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04/02/2019 ANAHEIM CITY COUNCIL REGULAR MEETING OF APRIL 2, 2019 The regular meeting of April 2, 2019 was called to order at 3:02 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 March 28, 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 Theresa Bass. 3:31 P.M. WORKSHOP: Budget Update for Fiscal Year 2018/19 and Proposed Fiscal Year 2019/20 City Manager Chris Zapata opened the workshop and advised the presentation would consist of an overview of the operating budget for the City of Anaheim. Finance Director Debbie Moreno presented the FY 2017/2018 Year-End Review and noted the adopted budget was $1.9 billion. She noted that the majority of discretionary funding was in the General Fund, which was nearly $400 million and comprised 20% of the budget. The General Fund finished better than expected with both transient occupancy taxes (TOT) and property taxes slightly exceeding budget. Overall, the City ended the year $2.2 million better than expected in the General Fund. Ms. Moreno highlighted projects including the opening of an Interim Emergency Shelter, Salvation Army Temporary Shelter, and La Mesa Temporary Shelter. She also highlighted projects at Founders' Park, Mother Colony House, Ponderosa Park, Barton Park KaBOOM! Playground, and the Anaheim Public Library Bookmobile. With respects to projects that maintain Anaheim neighborhoods, Ms. Moreno highlighted projects that included sidewalk gap closures, citywide tree trimming, neighborhood rehabilitation, dusk-to- dawn lighting enhancements, underground electrical projects, and LED streetlight replacements. Ms. Moreno highlighted Public Safety projects and noted that the Anaheim Police Department was using new technology to decrease response times. She noted that in July 2018, the City opened Fire Station No. 5 with the goal to reduce area response times to four minutes or less. Ms. Moreno reported on the General Fund and noted that the total sources were $414.9 million, with 80% coming from taxes. General Fund total uses were adopted in the amount of $413.9 million. She highlighted the transient occupancy tax (TOT) that makes up 40% of the General Fund. She noted that six new hotels have been built recently and help support the occupancy rate growth which is over 80%. She presented TOT trends for the last several years and expected the rate to increase over the next year with the opening of Star Wars Galaxy's Edge in May 2019. Ms. Moreno highlighted sales tax of $85.8 million or 20% of General Fund resources. She projected sales tax to grow by less than 2% this year which will put the City just under budget. City Council Minutes of April 2, 2019 Page 2 of 15 Ms. Moreno reported property taxes of $76.4 million and noted that revenues were expected to be slightly higher at year end. She stated that General Fund uses include Services, Debt Service, Economic Development, and Capital Outlay. The largest share of services included Keeping Us Safe through Police and Fire. Ms. Moreno presented the preliminary Proposed Fiscal Year 2019/2020 Budget and noted staff was currently in the process of working with budget teams and will hold budget workshops, budget hearings, and finally, City Council adoption of the budget in June. Ms. Moreno highlighted the $20 million Neighborhood Investment Program Mayor Sidhu announced at the State of the City in March 2019. She noted the City will receive $6 million in SB1 Streets and Road Funds, $4 million in Neighborhood Reserves Fund, and $10 million from internal borrowing from the Insurance Fund. In response to Mayor Sidhu, Ms. Moreno advised the City was not seeing as much growth in the sales and use tax which accounted for the decline. Ms. Moreno further advised the City was not currently collecting use taxes on online hotel booking sites, such as Expedia, but was looking to do so in the future. Mayor Sidhu requested that City Attorney Robert Fabela expedite the resolution of collecting the use tax. Ms. Moreno advised that the largest part of expenditures was going toward pension benefits and their unfunded liabilities, in response to Mayor Sidhu's inquiry. Ms. Moreno further advised that the biggest portion of Transfer Out Uses will be Lease Payment Measurement Revenues (LPMR). In response to Council Member Faessel, Ms. Moreno clarified that maintaining existing service levels meant the City would not be using reserve funds for expenditures. Council Member Moreno requested that the presentation be provided to City Council before future workshops so Council could prepare questions in advance. Ms. Moreno reported there was $4.2 million remaining from the previous year's budget in land sales that could be used for the homelessness crisis instead of using reserves, in response to Council Member Moreno's inquiry. Ms. Moreno additionally reported that service levels will remain the same in the proposed budget. Council Member Moreno requested a breakdown of the pension obligations per year and the breakdown of the revenue from the new hotels that are being added over the next two years in comparison to existing staffing levels. Ms. Moreno advised the current pension obligation from the General Fund was $50 million, with it rising to $75 million