Loading...
02/23/2016 ANAHEIM CITY COUNCIL REGULAR MEETING OF FEBRUARY 23, 2016 The regular meeting of February 23, 2016 was called to order at 3:04 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda and related materials were duly posted on February 19, 2016. PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring, Kris Murray and James Vanderbilt. STAFF PRESENT: City Manager Paul Emery, City Attorney Michael Houston and City Clerk Linda Andal. WORKSHOP—SHORT TERM RENTALS (STRs): Mayor Tait announced staff would present the workshop followed by the public comment period which would be limited to 1-1/2 minutes, per speaker, in an effort to allow everyone to speak and for time for the regular council agenda. David Belmer, Planning Director, stated his presentation would update Council on efforts to gather input from the public and identify potential solutions on the issue of Short Term Rentals (STR) in the city of Anaheim and for staff to present recommendations and an action plan for going forward. He was joined by Jonathan Borrego, Planning Services Manager, and Sandra Sagert, Preservation Manager, both of whom participated in the efforts being presented to Council. BACKGROUND: Council adopted the current STR ordinance in May 2014, which created a legal basis for STRs in the city and established a permitting process and operational requirements. That ordinance required operators to obtain an STR permit from the city and remit transient occupancy tax (TOT) on a monthly basis and contained regulatory requirements regarding how STRs were to be operated in the city. Those regulations included occupancy limits, parking standards, and operational issues, most of which had been discussed at length at prior council meetings. He noted when the ordinance was adopted, staff estimated there were about 200 short term rentals already operating in the city, emphasizing the fact the city's ordinance had not created STRs, the ordinance was the city's deliberate effort to recognize their presence and provide reasonable regulations to insure they were operating responsibly and in a manner that created as little impact as possible in the residential neighborhoods. He added that at one point, it was estimated the city had about 400 STRs that were either licensed or had applications pending and that number was now 380. Community concerns began to surface regarding the operation of STRs about eight months ago, with some of the salient points identified by the community including: noise impacts, parking, lack of enforcement mechanisms, occupancy limits, the numbers of people occupying STRs, and the fact those occupants were transitory in nature and residents were feeling they were losing contact with their neighbors, and felt unsafe in a community of strangers coming and going. Mr. Belmer added that some STR homes had been enlarged beyond what might be considered compatible for the neighborhood in large measure to accommodate occupancies because occupancy limits were set based on the number of bedrooms. Those concerns were heard by the City Council who took action by adopting a moratorium in September of 2015, extended in October until May 2016 and as those moratoriums were considered and adopted, the Council was hearing both from STR operators and residents resulting in Council's direction to staff to engage in outreach with both groups and start to look at solutions to this problem. City Council Minutes of February 23, 2016 Page 2 of 33 Regarding code enforcement, the City Council appropriated an additional $200,000 to augment code efforts to address calls which improved the situation. In addition, Mr. Belmer noted there was also a dedicated hotline making it easier for those who were having impacts from STRs to express their concerns while code enforcement staff was proactively patrolling neighborhoods to address any issues. COMMUNITY OUTREACH: Staff hosted a series of workshops from October through December, created an online survey to gauge thoughts and ideas from the community on issues and potential solutions, as well as a series of new vehicles, including a website. With regard to the survey, Mr. Belmer reported it was crafted based on what was initially learned from community workshops and from the 689 responses that were available online, which became a helpful tool for staff and gave residents and operators an opportunity to share viewpoints. He indicated there was common ground in some areas, middle ground where there was a potential for common ground, and some areas where there were clearly divergent views. BEST PRACTICES: In addition to outreach, Mr. Belmer remarked Anaheim was not the only city dealing with this issue; it existed nationally as well as throughout the state and was inherent in Orange County. Staff reviewed ordinances from numerous cities, including Huntington Beach, Laguna Beach, Palm Springs, and Santa Barbara. Staff also spoke with many cities to determine their challenges, how were they handling those challenges, and were they amending their ordinances. He pointed out Anaheim's efforts in terms of best practices was to get a sense for creative ideas and potential solutions knowing that ultimately Anaheim's solution would probably need to be its own. ADVISORY COMMITTEE: He indicated the advisory committee that resulted from the workshops in December, included STR owners and residents electing their own representatives, which included six residents and six STR owners/operators. He noted three of the owner/operators also happened to be residents in Anaheim which offered a unique perspective. The committee met three times between January and February and because there was not an expectation that the members of the committee would reach consensus on all the issues to be discussed, staff recognized they were going to need to acknowledge the diverse views of those that represented the committee and wanted, as well, to talk about ideas and gain a better perspective of each other's viewpoint to see if a solution was possible. A matrix was used to help identify and track what the issues were, how the existing ordinance addressed those issues, and best practices used from other cities, as well as suggestions from both the resident members and the STR owner/operator members of the committee. Included on the matrix was staff's recommendation as to how that particular issue should be handled. Mr. Belmer indicated Council was given a copy of that matrix, and it had been available on the website for several days; staff also had copies available for the public. Sixteen issues in total were listed on the matrix ranging from how violations were handled, issues of safety, enlarging of STR homes, the potential of creating new permits for the home-sharing model, the use of garages for game rooms, and the banning of short term rentals. THESIS STATEMENTS: The residents on the advisory committee believed: STRs were a business, therefore they did not belong in residential neighborhoods; they were not compatible and in their view the time from the adoption of the ordinance to the current date proved that; they wanted a permanent ban on STRs which meant no permitting of new STRs and amortizing out or eliminating the ones the city currently had. After discussing the potential of a ban, they participated in how the ordinance might be amended, knowing if there was a ban and City Council Minutes of February 23, 2016 Page 3 of 33 amortization, that Anaheim would need a new ordinance to guide and regulate those STRs while they existed in the city of Anaheim. Short term rental operators had a different viewpoint, i.e.; STRs were not a business, it was a residential occupancy; STRs could be compatible in residential neighborhoods especially if strict enforcement was practiced with an amended ordinance; enforcement action should be taken against those not being operated responsibly; and STRs served an important role in the city, through promotion of tourism industry and providing a solution for this form of travel and tourism. ACTION PLAN: The challenge, Mr. Belmer stated, was with the divergent views with residents seeking a ban and a phase out of short term rentals and operators believing they had value and should remain. Staff looked at reaching middle ground with an eventual compromise solution that would allow both groups to achieve their goals. That middle ground developed into a four- part plan that included the adoption of an amended STR ordinance which would ban short term rentals in single family/multi-family neighborhoods going forward and adopt new operational and enforcement standards to be assessed for 12 months. Existing STRs would not be phased out, and in staff's recommendation they would continue to remain but no new STRs in a single family and multi-family neighborhood would be allowed going forward until the amended ordinance could be tested. The third item was to create a new type of permit where the resident resided on the property and rented a portion of the home for less than 30 days, still requiring a permit but the primary resident remained in the home. The fourth recommendation was to evaluate Mixed Use and Commercial zones where STRs could exist and create no impacts and STR owners could serve a need. To amend the STR ordinance that would ban STRs in single family/multi-family neighborhoods and implement new operational changes, Mr. Belmer stated that in using the matrix, there were 12 items that were impactful in the matrix and would affect STR operators: 1) increase minimum age from 18 to 21, providing better contact information so residents could have easier access to owner/operators; new parking restrictions and clarifying existing ones; allow the use of a garage for a game room with restrictions; create "quiet" time from 10 P.M. to 9:00 A.M. with rules that would define "quiet" time; limit expansions of STRs to prevent maximization, lower occupancy limits, quicker and stiffer penalties for enforcement of violators with all violations identified, with the ability to suspend or revoke the permit, hold occupants accountable for violations; enforcement against hosting sites that promote or advertise illegal or non-permitted STRs, addressing issue of safety by requiring operators to screen their tenants from public data bases like Megan's law, and to increase fees to make sure the city is able to recover costs. Regarding ordinance assessment, Mr. Belmer remarked that staff would develop objective standards and over a 12 month period would carefully monitor and access the revised ordinance to determine if it was effective, looking at code enforcement calls for service, police calls for service, as well as some qualitative issues. Staff would talk with residents and operators after 12 months to determine if the ordinance had been effective in their view, and what worked and did not work. At that point, staff would report back to Council understanding the ban would still be in place and would remain in place until or unless Council concluded that the ordinance has demonstrated it was effective. At such time, Council could consider the potential of allowing new STRs. Regarding the new permit for home sharing, Mr. Belmer indicated they should still require a permit because there a potential for impact to neighbors still existed, but there should be a separate ordinance that may include some of the operational City Council Minutes of February 23, 2016 Page 4 of 33 standards in the current or proposed amended ordinance. The resident members on the advisory committee did not oppose that recommendation. Regarding the potential of allowing STRs in non-residential zones, Mr. Belmer pointed out there were a number of mixed use zones in the downtown area where staff thought STRs could work and could fit, although this would be a secondary effort; the first and primary focus was to amend the current ordinance. FOR THE FUTURE: Mr. Belmer pointed out the STR moratorium expired on May 3, 2016 and staff would work with the city attorney's office to have that amended ordinance presented to Council before the expiration date while the amended ordinance was being finalized. Staff would concurrently work on the new ordinance for the owner-occupied STR model by also evaluating mixed use zones in the city where STRs could potentially be permitted with an anticipated August/September date for Council's consideration. Staff believed the 4-Part Plan was a middle ground giving residents the assurance of knowing there would be no new STRs in their neighborhoods until or unless the amended ordinance was determined to be effective and would also know staff had the ability to take swift and severe enforcement action for violators. For the operators, those with existing permits or had applications pending before the moratorium could continue to operate and to prove their thesis statement that they were compatible with residential neighborhoods. In addition to the ideas included in the matrix, Mr. Belmer indicated there were certain STRs where their physical location was not well suited within the neighborhoods, and staff could explore the opportunity for the STR to be replaced elsewhere in town, an idea that was not on the matrix but worth pursuing to address those STRs that had generated an inordinate amount of complaints. Mayor Tait invited public to comment on the workshop, reminding the public that the period for comments would be limited to 1-1/2 minutes per speaker in an effort to allow everyone to speak and for time for the regular council agenda. Bobby Donelson, Sherwood Village, stated the city neglected the "harm based business code" which was not considered in the short term rental ordinance because there was heavy involvement with the Anaheim Rental Alliance. He added there should be a course of action included in which residents could take STR operators to court and reported that Judge Banks who heard the Sherwood Village HOA litigation, stated short term rentals were a business and their clientele were lodgers, no different from a hotel business and should not be allowed in a residential area. Gail Eastman remarked