2005/05/24ANAHEIM, CALIFORNIA -CITY COUNCIL
REGULAR MEETING
MAY 24, 2005
The City Council of the City of Anaheim met in regular adjourned session at 4:16 P.M. in the
Council Chambers of Anaheim City Hall, 200 South Anaheim Boulevard. The meeting was
called to order at 3:00 P.M. and the Notice of Adjournment to 4:00 P.M. was posted on May 24,
2005.
PRESENT: Mayor Curt Pringle, Council Members: Richard Chavez, Lorri Galloway, Bob
Hernandez and Harry Sidhu.
STAFF PRESENT: Dave Morgan, City Manager, City Attorney Jack White, and Deputy City
Clerk Linda Nguyen
A copy of the agenda for the meeting of the Anaheim City Council was posted on May 20, 2005
at the City Hall outside bulletin board.
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
Mayor Pringle moved to closed session for the following items:
CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (Subdivision (a) of
Government Code Section 54956.9)
Name of case: City of Anaheim v. Angels Baseball, LP, et al., Orange County
Superior Court Case No. 050001902.
Title:
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 2000 South Gene Autry Way, Anaheim, California.
Agency negotiator: Dave Morgan
Negotiating parties: Negotiating parties: City of Anaheim and National Football
League
Under negotiation: price and terms of payment.
3. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representative: Dave Hill
Employee organization: Anaheim Municipal Employees Association
At 5:03 P.M., Mayor Pringle reconvened the Council meeting.
INVOCATION: Pastor Steve Fiechter, Grace Lutheran Church
FLAG SALUTE: Mayor Pro Tem Chavez
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 2
ACCEPTANCE OF RECOGNITIONS:
The following recognitions were accepted to be presented at a later date:
Proclaiming June 5-11, 2005 as Management Week in Anaheim
Recognizing recipients of the Girl Scout Silver Awards
Recognizing Robert French on his retirement from the Orange County Unified School
District
Recognizing Amtrak on the 5th Anniversary of the Pacific Surfliner
Recognizing Anaheim Union School District 2005 Athletes and Scholar/Athletes
Declaration recognizing Operation GOD BLESS the Armed Forces Family
ADDITIONS/DELETIONS TO AGENDA: None
PUBLIC COMMENTS (All Matters Except Public Hearings):
William Fitzgerald, HOME, spoke of the recent cross complaint filed by the Angels against the
City of Anaheim. City Attorney, Jack White, clarified that the Angels' cross-complaint did not
seek monetary damages against the City.
A resident, spoke on making affordable multi-family developments a top priority.
James Robert Reade provided political commentary.
Esther Wallace, WAND, opposed donating City land to the National Football League for the
purpose of building a football stadium recommending other revenue-generating uses for the
property.
Manny Dutt, resident, voiced his objection to ethnic comments spoken during oral
communications.
Caesar Covarrubias, Orange County Commission, addressed Anaheim's housing needs for low
and very low income households recommending Council establish clear policies on how to
reach those goals through development opportunities on City-owned land and proposed private
sector residential projects.
Alma Ramirez took exception to comments made by various political leaders.
Eileen McCarthy, staff attorney representing the Public Law Center, addressed the need for
immediate affordable housing for displaced Imperial Terrace apartment residents losing Section
8 vouchers and the overall shortfall of workforce housing in Anaheim. Ms. McCarthy requested
Council analyze the possibility of requiring residential developers to set aside a percentage of
their projects to low and very low income housing and distributed a Los Angeles Times article
related to that subject.
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 3
Amin David, resident, thanked the City Council for their efforts towards affordable housing and
supported new and innovative steps to encourage further projects.
Alan Baldwin, Orange County Community Housing Corporation applauded the new emphasis
on affordable housing and asked Council to add an affordable housing component to the
Platinum Triangle and other potential residential developments for Anaheim's workforce.
CONSENT CALENDAR:
Council Member Sidhu removed Item 7 from the Consent Calendar for further discussion and
Council Member Hernandez removed item 22. Mayor Pringle indicated he would abstain on
Item 11 due to a potential conflict of interest.
Council Member Hernandez moved approval of the balance of the Consent Calendar Items 3 -
26, seconded by Council Member Galloway to waive reading in full of all ordinances and
resolutions and to approve the following in accordance with the reports, certifications and
recommendations furnished each Council Member and as listed on the Consent Calendar.
