01/29/2019 ANAHEIM CITY COUNCIL REGULAR AND
REGULAR ADJOURNED MEETING OF JANUARY 29, 2019
The regular meeting of January 29, 2019 was called to order at 3:00 P.M. and adjourned to 3:30
P.M. for lack of a quorum. The regular adjourned meeting of January 29, 2019 was called to
order at 3:32 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 January 25, 2019.
PRESENT: Mayor Harry Sidhu and Council Members Lucille Kring, Denise Barnes, Jordan
Brandman, Jose F. Moreno, Stephen Faessel, and Trevor O'Neil.
STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk
Linda Andal.
WORKSHOP - RESORT DEBT UPDATE
Finance Director Debbie Moreno reported the City has been exploring options for the Resort
Bonds as a portion of the bonds became callable and eligible to refinance at the end of 2017.
She introduced the Finance team, comprised of Michael Berwanger, Managing Director, PFM;
Greg Harrington, Partner, Public Finance, Orrick, Herrington & Sutcliffe LLP; and Ruth Pan, Vice-
President, Goldman and Sachs.
Mr. Berwanger reported in the mid-1990's, the City and Disney embarked on infrastructure
investments in the then-new Anaheim Resort District. The lease revenue bonds financed
construction of the Anaheim Convention Center expansion, public parking facilities, streets and
right-of-way improvements, and other City infrastructure improvements.
Mr. Berwanger stated the financing itself consisted of three series of bonds, in a total amount of
$510 million, that were sold with a 40-year repayment structure and total repayments at the time
of approximately $1.6 billion covering the principal and interest payments. He advised the debt
service on those bonds are payable by lease payments by the City. The City created an
innovative financing which was designed to limit its financial risk and help market the bonds to
the investment community at the time. He advised the core risk mitigant was limiting the amount
of each debt service payment to the Lease Payment Measurement Revenues (LPMR).
Mr. Berwanger explained the LPMR consists of three revenue streams: 3% of the 15%
TOT Rate; 100% of the incremental TOT and sales tax on Disney; and 100% of incremental
property tax on Disney. He explained the LPMR is a pledge to the bondholders (via Bond
Indenture) which dictates permitted uses of LPMR, which include payment of debt service and
associated expenses of Resort Bonds; and the purchase, redemption, or payment of Resort
Bonds. He further stated that no other uses for LPMR are permitted so long as any of the 1997
and 2017 Resort Bonds are outstanding.
Mr. Berwanger recapped the Series 1997 bonds and reported they were structured with rising
repayment (debt service) to match LPMR projections at the time. He reported the repayment
structure was achieved with a combination of Current Interest Bonds (CIBs) and Capital
Appreciation Bonds (CABs). In order to incentivize a bond insurer to help cover a bond series,
Disney provided a partial guaranty on the Series 1997 C bonds and, per the Bond Indenture, so
long as any Resort Bonds remain outstanding, LPMR after payment of debt service must be
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deposited and remain in the Special Reserve Fund (SRF), unless used to purchase, redeem, or
pay Resort Bonds.
Mr. Berwanger reported that in 2007 the City had the opportunity to refinance some of the
callable Series 1997 Bonds for debt service savings. He advised that the Supplemental
Indenture added a requirement of SRF to retain a balance of maximum annual debt service
(MADS) following use of SRF monies to purchase, redeem, or pay Resort Bonds.
Ms. Pan spoke about the current opportunities for Resort Bonds. She stated that one path would
be to remain on the status quo with the Resort Bonds remaining outstanding until fiscal year
2037. The debt service increases from $39 million in fiscal year 2019 to $106 million in fiscal
year 2037 and she noted that $106 million would be required to be in SRF to hold the maximum
annual debt service. She reported that SRF monies would continue to accumulate each year as
LPMR comes in and pays debt service and, lastly, noted that the SRF cannot be released back
to the City as long as Resort Bonds are outstanding.
Ms. Pan reported on the second option which would be to refund the callable 2007 Bonds which
achieves an approximately $30 million in savings in the current market. This would allow the City
to reshape debt service and have debt service be level over the next 18 years. She added that
over time, excess cash may be used to purchase, redeem, or pay outstanding Resort Bonds.
She and the Finance team have been analyzing opportunities for the City to reshape debt and
accelerate repayment.
Ms. Pan explained that the refunding strategy provides many benefits to the City including
providing $30 million in savings and reduces total debt by $24 million based on current market
conditions. She also advised that refunding can reshape and levelize the debt service. Lastly,
she reported the City can use some SRF monies to redeem or pay Resort Bonds.
Ms. Pan stated the next steps are to request approval of refunding from the City Council. She
noted the City will be engaging in discussions with Disney and Bond Insurers regarding the
required consents to proceed with the refunding. Once consent is obtained, the City will obtain
bond ratings and finalize bond documents so the City can prepare to go to market in the coming
months. Ms. Moreno anticipates the actions will be taken in the next few months.
Ms. Moreno reported there was currently $134 million in the SRF as of December 31, 2018, in
response to Mayor Sidhu's inquiry. Mr. Berwanger advised the proposal would allow the City to
lower the SRF requirement to $50 million and pay down the some of the debt. He advised the
City repayment timeframe could be substantially reduced.
Council Member Barnes requested the Finance team recap the presentation due to the amount
of detailed information. In addition, Mr. Berwanger explained some of the repayment strategies in
more simple terms, per Council Member Faessel's request.
Council Member Moreno thanked the Finance team for their presentation and asked for
clarification as to why he could not speak to members of the public regarding this item before it
was presented this evening. Mr. Harrington advised Council Members to avoid selective
disclosure where some people have the information that might be important to an investor.
