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05/18/2021ANAHEIM CITY COUNCIL REGULAR MEETING OF MAY 18, 2021 The regular meeting of May 18, 2021, was called to order at 3:00 P.M. and adjourned to 3:30 P.M. for lack of a quorum. The regular adjourned meeting of May 18, 2021 was called to order at 3:31 P.M. in person and telephonically, pursuant to Governor Newsom's Executive Order N-29-20 (superseding the Brown Act related provisions of Executive Order N-25-20) in response to COVID-19. The meeting notice, agenda, and related materials were duly posted on May 13, 2021. Mayor Harry Sidhu and Council Members Stephen Faessel, Jose Diaz, Jose F. Moreno, and Trevor O'Neil (in person). Council Member Jordan Brandman joined the meeting in person at 3:33 P.M. and Council Member Avelino Valencia joined the meeting in person at 3:36 P.M. STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and City Clerk Theresa Bass PUBLIC COMMENTS ON WORKSHOP: Cecil Jordan Corkern discussed Disneyland's reopening, his vaccination reaction, and encouraged Mayor Sidhu to wear the masks he previously provided to him. D106 WORKSHOP: Capital Improvement Program Finance Director Debbie Moreno provided a brief overview of the preliminary proposed Capital Improvement Program (CIP). She explained the CIP is a five-year fiscal planning tool that allocates a budget for capital projects to rehabilitate, improve, and build new public infrastructure such as streets, parks, and libraries. She advised capital projects are those that have a long useful lifespan with a minimum cost of $50,000 and are funded by various sources of revenues that are often restricted in how they can be spent or are one-time in nature. Ms. Moreno reported the CIP being presented is a preliminary plan that includes five years of projected capital needs and noted only the first year would be adopted with the proposed budget in June. She explained approval of the five-year plan does not ensure approval of individual projects. She advised, as projects move forward through the development process, they would be brought back to City Council for final approval and contract award. She explained that until a contract is awarded, projects may change in scope or be reprioritized. Ms. Moreno reported capital projects are funded by various sources that are often restricted and include grants, gas taxes, development impact fees, and bond proceeds which are generally one-time in nature and restricted for a speck purpose. She advised gas taxes, grants, and bond proceeds are usually restricted for street and infrastructure improvements or enhancements to the City's electric, water, and wastewater systems. She advised one-time revenues could be used for one-time projects such as new parks, community centers, fire stations, or other municipal facilities. She noted these revenues could not be used for ongoing services since they would not last. She explained the CIP is very different from the City's operating budget. She advised core services and tax revenues would be discussed with the City Council in three weeks, along with presentations by Police, Fire, and Community Services. Ms. Moreno reported the preliminary proposed CIP reflects an investment of $186,000,000 and is divided into seven project categories. She advised, for Fiscal Year 21/22, CIP projects in the City Council Minutes of May 18, 2021 Page 2 of 24 Commercial Entertainment Venues category have been deferred until Fiscal Year 22123. She explained capital funding fluctuates from year to year and noted the completion of a sizable project last year may appear as a drop in funding the following year but was simply a representation of normal ebb and flow as projects moved from design through construction. Ms. Moreno provided a brief overview of Story Maps, which is an online -based geographic information system (GIS) mapping tool that highlights all the preliminary proposed CIP projects in a gallery format that users can navigate through. She advised the tools are available to the public and can be accessed on www.anaheim.net/mvcitybudget. She further advised users can get an eary look at projects being considered with photos and locations plotted on the Anaheim map, tour the project map at their convenience, and have the opportunity to provide feedback through the budget page. Community Services Director Sjany Larson -Cash reported the Center Greens Improvement Project is currently in the design and development phase after much community involvement in 2018 and 2019 to create the final master plan and conceptual designs. She advised this project would transform the underutilized area of the 3.5-acre site to provide new passive and active recreational opportunities for people of all ages and abilities. She reported improvements would include a shaded community plaza, fitness loop trail, butterfly garden, concrete skate park, playground, upgraded basketball court, new fencing, native landscaping, and other park amenities. She reported staff has applied for two grants to supplement the existing funding which is a Land and Water Conservation Fund Grant from the National Park Service for $960,000 and a Proposition 68 Grant from the Rivers and Mountains Conservancy for $300,000. She advised grant award announcements are expected later this year and they anticipate construction to begin in mid-2022. Ms. Larson -Cash reported the River Park site is located between Angel Stadium parking lot and the Santa Ana River and is an important component of the proposed Riverwalk. She advised the property is currently owned by the County of Orange, which has agreed to sell it to the City for park use. She noted the location presents a unique opportunity to improve existing trail conditions and connect people to the natural habitat along the Santa Ana River. She reported several virtual community meetings and surveys were conducted to determine residents' desires for the park with results incorporated into the conceptual plan which includes a shaded plaza pavilion, native trees and shrubs, a children's play area fitness zones, walking paths, and interactive interpretive areas. She reported staff has submitted two grant applications from Proposition 68 for the development of this project and noted award announcements are expected this summer or fall. Ms. Larson -Cash reported the Central Library Green Space Improvement Project would create a flexible place to program events and activities for all ages. She advised Phase 1 is already completed and includes a sandbox, trike path, planting, hopscotch, a sandblasted maze on the concrete, and seating. She advised proposed Phase 2 improvements would provide a shade structure over the concrete maze and lighting. She explained this space would be used for Children's, Teen's and Adult Library programs. She reported Phase 2 improvements of $180,000 are funded by a Community Development Block Grant (CDBG) and are estimated to be completed by early 2022. Ms. Larson -Cash reported the Euclid Library Landscape improvements would create an Americans with Disabilities Act (ADA) accessible space for outdoor programming amenities and would include shade sails, lighting, and butterfly attracting landscaping. She advised this project is also funded by a Community Development Block Grant for $330,000 and is expected to be completed by early 2022. Ms. Larson -Cash reported the Oak Canyon Nature Center Improvement Project would make minor but effective upgrades to the site including ADA path of travel renovations from the parking lot, new lighting and additional seating in the amphitheater, interactive exhibits, and outdoor science City Council Minutes of May 18, 2021 Page 3 of 24 laboratories. She advised these improvements would also include the installation of six new interpretive panels located along the existing stream trail. She reported design consultants are currently developing construction documents and the City is using a $500,000 grant from the State's Outdoor Environmental Education Facilities Grant Program to install these upgrades with construction anticipated to begin in 2022. Ms. Larson -Cash reported the west side of La Palma Park needs revitalization. She advised staff has worked with surrounding community members and stakeholders over the past several years to develop a Master Plan of recreation facilities and amenities for the park. She noted the plan includes soccer fields, exercise equipment, walking paths, a playground, a new restroom building, and more. She advised the west improved area would accommodate soccer fields, special events like the Cinco de Mayo Fiesta, and everyday park use as requested by the community. She reported funds have been included in the proposed budget to develop construction documents and technical studies. She advised staff has applied for funding for construction from the Statewide Park Development Program from Proposition 68 and noted Congressman Lou Correa has identified this project for potential Federal funding. She noted the City is eagerly awaiting announcements late this summer or early fall. Ms. Larson -Cash reported the City has entered into an agreement with St. Jude Neighborhood Health Centers to build an approximately 5,000 square foot single -story neighborhood health center on the northeast portion of Ponderosa Park. She advised the proposed health center would provide comprehensive medical, dental, vision, and mental health services to residents living in the southern portion of the city. She reported the project is estimated at $4,000,000, fully funded by St. Jude, and would be completed by early fall. Ms. Larson -Cash reported Little Pine Park is a proposed pocket park located between West Bellevue Drive and the 5 freeway. She advised staff conducted various methods of virtual and socially distanced outreach to engage with neighboring residents to determine what they wanted to see at this park. She reported the resulting Master plan includes pine trees that will line the freeway, exercise equipment, a butterfly garden, picnic tables, a children's exploration area, walking paths, and turf areas. She advised staff has submitted a grant application for this project and grant announcements are anticipated this summer or fall. Ms. Larson -Cash reported staff has identified an opportunity to acquire and develop parkland at a vacant portion on the west side of Yorba Regional Park. She advised the County has expressed interest in selling the property and the site is large enough to develop much -needed soccer fields. She reported other amenities proposed for the site include parking, a play area, a picnic shelter, and exercise stations. Lastly, Ms. Larson -Cash reported the Brookhurst Teen Center project has had significant progress over the past year with construction documents submitted. She advised the project would add an approximately 735 square foot dedicated teen center to the existing community center as well as landscaping and pathway improvements. She reported the project is funded both by Community Development Block Grant and development impact fees. Public Works Director Rudy Emami reported Fire Station 12 in the Platinum Triangle has been in the planning stage for years to meet the needs of a growing population. He advised although the proposed location has changed over time, the need for a new fire station has only increased and noted the Platinum Triangle area is currently served primarily by Fire Stafions 3 and 7. He reported Fire Station 12 would be located on State College Boulevard south of Katella Avenue and is anticipated to have a significant positive impact on service delivery and response times especially as development and traffic increase around Angel Stadium. He advised the Fire Department expects to City Council Minutes of May 28, 2021 Page 4 of 24 seek City Council approval of a design -build contractor in September 2021 and noted construction would begin as soon thereafter as possible, with completion expected by 2023. Lastly, he advised Fire Station 12 would be funded by Platinum Triangle development impact fees. Mr. Emami advised there are many factors considered before a capital project is programmed and noted there are Master Plans that identify current and future needs. He explained opportunities to partner with other agencies or departments are explored and the availability of funding and opportunities to leverage local funds for grant funding is also considered. He