2013/09/24ANAHEIM CITY COUNCIL
REGULAR MEETING OF SEPTEMBER 24, 2013
The regular meeting of September 24, 2013 was called to order at 3:00 P.M., and adjourned to
4:00 P.M. for lack of a quorum. The regular adjourned meeting of September 24, 2013 was
called to order at 4:04 P.M. in the chambers of Anaheim City Hall. The meeting notice, agenda
and related materials were duly posted on September 20, 2013.
PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring
and Kris Murray
ABSENT: Mayor Pro Tern Eastman
STAFF: City Manager Marcie Edwards, City Attorney Michael Houston and City
Clerk Linda Andal
WORKSHOP — UNDERGROUND CONVERSION PROGRAM 5 -YEAR PLAN:
Dukku Lee, Acting General Manager, reported Anaheim's underground conversion program had
been established in 1990 and was now at the halfway mark with 112 out of 220 circuit miles
completed, funded through a four percent utility surcharge. To date, he added, $185 million had
been expended on this program which benefitted Anaheim's electric reliability, improved
aesthetics on major roadways and along with that beautification effort, saw property values
increased and street visibility improved. The actual cost, he explained, was about $2.50 a
month for a 1,800 square foot home for Anaheim's ratepayers.
The approval process for potential undergrounding projects included a subcommittee of several
Public Utility board members and Planning Commissioners who evaluated projects in detail and
forwarded their recommendation to the larger Public Utility Board and eventually to City Council
for final approval; adding that the Utility Board's recommendations were presented for council's
approval on the consent agenda. Project selection criteria considered by the subcommittee
included engineering and reliability, one of the major benefits for ratepayers, project
coordination to tie into a street widening or intersection improvement when appropriate,
geographic diversity to insure projects were spread throughout the city, and funding, a pay -as-
you-go program which insured funds were collected and used appropriately. He explained
customer notification was an important aspect of these projects as the construction period was
typically 12 to 18 months long and would likely be disruptive to residents. To that end, staff
provided several outreach methods to apprise residents of what to expect with letters sent in
advance and numerous signs posted. Customer feedback was always sought from the
residents and businesses and findings incorporated into the process to minimize impacts. As
much as possible, he emphasized, the Department tried to minimize traffic impacts and when
construction occurred at major intersections as well as freeway on /off ramps, construction was
scheduled in the evenings or on weekends.
For those residents not living on major thoroughfares, Mr. Lee stated the Home Undergrounding
Program was developed, which offered residents the ability to underground wires crossing their
back yards and as long as they were doing this in conjunction with other types of improvements
on their property, the cost was minimal on their part. Public Utilities performed the electrical
work at no cost to the homeowner and to date, 97 residents had used this program.
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Currently, he reported, there were two projects completed, four under construction, two in the
design phase, four being planned, and one new project proposed for council's consideration, all
of which were spread throughout the city.
PROJECTS COMPLETED: The city construction piece of Lincoln /Magnolia, a $15.7 million
project, 6.2 circuit miles, was completed since May 2012, and staff was working on the phone
and communication equipment with five vendors having completing their portions and three
remaining vendors to finish their work within six to nine months. Mr. Lee added the La
Palma /Brookhurst project was completely finished and utility poles removed as illustrated in
photos.
PROJECTS IN PROGRESS: Brookhurst /Katella, a $7.8 million project, was under construction,
extending from Orange to Katella Avenue, 2.3 circuit miles. A portion was in coordination with a
Public Works street widening project and the undergrounding already completed on that
segment to ensure wires were undergrounded before the street widening began. He noted
Southern California Edison (SCE) had some facilities along this area (county was on the west
side of the street) which would be removed per their franchise commitment. Douglas was also
under construction, a $.8 million project that had been moved up in the schedule because
Douglass was going to be widened and lowered with the power poles undergrounded to be out
of the way for those street improvements. Lincoln /Dale, a $13.1 million project was also under
construction to be extended to the west city limit to clean up Lincoln on the west side of town.
Mr. Lee noted that SCE had some overhead facilities there as well and would also be removing
them as part of their franchise obligation. He added the Lincoln segment was in construction
and staff was finalizing plans to arrange for the communication companies to provide their
designs so staff could install on Dale as well, with the bid award to be considered by council at
the end of this year and construction to begin next January. West/Westmont was a $6.6 million
project that included Westmont Elementary on the west and Anaheim Union High School on the
southern portion of the project.
DESIGN: Euclid, a $4.8 million project with 1.3 circuit miles was in the design phase with staff
finalizing easements and coordinating the work schedule with Loara High School. Mira Loma, a
$14.1 million project, 6.7 circuit miles, would form a district with council's approval in a couple of
months. Mr. Lee indicated staff was looking to accelerate the segment between the 57 and 91
freeways to get civil structures in place and overhead facilities removed, although the poles
would remain because of phone and other communication wires yet to be addressed. He added
that these steps would limit disruption in terms of coordinating construction activities. In addition,
all the civil work was completed from the Canyon Power Plant easterly, which left some private
property work and the installation of electrical facilities remaining before the poles could be
removed.
NEW PROJECT PROPOSED. The proposed new project was on Santa Ana Canyon from
Imperial to Lakeview, a $9 million project, 1.8 circuit miles. Mr. Lee noted staff and the
subcommittee considered five or six different projects before recommending Santa Ana Canyon
for two reasons; i.e. it was running up against its capacity and the Royal Oak pole was located
on a steep incline which made maintenance efforts challenging. He indicated the capacity on
this segment was about three megawatts which could serve about 600 homes and new
underground facilities would double that capacity to about 1,200 homes. Staff would continue to
monitor the project but believed the five year time frame would address capacity needs and
scheduled it at the end of this five year plan.
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PLANNED PROJECTS: The planned projects included Lincoln /Rio Vista, an $11 million, 3.1
circuit mile project, accelerated last year as part of the five year plan presentation. He noted
there had been much interest in this project with residents urging it be completed as soon as
possible with the start date moved up for construction in 2015. This project, he explained,
would also clean up Lincoln on the east side, so utilities on Lincoln would be undergrounded
from one end of the city to the other. The next planned project was Cerritos /Nutwood, a $3.2
million, .8 circuit mile, a major arterial and a collector roadway that were heavily congested with
power poles. La Palma /Sunkist, a $10.3 million, was a three mile project that would take
Sunkist to the 91 Freeway and over to La Palma. Ball /Brookhurst was a $7.5 million project with
1.9 circuit miles that would address the segment between Euclid and Brookhurst and clean up
the power poles along Ball Road. Olive/Vermont was a $6.7 million, 1.4 circuit mile project that
extended between Anaheim Boulevard and west of State College Boulevard, a mix of residential
and commercial customers. Mr. Lee remarked it began at Anaheim and west of
State College Boulevard and was a mix of residential and commercial customers. The final
planned project was La Palma /East, a $ 4 million project, 1 circuit mile which would eliminate
power lines from La Palma all the way to East Street
Each of the council members expressed their appreciation for the work performed in a program
that contributed to the aesthetics of the city and the reliability of the electrical system.
Council adjourned the workshop at 4:27 p.m., reconvening the meeting at 5:06 P.M.
INVOCATION: Rajan Zed, Universal Society of Hinduism
FLAG SALUTE: Council Member Lucille Kring
PRESENTATIONS: Recognizing the 2013 Flag Day First Place Essay Winners
Maria McFarland introduced the first, second, and third place essay winners from each of the
schools participating in the "What the American Flag means to me" essay contest. Those
winners, she explained, had been invited to march in the Flag Day Parade last June and be
recognized during the Flag Day Celebration program.
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Recognizing the Women's Division, Anaheim Chamber of Commerce, on
their 50th Anniversary
Recognizing the Women's Division, Anaheim Chamber of Commerce,
Annie Anaheim Accolade Award recipients
Recognizing Officer Raymus Payton for his service with the California
Highway Patrol
Proclaiming October 7, 2013, as World Habitat Day
Proclaiming September 27, 2013, as World Tourism Day
Proclaiming October 5, 2013, as World Teachers Day
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Proclaiming October 2013, as Domestic Violence Awareness Month
Proclaiming October 7 - 11, 2013, as International Walk to School Week
Proclaiming October 10, 2013, as Opening Day for the Anaheim Ducks
Sgt. Todd Kridle, Anaheim Family Justice Center, was grateful for and expressed his
appreciation to Council for their support of the Justice Center.
Sharon Ellis, Habitat for Humanity, thanked Council for recognizing World Habitat Day,
remarking Habitat volunteers had built over 600,000 homes around the world.
Kelley Barrett, Anaheim School District, accepted the International Walk to School week
proclamation.
Aaron Teats, Anaheim Ducks, remarked this year was the 20 anniversary of the Ducks
organization, an appreciative community partner of the city of Anaheim.
Tom Morton, Executive Director of Convention, Sports and Entertainment, spoke to the
importance of the tourism industry, generating $6 billion in revenues annually and sustaining
over 40,000 business related jobs in this region.