she was a neighborhood resident and a permitted STR owner with the home-sharing model. Having lived next door to an STR for the past three years, she remarked that when it was owner occupied there were far more problems with parties and extra cars than when it was turned into a short-term rental. She believed there were reasonable changes to be made to the existing ordinance which would ensure STRs could peacefully co-exist in neighborhoods and submitted the remainder of her comments for the record. Daniel Robbins, resident, addressed the STR operators' thesis statements, remarking that each of these statements could be rebutted and proved wrong, because STRs were a business and were operating illegally in residential zones and served no real need in the city. Mike Robbins addressed the economic impacts the STRs had on the resort industry and the quality of life issues in neighborhoods that must be corrected as soon as possible. City Council Minutes of February 23, 2016 Page 5 of 33 Jeanine Robbins remarked that police department and code enforcement staff were overwhelmed with STR complaints and it had now become the job of residents to enforce the rules. She wanted the residents protected and the neighborhood quality of life restored and wondered why the city was willing to negotiate with business owners who threatened to operate illegally if the STRs were banned. Tal Price appreciated the effort staff put into bringing their recommendations forward but felt the plan was too restrictive and submitted his suggestions on a few amendments he would like to see regarding the matrix. He added that the owners/operators wanted to work together in a spirit of compromise on the plan. Kim Constantine stated STRs could be operated effectively and efficiently as long as all laws and local ordinances were followed. He added there were many conscientious property managers that were in compliance and providing a quality and respectful lodging experience. Alan Bynder remarked the Anaheim Rental Alliance had looked at the quiet time restriction and believed it was too restrictive. He stated the normal noise ordinance allowed contractors, gardeners and the like to begin at 7:00 A.M. and in an effort to compromise, proposed that 8:00 A.M. be used instead of 9:00 A.M. because they felt the 10:00 A.M. time period would create violations that would be difficult to manage. Cecile Eveland stated she lived next door to an STR and based on the noise alone, it was not working. She asked Council to support its long term residents, protect the communities and have the courage to ban STRs from residential areas with a reasonable time for phasing them out. Keith Olesen, resident, remarked the arguments made and the fact that the owners and residents could not even agree on "quiet time" pointed out the fact that STRs were simply an incompatible use in residential areas. He added downtown Anaheim and west Anaheim in particular had to deal with the results of bad planning decisions from the past pointing out that allowing STRs in residential areas was another bad planning decision. STRs should be dealt with as a zoning and land use, an incompatible use and not allowed in residential zones. Fred Cornejo, resident, urged Council to ban STRs pointing out that the problems neighborhoods had were with the existing STRs. He concurred with banning all future STRs to stop the problem from increasing however allowing existing STRs to continue to operate would not solve the issues. He urged a complete ban on all short term rentals. Chuck Robinson, resident, remarked in late 2014 he discovered the city permitted a nine bedroom, seven bathroom STR constructed in a cul-de-sac of three bedroom homes. As a result, he began holding community meetings on the issue of STRs in his back yard, with up to 60 people attending and with city staff represented at each of those meetings. At that point he was asked to sit on a task force with residents and owner/operators to discuss STRs and their impacts remarking that both sides were well represented on that committee and staff's efforts were much appreciated. Phillip Schwartze, representing the owner of the mid-rise Kraemer Building, explained that last year the Kraemer Building went through a conditional use permit process to establish a STR program that would slowly replace the apartments in that mixed use building. As apartments became available, each unit was modernized, refurnished and then converted to a STR, a successful program that would be a trouble-free operation for the city. Presently, he stated, City Council Minutes of February 23, 2016 Page 6 of 33 there was a mix of apartment dwellers, STR visitors and ground floor businesses occupying the building and despite the approved CUP, they were unable to complete the business plan due to the STR moratorium and were forced to re-rent as apartments. He requested that the multi- story, mixed use, commercial zoned operation be exempted from the present moratorium. Austin Lynch, Hotel Workers Union, remarked they supported a ban on rentals of whole units, but supported home-sharing where the owner was a permanent resident in the home and rented out a part of their home. They also supported an advertising ban on hosting sites and to give residents the right to litigation. He pointed out that some of the principles in the matrix were bad ideas, such as allowing a one year window for STRs to expand up to 40 percent, an idea that would have a negative impact on workers and schools, while contributing to the housing shortage. Martin Lopez, Sherwood Village, remarked the cluster of STRs had seriously disrupted the integrity, peace and quietness of neighborhoods and many cities had now banned their operation. He added there were many workers who needed to live in Anaheim but could not because of the shrinking rental market and the lack of affordable housing. He urged Council to listen to its residents who were saying STRs were not compatible in residential areas and ban them. Joan Miller, Sherwood Village, remarked she had six short term rentals directly impacting her, due to a trail to the pool that passed by her home generating constant foot traffic. She added by the time she could complain, the renters were gone because they checked in on Friday and departed on Sunday. She no longer felt safe because she was no longer surrounded by neighbors she once knew. Larry Minery remarked that buying a townhouse had always been a more affordable housing prospect for first time buyers, but now because of the proliferation of STRs in Sherwood Village, this was no longer an option. Investors purchased the townhouses as soon as they went on the market, resulting in the loss of potential new neighbors, the feeling of a community, and a loss of affordable housing units in the city. He pointed out most STR owners did not live in the community, did not participate in activities or volunteer for committees and offered none of the many helpful things neighbors did for one another. Steve Acteman, Della Ord neighborhood, remarked the residents of Anaheim had been going through this experiment of managing STRs for two years and it was time to restore the neighborhoods back to a community. He urged the permanent ban of STRs and phasing out the existing neighborhood rentals. Julie Brunette stated she lived near five STRs and initially wanted to ban them from residential neighborhoods, however, after working with the owners, she no longer had complaints, other than noise. She recommended pool hours in the summer from 10:00 A.M. to 9:00 P.M. and in the winter 10:00 A.M. to 7:00 P.M. Robert Brunette indicated he was a co-owner with his son of a condominium in Sherwood Village, a unit now located between two short term rentals that were rented every weekend. The noise and the smoke from the adjacent patios affected the quality of life and particularly impactful in a condominium complex versus a single family home. He recommended the pool use hours begin at 10:00 A.M. to 9:00 P.M. in the summer and 10:00 A.M. to 7:00 P.M. in the winter (from November 1st to March 1st), mirroring the actual hours used in many hotels. He City Council Minutes of February 23, 2016 Page 7 of 33 added this would make a real difference in the noise impacts, especially when living next to five STRs, as he and his wife did. He added the 8:00 A.M. time recommended by a previous speaker would not work for most residents. Maritza Gonzalez spoke of the direct impacts from an STR stating if she had known there would be one in her neighborhood, she would not have purchased it. To have businesses in neighborhoods, making money at the expense of peace and quiet for families, she felt was wrong. Mirvette Judeh explained she had been a realtor since 2002 and believed STRs did affect property values, if not in the short term, in the long term because they compromised the integrity of the neighborhoods in which they were located. She urged a complete ban on the STRs, remarking other cities were doing the same; i.e., Aliso Viejo had a ban in place, Santa Monica had removed 1,400 out of 1,700 STRs on the market, Laguna Beach had a moratorium and West Hollywood a ban. Len Beckman, resident, remarked the balance between residents and STR owners was a challenge, with some operations successful and many not. He suggested the revenues in transient occupancy tax would be put to better use by compensating the neighbors directly. Crisna Raymond remarked that per the city's Municipal Code, home occupation regulations stated members of a resident family engaging in home occupation could not increase pedestrian traffic by more than eight people a day, yet STRs had a maximum of five persons per bedroom with an average home having three bedrooms, or 15 people to a house. He added there was an area south of the Convention Center that was predominantly STRs, asking why the city was protecting property values over its residents. Charlotte Seidnematollah, Rosebay Street, stated she had an STR behind her home, with 10 bedrooms, sleeping 32 per code, and rented constantly by large groups coming in every three to five days. With bright flood lights illuminating this backyard resort, the light intruded through her windows and had taken her quality of life away. She asked Council to ban these businesses and give the residents back their lives. Arturo Ferreras remarked he moved to Pepperwood Village in 2005 when his family emigrated to the U.S. and appreciated the quiet neighborhood environment. Now with neighboring Kaleidoscope Condominiums having more than 50 percent STRs and Pepperwood Homeowners Association being sued by the STR owners to change policies that were in place to protect the community, the atmosphere was no longer quiet. He pointed out Sherwood Village was also involved in litigation in an attempt to allow STRs in that complex and urged Council to ban the STRs and put an end to the problems associated with their operation. William Fitzgerald claimed Disney Corporation sought to end STRs in Anaheim because of the economic impacts to the hotel industry and that city council members would follow Disney's lead. Dr. DeVera Heard, Orange County Black Heritage Council, thanked the City Council and the citizens of Anaheim for welcoming the African American community to the Black History Parade and Cultural Affaire held on February 2nd in Downtown Anaheim. With over 7,500 in attendance, an event recognizing and celebrating diversity locally and regionally was important and the city's participation and support was appreciated. City Council Minutes of February 23, 2016 Page 8 of 33 David Vill, Della Lane, believed the city had made a bad judgment call in permitting STRs with a lot of neighborhoods that were once peaceful and quiet in turmoil and parents concerned about the safety of their children. He emphasized neighborhoods were basic to the American people, asking Council to revisit their decision and do the right thing for the residents. Doug Zelmer, Pepperwood Village, recommended Council incorporate the recommended ideas for managing STR, and if the problems could not be controlled, then do away with them. Sam remarked he was an STR owner, a resident, a business owner with several employees and had been operating his STR to the best of his ability. He claimed the Robbins family, who lived next door, operated a baking business out of their home, yet were opposed to STRs. An unidentified speaker remarked there were always exceptions to the rules, such as owners converting to 10 bedrooms and a pool, and those environments that really disrupted neighborhoods should be banned but others that were generating some income and were responsible and respectful owners should be permitted. Carol Rushman, realtor, remarked that STRs did not fit within the guidelines of home-based businesses because they did not preserve the residential integrity of a neighborhood. She read portions of the code and emphasized these rentals were in R-1 residential neighborhoods and should not be allowed and supported a complete ban and allowing some reasonable time to phase out the rentals. Lynn Cudd, Ames Avenue, stated there were three STRs on her street, a community she enjoyed living in for many years and was now seeing it turned into a resort area. She objected to the changing environment and supported a ban that would bring back those residential neighborhoods. Victoria Michaels, resident, stated the City Council again had an opportunity to listen to the residents of Anaheim and protect them from the effects of businesses that were allowed to operate in residential areas. She opposed the goals of the Anaheim Rental Alliance that requested donations to support STR owners and operators in their quest to have vacation rentals permitted in Anaheim. Laura Robbins clarified that her family's business operated out of the city of Costa Mesa adding that several false code complaints had been issued against her family which were determined invalid. She added that her neighbor, Sam, threatened residents who expressed concern about noise from his vacation rental property. Luisa