further advised this is all done while taking community input, economic benefits, and maintenance needs into consideration. He explained only funded projects are included in the Public Works CIP with funding provided by restricted sources such as Transportation Funding. He explained the CIP is a short-range planning document for City -owned infrastructure which identifies capital expenditures, funding sources, and implementation sequencing. He advised capital assets for Public Works are in the category of wastewater and transportation with construction oversight of all capital projects and capital assets citywide. He noted the CIP helps plan, prioritize, and coordinate capital improvement projects that are essential elements of providing quality, government service and acts as an economic engine for the City. Mr. Emami reported the Neighborhood Improvement Program takes a holistic construction approach, which is designed to comprehensively address public right-of-way improvements. He advised that, although each neighborhood has slightly different needs, the work generally consists of resurfacing or sealing the asphalt pavement, removing and reconstructing damaged concrete, pruning parkway trees, removing unhealthy trees, and planting new trees. He noted new pavement markings would be painted with new street names and street signs would be installed. He advised these projects would re-establish the pavement structure, improve the ride quality and safety of the residential streets, enhance the walkability, of City sidewalks, and beautify the neighborhoods. He reported the City plans to rehabilitate the Sabina, Tory, Riverdale, and Lotus neighborhoods in the upcoming fiscal year. Mr. Emami highlighted the Sabina Neighborhood Improvement Project and advised it is located within Central Anaheim, has a population of 13,300 residents, with over 1,400 single-family homes and over 2,200 apartment units. He reported Phase 3 would begin construction in summer 2021 while Phase 4 would begin design at that time. He highlighted the Lotus Neighborhood Improvement Project, located in West Anaheim, and has a population of over 1,500 residents in 745 residential units. He advised this project would resurface over 14 acres of pavement, which is almost the size of 11 football fields. Mr. Emami reported the Arterial Street Rehabilitation Projects provides a well -maintained and efficient transportation network. He advised the rehabilitation and reconstruction of roadways throughout the City would preserve and extend the useful life of the pavement. He reported, as part of Orange County Transportation Authority (OCTA) eligibility requirements for Measure M2 funding, the City must continue to improve its network pavement condition index from the previous Pavement Management Plan. He explained it is critical the City balance the needs on arterials and local streets to ensure compliance and maintain the City's formula funding allocations. He advised funding for these projects primarily comes from Gas Tax and SBt. He highlighted the East Street Pavement Rehabilitation Project and advised a portion of this work would be performed in the City of Fullerton via a cooperative agreement and a Caltrans permit for work under the 91 Freeway. He reported the project is currently in the design phase with construction scheduled to begin this summer. Mr. Emami reported that each year the Traffic Engineering Division receives many inquiries about installing stop signs or traffic signals as a way to reduce speeding. He advised that research shows other measures are often more effective. He explained the purpose of stop signs and traffic signals is City Council Minutes of May 18, 2021 Page 5 of 24 to assign right-of-way at an intersection and not to control speeding. He reported countdown pedestrians crossing signal heads provide pedestrians and motorists with the remaining seconds available before the pedestrian phase ends and have been highly effective in improving pedestrian safety. He advised the Mid -Block Pedestrian Signal Installation Project is currently underway and construction is anticipated to be completed in fall 2021. He reported the City would install a new mid - block pedestrian signal on Western Avenue near Centralia Elementary School located in West Anaheim. He advised the project would also include ADA curb ramps, overhead lighting, re -striping the roadway, and minor utility relocations. He reported another traffic signal project is the Euclid Street and Glenoaks Avenue Improvements Project. He advised the City would install a traffic signal and curb ramp upgrades at the intersection of Euclid Street and Glenoaks Avenue and also rehabilitate the asphalt, concrete, and construct new median islands. He reported construction is anticipated to begin in spring 2022. Mr. Emami reported the Alley Sewer Improvement Projects replaces sewer pipes to address operational deficiencies, improved flow, and reduce maintenance and disruptions to residents. He advised the projects include replacing deteriorated asphalt with concrete and repairs the sidewalks, driveways, and access ramps. He highlighted a sewer project located in the alley south of North Street. He advised this project would replace a deficient 5" sanitary sewer pipe with larger 8" pipes. He noted the construction is anticipated to begin this summer and be completed in spring 2022. He reported another important sewer project is planned for the alleys east of Anaheim Boulevard and south of Wilhelmina Street. He advised the project would replace deficient undersized sewer lines with larger ones and noted construction is anticipated to begin this fall and end in spring 2022. Lastly, he reported another sewer project is on La Palma Avenue that will replace deficient 12" and 15" sewer lines with 18" pipes to address ongoing maintenance issues and capacity requirements in the area. He advised the project also includes street rehabilitation along La Palma Avenue and is currently in the design phase with construction anticipated to begin in the fall. Public Utilities General Manager Dukku Lee reported over the last year there has been an increased need for reliable power and water services as residents have been working and going to school from home. He advised last year, Anaheim Public Utilities (APU) delayed several projects in its Capital Program to reduce expenditures; however, hot weather exposed the need for continued investments in infrastructure as transformers were heavily stressed and led to dozens of outages over Labor Day weekend as temperatures reached 105" on consecutive days. Mr. Lee advised, as the economy rebounds, APU is proposing a dedicated Capital Program to target the replacement of undersized and aging transformers throughout Anaheim. He reported APU is starting with an accelerated pace of replacing 400 transformers annually using a one -touch approach to minimize disruptions from planned outages by replacing accompanying accessories and other equipment at the same time. He advised the City is also susceptible to regional outages and noted last August, the California Independent System Operator ordered rotating outages that affected much of California for the first time in nearly 20 years. He advised this was also seen in Texas earlier this year. Mr. Lee reported APU is working to ensure the City has sufficient and resilient resources. He advised, as APU adds more renewable resources to meet statewide mandates, it needs to balance sustainability, initiatives with reliable systems. He advised APU is proposing to move forward with a large-scale battery storage system that was postponed last year. He explained that while solar has helped APU meet statewide mandates for renewable energy it has pushed the peak demand from the middle of the day to late afternoon and early evening typically between 4:00 p.m. to 9:00 p.m. when solar production is tailing off. He advised the battery storage system APU is considering would store up to 50 Mega Wafts or about 10% of the system's peak demand and discharge it when needed. City Council Mlnutes of May 28, 2021 Page 6 of 24 Mr. Lee reported APU's undergrounding program continues to make a difference in Anaheim. He presented an image showing trenching along Eucalyptus Drive to install new underground conduits and cable. He advised civil work is complete and APU recently began to energize the new underground system. He noted the project was prioritized due to its proximity to a high fire -threat zone and was one of many measures included in the APU's Wildfire Mitigation Plan that was developed in conjunction with Anaheim Fire & Rescue and highlighted by the California Wildfire Safety Advisory Board as demonstrating best industry practices. He advised other projects in design include Beach Boulevard, which is awaiting Caltrans permit approvals, and Sycamore Street. He advised one of the reasons this project was identified is due to the number of metallic balloon outages on this circuit. He reported six outages have occurred from metallic balloons getting into the high voltage lines over the past 10 years. He advised other projects are underway including Santa Ana Canyon Road and Royal Oak Road which are under construction and Nutwood Street and Cerritos Avenue which is in preliminary design. He reported electrical undergrounding on Euclid Street and Orange Avenue would have both been completed but are awaiting communication companies to remove their infrastructure. Mr. Lee reported street lighting improvements have been well received by many residents and businesses across the city. He advised that while new developments are required to provide street lighting as part of their projects, several older neighborhoods have little or no lighting. He referenced Alberta Street as an example and presented a photo showing the dramatic difference before and after additional lighting was installed. He reported APU continues with the replacement of older inefficient streetlights with new LED fixtures and noted over 14,000 LEDs have been installed in the past several years, which is about two-thirds of the total stock of 21,000 streetlights. He advised APU is also identifying and replacing streetlight poles that are older and deteriorating for reliability purposes. Mr. Lee reported APU has made capital investments to rehabilitate major facilities that treat, pump, and distribute water throughout the city such as the Lenain Water Treatment Plant over the last several years. He advised recent capital work at Lenain includes replacing aging pipes, equipment, and electrical systems, making structural improvements, and expanding the plant'a capacity to treat more lower -cost imported water. He further advised APU is in construction to upgrade pumps, motors, and electrical systems at the Linda Vista Water Complex, a facility capable of serving much of Anaheim with the City's lowest -cost resource which is groundwater. He reported groundwater is not only cost-effective it also gets replenished through a variety of sources including stormwater and recycled water during drought conditions when there is limited rainfall. He explained that having access to recycled water to recharge groundwater basins is increasingly important. He reported APU has been working diligently to implement its Groundwater Treatment Program which addresses emerging regulations related to per- and poly0uoroalkyl substances (PFAS), which are synthetic chemicals manufactured in consumer and industrial applications such as nonstick pans, carpets, clothing, and firefighting foams dating back to the 1940s. He explained that while these chemicals are no longer manufactured, they have been detected in low levels throughout the United States including in the Orange County Groundwater Basin. He advised to comply with emerging regulations APU shut off many of its wells and has been working on mitigation strategies. He reported the first phase of the program would install treatment facilities at four locations, including Linda Vista, La Palma Complex, Energy Field, and Boysen Park. He thanked the Community Services Department for their collaboration on finding space to install these treatment facilities at several parks. He reported that last month City Council awarded a design -build project for the first phase and advised applicable capital and about half of the maintenance costs are reimbursable through a City Council approved agreement