Jeff Hittenberger, Orange County Department of Education, emphasized Orange County's
20,000 teachers who served more than 500,000 students in 900 schools, all of whom
contributed to the quality of life for Orange County children and its many communities and he
appreciated city council's recognition of them.
ADDITIONS /DELETIONS TO THE AGENDA Council Member Brandman requested item 34 be
moved up on the agenda and considered before Item 32; city council concurred.
PUBLIC COMMENTS (all agenda items):
Cecil Jordan Corcoran, Outreach Homeless Ministries, commented on his personal financial
challenges and related bible studies.
Pat Buttress introduced herself as the Southern California Edison representative, stating she
was looking forward to interacting with staff on any matters of interest, adding she was
impressed with the utility undergrounding program established by the city and appreciative of
the workshop.
Mark Daniels, resident, spoke in support of having a dialogue on Angels Baseball negotiations,
asking for a reevaluation of the terms prior to any decision being made.
William Fitzgerald, Anaheim Home, objected to the use of $4.5 million in police- confiscated
funds, stating they were used to purchase a 13- passenger Cessna airplane and to replace items
in the police budget that had been removed in previous years and for those reasons was in
violation of the regulation that purchases must not be used to increase or supplement the police
budget.
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Steve Arnold, Anaheim Orange County Visitors & Convention Bureau, spoke to the economic
benefits gained from having a major league baseball team operate out of Anaheim. He added
2012 marked the 10 straight year in which that franchise drew more than 3 million fans in
attendance during a regular baseball season and that it served as an economic engine for local
businesses and a source of local employment. He supported going forward with the
Memorandums of Understanding for Angels Baseball as approved on September 3, 2013.
Bob Tiscareno spoke to the negative impacts caused by the large homeless population camping
between Harbor, State College, La Palma and Orangethorpe, urging council to take action to
stop public nudity, drug use and other unacceptable behavior from taking place in city parks and
offering a solution to address those issues.
Richard Chavez, former council member, was critical of unprofessional behavior by members of
city staff and the council majority towards Mayor Tait while he clarified his position on Angels
Baseball negotiation terms.
Rand Christiansen addressing Angels Baseball negotiations urged the city to work together and
find a third and best alternative that would benefit the City as well as the Angels organization.
Erica Miller, Chance Theater, announced the opening night performance for this season would
be the premier of Time Stands Still by Pulitzer playwright Donald Margulies and invited the
community to attend on October 4th
Jill Kanzler, SOAR, addressed the economic value in retaining the Anaheim Angels, remarking if
they left, there would be a direct loss of $120 million a year. She encouraged the city to work
together in an open, transparent process, with community input in an effort to keep the Angels
organization in Anaheim for many years to come.
Zia, addressed her comments to Item No. 29. She spoke specifically on behalf of the homeless
with mental illnesses, remarking they found a way to survive every day against all odds and she
objected to Anaheim's solution for its homeless issue by proposing efforts that further
compromised these individuals trying to overcome life's challenges.
Ron Thomas objected to Item No. 29 as well stating there were other ways to address the
homeless issues and he would be glad to discuss his solutions with the City. Council Member
Murray responded that she was not involved in drafting this ordinance and wanted the audience
to understand that the city was working collaboratively with social service organizations and law
enforcement countywide to provide quality programs for the homeless and to humanely address
the impacts of the homeless population.
Gary Bloomfield, resident, discussed the impacts of living next to a "vacation rental by
homeowner" who received $400 to $600 a night, with a three -day minimum stay, and up to 12
people at a time. This was a commercial venture in a zoned residential neighborhood and he
suffered the direct impacts of this business, asking the city to provide some relief and pointing
out no bed tax was being collected for this type of business. Mayor Tait requested the City
Manager look into this matter and report back to council on options.
Dorothy Rose, Orange County Symphony, announced the after - school music education was
beginning in 14 of Anaheim's schools, with 1,074 students already enrolled and 15 volunteer
teachers participating from a roster of 250 musicians. She asked the community to donate
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instruments which would be put to good use for disadvantaged students. Mayor Tait suggested
the National Association of Music Merchants might be a source of instruments for the
Symphony's program, asking the City Manager to facilitate that connection.
Len Beckman urged council to reevaluate the Angels negotiations and to take the time to do it
right for the city and for the baseball organization.
Dennis Kuhl, Angels Baseball, remarked that council's decision on the framework for Angels
Baseball negotiations on September 3` gave staff and the Angels organization enough time to
work through the major details, including how to fund millions of dollars needed for stadium
improvements. He expressed appreciation for the city's support and their work to keep the
Angels playing in Anaheim.
Larry Larson, speaking to major league baseball negotiations, emphasized the most important
concern for any business was its return on investment and /or profit. Currently, he remarked, the
surrounding Angel stadium property which he valued at $500 million, offered zero return to the
city. He suggested the property be turned over to Arte Moreno and let it earn for the city of
Anaheim, at least five percent profit or $25 million a year after development.
John Nguyen, Sister City Commission, offered a brief update on the Commission's progress in
seeking a new sister city. In August Mr. Nguyen and others visited Pudong, China to explore a
sister city relationship, indicating the trip had been a success and at no cost to the city as it was
funded by the volunteer commissioners. He stated Pudong was a city of three million with
opportunities to exchange economic, educational, and cultural viewpoints and that the next step
in the process would see a delegation visit Anaheim and explore exchange opportunities.
Lorraine Shorman, spoke in support of retaining Angels Baseball in Anaheim and specifically
about the Angels Baseball Foundation, offering her personal story.
Annah Abour -Nasr, Poverty Task Force, objected to the ordinance regarding camping and
storage of personal items in public areas, stating it would jeopardize the success of the
proposed pilot program for the homeless and the work of the outreach providers. She asked
council to delay introducing the ordinance to allow members of the Poverty Task Force to meet
with staff and discuss other possible options.
Mark Lopez, Sister City Commission, remarked that after visiting Pudong, China, he toured
Mito, Japan, emphasizing Mito's staff was fully invested in continuing the sister city relationship.
He also had the opportunity to visit Anaheim Square and Anaheim Park named in honor of this
city.
Michael Baker, Boys and Girls Club, remarked last Saturday's event was successful with over
150 people in attendance. He thanked the City, Angels Baseball and the Ducks for their
continued support of the Boys and Girls Club goals to address the needs of the 12 priority
neighborhoods in the city.
William Grisolia, discussing Angels Baseball negotiations. remarked that any decision reached
through the negotiation process would have to come back to council for consideration and
approval. He added council should remain aware that the stadium property belonged to the
people of Anaheim and they had a fiduciary responsibility to make the right decisions.
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Janet Brown, Anaheim High School Alumni Association, remarked there was a grass roots effort
to raise funds to rebuild the high school swimming pool at a cost of $5.6 million. She invited the
community to attend the campaign launching of this fund raiser on October 19 at the Grand
Plaza, a commitment to create a state -of -the art aquatic center that would meet the
requirements of various athletic competitions and revive the tradition of Anaheim High School as
a major competitor in California Interscholastic Federation swimming and water pool events.
For further information, visit B ring backthesplash (a)anaheim colonists. com
Iris, Anaheim High School student, encouraged the community to support this effort to bring
back a swimming pool at Anaheim High School.
Marta Rivera (Translation, Language: Spanish), addressed a traffic safety concern for children
attending Ponderosa Elementary School. She indicated a petition requesting speed bumps had
been submitted in April of 2011, meetings were subsequently held, and two years later nothing
had been done. She ended her remarks indicating that district elections would have addressed
this concern in a timely manner as representatives elected in the district in which they resided,
would have recognized and understood the need for action. Mayor Tait asked for a report on
why no action had been taken on this request.
Guadalupe Cisneros remarked there had been two incidents involving children crossing the
street in Ponderosa area requesting that the speed bumps be approved, and again stating, this
would not have been a problem if district elections were in place.
Jesse Rowen spoke out against Item No. 29, citing a variety of factors associated with the
oppressed.
Ross McCune, commercial builder, was supportive of the framework approved for the Angels
Baseball negotiations, remarking they had been a generous and good community partner, a
major draw to the city and the land offered an opportunity for revenue growth.
Joanne Sosa, ESCRI, talked of the success of the past Anna Drive cleanup with all aspects of
the community coming together and caring.
Thomas "Hoagie" Holguin introduced a new organization, Anaheim Small Business
Organization, dedicated to assisting members, stimulating long -term economic growth by
providing valuable resources, and offering network opportunities and educational forums
through the positive collaboration of business owners. He invited the community to the
launching on October 2, 2013 at the City's Club in Anaheim and for more information visit
www.anaheimsbo.com
Jerry Alder, Anaheim Garden Walk, urged council to retain the Angels in Anaheim, emphasizing
the current framework for negotiations was a good place in which to begin.
Larry Slagle, resident, agreed with previous speakers on the benefits of keeping major league
baseball in Anaheim, along with the additional value that without them, the resort area would be
a completely different environment. He urged council to come together and find a way to work
out the best solution for the city.
