08/09/2016ANAHEIM CIN COUNCIL REGULAR AND
REGULAR ADJOURNED MEETING OF AUGUST 9, 2016
The regular meeting of August 9, 2016 was called to order at 3:00 P.M. and adjourned to 4:00
P.M. for lack of a quorum. The regular adjourned meeting of August 9, 2016 was called to order
at 4:05 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 August 5, 2016.
PRESENT: Mayor Tom Tait and Council Members: Lucille Kring, Kris Murray, Jordan
Brandman, and James Vanderbilt.
STAFF PRESENT: City Manager Paul Emery, Acting City Attorney Kristin Pelletier, and City
Clerk Linda Andal.
ADDITIONS/DELETIONS TO CLOSED SESSION: None.
PUBLIC COMMENTS — CLOSED SESSION ITEMS: None.
CLOSED SESSION: At 4:07 P.M., Mayor Tait recessed to closed session for consideration of
the following items:
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code)
Name of Case: Coalition of Anaheim Taxpayers for Economic Responsibility v. City of
Anaheim, Orange County Superior Court Case No. 30-2013-00695342
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code)
Name of Case: Kettler v. City of Anaheim, Orange County Superior Court Case No. 30-
2016-00829434
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code)
Name of Case: Deckard v. City of Anaheim et al., Orange County Superior Court Case
No. 2015-00819021
4. 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. 30-2014-00751291-CU-
OE-CJC
At 5:16 P.M. the City Council session was reconvened.
INVOCATION: Pastor Roger Sullivan, Anaheim Christian Center
FLAG SALUTE: Council Member Kris Murray
City Council Minutes of August 9, 2016
Page 2 of 21
PRESENTATIONS: Recognizing Anaheim Students participation in the Anaheim Active
Transportation Leadership Institute
Rebecca Cousins, Alliance for a Healthy Orange County (AHOC), reported her organization was
a county -wide coalition representing 15 health care organizations, community-based
organizations, and universities whose mission was to champion policy strategies that resulted in
advanced health outcomes and reduced health disparities for Orange County residents. She
shared California Walks, funded by AHOC, recruited youth leaders to participate in programs
where high school students learned about transportation planning, design, and policies as well
as how to work with city officials and other agencies. Tony Dang, California Walks introduced
the Anaheim students who participated in the 6 -week training program.
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Proclaiming August 12, 2016, as International Youth Day
At 5:25 P.M., Mayor Tait called to order the Anaheim Public Financing Authority, Anaheim
Housing and Public Improvements Authority, and Anaheim Housing Authority (in joint session
with the City Council).
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS (All agenda items except public hearings): Prior to receipt of public
comments, a brief decorum statement was provided by City Clerk Linda Andal.
Yvonne Washington, Caltrans, provided handouts to Council describing the safety lighting
project on the 91, 55, and 57 freeway interchanges in Anaheim, explaining the project would be
constructed in mid to late 2017 to install high mast lighting to reduce the number of collisions
and improve operations for up to 321,000 vehicles traveling during peak hours. She explained
the entire project would cost $5.1 million, to be paid through a combination of State
Transportation Improvement Program and Federal Transportation Improvement Program
funding. Information about the project will be provided to the public by a mailed postcard,
changeable message boards, and the Caltrans website.
Cecil Jordan Corkern, Outreach Homeless Ministries, read from the Bible and commented on
the Star Wars development.
Tom Lindsey, Mayor of Yorba Linda, reported he had met with the management team of the
Anaergia Anaerobic Food Processing Plant and with concerned citizens, and requested Council
consider adding 30 days to the public review period for the project.
Andrea Yamasaki, Orange Unified School District (OUSD) Trustee Area 1, asked Council to
support the proposed OUSD bond measure. She noted Canyon High School was over 40 years
old, had never been fully renovated and would receive over $172 million through the bond with
the potential for an additional $15 million in state matching funds.
Trevor O'Neil, Orange Chamber of Commerce, spoke in favor of the proposed resolution for the
OUSD facility improvement bond measure, citing poor conditions at Canyon High School.
Garrett Hartfelder, Crescent Elementary student, expressed his support for the OUSD facility
improvement bond safety measure to create a safer school for him and his brother.
City Council Minutes of August 9, 2016
Page 3 of 21
Blake Hartfelder, Canyon Rim Elementary student, encouraged the Council to support the
OUSD facility and classroom safety measure, believing it would make the high schools safer,
and offered to meet with Council to discuss ways to fix the schools.