In response to Council Member Moreno's inquiry, Ms. Moreno advised the total balance being
refinanced was $210 million with $600 million being the current balance due to appreciation on
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the capital appreciation bonds. She also advised that the LPMR cannot be renegotiated without
refunding all the bonds which would be cost-prohibitive. In addition, Mr. Berwanger advised
these bonds were pledged with the General Fund.
In response to Council Member Moreno's inquiry, Mr. Berwanger advised that while there are a
variety of factors at hand, if the market stays the same, the best timeframe this could be repaid is
within 8-10 years.
Mayor Pro Tern Kring thanked staff for all of their hard work on this complicated presentation.
ADDITIONS\DELETIONS TO CLOSED SESSION:
City Attorney Robert Fabela announced Closed Session Item No. 1 related to a threat of litigation
by Taboo, Inc. regarding the planned operation of a homeless shelter at La Mesa Street and
Closed Session Item No. 2 related to claims resulting from a sewage backup that caused
damage to commercial structures at 616 N. Anaheim Blvd.
PUBLIC COMMENTS ON CLOSED SESSION ITEMS:
Cecil Jordan Corkern, Outreach Homeless Ministries, inquired about the Disney Resort $600,000
grant towards job training.
William Fitzgerald, Home Owners Maintaining Our Environment, stated there was lack of
information on the two closed session items. He spoke of the resort debt workshop presentation
and the City Council appointees, which include the City Manager, City Attorney, and City Clerk.
CLOSED SESSION: At 4:21 P.M., Mayor Sidhu recessed to closed session for consideration of
the following:
1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of
California Government Code Section 54956.9: One potential case.
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of
the California Government Code Section 54956.9: One potential case.
At 5:01 P.M., the Anaheim City Council session was reconvened.
INVOCATION: Minister Dale Moreland, Ball Road Church of Christ
FLAG SALUTE: Council Member Jordan Brandman
PRESENTATIONS: Recognizing Western High School Football for CIF Southern Section
Division 11 Championship
Mayor Sidhu presented Western High School Football Offensive Line Coach Mario Reyes and
team members with a proclamation recognizing their CIF Southern Section Division 11
Championship. Mr. Reyes stated the team had made school history by attaining this
achievement and thanked City Council for their recognition.
City Council Minutes of January 29, 2019
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Acceptance of Other Recognitions (To be presented at a later date):
Recognizing February 2019, as American Heart Month
Recognizing February 2019, as Black History Month
Recognizing February 2019, as Career and Technical Education Month
Gail Kairis, North Orange County ROP, thanked City Council for the recognition.
Recognizing February 2019, as Make Kindness Contagious Month
At 5:08 P.M., Mayor Sidhu called to order the Anaheim Public Financing Authority and Anaheim
Housing Authority (in joint session with the City Council).
ADDITIONS/DELETIONS TO THE AGENDAS: None
PUBLIC COMMENTS: Prior to receipt of public comments, a brief decorum statement was
provided by City Clerk Linda Andal.
Cecil Jordan Corken, Outreach Homeless Ministries, reported on his outreach efforts and spoke
about the new City Council.
Mark Richard Daniels congratulated Western High School for their championship. He expressed
concern regarding Agenda Item No. 21. He further expressed concern for the homeless shelters
and felt a more permanent solution needed to be developed.
R. Joshua Collins, Homeless Advocates for Christ, expressed concern regarding the homeless
shelter facilities and their staff and was concerned about the enforcement of the anti-camping
ordinance.
Paul Hyek expressed concern about the maintenance of the temporary homeless shelters and
the treatment of residents who require medical treatment. Mr. Hyek invited City Council to the
visit the St. Angela Merici Catholic Church in Brea on Saturday mornings to witness their
homeless meal process.
William Fitzgerald, Home Owners Maintaining Our Environment, commended City Council for
starting the meeting on-time and for addressing the resort debt issue. He recommended the
Anaheim Fire Department be replaced with the Orange County Fire Authority for a cost saving of
$10 million.
Tamara Jimenez, Anaheim Lighthouse, reported she participated in the Point-in-Time homeless
count and commended CityNet and the Anaheim Police Department for their organization along
with all of the volunteers for their service. She thanked Community Preservation and Licensing
Manager Sandra Sagert for her diligent efforts. Lastly, she thanked City Council for approving
the flying of the LGBT Pride flag.
Rosaisela Lopez, OCCORD, felt Agenda Item No. 21 would be a setback to Anaheim voters and
urged City Council to vote against the ordinance. She thanked Council Member Moreno for
participating alongside protesting hotel workers on January 24' and for being courageous.
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Paul Vicknair, Commissioner, Anaheim Senior Citizen Commission, expressed concern
regarding Agenda Item No. 21 and felt a change would be a setback for Anaheim seniors.
Larry Larsen addressed Council Member Brandman regarding the passing of the flying of the
LGBT Pride flag and felt the United States, the State of California, and the City of Anaheim flags
respectively, represent all residents of Anaheim.
Jeanine Robbins read election results and noted Council Member Moreno achieved the largest
number of votes. She thanked Council Member Moreno for supporting hotel workers during the
Unite Here Local 11 protest.
Paul Kott addressed the City Council's recent decision to provide a lease extension to Angels
Baseball and felt it was a mistake to not consider leasing the stadium during the extension at fair
market value.
Scott Well, Chance Theater, thanked the City of Anaheim for their past and continued support
and presented their education offerings. He invited City Council to a performance of James and
the Giant Peach on February 23rd
Julie Brunette expressed her disapproval in Council Member Moreno's participation in the Unite
Here Local 11 protest.
A male speaker representing Youth Leadership America spoke about their programs including
their work with the community.
