07/30/2019 ANAHEIM CITY COUNCIL
REGULAR MEETING OF JULY 30, 2019
The regular meeting of July 30, 2019 was called to order at 3:05 P.M. in the chambers of
Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and
related materials were duly posted on July 25, 2019.
PRESENT: Mayor Sidhu and Council Members Kring, Barnes, Brandman, and
Faessel.
STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk
Theresa Bass.
ADDITIONS\DELETIONS TO CLOSED SESSION: City Attorney Robert Fabela announced Item
No. 3 pertained to potential involvement in litigation against opioid manufacturers and Item No. 4
was pulled from consideration to be rescheduled at a later date.
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
CLOSED SESSION: At 3:06 P.M., Mayor Sidhu recessed to closed session for consideration of
the following items (Council Members Moreno and O'Neil joined during closed session).
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Subdivision (b) (1) of Section 54957 of the California Government Code)
Position: City Manager
2. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code)
Agency Designated Representative: Linda Andal, Human Resources Director
Position: City Manager
3. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California
Government Code Section 54956.9: One potential case
4. 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
Item No. 4 removed from agenda; not considered during closed session.
5. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code)
Agency Designated Representatives: Linda Andal, Human Resources Director and
Angel Ho, Employee Relations Manager
Name of Employee Organization: Anaheim Municipal Employees Association
At 5:12 P.M., Mayor Sidhu reconvened the regular meeting of the Anaheim City Council.
INVOCATION: Pastor Ethan Hedberg, Ambassador Sunkist
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FLAG SALUTE: Council Member Jordan Brandman
PRESENTATIONS: Recognizing the Anaheim Community Economic Development Team for
receiving "Community Excellence City Award" from the U.S. Small
Business Administration
Mayor Sidhu provided a brief history of the Anaheim Community Economic Development Team
and congratulated them on their recent award from the U.S. Small Business Administration.
Jessica Gonzales introduced the members of the City of Anaheim Economic Development Team
and accepted the proclamation, on behalf of the Anaheim Economic Development Team.
Update from the Orange County Human Relations
Karen Stoyanoff, Board Member, Orange County Human Relations (OCHR) thanked City
Council for their support. She provided a brief history of the organization and noted that
mediating hate crimes is their most recognizable work. She also noted that OCHR runs
educational programs at the local schools. She presented City Council with a certificate of
appreciation to Anaheim City Council.
At 5:36 P.M., Mayor Sidhu called to order the Anaheim Housing Authority (in joint session with
the City Council).
ADDITIONS/DELETIONS TO THE AGENDAS: City Clerk Theresa Bass announced Public
Hearing No. 29 was withdrawn by request of the appellant.
PUBLIC COMMENTS (all agenda items, except public hearings): 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.
Karina Tarsadia invited City Council to support Karin's Backpack Project which will take place on
August 4, 2019, at Angels Stadium. She advised the project will provide 5,000 elementary and
middle school students in need with backpacks, school supplies, free haircuts, and groceries for
families. She thanked all the community partners and the City Council for their support.
Mayor Sidhu thanked Ms. Tarsadia for her service.
Cecil Jordan Corkern, Outreach Homeless Ministries, expressed his concern regarding tensions
in the Middle East.
Paul Hyek expressed his support for Item No. 02 and expressed his concern regarding Section 8
vouchers because the homeless do not have a permanent address.
R. Joshua Collins, Homeless Advocates for Christ, expressed his support for Item No. 24 and
urged City Council to pass the item and develop more Permanent Supportive Housing.
Mark Richard Daniels expressed his support for Item Nos. 01, 02, 03, and 24 and encouraged
City Council to support the items. With regard to the Econo Lodge Motel project, he felt it was a
great start and that there are other potential properties within the City that can be converted to
affordable housing.
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Dr. Cynthia Smith, Program Director, Creative Identity, expressed support of the Community •
Service Board recommendation regarding CDBG grant funding.
Jodie Mosley expressed her support for Item No. 02, looked forward to changes, and hoped they
happen soon.
Kandee Beas, Chair, Community Services Board, addressed Item No. 13 and shared she was
available to answer any questions from the City Council.
Lisa Klawe expressed her support for converting the Econo Lodge Motel into Permanent
Supportive Housing and looked forward to seeing the 39 Commons project moving forward.
Jeanine Robbins expressed her support for the Permanent Support Housing project and felt it
was much needed due to the absence of rent control in the City. She shared she attended a
meeting in District 6 and mobile home residents were very concerned.
David Klawe expressed support for the Econo Lodge and 39 Commons Projects and would like
to see the projects move forward with no delays.
Mike Schaub, Social Model Recovery, promoted their programs, specifically highlighting Drug-
Free Anaheim and Touchstones, and discussed the upcoming California Community Opioid
Conference which will take place on November 21, 2019, at the Anaheim Convention Center.
Colin Womer, Drug-Free Anaheim, advised the program has helped 496 residents enter
rehabilitation services and encouraged City Council and residents to attend the California
Community Opioid Conference in November.
John Tafoya, Southwest Regional Council of Carpenters, thanked Anaheim for providing the
opportunity for their workers to work on a variety of projects in Anaheim.
Edwin Hangen, Southwest Regional Council of Carpenters, encouraged City Council to tour the
training facility and thanked them for their continued support.
Cheryl Moi, resident Rancho La Paz Mobile Home Park, advised that Fullerton will be assisting
the Fullerton residents and will be looking to Anaheim City Council for similar assistance.
Mike Robbins expressed concerns regarding rent increases at Rancho La Paz Mobile Home
Park.
Lou Noble expressed concern regarding fines homeless are receiving while awaiting entrance to
shelters and the overall criminalization of the homeless.
Kenneth Batiste expressed his concerns for Anaheim senior citizens and felt there is corruption
within the Anaheim City Council.
David Duran expressed his concerns regarding corruption and unethical practices within the
Anaheim City Council.
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CITY MANAGER'S UPDATE: City Manager Chris Zapata reported the Fire & Rescue
Department would provide an update on fire season and preparedness at the August 13, 2019
Council meeting. Additionally, he reported a draft appraisal of the Angel Stadium property had
been received, staff was analyzing the draft appraisal, and the appraisal would be part of the
closed session agenda on August 13, 2019.
Prior to addressing the agenda, Mayor Sidhu clarified his role as chair of the meeting, the
informal practice of limiting discussion on each item to two rounds of five minutes each, and
requested colleagues wait until the second round of discussion to request more time if needed
for specific items.
Council Member Moreno requested a point of clarification regarding the adopted procedures and
rules regarding limiting or extending limits of debate.
City Attorney Robert Fabela addressed the written procedures and rules, as well as inherent
powers granted to the chair of the meeting, and interpreted the referenced motion to limit or
extend limits of debate as specific to agenda item discussions; with further follow-up in memo
form.
At 6:13 P.M., Mayor Sidhu recessed the Anaheim City Council to address the Housing Authority
agenda; at 6:36 P.M., Mayor Sidhu adjourned the Anaheim Housing Authority and reconvened
the City Council.
