2014/02/25ANAHEIM CITY COUNCIL
REGULAR ADJOURNED MEETING OF FEBRUARY 25, 2014
AND REGULAR MEETING OF FEBRUARY 25, 2014
The regular meeting of February 25, 2014 was called to order at 3:00 P.M. in the chambers of
Anaheim City Hall and adjourned to 4:00 P.M. for lack of a quorum. The regular adjourned
meeting of February 25, 2014 was called to order by Mayor Tait at 4:04 P.M. The meeting
notice, agenda and related materials were duly posted on February 21, 2014.
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.
ADDITIONS /DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
At 4:04 P.M., Council recessed to closed session for consideration of the following items
CLOSED SESSION ITEMS:
1. PUBLIC EMPLOYEE DISMISSAL /RELEASE— RESIGNATION OF CITY
MANAGER
(California Government Code Section 54957(b)(1))
Title: City Manager
2. PUBLIC EMPLOYEE APPOINTMENT
(California Government Code Section 54957(b)(1))
Title: Interim City Manager
3. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code)
Agency designated representative: Kristine Ridge
Position: Interim City Manager
4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code)
Name of Case: Coalition of Anaheim Taxpayers for Economic Responsibility v. City of
Anaheim, Orange County Superior Court Case No. 30- 2013 - 00695342
5. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Subdivision 54956.8 of the California Government Code)
Property: 2000 East Gene Autry Way, Anaheim, CA (Angels Stadium of Anaheim)
Agency Negotiator: Tom Morton
Negotiating Parties: Angels Baseball, LP, Pacific Coast Investors, LLC, City of
Anaheim
Under Negotiation: Price and Terms of Payment Regarding Lease
City Council Minutes of February 25, 2014
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6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Subdivision 54956.8 of the California Government Code)
Property: APN 073 - 083 -33, APN 073 - 083 -34
Agency negotiator: Kristine Ridge, Deputy City Manager
Negotiating parties: City of Anaheim, Karcher Partners
Under negotiation: Terms and payment of potential purchase
Invocation: Pastor Briscoe, The Rock Church in Anaheim
Flag Salute: Council Member Gail Eastman
Acceptance of Other Recognitions (To be presented at a later date):
Proclaiming February 23 — March 1, 2014, as Peace Corps Week
Proclaiming March 3, 2014, as Read Across America Day
Guadalupe Gomez, Library Services Manager remarked that Read Across America Day was an
important event for the library in promoting literacy, lifelong learning and a sense of community.
She announced library staff would work with local schools to read to students and hold special
reading events and activities on that day.
Recognizing Marcie Edwards for her service to the City of Anaheim
ADDITIONS /DELETIONS TO THE AGENDA: None
COUNCIL COMMUNICATIONS: Mayor Tait and members of the City Council thanked Marcie
Edwards for her many years of service to the city, each speaking to her career achievements
and wishing her well on her new endeavor.
PUBLIC COMMENTS (all agenda items): The City Clerk presented brief guidelines for public
speakers.
Cecil Jordan Corcoran, Outreach Homeless Ministries, read excerpts from his religious
teachings.
Daniel DeMeyere, resident, thanked staff for visiting his neighborhood and personally viewing
problems he stated were caused by the Brookhurst Street Improvement project. He was
appreciative that some of the issues were being mitigated adding that it should not have taken
this long to make sure development debris, graffiti and other maintenance needs were taken
care of in a timely manner.
Tommy Thompson, California Apartment Association, represented ethical rental property
owners with over 100,000 units in Orange County, thousands of which were in the city of
Anaheim, offering his support to Agenda Item No. 17, a collaborative effort on a program
associated with rental housing.
James Robert Reade, resident, focused on gang- raised kids, their activities and connections to
street gangs and related lifestyles.
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Andrew Ochoa urged that government function as it was meant to do, that everyone was treated
equally and that special interests were not considered above the masses.
Ron Bengochea remarked the city and the community should deal with issues regardless of the
election results, asking that people use courtesy and respect for others, be helpful to neighbors,
and to teach their children to do the same.
Greg Diamond objected to Agenda Item No. 17 related to rental housing in the city, specifically
opposing the questionnaire being used that focused on maximum occupancy in units rather than
safety, a process that would negatively impact low income earners.
Mayor Pro Tern Murray responded that the proposed ordinance in Item No. 17 was the
culmination of a year's worth of work with city staff, community stakeholders and industry
associations involved. She did not support the check list proposed by staff, remarking she had
similar concerns with it and had read if for the first time upon receipt of her agenda packet. She
added there was nothing in the ordinance that restricted occupancy and the goal of the program
was to ensure the poor lived in safe conditions and the city had tools to enforce Anaheim's
current laws.
Chase Campos, Boy Scout Troop 524, suggested the city consider more native landscaping for
public parks and that residents be encouraged to use sustainable landscaping.
Mark Daniels stated he was in favor of a police oversight committee and stressing the fact
citizens should have the right to see records of any incident called before them to review. He
was opposed to changing the mayoral term from four years to two years, remarking that to take
back a four year term that was approved in 1992 was an insult to the city and the current mayor.