Maria Lopez spoke regarding the Youth Leadership America and asked City Council for their
support for their programs. She invited City Council to Youth Leadership America's Graduation
on February 22, 2019 and the CIP Showcase on February 6, 2019 at the Knott's Berry Farm
Grand Hotel.
Mayor Pro Tern Kring recognized Youth Leadership America, noted it was founded in
Anaheim, and recommended the community support this program.
Martin Lopez thanked Council Member Moreno for his support of the Unite Here Local 11 protest
and for his bravery.
Ana M. Rodriguez thanked Council Member Moreno for his support of the hotel workers during
the Unite Here Local 11 protest. She expressed her disapproval of any retaliation against
Council Member Moreno.
Ada Tamayo expressed her support for Council Member Moreno and thanked him for assisting
them in obtaining a fair contract.
Council Member O'Neil inquired about the rules of order and inquired if the topic of
Council Member Moreno's participation in the civil disturbance was in the subject matter
jurisdiction of the City Council. City Attorney Robert Fabela advised City Council to allow
the public to speak on this topic.
Aiden Cheek thanked Council Member Moreno for supporting residents and felt any retaliation
would send a poor message to the youth of Anaheim.
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Bob Donaldson expressed concerns regarding Agenda Item Nos. 21 and 22, stating it would
impact district representation.
Lisa Klawe thanked the City of Anaheim, the Disneyland Resort, Anaheim YMCA, and Kaboom!
for their participation in building an accessible playground at Barton Park. Ms. Klawe and her
husband volunteered and found it to be a very rewarding experience. She expressed concerns
regarding the Unite Here Local 11 protest on January 24th noting the traffic congestion and extra
costs to the City of Anaheim. She encouraged the City of Anaheim to bill Unite Here Local 11 for
any incurred costs.
Rick Martens, President and CEO, Anaheim YMCA, thanked the City for leasing them the land
for their new facility and reported on their construction efforts. He invited City Council and the
community to attend their Inaugural Gala on March 2, 2019 at the Ranch Events Center.
Tim Schindler expressed concern regarding Agenda Item Nos. 21 and 22 and felt it was
important for the public to have the opportunity to speak at official meetings.
Margarita Hernandez, on behalf of the workers at Sheraton Park, thanked Council Member
Moreno for his support during the Unite Here Local 11 protest.
Andrea Barrera thanked Council Member Moreno for his support during the Unite Here Local 11
protest.
Anallely Gama thanked Council Member Moreno for his support during the Unite Here Local 11
protest and noted workers at Anaheim Hilton were simply asking for a fair contract.
Karen Romero Estrada, Orange County Communities for Responsible Development (OCCORD),
expressed concern with Agenda Item No. 21 and urged City Council to vote no on the item.
Dwayne Shipp, Orange County Heritage Council, thanked City Council for the proclamation
recognizing February 2019 as Black History Month and invited the community to the Black
History Parade and Cultural Fair on February 2'd
Wes Jones thanked Council Member Moreno for his support during the Unite Here Local 11
protest. He expressed concern about the City Council's recent decision to provide a lease
extension to Angels Baseball without increasing the rent to fair market value and with Agenda
Item Nos. 21 and 22.
Vern Nelson thanked Council Member Moreno for his support during the Unite Here Local 11
protest and felt it was successful for Anaheim workers. He criticized Council Member O'Neil for
not supporting the cause.
Farnaz Abolfathi thanked Council Member Moreno for his support during the Unite Here Local 11
protest.
Duane J. Roberts expressed concern regarding Agenda Items Nos. 21 and 22 and opposed the
90-minute time limit of public comments and the bifurcation of public comments.
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Cynthia Ward noted her excitement for refinancing the Resort Bonds and felt it would be a great
improvement for the City. She asked City Council to review the item to ensure it was for the
benefit of Anaheim.
Shakeel Syed thanked Council Member Moreno for keeping democracy alive in Anaheim and, as
a member of the ACLU, he welcomed litigation regarding First Amendment rights should it be
restricted in the City of Anaheim.
Kenneth Batiste thanked Council Member Moreno for his support during the Unite Here Local 11
protest, advised rent control was needed in the City of Anaheim, and expressed his concerns
about limiting public comments at official meetings.
David Klawe thanked Public Works for finding extra staff to process permit-parking petitions and
asked the City to consider litigation to recoup any costs incurred for the Unite Here Local 11
protest. Lastly, he was concerned about the intimidation occurring at City Council meetings.
Jannelle Welker asked City Council to consider completing a comparative study before
approving the proposed amendment to the district-based nominations and appointments to
provide clarity on the issue.
Ted Kramer voiced concerns regarding the Agenda Items Nos. 21 and 22.
Lou Noble noted civil disobedience was a First Amendment right and expressed concern for how
the homeless shelters were currently being operated and maintained.
Pamela Donelson thanked Council Member Moreno for his support during the Unite Here Local
11 protest and criticized Mayor Pro Tern Kring for not supporting this cause.
Bryan Kaye spoke about his interactions with the Anaheim Police Department and City Council
and provided his observations of their interaction with the residents.
COUNCIL COMMUNICATIONS/AGENDA REQUESTS:
Mayor Pro Tem Kring addressed public comments and the First Amendment right to free speech.
Council Member Moreno expressed appreciation for all those who speak at Council meetings.
He thanked the public for their comments and welcomed the support and critiques equally. He
thanked staff for investigating potential situations on Anaheim Blvd. leading to a resident's death
and thanked the Anaheim Police Department for participating in the vigil.
CITY MANAGER'S UPDATE: None
City Council Minutes of January 29, 2019
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At 7:02 P.M., Mayor Sidhu recessed the Anaheim Housing Authority agenda to address the
Public Financing End of Consent Item No. 2, in joint session with the City Council.