in 2023, in response to Council Member Moreno's inquiry. She further advised that debt service was comprised of LPMR of $60 million and the Convention Center debt service of $15.5 million. Council Member Moreno requested a breakdown of revenues versus the debt service payments for the Convention Center during subsequent workshops. He also would to also receive a breakdown of revenues from Angels Baseball at subsequent workshops. City Council Minutes of April 2, 2019 Page 3 of 15 Ms. Moreno advised that 40% of all sources in the General Fund was comprised of TOT, in response to Council Member Moreno's inquiry. Mr. Zapata advised that $250 million in revenue was pledged as a goal for resident-driven neighborhood investments over the next 10 years, with an immediate investment of $20 million into Anaheim neighborhoods. Ms. Moreno advised the Anaheim Police Department budget is $141.5 million and Anaheim Fire and Rescue is $74 million, in response to Council Member O'Neil's inquiry. Ms. Moreno advised the City was always looking for opportunities to automate positions that would bring savings to the City, in response to Council Member Barnes inquiry. Mr. Zapata thanked the Finance staff for their hard work on the presentation. He noted the increase in the use tax and TOT goes through cycles of 7 to 10 years and advised that the City was vulnerable. He noted the City has not had to go into reserve funds to maintain service levels or pay unfunded liabilities, which was a testament to the City. Mayor Sidhu requested that Ms. Moreno meet with members of City Council before the final budget was presented. ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None CLOSED SESSION: At 4:05 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 the California Government Code Section 54956.9: One potential case. At 5:19 P.M., the City Council session was reconvened. INVOCATION: Father Edward Poettgen, Saint Boniface Roman Catholic Church FLAG SALUTE: Mayor Pro Tern Lucille Kring PRESENTATIONS: Recognizing IBEW 441 and IBEW 47 for their volunteer efforts at the ABC Community Service Day Mayor Sidhu spoke about the volunteer efforts of IBEW 441 and IBEW 47 in refurbishing the ABC Community Clubhouse and presented representatives with a certificate. Acceptance of Other Recognitions (To be presented at a later date): Recognizing April 2019, as Donate Life Month Recognizing April 7 - 13, 2019, as National Library Week City Council Minutes of April 2, 2019 Page 4 of 15 Katrina Ford, Senior Librarian, Anaheim Public Library, thanked City Council for the supporting the Library system. She invited City Council and the public to the National Bookmobile Day celebration on April 20, 2019 from 2:45 p.m. to 3:30 p.m. at the Anna Drive library stop. At 5:27 P.M., Mayor Sidhu called to order the Anaheim Housing Authority (in joint session with the City Council). ADDITIONS/DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS: Prior to receipt of public comments, an outline of new rules for public comments and a brief decorum statement was provided by City Clerk Theresa Bass. Cecil Jordan Corkern, Outreach Homeless Ministries, reported on his outreach efforts and encouraged City Council to approve Item No. 1. Paul Hyek encouraged City Council to complete safety inspections on the temporary homeless shelter trailers to ensure the proper hoses were being used. He expressed his support for Item No. 19. R. Joshua Collins, Homeless Advocates for Christ, encouraged City Council to come up with more options for the homeless including alternative housing solutions. Mark Richard Daniels expressed concern with rent increases in Anaheim and expressed his support for Item No. 19. Jeanine Robbins expressed her support for Item No. 19 and encouraged City Council to approve the item. Mike Robbins expressed his support for Item No. 19 and encouraged City Council to approve the item regardless of politics. Teresa Raridan, Rancho La Paz Mobile Home Park resident, reported that she met with Mayor Sidhu, Council Member O'Neil, Council Member Faessel, and park owner John Saunders to discuss amicable solutions to the proposed space rent increase. She thanked Council Members Moreno and Barnes and Deputy City Manager David Belmer for attending a community outreach event at the park to listen to the residents and reported the owner had agreed the rescind the increase through September 2019. William Fitzgerald, Home Owners Maintaining Our Environment, expressed concern regarding free speech at City Council meetings. Roger Brannen expressed his support for Item No. 19 and encouraged the City Council to develop an anti-gouging rent policy. Peter Warner encouraged City Council to develop a rent review board. He also encouraged the City Council to ensure that transportation drivers be properly licensed to transport the homeless. Mary Jo Baretich spoke in support of Item No. 19 and encouraged City Council to approve the item. City Council Minutes of April 2, 2019 Page 5 of 15 Daniel Larson expressed his support for Item No. 19 and asked City Council to explore a rent stabilization policy. Penney Hayes, Friendly Hills Mobile Home Park, expressed her support for Item No. 19. Duane J. Roberts stated his support for Item No. 19 and