Joanne Sosa, East Street Community Initiative ( ESCRI), reported a town hall meeting was
scheduled on March 13 at ESCRI to introduce the police chief and promote a healthy dialogue
along with a presentation on the homeless outreach program. She invited all to attend.
Cynthia Ward asked that the following questions be answered regarding Angels baseball lease
negotiations: 1) that the various components that differentiated baseball stadiums (when
determining the appraisal value of the site) be detailed for the community, not lumped into a
total dollar amount; 2) that PCI would be getting the stadium land which was not tied to the
Angels staying and using the stadium, so the appraiser should factor in whether or not the
agreement was with or without PCI; and 3) what happened to the $600,000 in annual
maintenance fees provided to Arte Moreno as he reported to the media that pipes were bursting
all over the stadium and those fees were to be used for regular maintenance of the facility.
Cathy Woodard, Orange County Heritage Council, announced the Black History parade was a
successful event, thanking staff and council for their participation and support.
An unidentified individual opposed Item No. 17 related to rental housing, remarking it was a
tactic used to eradicate poverty and homelessness under the guise of revitalization and quality
of life; legislation that was considered illegal. She urged the ordinance be revised so that
renters would not be evicted and wind up in pay -by- the -week motels which were often worse
than the apartments they left.
An unidentified speaker reported there was an alternative approach to homelessness by
building lower cost tiny house villages, constructed in parking lots or wherever land was not
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used. She provided council with an article about the benefits of these 100 square foot homes
with composting toilets, solar panels, and garden space shared by the community members,
and constructed at a cost of $5,000 to $10,000 adding she understood the city was looking for a
suitable site for the homeless and suggesting this was a viable alternative to a national problem.
Keith Olesen, resident, remarked he was a strong supporter of the rental housing ordinance
because it was a way to get people who did not play by the rules, to do so. He added it was not
an attack on hardworking people or the poor, it was to force those who took advantage of the
poor and ask them to live up to the bare minimum standards for safe housing, a tool to get slum
lords to clean up their acts.
Donna Acevedo, resident, remarked she had spoken out against the public safety board last
week and was followed by a police officer on her way home who shined a light in her car
impeding her view, a dangerous situation that should not have happened. She called dispatch
indicating she wished to file a complaint, stated she hand not been able to see the officer and
was told the department would investigate and get back to her, and she was still waiting a week
later.
William Fitzgerald, Anaheim HOME, claimed a threat had been made as he was leaving the
chambers by a council member at the last meeting, citing penal code section 422.
Council Member Kring responded no threats were made and Mr. Fitzgerald's single objective in
life and why he attended every council meeting was to have the Disney fireworks stopped.
Eric Anderson, resident, supported Item No. 17, remarking he owned several rental properties
which housed Section 8 residents and he did not feel it was onerous on property owners to
meet minimum codes in Anaheim.
Theresa Smith, resident, stated she was not against the proposed public safety board, just felt it
did not have enough teeth to it. She was concerned over member selection and the need for
transparency, adding that she did not want a board established just to appease the community;
she wanted it to be effective.
CONSENT CALENDAR: Mayor Tait removed Item Nos. 7, 12, 14 and 16 from the consent
calendar for further discussion and declared a potential conflict of interest on Item Nos. 6 and 11
as his firm had worked with the parties involved. Mayor Pro Tern Murray pulled Item No. 8.
Council Member Eastman 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 to each City Council Member and as listed on the
consent calendar, seconded by Mayor Pro Tern Murray. Roll Call Vote: Ayes — 5: (Chairman
Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried.
D117 I . Approve the Investment Portfolio Report for January 2014.
?. Determine on the basis of the evidence submitted by Prologis, that the property owner
has complied in good faith with the terms and conditions of Development Agreement No.
AGR -4829 2006 -00004 for the 2012 -13 review period for the Experience at Gene Autry Way project
in the Platinum Triangle located at the southwest corner of State College Boulevard and
Gene Autry Way.
City Council Minutes of February 25, 2014
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3. Determine on the basis of the evidence submitted by Lennar Platinum Triangle Partners,
AGR -3750 LLC, that the property owner has complied in good faith with the terms and conditions of
Development Agreement No. 2005 -00008 for the 2012 -13 review period for the A -Town
Metro project in the Platinum Triangle located at 1440 East Katella Avenue.
4. Accept the proposals and approve agreements with Mariposa Landscapes, Inc., and
AGR -7978 Valley Crest Landscape Maintenance, in the annual amounts of $738,766 and $941,548
AGR -7984 respectively, for landscape maintenance services for the City's parks for a one year
period with up to four one -year optional renewals, and authorize the Purchasing Agent to
exercise the renewal options, in accordance with Request for Proposal #8058.
5. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing
D180 Agent to issue a purchase order to the California Office of Emergency Services, in the
amount of $245,960 plus applicable taxes, for reconfiguration of two existing mobile
command center vehicles for the Police Department.
