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2013/11/05ANAHEIM CITY COUNCIL REGULAR MEETING OF NOVEMBER 5, 2073 The regular meeting of November 5, 2013 was called to order at 3:06 P.M. in the chambers of Anaheim City Hall. The meeting notice, agenda and related materials were duly posted on November 1, 2013 PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Gail Eastman, Lucille Kring and Kris Murray. STAFF PRESENT: City Manager Marcie Edwards, City Attorney Michael Houston and City Clerk Linda Andal WORKSHOP — REVISED QUALITY RENTAL HOUSING PROGRAM Planning Director Sheri Vander Dussen reported a previous workshop had identified sub- standard living conditions and housing violations in some of the multi - family residential units in Anaheim. She indicated most of the complaints came from smaller buildings of up to eight units generally because they were not professionally managed. To address those violations, staff had proposed a program patterned after one in Sacramento that would have required periodic inspections of all rental units in Anaheim with the goal of minimizing the number of households living in unsafe and unhealthful conditions. She added that owners of the units in the worst conditions tended to be those who resisted any effort to gain compliance and that tenants were often fearful of filing complaints because of eviction, immigration concerns, or increased rents. Anaheim's program would have imposed the following: 1) an annual registration fee for every rental unit in order to generate funds to cover program costs, 2) all rental units inspected periodically unless they were exempt from the program or the owner was able to meet the self - certification process criteria; and 3) the City would have conducted spot checks of units in the self - certification program to ensure they complied with basic standards. She also pointed out that the ability to access each unit was essential to the program. Since that workshop, she remarked, staff had been meeting with various stakeholders who could be affected by this program, the South Coast Chapter of the California Apartment Association, the Apartment Association of Orange County, the Orange County Chapter of the Building Industry Association, and the Pacific West Industry and California Association of Realtors. Other meetings were held with individual landlords and interested residents. Ms. Vander Dussen pointed out stakeholders were supportive of the city's efforts, but also had similar concerns about the program; i.e., 1) it should not punish responsible landlords, 2) it should encourage best management practices, 3) an appeals board that included apartment owners and community members in case owners or tenants were unhappy with any of the city's decisions should be established, and 4) owners who failed to properly maintain their units should be required to pay fines and fees to help offset costs the city incurred to gain compliance. Ms. Vander Dussen explained that because of discussions with the various stakeholders, a revised program was developed that included a three - tiered system. Unit owners would complete a questionnaire regarding management practices employed on site, asking questions such as did they limit occupancy, do they have house rules, and do they require the names of all adults living in the unit to appear on the lease. In addition, the owners would be required to certify there was no significant health or safety violations on the site based on a list of standards that would be provided by the city. If the owners were employing acceptable management City Council Minutes of November 5, 2013 Page 2 of 16 practices and certified that there were no significant violations on the property, Ms. Vander Dussen remarked, staff would look at the exterior of the buildings. She added, if there were no major violations that indicated an on -going lack of maintenance, the property would then be considered in compliance and the owner would receive a certificate to that effect. Additionally, if the owner was not employing acceptable property management practices or stated there might be a violation on the property, that owner would be asked to complete a self - certification check list for each unit. And again, she remarked, if the owner certified that all units were code compliant, staff would visit the site and if the exterior of the building was properly maintained, would encourage the owner to improve their property management practices and offer resources for their use such as classes or printed materials. If the exterior was not properly maintained or if the city documented a housing violation on the property in the past 12 months, Ms. Vander Dussen pointed out the city would then ask the owner to allow staff to conduct spot checks of units in the building and if those violations were caused by the owner, the city would ask to be allowed to inspect all the units and, if necessary, the enforcement process would follow. She explained a component of this program would be the creation of an appeals board that would consider requests from owners, and possibly tenants, to reconsider decisions made by staff in the administration and enforcement of this program. It would consist of representatives from related professional organizations with council determining which organizations would be represented on the board. Staff suggested neighborhood council representatives also be considered for the appeals board to give input from the resident's perspective, and she noted, a process in the Municipal Code was already in place to handle appeals on fees and fines. Under this revised proposal, Ms. Vander Dussen stated owners would not pay an annual registration fee and there would be no fees required for the management practices survey and health and safety certification process. When inspections were required, she stated owners would only be assessed inspection fees if they failed to remedy the violation within the timeframe specified in the notice of violation and no fees would be imposed when owners passed the program, or promptly completed and abated violations. In the case of an owner certifying that all units complied with basic standards and the City learned major violations existed in one or more units, she indicated the City may wish to impose penalties especially if the owner had