encouraged City Council to approve the item. Joese Hernandez expressed his concerns regarding the Anaheim First advisory committee and believed it was not a true community group. He expressed his support for Item No. 19 and requested City Council explore rent stabilization. David Duran expressed concern regarding First Amendment rights for public comment speakers. He stated he was in support of Item No. 19 and encouraged City Council to explore rent stabilization policies. Peter Herzog, Manufactured Housing Educational Trust (MHET), expressed his opposition to Item No. 19. He believed that the owner and residents should be allowed to work out their issues without the intervention of the City Council and that rent control would introduce more legal issues. Genoveva Garcia DeVern, Rancho La Paz Mobile Home Park resident, expressed her support for Item No. 19. Gary Frazier, Asset Manager, Tyrol Plaza Senior Housing Development, addressed an item in the Staff Report for Item No. 4 and noted that the 18 units designated for homeless/disabled can be for either homeless or disabled residents. He also noted that there were no supportive services offered to the residents in the 18 apartments. Rosaisela Lopez stated that she was in support of Item No. 19 and encouraged City Council to approve the item. Aida Garcia thanked City Council for engaging with the owner of the Rancho La Paz Mobile Home Park. She also expressed her support for Item No. 19 and encouraged City Council to explore rent control across the City. David Klawe thanked community members for donating $675,000 for in-kind services for the temporary homeless shelters. He also expressed his opposition to Item No. 19, encouraged City Council to oppose the item, and encouraged the exploration of alternative rent control options. Wes Jones expressed his support for Item No. 19 and encouraged City Council to approve the item. Ana Ramos encouraged City Council to explore rent control options in Anaheim. Lou Noble expressed concern for the treatment of residents at the homeless shelters. He also encouraged City Council to explore structured campgrounds as an alternative housing solution. Kenneth Batiste expressed his concerns regarding rent control and housing issues in Anaheim. City Council Minutes of April 2, 2019 Page 6 of 15 Pat Davis expressed her concern regarding the criminalization of the homeless and the lack of affordable housing in Anaheim. She also expressed her support for Item No. 19 and encouraged City Council to approve the item. Kristen Maahs-Kolberg, Alzheimer's Orange County, reported on her organization's services. She invited City Council and the public to attend the Orange County Leadership Forum on Aging on April 25, 2019, at the Garden Grove Community Meeting Center. Maricela reported this was National Public Health Week and encouraged City Council to explore an ordinance that would support smoke-free outdoor dining areas in Anaheim. Alyssa encouraged City Council to explore an ordinance that would support smoke-free outdoor dining areas in Anaheim. Kathryn Daniels, One Logos Theological Seminary, reported on the Seminary's mission. Ruby Lynn requested the City partner with One Logos Theological Seminary to provide volunteer opportunities. Bryan Kaye expressed concerns regarding issues within the Anaheim Police Department. Patrick Sharples, KW Commercial, presented City Council a copy of an executed lease of showroom space. He noted that the lessee sublet the property to a marijuana dispensary. He has reached out to Anaheim Police Department and Code Enforcement and no assistance has been received. He asked the City Council for their assistance. Mayor Sidhu asked City Manager Chris Zapata to work with Mr. Sharples to address his concerns. CITY MANAGER'S UPDATE: City Manager Chris Zapata recognized and thanked Anaheim Arena Management for hosting the Sweet 16 game of March Madness and committed to working together to bring those events back to Anaheim at all opportunities. At 6:59 P.M., Mayor Sidhu recessed the City Council to address the Anaheim Housing Authority agenda, reconvening at 7:12 P.M. CONSENT CALENDAR: At 7:12 P.M., the consent calendar was considered with Council Member Barnes pulling Item Nos. 04 and 17 for separate discussion. 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 Investment Portfolio Report for February 2019. D180 6. Accept the lowest responsive bid from J. B. Bostick Co., Inc., in the amount of $150,000, to provide asphalt repair and striping services at the City National Grove of Anaheim and City Council Minutes of April 2, 2019 Page 7 of 15 authorize the Purchasing Agent to issue the purchase order in accordance with Bid #9268. 7. Accept the bid from Econolite, in the amount of $818,078.50 plus applicable tax, to D180 provide as needed traffic video detection systems and related 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 #9261. 8. Accept the bids of All Star Fire Equipment, Inc., L.N. Curtis & Sons, GRP2, and Galls, D180 LLC, as the primary supplier, in the combined amount not to exceed $411,480 plus applicable tax, to provide uniforms, accessories and boots for the Anaheim Fire and Rescue Department for a one year period with four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #9264. 