Amy Chase thanked Council for their support of the 2016 OUSD school bond measure on the
November ballot, referencing the unanimous support of the OUSD school board and explaining
the need to ensure the schools were made safe and updated to 21St century needs.
R. Joshua Collins, Homeless Advocates for Christ, read from the Bible, stated his disagreement
with City actions toward the homeless community, and reiterated his request for the City to fly
the Christian flag.
Mark Daniels, District 1, expressed his interest in serving the city as a member of the City
Council.
Daniel Gonzalez, Anaheim Active Transportation Program participant, expressed concerns with
the intersection of Anaheim Blvd. & Sycamore St. and requested a crossing guard at that
location before and after school to help students cross safely.
Council Member Murray requested the City Manager contact the Anaheim Union High
School District about the traffic study and to add the intersection into the crossing guard
program.
Alexandra Retana, Anaheim High School student, described issues she had experienced at
Sycamore Street and Citron Street and requested high -visibility cross walks with yellow or white
striping.
Bryan Mendoza, Anaheim Active Transportation Leadership Institute participant, described his
experiences walking throughout the city, requested separate times for pedestrians to cross and
cars to turn at Sycamore Street, and suggested walking and biking could lower obesity rates in
the city.
Angel Martinez, Anaheim Active Transportation Leadership program participant, recommended
speed bumps and additional lighting for Buttonwood Street between Sycamore Street and La
Palma Avenue to increase safety.
Izarael Hernandez, Anaheim Active Transportation Leadership participant, thanked the
organizers for the program and requested additional regulation of the Citron Street and Cypress
Street intersection through installation of a crosswalk to increase student safety.
Sergio Nieto, Anaheim High School student, remarked he had learned a lot from the Active
Transportation Leadership Institute and asked Council to address the lack of a sidewalk near
the 7-11 on La Palma Avenue and East Street.
Mayor Tait provided a brief overview of the Council meeting process explaining why the
items the students raised could not be acted upon and instead directed to the City
Manager and Public Works Department and thanked the students for their feedback.
Kathleen Rodriguez requested a site-specific Environmental Impact Report (EIR) for the
proposed Anaheim Sustainability Anaerobic Digestive Facility at 1300 Lakeview Ave., noting the
current Mitigated Negative Declaration does not include additional schools and homes in the
City Council Minutes of August 9, 2016
Page 4 of 21
vicinity of the site in a flood and earthquake zone, and recommended the project be relocated to
a different site.
Judy Morton, speaking to the Anaheim Sustainability Center, requested an extension of the
comment period from 30 days to 60 days, asked for a site-specific EIR, and expressed concerns
about odors and decreased property values.
In response to questions from Mayor Tait, City Manager Paul Emery explained the item
was not on the current agenda and could not be acted upon. He reported the Planning
Commission was scheduled to hold a workshop on August 22nd with a public hearing at
a later date, and the end of the comment period for the mitigated negative declaration
was mid-August; however comments would continue to be accepted and considered
until the public hearing. David Belmer, Planning & Building Director, explained it was
difficult to assess whether the comment period could be extended as the project
applicant was entitled to reasonable and timely processing of their application under the
California Permit Streamlining Act with Acting City Attorney Kristin Pelletier further
explaining that non-compliance with the Permit Streamlining Act by delaying the process
could result in the project being deemed approved. In regards to a potential site-specific
EIR, Mr. Belmer explained the mitigated negative declaration being prepared was tiering
off of a state -prepared EIR and included technical studies specific to the proposed
project site, traffic, odor, life safety, etc.
Kenneth Park expressed his concerns with the proposed digestion facility affecting the quality of
life and requested reconsideration of the site for the facility.
Ms. Baxter stated she was concerned about her neighborhood in the proximity of the proposed
dump and questioned its effects on her property.
Lou Noble read a scripture and offered his opinion on the treatment of the homeless population,
referencing previous comments by council members, and reiterated his request for emergency
safe zones.
Council Member Murray stated the City was committed to positive and constructive
programs to aggressively assist individuals.
Mayanne Hadib requested a relocation of the proposed dump facility to maintain the quality of
life for her family and neighborhood.