Lam, Sherwood Village, remarked that the speaker that discussed the Kraemer Building and the conversion of apartments to STRs was in a commercially zoned area and should not be a problem. The problems only arose when rules were not followed and vacation rentals were permitted to operate in residential neighborhoods, and why so many neighbors were speaking out against them. Pierre remarked he was a small business owner, restoring classic cars and because there was welding, grinding and other noise impacts related to his business, he rented a shop in another city where the zoning allowed businesses of this type. He added in residential areas, the community wanted to live in peace and quiet and was the reason why zoning regulations were created; he wanted a ban on STRs. City Council Minutes of February 23,2016 Page 9 of 33 An unidentified speaker remarked if Council was going to prohibit STRs in the future, the ban had to be for the existing short term rentals as well, because those were the businesses causing the problems. Mathew, Pepperwood Village, remarked that twice tourists accidentally walked into his house not realizing it was the wrong address and for him, the issue was safety with his mother home alone most days. He believed residents' concerns should take priority over vacation renters. With no other comments offered, Mayor Tait closed this portion of the workshop. Mayor Tait offered the following comments regarding short term rentals. While he appreciated the concept of a shared economy, short term rentals had grown beyond that and had become more akin to a business. He believed they changed the nature of a neighborhood and that even a well operated rental was still a business that impacted residents. He indicated he would ask staff to create a competing ordinance for Council's consideration that allowed home sharing (where a homeowner stayed in the home while renting out a room or a homeowner going on vacation could rent their home) but banned all future and current short term rentals with an amortization schedule to ramp down the existing businesses, possibly two to three years. City Attorney Houston understood the request and asked Mayor Tait to formalize that request during council communications. At 4:41 P.M. the workshop was adjourned. Mayor Tait reconvened the meeting at 5:04 P.M. INVOCATION: Pastor Robin Kim, West Anaheim United Methodist Church FLAG SALUTE: Council Member Jordan Brandman PRESENTATIONS: Recognizing Canyon High School Football Team as CIF Southern Section Champions Coach Mike Ogas introduced the athletic team and coordinators, acknowledging the great year the team had, beating the league champions from every league on the way to the CIF finals. He was proud of the team's accomplishments and prouder of the fact that out of a 64 man roster, 33 percent of the team made the Scholar Athlete List carrying a 3.5 GPA or better. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming February 28, 2016 - March 5, 2016, as Peace Corps Week Proclaiming March 2016, as American Red Cross Month Proclaiming March 2016, as Music in Our Schools Month Dr. Linda Wagner thanked Council for their support of music in the Anaheim School District city schools announcing that within two years every child in the school district would have music at least once a week within the school day. Proclaiming March 2016, as National Athletic Training Month City Council Minutes of February 23, 2016 Page 10 of 33 Dale Miller, certified athletic trainer with Anaheim Union High School District, thanked Council for recognizing athletic training as a valued profession. He reported on current legislation. AB 2007 and AB 1719, that was in the works to protect youth sports. Proclaiming March 2016, as Professional Social Worker Month Proclaiming March 2016, as Women's History Month ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS (all agenda items, except public hearing): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk, Linda Andal. Cecil Jordan Corkern, Outreach Homeless Ministries, read a passage from the bible. Bobby Donelson, Sherwood Village, requested the City Council support Mayor Tait's recommendation for a ban on short term rentals (STR) and that the amortization period be reduced to 18 months rather than three years. He was honored to have participated on the STR task force and thanked residents of Sherwood Village for attending the workshop and voicing their views. He recommended that the quiet time discussed, even during the amortization period, should be from 10:00 P.M. to 10:00 A.M. in the morning. Peter Page, Sherwood Village, supported the termination of STRs, remarking he had seen his neighborhood change with the proliferation of STRs adding that his homeowner's association was taking steps to end those businesses and hoped the city would do the same. Clint Breads remarked that his neighborhood recently became inundated with cars parking overnight and during the day because the street next to his had been given permit parking. He wondered why the city did not go to the source of the problem to deal with parking problems rather than push it onto adjacent streets with permit parking and why it took six to nine months to apply for and be allowed to receive permits for streets. He asked that this process be expedited in order to process permit parking for Sunkist that was now averaging 20 to 30 cars a night on the main street into his neighborhood. He reiterated that the permit parking program was perpetuating the problem and new developments that provided 1 1/2 cars per parking spaces per unit, only added to the problem. Mayor Tait referred the speaker to Public Works Director Natalie Meeks for assistance. Steve Acterman, resident of Della Ord neighborhood, requested an immediate ban on STRs for new and existing properties and to phase out those that were currently operating. He rebutted the "benefits" of STRs, stating TOT revenues would still be coming to Anaheim because tourists would stay at hotels and sales tax and restaurant revenues would increase accordingly as well; and, the high cost of administering STRs with enhanced code enforcement efforts and the significant surge in police calls would end. He urged Council to end this business immediately. Jeanine Robbins, task force member, talked about the divergent views of the members and the challenges of negotiating with owners who failed to recognize how their business operations impacted neighborhoods. She emphasized that neighborhoods were never meant to accommodate business operations and that STRs had been deemed a business operation in a court of law and the conflict between residents and owner/operators had to end. She wanted a ban on future and current short term rentals with a phase-out program and to have the neighborhoods returned to the way they should be. City Council Minutes of February 23, 2016 Page 11 of 33 Mike Robbins remarked his son had presented an economic breakdown of STRs to the city and he wanted to enlarge upon the numbers. With STRs generating $2 million annually in TOT revenues, he stressed it was actually a loss in revenues when balanced against the increased costs for code enforcement and increased police calls for services. In addition, 1,800 legitimate jobs were lost in the resort industry through STR operations. He wanted a complete ban on STRs and to get his quality of life back. Laura Robbins stated that 20 percent of the homes in her neighborhood were short term rentals and her community was slowly eroding away. She asked the city to put a stop to these businesses and return neighborhoods to families who wanted to enrich the community. Danny Robbins stated the STRs debate had implications far beyond the concept of vacation rentals; they were a threat to neighborhoods and the families that lived there and it was up to the City Council to protect Anaheim's citizens against this threat. Ruth Moore, resident, remarked the owners of STRs were allowing negative impacts to happen in neighborhoods, i.e., noise, marijuana use, parking problems, and safety, asking Council to support Mayor Tait's position and ban their use. An unidentified STR owner remarked she and her husband came to city hall to find out exactly what was needed in order to have a short term rental, and was told at that time, there were no regulations in place. Since then, she had followed the city's regulations every step of the way during this process and hoped Council would take that into consideration as well as the fact this was one family operating the vacation rental, not a corporation. Darwin Falk stated he lived next to the Convention Center and Disneyland and had been a resident for 23 years. He asked Council to enforce the city's ordinance that prohibited home- based businesses and specifically to ban STRs from neighborhoods. in his area there were 10 homes owned by an individual/corporation, another individual owned four homes and there was also a "McMansion" there owned by Chinese investors. Using Google Map to pull up his neighborhood, he saw that the house across the street from him was now listed as an Orange County vacation rental. He emphasized that these were business operations with corporate entities and felt that enough studying had taken place and urged a complete ban. Tim Troung stated he managed apartments, single homes and also STRs and understood both sides of the issue. From his perspective, apartment and single family home renters were more apt to make noise than short term rental visitors, as those families were there to take advantage of the tourism attractions and only used the homes to sleep. He urged residents and operators to get to know each other and work out any issues. An unidentified STR owner remarked vacation rentals provided a different experience for families that enjoyed spending time together. She and her husband had saved for ten years to purchase a home in Anaheim for use as a short term rental and were careful to rent to families going to Disneyland and that rules put in place were followed. She hoped STRs and residents would find a way to live together. Cynthia Ward requested Item No. 5. be pulled from the consent calendar to provide more information on Disney's 1996 development agreement remarking the city had been rubberstamping this for 19 years and it was time to start looking at the entire agreement to make sure they were in compliance. She indicated the finance agreement had not been honored, the parking benefits in the Convention Center were being audited, and Disney's water reduction City Council Minutes of February 23, 2016 Page 12 of 33 condition contained 13 separate items of compliance and only four were listed. She asked for assurance that Disney was not being given a free pass on this matter. Regarding STRs, she stated the general plan and zoning laws were in place to protect not only the Resort district but neighborhoods from incompatible developments and there was no obligation for the city to give property owners commercial property income for a residential zone property. William Fitzgerald addressed the circumstances surrounding the death of Gustavo Najera. Giovanni Valencia, resident and Disney Resort worker, pointed out the Resort hotels offered accommodations for their special needs guests and families did not need to stay in STRs for that purpose. She emphasized hotels depended on visitors renting rooms and that there was a direct correlation between vacant hotel rooms and loss of wages for the workforce. She asked Council to consider the long term consequences from this business to the city and its citizens. June Jackson submitted a petition related to the cell tower on the property of First Christian Church on South Street and expressed her concern of radiation, as well as the construction of the tower. Todd Raymond, resident, supported the efforts to ban STRs, stating if the practice continued, he would have to move out. Ada Briceno announced OCCORD stood for strong communities and good jobs and that STRs did not provide for either of those objectives and OCCORD would stand strong with the community to ensure STRs were banned. Translation: Language, Spanish. Ana Lepe, Grand California employee, explained she was 18th on the seniority list at the hotel and the previous day, only 15 employees were called to work due to STRs impacting hotel stays. She pointed out her rent was $1,325 a month, and although she shared the cost with a roommate, lost workdays made it difficult to meet that monthly payment. She talked about the challenge of finding affordable rent, how neighborhoods and families were impacted, and the expense and hardship for Anaheim's workforce to have to move out of the city and commute to work and asked Council to enact a ban. Joese Hernandez, OCCORD, stated that all the issues identified by earlier speakers; i.e. residents and owners in serious discord, lack of affordable housing, the impact of the housing crisis on the city, and neighborhoods no longer a community of families, was a disastrous consequence of the short term rental industry hoping Council would take immediate action to solve the problems. Arturo Ferreras, resident, stated STRs were taking over his community, destroying neighborhoods and forcing the working poor to look for affordable homes elsewhere and further impacting the quality of their lives. He urged Council to give back the neighborhoods to residents and to ban short term rentals. Ron Bengochea, resident, offered a different perspective. He lived in a neighborhood with 10+ short term rentals, remarking they had greatly improved his community. The visitors were families with children and his experience with the renters had been good. He believed by enforcing the city's current policy, any problems could be solved, adding that he had more concern with the development pertaining to Agenda Item No. 21, with big homes that infringed on existing residences. City Council Minutes of February 23, 2016 Page 13 of 33 Translation: Language, Spanish. Kristi Paniagua stated she had worked for Disney hotels for 27 years and experienced loss of work hours due