6. Approve Lot Line Adjustment No. 0000707 for adjoining city -owned properties located at
P170 1508 and 1512 South Brookhurst Street so that it becomes one parcel and authorize the
AGR -7986 Mayor and City Clerk to execute and record the Lot Line Adjustment.
Mayor Tait declared a potential conflict of interest on this item and abstained on the vote:
Motion to approve by Council Member Eastman, seconded by Mayor Pro Tem Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Murray and Council Members Eastman, Brandman and Kring).
Noes -0. Abstention - 1: Mayor Tait). Motion to approve carried.
9. Approve and authorize the City Manager to execute a Lease Agreement with USS Cal
Builders, Inc., for the northerly part of city -owned property located at 1411 North Tustin
AGR -7987 Avenue for the temporary storage of earth stockpile, parking and storage of construction
vehicles, and construction staging for the Tustin Avenue /Rose Drive railroad grade
separation project and authorize the Public Utilities General Manager to take the
necessary actions to implement and administer the Lease Agreement (Assessor's Parcel
Number 345 - 151 -05).
10. Approve and authorize the City Manager, or her designee, to execute and administer the
AGR - 5478.0.1 First Amendment to Workforce Investment Act Vendor Agreement with KML Enterprises
Career Development, LLC to increase the maximum subgrant amount from $250,000 to
$350,000 for additional occupational skills training through June 30, 2014.
11. Approve and authorize the Public Utilities General Manager to execute and to take the
necessary actions to implement and administer a second amendment to License
AGR- 1545.2 Agreement OC -172 (Agreement) with the Orange County Transportation Authority
extending the Agreement term by ten years for electric utility facilities use of the
Metrolink right -of -way, and any related documents, including future amendments solely
to extend the term of the Agreement.
Mayor Tait declared a potential conflict of interest on this item and abstained on the vote:
Motion to approve by Council Member Eastman, seconded by Mayor Pro Tem Murray. Roll Call
Vote: Ayes — 4: (Mayor Pro Tem Murray and Council Members Eastman, Brandman and Kring).
Noes -0. Abstention - 1: Mayor Tait). Motion to approve carried.
City Council Minutes of February 25, 2014
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13. RESOLUTION NO. 2014 -036 A RESOLUTION OF THE CITY COUNCIL OF
AGR- 8000.2 THE CITY OF ANAHEIM for approval of and authorization to execute and deliver the
Second Amendatory Power Sales Contract (with Intermountain Power Agency).
15. RESOLUTION NO. 2014 -038 A RESOLUTION OF THE CITY COUNCIL OF
E127 THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a
Special Municipal Election to be held on Tuesday, June 3, 2014, for a proposed initiative
measure pursuant to Charter Section 1303 and California Elections Code Section 9222.
END OF CONSENT CALENDAR:
7. Approve the Anaheim Tourism Improvement District (ATID) Fiscal Year 2011/12 and
T108 Fiscal Year 2012/13 Annual Reports for the marketing and transportation component
funds, accept the funds allocated by the ATID Transportation Committee for the ARC
Project, and increase the Department of Public Works fiscal year 2013/14 expenditure
appropriations by $490,000.
Prior to any discussion being held, Mayor Tait remarked the city attorney told him he did not
meet the threshold dollar amount for a conflict of interest on this item that included a related
agreement with Orange County Transit Authority (OCTA) and was not required to recuse
himself from considering the item.
Greg Garcia, Deputy City Manager, reported in 2010, council approved the establishment of
ATID for the purpose of increasing local tourism and convention - related programs as well as to
provide for transportation improvements within the Resort and Platinum Triangle. The District
operated under the general supervision and oversight of the city and under a City Council
approved management plan for a term of 30 years. The Anaheim /OC Visitor & Convention
Bureau was selected as the entity to administer the marketing component funds initially with the
ATID establishing a transportation committee to oversee the use of the transportation
component funds. He added the ATID consisted of an assessment equal to two percent of the
hotel room rent upon all hotels within the ATID boundaries; i.e., Platinum Triangle and the
Anaheim Resort. Seventy -five percent of the funds were dedicated to marketing and promotion -
related matters and the remaining 25 percent of the funds were dedicated to
planning /design /construction and operation of transportation improvements within the resort
which could include Anaheim Rapid Connect or ARC transit system.
Mr. Garcia remarked that so far ATID had been in successful partnership with hotelier partners
in allowing the city to make an investment in the resort and also to make an investment in key
transportation improvements in the resort, at the same time allowing the V &C Bureau to fund
robust marketing to increasing conventions and tenants at conventions. Specifically, the
Visitors & Convention Bureau and the Transportation Committee were required to submit annual
reports to council for approval which were before them for consideration this evening and in
addition, staff was requesting council approval for allocation of ATID transportation funds to
support further ARC project activities.