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Bill Yates, Ruth's Chris Steak House, remarked that as a restaurant operator, the loss of the
Angels would hit his bottom line and keeping major league baseball was critical to generating
revenue for his and many of the restaurants in the city.
Linda Lobatos spoke to the homeless situation at Grover Stadium and throughout the city. She
opposed Item No. 29, stating they needed a place to stay and the necessary services to
address their needs.
Jim Cain remarked that a vocal minority created an unhealthy environment in the city and the
loss of jobs and revenues associated with the loss of professional sports teams had to stop. He
added the Angels did not need Anaheim, Anaheim needed the Angels.
Marianna Rivera (Translation; Language: Spanish), remarked the Juanita neighborhood had
fought for speed bumps for several years and were thankful to now have them in place. She
was assisting the Ponderosa community in their efforts to acquire speed bumps. Marcie
Edwards, City Manager, interjected that the Ponderosa speed bumps were scheduled for the
October 8 th council agenda.
Peter Agarwal, resident, remarked Angels Baseball was a big economic driver in the city,
creating jobs, business, revenues, and momentum. Anaheim was known for the Ducks, Disney
and Angels Baseball and he encouraged council to negotiate well and keep this team in the city.
Kevin Anderson, Catch Restaurant, remarked he was representing small businesses in the city,
with an employee base of 100, emphasizing that 30 to 40 percent of his business was because
the Angels played baseball in Anaheim and he and other small business owners like him, were
relying on the Angels as economic driver for business.
Terri Ferris, explained what major league baseball meant to her on a personal level, asking that
council considers Angel fans when making their decisions.
German Santos opposed having the Office of Independent Review provide police oversight
services to Fullerton and Anaheim police departments.
David Zenger, resident, remarked that council's extension of the Angel lease opt -out provision
made them more likely to consider leaving in the near future. He thanked Mayor Tait for making
tough decisions and standing alone for his principles.
Grant Henninger, resident, urged council to carefully weigh the value in having the Angels as
members of the Anaheim community as the negotiations begin.
Greg Diamond spoke in opposition to Item No. 29, requested that Item No. 30 be pulled from
the consent calendar to explain what was meant by transitional housing, and regarding Item No.
33, hoped council utilized criteria used in the California Citizens Redistricting Commission to
ensure there was no gerrymandering in the mapping process. Referencing Angels Baseball
negotiations, Mr. Diamond emphasized the Angels were important to the city, but not at any cost
and wondered why the San Diego Padres former president was part of Anaheim's negotiation
team.
Cynthia Ward explained that she was working on several projects that involved planning
documents, asking that she be allowed to view those documents before they were destroyed,
City Council Minutes of September 24, 2013
Page 9 of 26
referencing Item No. 26. She warned staff to be vigilant and hold the Chamber of Commerce
accountable for their contractual obligations that were still outstanding and make sure any final
payments were not released until the Chamber met those obligations. She expressed concern
that the Chamber of Commerce conflict of interest filings were not performed, fidelity bond
certifications were not available, and the audits were not completed.
Donna Acevedo, resident, expressed appreciation to Interim Police Chief Quezada and his staff
for holding open discussions and for the positive changes occurring in the city.
Todd Ament, Chamber of Commerce, remarked that through the Enterprise Zone, 4,000
residents that had barriers to gaining employment received jobs and some businesses spent
millions of dollars purchasing equipment and creating more jobs in Anaheim. He added there
were still opportunities to take advantage of in the Enterprise Zone through the end of the
calendar year and the Chamber would continue marketing and processing vouchers through
that period. Referencing Angels Baseball negotiations, he stated the negotiation framework
was a good deal for the city, and the Angel's owner was interested in developing the land to
include restaurants, retail and activities for people to enjoy the Anaheim experience. He asked
council to negotiate in good faith and keep the public apprised of the facts.
Ricardo, stated his recognition and understanding of the importance of having a major baseball
team play in Anaheim.
CONSENT CALENDAR Council Member Brandman removed Item No. 4 for further
discussion, Mayor Tait pulled Item Nos. 16, 27 and 30 and Council Member Murray removed
Item No. 29. Mayor Tait declared he had a potential conflict of interest on Item Nos. 10 and 17
and a potential perceived conflict on Item No. 7 and would therefore record an abstention on
those matters. Council Member Kring then moved to waive reading in full of all ordinances and
resolutions and to adopt the balance of the consent calendar as presented, in accordance with
reports, certifications and recommendations furnished each city council member and as listed
on the consent calendar, seconded by Council Member Murray. Roll Call Vote: Ayes — 4:
(Mayor Tait and Council Members: Brandman, Kring and Murray.) Noes — 0. Absence — 1:
(Mayor Pro Tern Eastman). Motion Carried.
1. Receive and file minutes of the Library Board meetings of May 13, 2013, June 10, 2013,
8105 and August 12, 2013, Parks and Recreation Commission meetings of June 26, 2013 and
July 24, 2013, Sister City Commission meeting of July 22, 2013 and Public Utilities
Board meeting of July 24, 2013.
D117 2. Approve the Investment Portfolio Report for August 2013.
3. Ratify agreements with Marina Landscape, Inc., in an amount not to exceed $282,923,
AGR -68251 and Valley Crest Maintenance Landscape Maintenance, Inc., in an amount not to
AGR- 6826.1 exceed $191,723, to maintain the parks in the Central and East sections of the City for a
period of six months while new long -term contracts are bid and awarded.
5. Authorize the transmittal of the draft Housing Element to the State Department of
Housing and Community Development for its initial review for compliance with State law
requirements.
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6. Approve a 5% salary increase for the City Clerk as recommended by the Human
D154 Resources Director.
D182 7. Approve the proposed Five -Year Underground Conversion Plan for fiscal years 2013/14
to 2017/18.
Mayor Tait abstained on this item. Roll Call Vote: Ayes- 3: (Council Members Brandman,
Murray and Kring). Noes — 0. Abstention — 1: Mayor Tait. Absence — 1: Mayor Pro Tem
Eastman. Motion to approve carried.
8. Approve and authorize submittal of the California Energy Commission (CEC) Assembly
D182 Bill 162 Reports for both the City and the Anaheim -Green Power Program and authorize
the Public Utilities General Manager, or designee, to attest as to the accuracy of the
CEC AB 162 Reports, Annual Power Content Label, as well as the preparation and
submission of the 2013 quarterly projections of the Power Content Label for both the
City and the Anaheim — Green Power Program.
9. Approve and authorize the Chief of Police to execute and take the necessary actions to
implement and administer the Equitable Sharing Agreement and Certification Report
AGR -7828 with the Federal Government for the Police Department's equitable sharing activity of the
Department of Justice funds and U.S. Department of Treasury funds for the fiscal period
of July 1, 2012 to June 30, 2013.
10. Approve Amendment No. 1 to Cooperative Agreement No. C -1 -2958 and Amendment
AGR- 7084.1 No. 2 to Cooperative Agreement No. C -9 -0413 with the Orange County Transportation
AGR- 5742.2 Authority related to the Orangethorpe Corridor Grade Separation Program.
Mayor Tait abstained on this item. Roll Call Vote: Ayes- 3: (Council Members Brandman,
Murray and Kring). Noes — 0. Abstention — 1: Mayor Tait. Absence — 1: Mayor Pro Tem
Eastman. Motion to approve carried.
11. Approve the Professional Services Agreement with Cooperative Personnel Services,
dba CPS HR Consulting, in an amount not to exceed $80,000, for professional
AGR -7829 consulting services in the design of written examinations and assessment centers for the
ranks of Battalion Chief, Fire Captain, and Fire Engineer within the Anaheim Fire
Department.
12. Approve and authorize the Director of Community Development, or his designee, to
AGR -7830 execute and administer a Parking License Agreement, and any related documents, with
International Church of the Foursquare Gospel for use of the City Hall parking structure
and the Center Street parking structure during off peak hours (nights and weekends) to
provide parking required by the Anaheim Municipal Code for the use of The Rock Forum
located at 201 East Broadway, Anaheim.
13. Approve the Agreement for Acquisition of Real Property with Stephen and Margaret
AGR -7831 Heiner, in the amount of $11,500, for property located at 1773 South Heather Lane, Lot
Line Adjustment No. 000706, Grant Deed for the sale of real property and the Covenant
to Hold Properties as Single Parcel.
14. Approve and authorize the Public Utilities General Manager to execute and take the
AGR- 6236.1 necessary actions to implement and administer the First Amendment to Agreement, and
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Page 11 of 26
any related documents, with OPower, Inc., to extend the agreement for on -line energy
efficiency services to December 31, 2014 on the same terms and conditions, except as
expressly set forth in the amendment.
15. Approve and authorize the Public Utilities General Manager to execute and take the
AGR- 5117.1 necessary actions to implement and administer the Amended and Restated Renewable
Power Purchase and Sale Agreement, and any related documents, with Thermo No. 1
BE -01, LLC, for the Public Utilities Department's ongoing program to incorporate
renewable resources as part of its energy supply to meet state mandates.