CONSENT CALENDAR: At 6:36 P.M., the Consent Calendar was considered with Council
Member Barnes removing Item Nos. 04, 06, 16, 17, and 18 for separate discussion; Council
Member Moreno removing Item Nos. 13 and 19; and Council Member O'Neil removing Item No.
15.
MOTION: Mayor Pro Tem Kring moved to waive reading in full of all ordinances and resolutions
and to adopt the balance of the consent calendar as presented, in accordance with reports,
certifications, and recommendations furnished each city council member and as listed on the
consent calendar, seconded by 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 June 2019.
D180 7. Waive the sealed bid requirement of Council Policy 4.0, and ratify an increase from
$20,000 to $34,500 including sales tax, to the current master agreement with Wayne
Boyer dba Motoport USA for the purchase of personal protective garments for the
Anaheim Police Department Traffic Unit; and authorize the Purchasing Agent to issue an
annual master agreement for these items in accordance with approved budget
appropriations.
D180 8. Accept the bid from Hunter Consulting, Inc. dba HCI Environmental & Engineering, in the
amount of$65,117 plus applicable tax, for firing range maintenance, cleaning, and
hazardous waste disposal 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
#9315; and ratify an increase from the not to exceed amount of$36,355 to $44,355
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including sales tax, to the current 2018-19 master agreement with Hunter Consulting, Inc.
dba HCI Environmental & Engineering.
D180 9. Accept the bid from Mr. Window Cleaning, in the amount of$84,400 plus a 20%
contingency, for window washing services at the Anaheim Convention Center 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 #9279.
10. Accept the bid from United Rotary Brush Corporation, in the amount of$84,403.90 plus
D180 applicable tax and a 20% contingency, for the purchase of replacement street sweeper
brooms 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 #9317.
11. Accept the bid from Unifirst Corporation, in the amount of $28,005.80 plus applicable tax
D180 and a 25% contingency, to provide weekly uniform rental services for the Operations,
Fleet & Facility Services Division of the Public Works Department for a one year period
with four one-year optional renewals, and authorize the Purchasing Agent to execute the
renewal options in accordance with Bid #9313.
D180 12. Authorize the Purchasing Agent to issue purchase orders, in the total amount not to
exceed $6,559,350 plus applicable taxes, for 69 city vehicles for Fiscal Year 2019/20,
which includes a 5% contingency for unexpected costs associated with these vehicle
purchases, and for the replacement of vehicles, if necessary, that are severely damaged
in accidents.
14. Approve a Professional Services Agreement, in substantial form, with Western Economic
AGR-11643 Services, LLC, in the amount of$64,885, to prepare the Fiscal Year 2020-2024
Consolidated Plan identifying housing and community development needs and authorize
the Director of the Community and Economic Development Department, or designee, to
execute and administer the agreement.
20. Approve Change Order 15 to the Service Agreement with Accela, Inc., in the amount of
AGR- $196,000, for the service and implementation of a Permit Tracking and Land
10252.0.16 Management Software System; approve the Second Amendment to the Agreement with
AGR- CGI Technologies and Solutions, Inc., increasing the contract amount by $209,440 to
11116.2 total amount not to exceed $602,797, for additional services including third-party
AGR- integrations, additional data conversion support, as well as assistance with the remaining
11004.1 system configurations and development tasks, and to continue to provide knowledge
transfer to support staff; and approve the First Amendment to the Agreement with System
Innovators, increasing the contract amount by $7,200 to total amount not to exceed
$83,340, for the design, configuration, testing, and implementation of a Web Service for
the iNovah cashiering system.
21. RESOLUTION NO. 2019-088 A RESOLUTION OF THE CITY COUNCIL OF THE
T105 CITY OF ANAHEIM levying special taxes within City of Anaheim Community Facilities
District No. 06-2 (Stadium Lofts Fiscal Year 2019-20 Special Tax Levy).
RESOLUTION NO. 2019-089 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM levying special taxes within City of Anaheim Community Facilities
District No. 08-1 (Platinum Triangle Fiscal Year 2019-20 Special Tax Levy).
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P110 22. RESOLUTION NO. 2019-090 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM vacating public utility easements located at 1411 and 1441
Manchester Avenue pursuant to California Streets and Highways Code Section 8330, et
seq. - Summary Vacation (ABA2018-00379; APNs 082-170-57 and 58).
23. RESOLUTION NO. 2019-091 A RESOLUTION OF THE CITY COUNCIL OF THE
AGR- CITY OF ANAHEIM approving the delayed exchange of certain real property with the
11640 Anaheim Housing Authority; authorizing the Director of Community and Economic
Development to execute and administer any necessary documents to implement the
exchange; and making certain other findings in connection therewith (1213 and 1227
South Claudina Street; related to Housing Item No. 1).
Item No. 23: Community& Economic Development Director John Woodhead, in an abundance
of caution and in accordance with Government Code §1091.5(a)(7), disclosed that while elected
by the ATN membership in his capacity as president of the Downtown Anaheim Association as a
non-salaried member of the ATN Board in November 2018, he never attended any meetings nor
served in any capacity on the board, and was likely removed in accordance with the ATN by-
laws.
AGR- 24. RESOLUTION NO. 2019-092 A RESOLUTION OF THE CITY COUNCIL OF THE
11641 CITY OF ANAHEIM approving: I.) a Cooperation Agreement with the Anaheim Housing
Authority substantially in the form submitted herewith, authorizing the transfer of HOME
funds in connection therewith; II.) granting consent to the Orange County Housing
Authority to administer twenty Veterans Affairs Supportive Housing Vouchers in the City
of Anaheim; Ill.) and authorizing the Director of Community and Economic Development,
or his designee, to execute, administer and implement the agreements on behalf of the
City (rehabilitation and conversion of the Econo Lodge Motel located at 2691 W. La
Palma Avenue to a Permanent Supportive Housing apartment community; related to
Housing Item No. 2).
D114 25. Approve minutes of the Council meeting of November 13, 2018.
END OF CONSENT CALENDAR:
8105 4. Receive and file minutes of the Library Board meeting of May 13, 2019.
DISCUSSION: Referencing the Library Board minutes, Council Member Barnes inquired about
comments made by Chairman David Laviguer at the meeting. In response, City Manager Chris
Zapata advised he would investigate if the Haskett Branch Library bathrooms needed renovation
and if people were camping in front of the Carnegie Library at night.
MOTION: Council Member Barnes moved to receive and file minutes of the Library Board
meeting of May 13, 2019, 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.
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D182 6. Approve the proposed Five-Year Underground Conversion Plan for Fiscal Year 2019-20.
DISCUSSION: Council Member Barnes thanked staff who were working diligently on the project.
MOTION: Council Member Barnes moved to approve the proposed Five-Year Underground
Conversion Plan for Fiscal Year 2019-20, 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.
13. Approve the FY 2019-2020 Annual Action Plan, in the total fund amount of$ 12,845,529,
AGR- for federal Community Development Block Grant (CDBG), HOME Investment
8177.F Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for
D155 Persons With AIDS (HOPWA); and designate the Director of the Community & Economic
Development Department as the Certifying Official authorized to execute all documents
related to the administration, management, and implementation of the CDBG, HOME,
ESG, and HOPWA programs.
