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11/22/2016ANAHEIM CIN COUNCIL REGULAR MEETING OF NOVEMBER 22, 2076 The regular meeting of November 22, 2016 was called to order at 3:05 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 November 18, 2016. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring, Kris Murray and James Vanderbilt. STAFF PRESENT: City Manager Paul Emery, Interim City Attorney Arturo Fierro and City Clerk Linda Andal. ADDITIONSIDELETIONS TO CLOSED SESSION: Arturo Fierro, Interim City Attorney, reported Item No. 4 was related to an open session item regarding an appeal of a Planning Commission decision. PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None At 3:07 P.M., City Council adjourned to closed session for consideration of the following items: CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Estate of Manuel Diaz; Genevieve Huizar, an individual, Plaintiffs - Appellants, v. City of Anaheim, a California municipal entity; Nick Bennallack, Officer, Defendants -Appellees., 9th Cir. Case No. 14-55644 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Michael W. Moore, et al., v. Flatiron West, Inc. and City of Anaheim, et al., Orange County Superior Court Case No. 30-2013-00683680 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Talmadge Price, et al. v. City of Anaheim, et al., Orange County Superior Court, Civil Complex Center Case No. 30-2016-00869305-CU-WM-CXC 4. 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. 5. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Section 54957 (b) of the California Government Code) Title: City Manager City Council Minutes of November 22, 2016 Page 2 of 22 6. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick Name of Employee Organizations: City Manager At 5:13 P.M., the council session was reconvened. INVOCATION: Pastor Mark Bove, Calvary Chapel Anaheim FLAG SALUTE: Council Member Jordan Brandman PRESENTATION: Recognizing the Miss Anaheim Fall Festival Scholarship 2016-2017 Recipients Mayor Tait recognized Debbie Herman, Miss Anaheim Fall Festival Program Director, who introduced the 2016-2017 scholarship, noting their many hours of volunteer efforts with community groups and events, and thanked City Council for their support. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming November 26, 2016, as Small Business Saturday Victoria Michaels accepted the proclamation on behalf of the Anaheim Small Business Organization (ASBO). Proclaiming December 2016, as Impaired Driving Prevention Month Proclaiming December 1, 2016, as World AIDS Day Proclaiming December 7, 2016, as Pearl Harbor Day Proclaiming December 10, 2016, as Human Rights Day At 5:22 P.M. the Anaheim Public Financing Authority was called to order (in joint session with the Anaheim 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, Cecil Jordan Corkern, Outreach Homeless Ministries, read from the Bible and offered comments related to Disneyland and police sting operations. R. Joshua Collins, Homeless Advocates for Christ, read from the Bible and offered his views on Council actions toward the homeless. William Fitzgerald, Anaheim H.O.M.E., offered comments related to the recent election and various candidates. Mayor Tait explained that while decorum was requested, the microphone was privileged and slanderous and false statements could be made. City Council Minutes of November 22, 2016 Page 3 of 22 Adam Millar, General Manager, City National Grove of Anaheim, spoke to Item No. 17 and described their partnership with the City operating the Grove, resulting in profit sharing and parking lease payments over $7.4 million, production of over 3,000 events, and serving over 2.2 million guests. He continued that they looked forward to providing further input on efforts to support the arts and a performing arts center to complement their support of the City and its tourism industry through their current operation of the Grove. Hannah Dunton thanked military men and women for their sacrifices and played a recorded song, "God Bless the U.S.A." John Dunton acknowledged Community Services Director Brent Dennis, highlighted the Mayor's Prayer Breakfast, and offered supportive comments on City efforts regarding the homeless. Mark Daniels thanked Council Member Brandman for his service to the City and requested Council stop the Lincoln Avenue widening project due to its potential impacts on traffic, Anaheim High School, St. Boniface, and Visser's Florist. Lou Noble read a scripture and asked Council to repeal the ordinance regarding camping. Denise Barnes requested Council table Item No. 17 to allow the newly -elected Council Members the ability to review that item. Leocadio White spoke to Item No. 35 regarding massage businesses and providing examples of business that did not follow regulations, such as human trafficking and payroll issues and the direct effect of unfair competition to business that followed regulations, such as her employer. Zhu Zhong (Lisa), Relax Massage, described her difficulty hiring employees due to tax and licensing requirements and encouraged regulations for professional massage establishments. Marcia Garten explained potential impacts of the proposed $10 million Lincoln Avenue expansion project on Anaheim High School, Visser's, and St. Boniface and questioned the use of 2035 traffic projections based on experiences with a previous project on Broadway. She further suggested handouts and the opportunity for questions be provided at future community meetings. Mayor Tait informed everyone there was a sign-up sheet in the lobby for more information on the Lincoln widening project. Jayne Becker expressed her disappointment with the Lincoln Avenue widening project, the limited notification of meetings, and lack of a pedestrian study and stated mailed notices should have been distributed to a wider geographic area. Mayor Tait asked staff to list community meetings on the City's website as well as ensuring the school, church, and florist were notified and could distribute notifications as well. Jose Moreno, District 3, thanked Council Member Brandman for his service to the City, welcomed Interim City Attorney Fierro, thanked City Clerk Linda Andal for managing the transition to district elections, congratulated Council Member Kring on her re-election, thanked the community and voters for their engagement, and requested Council table Item No. 17 to allow for more discussion and transparency regarding a potential cultural arts district. City Council Minutes of November 22, 2016 Page 4 of 22 Jesus Fernandez, regarding Item No. 27, expressed concerns with 24 hour permit parking, citing elderly families with children and caregivers who need to visit and care for them and a lack of driveways in the neighborhood. He requested permit parking 6 P.M. to 6 A.M. rather than 24 hours or only midnight to 6 A.M. Mayor Tait referred Mr. Fernandez to the City Manager and Public Works Director to set a separate meeting to learn more about the issues being faced and suggested tabling Item No. 27 until after such meeting occurred. Dorothy Rose, Orange County Symphony Executive Director, announced their hiring of a new conductor for the symphony, described their efforts to provide music education in the schools, and invited all to attend their holiday concert on December 4, 2016 at the Anaheim Center for the Performing Arts at Servite High School. Paula Schlue requested approval of Item No. 35, citing the need to better the massage industry in the city. Donna Acevedo -Nelson addressed officer -involved shootings and the Public Safety Board (PSB), requesting policy changes and better training for police officers. Vern Nelson requested Council cancel the Lincoln Avenue widening project and offered alternatives and addressed police oversight, accountability, and changes in police policies. Bill Dalati congratulated the Council Members on their (re)election and offered thanks to Council Member Brandman for his years of service. He requested the Council work with Orange County and the City of Anaheim to address the homeless challenges, questioning why the County was holding $90 million, and express his support of the performing arts center. Victoria Michaels thanked Public Works Director Rudy Emami for visiting her street and for the subsequent maintenance and repairs, asked