9. Waive the sealed bid requirement of Council Policy 4.0 and ratify the issuance of two purchase orders to ConvergeOne, Inc., in the combined amount of$147,673.03, for D180 Cisco network equipment and related maintenance. 10. Waive the sealed bid requirement of Council Policy 4.0 and ratify the issuance of a purchase order to Am-Tec Total Security Inc., in the amount of$23,775.05, for video D180 surveillance software licenses for cameras at various City locations. 11. Waive the sealed bid requirement of Council Policy 4.0 and authorize a purchase from Crystal Fountains, Inc., in the amount of $121,603.91 plus applicable tax, for special D180 underwater light fixtures for the Grand Plaza water fountain at the Anaheim Convention Center and authorize the Purchasing Agent to issue the purchase order. 12. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing D180 Agent to issue agreements to Chic Party Rentals, Inc., Yorba Linda Party Rentals, Haz Party Rentals, and Big Top Rentals, in a combined amount not to exceed $50,000 annually, for the rental of furniture and equipment and related services for city meetings, ceremonies and community events on an as-needed basis and authorize the Purchasing Agent to issue similar agreements as needed for up to four additional one-year periods subject to available budget appropriations. 13. Approve the Second Amendment to Amended and Restated North Net Joint Powers AGR- Agreement with the Cities of Garden Grove and Orange reducing the administrative fee 2466.A.2 paid to the City of Anaheim from 12% to 6% effective July 1, 2019 for administrative support to North Net Fire Training Facility operations. 14. Approve a Professional Services Agreement with Preventive Healthcare Medical Centers, AGR- Inc. DBA Hoag Executive Health, in an amount not to exceed $200,000 annually, for 11441 medical examinations of Fire & Rescue Department Suppression Personnel for a three year term with an option to renew for one additional three year term. 15. RESOLUTION NO. 2019-027 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM authorizing the Public Utilities General Manager or designee to submit an application to the United States Department of the Interior Bureau of Reclamation for grant funding from the Title XVI Reclamation and Reuse Program to City Council Minutes of April 2, 2019 Page 8 of 15 expand the use of recycled water; to enter into a funding agreement and accept grant funds, as awarded, on behalf of the City of Anaheim; to amend the budget accordingly for the appropriate fiscal year; and to take such actions as are necessary in furtherance of the grant. RESOLUTION NO. 2019-028 A RESOLUTION OF THE CITY COUNCIL OF THE C350 CITY OF ANAHEIM adopting Addendum No.1 to the Mitigated Negative Declaration for the Anaheim South Recycled Water Project. Approve the First Amendment to Agreement with Dudek, increasing the not to exceed AGR- amount of $848,870 to $1,386,006, to provide additional design engineering and support 9962.1 during construction services in connection with the Anaheim South Recycled Water Project for a term to expire on December 31, 2022 and authorize the Public Utilities General Manager to execute the Amendment and any other related documents, and to take such actions as are necessary to implement and administer the amended agreement. P124 16. RESOLUTION NO. 2019-029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain interests in real property (City Deed Nos. 12250, 12257, 12258, 12259, 12260, 12267, 12268, and 12269; city uses in connection with the provision of utility services). 18. Approve minutes of the Council meeting of August 14, 2018 and August 28, 2018. D113 END OF CONSENT CALENDAR 4. Receive an update on homeless efforts in Anaheim (continued from Council meeting of D116 March 19, 2019). DISCUSSION: Human Resources Director Linda Andal reported that Phase 1 was complete, with the construction of two temporary shelters that are up and running. She noted this will be the last formal update to City Council, but updates will be provided as needed and as requested. Ms. Andal reported on the Salvation Army shelter and noted that in less than 90-days from the date of settling the federal lawsuit, an agreement was secured with the Salvation Army to build out the 224-bed temporary shelter. As of March 27, the shelter was home to 189 residents and the shelter had provided over 8,100 bed nights and 20,000 meals. Lastly, she reported that $14 million was approved for the Salvation Army shelter and the overall construction was coming in under budget. Ms. Andal reported on the La Mesa Emergency Shelter which opened in 85 days from purchase to dedication. She noted that as of March 26, there were 80 residents living in the facility, most of whom were transferred from the State College Emergency Shelter. Since its opening, La Mesa has provided 6,000 meals and 2,000 bed nights. The property was purchased for $3.9 million with operating costs of $2.1 million and construction coming in at $2 million. Ms. Andal reported on the State College Emergency Shelter which allowed City Council to address homeless encampments around the City especially at Maxwell, La Palma, and Schweitzer Parks. She reported the shelter was