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12/03/2018.specialANAHEIM CITY COUNCIL SPECIAL MEETING OF DECEMBER 3, 2018 The special meeting of December 3, 2018 was called to order at 4:12 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 30, 2018. PRESENT: Mayor Tom Tait and Council Members Jose F. Moreno, Kris Murray, Denise Barnes, Lucille Kring, and Stephen Faessel. ABSENT: Council Member James Vanderbilt STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk Linda Andal. INVOCATION: Mayor Tait held a moment of silence in lieu of an invocation. FLAG SALUTE: Mayor Pro Tem Moreno ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: None CONSENT CALENDAR: 1. Approve the Agreement for Sale of Property and Joint Escrow Instructions, in substantial AGR -11314 form and conditional upon the parties agreed upon terms, in the amount of $3,950,000, by and between Cheshire Moon Properties, LLC and the City of Anaheim for the property located at 3035 East La Mesa Street, Anaheim, California (Property), for purposes of constructing a temporary homeless shelter of up to 125 beds, and authorize the Director of Community and Economic Development (Director), or designee, to execute and administer the agreement, and other documents as may be necessary to consummate the transaction; the agreement shall not take effect unless and until various terms are met and it is executed by the Director following approval by the City Attorney; Determine that the best interests of the City of Anaheim are served by authorizing and approving the transactions contemplated herein, which include among other things, the waiver of the requirements of City Charter 1211 (Contracts on Public Works) and the requirements of Anaheim Municipal Code Chapter 10.06 (Design -Build Contracting for Public Works Projects) pursuant to Resolution No. 2018-118, declaring a shelter crisis, among other actions, direct and authorize the Public Works Director, or designees, to execute and deliver either a Design -Build Agreement or a Design -Bid -Build Agreements with a selected licensed contractor for the design and/or construction of the Project, in an amount not to exceed $2,000,000, and the waiver of irregularities, if any, in any of the proposal documents, authorize and direct the City Manager to execute all other related documents and to take such actions as are necessary to implement and administer either the Design -Build Agreement or the Design -Bid -Build Agreements; and authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions in accordance with Public Contract Code section 22300; City Council Minutes of December 3, 2018 Page 2 of 6 Waive Council Policy 4.1 and approve and authorize the City Manager to enter into an agreement, in substantial form, that shall be reviewed and any revisions approved by the AGR -11315 City Attorney, with Illumination Foundation, for start-up costs, in the approximate amount of $200,000 and site design and operation of the temporary homeless shelter for one year with two one-year renewal options, in an amount not to exceed $2,515,625 per year; the agreement shall not take effect unless and until various preconditions are met and it is executed by the City Manager following approval by the City Attorney; Determine this action to establish and operate a temporary homeless shelter during a shelter crisis is categorically exempt from CEQA pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15301 (categorical exemption for existing facilities), 15303 (categorical exemption for new construction or conversion of small structures), 15304 (categorical exemption for minor alterations to land), and 15332 (categorical exemption for in -fill development projects). Additionally, none of the exceptions to the categorical exemptions identified in CEQA Guidelines Section 15300.2 apply; and Increase the Public Works FY 2018/19 budget by $2,000,000, Community Development Department's FY 2018/19 budget by $3,950,000, and City Administration FY 2018/19 budget by $1,457,812.50. The remaining cost for services will be budgeted in future fiscal years, accordingly. Executive Director of Community Development John Woodhead presented the staff report and advised that on January 26, 2018, the City became one of multiple defendants in the federal case of Orange County Catholic Worker v. Orange County, et al, for alleged violations of federal and state civil rights, fair -housing, and/or disability laws against the homeless. He also advised that on July 26, 2018, a first amended complaint was further filed alleging violation of enforcing the Anaheim Municipal Code most of which related to the anti -camping ordinance. On November 2, 2018, the City settled with the plaintiffs by committing to construct and fund one or more low -barrier homeless shelters within Anaheim, to hold at least 325 beds with a goal of completing construction by January 2019. The construction of shelters would also allow the City to be better able to enforce anti -camping and public property storage laws and park hours and rules. He reported that the Anaheim City Council declared a shelter crisis on August 14, 2018 and empowered City staff to take immediate action to provide needed shelter and services. He further advised that approval of the recommended actions was consistent with Resolution No. 2018-009, would help satisfy the settlement, and would help the City restore parks, neighborhoods, and streets. Mr. Woodhead reported that Cheshire Moon Properties, LLC, owns a 12,192 square foot building located at 3035 East La Mesa Street in the City of Anaheim which the seller has offering to sell to the City at fair market value. Immediately upon the transfer