Mayor Tait inquired if the $490,000 would be transferred to ARC. Natalie Meeks, Public Works
Director reported it was being allocated to fund part of matching funds per the OCTA agreement
and to do additional study on that system. Mayor Tait remarked money had already been
expended on the street car project with various studies conducted and he had requested
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answers as to the congestion impact on Katella Avenue and Harbor Boulevard from the street
car operation, specifically whether it would it increase mobility or cause congestion. In addition,
he had asked what the on -going operation and maintenance (O &M) cost was for the street cars
and until he had answers to those questions, he would vote no against any further expenses. In
addition, he noted there had been some questions about the route and a property owner who
did not know whether his property was going to be acquired or not.
Mayor Pro Tern Murray asked if the funds the City was accepting were privately provided by the
resort community because of its support of this project with Mr. Garcia responding that all the
funds were a result of an assessment on hoteliers with no public monies involved. She then
asked when many of the questions the mayor and others asked would be answered with Ms.
Meeks responding staff was in the process of conducting a detailed environmental study which
would completely address the Mayor's concerns. Ms. Meeks indicated when the initial
alternatives analysis was performed, a less detailed traffic study was used and that analysis did
not account for any cars being removed from the street, only the street cars being added to that
street. With the environmental process, the details would now be considered; i.e. how many
cars did this system remove from the street, how many would it remove from Katella as
opposed to some other route and how to break that information down. Ms. Murray asked when
that report would be available with Ms. Meeks replying the environmental document would be
released in December of this year with a detailed traffic study as an appendix to that document
for all to review and comment upon during the public review period.
Mr. Garcia remarked that the formation document specifically stated that 25 percent of the
transportation funds would go towards the O &M of this system, and that the public was not on
the hook. Mayor Pro Tern Murray remarked the business community was helping with the
capital investment costs and the on -going operation and maintenance of the ARC system, and
that she was comfortable going forward. Mayor Pro Tern Murray then moved to approve
Agenda Item No. 7, seconded by Council Member Kring. Mayor Tait pointed out the O &M costs
were not known and should the cost fall short of the ATID contribution, the general fund would
most likely have to make up the cost. Ms. Meeks responded that staff believed with ATID
revenues, ticket sales and advertising on site, that the cost of operating the system would be
funded. Mr. Garcia added much of the project, especially the O &M cost had to be figured out
with OCTA staff. He noted the TOT numbers were coming in strong right now and staff
anticipated the figures to be higher by the time this project comes on line. Mayor Tait remarked
that this was an expensive project, about $300+ million for a three mile loop and his gut feeling
was that taking up a lane for the street car could only make the congestion worse. Council
Member Brandman asked if the Convention Center enterprise fund could be an alternative if
there was a shortfall, before the general fund was considered. Tom Morton, Convention Center,
remarked their goal was to break even and not be a burden on the general fund for the
operation of the enterprise fund. He noted any revenues derived were used to reinvest into the
Convention Center asset. Mayor Pro Tern Murray remarked that action had already been taken
by council to not approve proceeding into construction and development of a project that
required any subsidization from the general fund, a unanimous council decision.
Roll Call Vote: Ayes — 4: (Mayor Pro Tern Murray and Council Members: Brandman, Eastman
and Kring.) Noes — 1: Mayor Tait. Motion Carried.
City Council Minutes of February 25, 2014
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AGR- 7935.1 8. Approve the First Amendment to Agreement with Waronzof Associates, Inc., authorizing
an expanded analysis related to the Stadium site appraisal.
Mayor Pro Tern Murray remarked she had discussions with various community members who
consistently inquired why an appraisal was being done in 2019 dollars versus 2016 dollars. She
added unless there was a hard - pressing financial reason to do it in an out -year versus the
current year, she proposed that the final appraisal report return using 2016 dollars; staff
concurred. Mayor Pro Tern Murray then moved to approve Item No. 8, seconded by Council
Member Kring. Roll Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman,
Eastman, Kring and Murray.) Noes — 0. Motion Carried.
12. RESOLUTION NO. 2014 -035 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the application for grant funds for the Sustainable
8100 Communities Planning Grant and Incentives Program under the Safe Drinking Water,
Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006
(Proposition 84).
Authorize the Planning Director, or her designee, to execute all required grant
documents, and if awarded, to accept such grant on behalf of the City and amend the
budget accordingly.
Planning Director Sheri Vander Dussen reported in 2010, staff secured over $300,000 in
funding from a Sustainable Community Planning Grant and Incentives Program and used this
money to draft the Anaheim Canyon Specific Plan. The project had a total budget of about
$900,000 and a third of it was expended through this grant program. She noted the specific
plan was nearing completion and would be available for review this summer. Consequently,
staff was requesting a similar grant application be submitted for West Anaheim focusing on the
corridors in West Anaheim, specifically Beach Boulevard and those areas that intersected with
Beach. If successful, she noted, there could be up to $500,000 in funding available, requiring a
local match of about five percent, which was available in the Planning Department's budget.
The goal was to work with the community and come up with a new land use plan for the Beach
Boulevard area.
Mayor Tait remarked this was a great first step to something that neighborhood had been
requesting, a comprehensive plan on how to revitalize the Beach Boulevard area. He then
moved to approve RESOLUTION NO. 2014 -035 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the application for grant funds for the Sustainable
Communities Planning Grant and Incentives Program under the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition
84), seconded by Mayor Pro Tern Murray. Roll Call Vote: Ayes — 5: (Mayor Tait and Council
Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion Carried.