PUBLIC FINANCING AUTHORITY END OF CONSENT CALENDAR:
2. Consider resolutions by the Public Financing Authority and City Council approving the
issuance of not to exceed $225,000,000 aggregate principal amount of Lease Revenue
Bonds of the City of Anaheim Public Financing Authority.
Public Financing Authority Action:
2-A. RESOLUTION NO. APFA-2019-001 A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing
B137.1 the issuance of Anaheim Public Financing Authority Senior Lease Revenue
Refunding Bonds (Anaheim Public Improvements Project), Series 2019 A, in an
aggregate principal amount of not to exceed $215,000,000, and Anaheim Public
Financing Authority Senior Lease Revenue Refunding Bonds (Anaheim Public
Improvements Project), Series 2019 B (taxable), in an aggregate principal amount
of not to exceed $10,000,000, authorizing the execution and delivery of a Second
Supplemental Indenture of Trust, an Escrow Agreement and a Purchase Contract,
authorizing the distribution of a Preliminary Official Statement and an Official
Statement in connection therewith and authorizing other matters related thereto.
B137.1 RESOLUTION NO. APFA-2019-002 A RESOLUTION OF THE BOARD
OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY
authorizing the application of moneys in the Special Reserve Fund for the
Anaheim Public Financing Authority Lease Revenue Bonds (Anaheim Public
Improvements Project), authorizing the execution and delivery of Escrow
Agreements in connection therewith and authorizing other matters related thereto.
Authority Member Moreno thanked the financing team for the briefing they provided and
explained that during the briefing process he had requested to include members of the public but
was advised against that by the City Attorney as certain information presented was privileged
and protected. He asked if the Authority and Council would consider a two-week continuance
since he was now able to speak to members of the public. Finance Director Debbie Moreno
expressed concern for the market risk now that this item had been made public.
Authority Member Moreno expressed concerns with LPMR, mitigating costs, and the inability to
pay debt off early.
Michael Berwanger, Managing Director, PFM, addressed Authority Member Moreno's concerns
and believed that what had been presented was the most cost-effective way to get out of the
debt faster. He advised that in order to abolish the LPMR, all of the 1997 and 2007 bonds must
be removed which equated to $825 million in remaining obligations. To accomplish this, $600
million of new bonds must be sold, which puts the obligation closer to $1 billion and puts the
General Fund at risk.
City Council Minutes of January 29, 2019
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Mr. Berwanger felt the approach of leveling the debt, repaying the debt while continuing to
release the monies as fast as possible, and shrinking down the repayment stream was much
more beneficial for the City. He advised this would save the City debt service repayments and
any delay could increase risk to the City.
Discussion ensued regarding the potential risks from delaying the action two weeks, including
insider trading and increased volatility in the markets, while the current financing plan had been
vetted against the current situation. Authority Member Moreno confirmed if the market stayed
strong, the payoff would occur in 8-10 years, or by 2037 if things got difficult, which staff
concurred. He further inquired if the funds could be restructured to allow the City to access the
funds sooner, to which Mr. Berwanger advised it could not.
In response to Authority Member Barnes, Mr. Berwanger clarified there are 1997 and 2007
bonds because the City seized the opportunity to refinance a portion of those bonds in 2007 and
to save some interest costs. He clarified that the lease payment measure revenue (LPMR)
amounts are collected every year the City re-pays debt service and any excess over collections
are held in special reserve funds (SRFs).
Finance Director Debbie Moreno clarified that for example, in Fiscal Year 2018, the LPMR
amount remitted to the trustee was $60 million and the debt service requirement was
approximately $40 million, so $20 million was held in the SRF. Ms. Moreno further explained
that interest was paid early one, so not much interest was currently accruing in the SRF.
Greg Herrington, Orrick, Herrington & Sutcliffe LLP, believed that there was an investment
contract for the SRFs entered into in 1997 and $5.5 million dollars was paid up-front by the
investment company for anticipated interest earnings. Ms. Moreno stated staff was looking at
this for future changes if it became advantageous to the city. Mr. Berwanger confirmed for
Authority Member Barnes that this was a refinancing only with no new borrowing / debt accrual.
In response to Authority Member Kring, Ms. Moreno re-introduced Michael Berwanger, Managing
Director, PFM, Greg Herrington, Partner, Public Finance, Orrick, Herrington & Sutcliffe LLP, Ruth
Pan, Goldman and Sachs and clarified their credentials.
Authority Member Moreno explained he wished to seek the public's input on this item as he did
not have an opportunity to do so previously due to legal privilege. He advised he would abstain
from this item because the process was not transparent to the public.
MOTION: Authority Member Kring moved to approve Item No. 2-A, seconded by Authority
Member O'Neil. ROLL CALL VOTE: AYES — 6: (Chairman Sidhu and Authority Members Kring,
Barnes, Brandman, Faessel, and O'Neil; NOES — 0; ABSTENTION — 1: (Authority Member
Moreno). Motion carried.
City Council Action:
2-B. RESOLUTION NO. 2019-012 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the execution and delivery of a Purchase
B137.1 Contract and a Continuing Disclosure Agreement in connection with the issuance
by the Anaheim Public Financing Authority of its Anaheim Public Financing
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Authority Senior Lease Revenue Refunding Bonds (Anaheim Public
Improvements Project), Series 2019 A, and Anaheim Public Financing Authority
Senior Lease Revenue Refunding Bonds (Anaheim Public Improvements Project),
Series 2019 B (taxable), approving the issuance of said bonds and the form of a
Second Supplemental Indenture of Trust pursuant to which said bonds are to be
issued, authorizing the distribution of a Preliminary Official Statement and an
Official Statement in connection therewith and authorizing other matters related
thereto.
