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03/19/2019 ANAHEIM CITY COUNCIL REGULAR AND REGULAR ADJOURNED MEETING OF MARCH 19, 2019 The regular meeting of March 19, 2019 was called to order at 3:00 P.M. and adjourned to 3:30 P.M. due to lack of a quorum. The regular adjourned meeting of March 19, 2019 was called to order at 3:31 P.M. in the chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on March 14, 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. WORKSHOP: Budget/Capital Improvement Program City Manager Chris Zapata introduced the workshop and noted this was the first in a series of public meetings with today's presentation on Community Investment and Neighborhood Betterment. Budget Supervisor D'Anne Lee provided an overview of the 2020 Preliminary Proposed Capital Improvement Program (CIP), which is a five-year fiscal and planning tool that allocates funding to build or improve public infrastructure such as streets, parks, and libraries. She explained that capital projects have long and useful lifespans with a minimum cost of$50,000 and are funded by a variety of sources of revenue which are often restricted. She noted that today's presented CIP projects were a preliminary plan that included five-years of projected capital needs. However, only the first-year's needs would be adopted with the proposed budget in June. Ms. Lee advised that until a project is awarded, projects may change in scope or be re- prioritized. Additionally, she advised that one-time revenue funding sources included restricted grants, transportation taxes, development impact fees, and bond proceeds which were generally one-time in nature or restricted for a specific purpose. She explained that one-time revenues can be used for one-time projects such as parks, community centers, fire stations, or other municipal facilities but cannot be used for on-going services. She advised that CIP funding comes from outside sources the City cannot control and may have restrictions on how the funding is spent. She reported that on-going services were supported by on-going revenue streams that are continuous and unrestricted and will be addressed at the next workshop. Ms. Lee reported that the operating budget will be discussed at the next workshop, followed by three community outreach sessions in which the budget preview document, Story Maps CIP Viewer, Balancing Act on-line budget prioritization tool, and OpenGov will be made available. She advised that the budget process will end with two workshops in June with budget adoption scheduled for June 18th. Ms. Lee advised the preliminary proposed.CIP included a $211 million investment and was divided into seven project categories, including: Recreation, Parks and Libraries; Downtown Projects and Municipal Facilities; Commercial Entertainment Venues; Electric Systems; Water Systems; Wastewater; and Transportation Improvements. She presented and explained Story City Council Minutes of March 19,2019 Page 2 of 27 Maps, which is an online based GIS mapping tool which highlights the CIP projects and can be used by the public by navigating to www.anaheim.net/mycitybudcet and she also provided a brief demonstration. Community Services Director Larry Pasco highlighted some community-driven CIP projects and advised that the CIP plan totaled $4.8 million dollars. He advised the Maxwell Dog Park Project planning included several well-attended public input meetings which led to the conceptual design. The 1-acre amenity will be located in the northern part of the park along Broadway, west of the parking lot, and will feature new fencing, benches, and dog-friendly plants. He advised the project will be completed in mid-2020 and has a budget of$800,000 comprised of Park Development fees. Mr. Pasco highlighted the Downtown Community Park Project and advised that several community meetings were held with adjacent neighbors and local community groups, including the Senior Citizens Club, to discuss the type of amenities desired for the space. He advised that plans are to relocate the skate area to the corner of Broadway and Philadelphia Streets, add a children's play area, park benches, and a potential water feature. He stated the space has grown in importance over the years as it provides a central city park where special events, such as the annual Dia de Los Muertos festival is held each fall. Construction will begin in 2020 and has a budget of$1 million funded by the former Redevelopment Agency bond proceeds. Mr. Pasco presented the La Palma Park Soccer Fields Project which will allow staff to relocate some of the concentrated soccer field use at other parks and help alleviate deteriorated soccer field conditions. He noted new improvements include three designated soccer fields, a new tot lot, restroom and concession building, and a potential new indoor sports building. The plan would also provide improvements which would enhance the park's capability to host large outdoor events such as the annual Cinco de Mayo festival. He reported that community meetings were held and conceptual designs have begun. He anticipates completion in mid-2021 and the project may need to be completed in two phases based on funding. In the proposed fiscal year$1 million is budgeted for design, permits, and the assembly of construction documents which is funded by Park Development Fees and the sale of land. Mr. Pasco also presented the Brookhurst Community Center Teen Center Room Addition Project and reported that a 1,000 square foot room will be added to the northern portion of the Community Center which will enable expanded programming for staff to better deliver programs and services to our youth. The project will begin in early 2020 and the project budget is $650,000. Mr. Pasco highlighted the Aloe Greens-Developer Project located in the Platinum Triangle. He noted the 1.2 acre urban park will include a water feature, amphitheater, children's playground, and a group picnic area. This is a developer-funded park but will be accessible to all Anaheim residents. Public Works Director Rudy Emami highlighted the Platinum Triangle Fire Station and Emergency Operations Center Project which will add a new fire station to the Platinum Triangle and help improve service delivery and response times. The new Fire Station 12 would be located at Orangewood Avenue and Santa Cruz Street,just east of the 1-5. He advised that a new Emergency Operations Center(EOC) Project is being considered to be constructed adjacent to the proposed Platinum Triangle Fire Station 12. He noted that the current EOC resides in in 40 year-old modular trailers which have exceeded their useful lifecycle and require significant City Council Minutes of March 19,2019 Page 3 of 27 maintenance and repairs. The EOC is activated only a few times each year for significant weather and fire events or to coordinate large sporting or political events, however, the EOC is used daily to host emergency training for city staff and volunteer groups such as the CERT and RACES teams. The department's strategic plan identified the Platinum Triangle as an optimal location, however, staff is considering alternatives that may reduce costs for this unfunded • project. Mr. Emami highlighted the Public Works CIP which is the financial document for the repair and construction of capital assets, such as sidewalks, traffic signals, roadways, sewers, and storm drains. The CIP helps prioritize and optimize the use of available resources to maintain and replace the City's infrastructure. He advised that only funded projects are included in the Public Works CIP, with funding provided by restricted funding sources such as grants and transportation funding. Mr. Emami presented the Neighborhood Improvements Program which takes a holistic approach and is designed to comprehensively address public right-of-way improvements. He noted that work consists of tree pruning, street resurfacing, and signage repair. He highlighted projects in the following four neighborhoods: the second phase of the Sabina Neighborhood project located in central Anaheim, bordered by La Palma Avenue and East and Sycamore Streets; the Lindacita Neighborhood project in west Anaheim, bordered by Lincoln, Orange, and Knott Avenues and Beach Blvd.; the Valdina Neighborhood project in west Anaheim, bordered by La Palma, Crescent, Gilbert, and Brookhurst; and the Crescent Neighborhood project in west Anaheim, bordered by Glenoaks, Chippewa, and Euclid Street and the 1-5. Together these improvements will benefit a population of approximately 27,000 residents and 6,000 homes. Mr. Emami further highlighted that in October 2018, the City Council approved $1 million in one- time funding for community improvements. These improvements address traffic calming, permit parking, and neighborhood beautification. Of the 73 permit parking applications in the queue, staff will have completed 48 petitions by the end of the fiscal year. As for traffic calming, of the 60 petitions, 30 are scheduled to be completed by the end of the fiscal year. Mr. Emami highlighted the Street Rehabilitation Program which provides for a well-maintained and efficient transportation network. This project will preserve and extend the useful life of the pavement and replace non-ADA compliant curb ramps, damaged curbs and gutters, driveway approaches, and sidewalks as well as the replacement of traffic signal loops, striping, and pavement markings. Funding for these projects includes Gas Tax and SB1. He highlighted three of the 12 projects in this area which include Ball Road from West to Claremont, Broadway from Anaheim to East Street, and Euclid