3. Reject certain claims filed against the City.
C118
4. Receive and file the Investment Portfolio Report for the month of April 2005; minutes of
D128 the Deferred Compensation Committee meetings held November 18, 2004, January 12,
B105 2005 and February 3, 2005; minutes of the Public Utilities Board meeting held April 7,
2005; and minutes of the Public Library Board meeting held April 11, 2005.
5. Accept the low bid of All American Asphalt, in an amount not to exceed $153,000, for
3495 hole and water valve adjusting for the Public Works Department for a period of one
year with four one-year options to renew and authorize the Purchasing Agent to exercise
the renewal options in accordance with Bid #6615.
6. Waive the sealed bid requirement of Council Policy No. 306 and authorize the
D180 Purchasing Agent to issue a purchase order to Marriott Hotels & Resorts, in an amount
not to exceed $87,000, for accommodations for training exercises for the Police
Department.
8. Reject all bids submitted for the Convention Way Improvement Project.
D175
9. Approve Contract Change Order No. 1 in favor of PSI, Inc., in the amount of $18,517.83,
3284 Fire Station No. 9 fuel tank replacement.
10. Approve the Acquisition Agreement with James J. and Monica Delanty and Abdul Azziz
3497 Hamad, in the acquisition payment amount of $485,000, including escrow fees to
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 4
Grover Escrow Corp., for the purchase of real property located at 1793 South Camrose
Street for the Katella Avenue Smart Street project (Ninth Street to Humor Drive).
11. Approve annual services agreements with Lim & Nascimento Corporation, AKM
3498 Consulting Engineers, Boyle Engineering Corporation, and KFM Engineering, Inc., in
3499 amounts not-to-exceed $100,000 annually per each contract agreement ($200,000
3500 total), for miscellaneous design on-call and support services for public works
3501 improvement projects.
An abstention by Mayor Pringle was recorded.
12. Review the need for continuing the Proclamation of the Existence of a Local Emergency
D175 by the Director of Emergency Services of the City of Anaheim issued on February 9,
2005, and the subsequent orders issued pursuant thereto, concerning land movement
and property damage in the vicinity of 357, 365 and 373 Ramsgate Drive in the City,
and, by motion, determine that the need for continuing the local emergency exists.
13. Reappoint eleven individuals to the Anaheim Workforce Investment Board for afour-year
8105 term.
14. Approve a Cooperation Agreement between the City of Anaheim and the Anaheim
3493 Redevelopment Agency, for a total estimated project cost of $1,200,000, for the purpose
of improving the West Anaheim Sanitary Sewers (related to Agency Item #1).
15. Approve an agreement with The Chance Theater for a fee waiver to utilize the Twila
3501 Reid Recreation Center for rehearsals.
16. Approve a Notice of Exemption for the Pearson Restroom project.
N300
17. Approve the First Amendment to Agreement with Western Youth Services to increase
3195 City's maximum compensation amount from $42,526 to $68,226 to provide services
that support safe and stable families for the period of October 1, 2004 to June 30, 2005
and increase the revenue and expenditure appropriations, in the amount of $25,700.
18. Approve the assignment of Synergen Software Support Agreement from Synergen, Inc.
D182 to SPL WorldGroup, Inc. for a work management system for the Public Utilities
Department and authorize the Public Utilities General Manager to execute any
documents and take such actions as are necessary to complete the assignment of the
agreements.
19. Approve and authorize the Public Utilities General Manager to execute atwo-year
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 5
2815 extension to agreements with Equifax Credit Information Services, Inc. for credit
services and the California Utility Exchange for the Public Utilities Department.
20. RESOLUTION NO. 2005-90 RESOLUTION OF THE CITY COUNCIL OF THE CITY
P124 OF ANAHEIM accepting City Deed No. 10829 conveying to the City certain real property
interests granted therein.
21. RESOLUTION NO. 2005-91 RESOLUTION OF THE CITY COUNCIL OF THE CITY
3507 OF ANAHEIM approving the Workforce Investment Act Title I of the Master Subgrant
Agreement between the City of Anaheim and the State of California for the term of April
1, 2005 through June 30, 2007.