the City to address rolled advertising delivered to properties, and requested "No Event Parking" signs on the 700 blocks of Dickel and Clementine Streets during events at Glover Stadium. Jay Burress, Visit Anaheim, supported the development of a performing arts center for Anaheim's residents and visitors and thanked Council Member Brandman for his service and partnership. Bryan Kaye described his experiences with police officers and city attorneys, requested a moment of silence for lives lost in officer -involved incidents, and thanked Council for being attentive during public comments. Sandra Angel stated she generally agreed with the Lincoln Avenue widening project (East to Evergreen), however questioned the noticing process as she only received her mailed notice late the day of the meeting and expressed concern with attendance at the meeting due to lack of notice. Mayor Tait requested Public Works Director Rudy Emami ensure the public had ample notice of any community meetings and to re -meet, if necessary. Rudy Gaona thanked Council for hosting the Veterans Day event, honoring and supporting him and other veterans. City Council Minutes of November 22, 2016 Page 5 of 22 Jose Espinoza offered complaints about noise, nuisances, and late hours at EI Nopal Restaurant at 530 North East Street, questioned why the business was issued a permit, and requested the Planning and Police Department address the problems. Mayor Tait requested staff review the decibels for what is allowed at the property line. Bobby Donelson disagreed with 24 hour permit parking, describing his parking experiences while at Ponderosa Park and during the campaign and requested Council review daytime limits. Cynthia Ward thanked staff for meeting with her regarding the Lincoln Avenue expansion and appreciated the project slowing down to allow for more community meetings and input. Regarding Item No. 17, she requested Council continue the item, citing potential conflicts of interest for certain council members and expressed concern about the process thus far. COUNCIL COMMUNICATIONS: None CITY MANAGER'S UPDATE: Paul Emery, City Manager, announced the City was awarded the Turning Red Tape and Red Carpet Award from the Orange County Business Council, highlighting the Anaheim Fire & Rescue and Public Utilities departments. At 6:47 P.M, the City Council session was recessed to address the Anaheim Public Financing Authority agenda and reconvened at 6:51 P.M. CONSENT CALENDAR: Council Member Vanderbilt removed Item Nos. 12, 17, 35, and 36 from the consent calendar for further discussion and Mayor Pro Tem Kring pulled Item No. 27. Council Member Brandman then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the consent calendar as presented, in accordance with reports, certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Mayor Pro Tem Kring. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). Noes — 0. Motion Carried. 8105 3. Receive and file minutes of the Public Utilities Board meeting of September 28, 2016. D117 4. Approve the Investment Portfolio Report for October 2016. 5. Approve a recognition at a later date recognizing Nancy and Ray Reese, community D114 volunteers for over 33 years of service to East Anaheim Little League, Anaheim and Katella High School. 6. Appoint Trung Le to the Anaheim Workforce Development Board, representing the B105 public sector, to a four year term ending November 21, 2020. 7. Award the contract to the lowest responsible bidder, Kordich, Inc., in the amount of $1,952,790, for the Citywide Sanitary Sewer Improvement Program/Projects, authorize AGR -10370 the Finance Director to execute the Escrow Agreement and determine the project is categorically exempt under the California Environmental Quality Act (Crescent Avenue - Euclid Street to Loara Street; Loara Street - Westmont Drive to North Street; and North Street - Loara Street to West Street). City Council Minutes of November 22, 2016 Page 6 of 22 D180 8. Accept the lowest responsive bid from La Habra Relocations, Inc., in the amount of $62,620, for as -needed moving services for Public Works for a one year period with up to four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #8781. 9. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the D180 Purchasing Agent to issue a purchase order to FARO Technologies Inc., in the amount of $73,287.89 plus applicable tax, for the purchase a 3D Laser Scanning System for the Anaheim Police Department. 10. D180 Waive the sealed bidding requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a purchase order to Sigmanet, Inc., in the amount of $170,364.28 including sales tax, for the purchase and installation of video storage equipment at the Anaheim Convention Center. 11. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing Agent to issue a purchase order to TASER International, Inc., in the amount of $359,572 D180 plus applicable tax, for the purchase of 335 tasers and related accessories for the Anaheim Police Department and authorize the Purchasing Agent to issue future purchase orders for devices, accessories and related services and execute any and all documents necessary to complete the transactions, subject to available budget appropriations. AGR -3750.A 13. Determine, on the basis of the evidence submitted by PT Metro LLC, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2005-00008 for the 2016 review period for the A -Town Metro mixed-use project consisting of approximately 1,746 residential units, approximately 50,000 square feet of commercial area, and two public parks located at 1404 East Katella Avenue in the Platinum Triangle. 14. Approve agreements with Property Specialists, Inc. dba CPSI and with Overland, Pacific AGR -4844.A & Cutler, Inc., each in an amount not to exceed $300,000, for on-call relocation services for a maximum period of five years. 15. Approve an agreement with INET, Inc. dba iParq, in an amount not to exceed $200,000, AGR -10373 for services to manage the residential permit parking system for a two year with period the option to renew for a maximum of three additional one-year terms and authorize the Public Works Director to renew the term of the agreement. 16. Approve and authorize the City Manager to execute a Workforce Innovation and AGR -10374 Opportunity Act Agreement and a CalWORKs Vocational Training Program Vendor AGR -7158.8 Agreement with Brem Industries dba California Career School, in amounts not to exceed $150,000 and $100,000 respectively, for the provision of occupational skills training through June 30, 2018 and authorize the Workforce Development Manager, or designee, to administer the agreements. 18. Authorize the Director of the Community Services Department, or his designee, to accept a bequest from the Opal Kissinger Estate, in the amount of $20,000, for the D150 Heritage Services program of the Library Division and increase the fiscal year 2016/17 revenue and expenditure appropriations in the Community Services Department budget by said amount. City Council Minutes of November 22, 2016 Page 7 of 22 AGR -8023.2 19. Approve and authorize the Planning Director to execute the Second Amendment to the Professional Services Agreement, and any related documents, with Lilley Planning Group increasing the contract amount by $250,000 for a total not to exceed compensation of $1,000,000 over the three year term of the contract for as -needed consulting and staff services for the Planning and Building Department. AGR -10376 20. Approve the Agreement for Acquisition of Real Property with Scott Brown and Jacque Brown, in the acquisition payment amount of $13,200, for partial acquisition of property located at 1002-1008 East South Street for a permanent public roadway easement and a temporary construction easement for the South Street Sidewalk Gap Closure Improvement Project (R/W ACQ 2016-00744). 21. Approve the Agreement for Acquisition of Real Property with Thomas M. Boone and Carolyn S. Collins, in the acquisition payment amount of $22,300, for partial acquisition AGR -10377 of real property located at 435 North State College Boulevard for a permanent public roadway easement and a temporary construction easement for the State College Boulevard/La Palma Avenue Intersection Improvement Project (R/W ACQ 2015-00558). 