Jay Burress, Visit Anaheim, provided copies of the 2015 Community Report from the hospitality
industry, highlighting monetary and service donations to the community by several groups,
including over $214,000 from Blizzard Entertainment to Children's Hospital, 83,000 pounds of
surplus food from Natural Products to Second Harvest Food Bank, over $85,000 in goods and
services to local schools by Asis International, and $10,000 to John Marshall Elementary and
musical instruments to students by NAMM.
Henrietta Torres submitted a formal letter and described her experience with the homeless near
her neighborhood and requested assistance.
Mayor Tait asked the City Manager to address potential criminal activity and work with
City Net to coordinate assistance at this particular location.
City Council Minutes of August 9, 2016
Page 5 of 21
Patricia Wells explained that after the County removed the homeless, they would return
immediately and expressed her concern for the health and safety of children.
Jeff Trump, Placentia resident, suggested saran -wrap style coverings for the trucks going to and
from the proposed facility as well as third -party monitors with information posted to the internet
regarding smell issues.
William Fitzgerald, HOME, offered his thoughts on certain Council Members, Disney, and the
homeless population.
Craig Florer, mechanical engineer and certified energy manager, explained his experiences with
digesters and methane tanks and expressed concerns with secondary containment, air
pollution, water runoff, and use of potable rather than reclaimed water at the proposed Anaheim
Energy Plant.
Liora Hess requested a site-specific EIR and expressed concern about bio -waste tanks, odors,
and the inadequacies of fail -.safe measures.
Gloria Hale, commercial property owner, stated her belief that the wrong location had been
chosen for the proposed dump as surrounding property values would fall and expressed
concern that a conditional use permit would be considered for the site.
Deborah Pauly expressed her disappointment with the proposed resolution to support the
OUSD bond measure describing mismanagement of funds. She stated that the repayment of
the bonds would greatly exceed their initial value and urged Council to reject the resolution.
Henry Pandes, Placentia resident, expressed his view that the proposed dump on Lakeview
was moving too quickly with not enough transparency and his belief that environmental issues
needed to be better controlled.
Rebecca Seirup, resident, discussed her concerns with the proposed sustainability center,
questioned the choice of location, read from material prepared for the Canyon Power Plant,
offered her thoughts on the property's ownership and relation to construction companies, and
requested a site-specific EIR.
Eddie Espinosa, Canyon High School assistant principal, asked for Council's support for the
OUSD proposed bond measure to bring the Canyon High School facilities up to 21St century
learning standards to retain students and educators.
Andrew Holstine stated Council had the option to extend the comment period for the proposed
sustainability plant to 60 days as well as decide between a mitigated negative declaration or
EIR. He provided that Council approved an energy contract in 2013 with a company that did not
have an energy plant and stated his belief that Pringle and Associates was the lobbyist for
Anaergia.
Mayor Pro Tem Kring provided historical information about Curt Pringle's terms as
mayor of Anaheim and the approval of ARTIC.
Dave Rosenberger, Yorba Linda resident, requested the sustainability center find an alternative
site, requested additional time to review the project, and suggested the cities of Anaheim,
Placentia, and Yorba Linda work together.
City Council Minutes of August 9, 2016
Page 6 of 21
Alexis Cherry, Canyon High School ASB Vice President, requested Council's support for the
OUSD bond measure for needed renovations of school facilities.
Sloan Cinkle, Canyon High School ASB President, described the lack of athletic facilities, new
technologies, running water and gas at his school and requested support of the OUSD bond.
Denise Barnes opposed Council's July 12`h decision subsidizing three hotel developments,
offering alternative uses for the money, and requested the immediate termination of the Luxury
Hotel Incentive Program.
Cynthia Ward suggested returning the OUSD bond to the district to determine how much the
bonds would cost to repay. She also shared that Council approved the purchase of energy from
the anaerobic plant on July 21, 2015, with no explanation of the item.
Linda Lobatos commented on the homeless situation by La Palma Park, expressing concern for
children attending the nearby park and GOALS Academy.
Greg Diamond offered his opinion on potential Council actions regarding the sustainability
center project and questioned the need for Council to take a position on the proposed bond
measure.
Victoria Michaels suggested increased electricity usage was possible due to residents closing
windows and running their air conditioner more in response to smells from the proposed
Anaheim Sustainability Center and requested the review period be extended to 60 days.
Vern Nelson, District 5, described connections between Republic Services and Rainbow Dump
in Huntington Beach.
David K., Citizens Against Legalizing Marijuana, spoke against Proposition 64 stating his belief
that passage would have a negative impact on community health, emergency services, traffic
injuries, and fatalities.