of the property to the City, the City intends to construct improvements to the building and subsequently enter into an agreement for the operation of the shelter. The terms of the sale provide for a purchase price of $3,950,000, with the seller relocating the building's current tenant and closing escrow on an extremely expedited basis. He further advised that the seller has graciously agreed to grant access to the building to City staff so that the City can commence construction of improvements immediately upon the tenant's vacation of the building. Staff is requesting that the Public Works Director be authorized to enter into agreements for those improvements, provided that expenditures do not exceed $2,000,000 in the aggregate. City Council Minutes of December 3, 2018 Page 3 of 6 Mr. Woodhead described the property changes that would be needed to convert the existing space into a temporary homeless shelter that may hold up to 125 beds. To help expedite the project, the City plans to utilize Design -Build, Design -Bid -Build, or a combination as the project delivery methods, in addition to the already available on-call professional services agreements and master construction agreements. He advised that staff will negotiate a contract scope and price based on the performance criteria, project approach, schedule, minimum entity qualifications, and any other information necessary to deliver the project. Construction of the offsite improvements are tentatively scheduled to begin in December, and the building improvements will commence as soon as the premise is vacated at the end of December. The work is to be substantially completed in January. Mr. Woodhead advised that this action to establish and operate a temporary homeless shelter during a shelter crisis is categorically exempt from CEQA. After determining that this project is categorically exempt from CEQA, the City will file a Notice of Exemption with the County Clerk - Recorder, which starts a 35 -day statute of limitations for challenges of the decision. City Clerk Linda Andal reported that approval of the items would allow the City to move forward with the second homeless shelter. The proposed service contract with Illumination Foundation is for one year with two, one-year renewal options. She reported that the primary focus is what the shelters will look like, what services will be provided, and how to return the City to a peaceful living environment for all residents. Ms. Andal reported that Illumination Foundation has been intimately involved with the Federal Court case and was very familiar with Anaheim's homeless population. Given the state of crisis, their expertise will help and will allow the City to work with the architects to quickly construct the shelter in a manner that would be most useful and beneficial to the population the City wished to serve with dignity and respect. She further advised that, upon approval, there would be three service providers in Anaheim: Salvation Army, Mercy House, and Illumination Foundation, which will provide Anaheim with more options. Ms. Andal reported that immediately following City Council's direction to go into negotiations with the Piano Store, Chief Communications Officer Mike Lyster reached out to neighboring properties and she contacted the County of Orange, given that this shelter will be across from Bridges at Kraemer. She noted that over the next month the City will develop an operational and security plan with Illumination Foundation and will ensure neighboring residents are included. With City Council approval, staff will work on the second shelter immediately. Ms. Andal provided a rendering of the shelter and listed the site amenities. She displayed a photo of the grading at the Salvation Army site, with credit going to Public Utilities General Manager Dukku Lee for working so quickly with Salvation Army. She advised that with City Council approval, and under Public Works Director Rudy Emani's leadership, the shelter would be constructed with the same level of urgency. Ms. Andal spoke about some residents' concerns of a warehouse -type shelter and sub -standard services which she stated were untrue. She reported that access to the site will be on a referral basis, meaning there will be no -walk ins, but they simply need to be referred by an authorized representative of the City, Anaheim police officer, City Net, Drug Free Anaheim, etc. which ensures the safety of the residents already residing in the shelter. She spoke about the services and the safety precautions to put businesses and residents at ease, including 24/7 security inside and outside the buildings. Lastly, she highlighted the City Council accomplishments in the City Council Minutes of December 3, 2018 Page 4 of 6 last year which include launching an intuitive Homeless webpage, obtaining grant funds, and increasing partnerships with service providers. She thanked all of the departments that have worked to so hard to get to this point. City Attorney Robert Fabela advised City Council that the portion of the agreement that waives the bidding requirement due to the emergency presented requires a 4/5 vote in order to comply with California Government Code Section 22050, and City Council should base its vote on the emergency crisis and staff report presented. DISCUSSION: Mayor Tait thanked staff for their tremendous work and noted that this was a momentous day and would fulfill the obligation of the settlement in a kind and humane way. He was very impressed with staff for negotiating this so quickly. Mr. Emani reported that the work will be completed in less than two -months but advised there was a fire line issue that needed to be