22. Approve Amendment No. 5 to Agreement No. C-1-2958 with Orange County Transportation Authority (OCTA) to reduce funding by $313,590 and extend the AGR -7084.5 agreement for six months to allow for the completion of final accounting for the Lakeview AGR -5742.6 Widening South of the OC Bridges Grade Separation Project and Amendment No. 6 to Agreement No. C-9-0413 with OCTA to increase staff overhead funding for traffic engineering services, police services, and project support services by $220,000 for Railroad Grade Separation Projects and increase revenue and expenditure appropriations in the Public Works fiscal year 2016/17 budget by $220,000. AGR -10378 23. Approve the Assignment and Assumption Agreement with ExxonMobil Oil Corporation and Torrance Pipeline Company LLC assigning the franchise for the right to maintain and operate a system of pipelines for the transportation of oil and gas in and across a portion of Jefferson Street between Atwood Channel and Orangethorpe Avenue from ExxonMobil to Torrance Pipeline Company as pertains to City Ordinance Nos. 5639 and 6119. P124 24• RESOLUTION NO. 2016-217 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. 11998, 11999, 12000, 12001, 12002, 12031, 12032,12033, and 12034) (public right-of-way purposes for the BNSF Railroad Grade Separation project at Orangethorpe Avenue). P124 25. RESOLUTION NO. 2016-218 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 12027 and 12028) (State College Boulevard/La Palma Avenue Intersection Improvement Project). P124 26. RESOLUTION NO. 2016-219 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 12029 and 12030) (South Street Sidewalk Gap Closure Improvement Project). City Council Minutes of November 22, 2016 Page 8 of 22 D175 28. RESOLUTION NO. 2016-220 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing Permit Parking District No. 57 ("Gaymont Lynrose") neighborhood and designating Gaymont Street from Rome Avenue to Ball Road, Lynrose Drive from Gaymont Street to Birchleaf Drive, and Elmlawn Drive from Gaymont Street to Birchleaf Drive as "Permit Parking Only" streets and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). 29. RESOLUTION NO. 2016-221 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM establishing Permit Parking District Neighborhood and designating Reseda Street from 504/505 South Reseda Street to Virginia Avenue and Priscilla Way from 504/505 South Priscilla Way to Virginia Avenue as "Permit Parking Only" streets and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). R100 30. RESOLUTION NO. 2016-222 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Fire Chief or his designee to submit a grant application on behalf of the City of Anaheim to the Office of Domestic Preparedness of the Department of Homeland Security for the Fiscal Year 2016/2017 Assistance to Firefighters Grant Program and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget for fiscal year 2016/2017 accordingly. 31. RESOLUTION NO. 2016-223 A RESOLUTION OF THE CITY COUNCIL OF D154 THE CITY OF ANAHEIM amending Resolution No. 2014-092, which established rates of compensation for classifications designated as Executive Management (modifying salary range for City Clerk). D154.2 32. RESOLUTION NO. 2016-224 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Letter of Understanding between the Anaheim Municipal Employees Association, Clerical Unit and the City of Anaheim (establishing the rate of bilingual compensation for the Senior Police Dispatcher classification). 33. RESOLUTION NO. 2016-225 A RESOLUTION OF THE CITY COUNCIL OF C350 THE CITY OF ANAHEIM adopting a Mitigated Negative Declaration and Mitigation C340 Monitoring Plan No. 338 for the Gramercy Park Trail Project and making the required environmental findings pursuant to the California Environmental Quality Act (CEQA). D114.1 34. RESOLUTION NO. 2016-226 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing the dates and time of regular meetings of the City Council for the 2017 calendar year. M142 37. ORDINANCE NO. 6392 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM repealing Chapters 15.03 and adding new Chapter 15.03 to Title 15 of the Anaheim Municipal Code pertaining to the California Building Standards Codes, and repealing existing Chapter 16.08 and adding new Chapter 16.08 (California Fire Code) to Title 16 of the Anaheim Municipal Code pertaining to the California Fire Code. Determine that the proposed ordinance constitutes a project falling within the definition of categorical exemptions, Section 15061(b)(3), as defined in the State CEQA Guidelines and is, therefore, categorically exempt from environmental review and authorize and direct the City Clerk to schedule a public hearing on said ordinance for City Council Minutes of November 22, 2016 Page 9 of 22 December 20, 2016 and publish notice pursuant to Section 50022.3 of the California Government Code. D114 38. Approve minutes of the City Council meetings of August 30, 2016 and September 13, 2016. END OF CONSENT CALENDAR: With no objection by Council, Item No. 27 was considered first. 27. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expanding Permit Parking District No. 38 and designating D175 Florence Avenue from Claudina Street to Philadelphia Street, Narda Street from Claudina Street to Philadelphia Street, Claudina Street from Vermont Avenue to Charlotte Avenue and Lorraine Drive from Claudina Street to the alley west of Claudina Street "Permit Parking Only" Street within Permit Parking District No. 38 and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). DISCUSSION: Mayor Pro Tem Kring addressed earlier comments about the difficulties parking around Ponderosa Park and how parking keeps getting pushed further out in certain neighborhoods. She requested different options be reviewed for parking permit in addition to, or in place of the 24 hours and 12 A.M. to 6 A.M. options. MOTION: Mayor Tait moved to table Item No. 27 until after a meeting between himself, Mayor Pro Tem Kring, and Mr. Hernandez, seconded by Mayor Pro Tem Kring. APPROVED VOTE: 5-0. Item tabled. AGR -10371 12. Approve, authorize and direct the City Manager to execute the Traffic Analysis Agreement with Angels Baseball, L.P., contingent on receiving no legal challenges against the LT Global Project through November 27, 2016, for continued assessment of traffic conditions in the Stadium area of the Platinum Triangle for a term that shall be concurrent with the duration of the term of the Amended and Restated Lease Agreement and determining that Addendum No. 6 to the previously -certified Revised Platinum Triangle Expansion Project Subsequent Environmental Impact Report No. 339 for the Revised Platinum Triangle Expansion Project, along with Mitigation Monitoring Program No. 106C, together with other previously -approved environmental documentation, serves as the appropriate environmental documentation for the proposed agreement. Kristine Ridge, Assistant City Manager, reported this item was for approval of a traffic analysis agreement between the City and Angels Baseball and authorization for the City Manager to execute the agreement. She explained that, as requested by Council Member Murray at the October 18th meeting, staff had been working closely with the Angels and their traffic consultant to develop an agreement that would enable the stadium to efficiently provide access for fans and patrons as development activity occurred in the surrounding area. She explained the proposed agreement would establish a process to assess the traffic conditions in the stadium area of the Platinum Triangle and prioritize traffic improvements planned as part of The Platinum Triangle Implementation Plan to ensure the fan experience was not degraded and traffic management costs were contained. City Council Minutes of November 22, 2016 Page 10 of 22 DISCUSSION: In response to questions from Council Member Vanderbilt, Ms. Ridge explained the Angels had worked with the developers of the LT project on the corner of State College Boulevard and Orangewood Avenue and reached a separate agreement. She added, the Angels had additional traffic concerns with both the LT project and future development activity that could occur so staff had been working with the Angels to address their concerns and were hopeful through the agreement that there would be no litigation against the LT project. She continued that staff