14. RESOLUTION NO. 2014 -037 A RESOLUTION OF THE CITY COUNCIL OF
D160 THE CITY OF ANAHEIM authorizing the acceptance of grant funds awarded to the City
of Anaheim by the California Emergency Management Agency, for the Fiscal Year 2013-
14 Anti Human Trafficking Task Force Grant, and amending the budget for fiscal year
2013 -14 accordingly.
Deputy Police Chief Julian Harvey reported this was the second year that Anaheim received this
grant that would allow the department to continue proactive efforts in combating human
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trafficking, specifically in the sex trade. He noted the program was victim centered and rescued
young girls who were trafficked across the state. The department focused on putting "pimps" in
jail, rescuing victims and getting longer sentences. Mayor Tait was appreciative of the hard
work the department has done in this arena with Mayor Pro Tern Murray concurring. She added
the unit operating in Anaheim set a model in place that other cities around the county and region
were following as to how to combat human trafficking of both young boys and girls. This was
done in collaboration with the Orange County District Attorney in a coordinated effort to
apprehend these criminals who targeted regions, often multi -state in reach.
Council Member Kring moved to approve RESOLUTION NO. 2014 -037, A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the acceptance of grant funds
awarded to the City of Anaheim by the California Emergency Management Agency, for the
Fiscal Year 2013 -14 Anti Human Trafficking Task Force Grant, and amending the budget for
fiscal year 2013 -14 accordingly, seconded by Mayor Pro Tern Murray. Roll Call Vote: Ayes — 5:
(Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) Noes — 0. Motion
Carried.
16. ORDINANCE NO. 6296 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM adding Section 18.38.025 to Chapter 18.38 of Title 18 of the Anaheim
Municipal Code relating to alcoholic beverage manufacturing in the City of Anaheim and
c2so making corresponding amendments to various sections of the Anaheim Municipal Code
(Zoning Code Amendment No. 2013 -00113 - allowing alcoholic beverage manufacturing,
including tasting rooms, within commercial and industrial zones).
Sheri Vander Dussen, Planning Director, explained this ordinance was offered in support of the
Brew City initiative with the goal of providing incentives for breweries and distilleries to locate in
Anaheim. During the last ten years, the craft beer industry had seen increased growth
nationwide and to date, Anaheim permitted more craft and microbreweries than any other city in
the county. To capitalize on this popularity and the opportunity to capture new businesses, she
remarked, Mayor Tait created a working group to evaluate how the city could make it easier for
craft beer producers to open businesses in Anaheim, a group made up of residents, brewers,
members of the media and city staff. They identified ways to reduce Anaheim's regulations as
well as those imposed by Orange County Environmental Health Agency resulting in this
proposed amendment to the zoning code that would allow breweries and other alcoholic
beverage manufacturing businesses to operate by right in commercial and industrial zones. Ms.
Vander Dussen noted these changes also included the addition of operational standards for
these uses and would encourage small brewing business in commercial zones while allowing
for larger breweries and businesses in the industrial zones. She indicated four breweries had
been approved in the last four years, all with tasting rooms and that three of the four were open
for business, Noble Aleworks, the Anaheim Brewery and Bottle Logic Brewing. They attracted
small groups of craft beer enthusiasts seeking an artisan style beer and also served as
community gathering places and since their opening had operated in a manner compatible with
surrounding uses and consequently were used as models when developing the proposed
regulations.
She reported the code changes would add a new land use category called alcoholic beverage
manufacturing and would include manufacturing facilities for the production of beer and wine as
well as distilled spirits which was anticipated to be the next wave of this craft distilling
movement. Tasting rooms would also be allowed as an accessory use that only served
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beverages produced at that location with visitors allowed to drink these beverages on site and
also purchase containers to drink elsewhere. She indicated that in the past breweries and
similar businesses required a conditional use permit and were approve with a set of required
conditions for operation. With this code amendment, the businesses would be allowed by right
in most of the city's commercial and industrial zoned and any conditions of approval that had
been typically imposed through the public hearing process were incorporated as code standards
to ensure the breweries continued to operate in a manner consistent with surrounding land
uses. The feedback received from stakeholders had been positive and staff recommended
council endorse the Planning Commission's recommendation to approve the zoning code
amendment.
Mayor Tait thanked staff for their thoughtful approach in cutting back on unnecessary
regulations and encouraging small business entrepreneurs to easily pursue their dream in
Anaheim. He added this industry had gained popularity in San Diego, Portland, Oregon and
Denver and this type of streamlining processes would attract similar success in Anaheim. He
then moved to introduce ORDINANCE NO. 6296, AN ORDINANCE OF THE CITY OF
ANAHEIM adding Section 18.38.025 to Chapter 18.38 of Title 18 of the Anaheim Municipal
Code relating to alcoholic beverage manufacturing in the City of Anaheim and making
corresponding amendments to various sections of the Anaheim Municipal Code (Zoning Code
Amendment No. 2013 -00113 - allowing alcoholic beverage manufacturing, including tasting
rooms, within commercial and industrial zones), seconded by Council Member Eastman. Roll
Call Vote: Ayes — 5: (Mayor Tait and Council Members: Brandman, Eastman, Kring and
Murray.) Noes -0. The ordinance was introduced.
