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04/12/2016 ANAHEIM CITY COUNCIL REGULAR AJOURNED MEETING OF APRIL 12, 2016 The regular meeting of April 12, 2016 was called to order at 3:01 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 April 8, 2016. PRESENT: Mayor Tom Tait and Council Members: Lucille Kring, Kris Murray and James Vanderbilt; Council Member Brandman joined the meeting at the start of the Closed Session agenda. STAFF PRESENT: City Manager Paul Emery, City Attorney Michael Houston and City Clerk Linda Andal. ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: William Fitzgerald addressed closed session item no. 2, offering his perspective on the litigation. At 3:04 P.M., city council adjourned to closed session for consideration of the following items: CLOSED SESSION: 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property: Parcel 3 of Parcel Map 88-251, in the City of Anaheim, County of Orange, State of California, as per map recorded in Book 233, pages 41 to 46 inclusive of Parcel Maps, in the office of the County Recorder of said county (also commonly referred to as Car Park 2 of the Anaheim Convention Center and the Hilton Self-Parking Garage). Agency Negotiator: Tom Morton Negotiating Parties: HHC HA TRS, Inc. Under Negotiation: Price and terms of payment for purchase and sale of property 2. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Cristina Talley v. City of Anaheim, Case No. 30-2014-00751921-CU- OE-CJC 3. PUBLIC EMPLOYEE APPOINTMENT (Section 54957 (b) of the California Government Code) Position: City Attorney 4. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Bill McLeod Position: City Attorney 5. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) City Council Minutes of April 12, 2016 Page 2 of 25 Name of Case: Michelotti v. City of Anaheim, Orange County Superior Court Case No. 30-2014 00750012 6. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the Government Code) Agency Designated Representative: Bill McLeod, Jason Motsick Name of Employee Organizations: Anaheim Police Association (APA), Anaheim Police Management Association (APMA), Anaheim Municipal Employees Association, General and Clerical Units (AMEA), Service Employees' International Union, Local 1877 (SEIU), Teamsters Local 952 7. CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: loana Aronovici v. City of Anaheim, et al., OCSC Case No. 30-2014- 00762502 At 5:19 P.M., the council session was reconvened. INVOCATION: Pastor Jim Schibsted, First Congregational Church of Anaheim FLAG SALUTE: Council Member James Vanderbilt PRESENTATIONS: Recognizing former Orange County Grand Jurors John Moohr, Board President, announced there were over 160 members serving on the grand jury that met for one year, five days a week and heard administrative county issues and criminal cases. He encouraged interested citizens to submit an application on the grand jury website. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming April 17-23, 2016, as Tree Appreciation Week Proclaiming May 2016, as Play Ball Summer Mike Atkinson, Anaheim Public Works, remarked this was the 34th year Anaheim was recognized as Tree City USA member and specific to the city, Arbor Day would be celebrated on April 20th. Jessica Bernard, 2016 Disney Ambassador, announced that 60 trees would be planted in Anaheim parks during Earth Month in honor of the Disney 60th Diamond anniversary celebration. Students from Roosevelt Elementary school would help Disney volunteers kick off the planting at Boysen Park with six pink Trumpet trees. At 5:30 P.M., the Anaheim Housing Authority was called to order(in joint session with the Anaheim City Council). ADDITIONS/DELETIONS TO THE AGENDAS: City Clerk, Linda Andal, announced staff requested Item No. 16 be deleted from the agenda and would return at a future date. 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, offered a reading from the Bible. City Council Minutes of April 12,2016 Page 3 of 25 Duane Roberts submitted a letter of complaint against Police Chief Raul Quezada requesting the city manager open an investigation regarding the time sequence of events that occurred with a confrontation between members of the Ku Klux Klan and anti-racist counter protestors on February 27, 2016. B. Harold Schwartz remarked the corner of La Palma and Anaheim Boulevard was an oasis of green with 30 trees, recommending council reconsider its decision to sell the property and use it as a continuation of the beautification efforts of the city for an otherwise crowded urban area. William Fitzgerald, H.O.M.E, objected to the sale of one acre of publicly owned land at the intersection of La Palma and Anaheim Boulevard, stating he believed it was worth in excess of $3 million and should not be sold to a residential developer for $1 million, questioning staff and Council's motivation. Mayor Tait responded to those comments, stating there was no truth to the statements made by Mr. Fitzgerald. Luis Lopez requested Council ban all short term rentals (STRs) of less than 30 days, ban STRs of single rooms or partial units if the owner was not living there, ban advertising by any broker or website of STRs that do not comply, and allow private right of legal action for residents to address violations. Lou Noble spoke of his advocacy on behalf of Anaheim's homeless, urging an end to the criminalization of certain homeless activities and to immediately create safe zones while working on long-term solutions to the problem. R. Joshua Collins, homeless advocate, requested the city stop the taking of homeless possessions from city parks and find ways for the homeless population to co-exist. Joe Sepulveda, east Anaheim resident, remarked his son was approached by gang members who made a shooting gesture from a vehicle while he was walking home from South Jr. High School. He called the Police Department who responded with gang enforcement officers who explained there was a gang problem happening at Boysen Park as a result of a turf war. He appreciated the department's response and wanted to ensure that something was being done so that his son would not be afraid to walk home from school or to play at Boysen Park. He also sent an email to Council to apprise them of this issue. Mayor Tait responded and advised that a meeting had been held today with the Chief of Police, the City Manager and stakeholders from the parks to develop a strategy to address gang problems and invited Mr. Sepulveda to speak with the Chief this evening for further details of that meeting and the city's effort to take back that park. Council Member Murray emphasized the city was concerned and working to address issues not just at Boysen but at Juarez and other parks that were experiencing similar problems. Judith Carroll spoke to the short term rental issue, remarking she had lived in Sherwood Village since 1998 and enjoyed a quiet, peaceful community until the arrival of STRs where neighbors changed daily and the community pool became inaccessible to many because it was filled to capacity by vacationers. She supported a ban on STRs and extension of the moratorium. Ms. Carroll also submitted a letter for the record from Mrs. Arthur Mae Smith, requesting Council return her residential community to pre-STR impacts. Mike Robbins opposed STRs that made mockery of the shared economy, converted needed housing stock and displaced long-term residents while destroying the sense of safety, security and community with their business operations. City Council Minutes of April 12,2016 Page 4 of 25 Jeanine Robbins remarked the city had studied and discussed short term rentals for a significant period of time and it was time to end the problems and restore quality of life to Anaheim's residents. The fight to restore neighborhoods now impacted local schools with decreasing student populations and affected census populations from which cities and agencies benefitted from $400 billion in federal funding based on population figures. She urged Council to return with a ban on STRs in a timely manner so that the phase out of existing rentals could begin with a stronger ordinance in place to address STRs during the phase-out period. Diane Guenette, resident for 50 years, remarked she moved to Sherwood Village 42 years ago and now faced living with the impacts of STRs. She urged a complete ban on the STRs. Joan Miller, Sherwood Village, requested Council ban STRs stating they were ruining the peace of mind and quiet residential community she once enjoyed. The constant flux of vacationers and house cleaners that readied the homes for new visitors was continuous, annoying and frightening for her and others. Sandra Henry stated as a single woman, she struggled to buy a home in Sherwood Village and for over 40 years her neighbors had become her friends and family. However, with the arrival of STRs, those close connections no longer existed and her home that was now paid for could no longer be enjoyed. She wanted a ban on STRs. Martin Lopez submitted a petition signed by over 1,100 Anaheim residents and voters, that spoke to the proliferation of STRs and the negative impacts on residential zones and the regulations that failed to address this problem. The petition requested the following: 1) ban all STRs less than 30 days of all units, 2) ban STRs of single rooms or partial units if the owner was not living there, 3) ban advertising by any broker or website of rentals that do not comply and 4) allow private right of action so residents could address violations on their own; he urged immediate action. Bobby Donelson, Sherwood Village, reported this was a grass roots movement by residents to ban STRs and its supporters were growing. He also supported the four points recommended by Martin Lopez and submitted a letter from Patrick Van Arkle and another 18 residents also in support of a ban. He added if this ban did not pass in May, the community would address the issue during the November local election. Pam Donelson supported the