolences to the families of Anaheim Police Reserve Ken Shelton and Navy Chief Petty Officer Jason Finan. ADJOURNMENT: At 6:48 P.M., with no further business before the City Council and without objection, Mayor Tait adjourned in memory of Navy Chief Petty Officer Jason Finan and Anaheim Police Reserve Ken Shelton. spec ully submitted, Linda N. Andal, CMC City Clerk