17. ORDINANCE NO. 6297 (INTRODUCTION) AN ORDINANCE OF THE
CITY OF ANAHEIM adding Chapter 15.70 of Title 15 of the Anaheim Municipal Code
M142 relating the preservation of rental housing properties in the City of Anaheim.
RESOLUTION NO. 2014 -039 A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM adopting a schedule of civil fines for the issuance of civil
citations under and pursuant to Chapter 15.70 (Preservation of Rental Housing
Properties) of Title 15 of the Anaheim Municipal Code.
Sheri Vander Dussen, Planning Director remarked this program would address substandard
housing conditions in Anaheim that were detailed during workshops held this past year
describing substandard living conditions encountered in multi - family residential units in the city.
She indicated most complaints received targeted units in small buildings containing up to eight
units that were generally not professionally managed and had a variety of housing violations.
The goal of the program was to ensure all rental units complied with basic health and safety
codes for the residents which also had the benefit of a positive impact on neighborhoods. A
routine periodic survey of rental housing units was an important element of the program as it
would allow the city to identify code violations and work with owners to abate them. The current
enforcement model relied on complaints to bring violations to the city's attention; with Ms.
Vander Dussen pointing out that many times tenants were reluctant to file complaints because
of fear of eviction, immigration concerns or rising rents.
Staff had been meeting with various stakeholders such as the South Coast Region of the
California Apartment Association, the Apartment Association of Orange County, the Orange
County Chapter of the Building Industry and various associations of realtors who were all
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supportive of the city's efforts to address substandard housing. She remarked they also wanted
to insure that responsible landlords were not punished and that the city focused on abating
health and safety violations, not cosmetic issues. Education was also a recommended
component to encourage apartment owners to adopt accepted property management practices
and she pointed out, an appeals board would be established that included apartment owners
and community members in case owners or tenants were not satisfied with any of the city's
decisions. It was also recommended that owners who failed to properly maintain their units
should be required to pay fines and fees to offset the costs the city incurred to get compliances.
Based on these discussions, Ms. Vander Dussen indicated there was a new approach to
proactively identify substandard housing conditions, as follows:
1) Owners of rental units would be asked to complete a questionnaire re their management
practices.
2) Owners would be required to certify there was no significant health or safety violations
on the site based on a brief list of standards provided by the city.
If owners were using good management and confirmed there were no significant violations on
the property, staff would inspect the exterior of the buildings and if no major violations were
seen indicating an on -going lack of maintenance that affected the health and safety of the units,
the property would be in compliance and the owner would receive a certificate to this affect.
If the owner was not employing 90 percent of the accepted property management practices or
indicated there may be a violation on the property, the owner would be asked to complete a
thorough self - certification check list for each unit. 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,
the owner would be encouraged to improve property management practices and offered
resources such as classes and materials. If the exterior was not properly maintained or the city
documented a housing violation on the property in the past 12 months, the city would ask the
owner to allow staff to conduct spot checks of units in the building. If a spot check revealed
health and safety violations in one or more units and these violations appeared to be caused by
the landlord and not the tenant, the owner would be asked to allow staff to inspect all of the
units.
3) The program would apply to all properties containing two or more rental units, not single
family rentals and would begin with units on the city's western boundary and move to the
east.
4) Units inspected as part of another program such as Section 8 assistance would be
exempt.
5) Units would also be exempt for the first ten years (not five as noted in the staff report)
following final building inspection.
6) There would be no registration or application fee to participate in this program and
owners could avoid fees entirely by properly maintaining their buildings or promptly
abating any violations observed by the city.
She remarked the focus of the program was on a management questionnaire and declaration of
compliance check list and that draft versions of these documents were included for information
purposes only, requiring further revisions should council move forward with the program. Ms.
Vander Dussen also mentioned staff would continue working with representatives of various
professional organizations to refine those lists and procedures and to insure the program was
City Council Minutes of February 25, 2014
Page 12 of 15
focused on abating health and safety violations. She noted the ordinance and resolution
included additional for staff to quickly address violations, especially serious ones that affected
the health and safety of tenants, and included the ability to impose fines when violations were
not abated timely or when an owner was cited more than once for serious violations; criminal
prosecution was also a component of that process as well. She emphasized that fines could be
reduced when property owners participated in management training offered by local
professional organizations. The appeals board would also allow owners and potentially tenants
to request review of decisions made by staff in the administration and enforcement of this
program and could determine whether certain repairs were really necessary. That board would
include representatives designated by the various professional organizations staff had worked
with on this effort with council approving members nominated by these organizations and would
also include the city's hearing officer and representatives from the city's neighborhood councils.