with the Orange County Water District. City Council Minutes of May 18, 2021 Page 7 of 24 Mr. Lee reported that since the water utility is over 140 years old continued investments to upgrade and replace pipelines have been essential to maintaining service reliability for APU's customers. He advised APU utilizes an asset management method to evaluate 750 miles of pipeline and prioritize replacements based on criteria such as age, condition, and material type in coordination with other street projects. He reported APU is using a new design -build delivery method for mid -sized projects to accelerate replacements on Indiana Street and Imperial Highway where there have been multiple main breaks. He advised APU is proposing $13,000,000 in water main and valve replacement projects citywide for the next fiscal year. He thanked the Public Works Department for their assistance in managing APU's construction projects with all of the electric and water capital projects. Lastly, he advised the goal is to improve overall service reliability and the proposed budget seeks to invest in infrastructure to enhance long-term reliability sustainably. Ms. Moreno reported staff would be back in three weeks with the first Operating Budget Workshop and noted there would be overviews on the City Budget with presentations by Police, Fire & Rescue, and Community Services. She advised a second workshop would include presentations from the balance of departments and budget adoption is scheduled for June 22, 2021. DISCUSSION: Mayor Sidhu thanked staff for their hard work in trying to get the Capital Improvement Projects funded through different sources such as Gas Tax, Grants, and Community Development Block Grants. In response to Mayor Sidhu's inquiry, Ms. Moreno explained the timing of the funding from the grants and bond revenues can vary depending on the type of grant or revenue. She advised staff has not seen any glitches in grant revenue coming in due to the pandemic and the process seems to be working normally. Mayor Sidhu expressed excitement that after 13 months of the pandemic the City's CIP is on track and he looked forward to all the improvements that were outlined. In response to Mayor Sidhu's inquiry, Mr. Lee reported APU has a 4% surcharge that is strictly for undergrounding projects and then the balance of the funding come from general rates for both electricity and water. He advised some of the projects are cash -funded but APU also utilizes bonds for capital improvements. He explained once those bonds are depleted, APU looks to either issue new bonds or it can rely on its line of credit. He advised all utility projects for electricity and water are primarily ratepayer funded, although some grants can be applied for. In response to Mayor Sidhu's inquiry, Mr. Emami reported the sewer programs are mostly funded through the rates collected through utility bills. He advised there is a prioritization system to manage the assets which have identified older parts such as old 6" sewer lines that are below -standard being upgraded now and noted they use that opportunity to look for grant opportunities to incorporate what is called Green Alleys to be able to beautify the alleyways. He advised funding is always being sought to help leverage the City's funding. In response to Mayor Pro Tem Faessel's inquiry, Ms. Larson -Cash advised all the park project planning uses the Parks Plan as the path forward. He thanked Mr. Emami and his team for making sure Anaheim's older streets are repaved and rehabilitated. He noted a substantial project is going on in District 5 in the next year and thanked Public Works for all that work. In response to Mayor Pro Tem Faessel's inquiry, Mr. Emami confirmed Fire State 12 is a copy of Fire Station 5. He explained the design being used has been the standard design reviewed for the last few fire stations. He advised the design -build contract would ensure the aesthetics of the new fire station are more in line with the urban nature of the Platinum Triangle. He further advised the rendering is not a final design but is a typical design used. City Council Minutes of May 18, 2021 Page 8 of 24 In response to Mayor Pro Tem Faessel's inquiry, Ms. Moreno advised this information would be sent to the Budget, Investment and Technology Commission for review. In response to Council Member O'Neil's inquiry, Ms. Moreno confirmed the $186,000,000 is not from the General Fund. Council Member O'Neil expressed excitement to see improvements such as ADA accessibility and interpretive signage at the Oak Canyon Nature Center. He requested to be kept abreast of the process as the interpretive signage is developed. In response to Council Member O'Neil's inquiry, Mr. Emami reported the Fairmont Bridge is part of the 91 Freeway long-range plan and noted it is in the furthest -out range, meaning 20 plus years. He advised it is currently only designed to come from the 91 Freeway to the north but not the south so the Yorba Regional Park would not be impacted at this point. Council Member O'Neil expressed excitement for the street improvements to the Riverdale neighborhood, noted residents are not part of a Homeowners Association (HOA), and inquired 'rf the City could partner with the neighborhoods to help them improve the visual aspects of the different walls, colors, and materials. Mr. Emami advised two years ago, there was a project to improve those orphaned parkways along Riverdale behind residents' homes along with landscaping and it is currently being maintained. He confirmed he has received compliments about the landscaping and drives through the area weekly. Council Member Valencia thanked staff for their work on the presentation and department teams for their work on these projects. In response to Council Member Valencia's inquiry, Mr. Lee confirmed one of the reasons for undergrounding utilities on Sycamore Street was due to six balloons causing an outage. He advised APU looks at several criteria including reliability, geographic diversity, available funding, and coordination when determining whether or not to underground utilities. He reported there is a project on Eucalyptus Drive, which was not originally in a five-year plan but was identified as wildfire mitigation because of its proximity to a wildfire threat zone so it was accelerated and awarded. He noted APU was recently awarded for the design of other projects in that high fire threat zone area from the Federal Emergency Management Agency (FEMA). He advised APU would likely accelerate those projects as well to do undergrounding to maximize the funding received from the federal government. Council Member Valencia encouraged the City to take another look at the East Street corridor as it is becoming a bypass for traffic due to improvements taking place on State College and is incurring wear and tear. He would like to see the East Street Corridor included in the next phase of undergrounding that takes place. Mr. Lee reported East Street has Southern California Edison traversing on those same poles and advised APU does not pay to underground other utilities. He advised APU is always looking for ways to underground projects and noted they had to be very creative to underground Beach Boulevard because Southern California Edison also has a presence there. He advised APU is looking into the infrastructure funding that is being pushed by the Biden Administration but noted the categories do not pertain to undergrounding necessarily and are directed towards long-term and larger -scale transmission corridors and getting renewables into different parts of urban settings. He confirmed they would be researching the infrastructure plan to see what makes sense for APU to apply for. City Council Minutes of May 18, 2021 Page 9 of 24 Council Member Moreno noted it is quite striking that all of the funding is Federal and State grant dollars the City is applying for and nothing is coming from General Fund. He advised this is an important distinction for residents because they may believe the City is investing its funds in these activities when it is in fact through the creativity of the staff. He expressed appreciation for all the directors and staff that are constantly looking for funding opportunities the City is not able to fund itself. He hoped the Biden Administration would push for the infrastructure bill and that Congress would embrace it. In response to Council Member Moreno's inquiry, Mr. Emami explained the City needs to keep up the pavement index score that is given to streets because OCTA requires the City to make that score one point better every year. He advised the reason some streets are selected over others is the coordination with API I, as they do not want to pave a street that will undergo undergrounding or water main replacement shortly thereafter. He advised APl/ is a great partner in helping Public Works be creative in how it can fund the repair of some of these streets. In reference to Council Member Valencia's earlier inquiry regarding State College Boulevard, he confirmed the County's sewer line replacement is creating more wear and tear on Fast Street and Public Works tries to make up for it by contributing more paving on State College Boulevard. He reported the City's score is 68 out of 100, which has dropped a bit due to increased costs in construction and increased investment in concrete. He advised the more the City invests in concrete, the less it puts into the pavement. He further advised another reason for the score is the City has taken a larger step in investing in Anaheim's neighborhoods and noted the City only did arterials because that is where the grant dollars were and they were able to leverage $10,000,000 for $30,000,000 of work. He advised when the City invests in its neighborhoods it does not get the same advantage of leveraging grants. He explained the neighborhoods were neglected for a long time and in the last six years, the City has made a huge investment in its neighborhoods which has hurt the pavement but needed to be done. He advised the City should have a score of 80. Council Member Moreno reported residents have complained that their street pavement was postponed and noted Mr. Lee and Mr. Emami have explained to residents in community meetings that the City has aligned itself better by postponing certain projects. He encouraged staff to highlight those facts regarding the creativity of maximizing dollars by departments working together to require the street only be dug up once. In response to Council Member Moreno's inquiry, Mr. Emami explained the City takes a long-range look ahead through the capital program to tell all outside utilities what streets are going to be paved. He advised the City looks to get their work combined with City projects. He explained a moratorium was put into place that if an outside utility company trenches the street less than three years from the time of paving the amount of paving would be extended much further than the normal standard. He reported staff is studying a trench fee that would be brought back to City Council and, if adopted, would require the utility companies to pay a certain fee per foot of trench because they have cut into City streets and the fee would allow the City to restore it. Council Member Moreno thanked staff for repaving and underground utilities in the Northeast Colony and noted it had not been rehabilitated in 40 to 60 years. He appreciated that area of the City being targeted in these next rounds of the pursuit of grants and State and Federal dollars. He encouraged residents to support the infrastructure bill because that is what will sustain what is being presented today. Council Member Diaz explained the CIP is a lot of work and never ends and noted there are many needs and only so much money. He advised the staffs job is to figure out how to spend the money in the most needed areas and explained the more APU spends on CIP and public utilities the more stable the rates become. He explained that, for example, the City replaces 400 transformers per year, City Council Minutes of May 18, 2021 Page 10 of 24 which results in fewer requests for services, fewer interruptions, and less overtime, which means ratepayer savings. Council Member Brandman thanked Ms. Moreno for her work and the fabulous reports In response to Council Member Brandman's inquiry, Mr. Emami reported Public Works is leading the construction of the Centralia