Avenue from Crescent to the 91 Freeway. Mr. Emami reported on the Active Transportation Program and noted that Public Works was recently awarded $4 million in grant funding from the State's Active Transportation Program. These programs focus on safe routes to schools and safe sidewalks and ramps. Improvements consist of new concrete sidewalks, curbs, and gutters and, in some locations, landscaped parkways. Design and right of way phases are scheduled for Fiscal Year 19/20 with construction beginning in Fiscal Year 20/21. Mr. Emami highlighted the Storm Drain Construction Program which identifies needs for primary drainage areas in Anaheim. Staff has successfully competed for$4.6 million in grant funding for many needed projects. The two projects underway are the Modjeska Park Underground Storm Water Detention and Infiltration System project and the La Palma Avenue and Richfield Storm City Council Minutes of March 19, 2019 Page 4 of 27 Drain Extension and Storm Water Infiltration project, which will reduce flooding, improve water quality, and recharge the groundwater basin. Public Utilities General Manager Dukku Lee presented the Public Utilities CIP. He noted the CIP helps avoids prolonged outages, helps modernized equipment with the latest technology, provides field staff with operational flexibility, and improves system performance to be among the top performing utilities in the industry. Mr. Lee highlighted the Streetlight Additions & Improvements and noted that streetlight upgrades include converting streetlights to LED. He reported over 4,200 or 21% of Anaheim's street lights were converted to LED. Recently completed projects include the Acacia neighborhood north of the 91 freeway, the frontage of the Festival Center, Lewis Street, Broadway fronting Maxwell Park, Western Avenue fronting Centralia Elementary, and the Rose/Vine/Bush neighborhood. Next fiscal year, another.4,000 street lights will be upgraded and steps will be taken to coordinate with residents and businesses. Mr. Lee highlighted System Undergrounding which undergrounds power lines, improves system reliability, and enhances visibility along Anaheim's major roadways. Projects are recommended by a subcommittee of Planning Commissioners and Public Utilities Board members based on criteria that includes reliability improvements, coordination with other projects, geographic diversity, aesthetic improvements, and availability of funding. Current undergrounding projects in construction include Euclid from Broadway to south of Katella, Lincoln and Rio Vista, and Orangewood from Harbor to Lewis. Projects in design include Beach Boulevard, which requires extensive coordination with Southern California Edison and Caltrans, and Santa Ana Canyon Road from Lakeview to Imperial Highway. Mr. Lee highlighted Energy Generation Projects and noted the next phase of the Solar First Schools was underway with a budget of$4 million, as Utilities recently completed the first phase of the program, constructing nine solar shade structures at eight elementary schools and one high school. He noted the solar structures produce enough renewable energy to power 400 homes annually. Utilities is also working on an online educational resource allowing students to analyze data from each solar shade structure, which would accompany lesson plans designed for either elementary or high school students. The energy from the shade structures is now available to income-qualified customers through the Green Power Discount program. Approximately 400 participants are already receiving a $10 discount off their monthly electric bill, and this discount is available to both homeowners and tenants that meet the income threshold of $32,800 for a family of four. Mr. Lee highlighted Electric Field Capital and a project to replace the existing crew quarters building that is 44 years old. The building houses electric and water crews, includes areas to repair equipment, and provides an assembly room for safety training. Additionally, it can serve as a backup call center which can be activated during emergencies. He advised a second project is a Sustainability Education Center to help educate residents and students on energy and water efficiency and to demonstrate the latest innovations in electric transportation, renewable energy, and drought tolerant landscaping. This is another step towards making Anaheim a Smart City. Mr. Lee highlighted Water System Reliability and noted that it helps to provide and maintain a high-quality water system and to provide adequate water flow for fire suppression. The Lenain Water Treatment Plant, originally constructed in 1968, saves money by allowing the utility to purchase lower cost water, store it at the adjacent Walnut Canyon Reservoir, and be treated. City Council Minutes of March 19,2019 Page 5 of 27 Construction is currently underway to upgrade aging equipment that has outlived its useful life. Additionally, the treatment plant will be expanded from its current capacity of 15 to 20 million gallons of water per day. Project completion is scheduled for spring 2020. As for sustainable water supply solutions, Utilities is working to take advantage of the regional recycling plant in Fountain Valley that is expanding its capacity. Utilizing the recycled water line along the Santa Ana River and serving it to new developments and existing outdoor landscaping in South Anaheim will preserve groundwater for potable use and help achieve a drought-proof supply for the benefit of water customers across North Orange County. Recycled water projects are recognized as a sustainable resource, and are why Anaheim applied for and received a $3.4 million grant from the State Water Resources Control Board through their Water Recycling Funding Program. Mr. Lee reported this water project was currently in design and construction is expected to begin later this year. DISCUSSION: Budget Supervisor D'Anne Lee advised that the proposed CIP for 2018-2019 was $230 million, in response to Mayor Sidhu's inquiry, and noted the number fluctuates from year to year as projects move from design to the construction phase. Mr. Pasco advised the selection criteria for projects that leverage park development fees and grant funds are spread throughout the City and staff looks for areas which have gaps in service, in response to Mayor Sidhu's inquiry. He also advised that staff seeks community input to determine which projects are important to residents. In response to Mayor Sidhu's inquiry, Mr. Emami advised that street projects start with the Master Plan to determine street conditions which provides a framework and Public Works will coordinate with other departments to ensure that projects do not overlap. He also advised that the sidewalk projects are prioritized by coordinating with the schools. Public Utilities General Manager Dukku Lee advised 128 circuit miles of undergrounding has been completed to date, in response to Mayor Sidhu's inquiry. He also noted that the major• arterials are prioritized before alleys. He did note that each request is considered on a case by case basis. City Manager Chris Zapata advised that the funding is allocated by City Council but is also driven by fund-specific requirements, in response to Mayor Sidhu's inquiry. He also noted that the Beach Boulevard Specific Plan (BBSP) can be addressed and a report will be prepared at a future date to help City Council better understand the investment to fund the BBSP concept. Mayor Sidhu suggested the City Manager explore ways to inform residents of CIP Projects happening in their neighborhoods. Mr. Zapata stated staff will provide City Council a breakdown for each of the CIP Projects through each District at a future meeting, in response to Council Member Barnes inquiry. Council Member Barnes would like to see items that were removed from parks due to the homeless crisis be replaced at Maxwell Park. Mr. Pasco advised that $800,000 has been identified toward various parks to replace equipment and perform upgrades. Council Member Barnes noted her support for sidewalk upgrades around schools. City Council Minutes of March 19,2019 Page 6 of 27 Mayor Pro Tern Kring requested that a talking crosswalk signal be investigated for installation near Loara Elementary School. She also expressed her support for the Maxwell Park Dog Park. Mayor Sidhu also supported the Maxwell Park Dog Park. Council Member Faessel noted that Public Utilities has worked very closely with District 5 street lighting and all the improvements were based upon input by the local communities. Council Member Moreno inquired about improvements for the Northeast Colony CIP for streets, sidewalks, and sewage and noted that the project looks like it was missing the middle of the area. Mr. Emami advised that drainage needed to be addressed in the area before improvements could be made. He also noted that some sections require more funding and each section is evaluated separately based on funding availability. Mr. Emami advised that Sycamore Street was being evaluated for improvements, in response to Council Member Moreno's inquiry. He also advised that the street calming improvements take longer due to needed community input and there was enough funding available to cover those projects. Mr. Pasco advised that there was a discussion to have joint-use with Anaheim High School for the use of the new pool, in response to Council Member Moreno's inquiry. He also noted that there were very few grant opportunities for aquatic facilities. Council Member Moreno inquired about green space in the Northern Colony. Mr. Pasco advised that land has been identified and the City is investigating the development located around the Ball Road.Basin for this purpose. Council Member O'Neil thanked the staff for the presentation and noted it was difficult to find the Story Map and requested that staff make it readily accessible to the public. Mr. Emami advised that the project viewfinder page was more appropriate for review by the public. Council Member Brandman thanked staff for a tremendous staff report. He also expressed concerns for coyotes and noted that there was a Coyote Management Plan and urged staff to ensure it was reviewed in the CIP. ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: William Fitzgerald, Home Owners Maintaining Our Environment, spoke of residents' rights to freedom of speech. CLOSED SESSION: At 4:37 P.M., Mayor Sidhu recessed to closed session for consideration of the following: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Kim McCoy v. City of Anaheim, et al., Orange County Superior Court Case No. 30-2018-01037863 City Council Minutes of March 19,2019 Page 7 of 27 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Shelley McKerren v. City of Anaheim, Orange County Superior Court Case: No. 30-2017-00938143-CU-OE-CJ C At 5:04 P.M., the City Council session was reconvened. INVOCATION: Pastor Mark Bove, Calvary Chapel Anaheim FLAG SALUTE: Council Member Jose F. Moreno Acceptance of Other Recognitions (To be presented at a later date): Recognizing March 31, 2019, as Cesar Chavez Day Andres Chavez, on behalf of the Chavez family and the Cesar Chavez Foundation, thanked Council for recognizing Cesar Chavez Day, provided historical information about his grandfather, and encouraged all to live as examples of service and advocate for all people. Recognizing March 2019, as Arab American Heritage Month Nahla Kayali, Access California Services founder and executive director, accepted the recognition and thanked Council for recognizing Arab American heritage and thanked the City for their support for immigrants and refugees. Recognizing March 2019, as National Poetry Month Grant Heir, City Poet Laureate, thanked Council for recognizing National Poetry Month, reflected on his first year of service, and shared various poems. Recognizing March 2019, as Esophageal Cancer Awareness Month 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. Mark Richard Daniels encouraged everyone to set aside differences and stand together against evil, suggested focusing on homelessness as a priority during budget proceedings, requested a log of those visiting the seventh floor of City Hall, and suggested Council recognize people who help the homeless. R. Joshua Collins, Homeless Advocates for Christ, noted that he has heard good feedback about the Salvation Army homeless shelter, but still hears concerns from the homeless about entering area shelters due to fears of bullying, sexual assault, getting sick at the shelter, and potential property loss. He felt City Council should consider Accessory Dwelling Units (ADUs)to house the homeless. Lastly, he expressed concern regarding the living situation at La Palma Royale Assisted Living facility and suggested the City investigate. City Council Minutes of March 19,2019 Page 8 of 27 Teresa Raridan spoke regarding her affordable home purchase in Rancho La Paz Mobile Home Park and expressed concern regarding the new owner's 40% to 300% rent increases imposed on tenants. She also noted the owner was known for forcing tenants into foreclosure and purchasing the properties to reclassify the park as a family park. She requested that City Council establish a rent stabilization task force to explore rent subsidies which includes subsidies for middle-class mobile home parks residents. Lupe Ramirez, resident of Rancho La Paz Mobile Home Park, advised she recently received a rent increase notice of$275 per month. She noted there were several residents who would not be able to afford these rent increases and encouraged City Council to investigate. Paul Vicknair, Commissioner, Senior Citizen Commission District 3, expressed concern regarding affordable housing, especially for Anaheim seniors. He encouraged City Council to review the City of Glendale's recently passed ordinance which requires landlords to provide relocation assistance when rent is increased above 7% with a 12-month period. William Fitzgerald, Home Owners Maintaining Our Environment, expressed concern regarding free speech of Anaheim residents. He stated that a developer at the last City Council meeting was entitled to speak for an unlimited amount of time while Anaheim residents were required to speak for only two minutes, thus violating their free speech. Mayor Sidhu reminded the public to refrain from making personal, threatening, abusive or slanderous, or profane remarks against the City Council, staff, or any member of the public. Kevin Garrett, President, Associated Builders and Contractors, Southern California Chapter, advised City Council he is the operator of a local apprenticeship program in Anaheim which trains State-approved apprentices in electrical, low voltage, sheet metal, and plumbing. He expressed opposition to the proposed Community Workforce Agreement which he felt discriminated against 83% of California construction workers who are non-union. Haitham Oweini expressed concern for Item No. 03 and encouraged City Council to oppose the item. Art Montez, Centralia School District, expressed concern for Item No. 03 and encouraged City Council to oppose the item. Duane Roberts encouraged Council Member Brandman to vote no on Item No. 22. He believed that Senate Bill 689 has nothing to do with local control. He believed that needle and syringe exchange programs were effective ways of reducing the spread of infectious diseases and encourages proper disposal of those needles. Additionally, he objected to the City of Anaheim using taxpayer money to promote the Anaheim First Advisory Committee which is a private entity. Jeanine Robbins shared her belief that the City Council postponed the homeless update given the activity in the last two weeks. She also expressed concern regarding Item No. 23 which includes zone reclassification and the approval of the 39-unit housing development. She encouraged City Council to review rental affordability and rent stabilization tools. City Council Minutes of March 19,2019 Page 9 of 27 Roger Brannen, Rancho La Paz Mobile Home Park resident, expressed concerns over the rent increases at the park and encouraged City Council to investigate and explore rent affordability and stabilization in the City of Anaheim. Anthony Novello expressed his support for Item No. 03 and encouraged City Council to pass the item. Kathleen Biggs, Rancho La Paz Mobile Home Park resident, expressed concerns over the rent increases at the park and encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Ruben Villarino encouraged City Council to pass Item No. 03. Ernesto Medrano, Los Angeles/Orange County Building and Construction Trades Council, expressed his support for Item No. 03 and encouraged City Council to pass the item. Mike Dennie expressed his support for Item No. 03 and encouraged City Council to pass the item. Angie Cano, City of Santa Ana Planning Commissioner, expressed concern for Item No. 03 and encouraged City Council to oppose the item. Guadalupe Cortes expressed concern for Item No. 03 and encouraged City Council to oppose the item. Nicholas Dunlap, Volunteer Board Member, Apartment Association of Orange County, encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Doug Mangione, International Brotherhood of Electrical Workers, expressed his support for Item No. 03 and encouraged City Council to pass the item. Keith Harkey, Business Manager, Iron Workers Local 433, expressed his support for Item No. 03 and encouraged City Council to pass the item. Austin Lynch, Organizing Director, Hotel Workers Union, expressed his support for Item No. 03. Joshua Ashton, International Brotherhood of Electrical Workers Local 441, spoke in support of Item No. 03 and encouraged City Council to pass the item. John Hanna, Southwest Regional Council of Carpenters, expressed his support for Item No. 03 and encouraged City Council to pass the item. Joese Hernandez expressed his support for Item No. 03 and encouraged City Council to pass the item. He also encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Irma Mendoza encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. City Council Minutes of March 19,2019 Page 10 of 27 Matthew Buck, California Apartment Association, encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Rosaisela Lopez encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Mariana Rivera encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Wes Jones encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim and expressed his support for Item No. 03 and encouraged City Council to pass the item. He believed that the City Council has not done enough to bring affordable housing to Anaheim. Angelica Mejia expressed concern regarding Item No. 23 which includes zone reclassification and the approval of the 39-unit housing development and encouraged City Council to postpone the item and meet with residents. Lorena Barrios expressed concern regarding Item No. 23 which includes zone reclassification and the approval of the 39-unit housing development and encouraged City Council to postpone the item and meet with residents. Susan Gapinski expressed her support for Item No. 03 and encouraged City Council to pass the item. Cesar Covarrubias, Executive Director, Kennedy Commission, expressed concern regarding the lack of