previously been cited for a housing violation. Ms. Vander Dussen added that staff was also recommending that the fine or possibly the re- inspection fees be reduced if the owner completed a course offered by a professional apartment management association. She emphasized the goal was to better educate landlords about their rights and obligations to address inappropriate activity by their tenants, to ensure their properties were suitably maintained, and that this revised fee structure was designed to provide an incentive for owners to properly maintain their properties. Ms. Vander Dussen remarked that in the department's experience, abating housing violations took time to accomplish and should council direct staff to develop a quality housing program, she would recommend tools and procedures to abate violations more quickly and minimize the time the city must invest to obtain compliance as well as minimizing the need for residents to tolerate substandard conditions. She reported this revised program would be funded primarily by the city's General Fund with a possible offsetting of costs by fines and fees imposed on violations. To that end, staff would work with other departments to identify resources and potential results and would also explore opportunities to involve existing staff in some functions of this program to help offset the need to incur new costs. If directed by council, she believed the program could be in place in about six months pointing out there were a number of existing City Council Minutes of November 5, 2013 Page 3 of 16 employees who were interested in being part of this team. The next step in the process was to refine the program materials, make recommendations on the composition of the appeals board, establish fines, develop the certification checklist, and identify educational resources for owners and tenants along with formulating an outreach plan for rental property owners. She ended the presentation stating that any proactive program had the potential to improve quality of life in neighborhoods by minimizing the number of households living in substandard housing conditions and that staff was looking forward to the opportunity to address these conditions and make a difference. Council Member Murray thanked the team for getting the city to this point. She asked the City Manager to bring back the appropriate ordinances to launch this program, hoping they might be ready by the first of the year. Mayor Pro Tem Eastman appreciated Council Member Murray's commitment to make a real difference in Anaheim's aging housing. Council Member Kring concurred and appreciated the ability for well -run properties to be able to self - certify and not be charged fees. Council Member Brandman also voiced his support adding that this program could not be done without input from the various stakeholders and citizens and reflected the very best of the Anaheim way. Mayor Tait appreciated Council Member Murray's commitment and staff's leadership, and the fact that property owners who used good management practices would not be penalized in the process. ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None CLOSED SESSION ITEMS: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Moreno et al. v. City of Anaheim, Orange County Superior Court Case No. 2012- 00579998 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Wilson v. City of Anaheim, Orange County Superior Court Case No. 2012- 00614516 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the Government Code) Name of Case: Steve Perez v. City of Anaheim, et al., United States District Court Case No. SACV13 -01609 JVS (DFMx) At 5:01 P.M., council returned from closed session and the meeting was reconvened. Invocation: Pastor Jerry Dirmann, Anaheim Foursquare Church Flag Salute: Council Member Lucille Kring Presentations: Recognizing the Rock Church on their new location in the City of Anaheim City Council Minutes of November 5, 2013 Page 4 of 16 Pastor Jerry Dirmann remarked it was an honor and a privilege to be located in downtown Anaheim and he and his wife appreciated the city's recognition. He added the Rock Forum site would continue to be used in support of the arts and invited the community to attend both the church services and a musical production scheduled for six performances. Proclaiming November 9 - 15, 2013, as Veterans Week in Anaheim Gary Mason, Anaheim VWF, thanked the city for actively supporting the military and veterans and for city staff who made these event celebrations successful behind the scenes. He added the VFW was involved in a program to find ways to make it easier to transition new veterans into civilian life and he felt privileged to be a part of it. Acceptance of Other Recognitions (To be presented at a later date): Proclaiming November 18 - 24, 2013, as Global Entrepreneurship Week Proclaiming November 2013, as Orange County Grand Jury Awareness Month Proclaiming November 2013, as American Indian Heritage Month Proclaiming November 16, 2013, as International Day for Tolerance Proclaiming November 15, 2013, as American Recycles Day Recognizing the recipients of the Anaheim Chamber of Commerce 2013 Anaheim Business Awards David Baker, Orange County Grand Jury, thanked the city for recognition of the Grand Jury's service to the county indicating next year's recruitment process was underway. He presented applications and information on jury service remarking the process began with applications from those people who had the skills and a passion for good government adding that often the best jurists came from recommendations within a community. Alison Edwards stated on behalf of the board of directors, commissioners and staff of the Orange County Human Relations agency, she was honored to accept the proclamation on behalf of the International Day of Tolerance. She spoke to the need to end hate speech and bigotry in any setting and looked forward to working with the city to foster the type of community that included all cultures. An individual from Republic Services accepted the proclamation for American Recycles Day, inviting the community to visit their facility on November 15 for a tour of the latest in technology He also introduced MRFy the fully automated Recycling Robot who had just visited Danbrook Elementary School in Anaheim and was the newest member of the recycling