was seeking approval of the agreement and authorization for the City Manager to execute the agreement on November 28, 2016, which would be after the statute of limitation for any lawsuit challenge to the LT project provided no litigation has been filed in the interim by the Angels. Council Member Vanderbilt questioned why the City would not wait until a future meeting to approve the contract to ensure nothing was lingering in terms of potential litigation. City Manager Paul Emery explained the Angels were seeking assurances that future studies would be approved, essentially allowing both parties to be protected through the process. Mayor Tait explained the agreement provided the Angels assurances their traffic concerns would be met and ensured all parties have a good experience getting to and from games, confirming the agreement could become null and void as the City Manager would not execute it if litigation was initiated. Council Member Murray thanked all parties for working together to ensure the greater Platinum Triangle community would be protected through additional levels of traffic management and commitments from the City. Council Member Vanderbilt questioned the timing of the proposed traffic study and expressed concerns it may occur during the baseball off-season. Ms. Ridge explained the agreement obligated both parties to create a methodology to do a baseline study, including game -day traffic, to determine what additional mitigation efforts may be needed. Mr. Emery further explained the proposed agreement provided for a methodology of selecting a traffic consultant in conjunction with Angels Baseball. Ms. Ridge concluded that the cost for the initial baseline study would be split 50/50 with the Angels and once the methodology was in place and future development activity occurred, the City would fund additional traffic analyses as needed. Mayor Pro Tem Kring moved to approve Item No. 12, seconded by Council Member Brandman. ROLL CALL VOTE: AYES - 4: (Mayor Tait and Council Members Kring, Murray, and Brandman). NOES - 1: (Council Member Vanderbilt). Motion carried. AGR -10375 17. Approve and authorize the City Manager to execute and administer an Exclusive Negotiation Agreement with the Anaheim Performing Arts Center Foundation for the potential development of a performing arts center at the existing site of the City National Grove of Anaheim in furtherance of Resolution No. 2015-257, Council Member Vanderbilt questioned how this process began, with Council Member Murray explaining Council had adopted a resolution in support of a performing arts center and working with the Anaheim Performing Arts Center (APAC) about 18 months ago, and as part of that action, Council agreed to instruct staff to work with experts to determine the feasibility of a performing arts center in Anaheim after which an extensive study was conducted. Tom Morton, Executive Director Convention/Sports/Entertainment Department, reported it was first requested during Council Communications for staff to look at the feasibility of a performing arts center at the site of the Grove or elsewhere in the city and bring back a resolution of support for working City Council Minutes ofNovember 22,0l6 Page 11 of 22 vvdhAPAC. Council Member Vanderbilt clarified that Council Member Murray individually requested staff review this issue inOctober 2D14with staff returning inOctober 2D15with the resolution that Council adopted. In response to Council Member Vanderbilt, Mr. Morton provided historical information for the potential development site: City property was sold in the 1990s for development of an entertainment center gopart ofthe Gportmtownsite, adding the site changed hands several times; the City purchased the property in 2002 from SMG; the Qb/ brought on y4ededander, o management partner, to manage the facility that is now the City National Grove of Anaheim. Mr. Morton further clarified that the purchase of the Grove, approximately two acres, was for the improvements thereon and the larger Sportstown area of approximately 11.8 acres was always city -owned, with a parking license agreement for the Grove for its immediately surrounding parking use. Mr. Morton explained that iDcontinuance ofResolution No. 2D15-257.the item before Council was anexclusive negotiation agreement (ENA)between the City and Anaheim Performing Aota Center Foundation ) for the potential development ofaperforming arts center at the existing site of the City National Grove of Anaheim. He reviewed the prior action from October 2O14where Council directed staff toexplore the feasibility ofdeveloping anew performing arts center otthe site of the Grove and return with o resolution of support between the City and APACfor the development, Hecontinued that staff first hired 8performing arts center consultant to provide a market and feasibility analysis to determine the viability of new performing arts center inAnaheim, which study found the Anaheim area to be avery strong market for arts consumption with strong local support for a new center, with over 80% of respondents in favor. On October 6, 2015, Council adopted the resolution to express support for /\PAC'econtinued efforts todevelop anew center in the city atthe Grove site. Greg Garcia, Deputy City Manager, explained that pursuant to the approved resolution, staff had been working with APAC over the past year in negotiations. The proposed ENA included a series offundraising milestones over the next four years that must bemet inorder for the project to move fonwand. Hecontinued that throughout the term ofthe proposed ENA, the City and APACwould negotiate the terms of aconveyance agreement that would include a conceptual site plan, scope ofdevelopment, and construction schedule laying out the time required tocomplete the project. Further, the ENA establishes mnegotiating period through August 31. 2020 with /\FY\C required to eeah community input within 180 days Of the execution of the ENA, propose a plan to the City within 360 days, and at least once per quarter submit progress reports 10the City. APACvvOu|d also be required tDprovide evidence mffunding in the form of bank statements orcontractually binding commitments in the amounts, and by dates, as follows: Milestone No. 1: March 1' 2018, $20 million funds raised; Milestone No. 2: K8an:h 1. 2019, $50million funds raised; Milestone No. 8: March 1. 2O2O.8O%oftotal estimated project development costs raised; and Milestone No. 4:June 8O.2O2D.100%cftotal estimated project development costs raised. The ENA also requires APACtofund any CEQAcompliance costs, secure any necessary entitlements, bear the responsibility of all pre -development costs, consider revenue sharing, and potentially be responsible for widening the Katella Avenue/Stadium Crossing entry. Mr. Garcia explained any conveyance agreement V[long term lease agreement produced under the ENA throughout the negotiation period would bebrought back to Council atolater date and there was nocurrent budgetary impact aethe ENA only provided for negotiation of adefinitive City Council Minutes of November 22, 2016 Page 12 of 22 conveyance agreement that would need to be brought back to council for consideration if the parties reached an agreement and APAC reached all milestones. DISCUSSION: Mayor Pro Tem Kring announced Dr. and Mrs. Knohl had been working on the idea of an all-encompassing performing arts center for the city since 2007. She discussed the benefits of the Grove location, offered her support, and recommended moving forward with the project. MOTION: Mayor Pro Tem Kring moved to approve Item No. 17, seconded by Council Member Brandman. DISCUSSION: Council Member Vanderbilt wished to further explore how this project came to fruition and ensure all stakeholders had been involved in the process prior to any further Council action. Mayor Pro Tem Kring referred to the staff report and no opposition offered from the surrounding neighbors such as the Angels, Gardenwalk, and LT Global, as well as no budgetary impact as reasons to move forward. In response to questions from Council Member Vanderbilt, Mr. Morton confirmed a consultant had been hired to prepare a feasibility report and market analysis for a performing arts center in the City for which the City paid approximately $75,000. Mr. Morton continued that a local constituent survey