03/26/2024ANAHEIM CITY COUNCIL
REGULAR MEETING OF MARCH 26, 2024
The regular meeting of March 26, 2024 was called to order at 3:03 p.m. in the Council Chamber
of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and
related materials were duly posted on March 21, 2024.
MEMBERS PRESENT:
Mayor Ashleigh E. Aitken and Council Members Norma Campos
Kurtz, Jose Diaz, Carlos A. Leon, Stephen Faessel, and Natalie
Meeks. Council Member Natalie Rubalcava joined the meeting
during Closed Session.
STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and
City Clerk Theresa Bass
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION: None
CLOSED SESSION: At 3:04 p.m., Mayor Aitken recessed to Closed Session for consideration
of the following:
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California
Government Code Section 54956.9: Two potential cases
2. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
(Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of
California Government Code Section 54956.9): One potential case
(A copy of the claim 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.&tJi�tl 1111.11'cL Lam^ UIJL,'Iccrt•,lUc2—)
At 3:50 p.m., Mayor Aitken reconvened the Anaheim City Council.
MEMBERS PRESENT: Mayor Ashleigh E. Aitken and Council Members Norma Campos
Kurtz, Jose Diaz, Carlos A. Leon, Natalie Rubalcava, Stephen
Faessel, and Natalie Meeks
D106 WORKSHOP: Mid -Year Budget Workshop
Finance Director Debbie Moreno introduced the Budget team D'Anne Lee, Ivette Ramirez, and
Arlene Roa. She reported the mid -year update will include a General Fund Overview of Fiscal
Year (FY) 2023/24, General Fund Five -Year Forecast, Citywide Projects, projections for the FY
2024/25 Budget, and the Budget calendar for the current fiscal year.
Director Moreno reported the General Fund budget of $2.1 billion provides strategic core
services with the majority of the funding coming from restricted funds, led by a 39% composition
from Enterprise Funds to fund the City's Water and Electric Utilities, solid waste and sanitation,
golf courses, and the Convention, Sports, and Entertainment venues. She highlighted additional
fund sources including Special Revenue Funds, Capital Project Funds, and Internal Service
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Funds. She noted the remaining restricted funds and other general-purpose funds represent
only 5% of the City's overall budget. She noted the General Fund accounts for 22% or $589.7
million of the total budget and includes the bulk of discretionary funding. She broke down the
General Fund budget with 76% of the revenues from taxes including the Transient Occupancy
Tax (TOT), Sales Taxes, and Property Taxes. The remaining revenues include Fees and
Permits, Business Licenses, and other revenues.
Director Moreno presented the annual TOT sums adding visitors to Anaheim pay a 15% tax on
their hotel, motel, and short-term rental stays of 30 days or less. TOT is collected monthly with a
one -month delay from when the tax is paid to when the City receives the revenue. She noted
the City has recovered from the pandemic's shutdowns, adding the current FY 2023/24
projections are for a record high of $254.3 million, exceeding the projected total of $236.3
million. She reported this is in part due to the success of Measure J which authorized the
collection of TOT on parking and other room -related revenues and the collection of the full room
rate from online travel companies, approved by voters in November of 2022.
Director Moreno explained Sales Tax is applied to the sale of tangible personal property,
including clothing, furniture, food products, vehicles, and gasoline. She reported the Sales and
Use Tax rate in the City is 7.75% with the majority of it going to the State and the City receiving
1 %. She added the City receives about 30% of its Sales Tax revenue from general retail with
transportation, business -to -business, food, and construction all accounting for the remainder in
relatively equal proportion. She noted only the projections for the food category are up for FY
2023/24 and it is a modest 3% increase. She reported the FY 2023/24 projection for Sales and
Use Tax is $112 million or 19% of the General Fund operating sources, a sum comparable to
the recent post -pandemic years.
Director Moreno reported all real and tangible personal property in the State is subject to a
property tax equal to 1 % of the property value. She noted the City receives 20% of the Property
Tax collected by Orange County. She reported the adopted Property Tax budget was $100.9
million or 17% of the General Fund operating sources and it now projects to $102.1 million, a
City record. She added Property Tax is the most stable of the three major revenue sources but
the least robust.
Director Moreno reported the remaining revenues make up about 24% of the General Fund
budget with fees and permit revenue being the largest chunk of the grouping at 31%. She added
this area is projected to be higher in FY 2024/25 largely attributable to public safety grants
bringing in offsetting expenditures. She added that 11% of the other revenues are from
intergovernmental service charges which represent fees for services provided by one
department to another.
Director Moreno reported that 49% of the General Fund's revenues go towards keeping the City
safe through the Anaheim Police Department (APD) and Anaheim Fire & Rescue (AF&R), a
typical percentage for major cities, with 21% going to debt service including Resort Debt or
Lease Payment Measurement Revenues (LPMR) that are determined by formula.
Director Moreno presented a five-year forecast for the General Fund budget adopted in June of
2023. She noted General Fund sources, less the use of bond proceeds, were $573.1 million and
the uses were $597 million. She noted in March of 2021 the Council approved the issuance of
$138 million in Deficit and Working Capital Bonds to address the impending expected deficit
based on the pandemic's impacts on TOT. She reported revenues rebounded quicker than
expected after the Resort reopened and the bond proceeds will help balance the budgets in
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upcoming years. She noted FY 2023/24 is seeing higher revenues but also significantly higher
expenditures which can be covered by the budgeted $16.6 million in bond proceeds.
Budget Supervisor D'Anne Lee reported on annual highlights, including the Community Services
Department's investment in local parks including Ross, Citrus, and Peter Marshall Parks in
collaboration with KABOOM!, Little People's Park mural in celebration of Chicano Heritage
Month, the new Brookhurst Teen Center, and the City Hall Tree Lighting for the holidays. She
highlighted the additional funding included to increase programming and services for the Active
Older Adult Program which will be centered around new engagement opportunities including
access to food, transportation, and education, among others, at eight City facilities to support
the older adult population. She added funding for expanded Library services was also included
to ensure services seven days a week in each region of the City. She reported on the efforts of
the APD and AF&R to engage in the community and maintain its safety. She highlighted APD's
investment in employees with trainings, the Real Time Crime Center to provide real-time
intelligence and tactical support to patrol operations and highlighted the partnership with the
Anaheim Union High School District (AUHSD) to provide Safe Schools Investigators on high
school and junior high campuses.
Budget Supervisor Lee highlighted AF&R's Ambulance program which has generated $10.8
million of transport revenue as of January 2024. The program has provided dedicated
Paramedic, EMT, and Ambulance services for key events. She added AF&R added three (3)
firefighters to Engines E3 and E6 which restores engines and trucks to a four (4) person crew
and the designation of Safety Officers to provide a more robust margin of safety in emergency
incidents. She highlighted new projects conducted during the Fiscal Year by Anaheim Public
Utilities (APU) and the Public Works Department, including the Linda Vista Groundwater
Treatment Facility, approval of the Clean California Maintenance Agreement in partnership with
the California Department of Transportation, and street rehabilitation. She reported on highlights
from the Planning Department and the Housing and Community Development Department,
including work on the Disneyland Forward proposal, the ocV!BE project, and construction of the
Miraflores Apartments and Center of Hope Apartments.
Director Moreno cautioned the level of uncertainty in the economic forecast for the upcoming
year making the FY 2024/25 budgetary process a challenge, citing not only local concerns but
also national trends impacting Anaheim. She presented a preliminary proposed FY 2024/25
budget, noting projected declines in Sales Tax revenues and higher General Fund expenditures
resulting in a projected deficit of $6.6 million requiring the use of more bond proceeds to
balance the budget. She noted there would still be $38.8 million in remaining bond proceeds
after FY 2024/25 to help balance future budgets.
Finance Director Moreno reported departments have submitted their proposed FY 2024125
budgets and added they will be reviewed in April with the City Manager. She stated in May the
proposed budgets will be published for review by the Council, the Budget Investment and
Technology Commission, and the community. She reported in June the City will conduct Budget
Workshops and hold community meetings leading up to the anticipated June 18th budget
adoption.
Mayor Aitken noted the public comment period will be held following comments by the City
Council. Seeing none, Mayor Aitken opened the public comment period.
Mayor Aitken, seeing no speakers for the Workshop, closed the public comment period. City
Clerk Theresa Bass added there were no electronic comments received on the Workshop.
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DISCUSSION: In response to Council Member Meeks' inquiries, Director Moreno clarified how
the changes to the FY 2023/24 projections all happen to offset, leaving the City with a balanced
budget. She added the early projection for FY 2024/25 is where there is a projected deficit of
$6.6 million. She confirmed the chart only reflects changes for FY 2023/24 and not the total
amounts.
Council Member Faessel requested additional information on the City's economic outlook.
Director Moreno confirmed there are mixed uncertainties regarding the economic outlook. She
stated the good side includes strong employment rates, declining inflation, and high stock
prices. She reported the bad side includes the uncertainty due to a Presidential election year,
the State's budget deficit, increased homelessness, and a slowing in economic growth. She
reported the ugly side includes low housing inventory, high interest rates following the
pandemic, and a decreasing State population.
In response to Council Member Faessel's inquiry, Finance Director Moreno confirmed she and
her staff meet with the Budget Commission at least nine times a year. She added departments
have also presented to the Committee for their feedback.
Council Member Rubalcava inquired if the City will lose grant funding in FY 2024/25 due to the
State's deficit. Director Moreno confirmed there is a chance the City could lose some of its State
grant funding in FY 2024/25 due to California's budget deficit. She added it is identified in the
Strategic Plan on how to look at alternate sources of funding should the State's funding go
away.
Council Member Rubalcava requested staff forecast a potential Resort parking fee as a long-
term revenue source after the Lease Payment Measurement Revenues (LPMR) expire. She
requested staff forecast a percentage and not a dollar amount.
Council Member Diaz reported California Senate Bill (SB) 937 could impact the City's ability to
collect fees from developers over the upcoming years. He noted the State also plans to close a
prison to balance its budget leading to more homelessness. He encouraged Director Moreno to
be conservative in spending because the City is balancing the budget through borrowed money
He encouraged incentives for economic growth and following the progress of SB 937.
In response to Council Member Meeks' inquiry, Director Moreno reported staff has received
updated assessed value estimates leading to the projected increase in Property Tax revenues.
Mayor Aitken thanked the Finance Department for their hard work and time dedicated to the
Budget.
At 4:28 p.m., Mayor Aitken closed the Workshop and recessed the Anaheim City Council. The
Anaheim City Council reconvened at 5:02 p.m.
INVOCATION: Senior Pastor Philip De Courcy, Kindred Community Church
Council Member Diaz recognized the employees who work in the community beyond normal
service hours to ensure the community's welfare and safety
FLAG SALUTE: Council Member Jose Diaz
City Council Minutes of March 26, 2024
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PRESENTATIONS:
Recognizing Anaheim Public Library's Foster Youth Initiative 2022 for
being selected as one of the winners of Orange County Business
Council's 13th Annual Turning Red Tape into Red Carpet Awards
Mayor Aitken reported the Foster Youth Initiative was established in 2020 to meet the unique
challenges facing foster youth. She added part of the initiative was the "We're Here for You"
library card available to youths up to 18 years old to allow them to check out books without a
parent or guardian's signature or address. She noted the Library held a holiday drive to provide
supplies to foster organizations. Orange County Business Council Government Affairs Manager
George Boutros reported Anaheim Public Library was recognized as a winner of the Orange
County Business Council's 13th Annual Turning Red Tape into Red Carpet Awards which
recognizes those who streamline bureaucracy and promote economic development. He noted
the Library partnering with Casa OC, Orangewood Foundation, and Covenant House provided
652 library cards to foster youth and youth in need. He presented the recognition to City
Librarian Audrey Lujan and Principal Librarian Monica Sanchez. City Librarian Lujan thanked
the Anaheim Public Library staff, its Trustees, and the Council for providing additional funding to
allow the City's libraries to add weekend hours. She credited Principal Librarian Monica
Sanchez for her assistance with the project
Recognizing Rosary Academy Girls Water Polo Team for winning CIF -
Southern Selection Division 4
Mayor Aitken highlighted Alexis Velasquez who scored the winning goal with one minute to go
in the match. She congratulated the team, the coaches, and the player's presented. She
presented the proclamation which was accepted by the Rosary Academy Girls Water Polo
team.
Presentation by Anaheim Family YMCA
Anaheim Family Young Men's Christian Association (YMCA) Chief Volunteer Officer Michael
Johnson thanked the Council and staff for its support of the YMCA's youth.
YMCA President and Chief Executive Officer Brent Finlay thanked the City for being the
YMCA's long-term strategic partner. He reported on the YMCA's After -School Food Program
feeding approximately 2,000 children daily and serving over 8,000,000 meals since the program
began. He highlighted the Anaheim Achieves program which is the number one after -school
program for students across all grade levels. He noted students receive homework and study
time, structured recreational and enrichment activities, monthly field trips, tutoring, and a variety
of clubs. He thanked the Disneyland Resort for their sponsorship of the Avanza Program
providing skill development towards future employment for middle school and high school
students. He highlighted the We Build People annual support campaign and noted the
distribution of funds for each program.