ban on STRs and the four points addressed by Martin Lopez, asking Council to restore Anaheim's residential communities and quality of life to its residents. She then submitted a letter by Elsie and Glen Bagley, for the record that supported the ban on STRs. Larry Edward Minery owned a condominium in Sherwood Village with his son Matthew, and spoke to the impacts being sandwiched between two rented condominiums, especially if they were both rented by family members. He encouraged Council to phase out STRs as quickly as possible. Dorinda McCachelon stated she spoke on behalf of 2,700 people that did not support the Orange County Vector Control's aerial spraying of pesticides, asking the Council to represent their voice to the Vector Control Board. Specifically, she requested that board approval be necessary for any spray applications as stated in SB1588 and that City Councils and other governing bodies must have a majority vote of the entire governing body before taking action. City Council Minutes of April 12, 2016 Page 5 of 25 Should that requested not be approved, she asked that residents be given fair notice of any aerial applications. Peter Page, Sherwood Village, read and submitted a letter for the record from Fern Maxwell, who urged a complete ban on all STRs. He read, as a 96 year old resident of Sherwood, she no longer felt safe walking in her community stating she needed to know and trust her neighbors and not be approached by STR owners who sought to purchase her home to add to their inventory. Mr. Paige added that on behalf of himself, he felt STRs were out of control in his community as they did not belong in a residential area, asking to council to end this damaging practice. Meny Miller explained she was 84 years old and lived alone in Sherwood Village and until the past few years had always felt happy, safe and secure living among neighbors who knew her and cared about her well-being. Due to the invasion of short term rentals, she no longer had the feeling of living in a quiet, safe community, asking council to ban the STR business. Virginia Hughes remarked she purchased her Sherwood Village home 36 years ago for her retirement years. Now the 221 townhome complex had 57 short term rental units operating as a business that allowed under occupancy rules, up to 11 persons in a 1330 square foot townhome. Out of concern for her own safety, health and welfare and that of other permanent residents, she requested Council ban the operation of STRs in Anaheim and restore the neighborhoods and rights of Anaheim's permanent residents. Keith Olesen announced that through the generosity of the city, volunteers had been storing and building floats for the annual Fall Festival and Halloween parade from a formerly owned redevelopment property that was now sold, leaving the committee 30 days to vacate the festival's possessions. He asked for the city's assistance in finding another location for the floats and accessories. Mayor Tait inquired how much space was needed with Mr. Olesen responding that the current building was 5,000 to 6,000 square feet, and required 10 or 12 foot tall warehouse doors for ingress/egress of the floats, along with electricity for tools that enabled the building/repair of floats each year. Mayor Tait invited community members to come up with a solution and to contact the city or Mr. Olesen. JoAn Gottlieb, 82 year resident and a volunteer with the float committee, thanked the city for putting the word out for a new storage area, remarking the work the volunteers did each year was fantastic as well as their commitment to this 92 year tradition. John Leos announced he was representing East Anaheim Little League to thank the Anaheim Police Department for their response to an incident that occurred on April 6th. A meeting was held last Sunday with members of the command staff and Supervisor Nelson's office to talk about some of the issues happening not only at Boysen Park but also Juarez Park, and he encouraged the city to do all it could to resolve the issues that affect the families and residents that used those parks, including organizations like the East Anaheim Little League. Eddie Burciaga, president of East Anaheim Little League, appreciated the help received from city staff and encouraged the city to improve the baseball fields at Boysen and Juarez Parks, making it safer and better for the youths who used them, stressing that the main goal of the Little League was to produce positive and outstanding citizens of Anaheim. Kelly Striegl addressed STRs stating the owners who sold them their Anaheim house never disclosed the fact that the residence adjoined a five bedroom short term rental with a game City Council Minutes of April 12,2016 Page 6 of 25 room that opened to the back yard. In the few months she and her family lived in their new home, they were forced to live next to a party zone that often lasted until 3:00 A.M. While she regularly called the Anaheim Police Department, she explained there was little they could do other than to temporarily quiet the noise. She stated that putting the equivalent of small hotels into unsuspecting neighborhoods ruined the lives of people who lived around them and pitted residents against tourists. She asked Council to extend the moratorium and then ban the STRs to bring back quality of life to Anaheim residents. Michael Striegl, resident, urged the city to address the STR issues and lead the way for other communities in southern California who were dealing with similar issues. Darwin Fait, resident, expressed his frustration that it had taken such a significant amount of time to get STRs removed from neighborhoods. For himself and many of his neighbors, he reported they were now single issue voters and were most interested in candidates moving aggressively to ban and phase out the businesses. Gilbert Moreno, resident, stated a civil rights attorney had indicated it was likely the proposed short term rental ordinance might constitute a violation of civil rights because it introduced commercial business into residential areas with resulting impacts. He remarked other cities had banned STRs and came to that decision without prolonging the issue, urging Council to take care of this problem on behalf of Anaheim residents. Leah Beattie stated she had lived in Sherwood Village for 41 years and hoped Council would ban STRs in Anaheim as she no longer felt safe in her complex. Mark Daniels, resident, stated he would prefer Council ban the STRs tonight, not a year from now as it addressed a fundamental aspect of the zoning law, to not mix single family residential with commercial ventures. Mageli Valdepena, Harle Place, off Cerritos between 9th and Euclid, advised her neighborhood requested permit parking due to overflow parking in the area. She had met with staff in February and she and a majority of the residents of that area was still waiting for the survey. Regarding STRs, she explained there were two in her 12 home cul-de-sac with a third house just going up for sale and she and other neighbors worried for the future of such a small residential area that already was impacted from overflow parking. She hoped Council understood what those impacts did to communities. Amanda Teneyck, Anaheim teacher, spoke on behalf of a group of over 2,700 that did not support Orange County Vector Control's aerial spraying of pesticides, asking Mayor Pro Tem Kring to represent the voices of Anaheim residents when voting on this issue at the April 21St Vector Control Board meeting. She and others were concerned about the toxic impacts of pesticides, especially on the youth and were urging Vector Control board members to vote to maintain the original purpose of SB 1588 as it related to require a majority vote of the entire governmental body before implementing aerial spraying. She also encouraged a campaign to educate citizens on the dangers of stagnant water where mosquitos breed. Salina Correa, Sherwood Village, urged Council to ban STRs because of the negative impacts they had on her community and her family. Vern Nelson, District 5 resident, referenced Agenda Item 36, asking how a penalty on the homeless would accomplish anything other than jamming up the courts, asking that the item be City Council Minutes of April 12,2016 Page 7 of 25 pulled from the consent calendar and discussed. He supported earlier comments made on Closed Session Item No. 2 and supported a ban on STRs. Kim Cushing, resident, addressed the high noise levels experienced at city bus stops particularly at the intersection of Harbor and Lincoln where the buildings on each corner amplified sounds. Luisa Lam, Sherwood Village, submitted a letter for the record from a neighbor who could not attend the meeting. Kathleen Maxwell's letter cited the impacts her 96 year old mother encountered because of STRs, asking the city to ban them. Ms. Lam also requested the city consider a ban on STRs sooner rather than later. Arturo Ferreras, resident, stated he was here to speak on behalf of the rest of his community asking the city to ban STRs. He stated the quality of life of neighborhoods had been sacrificed under the guise of development and now there was no more community, just strangers and businesses. He urged Council to ban STRs today. An unidentified speaker stated he supported a ban on STRs because residents did not mix with the vacationing public in a small residential community. Teachers were being laid off, schools were impacted, and families were disturbed nightly by noise. On behalf of the elderly, the young and the families impacted, he asked Council to ban the STRs now. An unidentified speaker addressed Agenda Item No. 37, the sale of fireworks ordinance stating he did not agree with a single operator getting exclusive rights to the sale of fireworks along with requiring the presentation of a flyer if the buyer wanted the sales to go towards a non-profit. He wanted the flyers eliminated, and proposed to have posters at the registers with a two or