project. Council Member Brandman reported that the project was being done in partnership with Buena Park when City Manager Jim Vanderpool was the City Manager of Buena Park. He thanked Mr. Vanderpool for his hard work and noted what Mr. Vanderpool facilitated with Mr. Emami and his team provided a lot of background on how he facilitates solutions. Mayor Sidhu thanked the staff for doing a fabulous job in obtaining $186,000,000 for CIP and noted none of it is coming from the General Fund. He knows staff will use the grant funds wisely and trusts them to identify projects that benefit residents. ADDITIONS/DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None CLOSED SESSION: At 4:33 P.M., Mayor Sidhu recessed to closed session for consideration of the following: 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Significant exposure to litigation pursuant to Subdivision (d)(2) Section 54956.9 of the California Government Code): One potential case (A copy of the demand against the City is included in the agenda packet and available for review by contacting the City Clerk's Office and on-line electronically with the agenda at: www. anaheim. net/councilacendas.) At 5:16 P.M., Mayor Sidhu reconvened the Anaheim City Council. Mayor Harry Sidhu and Council Members Stephen Faessel, Jose Diaz, Jordan Brandman, Jose F. Moreno, Avelino Valencia, and Trevor O'Neil (in person). INVOCATION: Council Member Trevor O'Neil FLAG SALUTE: Council Member Avelino Valencia Acceotanee of Other Recognitions (To be presented at a later date): Recognizing May 16 — 22, 2021. as National Public Works Week Public Works Director Rudy Emami accepted the proclamation for National Public Works Week, highlighting the work and dedication Public Works staff does to improve the quality of fife for Anaheim residents. He reported staff have created spaces to foster a safe and healthy work environment for City staff and the community, helped restart the economy by volunteering to support vaccination sites, supported traffic control and logistics for POD sites, and supported local non -profits to distribute thousands of meals. He advised they continue to find ways to support the community and thanked every City employee who works for the public. City Council Minutes of May 28, 2021 Page 11 of 24 Recognizing May 22, 2021, as Harvey Milk Day Recognizing June 2021, as Lesbian, Gay, Bisexual, Transgender and Queer (LGBTO) Pride Month Recognizing June 2021, as Muslim American Heritage Month Recognizing June 2021, as World Refugee Month At 5:20 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 the Disposition and Development Agreement as noticed for Joint Public Hearing Item No. 2, pertaining to properties located on South Beach Boulevard and West Lincoln Avenue, had been removed from consideration and would be re -noticed by staff for consideration at a future public hearing. PUBLIC COMMENTS (all agenda items, except public hearin City Clerk Theresa Bass reported that a total of 2 public comments were received electronically prior to 1:30 P.M. related to City Council agenda items and matters within the jurisdiction of the Anaheim City Council. [A final total of 2 public comments were received electronically and distributed to the City Council and made part of the official record]. — See Appendix. Cecil Jordan Corkern addressed security at Disneyland, the work of City Council monitoring COVID- 19, stimulus checks from the Federal government, and a discrepancy with which businesses have reopened. Paul Hyek reported Item 2-A would require someone from the City to monitor toxic sites to see what needs to be removed and how it is being done. He advised he previously worked with AEI Consultants and they were not up to code. He reported he took care of the gas station that is now a car wash on Brookhurst Street between Katella Avenue and the railroad track next to the Islamic Society and is willing to work part-time. R. Joshua Collins, Homeless Advocates for Christ, addressed homelessness and how the previous speaker, Paul Hyek, was on the housing list for 26 months and is 71 years old. He expressed concern about how long it takes for seniors to get housing in Anaheim and noted it is a sign that the priorities are not where they need to be. He noted he is thankful for the shelters that have been built thanks to the hard work of advocates and others but advised the shelters are not a permanent landing place for the homeless. He encouraged City Council to continue to push for permanent supportive housing and advised some of the homeless have spent over a year or longer in the shelters waiting to get housing. He hoped the City could transform some motels and hotels into housing and encouraged City Council to consider a separate shelter for people with mental health issues so they can receive special care. He encouraged City Council to do more for seniors, the disabled, and mentally ill people who cannot fend for themselves. Mark Richard Daniels encouraged the City Council to pass Item No. 14 and support the people in the grocery industry who have served the community and were there every day bagging groceries and stocking the shelves. He encouraged City Council to recognize Little Arabia and hoped they could City Council Minutes of May 18, 2021 Page 12 of 24 decide this was an important issue and the community needs the recognition. He addressed alleged comments made by himself online, stated he does not read blogs, and denied making any such comments against Council Member Brandman. He noted he supports the gay and lesbian lifestyle and supported the Pride Flag being flown at City Hall. He also expressed support for the Jewish community, noted he has many friends in the community who are Jewish, and would never say the things he is accused of saying. Council Member Brandman noted he did not know what Mr. Daniels was referencing but thanked him for his kind words. Matt Bell, Secretary -Treasurer of UFCW Local 324, advised they represent over 2,000 members that live and work in Anaheim. He encouraged City Council to pass Item No. 14 and give hazard pay to the workers. He advised that since the beginning of the pandemic, grocery and retail drug workers reported to work every day despite the hazards they faced. He noted that whether they worked in a union market or non -union stores such as Walmart or Target, they put their lives on the line every day to keep the residents of Anaheim fed. He reported that statistically since the beginning of the pandemic, grocery and retail drug workers have had a higher rate of COVID-19 infection than the general public. He reported 266 workers represented by UFCW 324 have contacted COVID-19 in Anaheim. He advised these workers have endured more of this deadly disease than the general public and it was time to recognize them for the sacrifice they have made for everyone in the City. He believes it was appropriate for local government to intervene and explained this type of temporary ordinance ensures that grocery companies give back to the workers that made them so profitable and levels the playing field. He advised other cities throughout California have taken this action in some form or another to pass hazard pay. He requested, as the largest city in Orange County, Anaheim follow the lead of its sister cities of Irvine, Buena Park, Santa Ana, and Costa Mesa and pass hazard pay for grocery and retail drug workers. He presented a petition signed by UFCW 324 members that work in the grocery and retail drugstores. Lucy Aguilar reported she is a homeowner of properties in District 3, of which two of them are in foreclosure due to renters taking advantage of COVID-19 and not paying rent. She reported one of the renters has left the property and noted she fears renting again because Governor Newsom enacted the eviction moratorium through September. She urged the City Council to consider good responsible homeowners and allow short-term rentals (STR). Vem Nelson recognized Edward T. Melon, husband of Dorothy Malone, who died last week and served in the Army in the Korean War. He advised he never missed a City Council meeting. He reported various cities such as Fullerton, Santa Ana, Costa Mesa, and Huntington Beach have been offering hybrid methods of public participation, videoconferencing, or live call -in for residents who cannot attend meetings in person for various reasons and questioned why Anaheim could not do the same. He read the resolution the Democratic Party of Orange County passed unanimously last month on remote participation. Kenny Williams, Executive Vice President of Communication Workers of America (CWA) Local 9510, representing AT&T, Frontier, Verizon, AT&T Mobility, Legacy T, and the Santa Ana Unified School District substitute teachers and President of the Orange County Labor Federation, thanked City Council for all they have done in terms of the vaccine through the pandemic. He advised he represents essential workers and his wife, who is immune -compromised stays at home. He explained that during the first days of the pandemic she went to a store, could not find what she needed, and began to panic. He took time from work to help her and when they arrived at the store, they saw essential workers putting basic items back on those shelves. He urged City Council to City Council Minutes of May 18, 2021 Page 13 of 24 consider how many essential workers were able to come to work because there were basic needs on the table and to say thank you at this time. Gloria Alvarado, Orange County Labor Federation Executive Director, reported they represent over 250,000 members, many of who live, work, and vote in Anaheim. She reported 15% of the membership has tested positive for COVID-19 and noted this is because they are out there risking their lives, risking their health, and continuing to support their families. She advised frontline workers have made sure that communities and families are safe and they have the food, the services, and the resources they needed including pharmacists. She highlighted the fad that many pharmacists are also now administering vaccines and saving lives by vaccinating others. She encouraged City Council to honor essential workers, highlighting the fact they stood with the communities and they s61I stand strong giving residents the services they need. She noted Anaheim is considered a hotspot and these members continued to go to work even though they realized that there are people who do not want to wear a mask. She encouraged the City Council to consider Item No. 14 and respect the fad essential workers are sacrificing their well-being for residents. Kenneth Batiste reported the Business Insider reported how billionaires got $637 billion richer during the pandemic and advised essential workers to not expect too much from City Council, as they are only interested in money. He encouraged voting the District 6 representative out of office and encouraged residents to never trust or vote for a Disneyland -funded candidate. CITY MANAGER'S UPDATE: City Manager Jim Vanderpool announced the Anaheim Public Library's Summer Reading Program "Reading Colors Your World," running from June 1 to August 6, with a variety of virtual programs, events, and prizes. He encouraged residents to sign up and for more information, visit www.anaheim.readscuared.com or download the app. He noted the program was generously funded by the Friends of Anaheim Public Library, Friends of the Canyon Hills Library, the Anaheim Public Library Foundation, and H&R Block in partnership with the Anaheim Public Library Foundation. At 5:55 P.M., Mayor Sidhu recessed the Anaheim City Council to address the Anaheim Housing Authority consent calendar. At 5:66 P.M., Mayor Sidhu reconvened the Anaheim City Council in joint session with the Anaheim Housing Authority for the purpose of a joint public hearing. JOINT PUBLIC HEARING: AGR- 2. This is a Joint Public Hearing of the Anaheim Housing Authority ("Authority") and the Anaheim 12904 City Council regarding the proposed sale and the proposed ground lease of certain real AGR- property owned by the Authority located at 100, 130, and 212 South Beach Boulevard and 12696 2970 West Lincoln Avenue, Anaheim ("Properties"). Certain parcels of the Properties are proposed to be sold by the Authority under the terms of a certain Disposition and Development Agreement between the Authority, as seller, to Greenlaw 39 Commons Beach, LLC or an affiliate