DISCUSSION: Council Member Moreno acknowledged the Community Services Board and
Chairperson Kandee Beas for all of their hard work on this item. Upon the request of Council
Member Moreno, Community & Economic Development Director John Woodhead advised the
City, through Federal funding, is providing $1.75 million in Tenant Rental Assistance for non-
Section 8 residents who are struggling with rent in Anaheim who are identified through referrals.
In response to Council Member Moreno's inquiry, Community and Economic Development
Deputy Director Grace Stepter advised the funding has been fairly consistent over the last few
years. She further advised the funding covers two (2) programs including the Chronically
Homeless Individuals Pilot Program (CHIPP) and the McKinney-Vento Homeless Education
Assistance Act through the schools. She advised the additional funding is directed towards
Housing Opportunity for Persons with AIDS (HOPWA) and the referrals come through the
HOPWA eligible community. For other individuals seeking assistance, such as residents in
Rancho La Paz, their avenue would be to contact any of the project based Section 8 programs.
Council Member Moreno clarified that this Tenant Rental Assistance is specific for homeless
individuals that are on their pathway back to stable housing.
MOTION: Council Member Moreno moved to approve the FY 2019-2020 Annual Action Plan, in
the total fund amount of$ 12,845,529, for federal Community Development Block Grant (CDBG),
HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing
Opportunities for Persons With AIDS (HOPWA); and designate the Director of the Community &
Economic Development Department as the Certifying Official authorized to execute all
documents related to the administration, management, and implementation of the CDBG,
HOME, ESG, and HOPWA programs, 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.
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A123 15. Approve a Professional Services Agreement with Lawyers' Committee for Civil Rights
Under Law, in an amount not to exceed $150,000 for the initial term, to prepare the Fiscal
Year 2020-2024 Regional Analysis of Impediments to Fair Housing Choice, whereby the
city acts as the lead for the regional assessment, with two one-year optional renewals;
approve a Memorandum of Understanding and Payment Agreement, in substantial form,
with HUD entitlement jurisdictions within Orange County to participate and contribute to
their respective cost share of the regional study; and authorize the Community and
Economic Development Director, or designee, to execute and administer the agreements.
Community and Economic Development Deputy Director Grace Stepter advised that this item is
to approve a Professional Services Agreement with Lawyer's Committee for Civil Rights Under
Law, in the amount of$150,000, which is related to grant funds received from CDBG, HOME,
ESG, and HOPWA. The City is required to do a regional analysis of impediments, which
measure how the City is doing as it relates to fair housing practices. She advised the analysis is
completed every five (5) years with local cities rotating as the lead entity, with the City of
Anaheim taking the lead this year, to secure a contract with a qualified consultant and facilitate
payment for work completed. Several cities participated in the selection process and RFP with
specific parameters, resulting in the committee selecting this consultant as best qualified. She
also advised the deliverable is a regional analysis, as well as analysis at each specific city. The
report provides a list of the participating cities sharing in the cost who have committed to provide
their identified share.
DICUSSION: In response to Council Member O'Neil's inquiry, Ms. Stepter advised the analysis is
due on August 2020 or every five (5) years. She advised it takes about 10 -12 months for the
report to be prepared due to it being a regional analysis that involves testing, contacting and
reviewing the service calls of the two larger fair housing providers, and reviewing each individual
cities' policies.
Council Member O'Neil inquired on how Anaheim was selected as the lead agency and who
completed the analysis in 2015. Ms. Stepter shared Anaheim offered to take the lead role and
the selected firm did not complete the analysis in 2015. She stated the firm was selected after
review process by staff from each of the cities. Council Member O'Neil shared his research on
the consultant and stated that Lawyer's Committee for Civil Rights Under Law completed an
analysis report on fair housing for the City of Los Angeles in 2017, which recommended the
adoption of linkage fees and inclusionary zoning. He further stated that the consultant has
espoused other policies, which include unionization of private sector workforce, promoting living
wages, and paid family leave paid by employers. They have also filed a lawsuit challenging
federal immigration policies. Council Member O'Neil stated that the organization appears to be a
political advocacy group with a predisposed agenda
Council Member O'Neil requested the item be postponed to allow the other agencies to weigh in
on the selection of the consultant and requested additional outreach in order to increase the pool
of consultants, as this RFP only had two.
MOTION: Council Member O'Neil moved to postpone indefinitely, seconded by Mayor Pro Tern
Kring.
DISCUSSION: In response to Mayor Sidhu, Community and Economic Development Director
John Woodhead stated approval of the item can be postponed and wait to see if other cities will
support the item.
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Council Member Moreno inquired if the City is required by law to accept the lowest, most
responsible bid. In response, Ms. Stepter advised that the selection was not only based on
numbers, but was also based on experience and reference checks. She also advised that the
selection committee, comprised of multiple cities, evaluated each proposal, contacted the
references, and made the recommendation.
Council Member Moreno expressed concern the proposed postponement is only due to
ideological differences with a responsible bidder that staff has vetted. He advised he would not
support the motion to postpone.
In response to Council Member Brandman's inquiry, Mr. Woodhead advised that he was not
apprised of any potential questions of qualifications or background regarding the recommended
firm. Council Member Brandman stated he felt staff has done its due diligence and was
prepared to vote on the item with staff's recommendation.
MOTION: Council Member O'Neil moved to postpone indefinitely, 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.
Item postponed indefinitely.
AGR- 16. Approve Professional Services Agreements with three consultant companies, each in an
11644 amount not to exceed $250,000 per work order package with a total not to exceed
AGR- contract amount of$1,000,000 per contract year per consultant, for as-needed real
11645 property appraisal services to support the Design Engineering Services section of the
AGR- Department of Public Works for a three year term with two one-year optional renewals;
11646 authorize the Public Works Director to execute, administer and take the necessary
actions to implement the agreements; and authorize minimal changes to the agreements
that do not substantially change the terms and conditions of the agreements, so long as
such changes are determined to be minimal by the City Attorney's Office (Epic Land
Solution, Inc., Hennessey & Hennessey, LLC, and Kiley Company/Elizabeth M. Kiley,
Inc.).
DISCUSSION: In response to Council Member Barnes' inquiry as it related to Item 16 and 17,
Public Works Director Rudy Emami advised there were two (2) separate RFPs that were
submitted, and the same firm was selected due to their qualifications and was awarded both
contracts.
MOTION: Council Member Barnes moved to approve Professional Services Agreements with
three consultant companies, each in an amount not to exceed $250,000 per work order package
with a total not to exceed contract amount of$1,000,000 per contract year per consultant, for as-
needed real property appraisal services to support the Design Engineering Services section of
the Department of Public Works for a three year term with two one-year optional renewals;
authorize the Public Works Director to execute, administer and take the necessary actions to
implement the agreements; and authorize minimal changes to the agreements that do not
substantially change the terms and conditions of the agreements, so long as such changes are
determined to be minimal by the City Attorney's Office (Epic Land Solution, Inc., Hennessey &
Hennessey, LLC, and Kiley Company/Elizabeth M. Kiley, Inc.), seconded by Council Member
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Faessel. ROLL CALL VOTE: AYES —7 (Mayor Sidhu and Council Members Kring, Barnes,
Brandman, Moreno, Faessel, and O'Neil); NOES — 0. Motion carried.