17. RESOLUTION NO. 2013 -138 A RESOLUTION OF THE CITY COUNCIL OF
P124 THE CITY OF ANAHEIM amending Resolution 2013 -111, nunc pro tunc, relating to the
acceptance of deeds conveying to the City of Anaheim certain interests in real
properties.
Mayor Tait abstained on this item. Roll Call Vote: Ayes- 3: (Council Members Brandman,
Murray and Kring). Noes — 0. Abstention — 1: Mayor Tait. Absence — 1: Mayor Pro Tem
Eastman. Motion to approve carried.
18. RESOLUTION NO. 2013 -139 A RESOLUTION OF THE CITY COUNCIL OF
P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (City Deed Nos. 11594, 11595, & 11596).
19. RESOLUTION NO. 2013 -140 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM vacating a public utility easement located at 905 East Katella
Avenue (ABA2013- 00273) pursuant to California Streets and Highway Code Section
Pilo 8330, Et Seq. - Summary Vacation.
20. RESOLUTION NO. 2013 -141 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM vacating a public utility easement located at 190 South
Pilo Fairmont Boulevard (ABA2013- 00270) pursuant to California Streets and Highway Code
Section 8330, et seq. - Summary Vacation.
21 RESOLUTION NO. 2013 -142 A RESOLUTION OF THE CITY COUNCIL OF
Pilo THE CITY OF ANAHEIM vacating a portion of a public utility easement located at 1619
South Euclid Street (ABA2013- 00274) pursuant to California Streets and Highway Code
Section 8330, Et Seq. - Summary Vacation.
22. RESOLUTION NO. 2013 -143 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM ratifying and approving the action of the Public Works Director,
R100 or her designee, in submitting grant application and entering into an agreement on
behalf of the City of Anaheim with the Federal Highway Administration and the California
Department of Transportation, through the Transportation, Community and System
Preservation Program, and in accepting such grant funds on behalf of the City and
approving inclusion of such funds in the respective budgets for fiscal year 2013 -14.
23. RESOLUTION NO. 2013 -144 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the Chief of Police or his designee to submit a
11100 grant application on behalf of the City of Anaheim to the State of California, Office of
Traffic Safety (OTS), authorizing the Chief to execute all required grant documents and
City Council Minutes of September 24, 2013
Page 12 of 26
to accept the grant on behalf of the City, and amending the budget for fiscal year 2013-
14 accordingly (Sobriety Checkpoint Program).
24. RESOLUTION NO. 2013 -145 A RESOLUTION OF THE CITY COUNCIL OF
R100 THE CITY OF ANAHEIM authorizing the Chief of Police or his designee to submit a
grant application on behalf of the City of Anaheim to the State of California, Office of
Traffic Safety (OTS), authorizing the Chief to execute all required grant documents and
to accept the grant on behalf of the City, and amending the budget for fiscal year 2013-
14 accordingly (Avoid DUI Campaign Grant Program).
25. RESOLUTION NO. 2013 -146 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the Chief of Police or his designee to submit a
8100 grant application on behalf of the City of Anaheim to the State of California, Office of
Traffic Safety (OTS), authorizing the Chief to execute all required grant documents and
to accept the grant on behalf of the City, and amending the budget for fiscal year 2013-
14 accordingly (STEP Grant Program).
26. RESOLUTION NO. 2013 -147 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the destruction of certain City records more than
R100 two years old (Planning Department).
28. RESOLUTION NO. 2013 -150 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM certifying Final Supplemental Environmental Impact Report No.
C280 2012 -00346 and adopt findings and a Statement of Overriding Considerations and
Mitigation Monitoring Program 122A for the Housing Opportunities Rezoning project
(DEV 2013 - 00118).
ORDINANCE NO. 6287 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending Chapter 18.32 of Title 18 of the Anaheim Municipal Code (Mixed
Use Overlay Zone) (Zoning Code Amendment No. 2013 - 00110) (DEV2012- 00118).
ORDINANCE NO. 6288 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal
Code relating to zoning (Reclassification No. 2013 - 00255) (DEV2012- 00118).
31. Approve minutes of the Council meetings of July 23, 2013, August 13, 2013 and August
D114 20, 2013.
END OF CONSENT CALENDAR:
4. Award the contract to the lowest responsible bidder, California Averland Construction,
Inc., in the amount of $3,380,000, for Miraloma Park and Community Center Project,
AGR -7827 waive any minor irregularities associated with the bid documents and authorize the
Finance Director to execute the Escrow Agreement pertaining to contract retentions.
Terry Lowe, Community Services Director, reported this item was a request to award a contract
for the development of Miraloma Park and Community Center, the fulfillment of many years of
planning that would benefit an isolated neighborhood in north Anaheim. The city had done
extensive planning in all priority neighborhoods looking for opportunities to improve the quality
City Council Minutes of September 24, 2013
Page 13 of 26
of life in those areas and some years ago, neighbors expressed an interest in having a
community center and park. He indicated a building came up for sale and the city was
successful in competing for grant dollars and together with CDBG funding, was able to purchase
the land and raise money to develop this project. The retrofit of an existing building would
provide for a multi - purpose room, kitchen, computer center, lounge, classrooms, counseling
offices and restrooms in a lead- certified space. He emphasized, as with all neighborhood
projects, extensive community input was received and the community designed the park with
the help of staff and consultants. He pointed out it was an unusual shape and the design would
maximize its size for the benefit of all. He added the kids were particularly interested in the
exterior space which would house a skate plaza, an area to host events, and an interactive
water feature and was the fulfillment of this neighborhood's dream.
Council Members appreciated the work and effort that went into developing this project,
indicating it was a good use of taxpayer dollars in retrofitting an existing building. Council
Member Murray moved to award the contract for Miraloma Park and Community Center,
seconded by Council Member Kring. Roll Call Vote: Ayes — 4: (Mayor Tait and Council
Members: Brandman, Kring and Murray.) Noes — 0. Absence — 1: Mayor Pro Tern Eastman.
Motion Carried.
16. Approve and authorize the Planning Director, or her designee, to execute and take the
necessary actions to implement and administer the Second Amendment to Agreement
AGR- 7108.2 with the Anaheim Chamber of Commerce terminating the contract pertaining to the
Anaheim Enterprise Zone effective December 31, 2013.
Sheri Vander Dussen, Planning Director, reported that under the current contract to implement
the Enterprise Zone (EZ), the city owed the Chamber of Commerce about $135,000 for the
remainder of the contract year, adding that a portion of this outstanding amount was the final
payment of $112,000, due at the end of September. She explained the balance was part of the
required ten percent holdback from the two prior payments made to the Chamber earlier this
year which would be made on submittal of the annual report documenting completion of all
required tasks and activities, due February 2014. Ms. Vander Dussen stated with the passage
of state legislation this summer terminating the EZ program, staff met with the Chamber to
discuss the applicability and cost of the remaining facts under the current agreement and as a
result of those discussions, recommended the scope of work for the remainder of the contract
year be amended to focus on a continuation of vouchering activities for local businesses,
educating existing businesses about the program expiration, available benefits and program
close out, and transition activities. With refocused outreach efforts and elimination of
unnecessary activities, Ms. Vander Dussen noted the compensation for the remainder of the
contract year was reduced by slightly more than $100,000 with remaining activities resulting in a
revised payment to the Chamber of just under $12,000, due at the end of this month. She
added since the city paid for the Chamber services in advance, the organization already
received adequate compensation that could be targeted toward educating existing businesses
about the end of the EZ and towards the program closeout activities. She further added this
focused approach was consistent with the approach that most enterprise zones took in the final
months of the program.
Staff was also recommending and the Chamber concurred, that the contract terminate on
December 31, 2013, even though the state would most likely allow local enterprise zones to
process vouchers into 2014 for businesses making eligible hires before the end of this calendar
City Council Minutes of September 24, 2013
Page 14 of 26
year. If that occurred, staff was recommending that the processing of vouchers be transitioned
to the city. Ms. Vander Dussen reported more than 240 Anaheim businesses took advantage of
the EZ benefits, with more than 4,300 jobs qualifying for tax credits. From that, staff believed
1,200 more vouchers would be processed for new hires by the end of the year and as a result,
the city would receive close to $100,000 in voucher revenues.
Mayor Tait confirmed the following two statements. 1) $12,000 would be paid to the Chambers
to wind down the Enterprise Zone business which ended December 31, 2013 combined with
payments the City already prepaid for tasks that had not been completed which should provide
adequate compensation for the remaining activities for this calendar year and 2) There was a
payment of $23,650 that was held back from the prior payment that the Chambers was eligible
for once they submitted an annual report that demonstrated they completed all tasks and
activities required under the scope of work. Mayor Tait stated that he had voted for the contract
to have the Chambers administer vouchering for the Chambers, however, he did not support the
contract amendment last May to prepay the Chambers rather than after service was performed
and to increase the contract to a total of about $600,000, over four to five years. He indicated
he voted against it because it was understood that the State was canceling the Enterprise Zone
program and because an audit had not yet been received from the Chamber. He wondered why
an audit that was to be submitted months ago was still not available. Ms. Vander Dussen
responded the audit was drafted prior to the State terminating the EZ so some of the findings in
the audit no longer applied and if the council ended the contract at this time, there would not be
a reason to make some of the revisions in the contract recommended by the auditor. She
added there was an exit conference between the auditor, the Chamber and the city this week
and it was anticipated that both parties would have 30 days to prepare written comments in
response to the audit and following that process, the audit would be completed. She added the
audit would look at the performance during the period that was audited and in addition, the city
would receive reports for review as well as the annual report and would either release the
holdback funds or potentially request funds back from the Chamber if they failed to perform their
responsibilities under the contract. Mayor Tait indicated he would not support this item because
it was not good business to continue to expend funds when an audit had been months overdue.