three digit code that corresponded with a non-profit group that could be recorded with an audit trail specific to where the donations would go. He added for the two nonprofits that received a fixed amount, they might get the benefit of a sale if no code was used. Karen Stoyanoff, Unitarian Universalist Church of Anaheim, spoke on behalf of Clergy and Laity United for Economic Justice, on the issue of STRs. She emphasized fairness was an important element in how people could live in Anaheim and with STRs in operation, people lost jobs, hotels lost business, and rental housing was impacted. She added the fairness issue was much broader than the difficulty of people living in those STR neighborhoods and she hoped council would understand that when a decision was made. Alberto Blackwood, resident, spoke as a resident and member of the clergy on behalf of CLUE and Progressive Interfaith Alliance that represented 300 houses of worship. CLUE was concerned about the destruction of community in this new shared economy, urging Council to consider the detrimental impacts of STRs and the need to build a community where the elderly and children felt safe and families were not disrupted. Sydney Miles remarked he had taught in the AUHSD for 40 years and had been a resident in Anaheim since 1985. He did not feel that STRs were a good fit for a residential community for a number of reasons, one of which was the shock of seeing a bus pull up and families go into the house next door to drop their luggage off and return at 1:00 AM from Downtown Disney walking through local neighborhoods to reach their rental. He pointed out that of all the STRs in Anaheim, only 16 were listed with ADA accommodations and he did not understand why they were not required to be certified in compliance with ADA before issuing a business license. City Council Minutes of April 12, 2016 Page 8 of 25 Robert Williams stated as a candidate for District 4, he had been studying the issue of STRs and supported the ban. He urged Council to extend the moratorium, direct the City Attorney to draft an ordinance that would protect the city from any kind of legal action, and bring the sense of community back to Anaheim. Larry Barnes, resident, asked Council to extend the moratorium on STRs and to make a decision tonight and not prolong it for another year. He added that he lived next door to an unauthorized STR, an owner that had applied for a city permit which had been denied and had been consistently renting that home since last November. He asked Council to stop these unlicensed operators from renting. Senator Dunn emphasized that for any society, the foundational block basic to all was family. He stated this disruptive technology had resulted in STRs that were eroding the community and requested the city end STRs and preserve Anaheim's neighborhoods. Victoria Michaels, resident, explained the need for additional skate board parks for the youth of Anaheim, remarking they could be constructed in urban areas and help keep the youth away from gangs and give them a method to express their feelings in a pro-social way. She also supported a ban on STRs and the concept a previous speaker suggested of posters identifying nonprofits for the sale of fireworks placed at the point of sale. She also addressed her efforts to help bridge the gap between law enforcement and Anaheim's youths. Linda Lobatos, resident, spoke to the homeless situation at La Palma Park stating they needed programs, health and mental services, and that criminalization should not be a part of the process. She urged the city to research and do what was best for the homeless population. Regarding STRs, she urged the protection of workers and to ban STRs. COUNCIL COMMUNICATIONS: Council Member Vanderbilt requested a discussion item be placed on the next agenda related to storage locations for the Anaheim Fall Festival and Halloween Parade floats and displays. Council Member Brandman responded to comments by Linda Lobatos. CITY MANAGER'S UPDATE: None CONSENT CALENDAR: Council Member Vanderbilt removed Item Nos. 14, 26, 37 and 38 from the consent calendar, for further discussion; Mayor Pro Tern Kring removed Item No. 17; Council Member Brandman pulled Item No. 35 and Mayor Tait removed Item Nos. 33 and 34 and stated he would abstain on Item Nos. 18 and 21 as his firm had worked the past year with RJ Noble Company and the County of Orange. Mayor Pro Tern Kring then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of the consent calendar as presented, in accordance with reports, certifications and recommendations furnished each city council member and as listed on the consent calendar, seconded by Council Member Murray. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt.) NOES — 0. Motion Carried B105 5. Receive and file minutes of the Parks and Recreation Commission meeting of January 27, 2016 and Public Utilities Board meeting of February 24, 2016. D116 6. Approve recognitions to be presented at a later date recognizing Disneyland Resort Dreamers & Doers Luminaries Award recipients, Anaheim Lions' Club Youth of the City Council Minutes of April 12, 2016 Page 9 of 25 Year, Jonathan Esquivel with Cops 4 Kids Boxing Program, Don Mitchell, and Ethyn Erwing. 7. Determine, on the basis of the evidence submitted by Platinum Vista Apartments L.P., AGR-5825.I3 that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2007-00002 for the 2015 review period for the Platinum Vista Project in the Platinum Triangle located at 1015 and 1105 E. Katella Avenue. 8. Determine, on the basis of the evidence submitted by Platinum Gateway Development AGR-5230.A Company, L.P., that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2008-00002 for the 2015 review period for the Platinum Gateway Project in the Platinum Triangle located at 915 E. Katella Avenue (northeast corner of Katella Avenue and Lewis Street). 9. Award the contract to the lowest responsible bidder, Best Drilling and Pump, Inc., in the AGR 9955 amount of$1,587,005, for the drilling of Well No. 59 and decommissioning of Well No. 36 and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 10. Award the contract to the lowest responsible bidder, Roadway Engineering and Contracting, Inc., in the amount of$158,295, for the Car Park 2 Ingress and Egress AGR-9956 Improvements Project and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 11. Accept the lowest responsive bids of F C & Sons Roofing, Inc., Best Contracting D180 Services, Inc., and Rite-Way Roof Corporation, in the combined not to exceed amount of $466,043, for roofing services at the Children's Station, Anaheim Heliport, Anaheim Downtown Youth Center, and Public Works Operations Building, in accordance with Bid #8647. D180 12. Accept the lowest responsive bids of Main Street Signs and Maneri Sign Co., Inc., in the combined not to exceed amount of$656,553, for street and traffic signs, posts, anchors, and related hardware for a one year period with four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #8670. D180 13. Accept the lowest responsive and responsible bid from All American Petroleum, in the amount of$69,337, for providing off-site vehicle washing services for the Public Works Department for a one year period with up to three one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #8674. AGR-9957 15. Approve a Memorandum of Understanding establishing Pudong New Area, Shanghai as Anaheim's Sister City. 16. Approve and authorize the City Manager, or his designee, to execute the CaIWORKS Vocational Training Program Vendor Agreement with the United Education Institute, in an amount not to exceed $150,000, for the provision of occupational skills training and authorize the Workforce Development Manager, or authorized representatives, to administer the agreement. City Council Minutes of April 12,2016 Page 10 of 25 AGR-6443.A 18. Approve an agreement with R. J. Noble Company, in the amount of $1,026,486, for asphalt concrete materials and dumping for a one year period with four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options. Mayor Tait recorded an abstention on this item. ROLL CALL VOTE to Approve:AYES— 4: (Mayor Pro Tern Kring and Council Members: Brandman, Murray and Vanderbilt). NOES— 0. ABSTENTION— 1: Mayor Tait. Motion Carried. AGR-4565.4 19. Approve the Fourth Amendment to Agreement with West Coast Arborists, Inc., increasing the contract amount to $2,765,772, for tree trimming and maintenance services throughout the City for a one year period with up to four annual renewals and authorize the Purchasing Agent to execute the renewals, as needed, in accordance with approved budget appropriations for each applicable year. AGR-9959 20. Approve an agreement with Anderson Penna Partners, Inc., in the amount of$542,932, for design services for the Lincoln Street Widening Project from East Street to Evergreen Street. 21. Approve the Amendment to Waste Disposal Agreement with the County of Orange AGR-5658.A.1 extending the term of the agreement through June 30, 2025 for continued waste importation at the County's landfills. Mayor Tait recorded an abstention on this item. ROLL CALL VOTE to Approve:AYES— 4: (Mayor Pro Tern Kring and Council Members: Brandman, Murray and Vanderbilt). NOES— 0. ABSTENTION— 1: Mayor Tait. Motion Carried. 22. Approve the Agreement for Acquisition of Real Property with the Lisbeth S. Giorgi AGR 9960 Revocable Trust (Fausta Giorgi, Trustee), in the acquisition payment amount of$5,500, for the partial acquisition of property located at 1201 South Sunburst Way for the Ball Road and Sunkist Street Intersection Improvement Project (R/VV ACQ2015-00578). 23. Approve the Agreement for Acquisition of Real Property with the McDonalds Corporation, in the total amount of$60,850, for the acquisition of property located at 119 AGR-9961 West Ball Road for the Ball Road and Anaheim Boulevard Intersection Improvement Project and reimbursement for the relocation of a monument sign, directional sign, irrigation, and fencing (R/W ACQ2015-00605). 