affordable housing in Anaheim and felt housing policies in place today were not working. Additionally, he encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Sandra Brooks expressed concern regarding the conditions of the homeless shelters and encouraged the City Council to investigate and explore affordable housing in the City of Anaheim. Lou Noble expressed concerns about the homeless shelters and homeless who are still living on the streets of Anaheim. Glynndana Shevlin, Shop Steward, UNITE HERE Local 11, expressed her support for Item No. 03 and encouraged City Council to pass the item. Maria Isabel Garcia, Union Housekeeper, Anaheim Hilton, expressed her support for Item No. 03 and encouraged City Council to pass the item. Marla Darragh, the daughter-in-law of a Rancho La Paz Mobile Home Park resident, expressed concerns over the rent increases at the park and encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Yolanda Banuelos expressed her support for Item No. 03 and encouraged City Council to pass the item. City Council Minutes of March 19,2019 Page 11 of 27 Paul Hyek expressed concern regarding rent increases in Anaheim and felt a moratorium should be enacted. He also expressed concern regarding homeless shelter providers. Aida Garcia, Rancho La Paz Mobile Home Park resident, expressed concerns over the rent increases at the park and encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Vern Nelson expressed concern regarding Item No. 23 which includes zone reclassification and the approval of the 39-unit housing development. He also expressed concern regarding reducing public speakers' time at the last City Council meeting from ten minutes to two minutes. Christine Schachter, Pacific West Association of Realtors, encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. David Duran expressed concerns about the homeless efforts by the City of Anaheim and encouraged City Council to work with local homeless advocates to work on solving homeless issues and concerns. Mayor Pro Tern Kring inquired to the details regarding a death at the Anaheim homeless shelters and asked Mr. Duran to contact her office for further discussion. Josue Arias expressed concern regarding Item No. 23 which includes zone reclassification and the approval of the 39-unit housing development. Kenneth Batiste expressed concerns about Disney's influence on the current City Council. He requested a recall of Mayor Sidhu. Cecil Jordan Corken, Outreach Homeless Ministries, reported on his outreach efforts and spoke about the recent construction of Star Wars on the Disney property. Carlos Salgado, International Brotherhood of Electrical Workers Local 441, expressed his support for Item No. 03 and encouraged City Council to pass the item. Adam Wood, Building Industry Association Orange County Chapter(BIAOC), encouraged City Council to explore housing affordability in the City of Anaheim. Victor Valladares encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Kevin Brault expressed his support for Item No. 03 and encouraged City Council to pass the item. Peter Warner expressed concern regarding the current homeless service providers, specifically Mercy House. He also encouraged residents of the Rancho La Paz Mobile Home Park to contact curtisgamble1@gmail.com for free meal opportunities. City Council Minutes of March 19,2019 Page 12 of 27 CITY MANAGER'S UPDATE: City Manager Chris Zapata announced Representative Lou Correa named Linda Andal and Sandra Sagert as Women of the Year and the Anaheim Convention Center recognized Carla Dragovich as the 2018 Employee of the Year. He invited Interim Fire Chief Pat Russell to the podium to report on the recent accreditation process for the Fire & Rescue Department. CONSENT CALENDAR: At 7:38 P.M., the consent calendar was considered with Mayor Sidhu pulling Item No. 03, Council Member Barnes pulling Item No. 05, Council Member Moreno pulling Item No. 23, and Council Member Brandman pulling Item No. 22 for further discussion. MOTION: Mayor Pro Tern 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 Barnes. ROLL CALL VOTE: AYES- 7 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES —0. Motion carried. 1. Receive and file minutes of the Community Services Board meetings of November 8, B105 2018, January 10, 2019 and February 14, 2019; Cultural and Heritage Commission meetings of November 15, 2018 and December 20, 2018; Parks and Recreation Commission meetings of September 26, 2018, October 24, 2018 and December 5, 2018; Public Utilities Board meeting of January 23, 2019; and Sister City Commission meeting of January 28, 2019. D116 2. Receive an update on homeless efforts in Anaheim (continued to Council meeting of April 2, 2019). 4. Review the 2018 Annual Housing Element Progress Report and direct the Planning and D159 Building Director to submit the report to the California Department of Housing and Community Development and the Governor's Office of Planning and Research. 6. Approve proclamation recognizing Donate Life Month (April 2019). D116 7. Approve an increase in the contingency authority for the HVAC System Replacement Project at Anaheim City Hall from the original 20% to 25%, increasing the original contract amount of$975,000 to $1,170,000, due to unforeseen costs resulting in changes D180 to the project scope, and authorize the Purchasing Agent to execute future change orders as necessary up to the new 25% contingency limit to avoid any delays in the completion of the project. 8. Accept the bid of Warren Distributing, Inc., in the amount of$59,206.30 plus a 20% contingency, for the purchase of AC-Delco and Motorcraft repair parts for a one year D180 period with four one-year optional renewals, and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #9260. City Council Minutes of March 19,2019 Page 13 of 27 D180 9. Accept the bid from Dry Canyon, LLC, in the amount of$36,405.86 plus applicable tax, for the purchase of flame resistant clothing 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 #9248. 10. Award the contract to the lowest responsible bidder, Shawnan, in the amount of AGR- $1,309,893.20, for the La Palma Avenue and Magnolia Avenue Rehabilitation Project, 11430 authorize the Finance Director to execute the Escrow Agreement, and determine the project is categorically exempt under the California Environmental Quality Act. 11. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing D180 Agent to issue master agreements to KONE, Inc., in the combined amount not to exceed $780,000, for elevator and escalator maintenance and repair services in various City facilities and the Anaheim Convention Center for a one year period with option to renew in accordance with the terms of the U.S. Communities Cooperative Contract EV2516. 12. Waive Council Policy 4.1 and approve an agreement with Scott Maddy dba SDM AGR- Consulting, Inc., in an amount not to exceed $150,000 annually, from February 1, 2019 to 11431 January 31, 2020 with an option to renew for two consecutive one-year periods, to coordinate and manage police facility infrastructure projects, coordinate with Anaheim Police Department Information Technology staff on projects within police facilities, and manage and maintain the department's 800 mhz radio systems; and authorize the Chief of Police to execute the agreement and take the necessary actions to implement and administer the agreement. 13. Approve an agreement(Contract No. C-130827)with CSU Fullerton Auxiliary Services AGR- Corporation, as fiscal and administrative representative for California State University, 11432 Fullerton, in an annual amount of$76,621 plus a 10% annual contingency, for the coordination, development, implementation, and administration of a summer college internship program at the City of Anaheim for a one year period with up to four one-year extensions, and authorize the Public Utilities General Manager, or designee, to execute the agreement and any other related documents, and take all action as are necessary, required, or advisable to fund, implement, and administer the agreement. 14. Approve and authorize the City Manager to execute Cooperative Agreement No. C-8- AGR- 2015 with Orange County Transportation Authority, in the estimated cost of$54,422.11, 11433 for the administration of the Orange County Taxi Administration Program (OCTAP) effective January 1, 2019 through December 31, 2020 and adopt the new OCTAP regulations. 15. Approve and authorize the Chief of Police, or his designee, to execute the Subaward Agreement with the City of Los Angeles, in the amount of$280,000, for reimbursement of AGR- funds expended for training and exercises, and to execute any other required documents 11434 authorized under the FY 2016 Program to Prepare Communities for Complex Coordinated Terrorist Attack Grant, and amend the Police Department budget for Fiscal Year 2018/19 accordingly. City Council Minutes of March 19,2019 Page 14 of 27 16. Approve the First Amendment to Agreement with Lyons Security Service, Inc., increasing AGR- compensation by $50,000 for a total amount not to exceed $199,429.30, for additional 10951.A.1 security patrol services in City parks for the initial term May 21, 2018 through May 20, 2019; any additional renewals as allowed by the original Agreement shall not exceed $165,000 annually, and authorize the Community Services Director to execute the amendment and take the necessary actions to implement and administer the amendment. 