23. ORDINANCE NO. 5970 (INTRODUCTION) ORDINANCE OF THE CITY OF
C280 ANAHEIM amending Chapter 18.20 of Title 18 of the Anaheim Municipal Code relating
to the zoning regulations to be applicable to certain property upon annexation to the City
of Anaheim.
24. ORDINANCE NO. 5971 (INTRODUCTION) ORDINANCE OF THE CITY OF
C280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal
Code Relating to zoning (Reclassification No. 2004-00126, 1429 West Crone Avenue).
25. ORDINANCE NO. 5972 (INTRODUCTION) ORDINANCE OF THE CITY OF
C280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal
Code relating to zoning (Reclassification No. 2004-00127, 2401 E. Katella Avenue).
26. Approve minutes of the Council meeting held May 10, 2005.
END OF CONSENT CALENDAR
7. Award the contract to the lowest responsible bidder, Pouk &Steinle, Inc., in the amount
3496 of $12,929,988, for the Park Substation transmission and distribution and approve and
authorize the Finance Director to execute the Escrow Agreement pertaining to contract
retentions.
City Manager David Morgan stated Item 7 awarded a contract to the lowest responsible bidder
for construction of the Park Substation at Monte Vista and Roosevelt in Anaheim Hills. The
substation would provide electrical service reliability for East Anaheim including power for the
eventual development of the Mountain Park project. Council Member Sidhu questioned the
difference between the low bidder's figures while the 2"d and 3~d bids were similar in the total
dollars offered. Marcie Edwards, General Manager of the Utilities Department, indicated the
difference was not so much in terms of materials but in the assignment of labor hours and that
the lowest bid had met staff's estimate for the project. Ms. Edwards remarked her department
also considered experience when awarding bids and had contracted with Pouk &Steinle on
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 6
similar work and found their bids to be accurate with no history of coming in low and she did not
expect any notable change orders on the project.
Council Member Sidhu moved to approve Item 7, seconded by Council Member Chavez. Roll
Call vote: Ayes - 5-0; Mayor Pringle, Council Members: Chavez, Galloway, Hernandez and
Sidhu. Noes - 0. Motion Carried.
22. RESOLUTION NO. 2005-92 RESOLUTION OF THE CITY COUNCIL OF THE CITY
3503 OF ANAHEIM authorizing officials to execute and deliver (I) the Natural Gas Project Gas
Sales Agreement (Project A) and (II) approving the share of production capacity to be
purchased pursuant to such gas sales agreement.
ORDINANCE NO. 5969 (INTRODUCTION) ORDINANCE OF THE CITY OF
ANAHEIM approving entering into the Natural Gas Project Gas Sales Agreement
(Project A).
Mr. Morgan announced this was an item requesting Council's approval for natural gas for the
Magnolia Power Plant which would be dedicated in the near future. Council Member
Hernandez requested the item be removed from the consent calendar in order to recognize
Anaheim's management team for taking this innovative step to mitigate increased costs in
natural gas used to generate electricity for Anaheim residents. These actions, he noted, would
purchase gas ahead of time to beat the anticipated increase through along-term contract. He
also remarked the Utilities and Finance Departments in conjunction with the City Manager's
Office built protections in the contract to safeguard taxpayer's dollars. Mayor Pringle concurred
and commented the dedication of the Magnolia Power Plant would take place next week to
insure Anaheim maintained a low power rate for businesses and residents in the City.
Council Member Hernandez moved to approve RESOLUTION NO. 2005-92, RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing officials to execute and deliver
the Natural Gas Project Gas Sales Agreement and approving the share of production capacity
to be purchased and to introduce ORDINANCE NO. 5969 OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving entering into the Natural Gas Sales Agreement, with Council
Member Sidhu seconding the motion. Roll Call vote: Ayes - 5; Mayor Pringle, Council
Members; Chavez, Galloway, Hernandez and Sidhu. Noes - 0. Motion Carried.
27. Consider appointing two members to the Senior Citizen Commission to complete the
6105 unexpired terms of Kamal Naffa, term to expire June 30, 2007 and Charlotte DeVaul,
term to expire June 30, 2006.
With no objection from Council, Mayor Pringle continued Item 27 to the next meeting.
28. Consider appointing a member to the Planning Commission to complete the unexpired
6105 term of David Romero, term to expire June 30, 2006.