24. Approve and authorize the Public Utilities General Manager to execute and take the AGR-9962 necessary actions to implement and administer an agreement, and any other related documents, with Dudek, in the amount of$848,870, to provide design engineering services in connection with the Anaheim South Recycled Water Project. 25. Authorize the Public Utilities General Manager, or designee, to execute and submit any documents required by the State Water Resources Control Board, and to receive 0182 reimbursement from the Underground Storage Tank Cleanup Fund for any remediation of underground storage tank contamination on Anaheim-owned property. P124 27. RESOLUTION NO. 2016-055 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain interests in real properties (City Deed Nos. 11901, 11954, 11955, 11956, 11958 and 11959). City Council Minutes of April 12, 2016 Page 11 of 25 28. RESOLUTION NO. 2016-056 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 Deeds Nos. 11949, 11950, 11962 and 11963). 29. RESOLUTION NO. 2016-057 A RESOLUTION OF THE CITY COUNCIL OF 0175 THE CITY OF ANAHEIM expanding Permit-Eligible Parking District No. 25 and designating Rene Drive from Loara Street to Wilde Street and Wilde Street from Tedmar Avenue to south end of cul-de-sac as "Permit Parking Only" street within Permit-Eligible Parking District No. 25 and determine the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Regulation No. 15061(b)(3). D175 30. RESOLUTION NO. 2016-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM designating Tyler Avenue from Western Avenue to Grand Avenue as "Permit Parking Only" street within Permit-Eligible Parking District No. 41 ("Coolidge Monroe Tyler Polk"). D175 31. RESOLUTION NO. 2016-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting the City of Anaheim Title VI Plan and authorizing its submittal to the California Department of Transportation (Disability and Civil Rights Program). 32. RESOLUTION NO. 2016-060 A RESOLUTION OF THE CITY COUNCIL OF P110 THE CITY OF ANAHEIM vacating bike lane and public utility easements pursuant to California Streets and Highway Code Section 8330, et seq. - Summary Vacation (ABA2015-00325, ABA2015-00326, ABA2015-00327) (Gateway II Apartments; 2100 East Orangewood Avenue). 36. ORDINANCE NO. 6370 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Sections 11.10.150 and 11.10.160 of Chapter 11.10 of Title 11 of M142 the Anaheim Municipal Code (Camping and Storage of Personal Property in Public Areas) and Section 13.08.020 of Chapter 13.08 of Title 13 of the Anaheim Municipal Code (Public Parks - Prohibited Conduct Generally) to give the City Attorney discretion to charge violations of Chapter 11.10 and Section 13.08.020.080 as misdemeanors or infractions (Introduced at Council meeting of March 22, 2016, Item No. 34). (Note: due to an inadvertent clerical error, this ordinance was renumbered to 6370 following the introduction and subsequent adoption, previously numbered 6365). 39. Approve minutes of City Council meeting of February 9, 2016. D114 END OF CONSENT CALENDAR: 14. Adopt the 2016 Legislative Platform that guides the City's support of or opposition to, D116 state and federal legislation and authorize City staff to contact federal and state representatives to advocate for legislative proposals consistent with the goals outlined within the 2016 Legislative Platform (continued from March 22, 2016, Item No. 06). MOTION: Council Member Vanderbilt moved to approve Item No. 14, with the following revisions: replace the word "establish" with "maintain" and include language to collaborate with school districts, page 5, Section 5; seconded by Mayor Tait. City Council Minutes of April 12,2016 Page 12 of 25 ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). NOES— 0. Motion Carried. 17. Approve the Participation Agreement and Provision of Animal Care Services Agreement, AGR 1458.11 in substantial form, with the County of Orange for the construction of a new regional AGR-1458.L animal shelter at the former Tustin Air Base and the provision of animal care services for a ten year period. Mayor Tait stated he had a potential conflict of interest on this item as his firm had worked with the County of Orange this year, turning the gavel over to Mayor Pro Tern Kring and left the dais at 7:40 P.M. Mayor Pro Tern advised she removed this item from the consent calendar to highlight the new animal shelter and expressed her enthusiasm that Anaheim and other Orange County cities would participate in funding the shelter. MOTION: Council Member Brandman moved to approve Item No. 17; seconded by Council Member Vanderbilt. ROLL CALL VOTE: AYES — 4: (Mayor Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt). NOES — 0. ABSTENTION — 1: Mayor Tait. Motion Carried. Mayor Tait returned to the dais at 7:44 P.M. 26. RESOLUTION NO. 2016-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting temporary closures to Caltrans 1-5 offramps for D175 Tinker Bell Half Marathon (May 7 - 8, 2016; Southbound 1-5 at Harbor Boulevard; Southbound 1-5 at Disney Way). Council Member Vanderbilt had pulled this item from the consent calendar to clarify that the S/B 1-5 offramp at Harbor Boulevard was the only ramp to be closed for the half marathon on May 7th while both the S/B 1-5 Harbor Boulevard and SB 1-5 Disney Way ramps were required to be closed on May 8th. He suggested that in future races the time period for closure of the ramps potentially be shortened because the 5K and 10K races were of shorter duration than the half marathon. Ms. Meeks responded that she believed that once the racers were clear of those areas, the ramps were reopened and she would verify that point adding that the ramps must be closed in advance to allow for traffic control to be put in place. MOTION: Council Member Vanderbilt moved to approve RESOLUTION NO. 2016-054, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting temporary closures to Caltrans I-5 offramps for Tinker Bell Half Marathon noting there was one closure on the S/B 1-5 at Harbor on May 7th, and two closures on May 8th on the S/B 1-5 at Harbor and S/B 1-5 at Disney Way, seconded by Mayor Pro Tern Kring. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). NOES— 0. Motion Carried. City Council Minutes of April 12,2016 Page 13 of 25 33. RESOLUTION NO. 2016-061 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the sale of real property to PDC OC/IE LLC, a Delaware Limited Liability Company; finding that said sale is categorically exempt under AGR-9963 the California Environmental Quality Act; and approving and authorizing the execution AGR-9964 and delivery of an agreement for sale of real property and joint escrow instructions and P109 any and all documents necessary to complete the transaction and implement this resolution (Assessor's Parcel Nos. 082-023-78, 082-023-82 and 082-023-84; 6.84 acres generally located on the north side of S. Anaheim Way between S. Anaheim Boulevard to the north and E. Katella Avenue to the south). RESOLUTION NO. 2016-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the sale of real property to LAACO, LTD, a California Limited Partnership; finding that said sale is categorically exempt under the California Environmental Quality Act; and approving and authorizing the execution and delivery of an agreement for sale of real property and joint escrow instructions and any and all documents necessary to complete the transaction and implement this resolution (Assessor's Parcel No. 082-023-80; 0.23 acres generally located on the north side of S. Anaheim Way between S. Anaheim Boulevard to the north and E. Katella Avenue to the south). Determine that the proposed sale of the city-owned property which is the subject of the above-referenced two agreements for sale of real property and joint escrow instructions is within that class of projects which consist of the sale of surplus government property, and that, therefore, pursuant to Section 15312 of Title 14 of the California Code of Regulations, such sale will not cause a significant effect on the environment and is, therefore, categorically exempt from the provisions of CEQA. Mayor Tait remarked Council had discussed the sale of seven acres of property on Anaheim Way at a previous meeting and he had objected at that time citing the need to retain parkland sites for park development. Director of Community Services, Terry Lowe, explained the Anaheim Way site had been originally purchased in 1997 by the Community Development Department at a cost of$2.91 million and the funding source at that time was the Platinum Triangle Park Development fund. The site was an irregularly shaped 7.15 acres located on a one-way freeway frontage road between Katella and Anaheim Boulevard on Anaheim Way. He noted the site could support a softball field with a soccer field overlay and parking and over the years, had been considered for a school, an NBA practice facility, parking for the American Sports Center and a new location for the Anaheim Sports Center that faced losing its lease on two occasions. He stated each use had been strongly considered with conceptual drawings developed for each, with the exception of the school proposal. That concept was abandoned due to the close proximity to the freeway and AQMD advisory's regarding air quality concerns within 500 feet of a freeway, a mandatory standard for school districts and an advisory standard for cities and other jurisdictions. The site was used as a storage and staging yard for construction companies and contractors in the Anaheim Resort area generating about $100,000 for the Platinum Triangle Park Development fund. Mr. Lowe explained with the improving economy, unsolicited offers began to be submitted to his Department for commercial and industrial uses, similar to the businesses around the site. The Community Development Department subsequently conducted an assessment of the property that resulted in an appraisal of$7.1 to $8.9 million dollars. He stated that given