Mike Robbins respected marijuana for the assistance it provides to many.
Jeanine Robbins noted similarities in the short-term rental and sustainability center issues with
residents feeling angry and asking Council for assistance to maintain their quality of life.
COUNCIL COMMUNICATIONS:
Council Member Vanderbilt confirmed Council Member Murray's request for a report on the
fiscal impacts for crossing guards and traffic improvements near Anaheim High School and the
Mayor's request to extend the comment period for the mitigated negative declaration for the
proposed plant on Lakeview and Orangethorpe. City Manager Paul Emery confirmed each
request and advised staff would contact the applicant of the proposed plant to request an
extension to the comment period.
Mayor Tait requested the following items to be placed on the next agenda: 1) regarding the
proposed plant: extension of the public comment period and consideration of a full EIR versus
mitigated negative declaration, 2) a report and council action on the ARC project and OCTA
funding, 3) full discussion of the hotel subsidies including options to rescind previous action, and
4) discussion of the city charter regarding number of council votes required to approve an
action.
City Council Minutes of August 9, 2016
Page 7 of 21
CITY MANAGER'S UPDATE: None
At 7:46 P.M., Mayor Tait recessed the City Council to consider the Anaheim Public Financing
Authority, Anaheim Housing and Public Improvements Authority, and Anaheim Housing
Authority agendas, reconvening at 7:48 P.M.
CONSENT CALENDAR: At 7:48 P.M., the consent calendar was considered with Mayor Tait
pulling Item Nos. 8 and 9 for further discussion and Council Member Vanderbilt pulling Item No.
29. Mayor Tait declared a potential conflict of interest on Item Nos. 24 and 28 as his firm had
done work with the Orange County Water District this past year.
MOTION: Mayor Pro Tem Kring moved to waive reading in full of all ordinances and resolutions
and to adopt the balance of the consent calendar as presented, in accordance with reports,
certifications and recommendations furnished each city council member and as listed on the
consent calendar, seconded by Mayor Tait. ROLL CALL VOTE: AYES — 5: (Mayor Tait and
Council Members: Kring, Murray, Brandman, and Vanderbilt.) NOES — 0. Motion Carried.
B 105 7. Receive and file minutes of the Cultural and Heritage Commission meeting of June 16,
2016, Public Utilities Board meeting of June 22, 2016, and Parks and Recreation
Commission meetings of February 24, 2016, April 27, 2016, May 25, 2016 and June 22,
2016.
D182 10. Approve the Fiscal Year 2016 net write-off of uncollectible utility accounts totaling
$1,381,644.
D128 11. Approve the Fiscal Year 2015/16 write-off of uncollectible miscellaneous accounts
receivable totaling $1,237,488.
D180 12. Accept the lowest responsive bid from Organic Planet Truck and Transport, Inc., in the
annual amount not to exceed $32,334, for as -needed hauling and dumping services for
the Public Utilities Department for a one year period with up to four one-year optional
renewals and authorize the Purchasing Agent to exercise the renewal options, in
accordance with Bid #8696.
13. Award the contract to the lowest responsible bidder, Hardy and Harper, Inc., in the
AGR -10202 amount of $505,000, for the Ball Road Rehabilitation Project from 500 feet east of
Sunkist to the east city limits, authorize the Finance Director to execute the Escrow
Agreement pertaining to contract retentions and determine the project is categorically
exempt under the California Environment Quality Act.
AGR -10203 14. Award the contract to the lowest responsible bidder, All American Asphalt, in the amount
of $632,797.50, for the Arterial Street Slurry Seal Group One Project, authorize the
Finance Director to execute the Escrow Agreement pertaining to contract retentions, and
determine the project is categorically exempt under the California Environmental Quality
Act.
15. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the
D180 Purchasing Agent to issue a purchase order to Vigilant Solutions, in the amount of
$177,750 plus applicable tax, for the purchase of an extended hardware warranty and
software package for 73 license plate recognition systems consisting of 237 cameras for
the Anaheim Police Department and other local law enforcement agencies comprising
the Orange County Urban Area Security Initiative program and authorize the Purchasing
City Council Minutes of August 9, 2016
Page 8 of 21
Agent to issue purchase orders for future year renewals, in accordance with the
approved budget appropriations for each applicable year.
16.
Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing
D180
Agent to issue a purchase order to Allen Instruments & Supplies, in the amount of
$61,237.70, for Trimble surveying equipment for the Public Works Department and
authorize the Purchasing Agent to issue future as -needed Trimble equipment purchase
orders, subject to available budget appropriations.
D160 17.
Waive the sealed bidding requirement of Council Policy 4.0 and approve a master lease
agreement with Enterprise FM Trust, in a total not to exceed amount of $150,000, to
lease ten (10) undercover police vehicles for a three (3) year term and authorize the
Chief of Police to execute the separate lease agreements and take the necessary
actions to implement and administer the agreements.
AGR -10204 18.
Approve the Purchase and Sale Agreement with Anaheim Corporate Office Plaza, LLC,
in the amount of $324,180 plus closing costs, for the acquisition of property located at
2390 East Orangewood Avenue for future widening of Orangewood Avenue in
accordance with the approved Platinum Triangle Implementation Plan and authorize the
Public Works Director to execute all documents necessary to close escrow and finalize
transaction (RNV ACQ2016-00755).
AGR -10205 19•
Approve the Grant Deed and Purchase and Sale Agreement with Golden Star
Investment Properties, LLC, in the amount of $357,000, for the sale of remnant city
property located at 2181 West Katella Avenue (APN 128-604-15).
AGR -1992.1 20.
Approve the First Amendment to Agreement with Clear Channel Outdoor, Inc.
authorizing Clear Channel to sell commercial advertising on the bus shelters and train
platforms located at the Anaheim Regional Transportation Intermodal Center.
AGR -10206 788 -C 21.
Approve a General Services Agreement - Water Engineering for professional consulting
AGR -10207
and engineering services with consultants prequalified by the Public Utilities Department,
AGR -7744.A
AGR -7745.A
and authorize and direct the Public Utilities General Manager to execute the agreement
AGR -4798.0
separately with 19 companies (AKM Consulting Engineers, Inc., ALTA Environmental,
AGR -10208
Butier Engineering, Inc., CivilSource, Inc., CIVILTEC Engineering, Inc., Corrpro
AGR -4800.0
AGR -7748.A
Companies, Inc., David Evans & Associates, Inc., Dudek, GHD, Inc., Harper &
AGR -4805.0
Associates Engineering, Inc., Kennedy/Jenks Consultants, Inc., Michael Baker
AGR -6393.6
AGR -10209
International, Inc., PSOMAS, RMC Water and Environment, SA Associates, Stantec
AGR -4816.0
Consulting Services, Inc., Technical Systems, Inc., Tetra Tech, Inc., Westin Engineering,
AGR -6397.6
Inc.) and such other companies as may prequalify in the future for the agreement,
AGR -4820.0
authorize and direct the Public Utilities General Manager to take all necessary actions to
AGR-4822.cimplement
AGR -101021010p
and administer theagreement, and authorize de minimis changes that do not
AGR -4824.0
substantially change the terms and conditions of the agreement, as determined by the
AGR -10211
City Attorney.
22.
Approve a utility collection services agreement with Ray Klein, Inc., dba Professional
AGR -10212
Credit Service, in the total not to exceed amount of $89,880, for collection services
related to delinquent closing bills for a two year period with up to four one-year
extensions for $44,940 per year and authorize the Public Utilities General Manager or
designee to execute the agreement and any related documents and take the necessary
actions to implement and administer the agreement.
City Council Minutes of August 9, 2016
Page 9 of 21
R100 23. RESOLUTION NO. 2016-148 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM requesting temporary closures to Caltrans 1-5 offramps for
Disneyland Half Marathon (September 4, 2016; southbound 1-5 at Harbor Boulevard,
southbound 1-5 at Disney Way, northbound 1-5 at Katella Avenue).
P124 24. RESOLUTION NO. 2016-149 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain interests in real property (City Deed Nos. 11986, 11987, 11988, 11989, 11990,
11991, 11992, 11993, 11994, 11995, and 11996).
Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE:
AYES — 4: (Mayor Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt).
NOES — 0. ABSTENTION — 1: Mayor Tait. Motion to approve carried.
25. RESOLUTION NO. 2016-150 A RESOLUTION OF THE CITY COUNCIL OF
Pilo THE CITY OF ANAHEIM vacating public utility easements located at 1710 and 1720
South Anaheim Way pursuant to California Streets and Highway Code Section 8330, et
seq. - Summary Vacation (ABA2016-00344 and ABA2016-00345).