Mr. Finlay reported the YMCA provided $73,057 of financial aid in 2023 to 767 youth towards
participation in its programs. He noted no family is turned away for their inability to pay the
program price due to a sliding fee scale and proceeds from their Gala. He noted that 4,500
children and adults have benefitted from the YMCA's athletic facilities. He reported on the
YMCA's planned facility expansion, including six pickleball courts and a street hockey rink being
built in partnership with the Anaheim Ducks Hockey Club LLC. He noted the expansion will
allow the YMCA to serve an additional 12,000 new children, adults, and families in the
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community. He added the facility expansion will be able to host other large outdoor community
events. He thanked the YMCA's partners, including the City.
Council Member Faessel lauded the YMCA's partnership in delivering thousands of meals
directly to the community during the pandemic. He thanked the YMCA for being there for the
City in a time of need.
Council Member Leon thanked Mr. Finlay for all of his efforts as a YMCA Anaheim Achieves
participant during his childhood.
Council Member Meeks acknowledged the importance of physical activity for children and adults
alike and thanked Mr. Finlay for keeping its athletic fields open during the evening.
Presentation by Library Board
Library Board Chair Linda Newby introduced the Library Board of Trustees including Rose
Chen, Vice Chair; Elia Renteria; Jackie Filbeck; and Dr. Michelle K. Dang. She reported the
Library Board was the first board established by the City Council in 1902 with its goal being to
meet community needs through library programs, services, and resources. The Board's duties
include stimulating community in library activities and encouraging individuals and citizen
groups to donate funds. She noted the Library provides an array of services geared towards
children, teens, adults, and seniors. She added the libraries have goals to improve life skills and
literacy and it has seen 180,000 patrons. She noted during the last year the Library celebrated
the 601h Anniversary of the Central Library. She thanked the library's partners including Anaheim
Elementary School District, Centralia School District, In-N-Out Burger, Raising Canes, and
Zombee Donuts for sponsoring its summer reading programs, including the Rally Readers
program conducted through Angels Baseball LP.
Chair Newby reported on the Library's digital outreach efforts and e-newsletter. She thanked the
City for its support of the Library and its staff. She noted the Library has an engagement rate of
9% on Instagram and 4 to 8% on Facebook. She highlighted the monthly E-Newsletter which
have been read by over 51,675 individuals from August 2023 to January 2024.
City Librarian Lujan provided pamphlets to City staff on how millennials use the Anaheim Public
Library.
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Recognizing March 31, 2024, as Cesar Chavez Day
Former State Senator Joseph Dunn accepted the recognition on behalf of the Chavez family
and the United Farm Workers Association (UFW). On behalf of the family and organization, he
extended their thanks for the recognition. He stated it was a privilege and source of pride to
propose legislation on behalf of the UFW supported by the Chavez family. He thanked his
senatorial staff and the Council for the recognition.
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Recognizing April 2024, as Arab -American Heritage Month
Arab -American Civic Council Executive Director Rashad AI-Dabbagh accepted the recognition
and thanked the Council for its continued annual recognition since 2016. He noted the Little
Arabia community has contributed greatly to the City and expressed his excitement for
upcoming improvements to Brookhurst St. He encouraged residents to visit Little Arabia and
learn about Arab American culture, noting the community is hurting this year due to the conflicts
in Palestine. He encouraged the Council to use its platform to call for an end to the injustice.
Mayor Aitken thanked Mr. AI-Dabbagh for being an amazing voice for the Council and assisting
City staff on behalf of Little Arabia and the Arab American community.
Recognizing April 2024, as DMV Donate Life California Month
OneLegacy Ambassador Leslie Eskildsen accepted the recognition. She clarified for those
unfamiliar with OneLegacy is the organ procurement program covering Orange County and
several others, serving a population of over 20 million people. She reported organs donated by
her late husband saved the lives of four people while he posthumously helped 75 other people
through the donation of bone, skin, and tissue. She thanked the City for promoting organ
donation registration. She reported there are 114,000 Americans currently waiting for a donated
organ with 20 of them dying in the average day while waiting. She added it is uplifting knowing
her late husband had a mission to serve others in this way.
Recognizing April 2024, as Esophageal Cancer Awareness Month
At 5:44 p.m., Mayor Aitken called to order the Successor Agency to the Anaheim
Redevelopment Agency, in joint session with the City Council.
ADDITIONS/DELETIONS TO THE AGENDA:
City Clerk Bass noted Item No. 16 is a continuance of a public hearing for the project located at
2125 — 2129 South Harbor Boulevard, approximately 300 feet south of Orangewood Avenue,
from February 27, 2024. She added the public comment period for the item was closed at the
February 27, 2024 Council meeting. She reported staff is requesting a continuance of the item
to the City Council meeting on May 7, 2024.
Without objection, Mayor Aitken considered Item No. 16 out of order.
City Council Minutes of March 26, 2024
Page 8 of 38
C220 16. CEQA CATEGORICAL EXEMPTION, CLASS 1
DEVELOPMENT APPLICATION NO.2023-00011
PROJECT LOCATION: The approximately 0.81-acre property is located at 2125 - 2129
South Harbor Boulevard, approximately 300 feet south of Orangewood Avenue.
REQUEST: The applicant requests a determination of Public Convenience or Necessity
to permit off -site sales of alcoholic beverages in an existing retail sales -general use that
is incidental to and integrated with The Carriage Inn motel, an amendment to Conditional
Use Permit No. 2725 to remove a condition of approval requiring a restrictive covenant
on the property, and approval of an administrative adjustment for a 5% reduction in
Code -required parking spaces.
ENVIRONMENTAL DETERMINATION: The City Council will consider whether to find
and determine that the project is categorically exempt from the provisions of the
California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines
Sections 15300.2 (c) and 15301, Class 1 (Existing Facilities) of Title 14 of the California
Code of Regulations.
ACTION TAKEN BY THE PLANNING COMMISSION: Approved a Determination of
Public Convenience or Necessity for the sale of alcoholic beverages for off -site
consumption, an amendment to Conditional Use Permit No. 2725 to remove a condition
of approval, and an administrative adjustment for a 5% reduction in Code -required
parking and making certain findings in connection therewith (PC2024-002). VOTE: 7-
0 (Chairperson Kring and Commissioners Henninger, Castro, Lieberman, Perez, Tran-
Martin, and Walker voted yes).
(Planning Commission meeting of January 17, 2024) Appealed by: Talab Ibrahim.
(continued from Council meeting of February 27, 2024, Public Hearing Item No. 32;
public comment period closed on February 27, 2024).
MOTION: Council Member Meeks moved to continue Item No. 16 to the City Council meeting
of May 7, 2024, seconded by Mayor Pro Tern Kurtz. ROLL CALL VOTE: AYES — 7 (Mayor
Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES — 0.
Motion carried.
PUBLIC COMMENTS all agenda items, except public hearings): Prior to receipt of
public comments, City Clerk Theresa Bass provided an outline of procedures for public
comments, notice of translation services, and a brief decorum statement.
City Clerk Bass reported that a total of one (1) public comment was received electronically prior
to 2:00 p.m. [ A final total of 1 public comment was received electronically, distributed to the City
Council, and made part of the official records]. — See Appendix.
Mark Richard Daniels expressed his frustration at the continued issues of homelessness and
food insecurity. He noted a slide in the budget workshop may have included a mistake about the
City's priorities by listing Disneyland Forward and other projects before housing which is a daily
need for many. He decried how much attention is being placed on Disneyland Forward when
people in Anaheim are living on the edge of homelessness. He stated the City can do better
with State, federal, and private industry partnerships in building affordable housing and
prioritizing the issue.
Marc Herbert noted Anaheim's population was 25% smaller when Disneyland expanded in 1993
with less acute housing and homeless problems. He reported during the expansion the City and
The Walt Disney Company agreed on Disney creating 500 affordable housing units while the
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Page 9 of 38
City provided a 10,000-space parking structure. He reported the City's 2014 Regional Housing
Needs Assessment (RHNA) called for 5,700 affordable housing units in Anaheim but the current
sixth cycle calls for 17,400, tripling the need. He noted the City is falling behind on affordable
housing and is only expected to cover 55% of its needs in the current cycle. He added in 1993
the City covered 80% of its affordable housing RHNA requirement.
Adam Wood, Orange County Vice President of the Building Industry Association, thanked staff
for its balanced report in Item No. 14 relative to other jurisdictions. He added the pros and cons
of mandatory incentives are laid out well. He added mandatory incentives harken back to
inclusionary zoning conversation raising concerns for his organization. He reported on a recent
study conducted by the City of Costa Mesa reflecting on items inclusionary zoning fails to
deliver in building housing. He stated he looks forward to working with the City however the
discussion plays out later in the meeting.
Cecil Jordan Corkern reported on obscenities he has seen in the film Peter Pan. He stated he is
beginning to find his reports on Disney. He reported telling the Anaheim Public Library they
need to remove their Disney films because they are inappropriate. He reported his coworker,
Randy, recently passed away. He stated Disney movies are a trap for children, noting the City
has recently conducted reports on sex trafficking.
Mike Robbins stated it is difficult to find housing for the homeless and commended former
Mayor Tom Tait for helping find Mr. Corkern housing. He discussed the concept of a
corporatocracy and related it to Disney depositing millions of dollars into Save Our Anaheim
Resort (SOAR) and attaching the company to Council Members. He stated the Disney -tied
Political Action Committees (PAC), and their executives are crooks looking to make billions
more at the cost of residents. He decried Anaheim for becoming a corporatocracy like the ones
found in Myanmar or Saudi Arabia. He encouraged the Council Members to think with their
conscience about what is best for the City's residents instead of voting based on campaign
contributions. He threatened State and federal oversight of votes to the contrary of residential
interests potentially leading to jail time.
Damion Ramirez spoke on behalf of Martin Angel Hernandez who was killed in an officer -
involved shooting with the APD on March 6, 2012. He noted it would have been Mr.
Hernandez's 34th birthday. He reported he stopped coming to Council meetings to fight on Mr.
Hernandez's behalf seven years ago because all her saw in the eyes of Council Members then
were dollar signs and getting money from Disney and the Los Angeles Angels, padding their
pockets at the detriment of the residents. He reported in 2012 that Mr. Hernandez's community
immediately spoke out to refute the APD's narrative and ensure the truth was told. He stated
when a whole community speaks with an instantaneous narrative it is usually accurate. He
added the APD's video evidence mysteriously disappeared before the public could ever view it.
He theorized Mr. Hernandez would have been coming home from work today to his family to
celebrate his birthday. He decried how for 12 years all his friends could do was tell Mr.
Hernandez's son stories about how wonderful his father was. He wished Mr. Hernandez a
happy birthday and condemned the APD.
G. Price noted public comments at the Planning Commission's meeting on Disneyland Forward
decried how the Environmental Impact Report (EIR) did not discuss the use of fireworks and
their negative impacts on air quality for neighbors. She stated the effect of fireworks on air
quality has never been studied by the City making an erroneous assumption they are
acceptable since they already are used nightly by Disneyland. She noted when fireworks began
at Disneyland, they were not a nightly event but rather restricted to special occasions. She
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decried a lack of transparency and added a study of fireworks should be made public if it exists.
She stated fireworks are not safe and the City should take steps to protect the health and well-
being of residents living near the Resort.
Stephanie Mercadante stated she is tired of having to live with DisneylandForward's constant
threat to her quality of life living over her head whereas the Council Members only have to live
with it two Tuesdays a month. She added she will also have to continue to deal with the effects
after the Council votes on the project. She decried her elected officials for making no effort to
listen to their constituents. She suspected they had not read the details of many alarming facts
from the Disneyland Forward proposal residents discovered by reading the proposal. She
reported there is no evidence the Council has asked City staff to look into some of the more
damaging elements of the proposal and this should happen before they vote on giving Disney
unprecedented power over residential neighborhoods. She reported she continues to document
the overwhelming traffic on Walnut Street due to Disneyland deliveries, but the frequent concern
was not addressed in the Amended Development Agreement. She stated that the idea of adding
a bicycle lane to what has become an Anaheim Municipal Code -violating tractor -trailer corridor
is ludicrous. She encouraged the Council to demand solutions to issues such as Walnut Street
traffic that were missed and challenged the Council Members to protect the quality of rights of
residents. She stated she sees no reason to trust City Hall right now.
Matthew Duncan commended Council Member Leon for his participation in the Read Across
America program, adding he is a role model as a City leader. He quoted from a book titled
Coyote America by Dan Flores offering a description of the majesty of coyotes, how Native
Americans revered coyotes, and how coyotes continue to exist despite being persecuted by
Caucasian settlers. He stated Native Americans should be studied more in public schools.
Vern Nelson requested Council Member Faessel request to adjourn the meeting in memory of
Andres Bonilla, a resident recently killed in a District 5 automobile accident. He reported Mr.
Bonilla and his friend who lost his legs in the accident were Mexican immigrants who came to
Anaheim to support their families. He stated he found the report in Item No. 14 difficult to
understand but expressed his hopes it is a sign the City is taking its lack of affordable housing
seriously — noting its effect is being seen as school enrollments decline to the point of closure
and teacher layoffs. He reported Disneyland Forward promises $30 million for affordable housing
but noted Disney is spending over $300 million for affordable housing near Walt Disney World in
Florida. He stated the $30 million, of which only $15 million will come up front is completely
insufficient for current homeless Disney employees, let alone the new ones who will work there
after the expansion, citing comments from the Director of Housing and Community Development
Grace Ruiz-Stepter. He urged the Council to look out for residents because Disney can look out
for itself. He added the same $300 million Florida receives would be an acceptable sum. He
encouraged delaying the vote because there is extensive information on the project yet to be
digested.