opened in 14 days, opening on December 20, 2018 and closing on March 6, 2019. The interim shelter was open for 77 days and helped the City Council Minutes of April 2, 2019 Page 9 of 15 homeless escape the cold of winter. The shelter served 416 residents, served 96,096 meals, and provided 32,032 bed nights. The shelter cost $1.3 million, with in-kind donations of $523,500 and a refund to the City of $60,158.17. Ms. Andal highlighted the positive impacts the shelters have had on City neighborhoods, parks, libraries, schools, streets, and businesses and presented before and after photos. She also presented a timeline of the homelessness response including a variety of services that were provided during the response. Ms. Andal provided the next steps in the City's response to homelessness and supportive housing, as the City continues to provide daily outreach and work with neighbors in the area. Additionally, the City continues to provide permanent supportive housing to homeless families in the area. Ms. Andal advised that the City has received input from developers and has plans to convert appropriate hotels or office buildings into permanent supportive housing. Finally, the City will continue to work with partners and aggressively work towards county, state, and federal dollars. Ms. Andal reported on the Salvation Army's Center of Hope and advised it is in the early planning stages with plans to open in early 2021. She also advised there was more being done around the County, with neighboring cities working on providing more homeless beds and shelters. City Attorney Robert Fabela provided a recap of this day's status conference regarding the Orange County Catholic Workers lawsuit. He noted that Anaheim was praised for its efforts regarding the homeless shelters. He noted that Judge Carter stated that private action may take place against the Union Pacific Railroad. Mr. Zapata noted that one of the take-aways from today's status conference was that the County of Orange needs to do a better job of getting more funding for homelessness. Council Member Barnes thanked City staff for their hard work on the homeless issue and achieving so much in a short period of time. Council Member Moreno expressed his gratitude to City staff for working so hard on the homeless effort and pushing above and beyond. He also wanted to provide special recognition to many of the homeless advocates who have reminded City Council of its moral duty to protect the homeless. Mayor Sidhu thanked staff for their report and suggested that updates on the homeless come to City Council at the discretion of the City Manager. MOTION: Council Member Barnes moved to receive an 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. 17. ORDINANCE NO. 6461 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapters 18.04 (Single-Family Residential Zones); 18.06 (Multiple- C280 Family Residential Zones); 18.08 (Commercial Zones); 18.10 (Industrial Zones); 18.14 (Public and Special-Purpose Zones); 18.16 (Regulatory Permits); 18.36 (Types of Uses); 18.38 (Supplemental Use Regulations); 18.42 (Parking and Loading); 18.44 (Signs); 18.46 (Landscaping and Screening); 18.50 (Senior Citizens' Apartment Projects); 18.54 City Council Minutes of April 2, 2019 Page 10 of 15 (Sex-Oriented Businesses); 18.60 (Procedures); 18.62 (Administrative Reviews); 18.92 (Definitions); 18.116 (Anaheim Resort Specific Plan No. 92-2 (SP 92-2) and 18.120 (Anaheim Canyon Specific Plan No. 2015-1 (SP 2015-1)) of Title 18 (Zoning) of the Anaheim Municipal Code and finding and determining that this ordinance is exempt from the requirements to prepare additional environmental documentation per California Environmental Quality Act (CEQA) guidelines, Section 15061(b)(3) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment (Zoning Code Amendment No. 2019-00159) (Adjustment No. 10 to the Anaheim Resort Specific Plan (SPN92-2Y)) (Adjustment No. 8 to the Anaheim Canyon Specific Plan (SPN2015-00001 H)) (DEV2019-00006) (Code Streamlining and Improvement Program to create flexibility, provide clarity and consistency, and amend certain development standards to reflect current market trends). DISCUSSION: In response to Council Member Barnes, Deputy City Manager David Belmer explained that this item was to introduce an ordinance that was previously presented to the Planning Commission and recommended to the City Council. He clarified that when it was presented to the Planning Commission, the ordinance included lowering the age of those present in hookah lounges, but now conformed to State law where the legal smoking age is 21, unless active military; however, patrons between 18 and 21 years of age may continue to be present in the smoking lounge, as currently allowed by the Code. Mr. Belmer clarified that large shade structures affixed to existing structures that serve as carports are clarified in the amendment and are not permitted in the ordinance, in response to Council Member Fusel's inquiry. Mr. Belmer continued that lattice-type carports were still allowed through the permitting process and there is no regulation regarding temporary tents for special events on residential property. In response to Mayor Pro Tern Kring, Mr. Belmer noted the State did not provide