AGR- 17. Approve Professional Services Agreements with five consultant companies, each in an
11647 amount not to exceed $250,000 per work order package with a total not to exceed
AGR- contract amount of$1,000,000 per contract year per consultant, for as-needed right of
11648 way relocation services to support the Design Engineering Services section of the
AGR- Department of Public Works for a three year term with two one-year optional renewals;
11649 authorize the Public Works Director to execute, administer and take the necessary
AGR- actions to implement the agreements; and authorize minimal changes to the agreements
11650 that do not substantially change the terms and conditions of the agreements, so long as
such changes are determined to be minimal by the City Attorney's Office (Associated
AGR- Right of Way Services, Inc.; Epic Land Solution, Inc.; Overland, Pacific & Cutler, LLC;
11651 Paragon Partners Ltd.; and Property Specialists, Inc. dba CPSI).
MOTION: Council Member Barnes moved to approve Professional Services Agreements with
five consultant companies, each in an amount not to exceed $250,000 per work order package
with a total not to exceed contract amount of$1,000,000 per contract year per consultant, for as-
needed right of way relocation services to support the Design Engineering Services section of
the Department of Public Works for a three year term with two one-year optional renewals;
authorize the Public Works Director to execute, administer and take the necessary actions to
implement the agreements; and authorize minimal changes to the agreements that do not
substantially change the terms and conditions of the agreements, so long as such changes are
determined to be minimal by the City Attorney's Office (Associated Right of Way Services, Inc.;
Epic Land Solution, Inc.; Overland, Pacific & Cutler, LLC; Paragon Partners Ltd.; and Property
Specialists, Inc. dba CPSI), 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.
18. Approve a License Agreement with Southern California Edison to lease five acres to
AGR- develop a passive recreation park located at 1631 South Nutwood Street for ten years at
11652 a rate of$5,928 per year for years one through five, and an amount not to exceed the
Consumer Price Index for the Los Angeles-Orange County area in effect at the
conclusion of the first five year period for years six through ten, with an option to renew
for one additional five-year period under the same terms and conditions; authorize the
Community Services Director, or designee, to execute and take such actions necessary
or required to implement and administer the Agreement; and determine that the License
Agreement is not subject to the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2), 15061(b)(3), 15301 and 15378 of the State CEQA guidelines,
because it will not result in a direct or reasonably foreseeable indirect physical change in
the environment, because it involves operation, permitting, licensing, and/or leasing of
existing private structures or facilities involving negligible or no expansion of existing or
former use, because there is no possibility that it may have a significant effect on the
environment, and because it is not a project, as defined in Section 15378 of the CEQA
guidelines, and because it is also the subject of categorical exemptions from CEQA.
Community Services Director Larry Pasco advised the item recommends the approval of a
License Agreement between City of Anaheim and Southern California Edison (SCE) to lease five
acres to develop a passive recreation park located at 1631 South Nutwood Street. When
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Page 11 of 22
funding is identified for the development of this site, community meetings will occur to engage
the community to determine what amenities could be built at the park and staff will work with
SCE to finalize the project.
DISCUSSION: In response to Council Member Barnes' inquiry, Mr. Pasco advised that through
the franchise agreement with SCE, the city is afforded 10 additional acres of parkland to be
selected at the City's discretion. He stated they have identified other pieces of land in District 1
that are north and south of Maxwell Park and will be bringing those documents to Council at a
later date. He further advised the franchise agreement goes through 2034 and highlighted this
license agreement has an initial term of ten years, similar to other agreements such as the
Anaheim Coves. He further advised the rent for this parcel is $5,600 annually, which comes out
of a credit account that comes from an SCE account, which currently contains $700,000, which
will pay for the parcel.
In response to Council Member Barnes' inquiry, Mr. Pasco clarified that SCE created a credit
account in 2004 so Anaheim could draw from the account to pay rents on the parcels of land
Anaheim acquires from SCE. He advised there is room for negotiation with SCE on the amenities
at the park. He further noted that the franchise agreement is solely for the rent of the properties,
and the development of the land is funded by grants or the general fund.
In response to Council Member Faessel's inquiry, Mr. Pasco advised there is a ten-acre
maximum limit however, SCE will provide additional and above the ten-acre limit if needed.
In response to Council Member Moreno, Mr. Pasco confirmed that rent is stable for the first five
years, and any rent increase thereafter is based on the Consumer Price Index (CPI). Council
Member Moreno commended staff in negotiating an agreement with stable rent for five years to
allow the City to plan accordingly and provide financial stability.
MOTION: Council Member Barnes moved to approve a License Agreement with Southern
California Edison to lease five acres to develop a passive recreation park located at 1631 South
Nutwood Street for ten years at a rate of$5,928 per year for years one through five, and an
amount not to exceed the Consumer Price Index for the Los Angeles-Orange County area in
effect at the conclusion of the first five year period for years six through ten, with an option to
renew for one additional five-year period under the same terms and conditions; authorize the
Community Services Director, or designee, to execute and take such actions necessary or
required to implement and administer the Agreement; and determine that the License Agreement
is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2), 15061(b)(3), 15301 and 15378 of the State CEQA guidelines, because it will not
result in a direct or reasonably foreseeable indirect physical change in the environment, because
it involves operation, permitting, licensing, and/or leasing of existing private structures or facilities
involving negligible or no expansion of existing or former use, because there is no possibility that
it may have a significant effect on the environment, and because it is not a project, as defined in
Section 15378 of the CEQA guidelines, and because it is also the subject of categorical
exemptions from CEQA, seconded by Council Member Moreno. ROLL CALL VOTE: AYES — 7
(Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil);
NOES — 0. Motion carried.
City Council Minutes of July 30, 2019
Page 12 of 22
AGR- 19. Approve the First Amendment to Professional Services Agreement with Civic Solutions,
10641.1 Inc., increasing the total not to exceed amount from $300,000 to $1,200,000 over the
remaining three year term of the contract, to provide as-needed consulting and staff
services, and authorize the Planning Director to execute the amendment and other
related documents necessary to implement the agreement.
DISCUSSION: In response to Council Member Moreno's inquiry, Deputy City Manager David
Belmer confirmed that there are no increase in fees and the costs of the consultant services are
assumed by project applicants; consequently, there is no direct impact on the city's finances and
will be reimbursed through fees.
MOTION: Council Member Moreno moved to approve the First Amendment to Professional
Services Agreement with Civic Solutions, Inc., increasing the total not to exceed amount from
$300,000 to $1,200,000 over the remaining three year term of the contract, to provide as-needed
consulting and staff services, and authorize the Planning Director to execute the amendment and
other related documents necessary to implement the agreement., 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.