Randy Lewis reported he lived in the Pepperwood Village Condominiums off of Walnut Street.
He thanked Mayor Pro Tem Kurtz for hosting a recent meeting about traffic flow in the Resort
area. He stated abandoning Magic Way is a community issue influenced by lies and fake
studies — citing a traffic study conducted on rainy weekend days when most area residents were
staying home. He requested bifurcating the Magic Way element from the remainder of
Disneyland Forward so it receives the consideration it deserves.
City Council Minutes of March 26, 2024
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Bryan Kaye chastised the Council for allowing an APD officer who uses racial slurs to serve. He
stated the Council can take action against him without addressing how the Police Review Board
does not have evidence that he ever committed any of the crimes he has been charged with. He
added there is evidence the APD and City staff violated laws through a forged criminal plea
agreement in his name. He decried how the Council finds this behavior acceptable and then
makes calls for security against him. He reported his court -appointed attorney last week tried to
have him committed to a mental health facility without discussing the matter with him. He
compared the Council Members to Adolf Hitler.
Cynthia Ward stated the City acts as if it not survive without Disney's investments. She called
for a vision of what the City residents want it to be and then invited corporate partners to
participate in the City's vision. She stated the City is under no obligation to meet Disney's
demands if Disney does not agree with the City's vision. She noted staff has acknowledged
Disney did not complete its obligations before 2010 yet the City still brought in more tax
revenues than projected and will be paying off its bond debt seven years early. She noted the
City will have a quarter of its General Fund expenditures free to improve the City even without
the Disneyland Forward proposal. She stated the City is rushing the project to meet Disney's
deadline and not the City's, adding details were worked out under the cabal era of former Mayor
Harry Sidhu but details have not been made public until recently, and many important details
have still yet to be released. She noted trust in the Council is low due to years of misinformation,
including its continued use of SOAR's claim that tourism accounts for half of the City's General
Fund revenues. She encouraged the Council to lead on the matter.
Kenneth Batiste stated Disneyland was dedicated to being a source of joy and inspiration to the
entire world in the words of Walt Disney at the park's opening. He stated the City has not
collected one penny of tax from Disneyland, leading to large civic debt. He reported Disney's
affordable housing promises of the mid-1990s disappeared within a year because Disney was
only looking out for itself fiscally and not its employees or residents. He reported Disney's theme
parks combined made $32.5 billion last year while the City suffers with a debt of $4 billion. He
questioned if the Council puts corporations or residents first.
COUNCIL COMMUNICATIONS:
Mayor Pro Tem Kurtz highlighted and shared photographs of events in District 4. She thanked
the Anaheim Public Utilities team who were out in the rain handing out dusk -to -dawn lights to
residents. They set up in Joseph Gonzales's driveway in District 4. Joseph Gonzales is a
Commissioner for the Housing and Community Development Commission. He noticed the
copper was being stripped from lights in his neighborhood and he contacted the District 4 Office,
Anaheim Public Utilities, and the Police Department. Anaheim Public Utilities went out and fixed
the lights on several streets as quickly as possible. They also went around the neighborhood
and noticed that the alleys were very dark and installed lights. Residents were very appreciative.
Olive Street Elementary School located at the corner of Vermont Avenue and Olive Street
recently had a walk through their neighborhood and several moms and teachers joined in
walking the neighborhood. At various stops, residents would share what was going on in their
neighborhood. The parent noted that the Police Officers who patrol the area are friendly and
stop and say hello to the kids in the neighborhood which helps the kids feel safe walking to
school. The parents shared that every six months the City of Anaheim hosts a neighborhood
event to provide resources to residents, food, and books. Mayor Pro Tern Kurtz thanked City
departments who help make Anaheim neighborhoods safer to live in.
City Council Minutes of March 26, 2024
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Council Member Faessel requested adjourning the City Council meeting in memory of Andres
Bonilla Pacheco who was involved in a traffic accident and passed away. Council Member
Faessel shared that he joined Mayor Aitken and Mayor Pro Tem Kurtz at the Association of
California Cities, Orange County Mayoral Roundtable. He was not able to attend the
Alzheimer's 2024 Walk at Angel Stadium because he twisted his ankle, but his wife Susan
joined Mayor Aitken in the rain for the walk. There was a great turnout despite the inclement
weather. He thanked Anaheim Public Utilities for all the streetlight repairs in District 5 mainly in
and around State College Avenue due to the copper thefts.
Council Member Diaz thanked Mayor Pro Tem Kurtz and Council Member Faessel for
recognizing Public Utilities. He noted that it is routine for Anaheim Public Utilities and Public
Works to work in the rain, heat, weekends, birthdays, and holidays. He mentioned that while
residents are safe in their homes, Public Works and Public Utilities are working in inclement
weather unplugging drains and keeping the City safe. Council Member Diaz highlighted 011igo
Grill located at 3240 Lincoln Avenue. He shared that the Korean American family immigrated
from Korea and the owner's son grew up in Anaheim and loves Mexican food and that is why he
created the Korean Mexican fusion menu at the restaurant. Council Member Diaz stated the
food is delicious and he invited everyone to support the local business and immigrant
community.
Council Member Rubalcava highlighted and shared photographs of events she attended in
District 3 including the first Neighborhood Watch meeting of 2024 in the Westmont Drive
neighborhood. She thanked District 3 resident and Realtor Jackie Garibay for taking the lead in
working with neighbors, the District 3 Office, Public Utilities, Public Works, and the Anaheim
Police Department to host Neighborhood Watch meetings. Ms. Garibay worked in collaboration
with Public Works to install the Neighborhood Watch signs in her neighborhood. Public Utilities
staff were also on hand to help the neighborhood with lighting initiatives and other ways to keep
the neighborhood safe. District 3 hosted two Anaheim Mobile Family Resource Center events
serving the Balsam and Catalpa neighborhoods. She thanked Neighborhood Services for
leading the initiative, Code Enforcement for attending the events, the Anaheim Public Library for
distributing books to all of the kids in these neighborhoods, Love Anaheim, Anaheim Family
YMCA, and OC Animal Care for providing dog and cat tags for the pets, Project Foodbox for
providing fresh fruits and vegetables to Cal Optima recipients, Family Promise of OC for
providing housing information, and District 3 Council Aides Daniel Hernandez and Melissa
Cuevas. She noted that some of the major initiatives in both neighborhoods are speeding and
the lack of parking. She stated that as a policymaker it is difficult to solve those issues as they
currently are already established, but one of the things she promises the residents she
represents is that she will work hard to prevent further congestion and other parking issues by
collaborating with the Planning and Building Department and developers to hopefully include
more or sufficient parking in neighborhoods. Council Member Rubalcava attended the Anaheim
Family YMCA and City Church Egg Hunt at the Sports Complex. She loved seeing all the
families enjoy themselves in the community. Pictures with the Easter Bunny were offered, there
was lots of candy, and a little bit of Jesus at this event. She was grateful for the City staff who
braved the cold and rainy weather to serve and engage with the community. She gave a special
shout -out to Anaheim Public Utilities and shared that they now have hard hats for the kids and
the Fire Department has competition. She also recognized Neighborhood Services, Anaheim
Police Department Community Policing Team, and District 3 Council Aides for attending the
event. Council Member Rubalcava shared that the Anaheim Police Department participated in
the Baker to Vegas Race. The two teams made Anaheim proud. The open team ran their fastest
since 1996 and finished seventh overall out of 258 teams, placed seventh out of 36 teams in the
open division, and retained the title of Orange County's fastest -running team by beating the
City Council Minutes of March 26, 2024
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Orange County Sheriffs Department by five minutes and the Santa Ana Police Department by
40 minutes. The invitational mix team ran the fastest time ever, placing eighth out of 36 teams.
She congratulated the Anaheim Police Department's Baker to Vegas running teams. Council
Member Rubalcava shared that her dad is a 41-year veteran of Anaheim Public Utilities. He was
a Mainline Pipe Fitter, and he was one of those people always on call. She recognized Public
Utilities employees who go above and beyond to make sure that the City's infrastructure is
maintained.
Council Member Leon thanked the Anaheim Public Utilities team for organizing the Community
Resource Fair and EV Test Drive event at Savanna High School. There was a great turnout
despite the rain and the team proved that nothing could dampen the dedication to sustainable
living and community engagement. He congratulated all the community groups, organizers,
volunteers, and residents who attended the Annual Easter Extravaganza at Maxwell Park. He
thanked Nathan Zug, Love Anaheim, Sandals Church, Magnolia Baptist, and everyone who
helped organize the fun event in West Anaheim. Council Member Leon highlighted and shared
photographs of Atticus Cafe, the March Restaurant of the Month. Atticus Cafe Atticus Cafe is a
woman -owned breakfast restaurant located off Magnolia Avenue. The owner Chef Yara serves
delicious comfort brunch and vegan items. They have chilaquiles, cafe de olla, pancakes, and a
lot more options including a lot of protein -packed meals for any gym and fitness enthusiast out
there. Chef Yara also happened to be celebrating her birthday and he wished her a happy
birthday again and thanked her for adding flavor to the community one delicious meal at a time.
Mayor Pro Tem Kurtz mentioned that former Senator Joseph Dunn accepted the Cesar Chavez
recognition on behalf of the family because he was close to them. He walked with the Chavez
family and Dolores Huerta from Merced to Sacramento, along with his two young children. On
the second march that the farmworkers had, Mayor Pro Tem Kurtz was honored to join them
and that is why UFW and the Chavez family mean a lot to both former Senator Dunn and Mayor
Pro Tem Kurtz.
Mayor Aitken highlighted and shared photographs of events she attended including the Boys
and Girls Club Annual Gala. She stated the Boys and Girls Club put on a wonderful event and
the kids were a joy to be around. She stated that Council Member Leon joined her bright and
early for the Alzheimer's Walk and it was a rainy day from start to finish. After that event, she
headed over to the Community Resources Fair and then the District 2 Easter Eggstravaganza.
She was invited by the Iranian American community to the Nowruz Festival in Irvine, and she
wished everyone celebrating a Happy New Year. Mayor Aitken thanked the Anaheim Police
Department for attending a District 6 event at a senior facility to speak about crime fraud, credit
card fraud, phone fraud, and all the different things that can get individuals in trouble on the
internet. The event was hosted by Community Services Board Chair Linda Barnett.
CITY MANAGER'S UPDATE:
City Manager Vanderpool shared that Anaheim City streets and theme parks will be alive with
runners for the Disney Half Marathon weekend, January 11-14, 2024. The weekend kicks off
with a 5K starting on Main Street and going through the theme parks. Then on Saturday, the
10K goes through both parks and onto the streets of The Anaheim Resort. On Sunday, the half
marathon covers both parks and goes from The Anaheim Resort to the Platinum Triangle area
including Angel Stadium, ARTIC, and Honda Center. to Angel Stadium, Honda Center, and
ARTIC. This marks the return of these great runs for the first time since 2017. Teams across the
City are working to ensure a smooth event for runners, residents, and businesses. City staff
have been sharing routes and other details on the City's social media and the homepage of
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Anaheim.net. For those not taking part, please be aware of limited road impacts, particularly on
Sunday morning. Most impacts are early, from 4:00 a.m. to 10:00 a.m. Many streets will open by
9:00 a.m. or earlier. He thanked everyone for their patience as the fun event is welcomed back
and brings spending on hotels, dining, and shopping. Which is funding used to serve the
community with police, fire, libraries, community centers, parks, and other services. City
Manager Vanderpool stated that City staff have been gathering data from cities across
California that currently have street vending ordinances. Staff will be presenting a draft Street
Vending Ordinance for City Council consideration at the February 6, 2024, City Council meeting.
City Manager Vanderpool shared that the Anaheim Police Department is finalizing its 2023
annual report. He displayed the report and shared that crime in Anaheim was down 6 percent
last year from 2022. The most serious crimes, including murders, rapes, and assaults, declined
by 4 percent. Thefts, burglaries, and other property crimes fell 12 percent. There were eight
homicides in 2023. While that is eight too many, that was down 20 percent from 2022. There
were 16 percent fewer traffic fatalities than in 2022. The Police Department handled more than
196,000 incidents in 2023. Response times for the community are also moving in the right
direction. Priority 1 calls, the most serious calls with an immediate threat to life, saw a response
time of 6 minutes and 42 seconds, down 10 percent. Other priority calls also saw significantly
quicker responses. The annual report is being finalized with statistics undergoing reconciliation
with federal Department of Justice standards.
He highlighted the Natural Products convention which brought more than 65,000 people to
Anaheim and was the largest trade show at the Convention Center since reopening after the
pandemic closure. The healthy food and lifestyle show included more than 3,300 exhibitors and
saw 140,000 pounds of food donated to Orange County's food bank, Second Harvest.