MOTION: Mayor Pro Tem Kring moved to approve Item No. 2-B, seconded by Council Member
O'Neil. ROLL CALL VOTE: AYES — 6: (Mayor Sidhu and Council Members Kring, Barnes,
Brandman, Faessel, and O'Neil); NOES — 0; ABSTENTION — 1: (Council Member Moreno).
Motion carried.
At 7:42 P.M., Mayor Sidhu adjourned the Anaheim Public Financing Authority, recessed the
Anaheim City Council, and reconvened the Anaheim Housing Authority to address the Housing
Authority agenda.
At 8:04 P.M., Mayor Sidhu adjourned the Anaheim Housing Authority and reconvened the City
Council.
CONSENT CALENDAR: At 8:04 P.M., the consent calendar was considered with Council
Member Barnes removing Item No. 07 and Council Member Moreno removing Item Nos. 16 and
21 for separate discussion.
Prior to Council action regarding Item No. 08, City Attorney Robert Fabela provided an oral
summary of salary and benefits for executives, in accordance with Government Code §54953 as
follows: David Belmer, Greg Garcia, and Linda Andal are confirmed to the positions of Deputy
City Managers and Human Resources Director respectively. The final action confirms
employment contracts in the salary amounts of $240,000 for the Deputy City Managers and
$207,600 for the Human Resources Director position, including all benefits as provided to the
executive classification.
MOTION: Mayor Pro Tem Kring moved to adopt the balance of the consent calendar as
presented, in accordance with reports, certifications, and recommendations furnished each city
council member and as listed on the consent calendar, seconded by Council Member Faessel.
ROLL CALL VOTE: AYES — 7: (Mayor Sidhu and Council Members Kring, Barnes, Brandman,
Moreno, Faessel, and O'Neil). NOES — 0. Motion carried.
D117
5. Approve the revised 2019 Investment Policy for the City of Anaheim.
6. Approve the Investment Portfolio Report for December 2018.
D106
8. Approve the appointments and related Employment Agreements with David Belmer for
AGR-11390 the appointment to the position of Deputy City Manager and Linda Andal to the position of
Human Resources Director, in addition to an Employment Agreement with Greg Garcia
AGR-11391 for his continued service as Deputy City Manager.
AGR-11392
City Council Minutes of January 29,2019
Page 11 of 18
9. Accept the bid from AAA Oil, Inc., in the amount of$1,604,919.80 plus a 25%
D180 contingency, for the purchase of fuel 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 #9237.
10. Accept the bid from Westrux International, in the amount of$45,759.02 plus a 15%
contingency and applicable tax, for the purchase of Caterpillar(CAT) equipment repair
D180 parts for Public Works CAT equipment 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 #9246.
AGR-11393 11. Award the contract to the lowest responsible bidder, Zimprich Engineering Inc., in the
amount of$328,305.96, for the Gramercy Park Trail Project and authorize the Finance
Director to execute the Escrow Agreement pertaining to contract retention
AGR-9130.A 12. Award Master Agreements to All American Asphalt, Hardy & Harper, Inc., R.J. Noble
AGR-9132.A Company, Horizons Construction International, Inc., Golden State Constructors, Inc.,
AGR-9134.A Sialic Contractors, Inc. dba Shawnan, Palp, Inc. dba Excel Paving Company, each in an
AGR-11394 amount not to exceed $750,000 per work package and the number of open work
AGR-11395 packages limited to three per contractor, for street construction and immediate response
AGR-11396 program; authorize the Director of the Public Works Department to execute, administer,
AGR-11397 and take the necessary actions to implement the agreements; and authorize minimal
changes that do not substantially change the term and conditions of the agreements, as
long as such changes are determined to be minimal by the City Attorney.
AGR 8593.A 13. Award Master Agreements to Golden State Constructors, Hardy & Harper, Inc., EBS
General Engineering, Inc., Horizons Construction International, Inc., Kalban, Inc., each in
AGR-8595.A an amount not to exceed $250,000 per work package and the number of open work
packages limited to three per contractor, for concrete repair, construction, and immediate
AGR-11398 response program; authorize the Director of the Public Works Department to execute,
administer, and to take the necessary actions to implement the Master Agreements; and
AGR-8594.A authorize minimal changes that do not substantially change the term and conditions of
the Agreements, as long as such changes are determined to be minimal by the City
AGR-8597.A Attorney.
14. Approve the Final Map and Subdivision Agreement with Lennar Homes of California, Inc.,
for Tract No. 17846, located at 125 West La Palma Avenue, for a one-lot 162-unit
AGR-11399 airspace residential subdivision with small amount of commercial space, private drive
access, common space areas, and other amenities, including public improvements.
AGR-7014.II 15. Approve Lot Line Adjustment No. 782 located at 1422 W. Broadway as it pertains to the
Anaheim Family YMCA Project and authorize corresponding deed (LLA-0000782).
17. Approve and authorize the City Manager, or designee, to execute and administer the
AGR- Third Amendment to the Professional Services Agreement with Thirtieth Street Architects,
5504.6.3 Inc. extending the term for one year terminating on January 1, 2020 for continued on-call
architecture services.
City Council Minutes of January 29, 2019
Page 12 of 18
AGR- 18. Approve an agreement with Contemporary Services Corporation (CSC) authorizing CSC
4531.0 to provide crowd management services, on a non-exclusive basis, to events held at the
Anaheim Convention Center effective through December 31, 2021 with costs associated
with services provided billed back to Convention Center's Tenants or Promoters who
require such services and City responsible for an amount not to exceed $30,000 to
supplement in-house crowd control, as needed; and authorize the Executive Director of
the Convention, Sports & Entertainment Department to execute the agreement and any
other related documents, including all actions necessary to implement and administer the
agreement.