The board could also review all decisions made by staff in the administration of the program
including the scope of required repairs to abate violations and decisions to inspect individual
units.
She indicated that initially the program included a registration fee imposed on all rental units
which was viewed by many stakeholders as a burden on owners who maintained their sites, so
it was eliminated from the program. In its place, the annual cost would be supported by the
general fund but offset somewhat by fines and re- inspection fees.
The costs involved to operate the program would include three additional code enforcement
officers to implement the program and the one -time costs for start -up such as purchasing radios
and vehicles which be absorbed in the Department's current budget. If council wished to move
ahead, a commitment could be made to fund the new positions as part of the budget for FY
14/15 and staff could begin to take necessary steps to start the program in August. She added
there were three experienced code enforcement officers who expressed an interest in being part
of this team, and their position would then be backfilled to allow for continued response to other
types of code enforcement complaints.
Mayor Pro Tem Murray, stated her introduction on substandard housing began when she and
Council Member Eastman accompanied code enforcement staff into a substandard garage
conversion in which eight people, six of them under the age of 12, lived in deplorable, unsafe
and unhealthy conditions and from that point on, she felt compelled that the city take action and
insure families had safe homes in which to live. She added there was nothing in this ordinance
that changed the city code, nothing that made the codes more restrictive and was solely about
enforcing those codes and holding property owners accountable who refused to keep their
properties up to basic health and safety standards. She emphasized it was all about putting
communities, families and the safety of the public first. Since staff shared that most of the
serious violations were among properties 20 years or older, she requested an amendment to
change the exemptions for properties to be 20 years or older in place of 10 years or older. This
would allow staff and its limited budget to focus on the older structures where the majority of
deferred maintenance existed. She also appreciated staff's creating standardized protocols,
checklists, etc. to have a standardized process so the rules were understood by all, but felt that
several documents focused on cosmetic issues and were not the serious violations the city was
looking to rectify, adding her goal was for the city to have the tools necessary to deal with
property owners who did not take their health and safety obligation serious and requested that
any check list developed to focus on protecting residents by insuring that serious health and
safety codes were upheld. She also requested the city manager work directly with the Planning
Department to continue working with industry and residential property stakeholders and
community on the development of forms to be used for the implementation of this program and
City Council Minutes of February 25, 2014
Page 13 of 15
that staff and industry officials work to reach agreement on the content of forms as quickly as
possible to insure full compliance so the program could launch on time this summer.
In response to earlier comments made by the public, Mayor Pro Tern Murray asked the
following questions:
1) Did anything in the ordinance limit occupancy or put in place punitive measures for
property owners who limited occupancy to which Ms. Vander Dussen responded there were no
occupancy limits proposed, adding that under state law, it was prohibited. Ms. Vander Dussen
added there were no punitive measures in this ordinance should the owner choose or not
choose to have occupancy limits.
2) Explain steps the city had taken to insure no residents were displaced as a result of this
ordinance especially while a landlord was preparing or fixing a property with Ms. Vander Dussen
replying that in the last 10 years, there was only one case where a family was required to leave
their homes because conditions were so unsafe, but that generally these types of violations
occurred infrequently. The goal was to abate health and safety violations but units could usually
be occupied while those repairs were being made. Ms. Vander Dussen added per state law,
owners were required to provide temporary relocation for tenants when the repairs required a
tenant to vacate the premises and in addition, staff was working with the homeless task force,
Community Development Department and Anaheim Community Foundation so there would be
emergency assistance in place in case of such a need. Ms. Murray pointed out that in that one
instance of which she had knowledge, the city had helped to provide funding to insure the family
of eight had a place to live while looking for a new home.
3) Ms. Murray then asked if staff gathered statistics as to how this type of program
benefitted other cities and how Anaheim would measure its success once this program was up
and running. She also asked that an annual council workshop /update be provided to the council
throughout the life of the program. Ms. Vander Dussen responded an annual update would be
provided and the department had collected statistical data on housing violations for the past ten
years or so. Additionally, she noted there had been other cities adopting programs similar to
Anaheim's, some more far reaching, including Sacramento and Los Angeles. Those cities
reported that the numbers of housing violations decreased over time and as they went through
the second cycle of inspections, it was found that fewer violations occurred because property
owners understood the program and that they would be cited for violations. She noted
Sacramento scaled back their program after several years of operation, needing less staff and
reducing fees, because they were just in a maintenance mode by that time. The City of Los
Angeles also quantified the impacts on the investment the property owners made in their units
over time and estimated because of their rental inspection program, about $2 billion had been
invested in the community by landlords who upgraded their rental properties. Ms. Vander
Dussen expected Anaheim's program to have similar positive results.