Mayor Pringle nominated Panky Romero to the Planning Commission; Council Member Sidhu
nominated Vijay Desai. As no other nominations were offered, a straw vote for Panky Romero
reflected Ayes - 3; Mayor Pringle, Council Members Chavez and Galloway and Noes - 2;
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 7
Council Members Hernandez and Sidhu. The straw vote for Vijay Desai reflected Ayes - 2;
Council Members Hernandez and Sidhu, Noes - 0, and Abstentions - 3; Mayor Pringle, Council
Members Chavez and Galloway. Mr. Romero was appointed to the Planning Commission.
PUBLIC HEARINGS:
29. A public hearing to consider a proposed amendment to the Redevelopment plans for the
ARA Merged Project Area.
ORDINANCE NO. 5973 (INTRODUCTION) ORDINANCE OF THE CITY OF
ANAHEIM approving the Redevelopment Plan Amendments to extend by one year the
effectiveness of the Redevelopment Plan and the time limit for the receipt of property tax
increment for the Merged Project Area.
Brad Hobson, Community Redevelopment Department, explained Senate Bill 1096 allowed
redevelopment agencies required to make payments to Educational Revenue Augmentation
Funds (ERAF) to amend each of its redevelopment plans that expired in less than 20 years. He
indicated Anaheim was required to make an ERAF payment of $2.6 million for this year and met
the criteria to extend the Alpha River Valley and Stadium Redevelopment Plans.
Recommending approval of the ordinance, Mr. Hobson noted Anaheim was in compliance for
expenditure of low and moderate income funds and also stated funds making payments to
ERAF would have otherwise been used to pay costs of projects and activities necessary to carry
out the goals of the redevelopment plans.
Mayor Pringle remarked the terms for the Alpha River Valley and Stadium Redevelopment
Plans were limited and since the state had shifted property tax dollars from local uses to their
own use for the last two years, this extension allowed the redevelopment plans to continue to
operate for one additional year to carry on the elements of the redevelopment plans including
financing.
Mayor Pringle opened the public hearing and receiving no testimony, closed the hearing.
Council Member Sidhu moved to approve Item 29 by introducing ORDINANCE NO. 5973 OF
THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Redevelopment Plan
Amendments to extend by one year the effectiveness of the Redevelopment Plan and the time
limit for the receipt of property tax increment for the Merged Project Area, seconded by Council
Member Hernandez. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members; Chavez,
Galloway, Hernandez and Sidhu. Noes - 0. Motion Carried.
30. A public hearing to consider the levy of annual assessment in and for the Anaheim
T104 Resort Maintenance District for fiscal year 2005/06.
RESOLUTION NO. 2005-93 RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM confirming the diagram and assessment and providing for the levy
of the annual assessment and providing for the Anaheim Resort Maintenance District.
Doris Roush, Public Works Department, provided background on Item 30. She noted the
property owners in the resort had voted to levy assessments upon themselves to insure the
long-term quality of the maintenance, repair and replacement of public improvements in the
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 8
resort area and that Council had established the assessment district in July, 1999. She noted
that the engineer's report was accepted on April 26, 2005 and the 2005/06 levy would generate
$3.5 million to be deposited into the Resort Maintenance District fund for their exclusive use.
She also remarked the Resort District Advisory Board reviewed the levy and recommended
approval.
Mayor Pringle opened the public hearing and receiving no testimony, closed the hearing.
Council Member Sidhu moved to approve RESOLUTION NO. 2005-93 OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM confirming the diagram and assessment and providing for the levy
of the annual assessment for the Anaheim Resort Maintenance District, seconded by Council
Member Chavez. Roll Call vote: Ayes - 5; Mayor Pringle, Council Members; Chavez,
Galloway, Hernandez and Sidhu. Noes - 0. Motion Carried.
31. CEQA MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING
N350 PLAN NO. 128
3504 DEVELOPMENT AGREEMENT NO. 2005-00001
3505 DEVELOPMENT AGREEMENT NO. 2005-00002
3506 DEVELOPMENT AGREEMENT NO. 2005-00003
OWNER: Peter L. Dunkel, 1515 East Katella Avenue, Anaheim, CA 92805
AGENT: Ken France, BRE Properties, 2020 Main Street, # 590, Irvine, CA 92614
LOCATION: 1515 East Katella Avenue. Property is approximately 14.46 acres with a
frontage of 585 feet on the north side of Katella Avenue and located 739 feet west of
the centerline of State College Boulevard (BRE Properties-Stadium Park Residential).