He shared that the new Anaheim Youth Advisory Council held its first meeting last week. The
Youth Council is made up of 18 students, representing all six districts. They are ready to offer
invaluable support and guidance to City staff, providing input on youth programs, projects,
events, and initiatives. In April, the Youth Council will take on its first project helping the
Anaheim Community Foundation to promote the Youth and Family Needs Assessment Survey.
He further shared that Anaheim's Economic Development Department was part of a recent
trade delegation to South Korea to promote ties between Anaheim and a major partner in trade
and visitors. The visit, led by the Small Business Development Center, is one of three Anaheim
engagements with South Korea. In October, Anaheim hosted the World Korean Business
Convention at the Anaheim Convention Center, the first time the trade show was held outside
South Korea. He welcomed to City Hall a planning delegation from the largest province in South
Korea.
At 6:53 p.m., Mayor Aitken recessed the Anaheim City Council to address the Successor
Agency to the Anaheim Redevelopment Agency Agenda and reconvened at 7:02 p.m.
City Council Minutes of March 26, 2024
Page 15 of 38
CONSENT CALENDAR: At 7:02 p.m., the Consent Calendar was considered with Council
Member Rubalcava pulling Item Nos. 05 and 06, Mayor Pro Tem Kurtz pulling Item No. 12, and
Council Member Leon pulling Item No. 13 for separate consideration.
MOTION: Council Member Faessel moved to waive reading of all ordinances and resolutions
and adopt the balance of the consent calendar as presented, in accordance with reports,
certifications, and recommendations furnished each City Council Member, seconded by Council
Member Leon. ROLL CALL VOTE: AYES — 7 (Mayor Aitken and Council Members Kurtz, Diaz,
Leon, Rubalcava, Faessel, and Meeks); NOES — 0. Motion carried.
D116 3. Receive and file the list of Professional Services Agreements executed by the City Manager in
February 2024.
D116 4. Approve recognitions recognizing Servite High School Soccer Team for winning the CIF -
Southern Section Division 1 Championships; Olympians who live or train in Anaheim who have
qualified for the Paris 2024 Olympic Games; and Anaheim Public Utilities High School
Scholarship Recipients.
D113 7. Receive and file the 2023 Registered Lobbyist Annual Report.
8. Ratify the submission of the Department of Labor YouthBuild Grant application and
AGR-14634 accept the YouthBuild award from the Department of Labor in the amount of $960,814;
approve the YouthBuild Workforce Development Grant Agreement with Taller San Jose
Hope Builders, dba Hope Builders, in the maximum compensation amount of $825,000,
to operate the YouthBuild program for a term ending September 30, 2026; authorize the
City Manager, or designee, to execute all documents and agreements required to
administer and implement this grant; and increase the Housing and Community
Development Department's Fiscal Year 2023/24 revenue and expenditures budget by
$960, 814.
9. Accept an award of $30,000 from the County of Orange; approve Contract MA-012-
AGR-14635 24010269 by and between the County of Orange on behalf of OC Community
Resources, Workforce & Economic Development Division and the City of Anaheim for
the provision of Regional Workforce Consulting Services for a term ending June 30,
2024; authorize the Director of Housing and Community Development, or her designee,
to execute and administer the Agreement and any future modifications on behalf of the
City; and increase the Housing and Community Development Department's FY 2023/24
budget by $30,000.
10. Accept an award of $572,947.10 from the County of Orange; approve Contract MA-012-
AGR-14636 24010195 by and between the County of Orange on behalf of OC Community
Resources, Workforce & Economic Development Division and the City of Anaheim for
the provision of Regional Workforce Training Services for a term ending October 31,
2025; authorize the Director of Housing and Community Development, or designee, to
execute and administer the Agreement and any future modifications on behalf of the
City; and increase the Housing and Community Development Department's FY 2023/24
budget by $572,947.
City Council Minutes of March 26, 2024
Page 16 of 38
AGR-1463711. Approve the Professional Services Agreement with Mosaic Community Planning LLC., in
an amount not to exceed $68,850, to prepare the Fiscal Year 2025-2029 Consolidated
Plan for a term ending June 30, 2025; and authorize the Director of Housing and
Community Development, or designee, to execute and administer the agreement.
BUSINESS CALENDAR:
C410 5. Review the 2023 General Plan Annual Progress Report and direct the Planning and
Building Director to submit the report to the California Department of Housing and
Community Development and the Governor's Office of Planning and Research.
Deputy City Manager/Planning and Building Director Ted White reported the item is the Annual
Progress Report which identifies compliance with State law in the administration of the City's
General Plan through the Governor's Office of Planning and Research (OPR), and the California
Department of Housing and Community Development (HCD). He added this report is due
annually on April 11. He clarified this report is different than the Housing Element report found in
Item No. 06.
Deputy City Manager White reported, that per State law, each City and County must adopt a
comprehensive long-term General Plan. He added Anaheim's was originally adopted in 1963
and the last comprehensive update was completed in 2004. He noted the City's General Plan
includes all State -mandated elements, as well as 4 optional elements. The General Plan Annual
Progress Report (Report) demonstrates how Anaheim complies with State law and highlights
major projects approved in 2023, highlighting the General Plan goals and policies they help
implement. He added the Housing Element update is underway and staff are working with HCD
on compliance so it can be presented to the Council soon. He added the General Plan's
Circulation and Land Use Elements are also in the process of being updated. He noted the City
is required to create a new element for Environmental Justice due to a recent State law to
ensure equal distribution of resources to avoid communities disproportionately impacted by
environmental exposure or degradation. He added in Anaheim, 51 of 74 census tracts fall under
this designation.
Deputy City Manager White reported it is anticipated all revised elements will be presented to
the Council later in the year. He added all other elements in the General Plan are compliant with
State law and OPR's General Plan Guidelines.
Deputy City Manager White reported the three Council -approved General Plan Amendments
and the four major projects approved and completed in 2023 are included in the Report with the
four projects being the Orange Avenue Townhomes, the Platinum Triangle A -Town
Development Areas C & D, Vermont Apartments, and Nolin II.. He added several other major
accomplishments from 2023 are included in the report. He stated staff recommends the Council
review and approve the Report and direct staff to submit it to HCD by April 13t
DISCUSSION: Council Member Rubalcava encouraged staff to be mindful of changing zoning
designations because it can impact a community's character in the long term, along with
impacting parking. She highlighted the relationship between the item and inclusionary housing
and noted that inclusionary housing does not resolve all issues. She encouraged staff to have
developers consider first-time homebuyer programs.
City Council Minutes of March 26, 2024
Page 17 of 38
In response to Council Member Rubalcava's inquiry, Deputy City Manager White clarified
having developers include first-time homebuyer programs has not been required by the City as
a condition of approval. He added agreements like that have been a partnership and not a
mandate.
Council Member Rubalcava suggested proposing a first-time homebuyer program would be
more useful to residents than having percentages of a development designated by income level.
She stated that could be a good solution for the State and theorized developers would
appreciate that, making it more builder -friendly and assisting residents. She stated that based
on rising Property Tax revenue, the City should be building more single-family for -sale homes
instead of multi -family rentals.
In response to Mayor Aitken's inquiries, Deputy City Manager White reported State guidelines
recommend a comprehensive General Plan update every 10-20 years. He noted the General
Plan's last comprehensive update before 2004 was in 1984. He noted many elements have
been updated since 2004, citing the regular Housing Element updates with each cycle. He
stated it would be advisable to start conversations relative to a comprehensive update of the
General Plan within the next few years.
In response to Mayor Pro Tern Kurtz, Deputy City Manager White clarified there are a series of
General Plan amendments corresponding with items such as the 2013 Housing Element update
keeping it less outdated than it may seem since its last comprehensive update in 2004. He
added some of the larger policy questions could use a more comprehensive update.
MOTION: Council Member Rubalcava moved to review the 2023 General Plan Annual
Progress Report and direct the Planning and Building Director to submit the report to the
California Department of Housing and Community Development and the Governor's Office of
Planning and Research, seconded by Council Member Meeks. ROLL CALL VOTE: AYES — 7
(Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks);
NOES — 0. Motion carried.
D159 6. Review the 2023 Annual Housing Element Progress Report and direct the Planning and
Building Director to submit the report to the California Department of Housing and
Community Development and the Governor's Office of Planning and Research.
DISCUSSION: Council Member Rubalcava reported she was on the Housing Element Update
Committee, however, noted it was not a long-term committee. She requested additional
information explaining the role of the committee and the process that was in place.
Deputy City Manager White confirmed the ongoing Housing Element update does have a
Citizens Advisory Committee component. He added the Committee's work is mostly concluded
but added there may be an additional opportunity to engage with the group before the document
is finalized. He added there has not been much to report for a while as staff navigates through
minutia with HCD.
In response to Council Member Rubalcava's inquiry, Deputy City Manager White offered to give
his prepared presentation to provide information on the Housing Element and the approval
process.
City Council Minutes of March 26, 2024
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Deputy City Manager White reported the item is the City's Annual Progress Report on the
Housing Element, due to the State on April 18t. He added this is the second full reporting year in
the sixth cycle of the Housing Element which began in October 2021 and continues through
2029. He noted the Housing Element is still in draft form and the Report focuses on draft
policies previously reviewed by the Council and submitted to HCD. He reported the Report
includes progress made toward housing goals, the number of entitled and completed housing
units, the status of the housing program's implementation, and updates on surplus land.
Deputy City Manager White reported the Southern California Association of Governments
(SCAG) established the RHNA for cities and counties in the region during each cycle. He noted
for the sixth cycle, Anaheim's RHNA was a total of 17,453 housing units. The allocation is
broken down into income categories of very low (including extremely low), low and moderate —
which are referred to as "affordable housing", and above moderate -income also considered
"market rate housing."
Deputy City Manager White reported in 2023 the City issued 965 permits for building new
housing units, with all but three of them being for single-family attached, multi -family, or
Accessory Dwelling Units (ADU). He noted the 965 permits more than doubled the 480 permits
for 2022, mainly attributed to the Link OC Apartments in District 6. He added ADU permits have
risen significantly since 2021.
Deputy City Manager White explained the City's Quantified Objective which represented what
the City has determined to be a reasonable number of building permits that the City can
anticipate it will issue during the planning period, when taking into consideration factors such as
available funding, infrastructure, and current market conditions. actual RHNA allocation and
reported on the sixth cycle progress based upon each metric. He reported on the
implementation of the City's various housing assistance programs.
Deputy City Manager White noted the Housing and Community Development Department and
Housing Authority continue to move forward on action items highlighted in the Housing
Element's Implementation Program. These include the residential rehabilitation loan program,
administered by Habitat for Humanity, the Down Payment Assistance Program, and Federal
Voucher Programs.
Deputy City Manager White reported the draft sixth cycle Housing Element update was first
released to the public in August of 2021 with a review by the City Council in October and was
subsequently submitted to HCD for review. He reported staff has formally submitted two
additional drafts and informally submitted another in September 2023. He added staff continues
to address HCD's comments and is working on another draft to formally submit in early 2024.
He added staff is preparing amendments to the Land Use Element, Zoning Code, and
Circulation Element to reflect the Housing Element in addition to creating the new
Environmental Justice Element. He noted staff is currently working with the City's consultant to
complete the technical analysis required for the preparation of the draft Program Environmental
Impact Report (PEIR), which staff anticipates will be available for public review in summer 2024
Council Member Rubalcava reported the Citizens Advisory Committee she sat on looked at
parcels of land so the City could help meet its RHNA numbers and added it was a good
opportunity to determine where certain potential developments made sense. She cited a
shopping plaza in District 5 which her group felt would not be a good location for low-income
housing because it is not near any grocery stores. She thanked residents who are engaging in
City Council Minutes of March 26, 2024
Page 19 of 38
the process. She encouraged the City to better advocate for itself with SCAG after receiving
such a high RHNA number. She stated the City has already built a lot of housing.
In response to Council Member Rubalcava's inquiry, Deputy City Manager White stated the City
has a tremendous track record of building market -rate housing and housing at all income levels.
He reported in the fifth cycle from 2013-2021 the City built approximately 8,800 residential units.
He noted that 2023 was approximately on the same pace of about 1,000 units a year. He added
this is a commendable record for Orange County and Southern California cities.
In response to Council Member Rubalcava's inquiry, Deputy City Manager White reported the
City continues to work with HCD on small issues including new laws around the subject of the
new Affirmatively Furthering Fair Housing (AFFH) laws. He added that AFFH is a point of
emphasis for HCD full of technical nuances.
In response to Council Member Rubalcava's inquiry, Deputy City Manager White confirmed
local legislators at the State level are supportive of the City's efforts.
MOTION: Council Member Rubalcava moved to review the 2023 Annual Housing Element
Progress Report and direct the Planning and Building Director to submit the report to the
California Department of Housing and Community Development and the Governor's Office of
Planning and Research, seconded by Council Member Meeks. ROLL CALL VOTE: AYES — 7
(Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks);
NOES — 0. Motion carried.
12. Ratify and approve the School Resource Officer Agreement with the Anaheim Union
AGR-14278.1 High School District to provide six School Resource Officers at local high schools for a
one year term commencing on July 1, 2023 with up to five automatic one year renewals;
approve an Amendment to the Agreement with Anaheim Union High School District to
provide one additional School Resource Officer; authorize the Chief of Police to execute
and administer the agreement and amendment; and increase the Anaheim Police
Department's Fiscal Year 2023/24 General Fund Expense Budget by $34,375 [annual
cost is approximately $165,000 which would be offset in part by revenue from the school
district].