19. Approve an agreement with CSRA, LLC, in an amount not to exceed $250,000, for
AGR-11400 intelligence analyst services for a one year period for which the costs are reimbursed by
the Urban Area Security Initiative grant funding and authorize the Chief of Police to
execute any amendments under the terms and conditions of the agreement.
20. RESOLUTION NO. 2019-013 A RESOLUTION OF THE CITY COUNCIL
AGR 11389 approving a Cooperation Agreement for the Manchester and Orangewood Affordable
Rental Housing Development by and between the City of Anaheim and the Anaheim
Housing Authority, substantially in the form attached hereto; and authorize the
Community and Economic Development Director, or his designee, to submit for an
affordable housing and sustainable communities program application with Jamboree
Housing Corporation and enter into subsequent agreements necessary to implement the
grant improvements delineated in the AHSC program application (2121 S. Manchester
Avenue and 915 E. Orangewood Avenue; related to Housing Authority Item No. 04).
END OF CONSENT CALENDAR:
7. Receive update on homeless efforts in Anaheim.
D116
Public Utilities General Manager Dukku Lee presented a slideshow of photos and reported the
Salvation Army shelter, located on Lewis Street, was nearly complete and would begin accepting
individuals on January 31.
Public Works Director Rudy Emami reported on the Kraemer emergency 101-bed shelter located
on La Mesa Street with the shelter scheduled to open by the end of February and presented a
slideshow of photos of the facility. He reported that interior demolition was completed and work
had begun on framing, drywall, electrical, HVAC, plumbing, fire line, and sewer replacement.
He advised that continuous information meetings have been held with the adjacent property
owners.
Mr. Emami reported the State College interim emergency 200-bed shelter was almost at full
capacity and lessons learned from operating the facility have been incorporated into the design
and operation plans for the new shelters.
City Clerk Linda Andal addressed conditions and challenges at the State College shelter and
estimated that approximately 70% have been residents since opening week. She noted that the
shelter was serving its intended purposes and reported that Illumination Foundation did not
anticipate the high number of intakes it initially received. Additionally, the City did not expect the
City Council Minutes of January 29, 2019
Page 13 of 18
rapid growth and will acknowledge and address challenges and use those changes as best
practices moving forward.
Ms. Andal addressed the quality of the food, reporting that breakfast was served three times per
week and lunch and dinner served seven days per week and provided sample menu items. She
addressed security and reported that extra security has been added as needed.
Ms. Andal addressed resources, services, and sanitation and advised that Illumination
Foundation had doubled in size to ensure that the facility was properly sanitized and needed
services were provided to the population. She addressed transportation and reported that the
contract with Illumination Foundation called for two transportation shuttles per day, which has
increased to four shuttles with a van available for as-needed appointments.
Ms. Andal addressed sanitation and advised that there was a system overload and Illumination
Foundation had a plumber onsite daily. Today she was advised that the restrooms would need to
be permanently closed; however, at no time were restroom facilities not available for residents.
Illumination Foundation has port-a-potties onsite and has ordered additional port-a-potties to the
facility.
Ms. Andal advised that Illumination Foundation has successfully diverted more than 10 families
to more appropriate settings, has helped at least two individuals secure job interviews, and
connected up to 15 individuals to treatment services. She reported on January 24th, Illumination
Foundation contracted with a veterinary clinic to vaccinate the on-site pets.
Community Preservation and Licensing Manager Sandra Sagert reported that plans were
underway to transition residents to the Salvation Army shelter location after January 31, where
greater wrap-around services would be provided. City staff was meeting with Illumination
Foundation to identify residents and coordinate all intakes with Salvation Army with a slow move
planned to ensure a successful transition. She reported that while homeless were transitioned to
the shelters, the City began to clean and restore parks and sidewalks and return them to the
community with 150 individuals housed in a short period of time.
Ms. Sagert reported that three dedicated days of outreach occurred on December 21, 22, and
January 3 with outreach services from Illumination Foundation, Orange County Healthcare
Agency, CityNet, and staff from Public Works, Parks, Police, Fire, City Attorney, City
Communications, and Code Enforcement making the three day effort one of the largest
collaborations the City has ever performed related to helping homeless and restoring public
spaces.
DISCUSSION: Council Member Barnes thanked the entire team for their commitment to seeing
the project to completion and thanked the administration for their continued support.
Council Member Faessel thanked the team for their efforts and was very pleased with the
number the shelters have served. He also thanked Ms. Sagert for addressing problematic areas
outside of the shelters.
Mayor Pro Tern Kring thanked the team for the incredible work. Ms. Sagert recommended
referring the public who wish to provide good and services to the shelter to CityNet, in response
to Mayor Pro Tern Kring's inquiry. Mayor Pro Tern Kring suggested signage in the restrooms to
help with the sanitation problems.
City Council Minutes of January 29, 2019
Page 14 of 18
City Manager Chris Zapata thanked the State for their funding and noted that the County needed
to be pursued for continued on-going funding.
MOTION: Council Member Barnes moved to receive update on homeless efforts in Anaheim,
seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES — 7: (Mayor Sidhu and Council
Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES — 0. Motion carried.
16. Approve the Second Amendment to Professional Services Agreement with Bureau
Veritas of North America, Inc. increasing the total compensation amount to $2,350,000
AGR 8803.2 and the First Amendment to Professional Services with Jason Addison Smith Consulting
Services, Inc., DBA JAS Pacific, increasing the total compensation to $1,000,000, for as-
AGR-8805.1 needed plan check, permit processing, and inspection consulting services for the
Planning and Building Department; and authorize the Planning Director to execute the
amendments and other related documents necessary to implement the amendments.