thereof. Certain other parcels of the Properties are proposed to be ground leased by the Authority to Greenlaw 39 Commons Beach, LLC (or to a limited partnership of which Affordable Housing Access, Inc. is the general partner and Greenlaw 39 Commons Beach LLC or its affiliate is the administrative partner) for long-term affordable housing and the development and operation of a new 100-unit affordable rental housing project [noticed consideration of the Disposition and Development Agreement has been removed and will be City Council Minutes of May 18, 2021 Page 14 of 24 re -noticed and considered separately by the Anaheim Housing Authority at a future public hearing]. Housing Authority Action: 2-A. RESOLUTION NO. AHA-2021-002 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Executive Director of the Anaheim Housing Authority to execute and implement the Preliminary Award Letter; authorizing the Acting Executive Director to negotiate the terms of and finalize an Affordable Housing Agreement, the Ground Lease, and other implementing agreements and instruments and to implement such agreements and instruments, including authorizing the issuance of warrants; and making certain other findings in connection therewith. Approve a Local Agency Agreement with the California Department of Toxic Substances Control, in an initial estimated amount of $125,041, for oversight services of site contamination remediation; and authorize the Acting Executive Director of the Housing Authority, or designee, to execute and administer the agreement on behalf of the Authority. City Council Action: 2-B. RESOLUTION NO. 2021-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Director of Community and Economic Development to execute and implement the Preliminary Award Letter and other implementing agreements and instruments on behalf of the City in connection therewith, as and when applicable, including the issuance of warrants; and making certain other findings in connection therewith. RESOLUTION NO. 2021-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Acting Director of Community and Economic Development to submit a joint application to the Strategic Growth Council and the State of California, Housing and Community Development Department, for funding under the Affordable Housing and Sustainable Communities Program on behalf of the City of Anaheim, with Greenlaw 39 Commons Beach, LLC (or its LP Developer assignee) as co -applicant with the City (total approximate amount up to $30,000,000) Acting Community and Economic Development Director Grace Stepter reported staff was requesting the adoption of a resolution approving a Preliminary Award Letter for 39 Commons 11, an affordable housing project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, and related actions thereto. As background, she explained the Anaheim Housing Authority owns an approximately 5.6 acre site on the southeast corner of Beach Blvd. and Lincoln Avenue, acquired over several years by the Anaheim Redevelopment Agency and the Housing Authority. In 2019, Greenlaw 39 Commons Beach, LLC, owner of the 1.67-acre adjacent commercial center, approached the Authority about City Council Minutes of May 18, 2021 Page 15 of 24 partnering to develop the sites together. The development proposal would create a mixed -use, mixed -income development that would include rental apartments, for -sale townhomes, and a retail component. The affordable rental development proposed includes a five -story contemporary wrap - apartment development consisting of 100 rental units on 1.796 acres. The apartments would be 100% affordable for families with incomes that fall within the extremely low, very low, and low-income households. She noted project amenities include a rooftop deck and a multipurpose room with computers and family programming. She reported the project includes 195 parking space, as there is limited parking in the Beach Blvd. corridor and to address neighborhood concerns. Ms. Stapler continued that the larger mixed -use project would also include 134 for -sale townhouse, which would come before the Housing Authority and City Council at a later date. She stated the current priority is to implement the Preliminary Award Letter to facilitate the needed funding to secure State funding sources for the development. She noted, on April 26, 2021, the Planning Commission approved the associated land use entitlements and explained that Greenlaw proposed to finance the multi -family housing component with a combination of Affordable Housing and Sustainable Communities funding, utilizing the unique cap and trade program, much like other developments. She further explained additional funding components, including bond financing and City resources, in this instance, a 58-60 year ground lease at approximately $7,500,000. She further explained staffs request to enter into an agreement with the California Department of Toxic Substances Control, to oversee cleanup of the site to ensure it was done properly and allow the developer to be indemnified against future claims. Ms. Stapler displayed images of the proposed development and explained staff worked closely with the developer to ensure an aesthetically pleasing and high quality design. As a result of the prior work done, staff supported the development to help re -energize the Beach Blvd. corridor in conjunction with the 39 Commons project across the street. She noted there was no impact to the General Fund, as all funds were intended to come from the State. An early June application submittal deadline is what caused the bifurcation of the project so the apartment component could competitively compete for State funding. Mayor Sidhu opened the public hearing. No in -person public comments were received. One public comment related to Joint Public Hearing Item No. 02 was received electronically, which was distributed to the Housing Authority and City Council, posted to the City's website, and made part of the official record. — See Appendix Mayor Sidhu closed the public hearing DISCUSSION: Council Member O'Neil questioned the future of the existing Shell gas station on the site. Ms. Stapler explained the property is owned by the Housing Authority and leased for the gas station. Upon expiration of the lease, the property would be transferred to the developer and re - purposed into other retail components. Council Member Valencia requested Greenlaw commit to communicating effectively and efficiently with City partners throughout the process and commit to being open to local and veteran hires on the project. With the developer not present, Ms. Stepter committed to relaying the questions to Greenlaw. Council Member Moreno stated he had the same questions as Council Member Valencia. He thanked Ms. Stepter and her team for working on the project to focus on extremely low income families and thanked Greenlaw for their partnership. Ms. Stepter confirmed that at least 20 units were for extremely low income, the project would be 100% affordable, and the units would range from 30% to City Council Minutes of May 18, 2021 Page 16 of 24 60% Adjusted Median Income (AMI). Council Member Moreno also expressed his appreciation for the aesthetics and amenities, congratulated all for their work on the project, and hoped the State would come through with the funding. Council Member Brandman expressed his gratitude for the effort put into the project over the past year and looked forward to seeing both projects at that corner move forward. He appreciated the comments by Council Member Valencia and hoped Greenlaw would enter discussions with the building trades. Ms. Stapler agreed to relay the request. Council Member Diaz expressed his appreciation for the project's design, amenities, and affordability to help bring more change and action to Beach Blvd. Mayor Pro Tem Faessel thanked staff and the developer for the project, congratulated the team for their great work, and hoped to break ground quickly. Mayor Sidhu expressed his appreciation to his colleagues, staff, and the developer for helping address Beach Blvd. and helping the community via affordable housing. Housing Authority Action: MOTION: Vice Chairman Faessel moved to approve RESOLUTION NO. AHA-2021-002 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Executive Director of the Anaheim Housing Authority to execute and implement the Preliminary Award Letter; authorizing the Acting Executive Director to negotiate the terms of and finalize an Affordable Housing Agreement, the Ground Lease, and other implementing agreements and instruments and to implement such agreements and instruments, including authorizing the issuance of warrants; and making certain other findings in connection therewith; and approve a Local Agency Agreement with the California Department of Toxic Substances Control, in an initial estimated amount of $125,041, for oversight services of site contamination remediation; and authorize the Acting Executive Director of the Housing Authority, or designee, to execute and administer the agreement on behalf of the Authority, seconded by Authority Member Diaz. ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. City Council Action: MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2021-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Director of Community and Economic Development to execute and implement the Preliminary Award Letter and other implementing agreements and instruments on behalf of the City in connection therewith, as and when applicable, including the issuance of warrants; and making certain other findings in connection therewith; and RESOLUTION NO. 2021-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Acting Director of Community and Economic Development to submit a joint application to the Strategic Growth Council and the State of California, Housing and Community Development Department, for funding under the Affordable Housing and Sustainable Communities Program on behalf of the City of Anaheim, with Greenlaw 39 Commons Beach, LLC (or its LP Developer assignee) as co -applicant with the City (total approximate amount up to $30,000,000), seconded by Vice Chair Faessel. ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and City Council Minutes of May 18, 2021 Page 17 of 24 Council Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. At 6:16 P.M., Mayor Sidhu adjourned the Anaheim Housing Authority. CONSENT CALENDAR: At 6:16 P.M., the consent calendar was considered. MOTION: Council Member Diaz moved to waive reading of all ordinances and resolutions and adopt 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 Valencia. ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried D180 3. Acoept the lowest responsive bid from Merchants Landscape Services, in the amount of $615,600 plus a 20% contingency, to provide landscape maintenance services covering East - Center, West -Center, and West City areas of the City for one year with up to four one-year optional renewals; and authorize the Purchasing Agent to exercise the renewal options in accordance with Bid #9512. D180 4. Accept the bid from Los Angeles Truck Centers, LLC, in the amount of $34,140.39 plus applicable tax and a 20% contingency, to provide Freightliner truck parts on an as -needed basis for the Public Works Fleet Division 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 #9521. D180 5. Accept the bids of Polydyne, Inc. and Northstar Chemical, Inc., in the respective amounts of $30,506.40 and $180,510.00 plus applicable tax and a 20% contngency, for the purchase of liquid alum and coagulant aid polymer chemicals per City approved specifications for use in the water treatment process at the Lenain Filtration Plant 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 #9506. AGR- 6. Waive the sealed bidding requirement of Council Policy 4.0 and approve an agreement with 12698 CalAmp Wireless Networks Corporation, in an amount not to exceed $75,400, for the lease of an Automatic Vehicle Location solution for the Public Works Department for a two year period and authorize the Purchasing Agent to execute the agreement and other necessary documents. AGR- 7. Approve the Electrical Utility Agreement with Western Events, Inc. dba Western Event Service 12697 to provide various temporary electrical services, on a non-exclusive basis, to persons at the Anaheim Convention Center who require such services in connection with temporary events for a one-year term, with one additional one-year extension term at the City's sole option; which will result in revenue commissions payable to the City, which will be used to support Convention Center operations, in the amount of 25% of the contractor's gross billings for all labor and 35% of the contractor's gross billings for all other event related electrical services performed at the Convention Center; and authorize the Executive Director of the Convention, Sports & Entertainment Department to execute any other related documents, take the necessary actions to implement and administer the agreement, and execute any optional renewals. City Council Minutes of May 18, 2021 Page 18 of 24 AGR- 8. Waive Council Policy 4.1 and approve the Professional Services Agreement with Prehospital 12699 Med, LLC (Dr. Robert Kalzer) for the services of a physician supervisor to Anaheim Fire & Rescue, in an amount not to exceed $41,000, for a one year term with three one-year optional extension terns on the same terns and conditions; authorize the City Manager to execute the agreement; and authorize the Fire Chief to take the necessary actions to implement and administer the agreement and execute any optional extensions. AGR- 9. Approve the First Amendment to Agreement with the Orange County Sanitation District for Construction of Water Facilities in Conjunction with the State College Boulevard Sewer 10477.1 Project to increase the reimbursement amount by an additional $513,439 for a total amount of $1,813,439; and authorize the Public Utilities General Manager, or designee, to execute the amendment and any related documents and to take the necessary actions to implement and administer the amended agreement. AGR- 10. Approve the First Amendment to the Subdivision Agreement of Tract No. 16440 and a 10563.1 Subordination Agreement, for property located approximately 1,400 feet south of the intersection of Santa Ana Canyon Road and future Deer Canyon Road, both with Stonegate Anaheim I, LLC; and authorize the Director of Public Works to execute the agreements and to take the necessary actions to implement the agreements. A203 11. RESOLUTION NO. 2021-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM making application to and requesting the Orange County Local Agency Formation Commission to take proceedings pursuant to The Cortese -Knox -Hertzberg Local Government Reorganization Act of 2000 for the City of Anaheim to annex approximately 0.35 acres of property within the City of Orange's boundary and sphere of influence and file an application for Reorganization No. RO 21-04 and determining said actions are exempt from the California Environmental Quality Act pursuant to Section 15301 (Class 1, Existing Facilities). D175 12. RESOLUTION NO. 2021-047 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM adopting the FY 2021-22 Project List for the Road Repair and Accountability Act of 2017 (to be submitted to the California Transportation Commission for eligibility to receive Road Maintenance and Rehabilitation Account funds in the estimated amount of $7,023,170). T106 13. RESOLUTION NO. 2021-048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM initiating proceedings for the annual levy of assessments in, and accepting an Assessment Engineer's Report for, the Anaheim Resort Maintenance District. RESOLUTION NO. 2021-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to provide for an annual levy and collection of assessments in the Anaheim Resort Maintenance District, and setting a time and place for public hearing thereon (public hearing scheduled for June 22, 2021). END OF CONSENT CALENDAR: D116 14. ORDINANCE NO. (ADOPTION) AN UNCODIFIED URGENCY M142 ORDINANCE OF THE CITY OF ANAHEIM establishing temporary premium pay for grocery workers and declaring the ordinance to be an emergency measure to take effect immediately upon adoption [includes determination that the ordinance is exempt from the requirements of the California Environmental Quality Act as it is not a "project" and has no potential to result in City Council Minutes of May 18, 2021 Page 19 of 24 a direct or reasonably foreseeable indirect physical change to the environment and because there is no possibility that this ordinance or its implementation would have a significant negative effect on the environment]. (A copy of the full text of the proposed urgency ordinance is available for review in the Office of the City Clerk and electronically with the agenda at hfto7//www.anaheim.neVeouncila.gendas). or alternatively., ORDINANCE NO. (INTRODUCTION) AN UNCODIFIED ORDINANCE OF THE CITY OF ANAHEIM establishing temporary premium pay for grocery workers adoption [includes determination that the ordinance is exempt from the requirements of the California Environmental Quality Act as it is not a "project" and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment and because there is no possibility that this ordinance or its implementation would have a significant negative effect on the environment]. Assistant City Manager Greg Garcia reported the item is the consideration of an ordinance that would seek to require local grocery stores whose owners or parent companies have 50 or more national retail establishments to provide hazard pay of an additional $3 per hour to their frontline employees for 60 days. He advised this is agendized as both an urgency ordinance, which would become effective immediately, and as a traditional ordinance which would require a second reading for approval at the May 11, 2021 City Council meeting. Mr. Garcia reported Council Member Moreno requested an urgency ordinance and a traditional ordinance be brought back for consideration. He advised that over the past several months and throughout COVID-19, several jurisdictions have implemented ordinances that seek to provide hazard pay benefits. He noted at the last meeting staff reported that there were over 25 ordinances statewide and staff is aware of ordinances in the neighboring cities of Santa Ana, Irvine, Costa Mesa, and Buena Park. He explained the ordinances vary by jurisdiction, but the basic elements include the scope of coverage, which employers are covered, the amount of required hazard pay, meaning the additional hourly wages, and the duration of the ordinance. Mr. Garcia advised staff has prepared both an urgency ordinance and a traditional ordinance for City Council's consideration. He reported the new premium pay ordinance would apply to retail grocery establishments. He clarified retail establishments per this ordinance means that the establishment: devotes 70% or more of its sales floor area to retailing a general range of food products, which may be fresh, packaged, or receive 70% or more revenue from retailing a general range of food products; or has more than 85,000 square feet and devotes 10% or more of its sales floor area to the sale of merchandise that is non-taxable under the Revenue Code including retail establishments with multiple tenants, so long as consumer goods and non-taxable items are sold under the same roof with shared checkout stands, entrances, and exits; or is a retail pharmacy that sells a variety of prescription and non-prescription medicines as well as any combination of miscellaneous items including but not limited to sundries, dry foods, packaged foods, beverages, fresh produce, meats, deli products, dairy products, canned foods, and prepared foods. Mr. Garcia explained the ordinance defines a covered employer as any retail establishment that is located in the City whose owner or parent company owns and operates 50 or more retail establishments nationally. He advised the ordinance also sets the premium pay amount at $3 per hour and is proposed to stay in effect for 60-days. He explained if the item becomes an urgency ordinance, it requires a four -fifths vote of the City Council and if passed would be effective May 18 through July 16, 2021. He advised if it passed as a traditional ordinance, it would require a simple City Council Minutes of May 18, 2021 Page 20 of 24 majority, but there would also be a required second reading at the next scheduled meeting on June 8 and would be effective 30 days thereafter, which would mean it would be in effect from July 7 through September 4, 2021. DISCUSSION: Council Member Moreno expressed appreciation for the community members in attendance, for those who have called him asking him to consider introducing the item, and friends in the labor community representing thousands of workers including non -union workers. He advised grocery, drug, and retail essential workers were asked by the City, the County, consumers, and the nation to put themselves on the front lines when everyone while everyone else was being asked to stay home. He advised City Council has heard compelling testimony from workers themselves of the risks they take by working. He reported less than half of Orange County residents are currently fully vaccinated. He noted lower -income residents and residents of color are currently vaccinated at lower rates and have traditionally worked in these types of jobs. Council Member Moreno reported the Brookings Institute study shows the top retail companies earned on average an extra $16.7 billion in profit in 2020 compared to 2019. He advised online grocery sales reached a new peak of $9.3 billion in January 2021, surpassing the previous high of $8.8 billion in June 2020. He noted these companies are reaping in the profits and have increased the pay of top officials during the pandemic. He believed the City should recognize the physical and hazard these workers put themselves under. He advised when wage earners get an increase in wages, they spend their money locally so the hazard pay would come right back to the City's economy. He noted the ordinance would not affect small businesses and thanked Council Member Valencia for providing the framework as he was struggling to figure out the best way to accomplish the hazard pay. He advised it would affect retailers whose company owns 50 or more retail establishments nationwide and ensures those who have profited invest in their workers and reward them for working under hazardous conditions. Council Member Moreno reported, on June 15, 2021, pandemic restrictions would be lifted and residents were receiving a mixed message from the Centers for Disease Control that they no longer need to wear masks. He advised essential workers would continue to face a risk for COVID. He reported other cities have recognized employees by adopting hazard pay. He presented a map of Orange County fully vaccinated residents by zip codes and noted the flatlands of Anaheim are the least vaccinated in the County. MOTION: Council Member Moreno moved to adopt AN UNCODIFIED URGENCY ORDINANCE OF THE CITY OF ANAHEIM establishing temporary premium pay for grocery workers and declaring the ordinance to be an emergency measure to take effect immediately upon adoption, seconded by Council Member Valencia. DISCUSSION: Council Member Valencia thanked Council Member Moreno for bringing the ordinance forward and including the input he provided. He understands the topic is a complicated one but believed the ordinance supports grocery, retail, and pharmacy workers while being sensitive to the unique needs of Anaheim's small, mid -sized, and independent businesses. He noted the ordinance also takes into account the current COVID dynamics the City is facing. He encouraged City Council to support grocery, retail, and pharmacy workers. Councilor Member O'Neil reported the City Council discussed the issue at length at the last meeting and the majority of City Council expressed opposition to an ordinance like this. He apologized to staff for working on a task that he believed had no chance of being adopted when there are so many other important issues to deal with in the City and he apologized to the public that some members of the City Council chose to waste taxpayer money with this exercise. City Council Minutes of May 18, 2021 Page 21 of 24 SUBSIDIARY MOTION: Council Member O'Neil moved to lay Item No. 14 on the table, seconded by Council Member Diaz. DISCUSSION: Council Member Moreno requested a moment to explain his vote. Mayor Sidhu advised the motion was not debatable and denied Council Member Moreno's request. In response to Council Member Moreno's inquiry, City Attorney Robert Fabela clarified explaining a vote is allowed after a discussion and not on a