the site access City Council Minutes of April 12,2016 Page 14 of 25 limitation, the relatively small return of one joint sports field, and the air quality concerns related to its close proximity to the freeway, staff revaluated developing a park site at this location. After consultations with City Manager's Office, the Community Development and Community Services departments jointly recommended that an RFP be issued to formally gauge the private sector interest in acquiring this property for a use that was compatible with its surroundings. The RFP resulted in a staff recommendation which was before council this evening, to sell three parcels of this property to the Panatonni group at a cost of$10.2 million, to be developed into office buildings. He added that a small frontage parcel of .23 acres was recommended to be sold to the adjoining storage business for parking purposes as Panatonni was not interested in that portion of the property. Mr. Lowe emphasized that although only the purchase price plus interest (about $4 million) was required to be returned to the Platinum Triangle fund, staff recommended that the entire sales amount be returned based on previous comments of the City Council. Mayor Tait stated the Platinum Triangle, an area that was anticipating 25,000 more people on build out, had only four acres of park land and for that reason he did not want this land sold, regardless of who the developer was, because once sold, it was gone forever. Regarding the sale of the .23 acres, he asked why the sale price seemed lower than it should be, asking if there was an appraisal done. Mr. Lowe responded that it was appraised for its "joinder" value because as a stand-alone site, it was not feasible given the configuration of the site. Mayor Tait added that he appreciated the monies going back to the Park fund, but on principle he would vote against the item. Mr. Lowe agreed that the city was under-parked, however he felt confident with construction coming back from the recession that he could add significant acreage to the park system as well as improve three parks identified in the environmental impact report. Council Member Vanderbilt stated he had read a recent article focusing on the city of Glendale's proposal to get federal funds to build a park on top of a freeway with trails and other amenities, asking if staff could explore that option for future discussion of parkland. Mayor Tait concurred, and added that Anaheim was an urban city, had several parks and playgrounds adjacent to freeways in use, and this land should be developed given the funds available and the fact that property around the Platinum Triangle was going for $4 to $5 million an acre. Council Member Brandman pointed out those schools located close to freeways were built some time ago before. In addition, the Community Services Department had a decade to try to figure out a usage for this specific site and AQMD had advised that it not be developed into a park. He approved returning the full amount of the purchase price to the Platinum Triangle Park fund and to proceed with finding a more suitable space for the future. Council Member Murray agreed, pointing out the space was less than 100 feet from the freeway and the AQMD's advice was for the protection of children and family and on that basis she would not support a park and would rather see the funds invested in land that was more appropriate and accessible to families. Mayor Tait emphasized this was an opportunity to put two needed sports fields in play and pointed out there was no new land near Ponderosa or Boysen Parks. Mr. Lowe responded the Department was proposing to add eight acres to Boysen Park now that the tree yard had been released from the Successor Agency, another 20 acres at Ball Road Basin from the Orange County Water District as well as a commitment from Southern California Edison for two acres at Cerritos and State College, a total of 30 acres of new land. To the question, did the city own City Council Minutes of April 12, 2016 Page 15 of 25 those parcels, Mr. Lowe responded the eight acres were owned by the city and Anaheim had access to the two acres at Cerritos. He stated staff was hopeful to be able to work out the Ball Road basin site and to count on a school located in the Platinum Triangle area that would have sports fields that could be used jointly for community use. MOTION: Council Member Murray moved to approve: • RESOLUTION NO. 2016-061, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the sale of real property to PDC OC/IE LLC, a Delaware Limited Liability Company; finding that said sale is categorically exempt under the California Environmental Quality Act; and approving and authorizing the execution and delivery of an agreement for sale of real property and joint escrow instructions and any and all documents necessary to complete the transaction and implement this resolution (Assessor's Parcel Nos. 082-023-78, 082-023-82 and 082-023-84; 6.84 acres generally located on the north side of S. Anaheim Way between S. Anaheim Boulevard to the north and E. Katella Avenue to the south); and to approve • RESOLUTION NO. 2016-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the sale of real property to LAACO, LTD, a California Limited Partnership; finding that said sale is categorically exempt under the California Environmental Quality Act; and approving and authorizing the execution and delivery of an agreement for sale of real property and joint escrow instructions and any and all documents necessary to complete the transaction and implement this resolution (Assessor's Parcel No. 082-023-80; 0.23 acres generally located on the north side of S. Anaheim Way between S. Anaheim Boulevard to the north and E. Katella Avenue to the south); and to • Determine that the proposed sale of the city-owned property which is the subject of the above-referenced two agreements for sale of real property and joint escrow instructions is within that class of projects which consist of the sale of surplus government property, and that, therefore, pursuant to Section 15312 of Title 14 of the California Code of Regulations, such sale will not cause a significant effect on the environment and is, therefore, categorically exempt from the provisions of CEQA; seconded by Mayor Pro Tern Kring. 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. 34. RESOLUTION NO. 2016-063 A RESOLUTION OF THE CITY COUNCIL OF D154.3 THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees in classifications represented by the Anaheim Police Association. Jason Motsick, Human Resources Department, reported the general terms of this agreement provided fixed wage increases of 10 percent over four years with a potential additional four percent in revenue sharing. The wage increases were as follows: 1.5 percent effective January 1, 2016; an additional 1.5 percent in July 2016; 3 percent effective July 2017; and 4 percent in January 2019. He stated the additional four percent in revenue sharing would happen in years three and four based on revenues collected in excess of budgeted amounts. Additionally, the agreement provided for city contribution of$546 over 26 pay periods for each APA representative member into their active 457 account. The agreement also provided for a modification of bilingual pay from a percentage base to a flat dollar rate and also required all members represented by the APA to participate in physical ability test on an annual basis. The City Council Minutes of April 12, 2016 Page 16 of 25 overall cost of the agreement through the term was approximately $13.9 million with an increase of$616,000 in FY 15/16 budget. Mayor Tait restated police officer wages would increase by $13.9 million at the end of the term so going forward that would be the cumulative increase with Mr. Motsick confirming and pointing out the additional four percent was not calculated in the $13.9 million because it would be covered thru excess budgeted amounts. Mayor Tait asked what that four percent figure would be with Mr. Motsick replying that one percent in FY 2015/16 was about $630,000 and that figure would mean an additional $1.8 to $2 million in revenues. Mayor Tait responded that it was difficult to fix a dollar amount to the job that police officers do but in the end it came down to what the city could afford. The higher the pay, the more the cost per person increased which meant the less officers the city could have. He stated Anaheim's pension liability was a negative net worth of about $450 million and in his opinion must be addressed. He indicated the first option the city could address were pensions for new employees, by taking advantage of the state's relief proposal and offer a 60 percent pension for new hires rather than the current 82 percent pension. By not doing this, it would cost Anaheim hundreds of millions of dollars in the future and would not ensure that current employees' pensions were protected and for that reason, he would vote no on this agreement. MOTION: Council Brandman moved to approve RESOLUTION NO. 2016-063, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees in classifications represented by the Anaheim Police Association, seconded by Council Member Murray. DISCUSSION: Mr. McLeod, Human Resources Director, stated there were a few other elements that he respectfully asked be considered. He stated the city was one of four jurisdictions in southern California through employee negotiations whose employees were now paying 12 percent toward the total pension, more than the required 9 percent by law. And currently in the public safety unit, the retirement plan was funded at 79 percent level and from an actuarial standpoint, looking at retirements over the next 30 years, that was a healthy funding level. His third point was that PERS through some of the changes they made in their actuarial assumptions, required the employer rate to be higher, but there was also a shorter term hit, and in the long-term it would help with the city's