4) Mayor Pro Tern Murray requested clarification on how this program would be
implemented and managed citywide with Ms. Vander Dussen responding it was based on
objective criteria, which included the age of the structure which had been amended this evening
to include buildings 20 years or older and the physical location of the structure in the city. Staff
would begin on the west side of the city because historically there were more housing violations
in the older units on the west and central part of the city as those areas had been developed
first. That analysis, she pointed out, was identified in the Housing Element, with staff beginning
at the west boundary of the city and slowly moving towards the east. An appeals process for
City Council Minutes of February 25, 2014
Page 14 of 15
8105
property owners and residents would be established to address any concerns that arose
because of this program; in fact, the stakeholders came up with the suggestion that a jury of
peers for property owners should include representatives from different property management
and realty groups and to also include residents and the city's hearing officers. That board could
hear any claims, concerns or disputes over any aspect of the city's administration of the
program. She emphasized if an owner and /or tenant would not authorize an inspection, they
could appeal to the appeals board and even if the board agreed the inspection was required, the
city would have to go to court to get an inspection warrant. She added the program's goal was
to work collaboratively with the neighborhoods and those who rent property in the city to make
sure everyone was abiding by the same laws and codes that were already in place.
Mayor Pro Tern Murray thanked the many stakeholders and residents involved in this effort,
remarking this was fundamentally a quality of life issue for residents and that Anaheim placed a
high value on housing opportunities for its residents and through this program, quality rental
housing would continue to be a part in making Anaheim a desirable place to raise a family.
Mayor Pro Tern Murray moved to introduce the amended ORDINANCE NO. 6297 AN
ORDINANCE OF THE CITY OF ANAHEIM adding Chapter 15.70 of Title 15 of the Anaheim
Municipal Code relating the preservation of rental housing properties in the City of Anaheim and
to approve RESOLUTION NO.2014 -039. A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM adopting a schedule of civil fines for the issuance of civil citations under
and pursuant to Chapter 15.70 (Preservation of Rental Housing Properties) of Title 15 of the
Anaheim Municipal Code, seconded by Council Member Eastman.
Council Member Eastman voiced her support for this program, remarking it was one of the
reasons she was inspired to become more involved in the city. Council Member Kring and
Council Member Brandman offered their support as well. Mayor Tait remarked his support was
contingent on the city not requiring answers about requiring every adult in the household to be
on the lease or to ask questions that could be construed as trying to control occupancy. He felt
the city's interest should be solely in ensuring there were no health or safety violations.
Roll Call Vote; Ayes — 5: (Mayor Tit and council members: Brandman, Eastman, Kring and
Murray.) Noes — 0. Motion Passed. Ordinance introduced as amended.
18. Appoint two representatives to the Cultural and Heritage Commission to complete two
unscheduled vacancies, both terms expiring June 30, 2015.
Cultural and Heritage Commission
Appointment:
(unscheduled vacancy of Jimmie Romero)
(June 30, 2015)
Appointment: (June 30, 2015)
(unscheduled vacancy of Kelly Castillo)
At the request of Council Member Brandman and Council Member Eastman, the council
concurred to continue this item to the March 4, 2014 meeting.
City Council Minutes of February 25, 2014
Page 15 of 15
REPORT FROM CLOSED SESSION
Michael Houston, City Attorney, reported that City Council accepted the resignation of Marcie
Edwards, City Manager, effective March 3, 2014 (Vote: 5 -0) and appointed Paul Emery as
Interim City Manager effective March 4, 2014 (Vote: 5 -0).
COUNCIL COMMUNICATIONS
Council Member Eastman reported her meeting with the ACCOC, OCBC and several elected
officials regarding new legislation in Sacramento. She spoke of her attendance at the Cypress
College Americana Awards Gala and congratulated Iry Pickier and Anaheim Fire and Police
Department on their recognition. She highlighted the Read Across America Day and the
Anaheim Unified School District after - school music program and expressed her appreciation for
Marcie Edwards and her service to this community.
Council Member Kring reported on the success of the Graffiti Clean -Up event, thanked Senator
Bob Huff, Senator Mimi Walters and all the participants for making a real difference in
communities.
Mayor Pro Tern Murray congratulated Iry Pickier and Dr. June Glen on their recognition at the
Cypress College Americana Awards Gala and announced the Anaheim Police Community
Foundation fundraiser at Ruby's Diner coming up and Anaheim Public Library Foundation's 19
Annual Mystery Author Luncheon on April 6th. She thanked Senator Bob Huff and Senator
Mimi Walters and all those involved in the success of the Graffiti Neighborhood Clean -up. She
also thanked Marcie Edwards for her service to Anaheim and thanked all those who came out in
support of the quality rental housing program. Lastly she requested a discussion item to add an
opportunity for a City Manager's Report on the agenda.
Council Member Brandman congratulated Iry Pickier and Dr. June Glen on their recognition at
the Cypress College Americana Awards Gala and thanked Marcie Edwards for her service to
Anaheim.
Mayor Tait reported his attendance at the U.S. Conference of Mayors, his meeting with Waste
Not OC, and expressed his appreciation for Marcie Edwards and for her service to Anaheim,
and congratulated Paul Emery on his interim appointment.
ADJOURNMENT: AT 8:02 P.M., with no other business to conduct, Mayor Tait adjourned the
February 25, 2014 city council meeting.
R pe fully submitted,
Linda N. Andal, CMC
City Clerk