to STRs taking business away from the hotels. She requested City Council prohibit short term rentals. Isabel Barrera, resident, spoke in opposition to STRs, remarking they belonged in the Resort area and neighborhoods should be kept for families raising children. She recognized Council had the ability to solve these problems and the city needed that solution now. Translation: Language, Spanish. Maria Munoz, resident and Convention Center employee, explained she felt the impact of short STRs by the increasing high prices in homes for rent, pointing out that she had limited options for places to live and urged Council to take action and ban the STRs. Clara Turner, OCCORD, spoke in favor of a ban on STRs, remarking every single house that investors purchased meant there was one less house on the market for people who worked in Anaheim and wanted to raise their families and become part of the community. She addressed the tradeoff of transient occupancy revenues coming into the city and the expense of dealing with STRs through code enforcement and police calls for services. Added to that, a severe housing shortage in Anaheim and countless residents voicing their distress over businesses operating in residential neighborhoods. She emphasized residents and their concerns about safety and quality of live should be more important to the city than investors concerned about their profit. Crisna Raymond, Elm Place, remarked it took a long time for her and her husband to save enough to purchase a home in Anaheim in a residential zone where business was not allowed. She was surprised to find that STRs were permitted in residential zones and impacted the community security and wellbeing. She was not opposed to STRs, just wanted them out of residential zones. Ada Tomayo, resident/Unite Here Local 11, pointed to the many orange shirts in the council chambers that was a reflection of short term rental owners and operators. She added the STRs were taking jobs away from the working class and shrinking the housing market in the city where 3-bedroom homes rented out for$3,100 a month, a challenge for any worker in the hotel industry to find and be able to come up with the rent. She felt the current situation was unenforceable and that STRs must be banned. Isela Lopez, resident/employed in Anaheim, objected to STR owners employing housecleaners for STR operations or providing other services with wages that that were low and offered no benefits. She supported a ban stating if people wanted to go on vacations, they should pay for lodging at the hotels. Valerie Van de Silver remarked she managed about 23 STRs in Anaheim and would address some of the comments made, i.e., there was no truth to the statement that when a home was sold, the appraiser had to disclose if there was a short term rental nearby; insurance companies did not provide separate insurance rates for short term rentals; and there was no truth to the statement that if a home was sold, disclosure of a nearby STR was required. She refuted other statements made as well and pointed out there were 350,000 people in the city of Anaheim and the same 25 individuals continued to speak over and over again. Martin Lopez pointed out Ms. Van de Silver managed an STR near him and in his opinion, was neither a good neighbor nor good operator, explaining the reasons why. He supported the City Council Minutes of February 23,2016 Page 14 of 33 Mayor's recommendation for a complete ban on the short term rentals and asked the City Council to do the same. Ana Martinez spoke in support of banning vacation rentals. She pointed out STR housekeepers were hired as self-employed contractors, were unaware of what that entailed in terms of self- employment taxes, and that many did not speak English nor understand their rights. Gabriel Choufas, resident, remarked his nice, quiet neighborhood had changed because of the proliferation of short term rental homes. At first he thought the value of his home would increase with the first two or three STRs, however, with an STR now behind him and the house next door for sale, he expressed his fear that it might be converted to a short term rental. He wanted the STRs banned adding that he no longer feels right in his own house and was now considering moving. Translation: Language, Spanish. Marguerite Hernandez spoke against STRs, remarking they affect not only community members but those that also worked in the Resort district. She indicated there were 30-40 housekeepers that were competing for hours in hotels and that she was 20th on the list. Weeks would go by when she had no hours which she attributed to STR operations. She hoped the city would listen to those who lived and worked near the Convention Center in the Resort area. Donna Acevedo spoke of the death of her son and the treatment she received from the Police Department. She stated that Gustavo Najera was fatally killed a couple of weeks ago asking why this was still happening in 2016. She requested the city manager to take action against the officer who was harassing her main witness related to the death of her son. An unidentified speaker asked for the video taken of Gustavo Najera because he wanted justice for his death and wanted to understand what really happened. Robert Williams remarked he was candidate for District 4 and had been threatened and yelled at about whether or he supported the STRs. He suggested having the Chief of Police attend council meetings and report on what's happening in the community and the Mayor use his power to bring peace and unity in the city and get things done. Will Godsey, STR operator, asked the city to consider a balanced approach to STRs with an appropriate level of STRs in the right location with the right rules in place to create an environment where both the visitors and the city could benefit. Translation: Language, Spanish. Eva Mendoza, resident, felt the STRs had affected her quality of life and strongly opposed the business. Marisol Ramirez, resident/OCCORD, spoke in support to Mayor Tait's proposal to ban short term rentals. Working within the community and living here, she saw the negative impacts from STRs and strongly supported the ban. An unidentified contractor remarked he had put his life savings into a house, improving and upgrading it with plans to convert it to a short term rental and should Council take action to ban these homes, it would destroy him and so many others like him. He asked Council to come up with a plan to give time to unwind the investment because if it was banned completely and immediately, property values would plummet. City Council Minutes of February 23,2016 Page 15 of 33 Mark Daniels opposed STRs, emphasizing they should not have been allowed in the first place in residential zones and that he supported the ban. Regarding the police involved fatalities, he remarked other communities released their body camera videos over a reasonable amount of time and Anaheim should do the same to bring about unity and stop the animosity. Linda Labados, resident, objected to the shooting of Gustavo Najera and stood in solidarity with Donna Acevedo and Caesar Cruz's mother. She remarked there were other crimes that happened in the city that no one talked about such as the sexual abuse crime against her daughter. She wanted the case reopened and reinvestigated because the police did not do their job. Tal Price, STR owner, remarked that the workshop on STRs this afternoon was exactly what Council asked staff to do, research short term rentals, hold community outreach meetings for both sides of the issue, receive feedback, create an advisory committee, and bring back findings. He added staff heard residents and the operators, spoke with more than 20 cities and researched their programs, policies and ordinances on STRs, and based on months of their time, came up with recommendations. He expressed concern that after staff had put in this time and effort and had become experts in STRs, that one of the responses received was to also consider a ban even when the Director stated he was not recommending a ban at this time. He urged Council to consider staff's valuable recommendations Tammy explained she was not a corporation but a stay-at-home mother who took out a loan on the family's 401K plan to put a down payment on a property in Anaheim to turn it into a short term rental after checking with the city as to whether it was possible or not. She explained her specific situation and why Anaheim should allow short term rentals to accommodate tourist visitors. Nancy West, resident, requested the city conduct a real investigation of a stalker problem she faced three years ago and surfaced again this year. She provided detail on incidents that occurred, asking for the city's help. Julie King remarked she was a stay-at-home mother operating three vacation rentals to put her children through college. She added that at the previous council meeting there were many STR supporters and out of respect for the City Council's time, did not encourage speakers to come out again. She submitted letters from guests praising her vacation rentals and read another excerpt of support letters received. Jean Kelly remarked that she lived on Houston Avenue between Gilbert and Magnolia, a strip that used to belong to the county. She remarked that area had no sidewalks asking what the process was to provide sidewalks on that street. Mayor Tait asked the Public Works Director to meet with Ms. Kelly and to submit a report to Council on how to address the request. An unidentified speaker remarked this was the 4th top tourist destination in America and that Council was not only answering to its 350,000 residents but also to the 23 million visitors that brought tourism to the city. She added that Orlando had 225,000 residents and 7,000 STRs and they made it work. She asked Council to consider that this was an issue important to many and not to the 100 residents who were seeking a ban. Victoria Michaels, resident, strongly supported the community's request to ban the short term rentals and for Council to come up with a solution that was equitable to both sides. She pointed out people attending this meeting wearing orange shirts were soliciting donations on their City Council Minutes of February 23, 2016 Page 16 of 33 website to have the funds to fight Anaheim's residents and warned that no contributions from this organization should be made to council candidates or incumbents. Fred Cornejo supported a ban on STRs, but preferred a private right of action versus holding occupants accountable for violations. Phasing the STRs out, he did not understand, because owners should sell their properties or rent them at market rate so they had options. He submitted a petition from his neighborhood supporting a ban on STRs, remarked that even though some of them may not show up to a meeting and voice their opinions, they were still against STRs. COUNCIL COMMUNICATIONS: Mayor Tait requested an alternative ordinance banning future and current short term rentals with an amortization period for current STRs with the exception of owner-occupied short term rentals, i.e. home-sharing as recommended by staff. He further requested the RFP for the Anaheim Tennis Center be placed on the March 1 agenda for discussion and action. CITY MANAGER'S UPDATE: City Manager Paul Emery provided information about the investigation process as it pertained to officer involved shooting; i.e., the process involved concurrent reviews by several departments and agencies and that staff would coordinate with the Public Safety Advisory Board regarding the Office of Independent Review findings. He also responded to Mayor Tait's request relating to the Anaheim Boysen Park Tennis Center RFP for this spring and Council Member Murray's remark that this item had been approved by the City Council as part of the adoption of the current budget. CONSENT CALENDAR: At 7:50 P.M., Council Member Vanderbilt pulled Item No. 3 for further discussion. Mayor Tait removed Item No. 5 and declared a conflict of interest on Item No. 14 as his firm had done work this past year with OCTA. MOTION: Mayor Pro Tem Kring then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the consent calendar as presented, in accordance with reports, certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Council Member Brandman. ROLL CALL VOTE: AYES —5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt.) NOES —0. Motion Carried 8105 1. Receive and file minutes of the Sister City Commission meetings of October 26, 2015 and November 23, 2015. 2. Approve recognitions to be presented at a later date recognizing the 3rd Annual D116 Anaheim's OC Fest of Ales donation to Anaheim Cops 4 Kids, the honorees of the OC Hispanic Bar Association's 38th Annual Scholarship Fundraiser, Joseph Jackson, Jr. for his civil rights activism, and proclaiming Play Ball Summer in May 2016. D117 4. Approve the Investment Portfolio Report for January 2016. City Council Minutes of February 23,2016 Page 17 of 33 D175 6. Revise the construction schedules for the Brookhurst Street Widening Improvements Project from 1-5 to SR-91 and the State College Boulevard and La Palma Intersection Improvements Project from fiscal year 2015/16 to fiscal year 2017/18. D175 7. Approve amendments to the Seven Year Transportation Capital Improvement Program for fiscal years 2014/15 and 2015/16. D182 8. Adopt the 2016 Update to the Renewables Portfolio Standard (RPS) Policy for the City which includes the Enforcement Plan, and Renewable Energy Resources Plan (Procurement Plan), and authorize and direct the Public Utilities General Manager, or designee, to prepare, execute, and submit any and all documents as are necessary or advisable to implement the RPS Policy, as updated, consistent with the mandates of state law. 9. Approve an agreement with David Taussig &Associates, Inc., in the annual amount of AGR-7179.A $49,000, including expenses, for Mello-Roos special tax administration services for five Community Facilities Districts and consulting services to provide administration for the City's annual assessment on the Anaheim Resort Maintenance District for the 2016, 2017 and 2018 calendar years, with three one-year optional extensions, and authorize the Finance Director to take the necessary actions to implement and administer the agreement. AGR-6705A 10. Approve an agreement with PKF Consulting USA, LLC, in an amount not to exceed $110,000, for updating the City's existing Transient Occupancy Tax market demand analysis study for budgeting purposes for FY 2016/17, FY 2017/18, and FY 2018/19, with an option to extend an additional three years, and authorize the Finance Director to take the necessary actions to implement and administer the agreement. 