PERS rates. He also detailed recruitment and retention issues. Council Member Murray added that Council had budgeted for the last three years to restore police and fire personnel to prerecession figures with police adding 10 officers a year for four years to reach the goal of getting back to 400 officers. She noted the hurdle had not been the budget; it was the fact that finding qualified personnel was difficult especially with Anaheim's high standards. She confirmed that officers had gone without pay raises since 2009 and that each detail of this agreement had been thoroughly negotiated and that Mayor Tait had supported the 3% at 50 pension at the time. Mayor Tait responded that at that time there were protections in place, advising that if the city ever had to pay more than seven percent of the salary in pension, the employee would pick up the remainder, and that was why he voted on that issue and in addition, it was a time when PERS was super funded and anticipated to be super funded for 14 years. That safety gap, he stated, worked and when it came up for an amendment, he voted against it, although it passed City Council Minutes of April 12, 2016 Page 17 of 25 and the protection was taken away. He added he did not like voting against this contract, and did so only to address a $450 million pension debt to protect existing employees' pensions. Council Member Murray stated that pension liability had gone from 64 percent funded to 79 percent funded, a huge improvement in four years and the city was making steady increases. She added that this contract was negotiated by professional staff on both sides of the table; it was fair, appropriate and as aggressive as it could be without further hampering the ability to hire personnel. Mayor Pro Tem Kring concurred, remarking officers had gone through the recession with no pay raise since 2009 and she supported the contract and the ability to enhance recruitment efforts. Mayor Tait responded that he supported more police officers as well, but pointed out the higher the pay and corresponding pension benefits, the less officers that would be hired. He asked Mr. McLeod if Council should be concerned about the $450 million pension debit with Mr. McLeod responding that given the dollar benefit for new employees, the actuarial changes PERS had made in some of the assumptions and the progress made toward reducing that deficit, his answer was no, that the city should not be overly concerned with the pension liability given the changes put in place and the timetable PERS implemented for the city to continue to fully fund those plans over a period of years. Mayor Tait stated his disagreement. RESTATED MOTION: Council Member Brandman moved to approve RESOLUTION NO. 2016-063, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms and conditions of employment for employees in classifications represented by the Anaheim Police Association, seconded by Council Member Murray. ROLL CALL VOTE: AYES —4: (Mayor Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt). NOES — 1: Mayor Tait. Motion Carried. 35. RESOLUTION NO. 2016-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms D154.6 and conditions of employment for employees in classifications represented by the Service Employees International Union, Local 1877. Mr. Motsick, Human Resources Department, reported this resolution would approve a Memorandum of Understanding for the Service Employees International Union, Local 1877. The terms of the MOU were effective January 7, 2016 through July 6, 2017 and covered 569 employees working part-time at the Anaheim Convention Center. Major provisions of the agreement included wage increases of 2 percent effective July 2016, and 2 percent effective July 2017. He noted the agreement also provided wage increases for the lead nurse and nurse classifications based on market competitiveness and part of the agreement included an increase of employee retirement contributions from 6.5 percent to 12 percent effective June 2017. He stated there was no impact to the general fund or the Convention Center enterprise fund during the current fiscal year and the overall cost of the agreement through July 6, 2017 was approximately $276,000 and would be included in a proposed budget for Council consideration in June. Council Member Brandman asked if this contract addressed what other collective bargaining units had done over the last round of bargaining in taking the PERS contribution up to 12 percent to conform across the board with all units. Mr. Motskick responded in the affirmative, that the total burden in pension was a 1.5 percent hit to the employee. He added that about one City Council Minutes of April 12,2016 Page 18 of 25 third of their membership was in the PERS formula and 2/3 did not participate and used a 457 retirement contribution plan instead. MOTION: Council Member Brandman moved to approve RESOLUTION NO. 2016-064, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a memorandum of Understanding establishing terms and conditions of employment for employees in classifications represented by the Service employees International Union, Local 1877, seconded by Mayor Pro Tern Kring. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). NOES— 0. Motion Carried. 37. ORDINANCE NO. 6366 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Table 8-C (Temporary Uses and Structures: Commercial Zones) of Section 18.08.030 (Uses) of Chapter 18.08 (Commercial Zones) of Title 18 (Zoning Code) of the Anaheim Municipal Code to permit the sale of fireworks as a Temporary Use within the "C-G" General Commercial Zone, the "C-NC" Neighborhood Center M142 Commercial Zone and the "C-R" Regional Commercial Zone of the City located on either side of Brookhurst Street and on all similarly zoned properties located west of Brookhurst Street subject to the requirements of Section 6.40.030 (Safe and Sane Fireworks Prohibited) of Chapter 6.40 (Fireworks) of Title 6 (Public Health and Safety) of the Anaheim Municipal Code, based upon the finding and determination that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a "project", as defined in Section 15378 of the CEQA Guidelines (Zoning Code Amendment No. 2016-00132) (Introduced at Council meeting of March 22, 2016, Item No. 35). ORDINANCE NO. 6367 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Sections 6.40.010 and 6.40.100 of Chapter 6.40 (Fireworks) of Title 6 (Public Health and Safety) of the Anaheim Municipal Code relating to the sale of safe and sane fireworks, based upon the finding and determination that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines and is not a "project", as defined in Section 15378 of the State CEQA Guidelines (Introduced at Council meeting of March 22, 2016, Item No. 35). Council Member Vanderbilt stated he wanted an opportunity to vote on this item separately and had pulled it from the consent calendar for that purpose. Mayor Tait remarked this item addressed the city's plan to sell fireworks at two locations, using a voucher system for charitable contributions. He believed when this measure passed by the voters, they had in mind a traditional model of firework sales where different charities set up booths run by volunteers and generated more in sales; he would be voting against this item. MOTION: Council Member Brandman moved to adopt Ordinance No. 6366 and Ordinance 6367; seconded by Mayor Pro Tern Kring. City Council Minutes of April 12, 2016 Page 19 of 25 DISCUSSION: Council Member Vanderbilt remarked there had been a proposal that came up to identify a voucher number instead of a flyer, asking if anyone would like to incorporate that into the motion. Council Member Brandman asked staff to weigh in on this suggestion. Greg Garcia, Deputy City Manager, remarked staff was looking at this and other strategies that would make it easier for the public to buy on behalf of nonprofits. He would consult with Anaheim Arena Management as to the best way to make this work, remarking the process was complex including selection of a vendor for the fireworks but he believed the new strategies would increase participation and make it easier for the public to buy on behalf of the nonprofits. Mayor Pro Tern Kring remarked unless every nonprofit that would like to participate was incorporated into the strategies, she would not support the item, asking why the public could simply not state they would like this purchase to go towards Cops4Kids program. Mr. Garcia responded that was one of the issues staff was trying to address and this happened often during last year and was allowed. He added there would be a number of different strategies employed. Ms. Kring emphasized she wanted this process to be clear to all and easy for the public to identify a charity. Mr. Garcia responded that verbal identification was acceptable last year and he believed it would continue this year in addition to showing an email or identification on a phone; signage would be placed in both locations reminding the public to mention their nonprofits when they purchased. He added that through education and timing, he was confident of a major improvement in the process and along with that staff, was talking to partners about increasing the amount that went into the Anaheim Community Foundation for distribution back to the nonprofits. 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. 38. ORDINANCE NO. 6368 (INTRODUCTION)AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim C28o Municipal code relating to zoning (Reclassification No. 2015-00287; DEV2015-00110) (2585 West La Palma Avenue; rezoning property from industrial zone to general commercial zone). MOTION: Mayor Pro Tern Kring moved to introduce Ordinance No. 6368, seconded by Council Member Brandman. DISCUSSION: Council Member Vanderbilt indicated members of the public had questioned why an appraisal of the property was not available upon request, asking staff to clarify. Public Works Director Natalie Meeks explained the appraisal was not available to the public until the land transaction was concluded. Mr. Houston, City Attorney, added that under law, the appraisal would be available for public inspection upon request just prior to land transaction being taken. Mayor Tait added for the transparency purposes, he could not think of a compelling reason to not make the appraisal public; Ms. Meeks indicated staff had no objection to providing both appraisals. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). NOES— 0. The Ordinance was introduced. City Council Minutes of April 12, 2016 Page 20 of 25 40. Consider appointments to the Sister City Commission to fill two unscheduled vacancies, terms ending June 30, 2018. B105 Sister City Commission APPOINTMENT: Matthew Hicks (unscheduled vacancy of Lori Farrow, term ending June 30, 2018) Mayor Pro Tern Kring nominated Matthew Hicks to the Sister City Commission who was unanimously appointed. APPOINTMENT: Taline Cook (unscheduled vacancy of Christine Locke, term ending June 30, 2018) Council Member Vanderbilt nominated Taline Cook to the Sister City Commission who was unanimously appointed. PUBLIC HEARING: 41. This is a public hearing authorizing a one year extension to Urgency Ordinance No. 6343, which imposes a moratorium, with certain exceptions relating to short term rentals within the city (expiring on May 3, 2017). ORDINANCE NO. 6369 (ADOPTION)AN INTERIM URGENCY ORDINANCE OF THE CITY OF ANAHEIM extending for one year the effective period of Urgency Ordinance No. 6343, which imposes a moratorium, with certain exceptions, on the issuance or renewal of use permits, variances, building permits, business licenses or any other entitlements or permits providing for the use, commencement, establishment or operation of short-term rentals within the City of Anaheim pursuant to California M142 Government Code Section 65858 (A copy of the full text of the proposed ordinance is available for review in the Office of the City Clerk). Determine that the interim ordinance extending the effective period of Urgency Ordinance No. 6343, is not subject to the California Environmental Quality Act(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a project, as defined in Section 15378 of the State CEQA Guidelines, approve the staff report as the "written report" required by Government Code Section 65858 and direct the Planning Director, or his designee, to publish on the City's website. David Belmer, Planning Director, reported this item related to the proposed extension of an urgency ordinance that established a moratorium on the issuance of new permits for short-term rentals (STRs) in the city of Anaheim. He reported the presence of STRs predated the adoption of Anaheim's first ordinance and began to proliferate in 2011/12 as a result of an explosion in a shared economy, similar to circumstances in other cities. At this point in time, STRs were down to about 365, either permitted or operating pursuant to pending applications. He explained, Anaheim subsequently adopted an ordinance that regulated those uses to ensure compatibility with residential neighborhoods and about one year ago, he stated, the city began to receive a number of complaints regarding the presence of STRs in neighborhoods concerning, noise, parking, traffic and many of the concerns Council heard this evening. As a result, City Council adopted an urgency ordinance on September 15, 2015 that was extended on October 20, 2015 City Council Minutes of April 12,2016 Page 21 of 25 and would currently expire in May 2016. Council's direction to staff at the time was to engage stakeholders in outreach, residents who felt they were negatively impacted by STRs, and the operators themselves. Those outreach efforts were done and a series of public workshops were conducted which ended in the formation of a citizen advisory committee of owner/operators and residents that met several times over the course of several months. He noted those efforts culminated in a workshop before council this February during which staff presented recommendations. He added there were divergent views that were discussed extensively as well as commonalities identified, but in essence, the residents felt STRs were not compatible in single family neighborhoods and should be not only banned, but phased out; operators felt they could be compatible through enforcement and better operational conditions. Staff's recommendations at the February 23rd workshop were to make significant modifications to the current ordinance, specifically making it easier to enforce "bad" operators; i.e., raising the minimum age limit for those who rented STRs, lower occupancy levels, creating provisions that prevented the enlargement of homes to where they were no longer compatible to neighborhoods, and create categories of violations which would include revocation of the operating permit and once revoked, it could not be reissued. As part of staff recommendation, Mr. Belmer proposed there be a ban on new STRs in single family and multi-family residential neighborhoods, but that ban did not include amortizing out the existing STRs. At that workshop, he stated, Council directed staff to proceed and the Mayor made a motion that an ordinance option be prepared that would include staff's recommendations as well as the potential of amortizing out or phasing out existing STRs. He emphasized staff was currently doing that and hoped to return in June or July with those options. He added that it was understood how important this issue was to the community and staff was working towards bringing this back at the second meeting in May or the first meeting in June pointing out there were a number of legal issues and complexities associated with finalizing those two ordinances. In the meantime, the rules would continue to be enforced. Regarding the moratorium, staff was requesting the moratorium be extended for a full year which was allowable under the law and ensure there would be no new applications for STRs in the city. Permits could be renewed as currently allowed by way of change of ownership, but no new applications would be accepted and staff would continue to process any application received before the moratorium was first adopted on September 15, 2015. He added that code enforcement had been successful in nighttime and weekend enforcement, a hotline and email address for STR concerns were in place and code enforcement generally responded within 15- 30 minutes. Mayor Tait stated that Option 1 which used the word "ban" was not the correct word to use, asking that it be reworded for clarification. Option 2 was his proposal, to ban all short term rentals with a phase out of existing STRs. Mr. Belmer explained when the ordinance returns, the legal term was amortization of existing and banning of all new short term rentals and the only difference between the two options was the existing short term rentals would be amortized out. Mayor Pro Tern Kring inquired if an operator wanted to take a permitted STR out of a residential area and move it to a commercial or mixed use zone, was that possible. Mr. Belmer responded that issue came at the workshop and staff was working with the city attorney on how it might implement such a provision, although he pointed out, his priority was to bring back the ordinances as quickly as possible and if the legal complexities and practical issues were not resolved by the time the two ordinances were completed, he would like to return to Council with City Council Minutes of April 12,2016 Page 22 of 25 amendments as a second phased option for the Council to consider. Ms. Kring asked what amortization would involve with the second option with Mr. Houston, City Attorney, stating tonight was for discussion on the moratorium and the specific question raised was a way governmental agencies phased out uses that were legal at the time but were no longer legal, a way to afford those with vested property rights the ability to recover investment backed expectations. Mayor Tait opened the public hearing for comments. Bob Donelson, Sherwood Village, supported the extension on the moratorium because it halted the expansion of STRs in the city. He emphasized the May 2014 ordinance was approved with little public input and opened the door for an expansion of STRs in Anaheim. He wanted a complete ban on STRs and to cease operations of all existing STRs immediately as he believed those owner/operators had recaptured their investment already. He stated the mini-hotels had been operating without normal safety or health regulations, no concern for ADA compliance and had negatively impacted residents, home sales, neighborhood schools and the hospitality industry. Mike Connelly remarked that he invested in several STRs and complied with every city request. He believed STRs was the way the up and coming generation was going to travel and the fact they generated tax revenues, visitors shopped locally and ate in restaurants benefitted the entire economy. He added there were less than 400 STRs operating in Anaheim while in Orlando, Florida there were 7,000 with a functioning ordinance that allowed residents and visitors to co-exist. He was confident both sides could work together and arrive at a solution that would work for all. Sam Olsen, STR owner, remarked some of his neighbors at first were opposed to his STR however, once they became friends and recognized how hard he worked, they had now become supporters. He stated the majority of his visitors coming to Anaheim wanted to vacation together and if they had to choose between an STR and a hotel, they would choose elsewhere to vacation. Tal Price, STR owner, stated both the STR owners and the residents wanted to protect the communities of Anaheim and he felt that could be done through staff's recommendations that had come from months of study and outreach, becoming experts on this issue. He pledged to continue in good faith and count on the city to work with him honorably and fairly. He agreed that reform was needed and believed neighborhoods