was part of the report and all came back in positive favor of a new center in Anaheim. City staff, the Convention/Sports/Entertainment Department, and APAC were involved with the consultant on the final report, which was available as a public record prior to adoption of the resolution in 2015, but not attached to the resolution itself. In response to the Mayor, Mr. Morton explained that the consultant agreement may not have been presented to City Council for approval as it fell within the City Manager's authorization for approval. Council Member Brandman explained that Council directed staff through Council Communications and consensus to move forward with consideration of a resolution which was presented in October 2015. Additionally, in order to determine the feasibility staff convened a study paid for by enterprise funds of the Convention Center, not general fund, and presented the results of the study in the staff report when they presented the resolution. Mayor Tait indicated he voted against the original resolution and questioned whether Council had previously received the report, with Mr. Morton and Mr. Brandman confirming the report results had bene included in the staff report and separately emailed to the Council. Council Member Vanderbilt questioned why the report would not be attached to the staff report for public review and discussion and noted he had requested additional information and invoices regarding any meetings the consultant may have had with local stakeholders. Upon request from Council Member Vanderbilt, Dorothy Rose, Orange County Symphony, reported her organization had not met with the consultant or APAC regarding the proposed project, with Mayor Pro Tem Kring explaining Ms. Rose may not have been included due to a letter from her several years ago that the Symphony no longer wanted to be part of APAC. Council Member Vanderbilt explained this was his approach to ensure due diligence had occurred and local arts groups had been contacted and consulted in the process and it appeared that such outreach may not have happened. Council deliberated further on the ENA. City Council Minutes of November 22, 2016 Page 13 of 22 Mayor Tait expressed concerns with the process of exclusively negotiating the purchase or long-term lease of a large piece of City -owned property without an appraisal or RFP, believed the decision should be postponed until the newly -elected Council was sworn into office, wanted more information regarding traffic, drainage, and other potential concerns for neighboring properties, and requested additional public and stakeholder outreach. He questioned whether financial statements were requested, with Mr. Garcia stating other lease agreements with non- profits such as the YMCA, Boys & Girls Clubs, and GOALS did not require financial statements. Mayor Tait advised the other properties were smaller and not in such a prime location and that he would vote against the item. AMENDED MOTION: Council Member Vanderbilt offered an amended motion to approve the agreement with an amendment to Section 4.5 of the agreement changing "or" to "and" between "bank statements" and "contractually binding commitment of funds" regarding proof of fundraising, seconded by Mayor Tait. Council Member Brandman stated he would not approve the amendment as staff had clarified the City has sole discretion to determine the validity of any contractual commitment for funding. ROLL CALL VOTE: AYES — 2: (Mayor Tait and Council Member Vanderbilt). NOES — 3: (Mayor Pro Tem Kring and Council Members Murray and Brandman). Motion failed. DISCUSSION: Council Member Vanderbilt asked additional questions regarding parking, with Mr. Morton explaining that while Nederlander currently operates adjacent parking under a separate parking license agreement, under the ENA, APAC would be required to provide adequate parking for the site via surface or garage parking. In regards to potential in-kind contributions from the City for the project, Mr. Garcia stated specific contributions were not stated within the ENA but would potentially come back as part of the conveyance/lease agreement which would also likely address parking, revenue sharing, naming rights, and other items. Regarding any contemplated price for the sale or lease of the property, Mr. Garcia stated that would be negotiated through the course of the ENA period following guidelines within the resolution and using the current model arrangements with other non-profit organizations. The Council continued to discuss general provisions of the contract. Council Member Murray referred to a letter from Michael Buss, Anaheim Arts Council, expressing support for a performing arts center and offered her own support for the item to exclusively negotiate with APAC so they could privately fundraise to build a world class center to serve the entire city and create additional revenue streams. MOTION: Mayor Pro Tem Kring moved to approve Item No. 17, seconded by Council Member Brandman. ROLL CALL VOTE: AYES — 3: (Mayor Pro Tem Kring and Council Members Murray and Brandman). NOES — 2: (Mayor Tait and Council Member Vanderbilt). Motion Carried. Prior to consideration of Item No. 35, City Clerk Linda Andal announced that following the approval of Item No. 12 on tonight's agenda, Angels Baseball submitted a letter to the City withdrawing their request for rehearing (Item No. 40) and advised that Council may vote to withdrawal the item to allow interested persons in attendance to leave. City Council Minutes of November 22, 2016 Page 14 of 22 MOTION: Mayor Tait moved to withdraw Item No. 40 from the agenda, seconded by Council Member Murray. APPROVED VOTE: 5-0. Motion carried; Item No. 40 was withdrawn from the agenda. M142 35. ORDINANCE NO. 6390 (INTRODUCTION) AN ORDINANCE OF THECITY COUNCIL OF THE CITY OF ANAHEIM amending Section 3.32.090 of Chapter 3.32 of Title 3 (Business Licenses) and various sections of Title 18 (Zoning) of the Anaheim Municipal Code relating to the licensing, siting and operation of massage establishments and finding and determining that 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, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a project, as defined in Section 15378 of the CEQA Guidelines (Zoning Code Amendment 2016-00135). DISCUSSION: Council Member Vanderbilt noted earlier speakers had questions and concerns about his item to which Code Enforcement Manager Sandra Sagert confirmed that the concerns had been fully explained and addressed and that additional follow-up would be provided to all massage parlor owners. MOTION: Mayor Pro Tem Kring moved to approve Item No. 35, seconded by Council Member Vanderbilt. APPROVED VOTE: 5-0. Ordinance introduced. 36. ORDINANCE NO. 6391 (INTRODUCTION) AN ORDINANCE OF THE CITY OF C280 ANAHEIM amending Subparagraph .05 of Paragraph .0602 (Conditionally Permitted C420 Signs) of Subsection .060 (Business And Identification Signs) of Section 18.114.130 (Sign Regulations) of Chapter 18.114 18.114 (Disneyland Resort Specific Plan No. 92-1 (SP 92-1) Zoning and Development Standards) of Title 18 (Zoning) of the Anaheim Municipal Code to permit an increase in the height of icon/themed signage elements for the Anaheim Gardenwalk Project, and finding and determining that this ordinance is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15311 of the State CEQA Guidelines (Adjustment No. 10 to the Disneyland Resort Specific Plan No. 92-1 (SP 92-1)) (Zoning Code Amendment No. 2016-00134) (to allow a water tower sign for the House of Blues). DISCUSSION: In response to questions by Council Member Vanderbilt about the ability to install roof -mounted signs, Planning Services Manager Jonathan Borrego explained roof - mounted signs were generally prohibited but there were certain portions of the city with exceptions, including the Resort and portions of downtown, where roof -mounted signage was allowed subject to certain rules. Senior Planner Elaine Thienprasiddhi further explained there was a coordinated signage program with the Gardenwalk Overlay of the Disneyland Resort Specific Plan that allowed signs that would not be ordinarily approved elsewhere in the city as long as they were consistent with the building and other signage within the project. In response to Council Member Vanderbilt, she confirmed monument and wall signage criteria