Council Member Brandman moved to approve Item No. 16, seconded by Council Member
Murray. Roll Call Vote: Ayes -3: (Council Members Brandman, Kring and Murray). Noes — 1:
Mayor Tait. Absence — 1: Mayor Pro Tern Eastman. Motion Carried.
27. RESOLUTION NO. 2013 -148 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM modifying the electric rates, rules and regulations by modifying
D182 Rule Nos. 16 and 24 for the sale and distribution of electricity as adopted by Resolution
No. 71 R -478 and most recently amended by Resolution No. 2013 -116.
RESOLUTION NO. 2013 -149 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM modifying the water rates, rules and regulations by modifying
Rule No. 16 for the sale and distribution of water as adopted by Resolution No. 72R -600
and most recently amended by Resolution No. 2013 -115.
By these resolutions, determine that the modifications to Rule Nos. 16 and 24 contained
in the electric rates, rules and regulations and Rule No. 16 contained in the water rates,
rules and regulations are exempt under the California Environmental Quality Act, Section
15061(b)(3) of Title 14 of the California Administrative Code.
City Council Minutes of September 24, 2013
Page 15 of 26
Interim General Manager, Dukku Lee reported the Utilities Department was in the process of
updating many electric and water rules with the goal of making it easier and less costly for
Anaheim residents and businesses to receive electric and water service. He added the
guidelines set by the Regulatory Relief Task Force provided direction from which these
proposed changes were developed and the objective was to reduce the regulatory burden by
shortening compliance time, lowering cost, and reducing regulatory uncertainty. Using the
minimum code requirements as the maximum requirements was another new feature; for
example, if a customer chose, they could have a second meter placed in their home to take
advantage of nighttime lower cost rates for electric vehicles or in some cases, homeowners
might have electric wires over their swimming pools and even though that was compliant with
code, a program was offered where the Department would relocate those wires to the next
nearby pole without a customer having to pull a permit or pay for that relocation. The thought
behind these changes, he explained, was to streamline processes and make it easier for
customers to do businesses with the city.
Mayor Tait was appreciative of the customer friendly culture in the department, thanking staff for
their efforts and moved to approve RESOLUTION NO. 2013 -148 A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ANAHEIM modifying the electric rates, rules and regulations
by modifying Rule Nos. 16 and 24 for the sale and distribution of electricity as adopted by
Resolution No. 71 R -478 and most recently amended by Resolution No. 2013 -116; and to
approve RESOLUTION NO. 2013 -149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM modifying the water rates, rules and regulations by modifying Rule No. 16 for the
sale and distribution of water as adopted by Resolution No. 72R -600 and most recently
amended by Resolution No. 2013 -115, seconded by Council Member Kring. Roll Call Vote:
Ayes — 4: (Mayor Tait and Council Members Brandman, Kring and Murray.) Noes — 0. Absence
— 1: Mayor Pro Tem Eastman. Motion Carried.
29. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE
M142 CITY OF ANAHEIM adding Chapter 11.10 to Title 11 of the Anaheim Municipal Code
relating to camping and storage of personal property in public areas.
Terry Lowe, Community Services Director, reported this item was a request by staff to adopt an
ordinance based on a workshop held a month ago on the homeless impacts to a number of city
facilities.
He shared, the key complaints related to concerns about the behaviors of the people in the
park; i.e., public nudity, public sexual activity, drug use and an area of particular concern was
the significant accumulation of personal property in the park. Mr. Lowe added that in talking
with the homeless, many of them stated the reason they did not use a shelter available to them
during the rainy months was because they worried about the disposition of their personal
property when they were gone. There was also a major concern that once the park was closed,
there would be no restroom facilities for them; thus, they were left on the street with no
alternative but to use public and private property which has caused concern to residents and
businesses around the park. As a solution to that problem, staff recommended a space be
created where the homeless could store their personal property and to have restrooms available
on a 24 hour basis, fully stocked for their use. At the same time, trained counselors of Mercy
House would provide outreach before and during the times storage items could be accessed.
Mercy House would also provide links to a number of services available through several
organizations, both public and private for those who would like assistance. Mr. Lowe
recognized this may not solve the problem of the homeless, but strongly believed it would
City Council Minutes of September 24, 2013
Page 16 of 26
mitigate the negative impacts. Ultimately, he explained, the national consensus recognized that
shelters were the answer and they would need to be regionally distributed involving participation
by all entities to be successful.
The action requested by council would make the use of tents in city parks illegal and the
accumulation of property not stored in facilities not appropriate. The homeless would be noticed
ahead of time and the intent was not to arrest people because they had tents in the parks, but to
link them to a better living situations. He emphasized these actions were based on much
research and staff was working closely with the county and talking to neighboring cities about
opportunities to work cooperatively to come up with a year -round shelter but right now, he
emphasized, the rampant drug use, public nudity and other safety concerns were serious issues
that must be addressed and the reason why staff was recommending this ordinance be
adopted.
Council Member Murray emphasized this ordinance was coming from a comprehensive
standpoint to address the concerns caused by the homeless and there was no intent to
criminalize that population. She added it was a recommendation coming from staff to mitigate
problems and was in conjunction with partnering with the county and Mercy House to find
solutions and ensure parks and public safety were maintained. Because there was so much
misconception about what the city was trying to accomplish, she asked that staff reach out to
the organizations that raised questions during public comment and postpone action on this item
until the next meeting in October and moved to postpone this item until the October 8, 2013
council meeting, seconded by Mayor Tait. Council Member Kring added that she had been a
proponent of allowing families to stay in motels because it was the only housing available to
them and spoke to the need to strike a balance by helping the homeless, providing year -round
shelters, possibly keeping the Fullerton Armory open year round instead of during winter
months. Mayor Tait remarked this was a tough problem and ultimately the only way to make
some headway was to get the entire community involved and to treat people with dignity and
respect.
Roll Call Vote: Ayes — 4: (Mayor Tait and Council Members Brandman, Kring and Murray.)
Noes — 0. Absence — 1: Mayor Pro Tern Eastman. Motion Carried and the item was continued
to October 8, 2013.
30. ORDINANCE NO. 6289 (INTRODUCTION) AN ORDINANCE OF THE CITY
OF ANAHEIM amending various chapters of Title 18 of the Anaheim Municipal Code
C280 relating to the inclusion of supportive and transitional housing within certain
residential use classes
Sheri Vander Dussen, Planning Director, explained this item was a city- initiated amendment to
the zoning code which would define and permit transitional and supportive housing consistent
with state law requirements required by SB2. The legislation instructed the city permit these
uses in residential zones in the same way that other residential uses were permitted. She
indicated, as defined by California Health and Safety Code, supportive housing was housing
with no limit on the length of stay and occupied by a target population, and in this case, the
target population for supportive housing included low income persons having one or more
disabilities which could include mental illness, HIV or aids, substance abuse or other chronic
health conditions. Such housing, she added, was also linked to on -site or off -site services
which assisted residents in retaining their housing, improving their health status and maximizing
their ability to live and when possible, work in the community. Ms. Vander Dussen stated that
City Council Minutes of September 24, 2013
Page 17 of 26
on and off -sites could also include but were not limited to tutoring, child care and career
counseling. Transitional housing was defined by that same legislation as rental housing which
could include multi - family housing, single family housing or group homes that would be operated
under state or federal program requirements. Such requirements would require that program
space be made available to another qualifying person after a predetermined period no less than
six months, that is, short term housing. She further added optional services that helped
individuals gain necessary life skills that supported independent living were also allowed, but
were not mandated.
State law also allowed a distinction in the permitting requirements for certain residential uses in
single family homes based on whether there were six or fewer, or seven or more people served.
In single family residential zone, the proposed zoning code amendment would permit supportive
and transitional housing for six or fewer people in the same manner as a single family dwelling
unit. If seven or more people would be served, she indicated a conditional use permit would be
required. Since there were no similar state law distinctions for multiple family housing,
supportive and transitional housing uses were proposed to be permitted in the same manner as
multiple family developments in multi - family zones. She added that the proposed code
amendment would insure that the city's permitting requirements for transitional and supportive
housing complied with state law while providing the most discretionary review permitted by law
in single family neighborhoods.
Ms. Vander Dussen stated the Planning Commission reviewed this matter in August and
unanimously recommended council approval, and staff concurred.
Council Member Kring moved to approve Item No. 30, seconded by Council Member Murray.