11. Approve and authorize Public Utilities General Manager to execute and take the AGR-9830 necessary action to implement and administer an agreement, and related documents, with Invoice Cloud, Inc., for a one-time implementation fee of$54,000 and an annual not to exceed amount of$209,000 with authorized Consumer Price Index increases, for electronic bill payment and kiosk payment services for a three year period with the option to renew annually. 12. RESOLUTION NO. 2016-040 A RESOLUTION OF THE CITY COUNCIL OF P124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 11919, 11920, 11923, and 11930). 13. RESOLUTION NO. 2016-041 A RESOLUTION OF THE CITY COUNCIL OF 0175 THE CITY OF ANAHEIM designating Dogwood Avenue from Dresden Street to Loara Street as "Permit Parking Only" street within Permit-Eligible Parking District No. 17 ("Anaheim Memorial"). 14. RESOLUTION NO. 2016-042 A RESOLUTION OF THE CITY COUNCIL OF D175 THE CITY OF ANAHEIM authorizing the Anaheim Director of Public Works or her designee to submit a grant application on behalf of the City of Anaheim to OCTA for City Council Minutes of February 23, 2016 Page 18 of 33 Measure M2 Project V (Community-Based Transit/Circulators Program) funding and if awarded, authorizing the acceptance of such funding on behalf of the City and amending the budget accordingly. Mayor Tait abstained on this item. ROLL CALL VOTE:AYES— 4: (Mayor Pro Tern Kring and Council Members Brandman, Murray, and Vanderbilt). NOES— 0. ABSTENTION— 1: Mayor Tait. Motion Carried. P110 15. RESOLUTION NO. 2016-043 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to vacate certain public streets, highways and easements (Abandonment No. ABA2013-00324) (portions of Anaheim Boulevard adjacent to 1110-1150 North Anaheim Boulevard and 115-125 West La Palma Avenue) (Public hearing scheduled for Council meeting of March 22, 2016). C420 16. ORDINANCE NO. 6361 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending paragraph .0201 (Application) of subsection .020 (Signs-General) of Section 18.114.130 (Sign Regulations) of Chapter 18.114 (Disneyland Resort Specific Plan No. 92-1 (SP 92-1) Zoning and Development Standards) of Title 18 (Zoning) of the Anaheim Municipal Code to substitute a coordinated sign program approved in conjunction with a certain conditional use permit in the place and stead of existing regulations for business and identification signs for Area 'A' of the Anaheim Gardenwalk Overlay based upon the finding and determination that said amendment is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15311 of the State CEQA guidelines (Zoning Code Amendment NO. 2005- 00131) (Adjustment No. 8 to the Disneyland Resort Specific Plan No. 92-1 (SP 92-1)) (Introduced at Council meeting of February 9, 2016, Item No. 14). C280 17. ORDINANCE NO. 6362 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2015-00276) (DEV2014-00095) (establishing a Mixed Use Overlay Zone for parcels at 1110-1116 North Anaheim Boulevard and 115-125 West La Palma Avenue) (Introduced at Council meeting of February 9, 2016, Item No. 18). C280 18. ORDINANCE NO. 6363 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2015-00277) (DEV2015-00002) (420 and 440 North Magnolia Avenue) (rezoning from Transition and General Commercial Zones to Single Family Residential Zone). C280 19. ORDINANCE NO. 6364 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2015-00282) (DEV2015-00071) (2337- 2415 South Manchester Avenue) (rezoning from Transition-Mobile Home Park Overlay and General Commercial Zones to Multiple Family Residential Zone). 0114 20. Approve minutes of Council meetings of January 12, 2016 and January 26, 2016. City Council Minutes of February 23, 2016 Page 19 of 33 END OF CONSENT: 3. Authorize staff to move forward with the development of the 2016 fireworks sales D116 program utilizing a partnership with Anaheim Arena Management that would allow all interested Anaheim nonprofits with the opportunity to raise funds for their organizations through fireworks sales at the Honda Center and a second store location in West Anaheim. Greg Garcia, Deputy City Manager, reported this item was to receive direction from Council on the Anaheim Fireworks Program and authorization for staff to move forward with the development of the 2016 fireworks sales program in partnership with Anaheim Arena Management. This program would allow all interested Anaheim non-profits the opportunity to raise funds for their organizations through firework sales as well as consideration of a second sale site in West Anaheim. He noted that after the passage of Measure E, Council considered two ordinances to allow for the implementation of a fireworks program in Anaheim, one dealt with the sales and the locations of the sales and the other identified the when, where, and enforcement provisions. He pointed out the sales ordinance amended the code to allow for sales to occur at one site, the Honda Center, for the location of a large store but that it was always discussed there could be a possible expansion of the single site concept in the future. Mr. Garcia indicated that Anaheim Arena managed all the sales at the Honda Center using their employees and also provided a program where qualified nonprofits throughout the city were able to receive a percentage of those sales. The sales and use ordinance also established a designated sales period, from June 28th to July 4th, designated the hours of sale and also allowing sale of fireworks to occur on the 4th of July, as well as the use of safe and sane fireworks only on the 4th of July day. In addition, the ordinance also prohibited fireworks in the wildland urban interface area, the area east of the 55 freeway and south of the 91 and made it unlawful to discharge safe and sane fireworks in other areas, including public properties, city parks, any property within a commercial zone or industrial zone of the city. Regarding enforcement, Mr. Garcia explained the ordinance established two categories for fines, one for illegal fireworks and one for violations of safe and sane fireworks. The penalties and fines adopted as part of the ordinance identified $1,000 for the first violation for illegal fireworks and $500 for a safe and sane violation and escalating from there for any additional fines. He stated there had been multiple enforcement teams of police, fire and code enforcement officers on duty from 6:00 P.M. to midnight on the 4th with the city receiving a high volume of calls for service related to both safe and sane fireworks as well as those that were illegal. No fires or injuries were reported in Anaheim; however the city did assist with two fireworks related incidents in nearby cities. NON-PROFIT PARTICIPATION: Mr. Garcia remarked staff had worked with Anaheim Arena Management (AAM) to design a program that would offer all Anaheim nonprofits the opportunity to raise funds as opposed to subjecting the nonprofits to a lottery where a small group of organizations would benefit. The ordinance defined qualified organizations as: any tax-exempt nonprofit based in Anaheim for at least one year that provided benefits and or services to citizens of Anaheim; or a school within Anaheim or any student group, club, or organization officially recognized by the school. The program was established with AAM providing nonprofits with 30 percent of sales generated by the nonprofit supporters to the program and that this support was shown by the purchaser presenting a flyer or other document referencing the City Council Minutes of February 23, 2016 Page 20 of 33 nonprofit they were supporting with this purchase. Additionally AAM agreed to remit 10 percent of gross firework sales to the Anaheim Community Foundation for support of local community events and organizations. He also pointed out that nonprofits did not have to enter and win a lottery to participate; it was open to all, and they did not have to staff the stand for the week, did not have to find a location and pay for insurance and other costs associated with staffing a stand, but still had the ability to raise funds for their organizations with this program. Mr. Garcia noted that the total proceeds to the community from the first year pilot program were just over $85,000, with the amount given directly to the nonprofits a little over $24,000, while the Anaheim Community Foundation was given slightly more than $20,000 for community programs as well as $40,000 for sponsorship of the Anaheim Hills fireworks show. Fifty-three groups ended up receiving funds through the first year of the program receiving about $12,000 matched by a grant from the Community Foundation which doubled the amount received ranging from a few hundred dollars to $2,400. Staff surveyed the participating non-profits receiving positive feedback received as well as identifying two major concerns; i.e., the need for a second location in west Anaheim closer to some of the organizations and to allow more time prior to July 4th for the organizations to mobilize and educate their group of supporters. Therefore, he remarked, staff recommended moving forward with the same model but beginning in February to inform the nonprofits of the program and to authorize a second location on the west side. He informed Council the Police and Fire Departments had taken the lead on the operations plan and after the 4th of July, conducted a debriefing on ways to improve the program. Those recommendations were as follows: • To increase the overall number of city enforcement teams, fire, police, code enforcement, and community services in order to provide a more effective deterrent to illegal fireworks prior to the 4th of July; • To get out in front of the problem earlier this year as well as on the day of the 4th of July; • To increase overall citywide operational staffing needs; i.e., dispatch centers, to make sure they were staffed appropriately; • To increase communication efforts in advance of 4th of July in order to better educate Anaheim residents on the rules and regulations with regard to the discharge of safe and sane fireworks; • To make available all communication materials in multiple languages, not just Spanish; • To provide community nonprofits with more time in advance of the holiday to prepare, to ramp up support and mobilize their membership to purchase fireworks on their behalf, including working with Anaheim Arena Management in developing a strong communications plan to assist nonprofits with their marketing efforts; and • To consider the addition of a second store in west Anaheim so those nonprofit groups and supporters could more easily access fire sales. Staff also had some minor recommendations for the ordinance, as follows: • Removing the requirement that a notice of violation be issued and instead proceeding to immediate citation. This would mean, on the 4th of July enforcement teams were not providing a notice of violation before actually giving real citations; • Streamline the citation process and decrease the amount of fines for safe and sane fireworks to start at $250 rather than $500; City Council Minutes of February 23,2016 Page 21 of 33 • Removing the prohibition of setting off fireworks on residential streets because most people preferred using the street in front of their homes; • Having a gradual scheduling where fines increased for repeat violations even if those violations had taken place in a prior year; and • If permissible, have code enforcement officers issue citations for penal code violations. Council Member Vanderbilt requested clarification on the fines with Mr. Garcia responding there were two separate fines, one for the use of illegal fireworks and a lower fine for violations with the use of safe and sane fireworks. For instance, he explained, safe and sane fireworks could only be used on the 4th of July and if an individual was found to be using them any other day within the city limits, there would be a $500 fine while anyone found to be using illegal fireworks would receive a $1,000 fine. Chief Bruegman remarked there had been a lot of activity with safe and sane fireworks before the 4th of July, and a few citations were issued with most of the activity coming from young kids. He recommended looking at minimum fines for a second citation on safe and sane firework violation but wanted the ability to be able to cite immediately when illegal fireworks were used. Council Member Vanderbilt suspected he had heard a significant number of illegal fireworks last year, hoping for a greater effort highlighting the possible fine for the use of those illegal fireworks and would be supportive of implementing that as part of the program. Chief Bruegman concurred that illegal fireworks were problematic and along with the need to publicize the city's fines to curb that use. Next year his department would employ a different strategy to be more effective in the educational element which then spoke to the need of communication using multiple languages, not just Spanish and English, one of the recommendations going forward. Mayor Pro Tern Kring expressed concern about removing the prohibition for fireworks on residential streets and the impact on pets. Chief Bruegman responded that using backyards for safe fireworks was problematic as well and that it would be safer on asphalt and concrete versus vegetation in the back yards. Mayor Tait spoke to a recent article in the Register that stated $375,000 was generated and of that only about $24,000 