team. City Council Minutes of November 5, 2013 Page 5 of 16 A Hopi native - American tribal member from northern Arizona and resident of Orange County accepted the proclamation in honor of American Indian Heritage month, remarking many of the large American cities were built by native American workforce development programs and that American Indians reflected the highest population of any ethnicity in the military, having served this country for generations. At 5:20 P.M., Mayor Tait called to order the Anaheim Housing Authority and Anaheim Public Financing Authority (in joint session with the Anaheim City Council). ADDITIONS /DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS (all agenda items, except public hearing): The City of Anaheim's decorum policy was provided to the public by the City Clerk. Jonathan Marquez, student, talked about specific maintenance and other needs for Anaheim High School and how those needs impacted him and other students. Mayor Tait remarked that information would be passed onto the school board as maintenance was within their purview to address, adding he appreciated Mr. Marquez' attendance at this meeting. Carol Latham, speaking on behalf of the Fall Festival Committee, specifically thanked city staff members who went above and beyond the call of duty to make sure this event was successful. Bob Tiscareno, resident, spoke to the homeless problem in La Palma and Boysen Parks, adding that a ban on camping would not provide a solution and that a year -round shelter could offer an answer, suggesting specific locations he thought would suffice as well as funding alternatives. William Fitzgerald, Anaheim HOME, opposed approval of Item No. 17, and suggested a potential location for a permanent shelter to house the homeless on Weir Canyon Road. Erika Miller, Chance Theater, announced the Chance Theater took home three ovation awards out of 400 eligible shows throughout the greater Los Angeles area. She promoted the productions coming in November and December and encouraged the community to attend. Hoagy Holguin, representing ASBO (Anaheim Small Business Organization), invited council to attend monthly meetings in support of small businesses, a vital component to Anaheim's local economy. Malik Azhar, speaking on behalf of taxi drivers in Orange County, felt his requests for meetings with the city had been dismissed and that he was entitled to be heard regarding racial discrimination and corruption against taxi drivers from the country of India by the city's taxi franchisees. James Robert Reade spoke of the current status of various Latino gang members operating in the city of Anaheim. Dorothy Rose, Orange County Symphony, addressed the after school musical program and its success with over 1,300 children participating and announced the next concert would highlight rhythms of Latin American, inviting the community to attend and support this cultural event. City Council Minutes of November 5, 2013 Page 6 of 16 Roussan Joshua Collins addressed the many causes of poverty worldwide and its impacts and spoke in opposition to Item No. 17, the no camping in parks ordinance. Wendy Voorheis addressed her comments in opposition to Item No. 17, emphasized that Anaheim should be able to find a full -time shelter for the homeless along with more programs and services or at the very least, not take action on this proposed ordinance until a proper year - round shelter had been identified. Kris Law, Orange County Visitors & Convention Bureau, discussed Angels Baseball and the important benefits in retaining a major league baseball team in Anaheim. He thanked the city for acknowledging the team's economic value and recommended the city take steps towards an aggressive public outreach campaign to educate and inform the public about this effort. David Patteson, volunteer and ministry coordinator for an Orange County organization, opposed Item No. 17, remarking that it would not address public safety concerns and urged the city to pursue any criminal conduct occurring in the parks rather than banning the homeless from remaining there. Irene Kraemer, resident, spoke in support of Item No. 11, regarding permit parking. She stated her neighborhood had gone through the process, surveyed the resident, and voted for permit parking, and were now asking that council approve this request. Ross McCune, Castile Builders /Chamber of Commerce, discussed the importance of keeping Angels Baseball in Anaheim. In terms of economic benefit, he reported the direct annual income from Angels Baseball was $120 million /year and when indirect spending was factored in, that figure increased to over $200 million. He added that the loss of the Angels would be a blow to the prestige, stature, economy and branding ability of Anaheim, urging council to successfully negotiate a lease. Todd Ament, Chamber of Commerce, spoke in support of finding a win /win solution to ensure Angels Baseball stayed in Anaheim and continued to generate the very significant economic impacts the city had seen for years. He was here on another matter, the Orange County Water District's (OCWD) consideration of having a potential power plant at Ball Road and Phoenix Club Drive. He added that the Chamber created a coalition of many businesses in that area who were concerned about this facility and its potential negative impacts. He added the Chambers had met with neighbors within the proposed power plant site with over 225 people attending and that many would also attend a meeting at OCWD on November 20 to let the board members know of their concerns. He added the OCWD Board was trying to accelerate the process and in doing so, were skipping a planning commission hearing to look at impacts on how the power plant facility would impact nearby properties and residents. He encouraged interested persons to let their concerns be known to OCWD and to visit the website, www.stol2thepowerplant.com for particulars. Stephen Faessel, resident, remarked that because of the closure of San Onofre, Southern California Edison (SCE) was looking for additional generation resources and was considering this site at Ball Road /Phoenix Club Drive. He added the community was working hard to make the elected officials of OCWD aware of their concerns and the possibility this property could be used for some alternative use, remarking