addressed and have asked that it should be separated in order to expedite the construction. Mayor Tait addressed the homeless community and advised that Anaheim was very close to providing them a roof over their head. He also spoke to residents and advised them that this would allow the City to enforce the anti -camping ordinance and allow the City to reclaim those properties for their intended use. Council Member Kring asked for clarification of the voting and thanked staff for their hard work. Mr. Emani advised Council Member Kring that pets will have kennels provided and owners will have the option of taking their pets inside at night. Council Member Murray extended her appreciation to staff for their time and efforts and acknowledged that the City has stepped up in a big way. She thanked U.S. District Judge David Carter whose engagement has been instrumental in making sure all parties worked together. She thanked Illumination Foundation CEO, Paul Leon, for putting together a service portfolio that was quality and transformative for residents. She thanked Bill Taormina and Christopher Vance for putting this transaction together so quickly. In response to Council Member Murray's inquiry, Mr. Emani advised there was City staff dedicated solely to this project to ensure it was expedited. Council Member Faessel requested that the property purchase and design -build agreements be moved as separate action items. Mr. Fabela recommended that recommendation No. 2 be separated out in order to be compliant with the Government Code. Council Member Barnes asked staff to ensure that wrap-around services were provided and that once the doors were open, the homeless would be out of the parks and sidewalks. City Manager Chris Zapata advised that staff was working toward that goal. Police Chief Jorge Cisneros advised that Anaheim Police Department will enforce the laws in place in order to restore parks to their intended use. Mayor Pro Tem Moreno asked how long residents can stay in the homeless shelter to which Ms. Andal advised that there was not a time limit that a resident can stay at the shelter. However, Illumination Foundation anticipates that residents will remain for approximately 60 days as they work with them through services to get them to permanent housing. Mr. Leon advised recuperative care is about 60 to 90 days, but it depended on how much permanent supportive City Council Minutes of December 3, 2018 Page 5 of 6 housing was available. He noted that of the 60 homeless that were moved from the Santa Ana River Bed, 48 are permanently housed. Mr. Leon advised that the Illumination Foundation has a families and children's programs that will drive children to the schools that they currently attend, in response to Council Member Kring's earlier question. Mr. Leon recommended that the City Council be flexible with housing restrictions when it comes to permanent supportive housing. He believed they were in a great place with the United Way to educate and advocate. Chief Communication Officer Mike Lyster provided feedback regarding the property per Mayor Pro Tem Moreno's inquiry. He advised that he met with nine neighboring businesses and there was acceptance due to the success of Bridges at Kraemer. In terms of residents, many understand what needed to be done and what was planned. Mayor Pro Tem Moreno recommended that an advisory group of businesses and residents be formed to bring issues forward, to which Mr. Zapata advised that staff had already met with Council Member Faessel regarding similar concerns and advised the neighbors that the City Manager's office would continue to be a conduit to address issues and provide services as need. Council Member Moreno clarified that he was recommending something similar to the Police Chief's Neighborhood Advisory Council, in order to hear more consistently regarding the shelters. Ms. Andal advised that County of Orange has committed funding to the homeless shelter in response to Mayor Pro Tem Moreno's inquiry. Council Member Murray thanked Mr. Lyster and his team for all their hard work in working with the community. Council Member Faessel thanked Ms. Andal for providing historical reference for where the City was today with this issue. He remained sensitive to his District 5 residents and the proportionality of homeless shelter sites, which are all located in District 5. Mayor Tait thanked the following staff, their respective staff members, and partners for all of their work on this project: City Manager Zapata, City Clerk Anda(, City Attorney Fabela, Public Works Director Emani, Executive Director Woodhead, Community Services Director Larry Pasco, Public Utilities Director Dukku Lee, Planning and Building Director David Belmer, Police Chief Cisneros, Deputy Police Chief Julian Harvey, Paul Leon, the Salvation Army, U.S. District Judge David Carter, and the entire City Council. MOTION: Council Member Kring moved to adopt Items Nos. 1, 3, 4, and 5, seconded by Council Member Murray. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members Moreno, Murray, Barnes, and Kring). NOES — 1: (Council Member Faessel). ABSENT - 1: (Council Member Vanderbilt). Motion carried. MOTION: Council Member Kring moved to adopt Item No. 2, seconded by Council Member Faessel. ROLL CALL VOTE: AYES — 6: (Mayor Tait and Council Members Moreno, Murray, Barnes, Kring, and Faessel). ABSENT — 1: (Council Member Vanderbilt). Motion carried. City Council Minutes of December 3, 2018 Page 6 of 6 COUNCIL COMMUNICATIONS/AGENDA REQUESTS: None ADJOURNMENT: At 5:23 P.M., with no objection, Mayor Tait adjourned the special meeting of December 3, 2018. Respectfully submitted, heresa ass, CMC City Clerk