17. Approve the First Amendment to Workforce Innovation and Opportunity Act Occupational Training Agreement with Career Development Solutions, LLC, dba New Horizons Career AGR- Development Solutions, increasing the not to exceed amount from $250,000 to $350,000, 10581.1 for continued occupational skills training for individuals receiving services through Anaheim Workforce Connection and authorize the Workforce Development Manager, or her designee, to administer the amendment. R100 18. RESOLUTION NO. 2019-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM supporting the 2020 Census Partnership. 19. RESOLUTION NO. 2019-023 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM ratifying and approving the actions of the Anaheim Director of Public Works, or designee, in submitting a grant application on behalf of the City of Anaheim to the State Water Resources Control Board Division of Financial Assistance for the Proposition 1 Storm Water Grant Program for the Ball Road Storm Water Improvements Project and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget accordingly and determining that these actions are exempt from the California Environmental Quality Act(CEQA) pursuant to Guideline Section 15303 (grant funds in the amount of$5,141,166). 20. RESOLUTION NO. 2019-024 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM authorizing the Director of Public Works or designee to submit an application to the United States Department of the Interior, Bureau of Reclamation for the WaterSmart Grants: Drought Resiliency Projects for Fiscal Year 2019 for the La Palma/Richfield: Urban Model for Storm Water Detention and Infiltration Project and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget accordingly; and determining that these actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Class 1, Section 15301 (Existing Facilities) and Class 2, Section 15302 (Replacement or Reconstruction) (grant funds in the amount of$750,000). P110 21. RESOLUTION NO. 2019-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM vacating a portion of two Public Utility Easements located at 3190 R100 East Miraloma Avenue pursuant to California Streets and Highways Code Section 8330, Et Seq. —Summary Vacation. (ABA2018-00380). City Council Minutes of March 19,2019 Page 15 of 27 END OF CONSENT CALENDAR: 3. Receive an overview on Community Workforce Agreements (CWAs) and direct staff to D116 begin negotiations with the Los Angeles/Orange Counties Building and Construction Trades Council for any future proposed CWA which would be brought forward to City Council for its consideration, further policy direction, and/or approval. Public Utilities Administrative Services Manager David Albaugh provided an overview of Community Workforce Agreements (CWA)and noted they are pre-hire agreements between agencies and labor organizations for specified construction projects and focus on creating opportunities for members of the local community. He advised they can also be used by contracting parties to spur the local economy by keeping as many jobs in the area as possible. Mr. Albaugh reported that through the use of local hiring halls, the agreements promote the hiring and retention of local workers. Many different types of contracting agencies, such as cities, school districts, or special districts use CWAs on a variety of projects. Mr. Albaugh reported Anaheim has previous experience with project-based employment targets that are consistent with CWA goals. He also advised 17 local agencies that currently employ CWAs were surveyed and shared the results. He reported that the survey resulted in five areas of significance include duration, project minimum thresholds, applicability limitations, hiring targets, and hiring priorities and presented results to City Council. Mr. Albaugh advised the next part of the analysis focused on which Anaheim projects this could apply to depend on the establishment of a project minimum threshold and it was determined that 56 projects were eligible under CWAs. Mr. Albaugh reported that should Anaheim determine a CWA is advantageous, the local hiring options that can be considered are Anaheim residents, Orange County residents, military veterans, current or former homeless through assistance programs, and graduates of Anaheim high schools. Mr. Albaugh advised that one of the major considerations of a CWA is the financial impact on the agency. In discussing this issue with staff from several agencies, the material and equipment costs were unaffected, and labor costs were subject to prevailing wage requirements with certified payroll reporting. He advised there was potential for reduced competition, especially on smaller projects. He also advised that CWAs may result in increased administration, tracking, reporting, and auditing options. Lastly, there may be a need for an external consulting firm. Mr. Albaugh advised it was staff's intent to continue to study CWAs and to seek Council direction on a potential framework for Anaheim. DISCUSSION: Mayor Sidhu noted that all Public Works projects were completed at the prevailing wage and that the prioritization of veteran hiring and local hiring can only be accomplished with a CWA. He believed the proposal warranted further discussion with the Los Angeles/Orange Counties Building and Construction Trades Council to craft an agreement that makes sense. City Council Minutes of March 19,2019 Page 16 of 27 Council Member O'Neil noted that a CWA typically imposes a project to use union labor and felt it was not being made clear in the presentation. He referenced the City of Santa Ana's CWA agreement and was concerned with some terms of the agreement. Public Utilities General Manager Dukku Lee advised that, with larger projects, contractors tend to hire out of union hiring halls due to the sheer number of laborers needed, in response to Council Member O'Neil's inquiry. He also advised should a contractor choose to not hire union labor, they are not required to do so but they would be required to pay for some of the fringe benefits associated with hiring that individual. He also advised that subcontractors would be subject to the CWA, in response to Council Member O'Neil's inquiry. Continuing, Mr. Lee advised that workers whose employers pay into the required fringe benefits would have access to those benefits regardless of whether or not they are a union member. He also advised that local workers would be given priority regardless of their seniority. Council Member Moreno noted that the Anaheim Union High School District approved a CWA for their students which gives them apprentice options other than college. He thanked staff for their hard work on the proposal and expressed concern that he was not included on the proposed task force as he agendized the item. Council Member Moreno requested that the local hire goal be set at 40% and requested that the task force explore the tiers being Anaheim residents as a priority and then neighboring cities before going countywide. City Attorney Robert Fabela advised there was no legal requirement that the Council Member who agendized the item be appointed to an ad-hoc committee, in response to Council Member Barnes inquiry. She requested that Council Member Moreno be a member of the Mayor's Task Force given his hours of work regarding this item. Council Member Brandman expressed his support for Anaheim residents to work on these projects and thanked staff for their excellent report. MOTION: Mayor Sidhu moved to create a Mayor's Task Force, with Council Members Brandman and Faessel, to work with staff to negotiate the terms of an agreement with the building trades to be brought back for Council consideration at a future date, seconded by Council Member Faessel. ROLL CALL VOTE: AYES—6: (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, and Faessel). NOES — 1: (Council Member O'Neil). Motion carried. 5. Adopt the 2019 Legislative Platform that guides the City's support of, or opposition to, state and federal legislation and authorize city staff to contact federal and state D116 representatives to advocate for legislative proposals consistent with the goals outlined within the 2019 Legislative Platform. Deputy City Manager Greg Garcia reported that this item is to adopt the 2019 Legislative Platform that guides the City's support of, or opposition to, state and federal legislation and authorizes city staff to contact federal and state representatives to advocate for legislative proposals consistent with the goals outlined within the 2019 Legislative Platform. He advised the platform seeks to not only secure critical resources for the City but also outlines policy City Council Minutes of March 19,2019 Page 17 of 27 statements that will allow the City's executive team to more effectively respond to and influence legislation in a timely manner. Mr. Garcia reported the platform was meant to be an evolving document that will be amended regularly from year to year or as critical legislation is introduced. Additionally, when an important issue arises that is not addressed within the legislative platform, staff will return to the City Council for direction as necessary. He noted a member of Council can always request to agendize a legislative issue and ask the Council to take a position even though it may not be covered within the parameters of the legislative platform. Lastly, he advised it is a guide that helps ensure local control over legislative issues. DISCUSSION: In response to Council Member Barnes, Mr. Garcia advised this item allows City Council to have a discussion around proposed legislation and to present the City's position to state and federal representatives. He also noted that he is the City's liaison for legislative concerns although some departments do track legislative concerns on