DISCUSSION: Mayor Pro Tem Kurtz stated she supports working with the Anaheim Union High
School District (AUHSD) on placing School Resource Officers (SRO) at their schools.
In response to Mayor Pro Tern Kurtz's inquiries, APD Chief Rick Armendariz clarified the APD is
requesting a frozen officer position to be restored and fill an SRO position. He confirmed this
request must be approved by the Council to unfreeze the position. Mayor Pro Tern Kurtz
expressed her support for the item.
Council Member Faessel reported he regularly visits Sycamore Junior High School which has a
half-time SRO. He commended the work of the SRO and added she sets a good example to
reflect on the role's importance. He noted every parent he speaks with is pleased to have an
SRO at their child's school. He expressed his support for the program across the City.
In response to Council Member Leon's inquiries, Chief Armendariz reported there are six
officers assigned to AUHSD schools. He added the junior high schools have an SRO on a part-
time basis based upon requests by the School Districts. He added there is also an agreement
between the APD and the Placentia-Yorba Linda Unified School District for a high school SRO
City Council Minutes of March 26, 2024
Page 20 of 38
and noted the APD is also working with the Orange Unified School District for an SRO at
Canyon High School. He confirmed APD officers jump between AUHSD facilities as they assist
and support the junior high schools feeding the respective assigned high schools.
In response to Council Member Rubalcava's inquiry, Chief Armendariz confirmed this is an
addendum to an already existing program to add a seventh SRO to specifically service
Sycamore Junior High School on a full-time basis.
Council Member Rubalcava thanked the City Manager and the Chief for working with the
AUHSD to work with the City and cover half of the costs. She expressed her support for adding
an APD officer position to cover the program's expansion without removing officers from the
street. She added the area in District 3 around Sycamore Junior High School and Anaheim High
School has seen an increase in gang activity.
Chief Armendariz lauded the collaboration between the AUHSD and the APD.
MOTION: Mayor Pro Tern Kurtz moved to ratify and approve the School Resource Officer
Agreement with the Anaheim Union High School District to provide six School Resource Officers
at local high schools for a one year term commencing on July 1, 2023 with up to five automatic
one year renewals; approve an Amendment to the Agreement with Anaheim Union High School
District to provide one additional School Resource Officer; authorize the Chief of Police to
execute and administer the agreement and amendment; and increase the Anaheim Police
Department's Fiscal Year 2023/24 General Fund Expense Budget by $34,375 [annual cost is
approximately $165,000 which would be offset in part by revenue from the school district],
seconded by Council Member Meeks. ROLL CALL VOTE: AYES — 7 (Mayor Aitken and
Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES — 0. Motion
carried.
D182 13. RESOLUTION NO. 2024-022 _ A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM modifying the Rates, Rules and Regulations, which do not
materially increase rate -related revenues, for the sale and distribution of electricity as
adopted by Resolution No. 71 R-478 and most recently amended by Resolution No.
2023-022 and determining that said actions are exempt from the California
Environmental Quality Act (CEQA) pursuant to Public Resources Code Section
21080(b)(8) and Sections 15061(b)(3) and 15273(a) of Title 14 of the California Code of
Regulations.
RESOLUTION NO. 2024-023 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM modifying the Rates, Rules and Regulations, which do not
materially increase rate -related revenues, for the sale and distribution of water as
adopted by Resolution No. 72R-600 and most recently amended by Resolution No.
2023-023 and determining that said actions are exempt from the California
Environmental Quality Act (CEQA) pursuant to Public Resources Code Section
21080(b)(8) and Sections 15061(b)(3) and 15273(a) of Title 14 of the California Code of
Regulations.
Anaheim Public Utilities (APU) General Manager Dukku Lee reported as a public utility, APU is
only allowed by City Charet to recover its cost to serve electricity and water which are used for
operating, maintaining, and upgrading APU's systems. He added bill affordability and long-term
sustainability must be managed to ensure continued high -quality service.
City Council Minutes of March 26, 2024
Page 21 of 38
General Manager Lee reported the wet weather over the last two years has provided the State
with relief to replenish depleted water supplies. He added APU must always be prepared for
long-term droughts and noted in preparation there have been investments by the water supply
industry which in turn have increased costs. He noted this year's rate proposal is a modest
decrease because of capital investments made by APU to restore access to the local
groundwater basin which is the lowest -cost resource. He noted customers are reducing their
overall water usage by 30% on an annual basis even in the face of population increases and
development activity. He noted since usage is dropping it is not fiscally viable to keep rates
wholly dependent on consumption.
General Manager Lee reported on aging infrastructure and highlighted the need to upgrade the
water system is vital. He reported on the costs associated with water infrastructure, adding the
cost of replacing one mile of pipe is currently 20% higher than five years ago and 44% of the
City's water pipes are over 60 years old.
General Manager Lee presented the APU's proposed water rates for the upcoming year, noting
the decreases in base charges and commonality. He noted the customer charge which does not
depend on usage while the other charges including the base charge, commodity, and reliability
do. He reported that the average residential bill is expected to reduce from $73.50 to $72.82. He
added that 80% of the sample bill is based on usage, so customers will still have cause to
conserve.
General Manager Lee reported the electrical industry is in the midst of transformational change
while working towards a carbon -free future by 2045, requiring investments in renewable energy
resources. He noted it is important to transform while still focusing on customer service. He
added there have been challenges during this transformation such as outages and strained
transmission lines. He added APU was able to avoid significant increases by recovering costs
through wholesale sales and minimizing the impact on customer bills.
General Manager Lee reported that similar to water usage, electricity consumption has been
decreasing over the past 20 years. He stated this is due to customers conserving
more taking advantage of APU's rebates, building codes have improved, and solar panels are
more prevalent on rooftops. He added the City has to be strategic about how to recover costs
with reduced usage while continuing to invest in renewable sources. He reported there have
been residential cost increases in Anaheim but noted they are modest compared to the
much larger increases seen in other North Orange County cities where residents pay an
average of 26.4 cents per kilowatt-hour (kWh) while APU customers pay just 18.3 cents per
kWh. General Manager Lee reported APU has taken measures to help protect the City's
electricity from wildfires including undergrounding which has forced other cities to face
bankruptcy.
General Manager Lee noted the proposal does not cause rate increases but allows APU to
recover costs noting a residential customer's monthly bill even with the proposed rate changes
will be consumption -driven. He noted the rate stabilization addresses environmental impacts
and wholesale power costs.
General Manager Lee reported pursuant to the City Charter allows for bill assistance programs
for income -qualified customers. The current threshold is less than $80,400 for an individual. The
discount applies to those in that category, as well as seniors, disabled, and military veterans. He
stated the Income -Qualified Bill Discount for individually metered customers would increase
from 10% to 12% while master -metered customers would see their monthly discount rise from
City Council Minutes of March 26, 2024
Page 22 of 38
$10 to $15 for electricity and $5 to $10 for water. He noted for those not eligible to participate in
the program, the Community Solar Discount Program allows APU to adjust the discount based
on participation and available funding. He added the current participation level in the Community
Solar Discount Program allows APU to double the monthly credit from $10 to $20.
General Manager Lee reported the APU Board conducted a public hearing on rate and rule
modifications on February 28th and recommended the proposal.
DISCUSSION: In response to Council Member Leon, General Manager Lee agreed the item
can be characterized as a technical annual review. He added APU is trying to get closer to how
rates are structured based on usage. He cited telephones as an example of industries evolving
their billing whereas a phone bill used to be a detailed series of long-distance call usage, it is
now typically a single lump sum regardless of usage. He stated APU would not go to this model
because it would discourage conservation efforts.
Council Member Leon inquired whether the City makes a profit on utility services.
General Manager Lee confirmed the City does not make a profit on its services. He added the
City is only eligible to recover costs.
In response to Council Member Leon's inquiry, General Manager Lee clarified if customers
have very low usage, they could see a slight bill increase which is why APU is increasing the
discounts available to income -qualified customers to counterbalance the charges.
Council Member Faessel noted how much more private electric utilities in nearby jurisdictions
charge per kWh as opposed to APU, adding it could be about triple the rate for heavy usage
customers. He thanked General Manager Lee for highlighting the electric bill comparison and
highlighted the City's advantage in water rates. He expressed appreciation that the City has
maintained low costs for residents.
Council Member Diaz stated the proposed rates are good news. He added the State has added
a plethora of regulations in recent years and lamented this good news may be coming to an end
over the coming years. He predicted APU will be coming to the Council in a few years looking
for a large rate increase but it will be due to the State and not the City.
MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2024-022 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM modifying the Rates,
Rules and Regulations, which do not materially increase rate -related revenues, for the sale and
distribution of electricity as adopted by Resolution No. 71 R-478 and most recently amended by
Resolution No. 2023-022 and determining that said actions are exempt from the California
Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(8) and
Sections 15061(b)(3) and 15273(a) of Title 14 of the California Code of Regulations and
RESOLUTION NO. 2024-023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM modifying the Rates, Rules and Regulations, which do not materially increase
rate -related revenues, for the sale and distribution of water as adopted by Resolution No. 72R-
600 and most recently amended by Resolution No. 2023-023 and determining that said actions
are exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources
Code Section 21080(b)(8) and Sections 15061(b)(3) and 15273(a) of Title 14 of the California
Code of Regulations.
City Council Minutes of March 26, 2024
Page 23 of 38
DISCUSSION: In response to Mayor Pro Tem Kurtz's inquiry, General Manager Lee clarified
there is a small amount of variability regarding having a perfectly balanced budget because the
customer base changes frequently. He noted APU does have reserves it can lean on, noting
APU used them heavily during the pandemic and was able to offer a rebate to residential
customers due to the reduction in commercial usage. He added the natural gas spike this past
winter was not passed along to customers because APU leaned on its reserves and wholesale
sales.
General Manager Lee echoed Council Member Diaz's comments about State regulations
negatively impacting APU's costs. He added APU will do its best to mitigate them but
confirmed there will be future rate increases for all utilities and not just APU.
MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2024-022 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM modifying the Rates,
Rules and Regulations, which do not materially increase rate -related revenues, for the sale and
distribution of electricity as adopted by Resolution No. 71 R-478 and most recently amended by
Resolution No. 2023-022 and determining that said actions are exempt from the California
Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080(b)(8) and
Sections 15061(b)(3) and 15273(a) of Title 14 of the California Code of Regulations and
RESOLUTION NO. 2024-023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM modifying the Rates, Rules and Regulations, which do not materially increase
rate -related revenues, for the sale and distribution of water as adopted by Resolution No. 72R-
600 and most recently amended by Resolution No. 2023-023 and determining that said actions
are exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources
Code Section 21080(b)(8) and Sections 15061(b)(3) and 15273(a) of Title 14 of the California
Code of Regulations, seconded by Council Member Rubalcava. ROLL CALL VOTE: AYES — 7
(Mayor Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks);
NOES — 0. Motion carried.
D155 14. Receive and file a final draft report completed by HR&A outlining techniques to increase
the supply of affordable housing in Anaheim and, as appropriate, provide staff with
direction on any desired next steps.
Director of Housing and Community Development Grace Ruiz-Stepter reported the City has
made progress on affordable housing compared to other cities. She advised that staff will
present on these areas along with those where there is room for improvement, offering
opportunities for the Council to provide direction to staff.
HR&A Advisors Los Angeles Office Partner Paul Silvern reported the national firm has looked
into potentially appropriate strategies to assist the City in meeting its Housing Element
objectives, particularly to increase the affordable housing supply.
Mr. Silvern provided background on the firm which provides real estate advisory, economic
development, housing affordability, and public policy consulting firm to improve the quality of life
in cities. He noted the firm uses three strategies including housing strategies, housing policies
and programming, and housing transactions. He reported the City needs to add a large volume
of new housing units, noting more than half of the City's RHNA needs are for moderate- and
lower -income households. He mentioned that HR&A Director Ada Peng will outline 15 proposed
strategies that can be helpful in meeting the challenge of affordable housing production. He
stated the Council will discuss and determine how efficiently and effectively the proposed
City Council Minutes of March 26, 2024
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strategies will have on the City. He noted the evaluation criteria will include alignment,
implementation, feasibility, and impact.
Ms. Peng provided a brief overview of the strategies beginning with potential land use and
regulatory reforms for consideration.
Ms. Peng stated expanding By -Right Housing Zones is a widely approved tool to expand
projects meeting underlying local zoning requirements. She added it is designed for market -rate
housing but is helpful for affordable housing when combined with tools such as incentive zoning
and affordable housing overlays. She added there should be anti -displacement policies in place
with such regulations to protect existing low-income renters. She noted there have been State
legislations adopting that approach including Assembly Bill (AB) 2011 which allows ministerial
by -right approval for affordable housing on commercially zoned land.
Ms. Peng stated another option is allowing for flexibility in design development and zoning
codes to enhance a project's financial feasibility. She cited reducing parking requirements near
transit hubs as an example. She noted providing the flexibilities allows for production capacity
for market -rate housing, can facilitate the creation of affordable units, and implement
complementary strategies. She added the State's density bonus program can offer design
variants to projects meeting its affordable housing criteria, incentivizing developers.