Planning and Building Director David Belmer reported that the City issues 5,500 building permits
per year and services include receiving and checking plans, issuing permits, and inspecting the
work. He advised that while City staff serve the public, the work was augmented by consultant
services, specifically in delivering performance deadlines. There were currently five consulting
services agreements in place with one-year extensions being provided over time, but the
agreements expire on June 30, 2019.
Mr. Belmer recommended that the City Council approve the proposed amendments to the
agreements with Bureau Veritas of North America, Inc., and JAS Pacific and authorize the
Department Director to execute the amendments to continue their services.
DISCUSSION: Council Member Moreno was pleased to hear the volume of planning and
building activity that warranted the increase as it showed Anaheim was business friendly.
Mr. Belmer reported the City was in a significant building phase with some complex structural
projects underway. He explained that fees were set on cost-recovery with those fees set by City
Council and well below costs and he felt fees were equally split between commercial and
residential. Building Official Terry Alford advised that there was an uptick in tenant improvement
and small business activity, in response to Council Member Moreno's inquiry.
MOTION: Council Member Moreno moved to approve the Second Amendment to Professional
Services Agreement with Bureau Veritas of North America, Inc. increasing the total
compensation amount to $2,350,000 and the First Amendment to Professional Services with
Jason Addison Smith Consulting Services, Inc., DBA JAS Pacific, increasing the total
compensation to $1,000,000, for as-needed plan check, permit processing, and inspection
consulting services for the Planning and Building Department; and authorize the Planning
Director to execute the amendments and other related documents necessary to implement the
amendments, seconded by Council Member Brandman. ROLL CALL VOTE: AYES — 7: (Mayor
Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES —
0. Motion carried.
City Council Minutes of January 29, 2019
Page 15 of 18
21. ORDINANCE NO. 6458 (ADOPTION) AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM amending Sections 1.04.391, 1.04.396, 1.04.450, 1.04.510,
B105 1.04.810, and 1.04.996 of Chapter 1.04 of Title 1 of the Anaheim Municipal Code
providing for district-based nomination of City Board and Commission Members, ratified
M142 by an affirmative vote of the majority of the City Council (introduced at Council meeting of
January 15, 2018, Item No. 29).
City Clerk Linda Andal reported that on January 29, City Council introduced an ordinance to
amending Chapter 1.04 of the Anaheim Municipal Code related to the manner in which board
and commission members were appointed. Specifically, the proposed amendments would
require an affirmative majority vote of the City Council to ratify each district and at-large
nomination of a board or commission member. The proposed amendments continue to require
that district residents receive priority in the nomination and appointment process.
DISCUSSION: In response to Council Member Moreno, Ms. Andal clarified that the ordinance
was drafted to allow the nominating District Council Member to make a second nomination in
his/her district in the event the initial District Council Member's nomination was not approved by
the majority of City Council.
Council Member Moreno expressed concern that this ordinance gave the majority the ability to
veto district appointments which goes against the residents' wishes and he could not support this
change.
Mayor Pro Tern Kring noted that in her past experience, there were not enough candidates for
her vacant positions and she would nominate from outside her district. She noted that she would
be supportive of her fellow City Council Members and supported the item.
Council Member Barnes did not understand the spirit behind the change and felt it undermined
the residents who were nominated.
MOTION: Mayor Pro Tern Kring moved to adopt ORDINANCE NO. 6458 (ADOPTION)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Sections
1.04.391, 1.04.396, 1.04.450, 1.04.510, 1.04.810, and 1.04.996 of Chapter 1.04 of Title 1 of the
Anaheim Municipal Code providing for district-based nomination of City Board and Commission
Members, ratified by an affirmative vote of the majority of the City Council, seconded by Council
Member O'Neil. ROLL CALL VOTE: AYES — 4 (Mayor Sidhu and Council Members Kring,
Faessel, and O'Neil); NOES — 3: (Council Members Barnes, Brandman, and Moreno). Motion
carried.
22. RESOLUTION NO. 2019-014 A RESOLUTION OF THE CITY COUNCIL OF THE
D114 CITY OF ANAHEIM amending and restating the procedures and rules of order for the
conduct of City Council meetings (continued from Council meeting of January 15, 2019,
Item No. 28).
City Attorney Robert Fabela recapped that at the January 15 meeting, the Council heard public
comments and discussed the proposed rule changes, but did not vote on the item. Council did
vote to continue the matter to January 29, 2019 with a request that new revisions be proposed
based on the Council discussion that took place.
City Council Minutes of January 29, 2019
Page 16 of 18
Mr. Fabela reported that staff took the additional time to review the rules, as a whole, to propose
some additional minor"clean-up" revisions. He presented the proposed rule changes that
differed materially from those proposed on January 15 in the following respects: The proposed
time limit for submitting speaker cards (one hour after beginning of meeting) has been deleted;
the proposed public comment periods remain (one near the beginning of the meeting and the
second near the end), but it has been restructured; the public hearing times reverted back to the
current time limits, i.e., there were no proposed changes to the public hearing time limits as was
presented on January 15.
Mr. Fabela reported that there was a provision that specifically talked about the possibility of loud
noises, clapping, booing, hissing being prohibited if it disturbs, disrupts, or impedes the orderly
conduct of the meeting. He reported there was a provision adding the requirement of speaker
cards and, while it allowed for anonymous speakers, a card must still be submitted. Additionally,
the first public comment period would be limited to 90 minutes or until all agenda item speakers
have been called. Any remaining time in the initial 90-minute period would be offered to general
comment speakers; if no time remained, such speakers would have the opportunity to speak
during the second comment period. He also clarified provisions related to audio/video
equipment.