0148 26. Nominate and appoint a voting delegate and up to two voting alternates to the League of
California Cities Annual Conference, to be held on October 16 - 18, 2019 in Long Beach,
California.
APPOINTMENT: Mayor Pro Tern Krinq
Mayor Sidhu nominated Mayor Pro Tem Kring as the voting delegate. ROLL CALL VOTE:
AYES— 6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O'Neil);
NOES— 0; ABSTENTION — 1 (Council Member Moreno).
Council Member Moreno nominated Council Member Barnes as the voting delegate. ROLL CALL
VOTE: AYES—2 (Council Members Barnes and Moreno); NOES— 1 (Mayor Sidhu);
ABSTENTION —4 (Mayor Pro Tern Kring and Council Members Brandman, Faessel, and
O'Neil).
ALTERNATE: Council Member Barnes
ALTERNATE: Council Member O'Neil
Mayor Sidhu nominated Council Members Barnes and O'Neil as alternates. ROLL CALL VOTE:
AYES— 6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O'Neil);
NOES— 0; ABSTENTION — 1 (Council Member Moreno).
Council Member Moreno nominated Mayor Pro Tern Kring and Council Member Brandman as
alternates. Council Member Moreno withdrew the nominations.
City Council Minutes of July 30, 2019
Page 13 of 22
B105 27. Consider an appointment/re-appointment to the Library Board, term ending June 30,
2019, to a four year term ending June 30, 2023 (continued from the Council meeting of
July 16, 2019, Item No. 38).
Library Board:
[RE] APPOINTMENT: Shelby Hogan
(Incumbent, Roberto Baeza)
Mayor Sidhu nominated Roberto Baeza. ROLL CALL VOTE: AYES— 3 (Mayor Sidhu and Council
Members Kring and Faessel); NOES— 2 (Council Members Barnes and O'Neil); ABSTENTION —
2 (Council Member Brandman and Moreno).
Council Member Moreno nominated Patrick Gibson. ROLL CALL VOTE: AYES— 2 (Council
Members Barnes and Moreno); NOES— 1 (Council Member O'Neil); ABSTENTION —4 (Mayor
Sidhu and Council Members Kring, Brandman, and Faessel).
Mayor Pro Tern Kring nominated Shelby Hogan. ROLL CALL VOTE: AYES— 5 (Mayor Sidhu and
Council Members Kring, Barnes, Brandman, and Moreno); NOES— 0; ABSTENTION —2 (Council
Member Faessel and O'Neil).
D114 28. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE
CITYOF ANAHEIM amending and restating the procedures and rules of order for the
conduct of City Council meetings (adding a "Report from Regional Board
Representatives" to the order of business).
City Clerk Theresa Bass advised that at the July 16, 2019 City Council meeting, Council Member
Moreno requested the City Council agenda provide for an opportunity for members of the City
Council who serve as Regional Board representatives to provide an update or report on the
regional board in which they serve.
Ms. Bass advised that the Council Rules of Order were last amended by the City Council on
January 29, which included an amendment to the Order of Business, as well as a restructure of
the public comment process. The proposed resolution amends Section 2.01, the Order of
Business, to add a "Report from Regional Board Representatives" section to the business
agenda, immediately preceding the council communications section of the agenda. She advised
that this section of the agenda would provide representatives an opportunity to provide a report
or briefing to the full Council on the general business, activities, and agenda of the body on
which the representative serves and would be in effect on August 13, 2019, if approved.
DISCUSSION: Council Member Moreno stated he feels it is difficult to provide updates and
comments within the five (5) minutes afforded each Council Member during Council
Communication on items related to the regional boards that each member serves. This item will
provide an opportunity on the agenda for representatives to report out on the agencies they
serve, as the votes and matters taken by these boards impact residents.
Council Member O'Neil expressed that the item was not necessary as agendas and minutes
from regional boards were readily available. A report can be included as part of Council
Communications, as is currently done by other Council colleagues.
City Council Minutes of July 30, 2019
Page 14 of 22
Mayor Pro Tern Kring shared she provides her reports during Council Communications, as she
has done with regard to updates on MosquitoNector Control. She referenced a video she
shared during Council Communications at the last meeting regarding prevention of mosquito
diseases.
Council Member Barnes felt a report could be built into the City Council comments.
Council Member Moreno stated that the regional boards are policy-making bodies that impact
residents and felt that this item provides a Council Member an opportunity to inform residents
and seek input.
Council Member Faessel felt that there was sufficient time available during Council
Communications and believed additional time can be provided, if requested.
Mayor Pro Tern Kring also feels the item was not necessary.
Council Member Barnes shared that regional reports provides the public an opportunity to learn
what occurs and how tax dollars are spent. She believed, if provided, the time during council
comments to provide the report would be an advantage to the public.
Council Member Brandman stated he does not support the item, as he has not supported the
other changes with regard to the structure of the agenda. He stated if there were an item of
criticality, he would bring forward and report.
MOTION: Council Member Moreno moved to approve A RESOLUTION OF THE CITY COUNCIL
OF THE CITYOF ANAHEIM amending and restating the procedures and rules of order for the
conduct of City Council meetings (adding a "Report from Regional Board Representatives" to the
order of business), seconded by Council Member Barnes. ROLL CALL VOTE: AYES — 1
(Council Member Moreno); NOES—6 (Mayor Sidhu and Council Members Kring, Barnes,
Brandman, Faessel, and O'Neil). Motion failed.
PUBLIC HEARING:
0220 29. This public hearing was withdrawn by the request of the appellant.
FINAL SITE PLAN NO. 2018-00005
CONDITIONAL USE PERMIT NO. 2019-06003
(DEV2018-00034)
OWNER/APPLICANT: Maria Korkosz, PT Metro, LLC, 95 Enterprise, Suite 200, Aliso
Viejo, CA 92656
AGENT: Ted Frattone, Hunsaker and Associates, 3 Hughes, Irvine, CA 92618
LOCATION: The subject property is 4.49 acres, located at the northeast corner of Gene
Autry Way and Westside Drive, in an area of the City of Anaheim known as the Platinum
Triangle.
REQUEST: 84 dwelling units located within 28 triplex townhome buildings that are
located closer to each other than minimum distance required by Code (20 feet required;
11.8 feet proposed).
ENVIRONMENTAL DETERMINATION: The City Council will consider whether the
previously certified Platinum Triangle Expansion Project Subsequent Environmental
City Council Minutes of July 30, 2019
Page 15 of 22
Impact Report No. 339 and associated Addenda, are the appropriate environmental
documentation for this request.
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved Final Site Plan No. 2018-00005 (PC2019-028), and Conditional Use Permit No.
2019- 06003 (PC2019-029), with an added condition of approval to state that the
applicant/developer shall provide a notice to all contractors, employees, and workers
during construction that parking is permitted on the subject property and public streets
only, and that no parking is allowed on adjacent private properties. The notice shall also
state that vehicles parked on adjacent private properties will be subject to towing and
removal. Motion was made by Commissioner Meeks, seconded by Commissioner Keys.