for the Resort was outlined specifically within the Code but allowances were part of the coordinated sign program in the Gardenwalk Overlay. MOTION: Council Member Brandman move to approve Item No. 36, seconded by Mayor Pro Tem Kring. APPROVED VOTE: 5-0. Ordinance introduced. City Council Minutes of November 22, 2016 Page 15 of 22 AGR- 39. RESOLUTION NO. 2016-227 A RESOLUTION OF THE CITY COUNCIL 1490.v.0.2 OF THE CITY OF ANAHEIM authorizing the execution and delivery of a lease agreement with Banc of America Public Capital Corp, as lessor, and separate schedules AGR- thereto for the acquisition, purchase, financing and leasing of certain equipment within i49o.v.o.2.o.i the terms herein provided; authorizing the execution and delivery of other documents required in connection therewith; and authorizing all other actions necessary to the consummation of the transactions contemplated by this Resolution (previously approved 800 Megahertz Countywide Coordinated Communications System). Authorize the Finance Director to execute the Lease, in substantial form, with Banc of America Public Capital Corp so long as such Lease is in substantial conformance, as determined by the City Attorney's Office, authorize the Finance Director to take such actions as are necessary, advisable, or required to implement and administer the Lease, and authorize de minimis changes that do not substantially change the terms and conditions of the agreements approved hereby, as determined by the City Attorney's Office. Debbie Moreno, Finance Director, reported this item was seeking approval of a lease agreement to allow the City to acquire radios and equipment necessary to complete its obligations for the upgrade of the 800 Megahertz Communications System. She explained Council approved an amendment to a joint agreement with the County in March 2015 for operation, maintenance, and financial management of the 800 Megahertz Countywide Coordinated Communications System. At this time, Anaheim committed to fully funding the City's portions of the costs to upgrade the consoles, backbone, and radios to modernize the communications system for all police, fire, public works, and other agencies throughout the county while still providing each city with their own unique dispatch and tactical channels. At that time, the estimated costs for the City's participation in the upgrade was $14.4 million in equipment costs with $20 million in payments over 15 years. Through aggressive purchasing timelines and the availability of funds and favorable interest rates, Ms. Moreno explained the City had been able to reduce the City's total share of the equipment cost by $1.2 million and save more than $6 million over the original 15 year timeline. The proposed lease agreement would finance the remaining $6.8 million needed to upgrade the radio equipment, with pricing reflecting a 50% discount from Motorola, the radio manufacturer, which would be lost if the City did not place its order before November 25, 2016; losing the full discount would result in additional costs of more than $1 million. Ms. Moreno concluded her presentation that the proposed lease agreement was offered by Banc of America Public Capital Corporation at an interest rate of 1.87% over a 10 year term and was based on similar terms to the initial hot red radio lease approved by Council on November 13, 2015, but with an even more favorable interest rate. MOTION: Council Member Brandman moved to approve Item No. 40, seconded by Council Member Kring. APPROVED VOTE: 5-0. Motion carried. C330 40. Deny the Request for Rehearing submitted by Angels Baseball LP, relating to City Council approval of the LT Platinum Center Project and related development approvals for the project located at the northeast corner of Orangewood Avenue and State College Boulevard (Public hearing held on October 18, 2016, Item No. 37). City Council Minutes of November 22, 2016 Page 16 of 22 Item No. 40 was withdrawn from the agenda, per the applicant's request, earlier in the meeting following consideration of Item No. 17: MOTION: Mayor Tait moved to withdraw Item No. 40 from the agenda, seconded by Council Member Murray. APPROVED VOTE. 5-0. Motion carried, Item No. 40 was withdrawn from the agenda. PUBLIC HEARINGS: B130 41. This is a public hearing in accordance with Section 147(f) of the Internal Revenue Code of 1986 regarding the proposed issuance by the Anaheim Housing Authority of its multifamily housing revenue bonds, in an aggregate principal amount not to exceed $38,000,000, to finance the acquisition, rehabilitation and equipping of the senior multifamily rental housing project consisting of 178 -units plus one manager's unit located at 225 South Western Avenue. RESOLUTION NO. 2016-228 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 Miracle Terrace Senior Apartments. At 8:29 P.M. the public hearing was considered. John Woodhead, Community and Economic Development Executive Director, explained the Miracle Terrace Senior Community Partners LP, had requested the Anaheim Housing Authority (AHA) issue tax-exempt bonds to finance its acquisition and rehabilitation of the Miracle Terrace Senior Apartments. Mr. Woodhead explained bond financing had been used periodically to assist in the improvement of existing affordable housing stock and, through this financing mechanism, affordable housing developers were able to address the needs of the aging housing stock by providing building facade and interior unit improvements, new landscaping, and implementation of energy efficiency upgrades to comply with current standards. He advised, the AHA adopted a resolution regarding its intention to issue such tax-exempt bonds on October 25, 2016. The action requested by Council would authorize the AHA to provide bond financing for the project, as required by state and federal law, would fulfill federal tax law requirements under the Tax Equity and Fiscal Responsibility Act (TEFRA), and would allow submission of an application for bond allocation from the California Debt Limit Allocation Committee (CDLAC) in accordance with Section 147(f) of the Internal Revenue Code. Mr. Woodhead continued that the proposed bond issuance was in an amount not to exceed $38 million, with the bonds to be repaid from project revenues; accordingly there was no risk of default to City or Housing Authority. Additionally, AHA would receive at a minimum 1/8 of 1 % of bond amount at the time of issuance, and on an annual basis, to continue to monitor the project. Mayor Tait opened the public hearing. William Fitzgerald, Anaheim HOME, commented on what information was provided on current agendas and minutes compared to previous years. In regards to affordable housing developments, he stated they needed adequate parking to not further overcrowd the streets and additional permit parking districts. Mayor Tait closed the public comment portion of the hearing. DISCUSSION: In response to Mayor Tait, Mr. Woodhead confirmed this would be a conduit financing with no risk to the City or AHA as bondholders would have to look to the project itself City Council Minutes of November 22, 2016 Page 17 of 22 for repayment, even in the case of default, and that the project included parking consistent with the Municipal Code. MOTION: Mayor Pro Tem Kring moved to approve Public Hearing Item No. 41, seconded by Council Member Brandman. ROLL CALL VOTE: AYES - 4: (Mayor Tait and Council Members Kring, Murray, and Brandman). NOES - 1: (Council Member Vanderbilt). Motion carried. P178 42. MISCELLANEOUS CASE NO. 2013-00575 TENTATIVE TRACT MAP NO. 18046 (DEV2013-00028A) Location: 2726 West Lincoln Avenue Request: The applicant proposes the following entitlements: (i) a City Council determination of conformance with the Density Bonus Code to construct a 35 -unit condominium complex with affordable units and Tier 2 development incentives allowing reduced building setbacks; and, (ii) a Tentative Tract Map to establish a 1 - lot, 35 unit attached condominium subdivision. Environmental Determination: The City Council will consider whether to find the project to be categorically exempt from the provisions of the California Environmental Quality Act and Guidelines as a Class 32 (In -Fill Development Projects) Categorical Exemption. ACTION TAKEN BY THE PLANNING COMMISSION: Motion to approve Miscellaneous Case No. 