Development Agreement Nos. DAG2005-00001, DAG2005-00002, AND DAG2005-
00003 -Request to recommend adoption of three Development Agreements between
the City of Anaheim and BRE Properties, Inc. for the Stadium Park Residential Project
to construct 771 multiple-family dwelling units (320 apartments and 451 condominiums)
and associated streets and public park DAG2005-00001 - To construct a 320-unit
apartment building, associated streets and public park;
DAG2005-00002 -To construct a 196-unit condominium complex; and DAG2005-00003
- To construct a 255-unit condominium complex).
ACTION TAKEN BY THE PLANNING COMMISSION:
Recommended Council approval of Mitigated Negative Declaration and Mitigation
Monitoring Plan No. 128, with modifications (5 yes votes and 2 Commission vacancies).
Recommended City Council approval of Development Agreement No. 2005-00001
(PC2005-73).
Recommended City Council approval of Development Agreement No. 2005-00002
(PC2005-74).
Recommended City Council approval of Development Agreement No. 2005-00003
(PC2005-75).
Development Agreement No. 2005-00002 By and Between the City of Anaheim and
BRE Properties, Inc., (ii) Making Certain Findings Related Thereto, and (iii) Authorizing
the Mayor to Execute Said Agreement For and On Behalf of the City
ORDINANCE NO. 5976 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM (i) Approving Development Agreement No. 2005-00003 By and Between
the City of Anaheim and BRE Properties, Inc., (ii), Making Certain Findings Related
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 9
Thereto, and (iii) Authorizing the Mayor to Execute Said Agreement For and On Behalf
of the City
Greg Hastings, Planning Department, informed Council BRE Properties proposed to construct
a 771-unit residential project consisting of 320 apartments and 451 condominiums. The 14.5
acre project would be subdivided into five lots, with the tract map approved by the Planning
Commission, and included the construction of streets and athree-quarter acre public park. He
stated the project was proposed in the Platinum Triangle Mixed Use Overlay Zone which
required final site approval plan by the Planning Director and approval of the development
agreements by Council. He explained the applicant had requested three development
agreements to allow assignment of rights for smaller portions of the project resulting in one
apartment project and two condominium projects. He further explained this project was the
third request in the Platinum Triangle since last year's adoption of the Platinum Triangle Master
Land Use Plan and Mixed Use Overlay Zone and that previous approvals included the 390-unit
stadium lofts project located at the northwest corner of Katella and State College currently
under construction and 352 units of Archstone's project located on the former Orange Drive-In
site. He noted an industrial warehouse and moving facility was demolished to make way for
the residential project and the site was surrounded by light industrial office uses, aself-storage
facility and a hotel. The properties adjacent to the site along Katella Avenue were also
designated for mixed used residential development.
Mr. Hastings remarked that each of the three development agreements contained final plans
that had been approved by the Planning Director as being in conformance with the provisions
of the Overlay Zone and the Master Land Use Plan. He provided the following specifics for the
parcels: 1) The network of streets and backbone utilities, traffic signal and public park would be
constructed in conjunction with the first phase, which would be the apartment units proposed
on Parcel 1. 2) Parcel 1 would be developed as a 320 unit apartment community and would
have two levels of parking beneath four levels of living units for an overall height of 66.5 feet
from ground level. Recreational amenities, conference rooms, and a leasing office would be
located on the ground level and a resident lounge would be located on the first floor level of the
units. 3) Parcel 2 would be developed with 196 condominium units in two buildings having a
centralized private clubhouse and pool area. The condominiums would have three levels of
parking beneath five levels of living units for a total height of 71 feet. 4) Parcel 3 would include
two condominium buildings with 255 units and a private street leading from a new public
connector street. The buildings would have two levels of parking beneath four levels of living
units for an overall height of 84.5 feet above grade. 5) Parcel 4 would include approximately
.788 acre public park with both active and passive recreational areas and an on-street parking
area and Community Services Department would approve the final design. He noted the three
agreements had afive-year term to allow for build-out of the project with constructing beginning
in 2006 and ending in 2009.