non -discussion item so technically it was not permitted unless the Chair decided to allow it. SUBSIDIARY MOTION: Council Member O'Neil moved to lay Item No. 14 on the table, seconded by Council Member Diaz. ROLL CALL VOTE: AYES - 4 (Mayor Sidhu and Council Members Faessel, Diaz, and O'Neil); NOES — 3 (Council Members Brandman, Moreno, and Valencia). Motion carried; item tabled. PUBLIC HEARING: B130 15. This is a public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended, to consider the issuance of bonds pursuant to a plan of finance by California Statewide Communities Development Authority in an aggregate principal amount not to exceed $450,000,000 for the purpose of financing the acquisition, construction, equipping, improvement, renovation, rehabilitation, and/or remodeling of senior living and related facilities and certain other matters relating thereto, including Walnut Village generally located at 891 S. Walnut Street, Anaheim, CA 92802, in an amount not to exceed $20,000,000. RESOLUTION NO. 2021-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the issuance of bonds pursuant to a plan of finance by California Statewide Communities Development Authority in an aggregate principal amount not to exceed $450,000,000, for the purpose of financing the acquisition, construction, equipping, improvement, renovation, rehabilitation and/or remodeling of senior living and related facilities and certain other matters relating thereto. Finance Director Debbie Moreno reported the California Statewide Communities Development Authority (CSCDA) has requested the City hold a Tax and Equity Fiscal Responsibility Act (TEFRA) hearing on behalf of Front Porch Communities and Services as required by the Internal Revenue Code in order to issue tax-exempt bonds. She advised this TEFRA hearing is an opportunity for members of the community to speak in favor of or against the use of tax-exempt bonds for $20,000,000 for financing improvements at Walnut Village, a senior living community owned and operated by Front Porch Communities and Services located in Anaheim. She reported this is a kind of financing where the bonds are issued as a limited obligation of the California Statewide Communities Development Authority not the City and payable solely on the revenues and receipts pledged by Front Porch Communities and Services. Mayor Sidhu opened the public hearing. No public comments were received in person or electronically. DISCUSSION: In response to Council Member O'Neil's inquiry, Ms. Moreno clarified that various qualifying projects or entities can qualify for tax-exempt financing that can only be undertaken by a City Council Minutes of May 18, 2021 Page 22 of 24 government entity, which is the CSCDA. She advised that the internal Revenue Code requires there be a public hearing in the jurisdiction where the projects are located. In response to Council Member O'Neil's inquiry, James Hamill reported Front Porch Communities and Services is a 503(c) organization and advised any 503(c) is eligible for capital improvement projects or refinancing and noted this would be refinancing and some capital improvements. Council Member Moreno reported the City Council approved a for -profit agency for municipal bonding at the last City Council meeting. Ms. Moreno confirmed Republic Services' municipal bonds were approved and advised it is the nature of the project that qualified them to be financed by municipal bonds and they are fully responsible for the repayment. She confirmed the City is in no way responsible for repayment. Council Member Moreno addressed the questioning of a non-profit wanting financing but not questioning when a for -profit entity sought support. He expressed support for the item. Council Member O'Neil reported he approved the bonds for Republic Services because it provided a benefit to the residents of the City and he did not see the same nexus with a benefit to residents here other than those who pay to reside at the facility. He advised if this is the way the Internal Revenue Code is written, they are entitled to bond funding, and there is no liability or risk for the City, then he was fine with it. Mayor Sidhu closed the public hearing MOTION: Mayor Pro Tem Faessel moved to approve RESOLUTION NO. 2021-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the issuance of bonds pursuant to a plan of finance by California Statewide Communities Development Authority in an aggregate principal amount not to exceed $450,000,000, for the purpose of financing the acquisition, construction, equipping, improvement, renovation, rehabilitation and/or remodeling of senior living and related facilities and certain other matters relating thereto, seconded by Council Member Diaz. ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. REPORT ON CLOSED SESSION ACTIONS: None PUBLIC COMMENTS fnonaoenda Hems): None COUNCIL COMMUNICATIONS/AGENDA REQUESTS Council Member Valencia reported this attendance at the grand openings of Maxwell Dog Park and the Anaheim Family YMCA community complex and noted how the amenities would benefit the community. He acknowledged Grace Stepter and Andy Nogal for their assistance in mitigating resident challenges at the Hermosa Village neighborhood. He announced a fundraiser for Katella High School Football on Friday and Saturday at El Ranchito Restaurant on State College Boulevard. He thanked the Anaheim Police Department for handling an incident at the Ponderosa Community Center and asked everyone to continue to do their part to keep Anaheim safe. Council Member Diaz stated it had been an exciting week with the groundbreaking ceremony at Beach Blvd. and Lincoln Ave. for 39 Commons and the grand opening of Maxwell Dog Park. He acknowledged homeless and criminal activity issues at Beach Blvd. and Ball Rd. and assured his constituents that the Police Department and City Manager's office were working hard on this area. City Council Minutes of May 18, 2021 Page 23 of 24 He opposed the State releasing 76,000 inmates early, stating it would lead to increased crime, and urged his constituents to call the governor and their state representatives to oppose early release. Council Member Moreno shared his thoughts about the tabling of Item No. 14. He shared COVID statistics and asked everyone to continue wearing masks and keeping their distance to protect themselves. He thanked Police Chief Jorge Cisneros and the Police Department for meeting with residents to discuss speed racing on the streets and how to work together, noting calls regarding street racing had doubled or tripled during the pandemic. He thanked the staff for their responsiveness to resident and community concerns. He thanked Grace Stepter and Kevin Clausen for a meeting with downtown businesses to discuss expansion and making permanent outdoor dining in the downtown area and he hoped that could move forward citywide. He stated there was a planned effort for public comment to support designating Little Arabia but the effort switched to praying for the families of Palestine, and he requested the meeting adjourn in honor of the children and families of Palestine and the surrounding region. Mayor Pro Tem Faessel requested the meeting also adjourn in memory of long-time Anaheim resident, Edward T. Malone. He congratulated Brenda Carrion, a 21-year City employee, for her promotion to Fire Dispatch Operations Manager of the Metro Cities Fire Authority. He also congratulated Adrian Prieto, Anaheim Union High School District HVAC Technician, for being a finalist for the Orange County Department of Education 2021 Classified School Employees of the Year, as well as acknowledging other staff nominated by the Anaheim Elementary School District and Anaheim Union High School District: Jorge Camarillo, Rosa Fisher, Natalia Gonzalez, Rosa Nunez, Maria Perez Gomez, Hall Hood, and Andrea Rivera-Navarrete. He noted his attendance at the 39 Commons groundbreaking, Maxwell Dog Park opening, and Anaheim YMCA ribbon -cutting. He shared a photograph of the Oelkers family which visited an electric facility and shared historic test equipment honoring their family member and long-time Anaheim Public Utilities employee, George Oelkers. He noted his participation with the City Manager in a virtual meeting with Be Well OC, and requested the City Manager review options for how the City and Police Department can better deal with mental health issues, potentially by partnering with Be Well OC in addition to the Community Care Response Team. Council Member O'Neil addressed the discussion of an item that had already been decided upon Council Member Brandman noted he would be attending events going forward. Mayor Sidhu announced upcoming neighborhood vaccination clinics, including one on May 22 at the Downtown Anaheim Community Center in partnership with Governor Newsom's office and UCI Health. He noted the clinic would run from 9:00 A.M. to 1:00 P.M., appointments and walk-up services were available, and the POzer vaccine would be administered to those age 12 and older. More information is available at www.anaheim.net/vaccines. He announced a partnership with the City of Hope for a blood drive at the East Anaheim Community Center on May 23 from 9:00 A.M. to 3:00 P.M. Appointments can be made at www.idonatebloodforhope.oro or by calling 626-218-7171. He asked all to honor and remember the sacrifices of fallen heroes on Memorial Day and explained the governor has requested the use of masks indoors until June 15 to continue to protect yourselves and others. City Council Minutes of May 18, 2021 Page 24 of 24 ADJOURNMENT: At 6:58 P.M., Mayor Sidhu adjourned the City Council meeting in memory of Edward T. Melons and the innocent victims of the Israel/Palestine conflict. Res ectfully submitted, ere a Bass, CMC City erk Jennifer L. Hall From: Cynthia Guerra <cynthiag@ken nedycommission.org> Sent: Tuesday, May 18, 2021 5:23 PM To: City Clerk Cc: Public Comment; Cesar C; paul.mcdougall@hcd.ca.gov; Megan.Kirkeby@hcd.ca.gov Subject: Letter re: City Council Agenda Items 2 (5.18.2021) Attachments: Ltr_Anaheim_ City Council -Housing Authority -Item 2_5.18.2021.pdf Hi, Please find the attached letter on behalf of the Kennedy Commission addressing the following item on today's Anaheim City Council meeting agenda (5.18.2021): • Item 2: This is a Joint Public Hearing of the Anaheim Housing Authority ("Authority") and the Anaheim City Council regarding the proposed sale and the proposed ground lease of certain real property owned by the Authority located at 100, 130, and 212 South Beach Boulevard and 2970 West Lincoln Avenue, Anaheim ("Properties"). Certain parcels of the Properties are proposed to be sold by the Authority under the terms of a certain Disposition and Development Agreement between the Authority, as seller, to Greenlaw 39 Commons Beach, LLC or an affiliate thereof. Certain other parcels of the Properties are proposed to be ground leased by the Authority to Greenlaw 39 Commons Beach, LLC (or to a limited partnership of which Affordable Housing Access, Inc. is the general partner and Greenlaw 39 Commons Beach LLC or its affiliate is the administrative partner) for long-term affordable housing and the development and operation of a new 100-unit affordable rental housing project [noticed consideration of the Disposition and Development Agreement has been removed and will be re - noticed and considered separately by the Anaheim Housing Authority at a future public hearing]. Please confirm receipt of this email and let me know if you have any questions. Thank you, Cynthia Guerra Cynthia Guerra The Kennedy Commission Research and Policy Analyst Pronouns: She/Her/Ella May 18, 2021 www.kennedycoininission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Mayor Harry Sidhu and City Council Members 949 250 0909 City of Anaheim 200 S. Anaheim Boulevard Anaheim, CA 92805 RE: Item 2 — Regarding the 39 Commons II affordable housing project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC Dear Mayor Harry Sidhu and Council Members: The Kennedy Commission (the Commission), a broad -based coalition of residents and community organizations, advocates for the production of homes affordable for families earning less than $27,000 annually in Orange County. Formed in 2001, the Commission has successfully partnered and worked with Orange County jurisdictions to create effective housing and land -use policies that have led to the new construction of