their own, such as Public Utilities. City Manager Chris Zapata reported the City has a contract with the League of California Cities and the Association of California Cities - Orange County(ACCOC)to help the City navigate proposed legislation. Mr. Garcia reported that Mayor Sidhu participates in the California Big City Mayors Association which helps advocate for issues that impact California's largest cities. Mayor Pro Tern Kring advised there are also lobbyists who review legislation and its impact on the City. Council Member Moreno recommended that language be included to oppose unfunded mandates. He also suggested there be language added to support workers' rights and labor as part of Anaheim's economic objective. Council Member O'Neil was in support of opposing unfunded mandates but did not support language to support workers' rights as he believed that should be left up to the State. Mayor Pro Tern Kring also felt workers' rights were already being covered by State policy. Council Member Moreno felt that the lack of enforcement at the state level warranted the language being included in order to protect workers' rights. Council Member Brandman stated that this was a platform and that some language for workers' rights was included, however, he did feel it needed to be included in the vote before City Council. Mr. Garcia advised that legislation regarding workers' rights does come up from time to time and including the language into the platform was not outside of the realm of the platform, in response to Council Member Barnes' inquiry. Council Member Moreno advised that he mentioned other states because there are workers' rights issues at the federal level, in response to Mayor Pro Tern Kring's statement. Council Member Faessel felt it may be easier to bifurcate the issue. Council Member Moreno agreed to bifurcate the motion. City Council Minutes of March 19,2019 Page 18 of 27 MOTION: Council Member Moreno moved to adopt the 2019 Legislative Platform that guides the City's support of, or opposition to, state and federal legislation and authorize city staff to contact federal and state representatives to advocate for legislative proposals consistent with the goals outlined within the 2019 Legislative Platform as amended, adding language to Guiding Principle II to oppose unfunded mandates, 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. DISCUSSION: Council Member O'Neill noted that worker protection and workers' rights were subjective terms and he did not feel it was appropriate to add to the language. He also felt it may put the City at risk in the future. MOTION: Council Member Moreno moved to adopt the 2019 Legislative Platform that guides the City's support of, or opposition to, state and federal legislation and authorize city staff to contact federal and state representatives to advocate for legislative proposals consistent with the goals outlined within the 2019 Legislative Platform as amended, adding language to Guiding Principle III to support workers' rights, 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. 22. RESOLUTION NO. 2019-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expressing support of Senate Bill 689 regarding Needle and Syringe R100 Exchange Programs. Direct staff to submit a letter to the state legislature expressing support of Senate Bill 689. Deputy City Manager David Belmer reported that this piece of legislation would protect local control and would require the City or County in which a local needle exchange program was proposed to have local control for such a program to be approved. Currently, the City enacted a moratorium to help ensure local control. He advised that staff was working on an ordinance which will come back to City Council in May or June. Lastly, he advised if City Council approved the resolution and letter of support for SB 689, staff will move forward with sending the letter to the state legislature. DISCUSSION: In response to Council Member Brandman, City Attorney Robert Fabela advised that Anaheim joined with other cities in the County of Orange to seek a preliminary injunction to prevent the OC Needle Exchange Program from operating in Orange County despite the fact it was permitted to do so by the State of California in November 2019. He also advised that the trial for the permanent injunction is set for October 2019. Council Member O'Neil felt that the City would be remiss to continue to support the bill without any local control. He feels it was important for the City to take a strong stance. Council Member Moreno expressed concern that Council Member O'Neil noted in a blog that City Council was on record opposing the State's needle exchange program. He advised that the City Council voted to oppose the specific proposal made to the City by Orange County Needle Exchange Program (OCNEP). He clarified that the City was on record opposing the specific program. He recommended the item be postponed since staff was working on an ordinance which will be presented to City Council in May or June. He also could not support the item City Council Minutes of March 19,2019 Page 19 of 27 because it did not prohibit needle exchange near schools or parks. Lastly, he encouraged the public to research SB 689. Mayor Sidhu expressed concern with exposing the public to discarded needles and felt it should be professionally supervised in a clinical setting with help and support to end addiction. He supported Senate Bill 689. MOTION: Council Member Brandman moved to postpone consideration of Item No. 22 until Senate Bill 689 passed out of the Senate Health Committee, seconded by Council Member Moreno. 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. DISCUSSION: Council Member Faessel believed the needle exchange program requires local control. He believes that cities in general were better positioned to determine if their city will benefit or not from a needle exchange program. He felt that the City should voice that local control is very important to Anaheim and he supported Senate Bill 689. MOTION: Council Member O'Neil moved to approve RESOLUTION NO. 2019-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expressing support of Senate Bill 689 regarding Needle and Syringe Exchange Programs; and direct staff to submit a letter to the state legislature expressing support of Senate Bill 689, seconded by Mayor Sidhu. ROLL CALL VOTE: AYES—5: (Mayor Sidhu and Council Members Kring, Barnes, Faessel, and O'Neil). NOES—2: (Council Members Brandman and Moreno). Motion carried. 23. ORDINANCE NO. 6460 (ADOPTION)AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2018-00317; DEV2017-00124) (reclassify property from "I" (Industrial)to "RM-3.5" (Multi-Family Residential) zone; 39-unit, attached single-family C280 residential project at the easterly terminus of North Street and Wilhelmina Street, approximately 150 feet east of the centerline of Pauline Street) (Introduced at Council M142 meeting of March 5, 2019, Public Hearing Item No. 15). Determine that the proposed Reclassification No. 2018-00317 to reclassify the property was adequately analyzed pursuant to the Mitigated Negative Declaration approved in conjunction with the project on March 5, 2019. DISCUSSION: Council Member Moreno asked to continue the item to listen to the residents' concerns. He also expressed concern that Mayor Sidhu read from a prepared statement at the last City Council meeting when this item was before City Council. Council Member Moreno presented photos of the neighborhood during peak traffic time which showed crowded streets. He asked the City Council to meet with residents and walk the neighborhood to obtain more insights regarding their concerns. Council Member Barnes supported the residents and did not feel this was the best site for the proposed development. She felt that City Council should take the time to visit the neighborhood to understand the concerns. City Council Minutes of March 19,2019 Page 20 of 27 MOTION: Council Member Moreno moved to continue Item No. 06, seconded by Council Member Brandman. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno). NOES —5: (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil). Motion failed. DISCUSSION: Council Member Moreno expressed his disappointment that the motion did not pass and reiterated that residents simply asked City Council for a continuance in order to meet and express their concerns. Council Member Moreno stands behind the motto of residents first and was asking the City Council to give the residents dignity and respect. Council Member Barnes questioned Mayor Sidhu's support of"residents first" and felt that Mayor Sidhu was not leading in the right direction. Mayor Sidhu reported that the item has been properly vetted through the Planning Commission and City Council and expressed his support. Council Member O'Neil agreed that the item had gone through the proper channels and he supported the item. Mayor Pro Tern Kring believed that the right time to meet with the residents was after the Planning Commission. She felt it was a good project with a good developer and she supported the item. Council Member Moreno stated that he asked the developer to provide affordability, open space, and a community meeting with the residents before he would support the development and he did not hear back from the developer, in response to Mayor Pro Tem Kring's inquiry. MOTION: Mayor Sidhu moved to adopt ORDINANCE NO. 6460 AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2018-00317; DEV2017-00124); and determine that the proposed Reclassification No. 2018-00317,to reclassify the property was adequately analyzed pursuant to the Mitigated Negative Declaration approved in conjunction with the project on March 5, 2019, seconded by Council Member O'Neil. ROLL CALL VOTE: AYES—5: (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil). NOES—2: (Council Members Barnes and Moreno). Motion carried; ordinance adopted. 