went to the 53 nonprofits participating. He remarked as a pilot program he opposed it at the time it was considered, and in his opinion, the nonprofits did not raise nearly the amounts of money generated in other cities. He added when the measure passed, he believed the public thought there would be for-sale booths around town, worked by volunteers to raise funds for charities and he believed the city should return to that concept rather than use a centralized site at the Honda Center. Mr. Garcia responded that he had heard from the nonprofits that they were pleased with the program as it required no effort from them and no out-of-pocket expenses. Council Member Murray remarked no nonprofits were turned away and the only concern she had heard was there was not enough time to get the program off and running. She asked that Council approve the program with enough advance time for the nonprofits but that she would prefer the prohibition against using streets for safe and sane fireworks remain. She worried there could be larger gatherings in the streets without ample security for kids and residents while drivers tried to navigate the streets. She added that Anaheim Arena Management did not make a large profit on this program as they had used their resources, funding and manpower and were willing to add an additional facility is west Anaheim and she would support the program. City Council Minutes of February 23, 2016 Page 22 of 33 MOTION: Council Member Murray moved to approve Agenda Item No. 3 with an amendment to retain the prohibition of fireworks on city streets, seconded by Mayor Pro Tern Kring. DISCUSSION: Council Member Vanderbilt remarked he would prefer to follow staff's recommendation to remove the ban on the use of fireworks on public streets, adding that his vote would be based on that position. Council and staff continued to discuss the removal of the ban on using public streets for fireworks display with Mayor Pro Tem Kring suggesting the pilot program continue for another year and be re-evaluated at that time. ROLL CALL VOTE: AYES — 3: (Mayor Pro Tern Kring and Council Members Brandman and Murray.) NOES —2: (Mayor Tait and Council Member Vanderbilt). Motion Carried to approve Item No. 3 and include a prohibition of fireworks on city streets. 5. Determine, on the basis of the evidence submitted by Walt Disney Parks and Resorts AGR-1516 U.S., Inc. that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 96-01 for the 2015 review period for the Disneyland Resort project. Mayor Tait remarked that an earlier speaker asked that the development agreement be available online, requesting staff to place it on the city's website. Council Member Vanderbilt remarked that in reviewing the staff report and response from Disneyland (the applicant), the map that was included showed the Resort area as it was in 1996, rather than the current expanded site. He asked if it was feasible to modify the map and include the current property owned as part of the agreement. Jonathan Borrego, Planning Services Manager, responded staff would include the updated exhibits in the future. MOTION: Mayor Pro Tem Kring moved to approve Item No. 5, seconded by Council Member Murray. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). NOES — 0. Motion Carried. PUBLIC HEARING: At 8:33 P.M., the public hearing was considered. C280 21. RECLASSIFICATION NO. 2015-00280 CONDITIONAL USE PERMIT NO. 2015-05804 TENTATIVE TRACT MAP NO. 17882 (DEV2015-00057) OWNER: En K. Ha, 3200 Watermark, Irvine, CA 92612 APPLICANT: Jeff Weber, Silveroak Capital Corporation, 19100 Von Karman Avenue, Suite 400, Irvine, CA 92612 LOCATION: 1609 and 1615 West Cerritos Avenue REQUEST: To rezone the property from the Single-Family Residential (RS-2) zone to the Single-Family, Residential (RS-4) zone and to permit and establish an 11-unit small- lot single family residential subdivision. Environmental Determination: The City Council will consider whether to find the project to be Categorically Exempt from the provisions of the California Environmental Quality Act and Guidelines as a Class 32 (In-Fill Development Projects) Categorical Exemption ACTION TAKEN BY THE PLANNING COMMISSION: Approved Reclassification No. 2015-00280 (Resolution No. PC2015-102), Conditional City Council Minutes of February 23, 2016 Page 23 of 33 Use Permit No. 2015-05804 (Resolution No. PC2015-103) and Tentative Tract Map No. 17882 (Resolution No. PC2015-104) VOTE 6-1. Chairman Lieberman and Commissioners Bostwick, Dalati, Henninger, Ramirez and Seymour votes yes; Commissioner Caldwell voted no (Planning Commission meeting of December 14, 2015) (Appealed by Linda Owen and Stephanie Burglin, residents) (Continued from the Council meeting of February 9, 2016, Item No. 17) ORDINANCE NO. 6365 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2015-00280) (DEV2015-00057). RESOLUTION NO. 2016-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting Conditional Use Permit No. 2015- 05804 and determining that said action is exempt from the California Environmental Quality Act pursuant to Section 15332 of Title 14 of the California Code of Regulations (DEV2015-00057) (1609 and 1615 West Cerritos Avenue). RESOLUTION NO. 2016-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 17882 (DEV2015-00057) (1609 and 1615 West Cerritos Avenue). Jonathan Borrego reported this item was an appeal of a request to permit an 11 unit single family residential project. The zoning entitlements for the project included a zone change, a conditional use permit and a subdivision map. The Planning Commission reviewed this proposal at its December 14, 2015 public hearing and after receiving public testimony both in favor and in opposition to the project, the Commission approved the requested actions by a vote of 6:1. He indicated an appeal of the Planning Commission's decision was subsequently filed by Linda Owen and Stephanie Burglin. Project Detail: Mr. Borrego provided the following project details: • The 1.9 acre project site was located on the north side of Cerritos Avenue just east of Euclid Street, was developed with two single family homes with surrounding land uses that included single family homes located in the RS-2 zone in all directions. • The applicant proposed to construct 11 detached single family homes with access to the homes to be provided by a new private street accessed from Cerritos Avenue. The private street would include five on-street parking spaces and all but one home would have a three car garage and a driveway with two open parking spaces. Overall, the development would supply 61 parking spaces which exceeded the 44 spaces required by code. • The two story homes would have elements of traditional Tuscan and Italian style architecture and would range from about 3,000 square feet to 3,500 square feet in size with three different floor plans proposed consisting of 4-5 bedroom units with an option for a 6th bedroom in floor plan 3. • The property was located in the RS-2 single family residential zone, and a reclassification or rezoning to the RS-4 zone was being requested because it allowed for lot sizes smaller than the 7,200 square feet required under the existing zoning. The proposed lots ranged from between 5,482 square feet and 6,853 square feet in size, and averaged 6,400 square feet. • The general plan land use designation for the project site was low density residential and the allowable density range for this site was up to 6.5 units per acre with the project being proposed less than the allowed amount at 5.7 units per acre. City Council Minutes of February 23, 2016 Page 24 of 33 • Although the proposed RS-4 zoning was not listed as a typical implementing zone for the low density residential designation, the general plan allowed typical implementation zones to be substituted provided that the general plan density was not exceeded. Therefore the RS-4 zone could be applied to areas with low density general plan designation as had been done most recently with the residential project approved on the former Riverdale Elementary School site. • Single family residential development in the RS-4 zones was allowed subject to the approval of a conditional use permit and therefore the Planning Commission approved the permit. • A tract map was required to subdivide the property to accommodate the proposed use and included 11 numbered residential lots and four lettered lots designated for the private street and landscaped areas that would be maintained by the homeowners association. The tract map complied with all applicable regulations and was consistent with the density allowed under the general plan. Public Outreach: Mr. Borrego reported City staff and the developer hosted three community meetings with homeowners residing in the surrounding neighborhood. From those meetings, he indicated residents expressed a variety of concerns regarding the proposed development. Based on the feedback received, the developer then dropped one lot from the subdivision which had the effect of increasing the average lot size from 5,700 to about 6,400 square feet and also reduced the project density down from 6.3 units to the acre to the 5.7 units to the acre currently proposed. He noted one additional issue that came up during the public outreach was the issue of short term rentals as this neighborhood was in an area that had numerous vacation rentals and in response to the concerns raised, the applicant agreed to include a provision in the project CC&R's to prevent their use as short term rentals. That condition of approval was included in the resolution for the tentative tract map. Appellant's Concerns: The written appeal filed on this matter listed the areas of concerns and each of the concerns were carefully reviewed and were addressed in the staff report prepared for this item and presented for council's information as follows: • Proposed RS-4 zone was not consistent with Low-Density Residential General Plan designation. • Approval of RS-4 zone would allow smaller easements (setbacks) which would infringe upon the privacy of the neighbors. • Concern regarding contact that the developer had with the Planning Commission before its hearing, even if it was not against the law. • Lack of sidewalk connections along Cerritos Avenue. • Development would set a negative precedence for the area. • Required notification process was not followed. Mr. Borrego commented that one issue residents had identified in community meetings was the gaps in the sidewalk along Cerritos Avenue, and he stated, the applicant would be required to install full sidewalk and parkway improvements in front of the project site. There would be a couple of remaining sidewalk gaps to the west of the project site which Public Works Department had recently secured grant funding to address the sidewalk gap on the south side of the street and would pursue future grant funds to close the remaining gap on the north side of Cerritos Avenue. City Council Minutes of February 23,2016 Page 25 of 33 Traffic impacts had also been a point of discussion with area residents with Mr. Borrego stating that based on trip generation estimates, it was determined that a traffic study was not required for the proposed project as it did not meet the City's Traffic Study threshold of 100 or more peak hour vehicle trips. He pointed out the project's estimated trip generation was calculated in two ways; the first used the Institute of Transportation Engineers, Trip Generation Handbook (which was standard practice) and based on the rates in the handbook, the proposed project was estimated to generate 6 new trips in the AM Peak hour and 9 new trips in the PM Peak Hour. The second method used traffic counts and both estimates, he stated, were fairly close in numbers. In response to residents' concerns about traffic on Cerritos Avenue and the surrounding streets, Mr. Borrego reported the City received four Traffic Calming Petitions as well as three Spillover Parking Petitions in the same vicinity. Traffic Engineering staff held a neighborhood meeting on February 3, 2016 at the Downtown Community Center with over 800 invitations mailed out to affected residents. The meeting was attended by approximately 50 residents who learned about the various city programs available to them. Residents were also able to voice their traffic related concerns and ask questions; they were asked to volunteer to be part of their Neighborhood Traffic Committee to work closely with city staff to develop a Traffic Calming Plan to address all their issues. Lastly, Mr. Borrego stated the Planning Commission carefully considered all testimony received in support and in opposition to the project and both staff and the Commission determined that the project was designed to offer a quality living environment for its future residents and was compatible with the surrounding residential neighborhood and consistent with the city's General Plan. Staff recommended that the City Council deny the requested appeal and uphold the Planning Commission's approval of this request. Mayor Tait opened the public hearing for comments, providing guidelines for the public on the process. Mayor Tait disclosed he had met a couple of weeks ago with the applicant on this matter and had received written communications from a number of the residents in the area. Council Member Brandman stated he had also met with the applicant and received the same communications from residents and had also spoken by phone with several residents in the area. Council Member Vanderbilt added that the applicant had requested a meeting at city hall that he attended along with staff, and he also received the same communications as others as well as visiting the site today. Stephanie Burglin, co-appellant, explained she was a lifelong resident of Anaheim and resided in the area of the project personally using Cerritos Avenue on a daily basis. She represented the many hundreds of homeowners near the proposed development, presenting the city with petitions containing 749 signatures and over 80 letters collected in opposition to this proposed rezoning and project. She