Ms. Peng reported that various land use tools exist to incentivize the production of workforce
housing deemed moderate -income. She noted the City of Culver City has implemented a local
incentive zoning system allowing for additional density in exchange for developers reserving
units for workforce housing. She noted the program can target essential workers earning a
moderate income and not eligible for affordable housing.
Ms. Peng reported on the concepts of incentive zoning programs, typically offering density
bonuses, design variances, and tax abatements in exchange for the inclusion of affordable
housing. She added they can be structured as either mandatory requirements or voluntary
incentives. She cautioned that any mandatory requirements do not make projects financially
infeasible as it would counteract the housing production goal. She noted it is beneficial to
establish tiers of incentives and affordable housing requirements supported by thorough
financial feasibility analysis. She added any incentives should be tailored to local market
conditions to be successful.
Ms. Peng reported on affordable Accessory Dwelling Units (ADU) and Junior ADU programs,
noting the State has streamlined its approval process. She added they can often be considered
affordable units due to their smaller size and construction on land already owned by a
homeowner. She added many jurisdictions have implemented affordable ADU programs to
further incentivize the development of deed -restricted ADUs, citing the policy of the City of San
Diego. She added Napa County has even created an ADU Grant program offering forgivable
loans to a household providing an affordable ADU for five years.
Ms. Peng reported the concept of converting office, hotel, and retail spaces into housing is a
nationwide trend to revitalize underused commercial properties while simultaneously addressing
housing needs. She noted the Statewide Homekey Program utilizes that method to address
homelessness issues. She cautioned that these projects can be expensive. She reported the
City of Los Angeles is working to establish a reuse ordinance expanding its existing conversion
incentives for underutilized commercial buildings.
City Council Minutes of March 26, 2024
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Ms. Peng stated the next category are options for expanding and sustaining funding and
financing sources for affordable housing with the most common being a Housing Trust Fund
and a Housing Loan Fund. She reported the funds are established to offer grant funding for
affordable housing development and preservation projects. She noted local public funds can be
leveraged for public, private, and philanthropic sources.
Ms. Peng reported a local Housing Trust Fund not reliant on federal funding allows for flexibility
on the types of permissible housing activities required to meet local needs. She added those
funds will streamline the underwriting and approval process benefiting developers and
expediting the process.
Ms. Peng reported a Housing Loan Fund offers lower -cost financing to support affordable
housing initiatives, leveraging the revolving nature of such a fund to make a sustained impact.
She added these types of funds can be enhanced by attracting private and non-profit funding
sources but cautioned they also require significant capacity to ensure repayment viability.
Ms. Peng reported commercial linkage fees are another common source to support affordable
housing initiatives, typically paid by developers of commercial projects and are intended to
mitigate potential imbalances between housing and job growth. She added they are frequently
implemented in jurisdictions with a robust commercial real estate market and, if set at an ideal
level, can provide a consistent and reliable funding stream to support affordable housing efforts
without discouraging commercial development.
Ms. Peng reported Property Tax abatement to support moderate -income housing is a commonly
employed strategy because there is limited available public funding for moderate -income
housing. She added for this route it is critical to ensure the affordable benefits outweigh the
foregone Property Tax revenue and can play a key role in preserving naturally occurring
affordable housing.
Ms. Peng reported on post -redevelopment tax increment financing measures, noting this area
has grown since the dissolution of redevelopment agencies as a mechanism to capture future
Property Tax increases to find infrastructure initiatives — including affordable housing. She
added this method works best in areas with strong real estate value growth potential to generate
sufficient revenue. She noted this method often requires voter approval.
Ms. Peng stated there is also a category of her presentation for other tools and strategies not
falling under the previous two sections.
Ms. Peng reported Affordable Housing on Public and Faith -based Owned Land has been the
subject of recent State legislation prioritizing affordable housing development on public surplus
land. She added that recently approved Senate Bill (SB) 4 helped streamline the process for
affordable housing development on land owned by faith -based organizations. She added these
faith -based owned land developments are often 100% affordable units.
Ms. Peng reported on Standardized Development Agreements as a method of increasing
affordable housing by establishing baseline expectations of community benefit on behalf of a
developer. She noted these may require on -site affordable housing provisions, contributions to
local housing trust funds, or donations to affordable housing developments. She added that they
can also reduce negotiation time to help streamline the development process. She stated these
agreements most benefit jurisdictions with many large-scale developments.
City Council Minutes of March 26, 2024
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Ms. Peng reported Land Banks are an option in markets expecting rapid growth. She noted this
approach is best used to safeguard land for affordable housing development. She added this
approach can be a challenge in markets already possessing high land costs and significant
investment interests.
Ms. Peng reported implementing a Housing Dashboard to monitor and evaluate housing
programs and policies that can provide key information to policymakers, stakeholders, and the
community to inform all of the housing program's progress. She added, in addition to current
data, it can provide insights to guide future design and implementation.
Director Ruiz-Stepter acknowledged the report contained a lot of information and added staff
attempted to distribute it early allowing for review time. She added staff took a wider lens than
usual due to the large volume of information to better compare what the City currently does to
the Statewide landscape. She compared the City's current programs which address nine (9) of
the 15 strategies presented by HR&A. She cited the City's strong work with ADUs and hotel
conversions as examples of how the City is already progressing, noting the City's hotel
conversion program was a model for the State's Homekey Program. She reported many of the
HR&A directions where the City has not moved would require Council policy action but stated a
Local Housing Trust Fund concept will be presented at the next City Council meeting.
DISCUSSION: In response to Council Member Rubalcava, Deputy Director of Housing and
Community Development Andy Nogal confirmed the cost of the study was up to $48,000.
Council Member Rubalcava acknowledged the City's work developing housing and providing
housing opportunities for residents. She noted the strategies the City has not currently adopted
and requested examples of agencies adopting those strategies.
In response to Council Member Rubalcava, Mr. Silvern stated the appendixes of the report
include lists of cities where each of the strategies has found success in increasing housing
development. He cautioned that the level of success depends on local housing markets and the
specifics of the program. He clarified that all 15 strategies can contribute to increasing
Anaheim's housing supply. He confirmed well over 100 jurisdictions both within the State and
nationally have inclusionary housing policies and they have proven to improve affordable
housing supply depending on the circumstances of how they are designed. He clarified they do
not have the data on a city -by -city basis in the Report but added there are plenty of studies with
additional information HR&A can provide.
Council Member Rubalcava stated the success of inclusionary housing mandates is unproven
and requested to see these studies. She added she would find it a barrier and not an incentive
for development. She requested additional information on Commercial Linkage Fees.
In response to Council Member Rubalcava's inquiries, Mr. Silvern clarified a Commercial
Linkage Fee is placed on commercial development to offset the affordable housing impacts
stemming from the development's labor supply. He added dozens of State jurisdictions have
maintained such a fee since the early 1980s. He clarified it is a development impact fee, noting
the range of workers in any business spans across the household income spectrum and the
increase in employment also brings the need for housing the businesses' lower -wage workers.
He confirmed the Council could consider such a policy. He clarified some cities impose the fee
only on certain types of businesses while others impose it on all commercial development
depending on how each jurisdiction designs its program. He confirmed it could only legally be
City Council Minutes of March 26, 2024
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imposed on new development moving forward from its time of passage. He added there are
plenty of examples of this type of program all over California.
In response to Council Member Meeks' inquiries, Mr. Silvern clarified that jurisdictions that
choose to operate hotel conversion programs can determine their effectiveness for affordable
housing generation. He clarified their focus was more on the trend of converting under-utilized
commercial office buildings and retail space left vacant partly by the pandemic as opposed to
the motel conversions Anaheim has conducted. He added conversion of existing commercial
spaces is not demarked in their presentation as an affordable housing growth opportunity
because the financial implications of conversions with affordable units are a financial challenge.
He agreed they are expensive conversions, and it can be more feasible to tear down the
structure and start fresh. Director Ruiz-Stepter added the successful motel conversions speak to
the City's innovation, noting Anaheim is one of few jurisdictions with old motels available for
conversion.
Council Member Meeks agreed the City has done great work with its motel conversions to
create transitional and affordable housing. She decried the concept of having blanket flexibility
and design and zoning regulations for potential long-term negative impacts on communities to
solve a short-term problem. She added if the City creates design standards that create
uncomfortable or undesirable living conditions, individuals will not want to live there. She added
the City already has some flexibility against its design and zoning standards through the waiver
process.
Council Member Meeks noted the State has mandated incentives for affordable housing and
expressed concerns if the City wanted to add even more stringent mandates on developers.
She encouraged a greater emphasis on workforce housing to support working families. She
stated she is not a strong ADU advocate, adding the City has had many past issues with
absentee landlords remotely managing small units. She advocated for an emphasis on larger
developments with on -site management moving forward.
Council Member Meeks expressed skepticism over a commercial impact fee because the City
does not have a lot of commercial development relative to the amount of housing, adding the
fee would disincentivize needed commercial developments.
In response to Council Member Faessel, Director Ruiz-Stepter stated the City does have the
potential to create a land bank. She noted the City has a good supply of land and is adding to it
with parcels along Beach Boulevard and elsewhere. She clarified it would not be a traditional
land bank where the City would use empty land on its outskirts but rather through the acquisition
of opportunity sites within its well-built City limits. She noted the Housing Authority has been
successful using a similar model. She added a formal land bank would require a recurring
source of funds adding staff is being methodical about what parcels it does invest in, being
mindful that Redevelopment Agency funds will eventually dry up. She clarified a concept similar
to a formal land bank is what the City has historically done when it had redevelopment
resources.
Council Member Faessel clarified his definition of a housing dashboard explaining that it refers
to project definitions, statuses, and opportunity sites. He requested additional information on
whether that is what is being requested.
Ms. Peng clarified a housing dashboard can be used for different purposes. She noted State
agencies use dashboards to track RHNA status and Homekey funding levels among other
City Council Minutes of March 26, 2024
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pieces of information. She added a potential dashboard for the City could be catered to track the
status of any number of programs or even overall progress in housing production. She added a
dashboard can increase the transparency over where the City's resources are going and their
impact on housing production. Mr. Silvern added it is a useful information system but does not
directly lead to housing production.
Council Member Faessel agreed a dashboard would not directly lead to brick -and -mortar
buildings but stated it would help the process. He asked if the process had already been
implemented by the City.
In response to Council Member Faessel, Director Ruiz-Stepter stated staff have seen
dashboards work in large jurisdictions as a transparent public portal to follow how money is
allocated. She added development is happening through staff releasing Request for Proposals
(RFP) on the City's websites. She cited Orange County's Housing Trust Fund dashboard as a
positive example of what is being proposed by RH&A. She stated a dashboard would be nice to
have but cautioned it does not accelerate development. She added she would not want to
dedicate staffing resources to a dashboard's maintenance. She added that the City's website
serves the same purpose given the resources that staff has available. She noted when the
Council discusses the creation of a Housing Trust Fund and recurring fund sources, a
dashboard would be beneficial for accountability and to show the City's progress.
Mayor Pro Tern Kurtz echoed Council Member Meeks' comments on a commercial linkage fee.
She noted the new Economic Development Department is struggling to bring in new businesses
and she does not wish to make the job even more difficult to attract businesses like
supermarkets designed to serve residents.
Director Ruiz-Stepter stated the purpose of the presentation was to provide the Council with a
variety of options, adding staff fully understood the Council may not appeal to some of the 15
options described.
Mayor Pro Tern Kurtz commended Director Ruiz-Stepter and other City staff members' work in
making affordable housing projects visually attractive as opposed to other projects seen in other
cities. She added the development standard is something Anaheim should preserve. She noted
information on a potential Housing Trust is coming at the next City Council meeting.
In response to Mayor Pro Tem Kurtz's inquiry, Director Ruiz-Stepter stated the next step is to
seek Council direction on whether there were suggested programs that staff should explore
further. She added if the Council is only comfortable with the City's current practices then the
requested action is to receive and file the report.
Council Member Diaz stated government does not build houses but rather the private sector
builds them. He noted a 7,000-square-foot lot in West Anaheim costs $600,000 with the cost of
the house itself bringing the cost of the home to over a million dollars. He advised that loans are
difficult to obtain even for experienced developers.
Council Member Diaz supported expanding residential capacity at current commercial and
industrial locations, increasing density where appropriate, rezoning, reducing approval times,
tax incentives, ADUs, office space converted into housing, and development agreements. He
stated he would oppose any development impact fees and inclusionary housing mandates
because it is already too difficult to build in California and the developer would take their project
to another state. He added the State can help by reducing the California Environmental Quality
City Council Minutes of March 26, 2024
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Act (CEQA) and bringing back redevelopment agencies. He stated the market solution to
reducing the price of housing is to build and keep building.
Council Member Diaz thanked Council Member Rubalcava for her inquiry about the cost of the
study because the Housing and Community Development staff already possesses the expertise
to provide the same report. He noted the concept of bringing in outside experts is good but
reiterated City staff were better equipped to provide the report.