Approved Vote: 3-2 (Chairperson Lieberman and Commissioners Keys and Meeks voted
yes. Commissioners Mulleady and White voted no. Commissioners Armstrong and
Vadodaria were absent). Motion Carried. (Planning Commission meeting of May 29,
2019) (Appealed by Bill Hall, Action Mold and Tool Company, Inc.).
Item No. 29 withdrawn at the request of the appellant; no action taken.
AGR-11653 30. This is a public hearing to consider a Purchase and Sale Agreement with ATN Asset
AGR 11654 Holding Co. LLC for real property generally located at 1213 and 1227 South Claudina
Street and the southeast corner of Lincoln Avenue and Manchester Avenue to create an
economic opportunity through the expansion and enhancement of the Anaheim
Transportation Network Service.
RESOLUTION NO. 2019-093 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving the sale of certain property known as the Claudina
Property to ATN Asset Holding Co. LLC; authorizing the Director of Community and
Economic Development to execute and administer any necessary documents to
implement the sale; and making certain other findings in connection therewith (1213 S.
Claudina Street and 1227 S. Claudina Street).
RESOLUTION NO. 2019-094 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving the sale of certain property known as the Manchester
Property to ATN Asset Holding Co. LLC; authorizing the Director of Community and
Economic Development to execute and administer any necessary documents to
implement the sale; and making certain other findings in connection therewith (Southeast
Corner of Lincoln Avenue and Manchester Avenue — Manchester Property).
Community & Economic Development Director John Woodhead, in an abundance of
caution and in accordance with Government Code §1091.5(a)(7), disclosed that while
elected by the ATN membership in his capacity as president of the Downtown Anaheim
Association as a non-salaried member of the ATN Board in November 2018, he never
attended any meetings nor served in any capacity on the board, and was likely removed
in accordance with the ATN by-laws.
Community & Economic Development Director John Woodhead reported that on April 27, 2004,
the City Council granted a nonexclusive franchise to the ATN to provide transportation shuttle
services within The Anaheim Resort and other areas within the city. The franchise agreement
was recently amended by the City Council on May 17, 2019. The ATN serves as a critical
mitigation measure required in The Anaheim Resort Specific Plan to reduce congestion and
improve mobility options through the provision of the Anaheim Resort Transportation (ART)
City Council Minutes of July 30, 2019
Page 16 of 22
system, which currently operates 23 routes 365 days per year, serving over 9.5 million annual
passengers. In an effort to expand the breadth of their service to the Anaheim community, ATN
launched an app-based micro-mobility service in Center City called FRAN (Free Rides Around
the Neighborhood) in January 2019.
Mr. Woodhead further reported that in May 2009, ATN acquired 1354 South Anaheim Blvd. and
retrofitted the existing buildings to accommodate their administrative and operational needs.
Since acquiring the property, ATN's ridership and fleet size have grown substantially,
necessitating interim stopgap solutions for bus parking on various parcels in the area.
Understanding the need to enhance and modernize their services and facility, ATN applied for
and received a $28 million State Transit and Intercity Rail Capital Program (TI RCP) grant in May
2018 to purchase 40 all-electric buses, provide charging infrastructure for the buses, and pilot
the FRAN service. The grant will electrify approximately 50 percent of their fleet and provide a
pathway for one hundred percent electrification of the fleet; however, ATN's current facility on
Anaheim Blvd. does not meet their current or future space and infrastructure needs to
accommodate the switch to an electric fleet.
Mr. Woodhead stated the proposed Purchase and Sale Agreements include the sale of two City
owned or controlled sites. The first site, at 1213 and 1227 South Claudina Street, is 2.48 acres
with a fair market value of$7.25 million, as valued by an MAI appraiser. The Claudina Properties
were authorized for acquisition by the Anaheim Housing Authority and that transaction closed
this evening. The second site is located at the southeast corner of Lincoln Avenue and
Manchester Avenue and includes four remnant parcels from the 1-5 freeway widening and the to-
be-vacated portion of Center Street, totaling 1.25 acres with a fair market value of $2.42 million,
as valued by an MAI appraiser. Since 1227 S. Claudina St. is subject to a lease, which does not
expire until October 2020, the City will attempt to negotiate an early lease termination. The cost
of the lease termination is unknown but that cost will be added to the purchase price assuming
ATN determines that the cost is within its budget. If the City is unable to negotiate an early
termination of 1227 S. Claudina Street or the cost is prohibitive, the Claudina Properties PSA
would be terminated. In order to facilitate the proposed transaction with ATN, it is proposed that
the Authority and City enter into an agreement to allow for the exchange of the Claudina
properties; with the Authority being provided an equivalent valued parcel of land in the adjacent
City-owned properties on Anaheim Boulevard. Under the terms of the proposed PSAs, the City
would convey fee interest in the Claudina Properties and Manchester Sliver for a combined
purchase price of$9.67 million plus relocation costs associated with existing tenants on the
Claudina properties. The City will carry back a promissory note for the full purchase price due in
10 years with a fixed monthly interest payment of$16,500 for the Claudina Properties and
$5,500 for the Manchester Sliver. This rate is approximately 2.5%, which is slightly higher than
what the City earns on its funds that are deposited in the Local Agency Investment Fund. A
private money market interest rate would be 4%. The difference over the 10-year term of the
note is $1,300,000, which will be added to the principal amount of the note. ATN is under
contract to sell its current property on Anaheim Boulevard to a third party. If that sale is not
consummated within 240 days following start of construction on the new facility at the Claudina
Properties, the City is obligated to acquire ATN's property. The ATN property would then be
incorporated into a larger development plan for the Anaheim Boulevard corridor. Finally, if ATN
fails to commence construction of its new facility on the Claudina Properties within 18 months of
escrow closing, the Promissory Note will be voided and the City will take title back to the
Claudina Properties.
City Council Minutes of July 30, 2019
Page 17 of 22
Mr. Woodhead further reported that the new ATN facilities include administrative offices, training
rooms, maintenance and washing facilities, parts storage, bus parking, bus charging
infrastructure, bus staging, and employee parking split between the Claudina and Manchester
properties. The purchase agreements require that ATN obtain administrative site plan approval
by the City to ensure quality design and limit impacts on the surrounding area. The location of
both sites in close proximity to the Anaheim Resort provides operational efficiencies for ATN's
future operations; however, neither location would serve the general public as a transit station
where the public could board an ATN fleet vehicle. ATN's services focus on fixed-route lines
between various destinations in and around The Anaheim Resort in addition to the e-hail
microtransit service within Center City. Staff determined that the Agreements are exempt from
CEQA. In addition, the intended land uses require ministerial review and are, therefore, exempt
from CEQA.
Mayor Sidhu opened the public hearing.
Diana Kotler, ATN, thanked Council for the consideration of the item and advised they worked
closely with City staff to ensure that City goals, ATN goals, and constituent goals are met.
Mayor Sidhu closed the public hearing.
DISCUSSION: In response to Council Member Faessel's inquiry, Mr. Woodhead advised they
will reach out regarding acquiring the Scale House.