could be protected through the recommendations identified by staff. He added many truths had been shared by residents but there were exaggerations and untruths as well, and urged Council to find a solution that worked for everyone. An unidentified speaker opposed STRs stating they should not have been legitimized in the first place and diminished the quality of life of residents. Philip Schwartze, Planning consultant, explained the Kraemer building had a valid conditional use permit to operate its units as STRs and since there was discussion on no renewals for STRs, he wanted to confirm the building was allowed to lawfully operate while the moratorium was going on despite the fact that no renewal was approved. Mayor Tait remarked he would ask that question of staff during the hearing. City Council Minutes of April 12,2016 Page 23 of 25 Luisa Lam, Sherwood Village, supported Option 2 to extend the moratorium and returning with an amended ordinance. She would also be providing statistical data on the Sherwood Village STRs, revealing how profitable they were. She stated these investors could not be controlled, harassed existing residents by indicating they would convert the units into Section 8 housing or half-way housing, and were effectively destroying neighborhoods. She supported an ordinance with a ban on all STRs of less than 30 days, a ban of STRs of single rooms or partial units if the owner was not living there, a ban on advertising by any broker or website of rentals that did not comply, and the ability to have private right of legal action to allow residents address violations in a court of law. She wanted this to end now and worried that with summer coming, the impacts would be worse. Mark Daniels, resident, opposed STRs, stating they were more appropriate for the Platinum Triangle area. Pam Donelson, Sherwood Village, stated she was in favor of extending the moratorium with Option 2, adding that the STR owners had already made their investment back and statistical data would be provided to prove that statement. Jose Moreno, District 3, remarked he now had two STRs in his immediate neighborhood and seven overall in the area, negating the promise the city made to invest in neighborhoods. He wanted the integrity of the neighborhoods restored and families not forced to act as watchdogs, that STRs be banned now, businesses be located in the zones there were intended to be in, and that the city start focusing on the children of Anaheim. Mike Robbins presented police reports related to STR operations earlier and had attended meeting after meeting providing photos and reports about the impacts of STRs. He supported the moratorium but wanted the ordinances to return in May or as soon as possible so residents could get on with their lives. Danny Robbins stated Ryan McIntosh, Talmadge Price, and Sam Olsen were part of a group of STR owner that singlehandedly guaranteed the demise of STRs in Anaheim with their unethical treatment of neighbors and their inability to control their operations. He believed that a shared economy was the future of tourism but that involved renting out a room in a house occupied by the owner, not an STR. He stated the STR issue in Anaheim evolved into an uncontrollable business that distressed neighbors and was not enforced properly. He stated it was time for elected officials to have the courage to do what is best for the residents of Anaheim and ban STRs in the city. Martin Lopez stated he worked in the hospitality industry all his life and enjoyed meeting tourists and people from other parts of the world but did not want to come home and do the same thing. He wanted to enjoy the peace and tranquility of his home, asking Council to look over the 1,100 signatures on the petitions he submitted, voters who wanted this situation to end and if those weren't enough signatures, thousands more would be gathered in support of a ban. Mivette Judeh stated STRs were terrible for the integrity of neighborhoods, terrible for the residents, and affected schools, workers, and the hotel industry and Council must take action to end them. To the STR owners, she stated there were two options for them, the STRs could be leased out which would still earn money on their investments or sell them. City Council Minutes of April 12,2016 Page 24 of 25 Jeanine Robbins stated Sam Olsen owned 35 short term rental properties, adding that just one of those properties last year incurred 18 police reports in a six month period. Ryan McIntosh was responsible for the destruction of Kaleidoscope which was now being marketed as Funtierland and Tal Price owned either 15 or 16. She spoke in favor of Option 2 with a quick phase out period adding that code enforcement needed to be available from Saturday am to Sunday while the STR operations are still going on, adding there needed to be 24 hour coverage for the residents. Victoria Michaels remarked the reason Anaheim was in this predicament was because it was so easy for STR owners to buy homes and convert them into vacation rentals with the help of staff. Now it was time for the city to undo what had been done, ban new STRs in single family residents and restore the neighborhoods. Fred Cornejo suggested not renewing the annual permits or renewing them with the stipulation the business operation must be moved from a residential zone to a commercial zone Cynthia Ward, resident, remarked the needs of tourists and the needs of residents were different and despite being a large urban city, people still cared about the sense of community enough to attend council meetings over and over again to make their voices heard. She recommended a phase out of existing STRs so that property values did not plummet overnight. For those STR owners threatening to turn their rentals into half-way houses, she asked staff to tighten up prohibitions against half-way houses moving into residential neighborhoods before it became a problem. With no other comments offered, Mayor Tait closed the public hearing. He then asked about the Kraemer building and Mr. Schwartze's question regarding renewals. Mr. Belmer responded the Kraemer building was a unique property, unlike any others in Anaheim, and was granted a conditional use permit for STR operations by the Planning Commission. Staff was working with Mr. Schwartze and the City Attorney's Office to determine whether or not the property was the subject of the moratorium and if it is determined not to be, the developer would be able to renew their STR permits. Council Member Brandman remarked there had been a robust conversation prior to opening the public hearing and moved to adopt Ordinance No. 6369. Mayor Tait asked staff to use all diligence to complete the ordinances by May. MOTION: Council Member Brandman moved to adopt: • ORDINANCE NO. 6369 , AN INTERIM URGENCY ORDINANCE OF THE CITY OF ANAHEIM extending for one year the effective period of Urgency Ordinance No. 6343, which imposes a moratorium, with certain exceptions, on the issuance or renewal of use permits, variances, building permits, business licenses or any other entitlements or permits providing for the use, commencement, establishment or operation of short-term rentals within the City of Anaheim pursuant to California Government Code Section 65858 and to: • Determine that the interim ordinance extending the effective period of Urgency Ordinance No. 6343, is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a project, as defined in Section 15378 of the State CEQA City Council Minutes of April 12, 2016 Page 25 of 25 Guidelines, approve the staff report as the "written report" required by Government Code Section 65858 and direct the Planning Director, or his designee, to publish on the City's website, seconded by Mayor Pro Tern Kring. DISCUSSION: Council Member Vanderbilt asked if any thought had been given to consider a shorter moratorium. Michael Houston, City Attorney, responded that there could be a shorter moratorium, and staff had considered it, however, there was only this one chance for a moratorium and staff elected to ask for the longest period allowed by law, however had every intention to return sooner. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Brandman, Kring, Murray and Vanderbilt). NOES—0. Motion Carried. REPORT ON CLOSED SESSION ACTIONS: None COUNCIL COMMUNICATIONS: Council Member Brandman requested the following agenda items for the April 26 agenda: a certificate of recognition to be presented to Canyon High School student, Ethyn Erwing, for his wrestling success and an action item to terminate the existing Tennis Center Agreement at Boysen Park, reinstitute management of the facility to Community Services, and provide appropriate budget allocations to increase the Community Services' budget to carry out the administration and staffing of the site. Council Member Murray requested the meeting adjourn in memory of Morris Greenberg, Anaheim resident. She highlighted the unveiling of the K-9 monument at La Palma Dog Park and announced the Boys and Girls Club Gala on April 16 at the Angel's Stadium. She spoke of the monument dedication in Washington, DC honoring the women equality movement and requested a resolution condemning the hate speech and rhetoric of Presidential Candidate Donald Trump. Council Member Vanderbilt reiterated his earlier agenda request regarding storage locations for the Anaheim Fall Festival and Halloween Parade float and displays. He also requested policy positions taken by the city be included in the 2016 Legislative Platform, and announced the Landlord Rights Workshop on April 21 at the Downtown Community Center. Mayor Pro Tern Kring spoke of the West Nile virus, her participation in the 5K-10K Ronald McDonald Run-Walk Fundraiser and the 10th Annual Health Fair. She also announced the Twila Reid Farmer's Market to be held on May 4. ADJOURNMENT: At 10:35 P.M., Mayor Tait adjourned the meeting in memory of Morris Greenburg. -sp-.tfully submitted, glil, , AS,'. Linda N. Andal, CMC City Clerk