Roll Call Vote: Ayes — 4: (Mayor Tait and Council Members Brandman, Kring and Murray.)
Noes — 0. Absence — 1: Mayor Pro Tern Eastman. Motion Carried and the ordinance was
introduced.
34. Discussion item regarding the City Council's September 3, 2013 action adopting two
AGR- 1433.0.6 resolutions that approved a Memoranda of Understanding relating to an Amended and
AGR- 1433.IV Restated Lease with Angels Baseball LP and a Ground Lease for the Stadium District
AGR - 1433.1 with Pacific Coast Investors LLC, and approving the First Amendment to Amended and
Restated Lease Agreement with Angles Baseball LP (Resolution Nos. 136 and 137,
Approved 4 -1).
Mayor Tait explained that he put this item on the agenda for purposes of discussion as there
was little public notice of the subject at the previous council meeting. Mayor Tait stated he
would review the presentation he had given on September 3` Council Member Brandman
remarked it was the protocol for the agenda process to first hear staff presentation on this item,
requesting that protocol be followed. Mr. Houston, City Attorney, stated for the purposes of this
type of action, a staff report was not required and the Mayor could run the meeting in his
preferred order. Council Member Kring recommended listening to the Mayor's comments to be
followed by a staff report that either supported or refuted his arguments.
Mayor Tait remarked that prior to 1996, Angels Baseball had an agreement with the city of
Anaheim. Angels Baseball had the use of the city -owned stadium and parking lot, 155 acres,
and the City received $4 to $5 million per year paid for by the Angels organization. In 1996, the
city entered into an agreement with Disney who was in the process of buying the Angels,
City Council Minutes of September 24, 2013
Page 18 of 26
contingent upon negotiating a favorable deal with the city. In that deal was $80 million from
Disney and $30 million from the city to renovate the stadium ($20 million in cash and another
$10 million from billboards). The Angels lease lasted for 33 years, however, he pointed out at
their discretion the lease could be terminated after only 20 years or in 2016 which was where
the city was today. Within that 1996 lease, he added, Angels operated and maintained the
stadium and received nearly all the revenues including ticket sales, concessions, signage and
advertising and the city received $2 per ticket above 2.6 million seat sales. The Angels received
the revenue from stadium naming rights, the use of the parking lot and parking revenues. In
addition they received $20 million in cash plus $10 million in billboard revenues for the
renovation of the stadium. The city received from this current lease over the last 16 years, the
Angels paying for maintenance of the stadium, $2 per ticket sold in excess of 2.6 million seats
which last year reached approximately $500,000 and a small percentage of the parking
revenues. Essentially, he stated, the city had a net minus of $52,000 on the lease by that deal.
The city also received two platinum suites, having the team named Anaheim Angels which later
a court determined after a lawsuit that the team name of Los Angeles Angels of Anaheim did not
violate that agreement, a team name that was in use today. He emphasized that he recognized
the value of the Angel team to the city, but that the cost had to be reasonable.
Mayor Tait indicated there were two memorandums of understanding approved at the last
council meeting, one was between the City and Pacific Coast Investors LLC (PCI) and the other
was between the City and Angels Baseball LP. Under the Pacific Coast Investors MOU, PCI
would be allowed to lease the city's 155 acres at a nominal fee until 2079, with an estimated
worth of $150 million to $380 million, the exclusive right and sole discretion to transfer that
property at any time as well as full discretion and control of all rights to develop or improve or
otherwise alter the property. He added this property was entitled to 5,100 residential units, 3
million square feet of commercial space and 3 million square feet of retail space, all of which
were environmentally cleared. PCI would receive all revenue generated from the property and
additional economic assistance to be negotiated as a rebate of the taxes generated from the
property.
Mayor Tait pointed to the Chamber of Commerce's flyer which stated the Angels lease was up
within the next few years and by extending the contract, the baseball team would remain in
Anaheim for another 50 years pointing out there had been no mention that the opt -out was
available after 24 years and again at 34 years which meant the only guarantee as to how long
the Angels would remain in Anaheim was for 20 years, while the agreement with Pacific Coast
Investors ran for 66 years. In addition the Angels retained control and exclusive rights
concerning the team name and would pay the city $2 per seat sold over 3 million seats per
season which would have dropped from $500,000 in revenue to the city to $2 if that clause
mirrored the current seat sales. By extending the term of the current lease, he noted the Angels
had the right to terminate the existing lease for an additional three years to allow the team more
time to find a new base if they so desired. And, the city would have a major league baseball
team to play their home games in Anaheim for a guaranteed 20 years, a team that could
eliminate "Anaheim" from its name entirely, resulting in an action that would actually harm
Anaheim. For all those reasons, he felt the deal was unreasonable and rather than starting from
this stance, he suggested a joint venture be considered for the stadium property with some sort
of split on the revenues and agreeing to a name change for the team as long as it was California
Angels, Orange County Angels, or a name that was reflective of its home. To address the
argument that having the Angels lease the stadium property was necessary to cover the cost of
the stadium improvements, Mayor Tait remarked it was their obligation under the existing lease
to continue maintaining the stadium. He did not feel the Angels could find a better deal than
City Council Minutes of September 24, 2013
Page 19 of 26
staying in Anaheim, with 10 million people residing within 50 miles of a stadium and where three
freeways came together allowing quick access to some of the most valuable property in
southern California. He also pointed out that Arte Moreno was a good businessman and sports
owner and he felt the city should look out for its assets in the same manner that Mr. Moreno
presided over his business.
City Manager, Marcie Edwards remarked that council should understand the memorandum of
understandings were approximately two pages in length, intended only to provide a framework
for negotiations with participants agreeing that any as yet undiscovered options, alternatives, or
interpretations were welcome with this preliminary framework. The ultimate agreements were a
number of months and a number of pages away and may not bear any resemblance to these
non - binding structures. She encouraged the public to send their emails and voice mails with
their opinions and suggestions on these negotiations. She noted staff planned to summarize
responses to Mayor Tait's presentation and introduced Charles Black, an attorney with 30 years'
experience in both public and private sector in the development, entitlement, and
implementation of complex real estate projects as well as serving as the president of San Diego
Padres overseeing, drafting and negotiating the development of Petco Park and the surrounding
ball park district. In addition, Tom Morton, Director of Convention, Sports and Entertainment,
Paul Emery, Assistant City Manager, and John Woodhead, Director of Community Development
were present were present to answer any questions.
Charles Black remarked the proposed MOU's authorized negotiating along the terms set forth in
the MOU's, but did not restrict the parties from negotiating outcomes inconsistent with the
MOU's and negotiation on other issues not referenced in the MOU's such as the city's obtaining
other revenue and /or other economic and non - economic benefits. He indicated staff would
address the Mayor's points and comment on each of them individually.
Paul Emery remarked one of the points identified by the Mayor included the 155 acres for 66
years with an estimated value of $150 to $380 million. He indicated the city retained the firm of
Keyser Marston to do a land evaluation model and based on the entitlements, estimated the
value between $30 million and $230 million — a wide range based on a number of assumptions
and when those assumptions were changed, the valuation was impacted. He remarked John
Woodhead could help if there were further questions in that area, but it was also dependent on
time and phasing of development and should be considered a preliminary number. As
negotiations progressed, staff would look at updated models in terms of valuation to reach a
more defined value that would help in looking at the benefits received in terms of the cost.
Mayor Tait requested a certified appraisal that included replacement value be part of the
information used in this process. Mr. Emery remarked the issue with phasing of development
was one of the concerns if the property was sold in bulk or whether it was done in a master plan
process or subdivided, adding that Keyser Marston assumed 150 acres of development and five
acres of planning.
Charles Black remarked that the most important aspect about the development within the
stadium district was that Keyser Marston estimated the value of that development at $4 billion
pointing out that $4 billion of construction and development would produce a substantial number
of jobs similar to what occurred in San Diego. That ancillary development generated more than
$100 million per year in San Diego and he anticipated Anaheim could expect similar figures
which further analysis would reveal when agreements returned to council for their consideration.
City Council Minutes of September 24, 2013
Page 20 of 26
The Mayor's point referring to the exclusive rights and sole discretion to transfer property, Mr.
Emery remarked, did not include the fact the city retained reasonable right of approval and that
Pacific Coast Investors (PCI) did not have an autonomous right of transfer. Their discretion was
not unlimited in that the city had the ability to impact timing and phasing and insuring that the
project was done in compliance with the Platinum Triangle Master Land Use Plan and the city
would retain all powers as it related to land use as with any future development. Mayor Tait
remarked his words were taken directly from the memorandum of understanding. Mr. Black
responded the MOU's were minimal documents for a complex transaction and the stadium
district would also be subject to a development agreement, which under state law, required
annual reviews to insure obligations were met. The important point was that PCI did not have
unlimited discretion, but did have the discretion to respond to the market place and present
designs for development.