DISCUSSION: Council Member O'Neil disclosed that he had a conversation with two members
of the Council, and it was later found that one of the members had emailed on this topic in
violation of the Brown Act. Mr. Fabela clarified that while there was no specific rule on how to
cure that issue, bringing it out in the open and discussing it was the best way to move forward
and be transparent.
Council Member Moreno expressed concern with Mayor Sidhu's recent changes, including
recently requiring that three members of the City Council agree before an agenda item is set,
limiting district nominations and appointments, and recommending changes to public comment
and he felt that it does not represent the residents' wishes. In response to Council Member
Moreno, Mr. Fabela clarified that public commenters can speak on general items if there was
time within the initial 90-minute comment period or else they would need to wait to the general
public comment period at the end of the meeting. Council Member Moreno reported the average
length of public comments was 2 hours and 12 minutes. He advised against limiting speech and
noted he would vote against these rule changes.
Mayor Pro Tem Kring stated she supported the item and felt it will help the meetings be more
efficient and limit the intimidation that some public speakers are receiving.
Council Member Brandman noted he could not support this item and hoped that other rules of
order could be considered in the future.
MOTION: Council Member O'Neil moved to approve RESOLUTION NO. 2019-014 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending and restating
the procedures and rules of order for the conduct of City Council meetings, seconded by Mayor
Pro Tem Kring. ROLL CALL VOTE: AYES — 4: (Mayor Sidhu and Council Members Kring,
Faessel, and O'Neil); NOES — 3 (Council Members Barnes, Brandman, and Moreno). Motion
carried.
City Council Minutes of January 29, 2019
Page 17 of 18
REPORT ON CLOSED SESSION: None
COUNCIL COMMUNICATION/AGENDA REQUESTS:
Council Member Moreno congratulated the Anaheim Union High School District for its Serve-a-
thon on Martin Luther King, Jr. Day and announced their new slogan "Unlimited You." He
thanked residents and staff for a Neighborhood Services meeting held in the Vine/Bush/Rose
neighborhood and announced the MyAnaheim App could be used in various languages. He
reported his participation on January 24th in support of residents and asked people to continue to
engage. He further reported the Sheraton and UNITE HERE Local 11 negotiated an agreement
for the workers. He reported his attendance at the Muzeo community art day to create art for the
homeless shelters and a plan by OCTA to build a transportation operations center at Lincoln and
Manchester. He announced an upcoming District 3 community meeting at City Church on
January 31st, the Black History parade and cultural faire on February 2nd, a neighborhood walk at
Romneya/Patrick Henry Elementary School on January 30th, and a meeting at the senior center
on February 5th. He expressed his regrets for not being able to attend the Salvation Army
homeless shelter ribbon-cutting on January 31st.
Council Member Brandman expressed appreciation for all who participated in the Kaboom!
Playground opening at Clara Barton Park on January 26th and looked forward to additional plans
for that park as well as additional Kaboom! playgrounds at additional city parks.
Council Member Faessel reported his attendance at a Sunkist Library STEAM "crafternoon," the
Boy Scouts El Capitan fundraiser, the Grove's 20th birthday celebration, the Miss Anaheim
competition at Servite High School, and the AUHSD Serve-a-Thon. He announced the launch of
FRAN (Free Rides Around the Neighborhood), local transit for the CtrCity area, and the Muzeo
community art day. He recognized Disney's participation and efforts for the Clara Barton Park
Kaboom! playground, reported his participation at a Green Bird cleanup at Zion Lutheran School,
invited all to the Black History parade, and requested a formal recognition of Miss Anaheim and
her court at the April 16th Council meeting, concurred by Mayor Pro Tem Kring and Council
Member O'Neil.
Mayor Pro Tem Kring announced National Plan for Vacation Day, reported the City received
$160 million in TOT revenue, and thanked Visit Anaheim for promoting the city. She highlighted
the approval of the Lot Line Adjustment (Item No. 15) related to the Anaheim YMCA Family
project, expressed her appreciation for the services provided to the community by the YMCA,
and looked forward to their new facility. She thanked the Police Department for ensuring the
safety of all involved and affected by the civil disobedience and requested an audit of incurred
costs be provided to Council. She requested the meeting adjourn in honor of current and former
law enforcement personnel who were killed or wounded in the line of duty and announced the
Black History parade.
Council Member O'Neil thanked the National Association of Music Merchants (NAMM) for
choosing Anaheim for their convention and looked forward to a continued partnership; thanked
the Police Department for keeping everyone safe during the civil disobedience; and
congratulated Linda Andal, David Belmer, and Greg Garcia for their promotions and additional
responsibilities.
Council Member Barnes congratulated the Miss Anaheim contestants and Mike Mannix for being
honored at the Boy Scouts El Capitan District luncheon. She announced the opening of a new
City Council Minutes of January 29, 2019
Page 18 of 18
adult health care facility by SeniorServ, encouraged all to give blood, thanked city employees for
their work, thanked volunteers involved in the point-in-time count and all homeless shelter efforts,
and acknowledged the actions of Council Member Moreno.
Mayor Sidhu acknowledged the 300 volunteers at the 11th Kaboom! playground build,
announced the ribbon-cutting of the Salvation Army shelter on January 31st, thanked all for their
efforts regarding homelessness, and announced the Access California gala on February 9th.
ADJOURNMENT:
At 9:42 P.M., with no objection, Mayor Sidhu adjourned the January 29, 2019 meeting in honor
of current and former law enforcement personnel who were killed or wounded in the line of duty.
Respectfully submitted,
Theresa Bass, C C
City Clerk