In response to Council Member Leon's inquiries, Director Ruiz-Stepter reported the City has
4,572 affordable housing units. She stated the City is projecting the addition of about 1,000-
1,200 units over the next five years but cautioned it is due to resources from the Redevelopment
Fund which will be fully depleted in three years. She added after three years the City will have a
Public Local Housing Fund of about $3 million once the City's Housing Element receives final
State approval along with about $1,000,000 in federal funds. She stated this would allow the
City to negotiate including 100 affordable units every 3-4 years.
In response to Council Member Leon, Director Ruiz-Stepter agreed it is fair to say the City is
constantly trying to catch up to its RHNA numbers for affordable units because units at the
lowest end of the income spectrum are not created without civic intervention. She confirmed
multiple funding sources are required to build those units, including low-income housing tax
credits.
Council Member Leon applauded Director Ruiz-Stepter and her staff for exploring creative
methods to fund affordable housing projects. He requested additional information on the
multiple sources of funding.
Director Ruiz-Stepter added Anaheim is comparable to other jurisdictions in adding affordable
housing by heavily leaning on the State's competitive Low -Income Housing Tax Credit Program
(LIHTC). She added the City has also had to seek funds from Orange County among other
creative methods of financing affordable housing, including a private Disney -managed trust
fund. She added that CalOptima has also worked to help fund affordable housing while staff has
also been forced to innovatively ask State and federal lawmakers for earmarked funding, adding
United States Congressman Lou Correa recently secured $500,000 for Anaheim and State
Senator Tom Umberg recently secured the City $5.5 million to acquire the Tampico Motel. She
noted the City can pursue other funding sources including Transit Development funds which are
in line with LIHTC funds. She added the City may not qualify for those grants because the City
is not located in a transit -oriented development environment.
In response to Council Member Leon's inquiry, Director Ruiz-Stepter clarified there is not a
clear-cut definition of workforce housing. She noted workforce housing is different from the
deeply subsidized very -low-income housing because it covers a band from 80% to 120% of
Area Median Income (AMI) but added working people can still find themselves as low as the
AMI's 50% tier. Mr. Silvern agreed with this definition, stating it is defined as people who are
members of the workforce and can be a slippery term to define clearly. He stated generally
speaking in the affordable housing world, workforce housing is generally associated with
moderate -income housing of between 80% to 120% of AMI. He confirmed workforce housing is
an important area of focus because LIHTC cannot be used to build it so there are fewer financial
resources available.
City Council Minutes of March 26, 2024
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Council Member Leon noted the presentation included current City policies. He inquired if City
staff has observed programs that are more beneficial than others, noting the topic will be
discussed further by the City Council.
Director Ruiz-Stepter stated she is thankful the Council will consider a Housing Trust Fund at
the next meeting. She added staff will discuss its vision for the fund at the meeting, including
important potential recurring sources of funding. She added an inclusionary component would
make a positive difference, along with looking at General Plan amendments to add value to
multi -family areas. She added when staff looked at the report and weighed what is currently
implemented versus what tools could be added, inclusionary housing and multi -family area
value -adding General Plan amendments were key factors.
In response to Council Member Leon's inquiry, Mr. Silvern noted affordable housing production
accounts for a little more than half of the RHNA numbers. Director Ruiz-Stepter stated there are
not enough rounds of tax credits available during the eight -year sixth RHNA cycle to meet the
full affordable housing goal. She added the City would need about 100 acres of land and far too
much money. She reported staff instead feels that by stretching available resources,
approximately 3,000 affordable units by 2030 is a realistic goal.
Council Member Leon requested information on the number of individuals who work in the City
of Anaheim.
Director of Economic Development Sergio Ramirez reported the City has 27,000 businesses but
could not produce the number of employed persons in the City.
In response to Council Member Leon's inquiry, Director Ruiz-Stepter stated the City cannot
claim to have a housing unit for every low-income job to be added to the City in the future. She
stated staff's goal is to consistently produce housing to impact the current housing issues. She
noted after the dissolution of the Redevelopment Agency in 2012 nothing was produced until
about 2016, exacerbating the current issue. She stated the City is currently producing units but
added even 50% of jobs would be hard for staff to match with its current financing and
bandwidth. She noted it will cost about $200 million to $300 million to produce even the
optimistically realistic goal of 3,000 affordable units by 2030. Mr. Silvern added it is important to
also consider the substantial existing need for affordable housing let alone a growth in future
needs due to new businesses.
In response to Council Member Leon's inquiry, Director Ruiz-Stepter confirmed Housing and
Community Development staff came to the $200 million to $300 million figure along with the
3,000-unit figure by assessing every source of potential funding including having perfect results
on its requests for State LIHTC funds.
Mayor Aitken stated the entire Council recognizes the need for more housing. She noted the
City has an Ad Hoc Housing Committee and theorized it could assist with recognizing the
strategies that should be implemented. She stated she is struggling to find a consensus on what
Anaheim is missing.
In response to Mayor Aitken's inquiry, Mr. Silvern stated access to financial resources is one of
the City's biggest needs, particularly after the affordable housing funds from the Redevelopment
Agency vanished in 2012. He stated the City should highly prioritize finding new funding sources
and leverage them through projects creating multiple housing units.
City Council Minutes of March 26, 2024
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In response to Mayor Aitken's inquiries, Director Ruiz-Stepter reported when the
Redevelopment Agency was shuttered in 2012 it was contributing $15 million annually towards
affordable housing. She referenced a previous number of $17 million she recently provided to
Council Member Rubalcava was a combination of Redevelopment and other funds. She stated
the end of the Redevelopment Agency's affordable housing funding has been a lost investment
of $165 million since 2012 but added the number has not been adjusted for inflation. She added
that $165 million is the aggregate of what the City would have received assuming the
Redevelopment Agency continued as it was.
Mayor Aitken echoed comments that developments will not grow by themselves and the
purpose of the study is to find the proper strategies that the City can use to stimulate growth.
She stated replacing the City's funding stream is imperative, and adding the proposed Housing
Trust Fund could contribute to the issue. She added that alone will not provide enough money
so the City needs to be flexible in identifying multiple funding streams for the potential Housing
Trust.
In response to Mayor Aitken's inquiries, Director Ruiz-Stepter reported the model facilitated by
the Housing Authority is for developments where all affordable housing units are in the same
complex. She added, except for density bonus units, when the City is facilitating the matter all
low-income families are in the same complex. She clarified the developments are spread
throughout the City and the staff tries to balance its developments into different pockets of the
City but when the Housing Authority manages the project, all affordable units are in the same
building. She reported staff are utilizing a new model at the corner of Beach Boulevard and
Lincoln Avenue combining home ownership with some rental assistance and a little retail. She
added if the blended model is successful the Housing and Community Development
Department will work with Economic Development on a similar concept at the intersection of
Anaheim Boulevard and Ball Road. She stated the current model of all of the units under 60% of
AMI being in the same building is the LIHTC model required to receive funding.
Mayor Aitken stated incentive zoning or inclusionary zoning is requesting a community benefit
no different than what is asked of any other large project. She added what is most important to
her is treating everybody equally. She reported housing projects are coming to the Council
where some developers are doing 20% affordability as their community benefit while others are
doing nothing. She theorized as a developer she would want to know what her requirements
would be before making a development proposal in Anaheim. She added last year the Council
discussed what is the pressure point and noted the Council only looked at Orange County and
not Statewide which uses a percentage requirement instead of an in -lieu fee. She stated this will
be an important business concept going forward.
Mayor Aitken responded to Council Member Diaz's comment about how the government does
not build housing by adding every time the City has to ask the State or federal government for
money to build those projects with tax dollars being used to subsidize the affordable units. She
stated the City should look for a way to spread the cost around more fairly, being realistic about
the fact the City will soon run out of money.
In response to Council Member Rubalcava's inquiry, Director Ruiz-Stepter clarified that the
RHNA numbers are provided to the City and the Planning Department sets the framework
through methods like overlay zones so the units can be produced. She added the Housing
Authority then looks at how the low-income and very low-income units in particular can be built,
noting they cannot be produced without the City's assistance. She noted Anaheim has a history
City Council Minutes of March 26, 2024
Page 32 of 38
of exceeding its RHNA numbers for market -rate housing. She added staff works to the extent
they can to develop those units to meet the RHNA numbers.
In response to Council Member Rubalcava's inquiries, Director Ruiz-Stepter clarified an
inclusionary element is just one of many ways to help the City reach its affordable housing
goals. She stated the City is creating value for the developer by rezoning land for residential
usage and in return asking for affordable units in exchange for creating this developmental
value. She stated this helps meet RHNA's needs. She reported only a few developers have
done this voluntarily because the City does not have a policy. She stated the City held a round
table with developers a few years ago including Council Members Faessel and Diaz and the
feedback received was the developers wanted a level playing field and knowing for certain what
the inclusionary housing policy is. She confirmed the round tables contained developers aiming
to build for a variety of income levels. She clarified the feedback from developers was if the City
wants them to help with affordable housing it should adopt a policy to create a level playing
field. Mr. Silvern clarified the level playing field as opposed to project -by -project decision -
making. He added the developers could qualify for a density bonus from the State depending on
how much affordability is in the development.
In response to Council Member Rubalcava's inquiry, Mr. Silvern clarified the State's density
bonus' value is a sliding scale depending on percentages and income levels. He added it is
allowable by the State but not a requirement. He noted if the developer provides the requested
percentages, the City is required to provide the density bonuses.
Council Member Rubalcava stated if the City mandated current State policies like inclusionary
housing that would take away the City's leverage by not allowing for any give-and-take over
areas such as parking requirements. She stated this hurts low-income communities even more
when the City may think it is helping those communities with low-income development. She
agreed more funding for Community Development would be beneficial but expressed doubts a
local inclusionary housing policy would help create 733 units a year because it would tie the
City's hands in negotiations. She said in -lieu fees are shakedowns of developers.
Council Member Rubalcava endorsed the workforce housing segments of the presentation and
noted the terms workforce housing and affordable housing are quite different. She clarified her
focus is mid -market workforce housing for groups like APD officers, AF&R firefighters, teachers,
and City employees.
Mr. Silvern clarified that the AMI tiers are based on household income and not just an
individual's salary.
Council Member Rubalcava advised that "workforce" is not an official term appearing in the
Housing Element.
Mayor Pro Tern Kurtz reported on the story of a District 4 developer on Midway Drive whose
plan started with no affordable housing and all market -rate units but when the developer had
trouble fitting the development to the lot, they agreed to include affordable housing and the City
made concessions about all of the other concerns in exchange.
In response to Mayor Pro Tern Kurtz's inquiries, Director Ruiz-Stepter clarified that the 4,572
affordable units total is the City's current inventory. She added the 4,572 units have a covenant
requiring affordability. She agreed staff would not know about naturally occurring affordable
units such as a family duplex.
City Council Minutes of March 26, 2024
Page 33 of 38
Mayor Pro Tern Kurtz stated as the City builds more affordable housing it also needs to protect
the stock it already has from turning into slums and protecting renters.
In response to Council Member Faessel's inquiry, Deputy City Manager/Planning and Building
Director Ted White confirmed the City of Santa Ana's RHNA number is far lower than
Anaheim's. He advised that the RHNA formulas are complicated. He noted the City of Garden
Grove is higher than Anaheim's. He stated the City of Fullerton has about 14,000 units with half
of Anaheim's land area. He stated Anaheim's RHNA number is not as high as it could have
been in comparison to neighboring cities. He cautioned the RHNA number for Anaheim could
have been 27,000 but it was lowered because of some of the community's income levels.
In response to Council Member Faessel's inquiry, Deputy City Manager White stated the City's
RHNA number is not a realistic target but rather an aspirational one. He clarified the City's
quantified objective is about 8,000 for the sixth cycle based on past performance. He stated the
City -generated figure is still aspirational but more realistic. He added it is still subject primarily to
the strength of the private market and variables completely out of the City's control like interest
rates.
In response to Council Member Faessel's inquiries, Director Ruiz-Stepter confirmed staff's
estimate was 90-100 acres to meet the full RHNA total. She clarified quantified objectives are
figures the City developed internally. She noted staff has listed 900 units in the quantified
objectives.
In response to Council Member Faessel's inquiry, Director Ruiz-Stepter confirmed many of the
City's available parcels are small, oddly shaped, and hard to place a major development on.
She added the City has had success by assembling sites using adjacent properties but noted
this takes time.
Council Member Faessel expressed concerns about the amount of available land and its
scattered locations. He stated the lack of suitable acreage is as big of an issue as the lack of
funding.
In response to Council Member Faessel's inquiry, Director Ruiz-Stepter confirmed even if the
City could find the money it would still be difficult to find enough available land without paying
over -market prices to potential sellers. She agreed finding enough open land in a built -out City
would be a challenge. She added the best parcels are generally about 2-3 acres in size. She
agreed his concerns about the amount of available land are valid.
Council Member Meeks noted many of the City's very low-income and low-income
developments provide services for residents such as on -site daycare and classes, helping to
create success for those families. She stated she likes this model and that replicating it in dense
developments is important. She requested these developments be spread out across the City.
In response to Council Member Leon's inquiries, Director Ruiz-Stepter confirmed the City has
previously purchased buildings and converted them to affordable housing units. She cited
Hermosa Village Apartments and Avon Dakota Apartments as examples. She added this
neighborhood preservation model is dormant because of the number of resources required. She
cited the success of the recent motel conversions.