2013-00575, and Tentative Tract Map No. 18046 Vote: 2-4 (Commissioners Henninger and Lieberman voted yes. Commissioners Caldwell, Carbajal, Dalati and Seymour voted no. Commissioner Bostwick was absent.) Motion Failed. Motion to deny the project. Vote: 4-2 (Commissioners Caldwell, Carbajal, Dalati and Seymour voted yes. Commissioners Henninger and Lieberman voted no. Commissioner Bostwick was absent.) Motion Carried. (Planning Commission meeting of October 17, 2016) (Appealed by AMG & Associates, LLC). RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Miscellaneous No. 2013-00575 and making certain findings in connection therewith (DEV2013-00028A) (2726 West Lincoln Avenue). RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 18046 and making certain findings in connection therewith (DEV2013-00028A) (2726 West Lincoln Avenue). David Belmer, Planning and Building Director, announced this public hearing was the result of an appeal of a Planning Commission decision to deny a density bonus application and tentative tract map associated with a condominium project proposed on Lincoln Avenue in west Anaheim. He explained that the Planning Commission reviewed the project at a public hearing on October 17, 2016 and denied the requested actions by a vote of 4-2 with the applicant, AMG & Associates, LLC, subsequently filing an appeal of that decision. Mr. Belmer provided the following details about the proposed project: - the 1.17 acre project site is located on the south side of Lincoln Avenue between Magnolia Avenue and Dale Avenue, with surrounding land uses including apartments to the west, vacant land and a flood control channel to the south, an RV storage yard to the east, and commercial uses across Lincoln Avenue to the north; City Council Minutes of November 22, 2016 Page 18 of 22 - the property is zoned RM -4, multi -family residential, with a General Plan designation of medium density residential; no zoning or General Plan amendments are proposed with this application; - the applicant is requesting a determination of conformance with the City's density bonus ordinance to construct a 35 -unit for -sale condominium development with a proposal to offer 10% of the units, four of the total 35, as affordable to moderate income homebuyers, which is defined as 120% of the County's median income -approximately $104,000 for a family of four; the City's density bonus ordinance requires an applicant to enter into a density bonus affordable housing agreement with the City which requires the initial purchasers of the four affordable units to meet the definition of a moderate income family which would be verified by Community and Economic Development Department; - vehicular access to the site is proposed off Lincoln Avenue, leading to a 24 foot wide drive aisle; - units are three stories, designed in a row fashion on the east of the lot with the drive aisle on the west side of site, providing access to a 2 -car tandem style garage for each unit; two levels of living area above the garage; front doors/pedestrian access to the units is on opposite side of the garage; - 70 total garage spaces are provided (two per unit) with no guest or open parking providing for site, which he noted was a concern however did comply with State density bonus law provisions as well as the City's density bonus ordinance; - approximately 7,000 square feet of landscaped area, including a common gathering area/open space element with a shade trellis, picnic tables, and landscaping; and - the units are approximately 1,000 square feet, 2 bedrooms, 2 %2 bathrooms, with a private patio on the ground floor and balcony on the second floor, Spanish architectural style with a smooth stucco finish, tile roofs, and articulation from the ground floor to the roof. Mr. Belmer reported the developer, in addition to the application for conformance with the City's density bonus ordinance, was also requesting approval of a Tentative Tract Map which would subdivide the site into one lot to allow for the condominium development, noting the subdivision map complied with all City subdivision requirements. Mr. Belmer concluded his presentation by explaining that the State of California governs the area of affordable housing. He added that Anaheim's density bonus ordinance mirrored state law and served as a companion piece of legislation, under which AMG proposes to develop this project under the density bonus ordinance which allows them to apply for a density bonus to increase project density above what is typically allowed and allows them to seek waivers, incentives, and other reductions of development standards for the purpose of facilitating affordable housing. DISCUSSION: Mr. Belmer confirmed for Mayor Tait that regulations would default to State law if the City did not have its own ordinance. In response to Council Member Murray, Mr. Belmer explained the number of affordable units in this project was 10% (4 of 35) rounded up and that specifically for this project, the City could not require developers to provide more affordable units to achieve the waivers/incentives requested under the ordinance provisions, in this case setback reduction waivers. Council Member Murray requested staff review affordability requirements going forward to potentially raise the required number of affordable units to balance the provisions of no guest parking, no service or delivery parking, and the waiver of setback requirements. City Council Minutes of November 22, 2016 Page 19 of 22 Mr. Belmer clarified that although the developer was proposing the project under the density bonus ordinance, they were in fact developing below the density allowed for the site in the General Plan but were requesting modification to the required landscape and building setbacks given the narrow nature of the site. He continued that State law precluded the City from applying development standards to a project that would have the effect of physically precluding construction unless the City can find that the reduction of standards would have a specific, adverse impact upon the health, safety, or physical environment for which there was no feasible method to satisfactory mitigate or avoid the specific, adverse impact. He further explained that any specific, adverse impact would have to be a significant and quantifiable, direct, unavoidable impact based on objective identified written public health or safety standards which, in this case, staff did not think could be met. Therefore, he explained the City did not have much discretion in granting these set back reductions, clarifying that the Planning Commission denial of the project was not primarily about the setback reductions but about the absence of guest parking. Mr. Belmer reiterated the parking on the site was tandem -style garages, two spaces per unit, with no open parking for guests, potentially resulting in guests blocking the drive aisle from emergency access or parking offsite in already impacted residential neighborhoods or in adjoining commercial properties. He concluded that while the Planning Commission denied the project as a result of the lack of guest parking, under the limitations of state law and the City's density bonus ordinance, that was not a legal basis on which to deny the project because state law does not require affordable housing projects to offer guest parking, so the only basis to deny the application would be that the setback reductions create a specific, unavoidable impact that affects health and safety. Mayor Tait questioned whether the City could require guest parking, with Mr. Belmer stating that would violate the City's ordinance and state law. Mr. Belmer continued that staff's attempts to encourage additional parking in the development were unsuccessful but that the developer had enhanced the architectural character of the project and provided additional outdoor recreation space at the request of the City and was providing home ownership for those who otherwise may not be able to afford to live in Anaheim, concluding staff had no alternative but to recommend that Council overturn the Planning Commission denial and essentially approve this project. In response to further questions from Mayor Tait, Mr. Belmer confirmed the proposed open space elements, included the patios and balconies, met the City's code. Council Member Vanderbilt, as a