Council Member Chavez remarked the City had aState-certified Housing Element which
indicated the development of 4,349 residential units for low and very low income residents by
2005 and that the City had fallen very short of that goal. He further stated a City report
indicated there were 18,000 families on a waiting list for Section 8 housing vouchers and that
according to the City's school district, 75 percent of the children attending Anaheim schools
either had no homes and resided in motels or were the 2"d 3`d or 4~h family in a household. He
stressed the need for a workshop to be scheduled as soon as possible to allow Council the
ability to set policy on affordable housing indicating he would not be in favor of approving any
residential projects until policy had been set.
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 10
Mayor Pringle stated Council Member Chavez as well as other members of the Council had
shared their concerns and visions with him related to affordable housing and that he had heard
the concerns of various public comment speakers expressed on this matter as well.
Related to the Stadium Park development, he commented today's market had created
opportunities for development of residential units and the City had taken aggressive action to
create a downtown Orange County whereby residential would be a part of the Platinum
Triangle. With much of the industrial area around the Triangle, if not all, privately owned, he
remarked the City had created an incentive for developers to move forward and buy land at
market rate, which 1.5 years ago was about $1 million per acre and now was $5 to $6 million
per acre. In the Platinum Triangle, he pointed out the City had not subsidized housing but
allowed market forces to bring about residential opportunity. He believed the City should
ensure utilizing resources to maximize benefits and to subsidize affordable housing where land
values were the highest would not be a responsible action by Council. He noted the City had
rezoned much of Anaheim's property to allow three or four brand new housing opportunities
within the City and a new housing ordinance had been submitted by the Kennedy Commission
who specifically asked for additional incentives for affordable housing opportunities although at
this time, no developer had taken that opportunity.
With that information as background, Mayor Pringle indicated he would recommend Council
participate in a workshop with ideas and plans to proceed on three topics: 1) to address the
need of the very poorest families in the City, most of whom were now located in motels; 2) to
seek ways to maximize the redevelopment funds that come to the City through State law. He
explained at least 20 percent of those funds were set aside as subsidies for housing support
and housing programs and Council should consider how it was used and how it could be used
to maximize affordable housing; and 3) with all the private sector development for housing,
several speakers had suggested developers participate in some affordable housing in the
future and those options should also be discussed. After some conversation with the City
Manager and Council, the workshop was scheduled for noon on June 7th, prior to the budget
workshop which was to begin at 2:00 p.m., as this would allow staff time to research and
prepare for the workshop.
Mayor Pringle asked when the next Platinum Triangle residential project would be considered
by Council and Greg Hastings replied the project surrounding the McDonald's site would be
heard by Council in approximately one month. Mayor Pringle indicated this would allow
Council time to determine policy prior to considering the next project. Mayor Pringle asked
Council if there were any other concerns prior to opening the public hearing and Council
Member Chavez touched on the need for a new fire station for the Platinum Triangle area. The
City Manager replied that would be discussed in the budget workshop session as part of the
presentation of the Fire Department budget.
Mayor Pringle ended comments by stating the June 7th workshop would allow Council to have
a broader discussion of affordable housing outside the context of the Stadium Park Residential
project and opened the public hearing on that matter.
Ken France, BRE properties, indicated his firm was publicly traded on the New York stock
exchange, and owned, operated and developed market rate apartments in the western United
States. He brought out the fact BRE currently had 89 properties with over 25,000 units and
one of the important distinctions was that they operated all of the units and were concerned
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 11
about the residents and the communities in which they live. Mr. France indicated there was a
design team present should questions on the development arise.
With no other comments offered, the hearing was closed.
Council Member Sidhu indicated the Platinum Triangle was established last year and that he
felt comfortable with the developer's project having met all the City's needs and requirements
and moved to approve the CEQA finding of Mitigated Negative Declaration and Mitigation
Monitoring Plan #128 and to introduce Ordinances 5974, 5975 and 5976, approving
Development Agrements 2005-00001, 2005-00002 and 2005-00003, seconded by Council
Member Hernandez.
Council Member Chavez remarked he had met with the project's representatives and felt it was
a great project that addressed the housing needs for young professionals and hoped the same
enthusiasm and excitement could be brought to the low and very low income housing goals.