Mr. Silvern stated the City also has a lot of underdeveloped commercial land in failing shopping
centers. He added jurisdictions across the State have been rezoning and using sites like these
City Council Minutes of March 26, 2024
Page 34 of 38
for market rate and affordable housing so it is not entirely an issue of looking for vacant land to
build on.
Council Member Leon echoed Mayor Pro Tem Kurtz's comments about remembering to
continue to invest in existing neighborhoods to ensure their quality of life.
In response to Mayor Aitken's inquiry, Council Member Meeks suggested it would be prudent to
see what happens with the Housing Trust Fund before they have another Ad Hoc Housing
Subcommittee meeting.
MOTION: Council Member Faessel moved to receive and file a final draft report completed by
HR&A outlining techniques to increase the supply of affordable housing in Anaheim, seconded
by Council Member Meeks. ROLL CALL VOTE: AYES — 7 (Mayor Aitken and Council
Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES — 0. Motion carried.
PUBLIC HEARINGS:
15. DEVELOPMENT AGREEMENT NO. 99-01
PREVIOUSLY APPROVED POINTE ANAHEIM INITIAL STUDY, MITIGATED
AGR-1263.1 DECLARATION. AND ADDENDA
PROJECT LOCATION: The property is located at 321 West Katella Avenue and 300,
400, and 500 West Disney Way between Disney Way and Katella Avenue,
approximately 700 feet east of Harbor Boulevard.
REQUEST: Pursuant to Resolution No. 82R-565, governing the consideration of
development agreements, the City Council will consider establishing a time schedule
for GardenWalk Hotel I, LLC, GardenWalk Hotel II, LLC, and Westgate Resorts
Anaheim, LLC to comply with the terms and conditions of Development Agreement No.
99-01.
ENVIRONMENTAL DETERMINATION: The City Council will consider whether to find
and determine that the previously approved Pointe Anaheim Initial Study and Mitigated
Declaration and Addenda, serve as the appropriate environmental documentation for the
request (continued from Council meeting of January 23, 2024, Public Hearing Item No.
28).
RESOLUTION NO. 2024-024 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing a performance time schedule for the
commencement and construction of Hotel 2 as set forth in the second amended and
restated Development Agreement No. 99-01 between the City of Anaheim and Garden
Walk Hotel I, LLC and determine that the previously approved Pointe Anaheim Initial
Study and Mitigated Negative Declaration (IS/MND), and associated Addenda, are the
appropriate environmental documentation for this request.
RESOLUTION NO. 2024-025 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM establishing a performance time schedule for the
commencement and construction of Vacation Ownership Resort No. 1 as set forth in the
second amended and restated Development Agreement No. 99-01 between the City of
Anaheim and Westgate Resorts and determine that the previously approved Pointe
Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated
Addenda, are the appropriate environmental documentation for this request.
City Council Minutes of March 26, 2024
Page 35 of 38
Deputy City Manager White reported the item is to extend the performance timelines for the two
remaining hospitality components of the Anaheim GardenWalk Project — GardenWalk Hotel II
and the Westgate Vacation Ownership Resort. Deputy City Manager White reported Anaheim
GardenWalk is a 20-acre specialty retail, dining, hospitality, and entertainment center located in
the Anaheim Resort. He added in 1999 the Council approved the Pointe Anaheim Project which
has since been renamed the Anaheim GardenWalk Project. He noted the project was scheduled
to include approximately half a million square feet of retail, dining, and entertainment space,
three hotels with up to 1,266 rooms, a 3,200 parking space garage, and a transportation center.
Deputy City Manager White reported the project and Development Agreement have been
amended several times since 1999 with the developer assigning the Agreement to STC
GardenWalk LLC, GardenWalk Hotel I, LLC, and Westgate Resorts Anaheim, LLC. He stated
the Council is required to annually determine if the property owners have complied in good faith
with the terms and conditions of the Agreement, including timeframes for development
milestones.
Deputy City Manager White reported that at the December 5, 2023, Council meeting, the
Council determined the project was not in compliance with the 2023 review period due to the
two remaining hotel components and directed staff to provide the applicant notice of intent to
establish new development timeframes.
Deputy City Manager White reported that STC GardenWalk, LLC was responsible for the retail,
dining, entertainment center, and parking structure components of the project. He reported
those components have all been constructed and have no outstanding obligations under the
Agreement.
Deputy City Manager White reported Westgate Resorts Anaheim, LLC is responsible for the
development of a 399-unit vacation ownership resort to be constructed on top of the existing
parking structure. He stated the Agreement required the developer to obtain a Building Permit
by December 27, 2019, and have the resort open for business by December 27, 2023. He
added Building Permits were obtained but have since expired and the project was not
constructed. He reported that the developer is proposing changes to the project's design
requiring a new final site plan. He stated the developer is requesting an extension of the timeline
to require a Building Permit by April 15, 2025, with the resort to be opened for business 24
months after construction commences.
Deputy City Manager White reported that GardenWalk Hotel I, LLC, is responsible for the two
hotels. He reported the first hotel, the 466-room JW Marriott, was opened in August of 2020. He
stated the Agreement required the developer to begin construction on the second hotel by
November 12, 2023, and be open for business by May 12, 2026. He reported the developer's
current request is to have the construction commence by November 12, 2025, with the hotel to
open for business by May 12, 2028.
Deputy City Manager White stated, that due to the challenging market conditions cited in the
developer's letters of request, staff believes the additional time would assist both parties in
delivering high -quality hospitality projects enhancing the GardenWalk Project and overall Resort
area.
In response to Mayor Aitken's inquiry, no Council Members disclosed ex parte communications.
At 9:40 p.m., Mayor Aitken opened the public hearing.
City Council Minutes of March 26, 2024
Page 36 of 38
colLAborate, Inc. Founder and Chief Executive Officer Nicole Kuklok-Waldman spoke on behalf
of Westgate Resorts Anaheim, LLC. She thanked the Planning Department staff for working
with them on the revised timeline, noting it has been a complicated market process but they are
excited to be moving forward. She requested the Council approve the new timeline.
GardenWalk Hotel II, LLC Manager William O'Connell stated they are requesting a two-year
extension to develop the second parcel of land. He advised that current economic conditions
are making it tough for development with high interest rates and other factors. He thanked the
Council for its time.
City Clerk Bass noted no electronic comments were received for Public Hearing Item No. 15.
Marc Herbert inquired if the delay affects the project's EIR. He stated the project bumps into the
City's housing problem. He stated the City has the hardest time producing very low-income and
low-income housing with only 105 units worth of permits issued for these categories in 2023. He
added this addition should be taken with a grain of salt after losing the 48 units in the Walnut
Village Apartments. He noted these figures are out of 965 overall housing units approved in
2023. He added this rate will still leave the City short of even its lower internal quantified
objectives in the sixth cycle of the Housing Element. He stated this is a growing problem. He
reported this is a rare window of opportunity to look over Disney's long-term plans and does not
see the need to rush in overlapping the large housing problem with consideration of
Disneyland Forward.
At 9:46 p.m., Mayor Aitken closed the public hearing.
MOTION: Council Member Faessel moved to approve RESOLUTION NO. 2024-024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a
performance time schedule for the commencement and construction of Hotel 2 as set forth in
the second amended and restated Development Agreement No. 99-01 between the City of
Anaheim and Garden Walk Hotel I, LLC and determine that the previously approved Pointe
Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda,
are the appropriate environmental documentation for this request and RESOLUTION NO.
2024-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
establishing a performance time schedule for the commencement and construction of Vacation
Ownership Resort No. 1 as set forth in the second amended and restated Development
Agreement No. 99-01 between the City of Anaheim and Westgate Resorts and determine that
the previously approved Pointe Anaheim Initial Study and Mitigated Negative Declaration
(IS/MND), and associated Addenda, are the appropriate environmental documentation for this
request.
DISCUSSION: Council Member Rubalcava thanked staff and the businesses for their work to
rectify the situation with this extension. She noted that TOT revenue is very important to the City
in particular to develop affordable housing. She encouraged both applicants to choose to
contribute to the ATID. She expressed her support for the item.
City Council Minutes of March 26, 2024
Page 37 of 38
MOTION: Council Member Faessel moved to approve RESOLUTION NO. 2024-024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a
performance time schedule for the commencement and construction of Hotel 2 as set forth in
the second amended and restated Development Agreement No. 99-01 between the City of
Anaheim and Garden Walk Hotel I, LLC and determine that the previously approved Pointe
Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda,
are the appropriate environmental documentation for this request and RESOLUTION NO.
2024-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
establishing a performance time schedule for the commencement and construction of Vacation
Ownership Resort No. 1 as set forth in the second amended and restated Development
Agreement No. 99-01 between the City of Anaheim and Westgate Resorts and determine that
the previously approved Pointe Anaheim Initial Study and Mitigated Negative Declaration
(IS/MND), and associated Addenda, are the appropriate environmental documentation for this
request, seconded by Council Member Rubalcava.
In response to Council Member Leon's inquiry, Deputy City Manager White confirmed
everything about the project has been approved, including the environmental analysis, and the
Council is only voting on giving the applicant more time to complete their work. He added all
entitlements are in place.
MOTION: Council Member Faessel moved to approve RESOLUTION NO. 2024-024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing a
performance time schedule for the commencement and construction of Hotel 2 as set forth in
the second amended and restated Development Agreement No. 99-01 between the City of
Anaheim and Garden Walk Hotel I, LLC and determine that the previously approved Pointe
Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda,
are the appropriate environmental documentation for this request and RESOLUTION NO.
2024-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
establishing a performance time schedule for the commencement and construction of Vacation
Ownership Resort No. 1 as set forth in the second amended and restated Development
Agreement No. 99-01 between the City of Anaheim and Westgate Resorts and determine that
the previously approved Pointe Anaheim Initial Study and Mitigated Negative Declaration
(IS/MND), and associated Addenda, are the appropriate environmental documentation for this
request, seconded by Council Member Rubalcava. ROLL CALL VOTE: AYES — 7 (Mayor
Aitken and Council Members Kurtz, Diaz, Leon, Rubalcava, Faessel, and Meeks); NOES — 0.
Motion carried.
REPORT ON CLOSED SESSION ACTIONS: None
PUBLIC COMMENTS (non-aaenda items): None
COUNCIL AGENDA SETTING:
Council Member Rubalcava requested recognitions for the Anaheim Police Department Baker to
Vegas running team, for the Hardin Family for donating a vehicle to a grieving family who lost a
family member, and a parcel audit of vacant commercial properties in Anaheim related to
property maintenance.
City Council Minutes of March 26, 2024
Page 38 of 38
ADJOURNMENT:
At 9:51 p.m., Mayor Aitken adjourned the City Council in memory of Andres Bonilla Pacheco.
Respectfully submitted,
her sa Bass, CIVIC
City lerk
Susana Barrios
From: jodiemosley
Sent: Friday, March 22, 2024 6:03 PM
To: Public Comment <publiccomment@anaheim.net>
Subject: [EXTERNAL] Beach blvd. District 1
You don't often get email from Learn why this is important
Warning: This email originated from outside the City of Anaheim. Do not click links or open attachments unless you recognize
the sender and are expecting the message.
I can see I am not the only one who is commenting on the Anaheim Lodge Motel demolition on Beach blvd. It's about
time.
Look at the motel interior photos...l cannot fathom how the city allows this to continue with another 14 more. The
Anaheim Observers article shows the horror of sex trafficking, drug use, crime and prostitution that has been so
prominent at these motels for DECADES, yet every mayor, council person and representative has done nothing but
promise to demo them for decades, now they want applause while 14 other non compliant motels wait.
I agree with the comment that if the city had demo'd them decades ago, imagine the lives they could have saved, the
crimes that could have never happened, and the money they could have saved.
The millions poured into paying off these corrupt landlords and rehoming transients could have been used to build
Beach blvd into the goldmine it should be.
39 Commons would have been built, instead Stanton got Rodeo 39 built! West Anaheim should have had Portos! Garden
Grove, Stanton and Buena Park are building, building, building.
It's just such a shame no one was a strong enough leader to get it done. But Anaheims packing House area, places by city
hall and Disneyland never seem to worry about money or finishing a project. Anaheim Hills gets special attention too.
So I'm curious how they can explain away allowing this motel corruption this to go on for decades.
I can only pray someone will see the value of Beach blvd, its thoroughfare to Huntington Beach, and its use by tourists,
freeway access, and a draw between Knotts Berry Farm and Disneyland.
I would be so embarrassed that they never cleaned Beach up completely, finished the promised 39 Commons on Beach
and Lincoln, or stood up for a part of the city that has been here from the beginning.
If we had it our way, every motel on Beach long earned its right to be leveled by non compliant owners, instead they got
paid millions instead of the city building a new place to go for entertainment, restaurants, homes, shopping, safe
walking places and good solid businesses.
I'm glad I'm not the only one to feel this way. Look at the motel room photos in that article! Shameful Anaheim, this
should have been done along time ago.
Many more motels to go.
Get on it.
Stanton did. Garden Grove did.
Buena Park and Westminster did.
We dare you to step up and finish the job.
Sincerely,
More West Anaheim Residents
Sent from my T-Mobile 5G Device