a power plant was an inappropriate land use in this particular area. He pointed out that due to utility deregulation in the 90's, the siting and operating of these facilities were no longer under the purview of a municipality's elected officials City Council Minutes of November 5, 2013 Page 7 of 16 and the California Energy Commission and its powers that considered these projects were based in Sacramento, not locally. He urged residents to visit the website and send notes and letters to elected officials to express their concern for this proposed construction and encourage those directors to consider an alternative use. Daniel Lam objected to the location of a possible multi - million sports complex stating it would be fine if residents lived in Orange and if constructed, the city of Orange should pay. Laurel Eriks remarked she had been observing council meetings since the end of August as part of her internship at Fullerton College stating she would appreciate the opportunity to interview members of council in the near future. Gabriel Royola thanked the city for supporting six day delivery service for the United States Postal Service, remarking Anaheim was the first city to do so. At 6:13 P.M., the council session was adjourned to consider the Anaheim Housing Authority and Anaheim Public Financing Authority agendas. Council session reconvened at 6:15 P.M. CONSENT CALENDAR: Mayor Tait removed Item No. 17 from the consent calendar for further discussion. Mayor Tait declared a potential conflict of interest on Item No. 16 as he firm worked for the postal service and Mayor Pro Tem Eastman indicated she would record an abstention on Item No. 19, the September 24, 2013 Council meeting minutes. 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 Mayor Pro Tern Eastman. Roll Call Vote: Ayes — 5: (Chairman Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. 8105 5. Receive and file minutes of Public Utilities Board meeting of September 25, 2013. 8105 6. Reappoint Brenda Nardolillo to the Anaheim Workforce Investment Board, representing business, to a four year term ending November 16, 2017. 7. Approve an agreement with Atkinson, Anderson, Loya, Ruud & Romo, in an amount not AG R-7879 to exceed $50,000, for the state - mandated preventative harassment training of Anaheim personnel. 8. Approve Amendment No. 2 of the Right of Entry and License Agreement with Asplundh Construction Corporation extending the term of the license on a month to month basis AGR- 7155.2 for construction staging and equipment storage at 1710 Anaheim Way for public utility projects. 9. Authorize staff to begin early acquisition activities of real property for the Brookhurst Street Improvement Project from State Route 91 to Interstate 5, prior to approval of the National D175 Environmental Protection Act document, as allowed by the Federal Highway Administration as set forth in the Code of Federal Regulations Title 23, Part 710.501 and in compliance with Caltrans' guidelines. City Council Minutes of November 5, 2013 Page 8 of 16 10. RESOLUTION NO. 2013 -163 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM designating Gaymont Street from Orange Avenue to south end of Gaymont Street as "Permit Parking Only" street within Permit - Eligible Parking District No. 24. 11. RESOLUTION NO. 2013 -164 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM designating Alexis Avenue from Loara Street to Gilbuck Drive, Gilbuck Drive from Elm Avenue to 460 S. Gilbuck Drive, Elm Avenue from Gilmar Street D175 to Gilbuck Drive, Sonya Street from Alexis Avenue to Elm Avenue and Wilde Street from Alexis Avenue to north end of Wilde Street as "Permit Parking Only" street within Permit - Eligible Parking District No. 25. 12. RESOLUTION NO. 2013 -165 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expanding Permit - Eligible Parking District No. 3 and designating Kimberly Avenue from Ninth Street to flood control channel, Kimberly Lane from Ninth Street to east end of Kimberly Lane, and west side of Ninth Street from D175 Kimberly Avenue to 1771 S. Ninth Street as "Permit Parking Only" street within Permit - Eligible Parking District No. 3 and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(13)(3). 13. RESOLUTION NO. 2013 -166 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM expanding Permit - Eligible Parking District No. 8 and designating west side of Bayless Street from Cerritos Avenue to Cris Avenue as "Permit Parking Only" street within Permit - Eligible Parking District No. 8 and determine the D175 action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(B)(3). 14. RESOLUTION NO. 2013 -167 A RESOLUTION OF THE CITY COUNCIL OF D114 THE CITY OF ANAHEIM amending and restating the procedures and rules of order for the conduct of City Council meetings. 15. RESOLUTION NO. 2013 -168 A RESOLUTION OF THE CITY COUNCIL OF D114 THE CITY OF ANAHEIM establishing the dates and time for regular meetings of the City Council for the 2014 calendar year. 16. RESOLUTION NO. 2013 -169 A RESOLUTION OF THE CITY COUNCIL OF R100 THE CITY OF ANAHEIM in support of House Resolution 30 and urging the United States Postal Service to take all appropriate measures to ensure the continuation of 6- day mail delivery service. Mayor Tait recorded an abstention on this item. Motion by Council Member Kring to approve, seconded by Mayor Pro Tem Eastman. Roll Call Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and Murray.) Noes — 0. Abstention — 9: Mayor Tait. Motion Carried. 18. ORDINANCE NO. 6291 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal C280 Code relating to zoning (Reclassification No. 2013 - 00256; DEV2013- 00064; 2243 South Loara Street). City Council Minutes of November 5, 2013 Page 9 of 16 19. Approve minutes of the Council regular meeting of September 24, 2013 and special D114 meeting of September 30, 2013. Mayor Pro Tem Eastman recorded an abstention on Item No. 19 (specifically addressing the September 24, 2013 minutes). A motion by Council Member Kring to approve Item No. 19, seconded by Mayor Pro Tem Eastman. Roll Call Vote: Ayes — 4: (Mayor Tait and Council Members: Brandman, Kring and Murray. Noes — 0. Abstention — 1: Mayor Pro Tem Eastman. Motion to Approve Carried. The roll call vote for September 30, 2013 minutes reflected the following: A motion to approve by Council Member Kring, seconded by Mayor Pro Tem Eastman. Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion to approve carried. END OF CONSENT CALENDAR: 6:26 P.M. 17. ORDINANCE NO. 6290 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 11.10 to Title 11 of the Anaheim Municipal Code relating to M142 camping and storage of personal property in public areas and amending Section 1.16.030 of Chapter 1.16 of Title 1 and Section 13.08.020 of Chapter 13.08 of Title 13 of the Anaheim Municipal Code to be consistent with the addition of said Chapter 11.10 (Introduced at Council meeting of October 22, 2013, Item No. 13). City Manager Marcie Edwards reported that as previously directed by this council, the planned enforcement of the no camping ordinance was timed to coincide with the Armory Shelter opening in the city of Fullerton. Council, in addition, also requested staff work with the County of Orange to find longer term shelter options. She added that the city would not confiscate personal property and would only take property that had been abandoned, adding that this council made it clear their interest was in balancing the needs of the entire community including those who were homeless. Community Services Director Terry Lowe announced that Anaheim and Fullerton were working with the County of Orange to open the Armory shelter earlier and at the direction of council, the city would not enforce the no camping in the park ordinance until 30 days after the shelter opened and the public education process that was already underway had informed the homeless about the changes and opportunities available to them. He explained the check -out center continued to be used each week with more people participating and the shelter would be open in less than two weeks. At that point, he advised, each day a bus would come by and transport the homeless to the shelter if they wished and brought back the next day and the process would continue until at least the middle of March. In the meantime, he added, staff was looking for alternatives above and beyond that date to actively find a permanent shelter that would serve the north Orange County area. Tomorrow a meeting with Mercy House staff was scheduled to ensure everyone was on the same page and at the same time, staff was working to mobilize the faith -based community and non - profit providers for a more coordinated level of service and food to be provided. Mayor Tait commended staff for their efforts towards a permanents shelter, remarking the goal was not to get people out of the parks, but to find a solution to this problem. Mayor Pro Tem Eastman remarked she regularly checked in with Supervisor Nelson on his commitment to locate a permanent homeless shelter and she would continue to do so, adding that she had been told a possible site had just been brought to his attention. City Council Minutes of November 5, 2013 Page 10 of 16 Council Member Murray the moved to adopt ORDINANCE NO. 6290, AN ORDINANCE OF THE 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 and amending Section 1.16.030 of Chapter 1.16 of Title 1 and Section 13.08.020 of Chapter 13.08 of Title 13 of the Anaheim Municipal Code to be consistent with the addition of said Chapter 11. 10, seconded by Mayor Pro Tern Eastman. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried. 20. Consider (re)appointing two City Council Members to the Audit Committee. D128 APPOINTMENT: Mayor Tait (currently held by Mayor Tait) APPOINTMENT: Mayor Pro Tern Eastman (Vacant) Debbie Moreno remarked that typically the audit committee met once or twice a year to review the results of the audit report, to hear directly from the city's auditor(s), and to review the Internal Audit report as well. Mayor Tait then moved to nominate himself and Mayor Pro Tern Eastman to the audit committee, seconded by Council Member Kring. The appointments were unanimously approved. D124 21. Receive and file report, council update, and discussion on Angels Baseball lease community outreach efforts, status of the property valuation analysis, and discussion on how staff intends to proceed in the negotiation process. Paul Emery, Assistant City Manager, reported staff was returning to discuss three areas related to Angels Baseball concerning a potential lease extension. Specifically, he stated, Council Member Murray requested staff present information on community outreach efforts and Mayor Tait requested the status of the property valuation and the proposed negotiation process. As a reminder, he pointed out, these were the only three items agendized for discussion and staff's comments would only address these three areas as it related to Angel's baseball. In the area of community outreach, Mr. Emery remarked, staff proposed the outreach effort to be an ongoing cooperative process with community members, business and civic stakeholder and would include enhanced input from the community, educating and informing the public on the impacts of Angels Baseball, incorporating public response, and developing consensus as negotiations moved forward. In addition, staff would be sharing mutual goals of the city and Angels Baseball, including the following: 1) keeping the Angels in Anaheim, 2) generating a funding stream from the stadium and stadium district properties to provide benefits to the city and the community, as well as offset projected stadium capital improvements, 3) getting a balanced allocation of benefits from the perspective of the Anaheim community, 4) acknowledging that Angels Baseball whose current parking rights on the stadium property created the greatest limitation on the stadium's value and had the greatest flexibility and opportunity for a maximum benefit to all the parties by crafting value on the stadium district property, 5) protecting the city from risk where losses could exceed benefits, 6) protecting Angels Baseball from community benefit obligations where revenues were insufficient to offset investments, and 7) optimizing the value of the community, the city, and Angels Baseball. City Council Minutes of November 5, 2013 Page 11 of 16 He stated that community workshops would include specific outreach to civic groups including the neighborhood district councils, the two rotaries, Kiwanis, Lions Clubs and others, and in addition, staff would schedule a workshop for the public at large to be held at