Mayor Pro Tern Kring expressed her support for the project and FRAN mobile service.
In response to Council Member Moreno's inquiry, Diana Kotler, ATN, did advise the Scale House
would turn into a bus wash.
In response to Council Member Moreno's inquiry, Mr. Woodhead advised there is a design
review process to review the property and ensure it fits aesthetically into the resort area. Diana
Kotler, ATN, shared the vision for having all properties fitting aesthetically into the resort area.
In response to Council Member Moreno's inquiry, Mr. Woodhead advised the public was not
paying for this item in any way.
In response to Council Member Moreno's inquiry, Mr. Woodhead advised this item is dealing with
Successor Agency properties to which the City is entitled 10% of the proceeds. Mr. Woodhead
further advised that the interest payments are very little impact to the City fiscally.
Diana Kotler, ATN, advised ATN is financing all of the capital improvements needed on the
property. She clarified that ATN was created by the City of Anaheim and confirmed the ATN is a
quasi-governmental agency. Mr. Woodhead clarified the interest balloon payment within the
agreement.
In response to Council Member Barnes' inquiry, Mr. Woodhead advised the City finances many
properties, but he cannot foresee what the interest rate would be in the future. Diana Kotler,
ATN, reported they are a quasi-governmental agency and seek most of their profits from fares
and cannot obtain a conventional loan.
City Council Minutes of July 30, 2019
Page 18 of 22
MOTION: Mayor Pro Tern Kring moved to approve the item as presented, seconded by Council
Member O'Neil. ROLL CALL VOTE: AYES — 5 (Mayor Sidhu and Council Members Kring,
Brandman, Faessel, and O'Neil); NOES —0; ABSTENTION —2 (Council Members Barnes and
Moreno). Motion carried.
6137.1 31. This is a public hearing with respect to the proposed issuance by the Anaheim Housing
Authority of its multifamily housing revenue bonds in aggregate principal amount not to
exceed $15,000,000, in order to finance the acquisition, rehabilitation and conversion of a
70-unit motel to a 69-unit, permanent supportive rental housing development located at
2691 West La Palma Avenue (Econo Lodge Apartments).
RESOLUTION NO. 2019-095 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM pursuant to Section 147(f) of the Internal Revenue Code of 1986
approving the issuance of bonds by the Anaheim Housing Authority for the Econo Lodge
Apartments.
Community & Economic Development Director John Woodhead reported this action happens
periodically as part of the financing for the Econo Lodge conversion, which includes 4% tax
credits and bond issuance. The Housing Authority took action earlier in the meeting to issue
those bonds. When an entity issues tax-exempt bonds, the City is required to hold a TEFRA
(Tax Equity and Fiscal Responsibility Act) hearing. This item involves the Econo Lodge Project,
which is an existing 70-unit motel located at 2691 W. La Palma Avenue.
Mayor Sidhu opened the public hearing.
Mark Richard Daniels expressed his support for the item and felt it would be a great addition to
west Anaheim.
Mayor Sidhu closed the public hearing.
DISCUSSION: In response to Council Member Faessel's inquiry, Mr. Woodhead advised the
Housing Authority issues bonds to finance the project as the City receives an up-front fee and an
annual fee. He advised that the bond holder could only look to the developer and the project
with no City exposure, if there is some default within the project.
In response to Council Member Moreno's inquiry, Community and Economic Development
Deputy Director Grace Stepter advised the community outreach meeting was held on July 9,
2019 at the site. She advised there was representation by residents, business owners, and the
Jamboree Housing Corporation.
Council Member Barnes thanked Jamboree Housing Corporation for their hard work on the
project and felt this was a great opportunity for Anaheim and Permanent Supportive Housing.
Mayor Sidhu thanked City staff for their hard work in this endeavor.
MOTION: Mayor Pro Tem Kring moved to approve RESOLUTION NO. 2019-095 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to Section 147(f)
of the Internal Revenue Code of 1986 approving the issuance of bonds by the Anaheim Housing
Authority for the Econo Lodge Apartments, seconded by Council Member Faessel. ROLL CALL
City Council Minutes of July 30, 2019
Page 19 of 22
VOTE: AYES —7 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno,
Faessel, and O'Neil); NOES — 0. Motion carried.
AGR 11655 32. This is a public hearing to consider a Disposition and Development Agreement and
Ground Lease with 39 Commons Partners, LLC for real property generally located at
Lincoln Avenue and Beach Boulevard (APNs 258-011-17, 21, 23, 24, 25, 27, 29, 31, 258-
021-028, and 031-011-05; for the development of a mixed use project).
RESOLUTION NO. 2019-096 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving a Disposition and Development Agreement by and
between the City of Anaheim and 39 Commons Partners, LLC; authorizing the Director of
Community and Economic Development to finalize such Disposition and Development
Agreement; authorizing the Director of Community and Economic Development to
implement such Disposition and Development Agreement; and making certain other
findings in connection therewith (39 Commons Mixed Use Project).
Community & Economic Development Director Woodhead advised that in 2001, the City of
Anaheim, through its former Redevelopment Agency, commenced the acquisition and
subsequent environmental remediation of three former landfills and other obsolete properties
located at the northeast corner of Beach Boulevard and Lincoln Avenue. The original site was 25
acres. He advised that in October 2002, the first Disposition and Development Agreement with
Zelman Development was approved and amended over ten years. During that time, the former
Redevelopment Agency undertook extensive remediation of the three landfills and a mud pit that
were on the site. In 2012, dissolution of the Redevelopment Agency became effective which
suspended all pending transactions, including this project.
Mr. Woodhead advised that on September 2016, the City Council approved a DDA, which
included a revised site plan. He noted that shortly following the approval, both parties determined
that the changing economic conditions with proposed tenants and the identification of additional
costs beyond that anticipated for construction on the landfill portions of the site required
restructuring the deal and that the DDA has since been rescinded. In 2018, the City was
presented with the opportunity to purchase the adjacent property from Westgate Investment
Group with whom the City was in litigation for non-payment of their share of ongoing
environmental mitigation and monitoring costs. He also noted that in April 2018, the City Council
approved a Purchase and Sale Agreement with WIG for an approximately 5-acre site, which
increased the development site to approximately 30 acres.
Mr. Woodhead reported the retail industry has significantly changed since 2016. Traditional big-
box retailers are limited in number and going out of business. Additionally, sit-down restaurants
are transitioning to fast-casual dining and paying higher rents than larger tenants are. Due to the
shift in trends and market conditions, the project scope was modified to feature a for-sale
residential component to complement the retail and restaurant element. The City Council
incorporated residential as an allowed use on the site as part of the recently adopted Beach
Boulevard Specific Plan, allowing for a viable mixed-use project at this key location. Residential
uses are now permitted on an approximate 4-acre portion of the site that is not located on the
landfill.