26. RESOLUTION NO. 2016-151 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM vacating a public utility easement located at 3411 and 3413
Pilo East Miraloma Avenue pursuant to California Streets and Highway Code Section 8330,
et seq. - Summary Vacation (ABA2015-00318).
D175 27. RESOLUTION NO. 2016-152 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM authorizing the Director of Public Works or his/her designee to
submit the Anaheim Boulevard and Ball Road Intersection Widening Project application
on behalf of the City of Anaheim to the California Natural Resources Agency for the
Environmental Enhancement and Mitigation Program (EEMP) and if awarded,
authorizing the acceptance of such grant on behalf of the City and amending the budget
accordingly.
C350 28. RESOLUTION NO. 2016-153 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting the Mitigated Negative Declaration and Mitigation
Monitoring Plan (No. 2016-004) for the Anaheim South Recycled Water Project
supported by those findings required by the California Environmental Quality Act.
Due to a potential conflict of interest, Mayor Tait abstained on this item. ROLL CALL VOTE:
AYES — 4: (Mayor Pro Tem Kring and Council Members: Brandman, Murray and Vanderbilt).
NOES — 0. ABSTENTION — 1: Mayor Tait. Motion to approve carried.
30. RESOLUTION NO. 2016-155 A RESOLUTION OF THE CITY COUNCIL OF
AGR -10213 THE CITY OF ANAHEIM authorizing the Director of Community Services or his
designee ("Director") to accept all grants from KaBOOM! on behalf of the City of
Anaheim for the installation and maintenance of playground equipment at selected park
and authorizing the Director to execute all required grant documents.
Authorize the Director of Community Services, or his designee, to act as the agent of the
City on all matters concerning this grant program and to accept future stipends and
funds received from KaBOOM! for maintenance of the playground equipment at a
selected park.
City Council Minutes of August 9, 2016
Page 10 of 21
T105 31. RESOLUTION NO. 2016-156 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM levying special taxes within City of Anaheim Community
Facilities District No. 06-2 (Stadium Lofts).
RESOLUTION NO. 2016-157 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM levying special taxes within City of Anaheim Community
Facilities District No. 08-1 (Platinum Triangle).
32. RESOLUTION NO. 2016-158 A RESOLUTION OF THE CITY COUNCIL OF
Pilo THE CITY OF ANAHEIM amending Resolution 2016-053 nunc pro tunc, relating to the
vacation of excess street right of way adjacent to 1110-1150 North Anaheim Boulevard
and 115-125 West La Palma Avenue (Abandonment No. ABA 2015-00324).
Approve and authorize the Mayor to re -execute the originally recorded Quitclaim Deed
with the corrected legal description (Deed No. 11969).
D114 33. Approve minutes of City Council meeting of June 21, 2016.
END OF CONSENT CALENDAR
8. Receive and file the executive summary of the review of internal controls over wire
D116 transfers conducted by the City of Anaheim Audit Division.
Mayor Tait requested this item following the news of Placentia's alleged embezzlement to
ensure nothing similar could happen in Anaheim. Joe Romines, Audit Manager, reported the
City's Audit division reviewed internal controls over wire transfers to determine whether those
controls were effective to prevent a fraud, reviewed internal control policies and procedures,
interviewed persons involved in the process, analyzed job duties, and tested a sample of 54
wire transfer disbursements from December 22, 2015 through April 30, 2016. He advised, Audit
compared breakdowns in controls that occurred in Placentia with Anaheim's internal control
policies and procedures and determined that the city's Finance Department had adequate
internal controls policies and procedures over wire transfers to minimize the opportunity for and
to timely detect any unusual or unauthorized transactions. He continued that all tested
transactions were valid and proper disbursements. He reported the Audit division made
recommendations to further enhance the controls and safeguards in place, which the Finance
Department agreed.
Mayor Tait indicated his intent was not to limit the investigation to wire transfers and asked the
City Manager to take a broader look at any embezzlement opportunities, including checks and
cash handling.
MOTION: Mayor Tait moved to approve Item No. 8, seconded by Council Member Kring.
APPROVED VOTE: 5-0. Motion Carried.
D150 9• Approve the plan for enhanced maintenance of restroom facilities at city parks and
authorize the Acting Community Services Director to implement the enhancements as
appropriate.