the convention center. Staff would also continue efforts to reach out to the public to provide education and receive feedback via the website, Anaheim Magazine and other tools that offered opportunities for all members of the community to be engaged in this process. Mr. Emery stated with regard to the property valuation analysis, in September, a preliminary analysis completed by Keyser Marston was provided for the property valuation at the stadium district site. This preliminary document offered a range of values dependent upon a number of factors, including the timing of development, infrastructure estimates, and construction costs. Staff's objective, Mr. Emery remarked, was to define the value of the site by developing refined descriptions of planned density, construction costs, infrastructure needs, compatible parking opportunities and a potential absorption rate phasing of development resulting in a residual land value. He added that staff was not recommending a traditional appraisal due to the unique characteristics of the property, including the shared use currently in place with the stadium and the parking restraints present. He anticipated having a more fully refined valuation model in place by January 2014 which could be used to assist in negotiation with the Angels and guide the city in its position. Regarding the process for negotiation with Angels Baseball, Mr. Emery stated the city's negotiation team received direction from council and was allowed to meet with council in closed session to discuss issues related to price in terms of payment for the purchase, sale or lease of properties. Other issues not related to price and terms, he added, could be discussed publicly. The team would then develop a proposal that aligned with council's direction and balanced consideration to the city and any benefits conferred to Angels Baseball. As appropriate, staff would identify benefits under consideration to make public discussion meaningful and would share negotiated terms that aligned with the mutual goals of both the city and Angels Baseball. Mayor Tait requested clarification specifically on topics that could be discussed that were heard in closed session with City Attorney Houston responding the Brown Act indicated council could speak about price in terms of payment and could include the amount of consideration, the rights, profit or benefit pursued by the city in exchange for real property. Any discussion on the manner and timing of how a consideration would be paid and essential items for arriving at a price and payment terms would be considered revealing information that would undercut the bargaining position of the city. Specifically, he added, that included documentation, whether it was closed session reports or appraisals prepared in connection with the negotiation and the city's position relative to any real property transaction. Mayor Tait remarked an article in Sunday's Register discussed the economic impact study on Angels Baseball, asking staff if they had chance to read that article. Mr. Emery responded he had an opportunity to read the article but as it was not agendized for this meeting, his ability to discuss it was limited. Ms. Edwards added that staff had looked at the article, developed responses to it and council would have that information by tomorrow. Mayor Tait spoke of the assumptions in the economic study that were based on industry research regarding fan spending at similar major league venues nationally, adding that for the city to actually negotiate this property, its economic value must be identified. Mr. Houston remarked that staff could not comment on specifics of that article as it was not agendized with Mayor Tait emphasizing that his intent when he requested this subject be agendized was for a broad discussion on this deal specific point in public, and as he pointed out, the only way it could be discussed by council was at a noticed public meeting. Mr. Houston City Council Minutes of November 5, 2013 Page 12 of 16 remarked, this would not prohibit Mayor Tait from including the economic study at a future council meeting with Mayor Tait remarking he would do that since that study was the basis for the memorandum of understandings. Ms. Edwards added that staff's feedback on the article would be available publicly tomorrow, on the website and for distribution to council. She emphasized she understood that Mayor Tait wanted the economic study to be agendized for a broader discussion the next time Angels negotiations was scheduled. Mayor Tait expressed his disappointment that staff reported a certified appraisal would not be conducted since every other property the city transferred included an appraisal on the value of that property. Specifically he moved to request a certified appraisal for the 155 acres of stadium property be performed, seconded by Council Member Kring for discussion purposes. Council Member Kring asked staff how such an appraisal would be addressed when 90 percent of the parking on that site was under the purview of Angels Baseball, leaving about 25 -26 parking spaces available for development. Executive Director of Community Development, John Woodhead responded that most appraisals were based on comparable sales or some type of real estate activity relevant to that particular property. In this case, the site was unique both in scope, size, and property entitlements along with restrictions as to how that property could be developed. As there were no sale comparables, he believed the approach would be to get an opinion value based on a number of assumptions; i.e., the 155 acre size, infrastructure costs, what was proposed for development taking into consideration the property entitlements of the site as well as entitlements tied to the Platinum Triangle. He added it would be difficult to deduce a specific value and would suggest laying it out in very simplistic terms to come up with some sort of opinion value, set parameters on what the assumptions on development and rents would be, and would anticipate receiving a wide range of values out of that process. Council Member Kring asked how long that process would take and the probable cost with Mr. Woodhead replying that he couldn't guess on the cost but suggested by January, there could be some information worthy for council discussion. Mayor Tait stated