24. Receive an update on negotiations with Angels Baseball regarding Angel Stadium of Anaheim and the Stadium Site. D124 City Manager Chris Zapata reported that in March, City Council approved a contract for the appraisal of the site and addressed the timing of negotiations. He reported that Mayor Sidhu met with Angels Baseball for an update on the hiring of their consultant. During that meeting, Angels Baseball informed the City that they have retained the services of a development consultant, Brooks Street and Richard Nolan, to assist the team in exploring development opportunities on the stadium site in Anaheim. This is important since analyzing and planning for a variety of development scenarios of the existing stadium site will be an important part of the negotiation process moving forward. Mr. Zapata expected a proposal from the Angels in two to four months. City Council Minutes of March 19,2019 Page 21 of 27 DISCUSSION: Council Member Moreno thanked Mr. Zapata for framing the issue and questioned when Council could expect the appraisal of the stadium, to which Convention, Sports, & Entertainment Executive Director Torn Morton advised the City can expect the appraisal back in 90-120 days. Council Member Moreno asked staff and City Council to continue to work with Angels Baseball in light of the news that Long Beach has reached out to them but to not panic. Council Member O'Neil thanked staff for their updates, felt they were important for transparency when there was new information, but felt that the right time to provide those updates was during the City Manager's report. He referenced the similar recent process with the Anaheim Ducks and looked forward to making a deal with the Angels. He requested the update be removed as a standing item. Mayor Pro Tern Kring agreed that it should be in the City Manager's report when there was an update. MOTION: Council Member O'Neil moved to direct the City Manager to provide updates as needed in his report or as an agenda item, seconded by Mayor Pro Tern Kring. DISCUSSION: Council Member Moreno saw value in a monthly update even if the update was there was nothing to report to allow residents to trust that Council was being apprised of information. He expressed concern about not having transparency for the public and wanted to alleviate panic that may occur when information was not shared. Council Member Brandman expected that good faith negotiations were happening with Angels Baseball, but he was stunned to hear about Long Beach. He supported having the item remain on the agenda monthly to ensure accountability. Council Member O'Neil addressed how the standing agenda item was placed on the agenda but no formal vote was taken. He believed the City was embarking on a sensitive negotiation, stood behind his motion, and did not feel it should be negotiated in public. Council Member Barnes requested transparency and supported the City Manager providing updates. Council Member Faessel provided perspective from District 5. He trusted that the City Manager had assembled the appropriate team and supported the City Manager providing updates, as needed, at his discretion. MOTION: Council Member O'Neil moved to direct the City Manager to provide updates as needed in his report or as an agenda item, seconded by Mayor Pro Tern Kring. ROLL CALL VOTE: AYES—5: (Mayor Sidhu and Council Members Kring, Barnes, Faessel, and O'Neil). NOES—2: (Council Members Brandman and Moreno). Motion carried. City Council Minutes of March 19,2019 Page 22 of 27 25. Receive an overview of rental affordability in the City of Anaheim and rent stabilization tools in use in other jurisdictions and provide direction to staff should the Council desire D155 additional action. City Manager Chris Zapata advised that with Deputy City Manager David Belmer's appointment to Deputy City Manager there has been some restructuring with all development related departments now reporting to him. Deputy City Manager David Belmer reported that this item was an overview of an analysis of rents, particularly rent escalation, in Anaheim and information on rent stabilizing tools used in other jurisdictions for review and discussion by the Council. He provided a brief overview of State Law as it related to tenants and landlords. He advised that currently the cost of a rental unit was based on market demand and not by State Law. However, there were laws governing how rent increases must be noticed. California State law guarantees a 30-day advance written notice for rent pricing and rent regulation increases of 10% or less for month to month tenancies and a 60-day notice for rent increases greater than 10%. Mr. Belmer advised that for the purpose of the report, staff endeavored to locate reliable, objective data that would provide a general sense of current rental rates and recent trends. However, there is no single universally accepted source. There are multiple sources available through public means that confirm that rents have been escalating. He reported that rents have increased faster than income which was not helping housing affordability and was not an exclusive issue to Anaheim. Mr. Belmer explained it was important to note that the market trends cover a period of significant economic growth in California and throughout the nation and the rental market was likely a reflection of the strong economy. Mr. Belmer reported on rent stabilization measures and advised that 482 cities in California employ rent control measures. The basic premise of rent control laws was to restrict how much landlords were legally allowed to raise the rent each year. In California, the Costa Hawkins Rental Housing Act sets requirements on how rent control measures can be applied. Mr. Belmer reported on tenant rights and advised that some cities have enacted "Just Cause" eviction ordinances, limiting when landlords can force tenants to leave and leave control to the local level. He advised that, to the best of staff's knowledge, no city in Orange County has a Just Cause eviction law in place. He reported that some cities have taken temporary moratoriums on rental increases while the jurisdiction is studying options it may consider adopting on a more permanent basis. Mr. Belmer reported on source of income protections and noted that residents who use the Housing Choice Voucher(HCV) program are protected from significant rent increases. He also noted that under California state law, Section 8 Housing Choice Vouchers are not considered tenant income,and therefore a housing provider is not required to accept a voucher. Lastly, housing providers are also not required to treat other rental assistance programs as income. Mr. Belmer reported on the Affordable Housing Strategy in Anaheim and felt that Anaheim has a thriving Affordable Housing Program. However, efforts have been hampered by the loss of Redevelopment funding and staff would like to see that funding return to do more in the area of Affordable Housing. City Council Minutes of March 19,2019 Page 23 of 27 Mr. Belmer reported staff was contacted by, and contacted, several stakeholders to share general thoughts on the issue. The conversations were helpful and underscored the divergence of views on the subject of rent control as well as the need for, and benefits of, tenant protection actions such as ordinances or policies seeking to establish "just cause evictions." Mr. Belmer advised if City Council would like to take action it would require policy level discussions. DISCUSSION: Council Member Moreno noted that this was a critical issue for Anaheim and referenced the Regional Housing Need Allocation (RHNA)for Anaheim. Council Member Moreno cited the recent lawsuit against the City of Huntington Beach for allegedly refusing to meet the state mandate to provide new housing for low-income people. Mr. Belmer clarified that the lawsuit was a large measure that they were not taking proper action to zone properties to meet their RHNA obligations. Council Member Moreno presented RHNA numbers and felt the City has a critical need to focus on building housing for low and very-low income residents. Mr. Belmer noted that the State trend was to hold cities accountable for their RHNA numbers. Council Member Moreno expressed concern that Anaheim was not doing enough to meet the housing needs. Mr. Belmer advised that the City does not have an ordinance to protect residents from rent increases/gouging, in response to Council Member Moreno's inquiry. Community and Economic Development Deputy Director Grace Stepter advised the City does fund the Fair Housing Foundation through Community Development Block Grant(CDBG) and they are asked to intercede on behalf of the tenants, however, the measures are voluntary. Mr. Belmer advised that the City does not have an ordinance to protect residents from the negative impacts of gentrification, in response to Council Member Moreno's inquiry. He also noted the City does not have cause and effect data to give any statistics. Council Member Moreno reported that he has reports of residents having their rents increased and there was nothing the City could do except ensure that residents were noticed properly. Ms. Stepter advised the City does not have any methods.to monitor through data the changing of year-long leases to month-to-month leases, in response to