homes affordable to lower -income working families. The Commission urges the Council to require that Greenlaw 39 Commons Beach, LLC increase the number of units in the proposed development dedicated to affordable housing before approving the proposed development. At minimum the City should ask for 200 units that are deed -restricted at the extremely low and a very low income levels and at least 3 acres of the City -owned land be dedicated to affordable housing. Under the current proposal, Greenlaw would provide 1.796 acres of affordable housing in exchange for 5.474 acres of city -owned land that will be developed into market -rate housing and retail.' This is not a fair trade. The City should NOT be giving away its priced land resources to projects that will not meet the needs of the community. Given the City's inability to meet its Regional Housing Needs Assessment allocation (RHNA) at the lower income levels during the current Housing Element Planning Period (2014-2021) and over production at the above moderate income level, the City needs to prioritize the use of all City -owned sites for affordable housing. For the 2014-2021 Housing Element planning period, the City has a RHNA of 1,256 very low- and 907 low-income households. To -date, the City has built 308 or 25% of the 1,256 very low-income units and 160 or 18% of the 907 low-income units.2 However, for the above moderate -income units, the City outperformed and exceeded the RHNA by constructing 7,644 or 306% of the 2,501 above moderate -income RHNA.3 The City has a remaining RHNA need of 1,695 lower income homes for the current planning period. The 100 units of affordable housing the Greenlaw development proposes are not sufficient to meet the affordable housing deficiency the City is experiencing.4 The need to prioritize the production of affordable housing is even more urgent in light of the City's new RHNA allocations for the 2021-2029 Housing Element planning period. The City's total RHNA allocation for the very low and low income level for the upcoming planning period are 3,767 and 2,397, respectively.5 That is a total of 6,164 lower income homes, which is almost three times 'Anaheim City Council Staff report for Item 2a, page 2, May 18, 2021. 2 City of Anaheim's 2020 Annual Housing Element Progress Report, March 22, 2021. s City of Anaheim's 2020 Annual Housing Element Progress Report, March 22, 2021. ' Anaheim City Council Staff report for Item 2a, page 2, May 18, 2021. "SCAG 6th Cycle Final RHNA Allocation Plan," March 4, 2021. https:Hscaa.ca.aov/sites/main/files/file-attachments/6th-cycle-rhna-proposed-final- allocation-plan.pdt? 1614911196 May 18, 2021 Page 2 of 2 larger than the previous lower income RHNA allocation. The City's history over -producing above moderate housing and poor performance producing lower income housing is an indication that the City needs to focus on prioritizing affordable housing. One strategy the City can use to meet its lower income housing need is to implement stronger affordable housing requirements on City - owned land, such as the City's 5.6 acres that are being considered for the Greenlaw project. Affordable homes are urgently needed for lower income residents given the increasing cost of housing in Orange County. A resident must earn at least $42.62 per hour to afford a two -bedroom apartment at a fair market rent.6 Based on this figure, the approximate annual income a resident must have to afford housing in Orange County is $81,830.40. This income is unrealistic for lower income families in Anaheim. According to the California Housing and Community Development Department, the County's annual median income for a family of four at the extremely low income level is $40,350 and $67,250 at the very low income level.? The median income for Anaheim residents in 2018 was $65,313.8 Based on these figures, it is clear that many Anaheim residents are extremely low and very low income and cannot afford market -rate housing in Orange County. The City must not give away limited City -owned land for the production of market -rate housing and should, instead, prioritize this valuable resource for affordable housing. We look forward to working with the City of Anaheim to encourage effective housing policies that will help create balanced housing development and create much -needed affordable housing in our local communities. If you have any questions, please feel free to contact me at (949) 250-0909 or cesarcLkennedycommission.org. Sincerely, Cesar Covarrubias Executive Director cc: Ms. Megan Kirkeby, Deputy Director, Housing Policy Development, CA HCD Mr. Paul McDougall, Housing Manager, CA HCD 6 Out of Reach 2020- The High Cost of Housing, National Low Income Housing Coalition, p.17, 2021. ' California Department of Housing and Community Development "State Income Limits for 2020," p. 9, April 26, 2021. s SCAG, "Profile of the City of Anaheim," page 11, May 2019. Public Comment From: Jennifer Ward <jward@ocbc.org> Sent: Friday, May 14, 2021 1:15 PM To: Public Comment Subject: 5/18/21 - Item 14 Attachments: Hazard Pay Proposal_OCBC Oppose_Anaheim.pdf Good Afternoon, OCBC respectfully submits the attached letter in opposition to the City Council's proposed premium pay ordinance. Thank you, JJ e ffe I l"DaIId Sr. Vice President of Advocacy and Government Affairs Orange County Business Council 2 Park Plaza, Suite 100 1 Irvine, CA 92614 C: 1 0: 949.794.7215 1 jward@oc.,bc .org 0, K ,P '/° nn E 00 1 Ll E N T,,,/,,(' 4 0 { p l E 11; rfA C 0 1110 I L rf4f. f EA04N6 V 01 CE OF R1.151 N E ' wwwe _ e_ ag and www.1l.ocationOC.com 1 BUSINESS COUNCIL 2 Park Plaza, Suite 100 ( Irvine, CA 926141 P 949.476.2242 ( F 949.476.0443 ( www.ocbc.org May 14, 2021 The Honorable Harry S. Sidhu Mayor City of Anaheim 200 S Anaheim Boulevard, 7th Floor Anaheim, CA 92805 RE: Premium Pay for Grocery Workers — OPPOSE Dear Mayor Sidhu and Members of the City Council, Orange County Business Council (OCBC), the leading voice of business in Orange County, is a strong advocate for balancing support for workers with relief for businesses also reeling from the pandemic. A premium pay ordinance for grocery workers will impose financial harm on employers at the worst possible time, while also unintentionally damaging workers and ultimately consumers and residents. OCBC expresses our opposition to a local mandate requiring premium pay for any workers and asks the City Council to consider the full economic impacts of such a mandate. Local grocery stores, retailers and other essential employers are committed to paying competitive wages and benefits to their employees. Since the start of the COVID-19 pandemic, they have invested significantly in infrastructure and enhanced safety protocols to protect frontline essential workers and shoppers. They have also provided incentive pay, bonuses and additional health benefits. According to an economic study released by the California Grocers Association, up to an additional $5/hour increase in pay could raise grocery prices by about $400 annually for the typical family of four at the worst possible time. A hazard pay ordinance could also harm workers, rather than help them. The study concluded if grocers must offset savings in operational costs, they would need to reduce work hours by 24 percent across the board. Higher costs could even force employers to shutter store locations. Furthermore, higher costs will ultimately be borne by consumers and community members in the form of increased prices, at a time when many families and residents are already economically burdened. Orange County has made significant strides in reducing COVID-19 cases and vaccinating more and more people, reaching the least -restrictive yellow tier thresholds. Additionally, the Governor just released a record -high budget spending proposal with significant economic relief bolstered by the State's unprecedented revenue windfall. Now is not the time for local government to be mandating premium pay requirements to be paid for by local employers. The City of Tustin recognized the pitfalls of this proposal; OCBC hopes the City of Anaheim will join them in rejecting a premium pay measure. For these reasons, OCBC opposes a premium pay ordinance and strongly urges the Council to reevaluate this impactful policy. Sincerely, Jennifer Ward Senior Vice President of Advocacy and Government Affairs THE LEADING VOICE OF BUSINESS IN ORANGE COUNTY Jennifer L. Hall Subject: FW: Grocery Outlet of Anaheim Hazard Pay Attachments: Anaheim City Counsel re Hazard Pay-5.12.21.docx Importance: High From: Jose & Sandra Valenzuela Sent: Wednesday, May 12, 2021 1:24 PM To: Jose Diaz <JoDiaz@anaheim.net> Cc: Harry Sidhu (Mayor) <HSidhu@anaheim.net>; Stephen Faessel <SFaessel@anaheim.net>; sbrandman@anaheim. net <sbrandman@anaheim.net> Jose Moreno <JMoreno@anaheim.net>; Avelino Valencia <AValencia@anaheim.net>; Trevor O'Neil <TONeil@anaheim.net> Subject: Grocery Outlet of Anaheim Hazard Pay n1i':ase & Saviiidra Valenzuela I f.nor::cer) Ouflllet, A.un:::heu li'lu CA To: Anaheim City Counsel Jose Diaz, Counsel Member, District 1 200 S. Anaheim Blvd, Anaheim CA 92805 jodiaz@anaheim.net Dear Councilman Diaz: We are the independent operators of the Grocery Outlet Bargain Market located at 3430 West Lincoln Avenue, Anaheim, CA 92801, where our store has proudly served our local community in West Anaheim for nearly 2 years. We are writing regarding the proposed Anaheim hazard pay ordinance. The health and safety of our employees and customers are our top priority and concern. Throughout this pandemic, we have implemented safety and cleaning protocols in our store, working night and day and spending significant dollars for cleaning and sanitation in order to safeguard our employees and shoppers, stay open and serve our community. Throughout this pandemic, we have paid extra attention to the personal welfare of our employees, essential workers, by offering extra days off when requested, provided small bonuses to all associates to help our team during these difficult times within our financial limits. My wife and I have paid thousands of dollars in COVID leave over the last 12 months to any associate who has requested or needed the benefits and we are happy to report we have not had an active Covid case in the last several months. Were our store subject to this ordinance, however, the mandate that we pay an additional $3 to $5 per hour hazard pay to our employees would threaten our financial viability. Were we forced to close, the low-income families who depend on us would lose an affordable option for their groceries. The Anaheim Grocery Outlet is a local, independently -owned discount grocery store. While we operate under a license from Grocery Outlet, Inc. permitting us to use the Grocery Outlet brand, we are a completely separate business entity. Grocery Outlet Inc. has no financial or other ownership interest in us. No other business or person, besides my Wife Sandra Valenzuela and I, own our business. We, in turn, have absolutely no other ownership or financial interest in any other business. Sandra Valenzuela and I operate the store with the help of our 18 employees. Our staff are OUR employees, no one else's. No one else hires, trains or directs them. We manage and cover payroll out of our own business revenues. Our employees are not employees of Grocery Outlet. Grocery Outlet does not fund any of our operating expense or payroll costs. If this ordinance were to apply to us, the $5/hour hazard pay would increase our labor costs by approximately $8,000 per month when you consider the wage increase, additional payroll tax, increased worker's compensation costs, and increase in overtime and vacation and sick pay. We could not afford to remain in business. The city council may be under the impression that all of grocery businesses in Anaheim are owned by large companies with the financial means to absorb a $5/hour hazard pay hike. This is not the case. Please consider the plight of the independent grocer and clarify in the final language for this ordinance that it does not apply to a grocery business owned by an independent operator of a single location. Sincerely, Jose A Valenzuela and Sandra F Valenzuela Date Independent Owner Operators of Grocery Outlet of Anaheim. CC' Anaheim City Council hsidhu@anaheim.net sfaessel@anaheim.net jbrandman@anaheim.net jmoreno@anaheim.net avalencia@anaheim.net toneil@anaheim.net jodiaz@anaheim.net