Mayor Pringle pointed out the BRE project was not subsidized by the City and the developer
had purchased the property at a high cost and had lived up to the City's requirements for
development in the Platinum Triangle and he would support the project.
Roll Call vote: Ayes - 5; Mayor Pringle, Council Members Chavez, Galloway, Hernandez and
Sidhu; Noes - 0. Motion Carried
REPORT ON CLOSED SESSION ACTIONS:
None
COUNCIL COMMUNICATIONS:
Council Member Hernandez reminded the community of the Memorial Day services to be held
on Monday, 10:30 a.m. at Anaheim Cemetery on East Sycamore, put on by the American
Legion, American Veterans and Veterans of Foreign Wars.
Council Member Chavez reported staff had been working on an affordable housing project on
Vine Street with Mercy Housing, anon-profit agency, with the planning going on for close to
three years and it appeared negotiations for the 60 affordable units were about to fall apart. He
asked to agendize the issue of going forward with the project for the next Council meeting;
otherwise it could take another year as developers would have to wait to apply for another round
of tax credits.
Mayor Pringle asked if Council Member Chavez would consider changing his request to ask
staff to: 1) continue to negotiate and try to come to resolution within the next two weeks, 2)
communicate the terms of the negotiations directly to Council for all to understand what was still
under consideration and 3) report publicly to Council at the meeting on June 7th as to the status.
He requested Council Member Chavez consider this action as Mayor Pringle had not been fully
briefed on the details of the Mercy Housing negotiations and also because he believed that
placing the issue on the agenda would put pressure on staff to make a deal rather than to make
the best deal for the City.
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 12
Council Member Chavez responded that he understood the need for Council to be briefed,
however, his priorities were for the families desperate for housing and he continued to be
frustrated at having negotiations take three years for 60 affordable units while 1,000 units in the
Platinum Triangle was able to be expedited. He was also concerned that the timeline for tax
credits could pass and it could take another 6 months to 1 year for a new developer to receive
tax credits for the project if these negotiations failed.
Mayor Pringle stated he did not want to undercut staff during the negotiations and that he had
received information that Mercy Housing was requesting $1.5 million more in subsidy than the
City offered and was concerned that more funds would go into the project than was originally
agreed upon.
Council Member Sidhu indicated he had talked with the lead City negotiator on the Mercy
Housing project and felt the City should not be pressured in taking action due to the timeline for
tax credits. He reported originally the City was to put in $600,000 and that Mercy House was
holding out for another $1.4 million, funds which could be applied to a new affordable housing
project. He recommended considering other developers for the project.
Council Member Hernandez believed Mercy Housing was committed to the project and
recommended continuing with negotiations but finding a way to streamline and work through the
process.
Mayor Pringle remarked Mercy Housing was given the land at no cost and was now negotiating
for $2 million rather than the $600,000 agreed to originally. He recognized the City gave the
exclusive right to negotiate with Mercy Housing on this project but indicated that other avenues
were available to leverage the City's options in the future such as sending an RFP to developers
applying for State tax credits and being able to negotiate with more than one builder on a
project. In this instance, he was not suggesting ending negotiations with Mercy Housing but to
allow staff to continue to negotiate and get the best deal possible for the City.
Council Member Chavez pointed out Mercy Housing had stated they would abide by the City's
original project cost even though they believed the amount would be higher but they were
asking for protection in case the City's numbers were wrong.
Council Member Sidhu indicated he was not against the project, but was against putting an
additional $1.5 million in to build it.
Council Member Galloway believed Mercy Housing had spent time, money and energy on the
project and the City should continue to negotiate keeping the need for the 60 affordable homes
as a priority.
Mayor Pringle ended the discussion by stating staff had received the message of support for the
Mercy Housing project and Council would encourage them to continue to negotiate during the
next two week period. During that time, staff would also communicate the details of the
negotiation points to Council and on June 7~n, make a presentation on the status of the project.
He further stated if negotiations were not resolved, Mercy Housing should present a status
report to Council as well on the 7cn
ANAHEIM CITY COUNCIL MEETING MINUTES
May 24, 2005
Page 13
ADJOURNMENT: There being no further business to come before the City Council, Mayor
Pringle adjourned the meeting at 6:53 PM to 12:00 PM, June 7, 2005.
Res tfully s fitted:
Li da Nguyen, D ty ity Clerk