health and safety concern, questioned the ability of a large fire truck being able to enter and maneuver around the site. Mr. Belmer explained the emergency vehicle turnaround on the west side of the site had been implemented at the request of the Fire & Rescue Department, which had reviewed and approved the project. As Council's discretion to deny the project based on health and safety concerns was limited to setback reduction, Planning & Building and Fire & Rescue staff had reviewed the pedestrian access to the homes and determined the entrances were adequate and did not constitute a basis for denial. Council Member Vanderbilt asked whether Council was precluded from continuing this public hearing to allow for additional questioning and information gathering, with Mr. Belmer explaining the city was generally guided by the Permit Streamlining Act which required a public hearing for an appeal to be brought within a specified timeframe, which was achieved by this meeting, but that a continuance may be possible to provide further analysis and information to make a decision, with particular direction from Council for staff to review specific aspects of the project helpful and justification for such continuance. City Council Minutes of November 22, 2016 Page 20 of 22 No ex parte communications were reported by any Council Member Mayor Tait opened the public hearing. Alexis Gevorgian, AMG & Associates, explained they had been working in good faith with Planning staff for approximately three years and the project had changed during that time in response to staff concerns. He recognized that Council felt uncomfortable with the constraints under State density bonus laws, but explained their intent was to develop needed affordable housing within a high-quality project and changes had been made in regards to emergency vehicle access upon consultation with the Fire & Rescue Department. He believed arguments made regarding other scenarios applied to any project approved by the Planning Commission and City Council and, as such, this project should not be unreasonably targeted with additional requirements. He stated the project was fully compliant with State and local laws, was a quality product, and hoped Council would honor staff's recommendation and State law and approve the project as presented to assist with the affordable housing shortage in the City. In response to Mayor Tait, Mr. Gevorgian explained the initial design was a stacked -flat, rental product which was changed to a for -sale, townhome style product with lower density. Additionally, as it appeared the hearing may be continued, Mr. Gevorgian agreed to meet with his architects and staff to explore possible creative solutions to add some guest parking stalls in response to concerns about the narrow drive aisle. Council Member Murray expressed concerns about parking and increased traffic in an already impacted portion of Lincoln Avenue. Mr. Gevorgian responded that the project complied with applicable rules and that by providing four affordable units, they were allowed certain concessions regarding parking to make the project feasible. He continued that if the City would rather the project contain parking rather than affordable units, they could amend the project but the City would then have to grant variances rather than concessions, with the theory underlying the density bonus law and the Affordable Housing Accountability Act of reciprocity so they could provide something for the City (affordable housing) and the City would provide something to the developer (parking allowances). Mr. Gevorgian continued that pricing for the affordable units constantly fluctuated due to interest rates and related calculations but would be limited to 120% of AMI. Mr. Belmer reported that a financial analysis from the developer showed the market rate units selling for approximately $347,000 with a buy -down between $50,000 and $80,000 for the four moderate units to be determined because of a range of affordability. Mr. Belmer continued the occupancy would be initially limited to five occupants (two per bedroom, plus one). Mr. Gevorgian continued that in order to build the development without the affordable units but including parking, the project would be subject to discretionary action by the Planning Commission to approve variances for the site plan. In order to minimize their risk, the developers chose by -right actions by including affordable units in the development but acknowledged there was theoretically a settlement or compromise available in creating parking and eliminating the affordable units, however, expressing concern that such a project could be denied by the Planning Commission. Council Member Murray expressed her concerns with additional traffic burden in an impacted area, understood the rights afforded the project under State law, but would support a continuance to work further on the project, particularly regarding emergency vehicle access. City Council Minutes of November 22, 2016 Page 21 of 22 In response to Mayor Tait, Mr. Gevorgian confirmed there were no individual driveways but if cars were parked behind a garage there was still ample room for vehicles to go around. Additionally, Mr. Gevorgian stated they were willing to work in good faith with the City regarding an amended site plan to include parking in lieu of affordable units if staff would support variances rather than concessions as it would now be a speculative venture. Mayor Tait indicated his willingness to consider that potential solution. Mayor Pro Tem Kring expressed concerns about parking and the number of cars per resident and supported a continuance. Mr. Gevorgian speculated that six parking spaces may result by the removal of the four end units. William Fitzgerald, Anaheim HOME, expressed concerns with tandem parking, parking issues across the City resulting in permit parking districts, and potential influences by the developer to approve the project. Mr. Gevorgian, in his closing statement, recognized the Council's position regarding parking and agreed to meet with staff to explore a site plan that was more sensitive to parking issues. MOTION: Mayor Tait moved to continue the public hearing to December 20, 2016 with the public comment portion remaining open, seconded by Council Member Murray. APPROVED VOTE: 5-0. Public hearing continued to December 20, 2016. REPORT ON CLOSED SESSION ACTIONS: Arturo Fierro, Interim City Attorney, reported for Item No. 5 and 6 City Council conducted a performance evaluation of the City Manager and gave him a performance rating of Distinguished Contributor; per the City's merit matrix this will result in a 3% salary increase. Approved Vote: 3-2 (AYES: Mayor Pro Tem Kring and Council Members Murray and Brandman; NOES: Mayor Tait and Council Member Vanderbilt). COUNCIL COMMUNICATIONS: Mayor Pro Tem Kring announced the Anaheim Beautiful Holiday Lights Contest and the ability to submit nominations on-line. She spoke of the Veteran's Day event and the Green Light Campaign and wished everyone a happy and safe Thanksgiving. Council Member Vanderbilt thanked City of Anaheim employees for their service. Council Member Murray spoke of the We Give Thanks event at the Honda Center and thanked staff and safety personnel and armed services for their service. She congratulated the Orange Unified School District and CARE for their efforts and successful passage of the bond and requested they be recognized at the January 10th meeting. She thanked Council Member Brandman for his service. Council Member Brandman spoke of his accomplishments during his tenure and thanked the community, staff, and Council. Mayor Tait thanked Bottle Logic Brewing for their donation of $15,000 to ACT Anaheim, spoke of the We Give Thanks event, and the thanksgiving community event on Anna Drive. He expressed condolences to the family of Adalid Flores and his thoughts and prayers were also City Council Minutes of November 22, 2016 Page 22 of 22 with the officer and his family. He congratulated the new Council -elects, Denise Barnes, Jose Moreno and Stephen Faessel, and thanked Council Member Brandman for his service. ADJOURNMENT: With no further business before the City Council, Mayor Tait adjourned the November 22, 2016 City Council meeting at 9:44 P.M. ctfully submitted, N^<31 - Linda N. Andal, CMC City Clerk