there was a memorandum of understanding signed by Angels Baseball and the city which laid out the proposed foundation for an agreement. He suggested the a certified real estate appraiser would take into account the entitlements and encumbrances for parking based on the Angels remaining in Anaheim and consider cash flow from that portion of the property and could figure the residual value. Should the Angels leave, another appraisal would be required where there were no parking restrictions and that property could be developed with 5,100 residential units, 3 million square feet of commercial space as well as 3 million square feet of retail space. He added there could also be a joint venture between the city and Angels organization, a deal that he could support. He felt he could also compromise on the team name and drop "Anaheim" as long as "Los Angeles" was dropped as well and could compromise with California Angels or Southern California Angels or Orange County Angels; any one of those titles could work for him, but the first step in this process, he emphasized, required an appraisal of the property. Council Member Murray concurred that a public discussion on staff's response to the economic study was needed, specific to the property and its value; she was open to finding a baseline value as to the property's value with and without a stadium. She asked staff how the property was appraised when Archstone was interested in the site. Community Development Director John Woodhead responded when the idea of Sportstown was first considered and thereafter when the plan fell through, there were a number of proposals submitted to the city. The explained the values were disparate from those developers requiring subsidies to cover all the land value to others asking for a portion of revenue, and with those subsidies, he noted, the developers were City Council Minutes of November 5, 2013 Page 13 of 16 willing to pay $380 million for the property. Since none of those deals were completed, he emphasized he would not attach much significance to that figure. Council Member Murray had been unaware that an economic assistance component was part of those earlier discussions. Ms. Murray added she was open to moving forward to find out the value and worth of this asset but wanted to ensure that the data received, whether from an appraisal or valuation, could be counted on as reliable, suggesting that both options be considered. Mayor Pro Tem Eastman remarked that staff indicated that by January, they should have a better understanding of what that property was worth, asking if Angels Baseball would conduct a similar analysis for their own use. Mr. Emery replied that any prudent developer would go through several iterations of how they think the land could be developed and to place a value on the land. Discussion was held as to whether a motion to take action on a non - agendized matter was appropriate. Ms. Edwards reported that staff was going to conduct an appraisal with the stated encumbrances, with the understanding that the information itself could be considered confidential and restricted to closed session discussions. Mayor Tait objected because he believed the appraisal should be made public, not private. Mr. Houston remarked that an appraisal was supported by an attorney general opinion as being a confidential piece of information, the public interest of which was to provide the city's negotiation positions until it could be disclosed without undercutting negotiations. Mayor Tait disagreed stating it would only undercut negotiations if the appraisal was a very low figure and Ms. Edwards responded that at some point in time that information would be made public. Mayor Tait then called for the question on his motion to conduct a certified appraisal of the stadium property, which had been seconded by Council Member Kring. Council Member Kring remarked she would have to cancel her second as she believed the appraisal amount should not be made public at this point in time. Mr. Houston interjected that when a valuation was made, the common practice was that it be properly shared and discussed in closed session under price and terms and payment and if at that point, if council wished to waive closed session with the advice of counsel and others, it could do so but it at least allowed council to view the information in closed session and then make a deliberate decision on whether to release it depending on the timing of the negotiation process. The City Clerk then reported the motion to conduct a public appraisal of the property failed due to the lack of a second. Mayor Tait emphasized to staff that when the appraisal was conducted, he would like to know what the value of the 155 acres was if it was placed on the market tomorrow; and what the replacement value was for the entire site, the 155 acres and the stadium, should Angels Baseball depart. Council Member Murray commented that one of the items for discussion this evening was the negotiation process, asking for clarification on the Mayor's suggestion of a 50/50 joint venture development of the stadium district between the city and Angels Baseball asking if that deal would take into consideration the structural upgrades needed for the stadium in the range of $130 -$150 million. Mayor Tait remarked under the existing lease, it was Angels Baseball's obligation for the maintenance of the stadium and if they remained, any and all improvements should be at their cost. Ms. Murray remarked that for any tenant, improvement costs in that range could be a good motivation for them to depart. Regarding the community outreach program, Council Member Murray requested it be more robust than the workshops identified earlier by staff and that the city engage in communicating with residents on the purpose and intent of the memorandum of understandings, the economic City Council Minutes of November 5, 2013 Page 14 of 16 study, and any future economic studies that were planned or clarified via various social media websites, Anaheim magazine and newsletter including media outlets that serviced ethnic communities in Anaheim, Anaheim Bulletin, and in coordination with community and other organization publications as well. Council Member Brandman moved to receive and file the report, seconded by Mayor Pro Tern Eastman. Roll Call Vote: Ayes — 4: (Mayor