a reason for raising the smoking age for hookah lounges from 18 to 21. Mayor Pro Tern Kring express a desire to work with the State in this regard as hookah bars were a large part of the City's culture and losing business lowered sales tax revenue. Council Member Barnes asked if this amendment addressed permit parking, to which Mr. Belmer stated it did not. Mr. Belmer cautioned against making any changes to the proposal regarding the smoking age limit to avoid violation with State law and suggested directing staff to work legislatively on that issue. MOTION: Council Member Barnes moved to introduce ORDINANCE NO. 6461 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapters 18.04 (Single-Family Residential Zones); 18.06 (Multiple-Family Residential Zones); 18.08 (Commercial Zones); 18.10 (Industrial Zones); 18.14 (Public and Special-Purpose Zones); 18.16 (Regulatory Permits); 18.36 (Types of Uses); 18.38 (Supplemental Use Regulations); 18.42 (Parking and Loading); 18.44 (Signs); 18.46 (Landscaping and Screening); 18.50 (Senior Citizens' Apartment Projects); 18.54 (Sex-Oriented Businesses); 18.60 (Procedures); 18.62 (Administrative Reviews); 18.92 (Definitions); 18.116 (Anaheim Resort Specific Plan No. 92-2 (SP 92-2) and 18.120 (Anaheim Canyon Specific Plan No. 2015-1 (SP 2015-1)) of Title 18 (Zoning) of the Anaheim Municipal Code and finding and determining that this ordinance is exempt from the requirements to prepare additional City Council Minutes of April 2, 2019 Page 11 of 15 environmental documentation per California Environmental Quality Act (CEQA) guidelines, Section 15061(b)(3) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, seconded by Mayor Pro Tern Kring. ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil); NOES — 0. Motion carried; ordinance introduced. 19. ORDINANCE NO. (ADOPTION) AN URGENCY ORDINANCE OF THE CITY OF ANAHEIM imposing a temporary restriction on mobilehome space rental rate increases D112 within the City of Anaheim that exceed three percent annually, or the change in the consumer price index, whichever is greater (A copy of the full text of the proposed D116 ordinance is available for review in the Office of the City Clerk). or alternatively: ORDINANCE NO. (INTRODUCTION) AN UNCODIFIED INTERIM ORDINANCE OF THE CITY OF ANAHEIM imposing a temporary restriction on mobilehome space rental rate increases that exceed three percent (3%) annually, or the change in the consumer price index, whichever is greater. Determine that the approved ordinance imposing a restriction on mobilehome rental rate increases is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility it will have a significant effect on the environment, and it is not a "project", as defined in Section 15378 of the State CEQA Guidelines. DISCUSSION: Council Member O'Neil noted that the ad hoc committee regarding housing had met with the property owner and residents of Rancho La Paz and that the owner had implemented a temporary moratorium on rent increases through September 1, 2019 and would work on expanding an assistance program to help long-term residents. He stated housing was an issue across the City and the committee would bring options back over the next few months for Council's consideration. He noted that he was not in favor of rent control in Anaheim and believed most residents were also not in favor given their votes on Prop. 10. He also felt that the item no longer met the sense of urgency, as presented, given that the owner has voluntarily mitigated the issue. MOTION: Council Member O'Neil moved to table Item No. 19, seconded by Council Member Faessel. DISCUSSION: City Attorney Robert Fabela clarified the Council rules regarding non-debatable motions, taking items off the table at the same meeting, and re-agendizing items in the standard fashion. He advised that the motion to table was not debatable. MOTION OF ORDER: Council Member Moreno moved to suspend the rules and allow the motion to table to be debatable, seconded by Council Member Brandman. DISCUSSION: Mayor Sidhu noted the Council policy regarding a motion to table. City Council Minutes of April 2, 2019 Page 12 of 15 Council Member Brandman shared history regarding such motions, distinguished between a motion to table and a motion to postpone indefinitely, and stated a motion to postpone indefinitely was debatable. In response to Mayor Pro Tern Kring, Mr. Fabela explained the rules were adopted by Council and the current motions to table and to suspend the rules were non-debatable motions and the motion to suspend the rules was a privileged motion to be taken up first and required a 2/3 vote. MOTION OF ORDER: Council Member Moreno moved to suspend the rules and allow the motion to table to be debatable, seconded by Council Member Brandman. ROLL CALL VOTE: AYES — 3 (Council Members Barnes, Brandman, and Moreno); NOES — 4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil). Motion failed. MOTION: Council Member O'Neil moved to table Item No. 19, seconded by Council Member Faessel. 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; item tabled. 