noted the community was strongly opposed because they wished to maintain the integrity of existing low density community consisting primarily of single story mid- century design homes and to protect the rights of privacy, and quality of life issues (noise and visual intrusion) along with the property values of the bordering homes. She emphasized that the only Planning Commissioner who concurred with the residents was Mitchell Caldwell and she could not understand why staff and the Commissioners did not understand the impacts of a massive development so near to existing residential homes. She pointed out this area was low density homes set in the RS-2 zoning, with similar easements and setbacks, as well as similar City Council Minutes of February 23, 2016 Page 26 of 33 mapping, bulk, scale and orientation. She then played a video of Mr. Santana who lived next to the developer's project on Orange Avenue, Silver Oaks Collage, who told of experiencing impacts of a similar project as the one proposed for her neighborhood. She asked Council to prevent what happened to residents who bordered the Orange Avenue development who were impacted by loss of privacy, visual and sight line intrusion, noise and loss of property values. This request was based on Title 18 of the Municipal Code that contained nine development condition requirements to be met in order to approve conditional use permits required in RS-4 zones. She emphasized at least three of the nine requirements were not being met; i.e., new buildings or structures related to the project must be compatible with scale, map, bulk, and orientation of existing buildings in the surrounding area; the size and shape of the site proposed for the use was adequate to allow full development of the proposed use in a manner not detrimental to the area, and the impact upon surrounding area had been mitigated to the maximum extent possible. She added that residents had not been properly notified and the community meetings were presentations of the project, and not a negotiation. She stated most residents were not against development but were in favor of responsible development and asked Council to recognize that those conditional use permit requirements were not met with this development plan. Linda Owen, co-appellant, remarked she lived within a few feet of the property being developed and believed the development was in conflict with the surrounding lots and would tower above existing homes. She remarked the rear setbacks did not meet minimum code of 15 feet and the California Room with a possible upper deck further reduced those setbacks to 12 to 13 feet while they were presented as ranging from 16 to 42 feet in width. She stated the California Room, although advertised as optional, was an integral part of the structure and in the Orange Avenue development, every home was built with that option setting the homes even closer to the back walls. She pointed out three different plans were available; however the developer wanted ten of the largest homes built with only one of smaller 3,000 square foot home, adding to the massing effect. In addition, the developer reduced the number of homes from 12 to 11 but changed the mix for his own benefit, the square footage was only reduced 283 square feet however the developer increased the number of large homes adding the California Room to his advantage and she did not feel that any of the concerns from neighbors had been taken into consideration. Ms. Owen also pointed out there were some two story homes in her existing neighborhood but they were less than five percent of the total and did not invade the privacy of the surrounding homes. She emphasized that setbacks, massing, and orientation of the development made the project incompatible and disrespectful to the neighbors and was not a good fit. She requested Council consider the neighborhood's concerns and preserve and protect the rights of the existing citizens. Terry Palmer, resident, explained that his background as a planner was slightly different but he appreciated the need for buffering when the nature and character of adjacent uses were changed. He explained the proposed development with boxier homes on the backs and sides of the parcels and a roofline profile that was bulkier and larger should have a transition area so the residents immediately adjacent to the development would not be impacted by the mass of these homes. He presented slides showing the original proposed plan with a mixture of seven 4-bedroom homes and five of the larger ones and the revised version that changed from 12 to 11 homes with an equivalent amount of square footage with the same setbacks. He stated the neighborhood was more interested in having setbacks increased and pointed out the promised setbacks would not be achievable with the dimensions shown on their plan. City Council Minutes of February 23,2016 Page 27 of 33 Stephanie Burglin requested Mayor Tait allow additional time for Mr. Palmer as he was one of the primary persons on this effort and because his property edged the back of the fence line; Mayor Tait granted additional time. Jeff Webber, Silver Oak Investment, stated he was in complete agreement with the staff report as presented to support the rationale for denial of the appeal. He spoke of the benefits of the proposed project, as listed: • Removal of several homes that had become magnets for transients and trash on the site; • Widening of Cerritos Avenue including the addition of sidewalk and landscaping along the front and filing in the sidewalk gaps on the north side of the street; • Working with the Fire Department to provide those vacant homes for training exercises; • To address short term rental concerns expressed in public meetings, the CC&R's would contain language that no owner could lease a home for any purpose for fewer than 30 days or any other purpose inconsistent with the provisions of the declaration; • Several outreach community meetings had taken place during this process, however the first time he heard residents' concerns was at the Planning Commission hearing resulting in a revision to the previous application to revise the map that had a density of 6.3 dwelling units per acre to the current 11 lot plan with a density of 5.6 units per acre; • In November another outreach meeting took place in which he tried to address some of the concerns about traffic raised, and the reason for the permit parking requests in process for Cerritos; • He showed the original 12 lot plan and the 11 lot plan, adding that the plan complied with all setbacks for rear and side yards in the RS-2 zone. Silver Oak did ask for a reclassification to an RS-4, adding that the rear and side yard setbacks complied with RS-2 zones and the only setback that did not meet the requirement was the front setback because the design of the homes was to push them forward to create larger rear yards for more privacy; • He indicated the Planning Commission approved the proposed project on a 6:1 vote, with Commissioner Caldwell in opposition. He had met with Mr. Caldwell after the December 14th hearing to discuss some of his comments which resulted in Silver Oak volunteering to take five feet from the side yard of lot 6 and add it to the side yard of lot 8, thereby increasing that setback from 8 feet to 10 feet and reducing the setback on lot 6 from 10 feet to five feet, still meeting the requirements of RS-2 zoning. He stated this would create an opportunity for additional privacy between the existing neighborhood although he pointed out there was about 35 feet between the proposed homes and the existing neighborhood's homes; • He had also met with Terry Palmer after the Planning Commission meeting to discuss his concerns with the rental unit he owned with Mr. Palmer offering several suggestions that were not economically feasible for Silver Oak, some of which would require a variance. He indicated to Mr. Palmer that Silver Oak could ask for a reduced setback on these lots for the driveways reducing them from 20 feet to 18 feet and to push those houses up more or return to Public Works and ask them to reduce the street down to 25 feet; • He also told Mr. Palmer that Silver Oaks would plant 24 inch box trees at 15 feet of center along the northern property line to create privacy, using Lots 5, 6 and 7 to block any sight lines, adding he had done the same on the Collage project on Orange Avenue. He was also proposing to put in trees along the eastside of Lot 8, with its increased side yard, for more screening adding that the setback between Lot 8 and the existing home was about 50 to 55 feet. City Council Minutes of February 23, 2016 Page 28 of 33 Terry Palmer noticed that both the RS-2 and RS-4 setback regulations permitted buildings to be very close and very high showing a diagram that could allow a home 35 feet in height at the roof peak and ten feet from a back wall. The 25 foot setback was the primary setback in RS-2 zones, with Mr. Palmer stating that many communities used a stepped-back setback in those cases. He felt there was a lack of practical criteria that could be used to help planners decide whether or not the proposed parcels and projects complied with intrusion with the proximity of low density to medium density projects. He suggested substituting some Plan 3 models for the Plan 1 home, which was 10 feet narrower and moving the homes forward 10 to 20 feet. He then suggested the city could develop sight line criteria that could be measured and used to maintain a certain degree of privacy with existing resident's homes. Mayor Tait asked for clarification on what that criteria would be with Mr. Palmer responding in design terms, ratios, height and distance were considered with a 1:1 ratio related to "enclosing" and that a 2:1 ratio maintained an imposing element, 3:1 starting to look better and with a 4:1 ratio the homes were no longer an imposing element. He added that typically his design business used a 3:1 ratio for distance to height to keep a project from being overbearing. He remarked that screening and separation was used in an effort to not be intrusive and to address those concerns raised about privacy issues. In addition, the California Room had a balcony option that put residents within about 12 feet of a wall and he believed that option should be pulled off the table. Tommy Moreno stated he lived directly between both properties and initially was not concerned about development of the sites. As he began to understand the proposed project plans his concern in addition to the height of the homes was the traffic related to Disneyland access off Katella and Cerritos which was exacerbated in the summer months. He felt the impacts would be too much for the existing community and that reasonable development standards should be employed. Pat Palmer emphasized the residents were not against development, they looked forward to the existing homes being removed but wanted development to be respectful to the existing neighborhood conditions and did not feel huge structures were respectful in any shape or form. She added that several realtors advised that current residents bordering the property lines would see a drop in their property evaluation because the scale, bulk and massing of the development was out of whack with the neighborhood. In addition, the screening proposed with single trunk trees would not provide an adequate screen and Arborvitae or Brush Cherry should be used, reflective of tall shrubbery rather than what was proposed and the fence should be a block wall to block out noise rather than a short vinyl fence. Julie Brunette remarked she was here representing an elderly disabled neighbor who opposed the project on the basis of no rezoning, too many houses and too much traffic; she submitted her letter for the record. Personally, she added that she had been asking the city for years to clean up those lots and put sidewalks in and was not against development but that living within 500 feet of the project would overwhelm and impact her neighborhood on many levels. She suggested the development contain no two-story homes. Mark Frazier, Silver Oak president, offered a counter to statements made about his integrity and character offered. He stated he had been a resident in Anaheim for 15 years, and in 1989 as a member of the board of directors of Canyon Acres, spearheaded a $600,000 expansion plan for this facility for abused children, which was still in operation and serving the city. During his 42 years in residential real estate development, he worked with Henry Mello and Mike Roos to pass Mello Roos legislation and built the first two schools with funds received from the first Mello Roos Community Facilities District in 1983. Without that legislation, he pointed out, City Council Minutes of February 23,2016 Page 29 of 33 schools and major public improvements for parks, fire stations and community centers might not have happened. For the Collage project on West Orange Avenue, he had an opportunity to buy 14 parcels from nine different owners, an underutilized piece of land with eight tear down houses one of which had a marijuana nursery inside and turned that six acres into the new home development in Anaheim. He noted 27 homes had sold since July on one of the few parcels that remained for new development, with many selling over$800,000 and one over $900,000. He emphasized the community might not see it today, but they would be the beneficiaries of that development in the future. He added in the last five years, he had projects approved in and around Anaheim totaling 185 lots developed with much-needed upscale and medium priced homes that funded $1.5 million in school fees and hundreds of thousands of dollars in park fees, and water, sewer and road improvements. He added the densities on those sites were 11 to the acre, 9 to the acre, 6.4 to the acre and 12 to the acre compared to the density on this proposed project which was only 5.7 homes to the acre. He stated that the residents had made many misstatements of fact and false assertions and he believed the real issue was that they