One of the statements made earlier was that PCI would profit from all the revenue generated
from the property, with Mr. Emery pointing out that was not part of the MOU's as drafted and the
City would stipulate that not all revenues generated from the property would go to PCI. The
intent was for PCI to be paid a reasonable rate of return, and in exchange for that the city would
receive adequate benefits that would be spelled out in eventual agreements. He noted that
capital needs ranging from $130 to $150 million had been identified and the Angel organization
would be responsible for making needed improvements. On the other hand, the Angels had an
opportunity to opt out of the contract and if they did, they would no longer have that
responsibility for improvements and the city would then have to make a determination on what
the future held for that facility.
To address the statement that PCI would get additional economic assistance as a rebate of
taxes generated from the project, Mr. Emery remarked this was true for any future development
in which the city evaluated opportunities for positive economic return for all parties involved,
including the city, and any gaps in a development proposal would be considered and subject to
all laws. He added each agreement would be considered by council and would have to stand
on its own merits and any proposal for economic assistance in the development of surrounding
properties would be fully vetted before council. Mr. Black added that both city and state
standards would have to be met and in every one of those cases a gap analysis was required.
Mr. Emery remarked the Mayor's statement that the Angels would receive all use and control of
revenue from the stadium until 2057 was in the existing lease agreement. The Angel
organization currently controlled revenues generated on the site under the existing lease
agreement except sales and property taxes and certain other threshold levels for ticket parking
and other events. Mr. Emery added the MOU did consider the adjustment of the ticket threshold
but would not eliminate it. It also included the elimination of the city required capital contribution
in excess of $600,000 annually and would still be subject to property tax and sales tax as any
future development occurred. He pointed out the statement with respect to $2 per seat over 3
million seats rather that seats in excess of 2.6 million was being considered upon final payment
of existing debt service that was anticipated to be relieved in 2021 and the city would no longer
be required to pay the annual capital contribution in excess of $600,000 which would occur
immediately upon approval of the agreement. Mr. Black added when the city's annual
contribution immediately stopped and the ticket threshold was raised upon the defeasance of
debt, if that had occurred in 2012, the city would actually have seen a swing of $250,000 to the
positive with this component.
City Council Minutes of September 24, 2013
Page 21 of 26
Mr. Emery stated that at the last council meeting, the extension of the opt -out agreement was
approved and staff believed that was the correct step to take to allow for negotiations to take
place in an appropriate timeline through a thoughtful negotiation process. And the statement
that Anaheim would only receive $66 for stadium acreage, was, he explained, a term within the
MOU with respect to nominal rent. To measure the impact of any future development, the
economic engine that was Angels Baseball must be understood and currently the City received
$120 million in direct revenues because Angels Baseball played in that stadium. The
opportunity to develop mixed use, commercial, residential, and office in conjunction with a major
league ball franchise, would increase that economic return and staff believed it was an
appropriate step to take at this time to outline those parameters for discussion.
Mr. Black remarked that the council majority have given the negotiators tools needed to
formulate a long -term solution to keep Angels Baseball in Anaheim for a long period of time and
in doing so, deliver real economic and non - economic benefits to the people. Tom Morton added
that earlier the pre -1996 agreement had been discussed in which the Angels paid about $4 to
$5 million per year to the city; and in that scenario the Angels were a tenant of the stadium that
was managed and operated by the city of Anaheim. Those rental payments were percentages
of the revenues from ticket and parking sales but it did not consider all the expenses the city
incurred as well as the ongoing capital repair and maintenance cost. Mr. Morton reported the
following: in FY 94/95 stadium revenues came in at $13 million while expenses were $12.4
million; in FY 95/96 revenues were $14.5 million with expenses and $14.4 million; not an apple
to apple comparison but an interesting fact. The presentation was concluded.
Council Member Murray discussed the process that had taken place so far, objecting to the
Mayor's campaign tactics against the negotiation framework for the Angels Baseball lease and
indicating she would share her concerns in public. She expressed that the facts were that this
would be an exhaustive public process, that staff was just beginning the process and would
negotiate in good faith because having this team in Anaheim was important to residents,
businesses, the greater community, and the economy. Regarding maintenance versus capital
improvements, one of the items for discussion was having the Angels take care of structural
needs for a city -owned asset and how to partner in raising funds privately so it would not be a
burden to taxpayers and not the entire obligation of a partner operating the stadium. In addition,
she pointed out, an economic study done by experts in this industry stated clearly that an
overwhelming economic benefit to the city was worth $4.7 million annually in direct revenue and
$200 million in economic impacts if the city was able to work with the Angels to develop the
property as envisioned by the city for years. In addition, sales tax and transient occupancy tax
generated additional value to the city over the long -term. She asked that Mayor Tait end the
misinformation and begin working together in a thoughtful productive manner.
Mayor Tait responded that he did not agree with the memorandums of understanding and was
compelled to argue his position. He stated he could agree to a joint venture between Angels
Baseball and the city on development of the stadium property but not a lease at $1 a year for 66
years. He hoped to start fresh and change the framework for negotiations asking if it was
possible for the city to consider a joint venture on that site. Mr. Black responded the existing
framework did not limit discussion on any deal point, and while the MOU did not preclude a joint
venture, he indicated there could be reasons why the city may not want to engage in a real
estate development. Mayor Tait remarked he did not agree with the negotiation framework nor
did he feel the assumptions made in the impact report were correct. The assumptions were that
on average 37,799 fans attended 81 games per year and that the economic activity they
generated outside the stadium was significant and that 88 percent of ticket buyers lived outside
City Council Minutes of September 24, 2013
Page 22 of 26
the city. Additionally it was estimated that city residents on average spent about $11.40 at area
restaurants, bars, retail, entertainment and transit in connection with their attendance at games
and non -city residents spent an average of $14.25 for day trip visits and $108.70 for overnight
visitors. He believed that anecdotally, the vast majority of people who attended an Angel game,
drove into the parking lot, entered the stadium and spent little money outside the stadium.
Council Member Murray asked on what basis Mayor Tait could comment that the economic
study had no value asking that the City's consultants be heard on this issue. John Cox,
Convention, Sports and Leisure, indicated he was the principal in charge of this study and
offered the following information. With respect to the economic impact analysis, Mr. Cox
remarked that studies were conducted in other markets around the country: Houston, San
Diego, Minneapolis, Chicago and other markets. Thousands of attendees at these events were
surveyed and asked if they were a metro area resident, how much money was spent, if
anything, while attending baseball games, and the results ranged from $12 to $13 on the low
end to as high as $23 per person in markets like Chicago. In some cases, he added, it was 55
or 65 percent who spend zero because they were driving in and out and that was certainly
reflective of a community. More importantly, he stated, the study assume that the $11 low end
of the range was in fact zero and for an Anaheim resident, it was taken completely out of the
assumption because if you removed baseball, the attendee might have gone to a movie or
somewhere else to spend those dollars. He noted this approach was conservative because if
this team were to move within 20 to 30 miles, big fans might follow them even if they were
Anaheim residents. That $11 per person, he emphasized, was not included in the $120 million
economic benefit. Mayor Tait asked for confirmation that Mr. Cox's presentation meant that for
every person who did not go outside the stadium and spend money, there was another person
who spent in the $28 to $50 per person range. Mr. Cox concurred, remarking that included
parking costs, as well, and was based on thousands of interviews across the country. Mr. Tait
asked if Anaheim attendees had been surveyed with Mr. Cox responding there had not been
enough time nor resources to conduct a survey at this point which was why he took the lower
end of the range. He also shared the Mayor's skepticism with these types of studies because if
they were based on rosy assumptions those figures could be inaccurate and he worked hard to
make these numbers conservative. For example, he pointed out, related to team spending, 87
percent was eliminated and it was not included in the $120 million because even though fans
were coming from outside Anaheim and reflected new money, team spending was part of the
ownership structure and immediately left the economy, so 87 percent of the impact that was
generated was flushed out of that $120 million at the start. Mayor Tait felt the numbers would
not hold true for the Anaheim area and that the major assumptions of 37,000 people spending
outside a baseball stadium was based on other teams, and not specific to Anaheim. Mr. Cox
responded he stress - tested those models by cutting down those figures and still ended up with
over $100 million in economic benefit to the city. Council Member Murray remarked this report
was the most valid analysis the city had to date to work from and was better than trying to
guess; and the fact that Mr. Cox stress - tested the figures and chose a conservative approach
worked for her. She did not believe Anaheim was an anomaly, pointing out when the city was
looking to recruit an NBA franchise, the mayor was eloquent in sharing with the world that
Anaheim's marketplace was bigger than Chicago. Population wise with affluent spending and
attendance, she emphasized, it was not just Anaheim, but Orange County and the surrounding
regions. She believed the city warranted sports franchises for those reasons and that
Convention Sports and Leisure provided a fair economic analysis to work as a baseline to begin
negotiations.