Mr. Woodhead advised the proposed new DDA is with 39 Commons Partners, LLC, a joint
venture formed by Zelman Anaheim LLC and Greenlaw Partners, Inc. The terms about
conveyance of the property is a fee interest and ground lease to the Developer. The project is
City Council Minutes of July 30, 2019
Page 20 of 22
divided into four components; the retail component which will run parallel to Beach Blvd and 3
acre residential site that will run parallel to Lincoln Ave. Those are components 1 and 2, which
are subject to the $5.6 million sale. The developer will be leasing the other two component
areas,one of which is a 6 acre site for a grocery store component, If the developer is
unsuccessful in obtaining a grocery store acceptable by the City, the City will take back the land
and the developer will deposit $1.3 million along with the $5.6 million, which will act as liquidated
damages. The final component of the site is still under discussion. If the item is approved, the
developer will deposit $50,000 which is applicable towards the purchase price but forfeitable if
not closed. An additional $100,000 will be deposited when the final site plan is approved by
Planning Department, that is also applicable towards the purchase price but forfeitable if not
closed. The developer hopes to break ground on the project in January/February 2020.
Mayor Sidhu opened the public hearing.
Mark Richard Daniels provided a history of the project location, expressed his support for the
item, and thanked Council Member Barnes for her leadership on the project.
Lisa Klawe expressed her excitement for the project but was concerned that a grocery store has
not been finalized for the project. She thanked Community & Economic Development Director
Woodhead for presenting the item at Council Member Barnes' town hall meeting.
David Klawe spoke of his attendance at the community meeting with GreenLaw Partners and
Council Member Barnes' town hall meeting. He thanked Council Member Brandman and the
Mayor for their work on the Specific Plan. He also expressed his support for the item and would
like the project to be completed as soon as possible.
Cecilia Aguilar expressed her support for the item and looked forward to new developments in
West Anaheim, as this will serve as new beginning. She requested quality retail/tenants and for
sale residential for the project, and hopes to see the project through completion with Phase 3
and 4.
Mayor Sidhu closed the public hearing.
DISCUSSION: Mayor Sidhu expressed his excitement for the project and supported Zelman
Development as the developer in the project.
Council Member Faessel expressed his support for the item and felt it was an opportunity to get
the Beach Boulevard Specific Plan underway.
Mayor Pro Tem Kring noted she has been involved with the project for over 20 years and was
delighted to see Zelman Development involved in the project.
Council Member Barnes thanked City staff for their hard work on the project.
Council Member Brandman expressed his support for the item.
MOTION: Mayor Pro Tern Kring moved to approve RESOLUTION NO. 2019-096 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Disposition
and Development Agreement by and between the City of Anaheim and 39 Commons Partners,
LLC; authorizing the Director of Community and Economic Development to finalize such
City Council Minutes of July 30, 2019
Page 21 of 22
Disposition and Development Agreement; authorizing the Director of Community and Economic
Development to implement such Disposition and Development Agreement; and making certain
other findings 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 ACTIVITES: City Attorney Robert Fabela reported for Item
No. 3 Council unanimously authorized the City to initiate potential litigation against
pharmaceutical manufacturers and Item No. 4 was withdrawn from the agenda.
PUBLIC COMMENTS (non-agenda items): None
COUNCIL COMMUNICATION:
Council Member Faessel requested the meeting be adjourned in memory of Ken Boydstun. He
requested a Council item to consider donating salvage vehicles and lighting materials to
Guanajuato, Mexico, concurred by Mayor Sidhu and Council Member O'Neil. He congratulated
District 5 resident Gisela Suarez for passing her naturalization exam and becoming a U.S.
citizen. He reported his attendance at a tour of the Prado Dam with the Santa Ana River Flood
Protection Agency and the Army Corps of Engineers, a Pudong, China Sister City celebration,
Tacos with a Cop at Northgate Market, the District Attorney's recognition of Tierra Mia coffee
shop, and a visit with the Mito, Japan exchange students.
Council Member Brandman requested a resolution in support of AB-1482 in regard to tenancy
rent caps, concurred by Mayor Sidhu and Council Member Faessel. He concurred with the
adjournment in memory of Ken Boydstun. He announced District 2 community meeting on
August 22nd at the Dad Miller clubhouse, the Santana Ways Concert on the Green at Dad Miller
on August 2nd, and National Night Out at Maxwell Park on August 6th. He encouraged everyone
to donate to the Magnolia High School football team as their gear was recently destroyed by fire.
Council Member Moreno thanked the residents of Friendly Village for inviting him to their monthly
meeting, Green Bird for their clean-up event at Walnut Grove Park, and Martiza Bermudez,
Community Services staff, and other organizations for coordinating a back-to-school event on
August 3rd in the Vine- Bush-Rose neighborhood. He announced an open house at the Blue Sky
Manor Wilshire property on August 8th and that the Section 8 wait list was open July 29-August
9, available at www.anaheim.myhousinq.com. He requested a public presentation of the stadium
appraisal on August 13th (concurred by Council Member Barnes; request failed for lack of
second concurrence). He asked the City Manager and City Attorney to review prior Council
actions regarding making the appraisal publically available and requested it be made available
on August 27th. He requested an agenda item on August 13th to consider a rent stabilization
ordinance for mobile home parks (concurred by Council Member Barnes; request failed for lack
of second concurrence).
Mayor Pro Tern Kring reported her attendance at the ribbon cutting for Jersey Mike's in the
Anaheim Gateway Center and that the restaurant is donating to the Anaheim Community
Foundation. She also announced her attendance at the 65th anniversary of the Orange County
Sanitation District, the Vegan Faire, and a tour of Higher Ground. She thanked Anaheim Fire &
Rescue for their response to a traffic accident and injured construction worker at State College
and Ball. She requested the meeting adjourn in memory of former Council Member Iry Pickier.
She requested an agenda item to consider reverting to the previous City flag, concurred by
City Council Minutes of July 30, 2019
Page 22 of 22
Council Member O'Neil and Mayor Sidhu. She also requested an agenda item to remove the
sale of safe and sane fireworks (request failed for lack of concurrences).
Council Member O'Neil thanked staff for participating in the public safety town hall forum in
District 6.
Council Member Barnes announced her attendance at the FCCLA youth leadership conference
on June 30th, the 5th.Annual O.C. Leadership Conference on Aging, the O.C. League of Cities
general membership meeting, a Public Utilities meeting at Solara Court Senior Apartments,
Anaheim Day at the Orange County Fair on July 26th, a tour of major corridors in District 1 with
the City Manager and Sandra Sagert, and the Police Review Board meeting. She shared her
interest providing for a Code Enforcement officer review major corridors at least once a month.
She announced a snack giveaway at Haskett Library on July 31st and National Night Out on
August 6th.
Mayor Sidhu commended Karina Tarsedia for her 5,000 backpack giveaway at Angel Stadium
and asked staff to promote the event. He reported the visit by Sister City representatives from
Pudong, China and the Mito, Japan exchange students visit to City Hall.
ADJOURNMENT: At 9:28 P.M., with no further business to conduct, Mayor Sidhu adjourned the
July 30, 2019 meeting in memory of Ken Boydstun and Iry Pickier.
Theresa +:ss, CMC
City Clerk