20. Consider appointment to fill an unscheduled vacancy on the Library Board, term to expire B105 June 30, 2019. Library Board: APPOINTMENT: Dr. Roberto Baeza (June 30, 2019). MOTION: Mayor Sidhu moved to nominate Dr. Roberto Baeza, seconded by Mayor Pro Tern Kring. ROLL CALL VOTE: AYES — 4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); NOES — 1 (Council Member Barnes); ABSTAIN — 2 (Council Members Brandman and Moreno). MOTION: Council Member Barnes moved to nominate Jackie Filbeck, seconded by Council Member Moreno. ROLL CALL VOTE: AYES — 2 (Council Members Barnes, and Moreno); NOES — 0; ABSTAIN — 5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil). PUBLIC HEARING: 21. ZONING CODE AMENDMENT NO. 2018-00156 C220 CONDITIONAL USE PERMIT NO. 2018-05956 PUBLIC CONVENIENCE OR NECESSITY NO. 2018-00143 C280 (DEV2018-00013) M142 LOCATION: 902 East Katella Avenue, located at the southeast corner of Katella Avenue and Lewis Street. REQUEST: To amend Title 18 of the Anaheim Municipal Code to modify Chapter 18.20 (Platinum Triangle (PTMU) Overlay Zone) to add small commercial buildings to the list of development agreement exemptions; approve a Conditional Use Permit to construct a new 3,060 square foot convenience market; and, make a determination of Public Convenience or Necessity for the sale of beer and wine for off-premises consumption. Environmental Determination: The City Council will consider whether the proposed action is Categorically Exempt from the requirements to prepare additional environmental City Council Minutes of April 2, 2019 Page 13 of 15 documentation per California Environmental Quality Act (CEQA) Guidelines, Section 15303 (Class 3 New Construction or Conversion of Small Structures). ACTION TAKEN BY THE PLANNING COMMISSION: Approved and recommended City Council approval of Zoning Code Amendment No. 2018-00156, Conditional Use Permit No. 2018-05956 (PC2019-014), Public Convenience or Necessity No. 2018-00143 (PC2019-015), DEV2018-00013. Vote: 5-0 (Chairperson Pro-Tempore Gillespie and Commissioners Armstrong, Dalati, Keys and White voted yes; Chairperson Carbajal and Commissioner Lieberman were absent) (Planning Commission meeting of February 20, 2019). RESOLUTION NO. 2019-030 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2018-05956 for property located at 902 East Katella, Anaheim, California, and making certain findings in connection therewith (DEV2018-00013). RESOLUTION NO. 2019-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM finding and determining that the Public Convenience or Necessity would be served by the issuance of an alcoholic beverage control license for the premises located at 902 East Katella Avenue, Anaheim, California (Determination of Public Convenience or Necessity No. 2018-00143) (DEV2018-00013). ORDINANCE NO. 6462 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 18.20 (Platinum Triangle Mixed Use (PTMU) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code relating to development agreement exemptions in the Platinum Triangle Mixed Use Overlay Zone and making findings and determinations in connection therewith. Deputy City Manager David Belmer noted that this item was a Zoning Code Amendment for a Conditional Use Permit (CUP) to allow for the construction for a new 7-11 in the Platinum Triangle and a request for Public Convenience and Necessity. He explained the applicant is proposing a 3,000 square foot, 7-11 facility on the southeast corner of Lewis Street and Katella Avenue with surrounding industrial, storage, and residential land uses. He showed renderings of the project and noted the parking was located in the rear of the building, there was landscaping along the streets, and articulated architecture in the structure. He further explained this application would not typically be before the Council, but as the site is within the Platinum Triangle, the developer would have to negotiate a Development Agreement for the site. Staff believed that was excessive and recommended a Zoning Code Amendment to allow commercial projects of less than 10,000 square feet in the Platinum Triangle to not require a Development Agreement, while still requiring them for larger, mixed-use developments. As a convenience market with a request to sell off-site alcohol, a determination of Public Convenience or Necessity is required, which was reviewed by the Police Department, Planning & Building staff, and the Planning Commission which all recommend its approval by Council. At 8:09 P.M., Mayor Sidhu opened the public hearing. Sheri Olson, 7-11 representative, thanked staff for working closely with them, agreed with the conditions of the CUP, reviewed the security measures they would be implementing, and offered to answer any questions. In response to Mayor Pro Tern Kring, she clarified the secret shopper provision with recording capabilities to ensure high standards. City Council Minutes of April 2,2019 Page 14 of 15 Jesse Barba, Creative Heights Design Inc., displayed a 3-D rendering of proposed store. In response to Council Member Moreno's inquiry regarding a letter of concern, Mr. Belmer noted the Platinum Triangle plan does allow for a convenience store. Senior Planner Scott Koehm advised he had received the email but no follow-up correspondence or conversations were required. Mr. Belmer further explained that the Platinum Triangle consisted of a mixture of developments and a project of