City Council Minutes of September 24, 2013
Page 23 of 26
Council Member Kring remarked that two restaurateurs stated that without Angels Baseball,
their bottom line would be negative. The Catch Restaurant remarked that 35 to 40 percent of
Angel guests had drinks and /or dinner and she opined that Mickey Di's or Flame Broiler would
concur with that assessment. She believed the economic analysis was accurate and was not
sure that the value of the stadium property had increased from $180 million to $380 million
pointing out that at one time Archstone was proposing a similar venture with retail, dining, and
entertainment and that the property at that time was worth $100 million. She added that staff
and the consultants evaluated line by line the concerns raised by Mayor Tait and disputed those
concerns. She pointed out negotiations had not started and everything was on the table and the
outcome could be a combination of proposals or a completely different alternative. She asked
Mayor Tait to give the negotiation team time and support to make this happen.
Mayor Tait responded that he would like to have a certified appraisal of the stadium property, its
replacement value, including consideration of property entitlements and the parking lot. He
would like to know what it would cost a baseball owner to purchase land and build a stadium on
160 acres. The $380 million figure he had used was a broker's estimate done by Jones, Lang,
LaSalle on a document he reviewed at City Hall which was based on entitlements. It was the
number he had been using but could also have been based on the Archstone offer which was
$200 million for less acreage. Mayor Tait remarked that an MOU typically had some weight to it
and council could direct staff to go forward or his choice would be to direct staff to consider a
joint venture and a compromise on the team name. Council Member Murray remarked Mayor
Tait asked staff if a joint venture was an option and they said it was something that could be
discussed, in fact everything could be discussed as the MOU said those items were non - binding
with everything on the table, asking why he was challenging this effort to such a degree. Mayor
Tait responded that he felt this public discussion was healthy and even if council members
disagreed, they did it publicly, an important process in addressing such a large public asset.
Ms. Edwards remarked that at a subsequent time and place there would be expanded
information to discuss the Archstone analogy as well as the evaluation analysis. She noted
there were many ways to evaluate property, by utilization, outright sale, and entitlements, but
suggested that staff be allowed to go forward at this time before getting to a point whether
additional workshops might be considered or fuller discussion on certain points warranted.
Council Member Murray added all information was available on the city's website and she
hoped as a legislative body, council would work together to allow this process to unfold before
raising significant concerns. She asked that staff continue to do workshops, update the website
regularly as information became available and pointed out that council was available for phone
calls or emails if there were any questions from members of the public.
No action was taken on Item No. 32
Ms. Edwards remarked that in the interest of time, Item No. 33, a report from the Police
Department could be continued to another council agenda. Council concurred.
33. Receive and file the Police Department report on the impacts of the State Prison
D160 Realignment.
This item was continued to a future meeting with the consent of council.
City Council Minutes of September 24, 2013
Page 24 of 26
34. Direct City staff to proceed with a process to create district maps utilizing staff
coordinated workshops and hearings involving robust public input resulting in Council
D116 consideration and adoption of maps for both four and six member city council districts by
March 1, 2014 and authorize the City Manager, or her designee, to contract with a
demographer, in an amount not to exceed $100,000, to assist the City in the mapping
process.
Deputy City Manager Greg Garcia reported this item was to receive council direction on
proceeding with a process to create district maps using a staff coordinated process involving
workshops and public hearings. This process would result in the adoption of maps for both four
and six member council districts and as part of this process; staff also requested authorization
to retain a demographer for this purpose. Mr. Garcia indicated there would be strong public
outreach efforts as a component of this mapping process.
Providing background, Mr. Garcia stated an ordinance had been adopted in July which
established residency districts for council members and candidates for council. The ordinance
required council create these districts, adopt maps and a transition plan or before March 1, 2014
which would allow these districts to be utilized by the November 14 general municipal election.
Also at the July meeting, council directed staff to present for council's consideration a process to
undertake creating this mapping and to include both four and six district mappings in the
process to account for the possibility that council could expand to six members based on a
proposed charter amendment that was scheduled for a vote on the June 3, 2014 statewide
primary election.
He noted staff had reviewed how other California cities created council districts and redrew
existing lines and while there were various alternatives available, recommended that staff be
authorized to immediately begin a mapping process that was coordinated by city staff and that
included a robust outreach component. This, he explained was the same model being used
with success by other cities and staff felt it provided the best method to achieve maximum public
input within the necessary time frame of March 1, 2014. If approved, staff would develop and
conduct a public outreach and input process comprised of multiple community workshops to
gather feedback on mapping options, solicit input from all segments of the community regarding
the factors they would like to see considered in drawing district lines, and would encourage
members of the community to draw and submit maps for consideration during a lengthy public
input and submission process where members of the public would be able to draw their own
maps and submit them for consideration.
The eventual outcome was to have the proposed map options presented and considered by
council in a public hearing process, with a minimum of two public hearings planned at this time,
and at the conclusion council would adopt their preferred choice for a four district and a six
district map. It was important to note that regardless of the process used, the election code
required that the final decision on district boundaries must ultimately be made by council.
Mr. Garcia then introduced Ben de Mayo, outside counsel and consultant, whose experience
included the County Counsel's Office for 32 years, the final eight years as County Counsel and
prior to his retirement, overseeing redistricting of County supervisorial district boundaries in
1991, 2001 and 2011. He also advised local community college districts and other cities on
Voting Rights Act issues.
City Council Minutes of September 24, 2013
Page 25 of 26
Mr. de Mayo indicated his sole purpose was to assist the city council in creating council districts
and to fully comply with applicable state and federal state laws, adding that the law required city
councils to set the district boundaries and to not delegate that responsibility to others. The
factors to be considered under the U.S. Constitution and State law required that districts be
nearly equal in population as possible, must comply with the Federal Voting Rights Act, and that
no voting qualification and procedure should be imposed or implied in a manner that resulted in
any abridgement of the right of any citizen to vote on account of race, color or being the
member of a minority language, a fairly simply statement, he remarked, but there were many
court cases applying different scenarios across the country. In creating boundaries, Mr. de
Mayo explained, council could consider topography, geography, cohesiveness, compactness of
territory, as well as communities of interest which is why the city would solicit as much public
participation as possible in this process. He added the public would also be given the
opportunity to actively draw lines themselves, and in that regard, the city would retain a
demographer who would provide census and other data necessary to be reviewed from both
population and quality purposes and voting rights act purposes and that demographer would be
a disinterested professional who would take the testimony from the public and help to use it in
analyzing their maps.
He spoke about the process utilizing a demographer adding that the maps would be drafted
based on public input, community meetings, and a repeated process before the maps were
finally presented to council for consideration. Two public hearings would be held prior to final
adoption and, he emphasized, staff was committed to pursuing a comprehensive public
outreach plan, identifying and engaging community groups and interested stakeholders so they
could all participate in the process and express their priorities.
Council Member Brandman moved to approve the item, seconded by Council Member Kring.
Roll Call Vote: Ayes — 4: (Mayor Tait and Council Members Brandman, Kring and Murray.)
Noes — 0. Absence — 1: Mayor Pro Tern Eastman. Motion Carried.
COUNCIL COMMUNICATIONS
Council Member Kring spoke of her attendance to the Paint Your Heart Out Annual Gala, Boy
and Girls Club Cork for Kids, and the 2 nd Anniversary Celebration for Vallarta Supermarket. She
explained how the Miracle Baseball League Stadium came to be and announced the following
events: Muzeo Gala on September 28, Fashion Show at the Muzeo on September 29, the Avon
Dakota Adopt -a- Neighborhood clean -up event on September 28, and the Leukemia and
Lymphoma Society's Light the Night Walk on September 28.
Council Member Murray spoke of the grand opening of The Rock Forum and requested a
resolution officially welcoming them. She announced the Hispanic Heritage Month events being
held at Haskett and Ponderosa Libraries, the Muzeo Gala on September 28, Fashion Show on
September 29, Fab Four performance at Pearson Park on September 28, and Public Power
Week on October 6 -12. She spoke of the success of the Beat H.E.A.T. event and thanked
District Attorney Tony Rackauckas and the Anaheim Police Department for their commitment to
this cause. She stated the matter regarding speed bumps near Ponderosa Library would be on
the next agenda and spoke of plans of a community center at Ponderosa Park and park on
Guinida Lane.
City Council Minutes of September 24, 2013
Page 26 of 26
Council Member Brandman spoke of his attendance at the Beat the H.E.A.T. event and thanked
Council Member Murray for her support of this cause. He also spoke of his attendance at the
Paint Your Heart Out Annual Gala, the Boy and Girls Club Cork for Kids event, the Anaheim
Historical Society Citrus Celebration at Founders' Park and the Kiwanis Club installation dinner.
He requested Council Policy 1.6, Section 1, be amended and considered at a special meeting
within the next five days. City Clerk, Linda Andal advised that a special meeting could be called
by the Mayor or any three members of the legislative body and with that, Council Members
Murray and Kring concurred and a special meeting could be set within the next five days.
Mayor Tait announced the birth of his grandson Hudson Eugene De Francis and requested the
meeting be adjourned in memory of an employee who passed away in a tragic accident at the
Honda Center.
ADJOURNMENT
With no other business to conduct, Mayor Tait adjourned the September 24, 2013 council
meeting at 10:27 P.M. in memory of a Honda Center electrical worker
I
Linda N. Andal, CIVIC
City Clerk