were against development of any kind. The lots at 6,500 square feet were not much different than the neighboring 7,200 square feet, at least eight of the 11 homes had rear yard setbacks from 27 to 42 feet, not the 12 to 15 feet as claimed by the residents, the side yard setbacks of 5 feet were the same as the existing residents as was the rear yard setbacks. In addition, he had met with Esther Wallace and WAND many times and had tried to meet with the resident committee but they failed to show up. He added that Silver Oaks would plant screening trees and look at other ideas in discussion with the Planning Department, emphasizing Anaheim had one of the most talented planning departments in the county and the beneficiaries of that talent was reflected throughout the city. Jimmy La Marca, resident, read a letter by his neighbor dated May 7, 2000, thanking residents who voiced their concern or submitted letters at the May 2, 2000 Planning Commission hearing in which staff recommended denial of a waiver permitting a proposed cultural and media center at 1609 W. Cerritos Avenue to keep the neighborhood as it was, a pleasant residential area. He also spoke on his own behalf, asking how the city would handle traffic and safety for kids in the neighborhood resulting from traffic that backed up in front of his house (from Euclid to Disneyland) and was a challenge for him to exit his driveway every morning. He pointed out that the State had not fixed the signal at Euclid and Cerritos for 15 years which contributed to the problem. In addition, he pointed out a previous project considered 16 years ago had been turned down because of traffic concerns, which was still the case and now with 11 homes and the numerous cars those homes would support proposed for this property, there would be no parking available as well. William Fitzgerald remarked this project was not for the public good, it would degrade and devalue the nearby homes, and offered his opinion on why it would be approved by the City Council. Ethel Halpern objected to city council members having ex parte communications with the developer, stating it was against the Brown Act. She added the notification requirements had not been met, and objected to staff's statement that the project would provide quality living for future residents and be compatible with surrounding neighborhoods and consistent with the general plan. She pointed out residents were told the project did not meet the minimum 100 car threshold for a traffic analysis report but had also stated that 8,030 cars passed through that area in a 24 hour period, which meant that 335 cars an hour passed through, and in her opinion City Council Minutes of February 23, 2016 Page 30 of 33 exceeded the minimum for a traffic analysis. She asked Council to keep the essence of the neighborhood intact and approve the appeal of this development. Nick Blethrow, resident to the east of the proposed development, stated his main concern was with the traffic and for the privacy for those homes directly bordering the development, hoping some sort of landscaped screen would be built if the project was approved. Cheryl Blethrow remarked she purchased her home in 1987 and while she was not within 300 feet of the development, she was never noticed about the project until it had come to her attention through neighbors. Her concerns had to do with the close proximity of the new homes to some neighbors who were elderly, whom had lived in the area for 50 years and never expected this kind of development to be on the other side of the fence. She hoped there could be some concessions made, such as creating a front porch rather than place a balcony on the back overwhelming nearby residences. She pointed out that two of the existing neighbors to the east of their property wanted to sell their land to the developer which would then provide more acreage to reconfigure the street and lots and appease the encroachment over existing neighbors, adding these modifications and improvements would make a difference and beautify Cerritos Avenue. Randy Allison, sales person on the project on Orange Avenue and the previous project on Ball Road built by the developer, explained he had met with the adjacent neighbors on those projects who were initially concerned about new development. However, he pointed out, once the construction began they recognized the good quality of the product and believed it would raise their home values. He emphasized that Silver Oak Investment was willing to remove the deck option if that was something Council would like to consider. REBUTTAL: Linda Owen stated the development did not satisfy three of the nine required development conditions in the Anaheim Municipal Code regarding scale, mass, bulk, orientation and its effects on the surrounding area. She felt the size and shape of the site was not adequate and the project would be detrimental to the existing area and that the scale, mass, bulk and orientation of the buildings were not compatible as well and that the impact to the surrounding area was not mitigated to the maximum extent possible. She restated that the community was not notified about the Planning Commission hearings, including the resident who would have three units constructed behind his house. She felt provisions should have been in place months ago regarding setbacks, greenbelts or landscape screening, elimination of the flat deck, acceptable building materials, wall heights and an attractive street presence on Cerritos plus undergrounding of utilities. She urged Council to consider the existing residents of Anaheim when making their determination. With no other comments offered, Mayor Tait closed the hearing. Mayor Pro Tern Kring asked staff to speak to the statement there were no notifications sent with Jonathan Borrego remarking that early on in the process when comments were made about the notification process for the Planning Commission hearings, staff double-checked process and found that Planning Commission staff had certified that mailings were done correctly, that the mailing list was correct, and the notices were mailed according to the law for the typical 300 foot radius. Ms. Kring remarked the developer appeared to be making concessions, dropping one house from the design, agreeing to drop the deck option and willing to provide landscape screening and appeared to be trying to work with the residents as opposed to comments offered by residents. She then read an email received from Esther Wallace, who praised Jeff Webber City Council Minutes of February 23, 2016 Page 31 of 33 and Silver Oak Corporation as an outstanding builder, one who listened to the community and built homes with class as could be seen in his new home development west of Euclid. Ms. Wallace added he was considerate about neighboring residences ensuring good design and window placement, included parking that exceeded requirements offering a project with 5.7 housing units to the acre. Mayor Pro Tern Kring added with those comments from an individual who had been looking out for the community of west Anaheim for years and only wanted the best for the city, she would support denial of the appeal. Council Member Vanderbilt requested clarification on the Orange Avenue project and the comments made by a resident of that project. Mr. Borrego stated he believed the residents were trying to draw a correlation between the two projects although there were many differences between the two. Mr. Borrego added the setbacks were greater on this project and that Mr. Webber had discussed increasing the side setback on the home which abutted a rear yard, which would further decrease that setback. To Council Member Vanderbilt's remark on the number of two-story homes in the existing neighborhood, Mr. Borrego stated there were a number of two story homes in the neighborhood and some were upwards of 5,000 square feet and he pointed out staff did take that into consideration when the project was initially reviewed in terms of neighborhood compatibility. Council further discussed the size of the lots, RS-2 versus RS-4, parkway standards, and the size of the proposed two story homes. Mayor Tait remarked the homes were designed with the architectural amenities in the front with the back and sides more stark expressing some concern about the size and mass of the structures on Lot 1 and Lots 4 and 8 with side yard setbacks that were more like two back yards. Mr. Borrego stated that staff looked at Lot 8 closely in terms of its interface with the property to the rear, to see whether or not there would be any direct visual impacts. And as mentioned by the developer, he was proposing to increase the setbacks from 5 feet to 10 feet for the lot in the corner and in addition to that plant some trees along that property line as well to mitigate privacy. Mayor Tait remarked he was more concerned with the other lot with Mr. Borrego responding that the way the home was placed on the lot, it did not actually sit on the complete rear yard of this lot and that was something else staff took into consideration as well. Mayor Tait wondered if the zoning remained at RS-2, how many lots would there be on the property with Mr. Borrego estimating there would probably be about eight lots, with four lots loaded on each side of the private street and likely widened and the first six lots coming off Cerritos Avenue. Council Member Murray remarked that Esther Wallace had been a leader in west Anaheim for decades and was hypersensitive to projects that impacted neighborhoods and had strongly supported this developer. Regarding the development, she pointed out these were high-end homes that would improve the comparable values for residents and there were significant needed infrastructure improvements imposed that would otherwise have happened at city expense. She was also concerned about traffic issues raised, requesting Public Works Department look into that and see what could be done in terms of signal light improvements or other safety measures that could help that community. She pointed out Anaheim had state and federal mandates to continue to provide infill housing in the city and this was private property that with some minor modifications, the developer appeared to be trying to accommodate concerns raised. She would be supporting the project and disclosed she had not met with the applicant nor taken any campaign contributions nor planned to do so. She stated her decision was based on her analysis and review of the materials provided. Mayor Tait remarked he had listened to the well-presented appeal and felt the concerns raised were reasonable as far as the massing of the homes versus the setbacks and when a zone City Council Minutes of February 23, 2016 Page 32 of 33 change was involved, he gave the project strict scrutiny. He pointed out if the developer came up with one less lot, the project would seem more reasonable to him and as is, he thought the development would impact the value of the homes behind it. He would prefer to have the developer revise the site plans and reduce the housing units because of the side yards and the view off Cerritos Avenue and for that reason would vote to uphold the appeal. Council Member Brandman disclosed he had one conversation with the applicant who indicated Commissioner Caldwell had an issue with setbacks but that he, (the developer) was working to address Commissioner Caldwell's concerns. In addition, he also received the letter from Esther Wallace. Mr. Brandman had also spoken to Commissioner Caldwell who explained his concerns and that they had not been met and if he had been presented with the changes that were now made, he would have voted in favor of the project. Council Member Brandman remarked he had heard the concerns of the existing residents, but believed that all else being equal, this development would be a benefit to the community and that he had seen Mr. Webber's work all over the county and in West Anaheim and would not uphold the appeal. MOTION: Council Member Brandman moved to deny the appeal of the Planning Commission's decision to rezone the property at 1609 and 1615 West Cerritos Avenue from RS-2 zone to RS- 4 zone and to permit and establish an 11-unit, small-lot single family residential subdivision by the following actions: 1) to find the project to be Categorically Exempt from the provisions of the California Environmental Quality Act and Guidelines as a Class 32 (In-Fill Development Projects) Categorical Exemption; and 2) to introduce ORDINANCE NO. 6365 AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2015-00280) (DEV2015-00057); and 3) to approve RESOLUTION NO. 2016-044, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting Conditional Use Permit No. 2015- 05804 and determining that said action is exempt from the California Environmental Quality Act pursuant to Section 15332 of Title 14 of the California Code of Regulations (DEV2015-00057) (1609 and 1615 West Cerritos Avenue) 4) to approve RESOLUTION NO. 2016-045, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 17882 (DEV2015-00057) (1609 and 1615 West Cerritos Avenue). ROLL CALL VOTE: AYES - 3: (Mayor Pro Tern Kring and Council Members Brandman and Murray). NOES — 2: (Mayo Tait and Council Member Vanderbilt). Motion Carried. COUNCIL COMMUNICATIONS: Mayor Pro Tern Kring spoke of her attendance at the launch of the Tres Estrellas Bus Service and the CUPA Conference, and requested the meeting be adjourned in memory of Phyllis Boydstun, former Planning Commissioner. Council Member Murray spoke of her attendance at the launch of the Tres Estrellas Bus Service and expressed her condolences for U.S. Supreme Court Justice Scalia. Council Member Brandman expressed his condolences for the family of Phyllis Boydstun. Mayor Tait reported his attendance at the US Conference of Mayors Leadership Meeting in Miami. City Council Minutes of February 23,2016 Page 33 of 33 ADJOURNMENT: At 10:49 P.M., Mayor Tait adjourned the meeting in memory of Phyllis Boydstun and U.S. Supreme Court Justice Scalia. r- .-ctfully submitted, 41110 el Linda N. Andal, CMC City Clerk