Pro Tern Eastman and Council Members: Brandman, Kring and Murray.) Noes — 1: Mayor Tait. Motion Approved. PUBLIC HEARING: At 7:28 P.M. Mayor Tait stated there was a potential conflict of interest as his firm had worked with AT &T and Verizon and left the dais. 22. This is a public hearing to consider a resolution creating Underground District No. 62 along Miraloma Way and Miraloma Avenue from the 91 Freeway to Miller Street, and on T107 Miller Street from Miraloma Avenue to La Palma Avenue. RESOLUTION NO. 2013 -170 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM creating Underground District No. 62 ( Miraloma). Dukku Lee, General Manager, reported the Utility Underground Conversion program was in its 23 year and was over halfway completed, adding that improvements increased reliability for Anaheim residents and businesses and improved Anaheim's roadways. This specific hearing would create Underground District No. 62, which included a section of railroad between the 91 and 57 freeways, called Miraloma Way. The first phase of the process would be accelerated to coordinate with the Miraloma Family Resource Center planned for completion in the fall of 2014 to allow heavy construction and excavations for the underground facilities. The final phase was scheduled to be completed by December 2015 and included segments located along Miraloma Avenue from the 91 Freeway to Miller and south to La Palma Avenue. Mr. Lee explained the district was formed to address reliability in terms of the electric supply system and as the overhead lines on Miraloma were prone to vehicle accidents and weather related outages, the undergrounding of those lines offered higher reliability. Mayor Pro Tern Eastman opened the public hearing. William Fitzgerald opposed the project, remarking Latino residents were unfairly funding undergrounding in Anaheim Hills and the Resort District. With no other comments offered, Mayor Pro Tern Eastman closed the public hearing. Council Member Kring remarked Mr. Fitzgerald was wrong and responded that the undergrounding of Anaheim's utility wires was done in the most cost - effective manner and in the mid -90's, there was a $500 million bond that was issued to underground the resort area, put in monument signs and beautify that area in terms of landscaping. Those bonds were sold and continued to be. She added that if the city ever defaulted, Disney would be on the hook for those bonds. Resort landscaping was also not paid for by taxpayers, the property owners in the City Council Minutes of November 5, 2013 Page 15 of 16 Resort area imposed a fee on themselves to pay for the upkeep and beautification of the area to attract tourists. Council Member Murray appreciated staff's efforts, remarking this was two decades of quality work and continued to complete the program in every neighborhood and every aspect of the city which was beneficial to residents and businesses as well as visitors to the City, adding it was one of Anaheim's hallmark programs. Mayor Pro Tem Eastman remarked that the developers of Anaheim Hills paid for undergrounding as part of their development costs. She was also appreciative that the undergrounding project was coordinating efforts with the community center in this area. Council Member Kring moved to approve RESOLUTION NO. 2013 -170 OF THE CITY COUNCIL OF THE CITY OF ANAHEIM creating Underground District No. 62 (Miraloma), seconded by Council Member Murray. Roll Call Vote: Ayes — 4: (Mayor Pro Tem Eastman and Council Members: Brandman, Kring and Murray). Noes — 0. Abstention — 1: Mayor Tait. Motion Carried. Mayor Tait returned to the dais at 7:46 P.M. REPORT ON CLOSED SESSION ACTIONS: Michael Houston, City Attorney, reported City Council authorized a counter claim against plaintiff Perez (Closed Session Item No. 3) with a vote of 5 -0. COUNCIL COMMUNICATIONS: Council Member Brandman spoke of the Annual Halloween Festival, Heroes with Hearts Awards Dinner, and the recognition of Linda Horace, Nohl Canyon Elementary School, as Teacher of the Year. He announced the Gift of History on November 7 and Veteran's Day Ceremony on November 9 and requested discussion on the CDBG allocation process be placed on the agenda, within the next 30 -60 days, and thanked and recognized the service of our military veterans. Council Member Murray spoke of her ride -along with Sgt. Janocha, Sgt. Triplett, and Officer Starke and thanked them for their time. She expressed concerns about the amount of criminal activity in the motels and requested staff take a look at the Long Beach Abatement Program. She congratulated Linda Horace on her recognition as Teacher of the Year and announced The Rock's Sol de Mexico mariachi event on November 9. She spoke of the Gift of History event and thanked Mayor Pro Tem Eastman for all her efforts. She also announced the Veteran's Day ceremony and thanked Council Member Kring for her contribution. Council Member Kring thanked all volunteers that participated in the Annual Fall Festival and congratulated Linda Horace as Teacher of the Year. She spoke of the Gift of History on November 7 and thanked Mayor Pro Tem Eastman for her work on the event and announced the Veteran's Day ceremony on November 9. Mayor Pro Tem Eastman spoke of the Gift of History and thanked all the volunteers that helped stuff bags for the event. She spoke of the 13 MEU Thanksgiving fundraiser, announced the International Game Day on November 16 at Haskett and Ponderosa Libraries, and the Veteran's Day Motorcycle Run and Rally on November 11. City Council Minutes of November 5, 2013 Page 16 of 16 Mayor Tait congratulated Linda Horace on receiving Teacher of the Year and requested she be honored by the City Council with a proclamation. He spoke of his participation at the Little People's Park design meeting and requested staff look into a four -way stop at Elm Street and Lemon. He also spoke about the Sycamore Middle School and Project SAY anti - bullying campaign. He thanked everyone involved in the success of the Annual Halloween Festival, discussed the military banner program, and requested the meeting adjourn in honor of all military veterans. ADJOURNMENT: With no other business to conduct, Mayor Tait adjourned the November 5, 2013 council meet at 8:06 P.M. in honor of all military veterans. Re tfully submitted, Linda N. Andal, CIVIC City Clerk