this nature, stand-along convenience market, was initially contemplated and allowed in the plan in addition to those integrated within a larger development. Mr. Belmer noted this market would serve residents in and around the Platinum Triangle and further noted there were not many smaller sites remaining in the Platinum Triangle so there would not be many developments of this nature. Council Member Moreno expressed his support. Mayor Sidhu closed the public hearing. MOTION: Mayor Pro Tem Kring moved to approve RESOLUTION NO. 2019-030 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2018-05956 for property located at 902 East Katella, Anaheim, California, and making certain findings in connection therewith (DEV2018-00013); RESOLUTION NO. 2019-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM finding and determining that the Public Convenience or Necessity would be served by the issuance of an alcoholic beverage control license for the premises located at 902 East Katella Avenue, Anaheim, California (Determination of Public Convenience or Necessity No. 2018-00143) (DEV2018- 00013); and introduce ORDINANCE NO. 6462 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 18.20 (Platinum Triangle Mixed Use (PTMU) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code relating to development agreement exemptions in the Platinum Triangle Mixed Use Overlay Zone and making findings and determinations in connection therewith, 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. REPORT ON CLOSED SESSION: None PUBLIC COMMENTS (non-agenda items): None COUNCIL COMMUNICATION/AGENDA REQUESTS: Council Member Barnes thanked Congressman Lou Correa for recognizing Women of the Year, particularly Linda Andal and Sandra Sagert. She requested accountability at homeless shelters and the posting of an ombudsman's phone number at each site. She indicated a desire for priority for parks in the upcoming budget. In regards to Item No. 4, she requested a memo providing more details and specificity about line-item dollar amounts. She encouraged everyone to participate in the 2020 Census and to seek jobs, if interested. She also noted a need for additional blood donations. Council Member O'Neil requested a memo on staff hours spent on Item No. 19. Mayor Pro Tem Kring encouraged everyone to take precautions against mosquitos. She asked to send a proclamation to former executive director of the Pacific Symphony, Dorothy Rose, concurred by Council Members Moreno and Faessel. She also reported her participation as a City Council Minutes of April 2, 2019 Page 15 of 15 judge for the Disney Dreamers and Doers program and requested the students be recognized at the next Council meeting, concurred by Mayor Sidhu and Council Member Faessel. She announced the Day of the Child celebration at the Ponderosa Family Resource Center on April 26. Council Member Faessel announced the Anaheim High School and Katella High School baseball teams will play each other at Angels Stadium and encouraged all to purchase Angels ticket vouchers to support the teams. He recognized Crescent Elementary School for winning the California state championship in robotics and announced the Proud to be Me event at the Muzeo on April 13, celebrating Chicano culture. He recognized Michelle McReynolds, Applebee's General Manager, as an honoree by Congressman Lou Correa as a Woman of the Year and thanked Applebee's for their contributions to the community. He announced his attendance at the Cornelia Connelly gala, the South Junior High soapbox event, the Anaheim Beautiful Quartermania event at Brookhurst Community Center, and the Women are Powerful, Girls are Powerful event at Lincoln Elementary School. He acknowledged four Anaheim residents/employees recognized by the Trauma Intervention Program for their compassionate volunteer efforts and announced the Bookmobile roll-out on April 10th on Anna Drive. Council Member Brandman reported his participation, as an OCWD director, at the Children's Water Education Festival at UC Irvine and thanked staff, partners, volunteers, and the Public Utilities and Fire & Rescue Departments for the event. He also announced his attendance at the Snap the Gap STEM Program launch at Walt Disney School. Council Member Moreno displayed slides and commented on Item No. 19 regarding mobile homes and rent increases. He requested the moratorium ordinance be placed on the April 16 Council agenda, concurred by Council Members Barnes and Brandman. Mayor Sidhu reported the City paid for his travel expenses to attend the Big City Mayors lobbying day in Sacramento on March 20th, focused on homelessness efforts. He shared his and staff's attendance at the Federal Court meeting with Judge Carter, where the City requested additional Federal and State funding and assistance with the railroads. He reported the March 27 meeting organized between the Rancho La Paz owner, residents, and the mayor and Council Members Faessel and O'Neil which resulted in the owner rescinding the proposed rent increases and agreeing to work with the residents on a gradual path forward. ADJOURNMENT: At 8:57 P.M., with no objection, Mayor Sidhu adjourned the April 2, 2019 Council meeting. =.:,.►- . ubmitted, 4111111110ii-- 4" -resa Base, CMC City Clerk