Council Member Moreno's inquiry. She did advise that Section 8 programs require a year-long lease. Council Member Moreno believed that rent stabilization helps residents get on their feet and has positive outcomes. Council Member O'Neil cited the CoStar Report noting Anaheim rents were near the bottom for the metro area and one of Orange County's most affordable areas, further noting that rents were worse in other areas and this issue was not exclusive to Anaheim. He noted that Anaheim has an affordable housing policy that works. He felt the City needed to look at ways to improve the existing supply of aging housing stock. Additionally, he felt the City needed to look at workforce development to help with attainable housing. MOTION: Council Member O'Neil moved to create a working group of Mayor Pro Tern Kring and Council Members Faessel and O'Neil to develop a comprehensive plan to increase housing affordability at all levels and bring recommendations back to Council at a later date, seconded by Mayor Pro Tern Kring. DISCUSSION: Ms. Stepter advised that the Sandman Motel will be turned into affordable housing for seniors with a completion date to come online in approximately 18 months, in City Council Minutes of March 19,2019 Page 24 of 27 response to Mayor Pro Tern Kring's inquiry. She also noted that those 54 units were not included in the RHNA numbers as the permits have not yet been pulled. Mayor Pro Tern Kring reported she went to Sacramento and noted that over 200 bills were coming through legislation that are directly tied to affordable housing. She noted that Accessible Dwelling Units (ADU)were going to be on the forefront. Mr. Belmer agreed that current affordable housing and rental policies in Anaheim were market- based, in response to Council Member Moreno's inquiry. He noted that the market has taken care of the people who can afford housing, but it does not help low to very-low income residents. He noted that the Anaheim Neighborhood Association had a community meeting last summer specifically about ADUs and they were shocked that parking would not be required. Mr. Belmer advised that the City retained local control where parking was concerned. Council Member Moreno presented data that showed that 40% of residents that are homeless in Anaheim were due to lost jobs or insufficient wages and 36% were due to high rent, eviction, or foreclosure. He also presented data that showed a minimum wage earner must work 104 hours to afford a one-bedroom apartment in Anaheim. Ms. Stepter advised that 16,000 households are on the waiting list for the Housing Voucher Program, in response to Council Member Moreno's inquiry. Ms. Stepter advised that the State of California employs "no-fault" rental laws where landlords can end a renter's tenancy for any reason, or no reason at all, by issuing a move-out notice 30 to 60 days in advance, depending upon how long the renter has lived in the unit, in response to Council Member Moreno's inquiry. He also noted the City of Glendale has a new rent stabilization ordinance that should be reviewed by City Council. Council Member Barnes reported that she will be presenting to the Orange County Senior Citizen Advisory Council and hoped that City Council can collaborate to bring all resources together. She also noted that the City does not have the funding to put seniors who are facing rent increases into shelters and she hoped the City can help find them a solution to stay in their homes. Council Member O'Neil suggested there was more the City could do in terms of housing supply which was why he suggested the Task Force. He noted that there are opportunities to look at new ways to solve the housing issue. Council Member Brandman agreed with setting up a Task Force and all options should be explored. He felt that Council Member Moreno should participate to discuss solutions and he asked Council Member O'Neil to revise his group. Council Member O'Neil respectfully declined and noted he wished to keep the proposed group with its original makeup. SUBSIDIARY MOTION: Council Member O'Neil moved to call the question, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES—5: (Mayor Sidhu and Council Members Kring, Barnes, Faessel, and O'Neil). NOES—2: (Council Members Brandman and Moreno). Motion carried. City Council Minutes of March 19,2019 Page 25 of 27 DISCUSSION: City Attorney Fabela advised that the working group proposed would not be subject to the Brown Act since it has limited scope, will terminate once the task was completed, and was less than a quorum, in response to Council Member Moreno's inquiry. MOTION: Council Member O'Neil moved to create a working group of Mayor Pro Tern Kring and Council Members Faessel and O'Neil to develop a comprehensive plan to increase housing affordability at all levels and bring recommendations back to Council at a later date, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES —5: (Mayor Sidhu and Council Members Kring, Barnes, Faessel, and O'Neil). NOES—2: (Council Members Brandman and Moreno). Motion carried. 26. Consider(re)appointments to city Boards and Commissions to serve terms through December 31, 2022 (continued from the Council meeting of March 5, 2019, Item No. 14). B105 Community Services Board: Mayoral appointment: Gloria Ma'ae (December 31, 2022). Mayor Sidhu nominated Gloria Ma'ae. ROLL CALL VOTE: AYES- 7 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES—0. Nomination approved. Cultural and Heritage Commission: Mayoral appointment: Sunman Marwah (December 31, 2022). Mayor Sidhu nominated Sunman Marwah. ROLL CALL VOTE: AYES- 7 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES —0. Nomination approved. Parks and Recreation Commission: Mayoral appointment: Yooesh Shah (December 31, 2022). Mayor Sidhu nominated Yogesh Shah. ROLL CALL VOTE: AYES- 7 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES— 0. Nomination approved. REPORT ON CLOSED SESSION: City Attorney Robert Fabela announced, regarding Closed Session Item No. 1, Council unanimously supported a cross-claim by the City against the co-defendants. City Council Minutes of March 19,2019 Page 26 of 27 PUBLIC COMMENTS (non-agenda items): Mary Joe Baretich, Golden State Manufacturer's Homeowner's League, expressed concerns over the rent increases at the Rancho La Paz Mobile Home Park and encouraged City Council to investigate and explore housing affordability and rent stabilization in the City of Anaheim. Jennifer Rodriguez, Director of Program Enrichment at GOALS, spoke to City Council to raise awareness for Accelerate Change Together(ACT)Anaheim and encouraged City Council to support their program. Bryan Kaye spoke to City Council regarding a claim he filed with the City of Anaheim. He noted that he received a response from Risk Management denying his claim. COUNCIL COMMUNICATION: Council Member Barnes reported she attended the National League of Cities conference in Washington, D.C., March 8-12. She also announced her attendance at the Veterans of Foreign Wars (VFW) awards night and the Boys and Girls Club fundraiser. She displayed a photo and addressed homelessness, the Union Pacific Railroad property, and city efforts, further requesting reimbursement for city expenditures and a report back. Mayor Pro Tern Kring reported the city paid for her trip to Sacramento. She announced her attendance at the Boys and Girls Club gala and the ground-breaking for Roosevelt Elementary School. She requested the meeting be adjourned in memory of the 50 Muslims killed in New Zealand. Council Member Faessel reported his participation and attendance in Reading Across America at Jefferson Elementary School, the North Anaheim Little League opening day, the annual volunteer recognition luncheon, St. Jude Medical Center dinner and noted their upcoming care facility adjacent to Ponderosa Park, and an appreciation lunch for city employees and their work with homelessness. He provided historical information about the incorporation of the city on March 18, 1876, announced the 130th anniversary of St. Catherine's Academy, and requested the meeting be adjourned in memory of former Public Utilities employee Cy Temple and Lions Club member Rod Wallace. Council Member Brandman reported the city paid for his travel, lodging, and meals while attending the Equality in California legislative summit on March 14-15. Council Member Moreno announced the construction project at Dale Junior High School and their career day on March 8 and his attendance at the North Anaheim Little League opening day, a District 3 neighborhood meeting with staff presentations, a vigil at the Islamic Institute of Orange County for the events in New Zealand, and a Dr. Seuss Day.at Lincoln Elementary. He announced a community meeting at Rancho La Paz Mobile Home Park on March 20 at 6:00 P.M. He requested a future agenda item to consider an ordinance requiring just cause evictions, concurred by Council Members Barnes and Brandman, and an agenda item to develop an immediate, temporary rental-spike relief ordinance or policy, concurred by Council Members Barnes and Brandman. City Council Minutes of March 19, 2019 Page 27 of 27 Mayor Sidhu acknowledged the two events recognizing citywide volunteers and city staff for their efforts regarding homelessness. He announced he was travelling to Sacramento on March 20th to participate in the Big City Mayors lobby day. ADJOURNMENT: At 11:42 P.M., with no objection, Mayor Sidhu adjourned the March 19, 2019 meeting in memory of Rod Wallace, Cy Temple, and the victims of the New Zealand mosque shootings. Respectfully submitted, '41111111116 Theresa B. ss, CMC City Clerk