Larry Pasco, Interim Director of Community Services, explained staff surveyed neighboring
cities and found that most cities cleaned their restroom facilities at the same frequency as
Anaheim, once per day with a second cleaning as needed, mostly on weekends and during
special events. He provided, however, Newport Beach cleaned its heavily -used beach
City Council Minutes of August 9, 2016
Page 11 of 21
restrooms twice a day during the summer months. Mr. Pasco explained the operating hours in
most Anaheim parks were generally 5:30 a.m. to 10:30 p.m., seven days per week.
He reported that all park maintenance was performed by 20 -hour per week part-time city staff.
In addition to general cleaning each morning, restrooms were also checked to ensure all fixtures
were in operating order and graffiti was removed immediately. Additionally, each month
restrooms were steam cleaned to ensure an additional level of deep cleaning. Based on staff's
needs -analysis that reviewed reasonable increase in the frequency of restroom cleanings to
improve cleanliness, Mr. Pasco recommended additional part-time labor for restroom cleanings
be allocated for peak usage focused on May through September which would provide a second
or third cleaning, as needed. Mr. Pasco stated this would further allow more flexibility in
scheduling, resources could be shifted in lighter -use months, staff could continue to solicit public
input on which restrooms need additional attention due to increased usage or vandalism, and
new signage would be installed to provide contact information for the public to report problems.
Mr. Pasco indicated staff would continue to monitor and evaluate all restrooms for normal wear
and tear and on-going maintenance to keep restrooms fully functional and aesthetically pleasing
until deemed necessary to replace entirely, via a capital improvement project. Mr. Pasco related
funding for this service enhancement would be under $100,000 per year and could be absorbed
within the existing Community Services Department FY16/17 budget.
Mayor Tait expressed his request to aim high to ensure care and civic upkeep by having
Anaheim known as maintaining the best park restrooms in the county.
Council Member Murray requested further review of the costs to have park personnel in-house.
MOTION: Mayor Tait moved to approve Item No. 9, seconded by Council Member Brandman.
APPROVED VOTE: 5-0. Motion Carried.
29. RESOLUTION NO. 2016-154 A RESOLUTION OF THE CITY COUNCIL OF
R100 THE CITY OF ANAHEIM amending Resolution No. 2015-277 which establishes the days
and times of regular meetings of the City Council meetings for the 2016 calendar year.
Council Member Vanderbilt pointed out that the agenda title did not clearly identify the new
meeting date and residents who relied on the previously approved meeting calendar would not
be immediately aware of the date change unless they reviewed the staff report. City Clerk Linda
Andal explained that all meetings were noticed in advance pursuant to the Brown Act and that
the city website and council meeting calendar would be immediately updated with any approved
date changes to make the public aware, adding she would ensure appropriate language was
added to future items.
Mayor Tait stated meetings could still occur with the absence of a member with Council Member
Murray responding that adjustments had been made previously to accommodate changes in
schedule and requested Council's approval of the item.
Council Member Brandman expressed the public may prefer the amendment to have all five
Council Members present to conduct business and believed enough notice had been provided
for such a change.
City Council Minutes of August 9, 2016
Page 12 of 21
MOTION: Council Member Murray moved to approve Item No. 29, RESOLUTION NO.
2016-154 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending
Resolution No. 2015-277 which establishes the days and times of regular meetings of the City
Council meetings for the 2016 calendar year (canceling the August 23, 2016 meeting and
rescheduling to August 30, 2016), seconded by Council Member Brandman. ROLL CALL
VOTE: 3-2 (AYES: Mayor Pro Tem Kring and Council Members Murray and Brandman; NOES:
Mayor Tait and Council Member Vanderbilt). Motion Carried.
END OF CONSENT CALENDAR
34. RESOLUTION NO. 2016-159 A RESOLUTION OF THE CITY COUNCIL OF
0148 THE CITY OF ANAHEIM supporting the 2016 Orange Unified School District Bond
Measure known as the "District Classroom & Facility Safety, Modernization and
Renovation Measure," to modernize and improve school facilities serving students in the
district, including Anaheim residents.
Council Member Murray stated the OUSD bond measure would address the structural
debilitation of the four OUSD high schools, was approved by the OUSD board after much public
input, included a citizen oversight committee for taxpayer safeguards and annual audits, and
allowed the district to be eligible for up to $60 million in matching funds for school facility
upgrades.
MOTION: Council Member Murray moved to approve Item No. 30, seconded by Council
Member Vanderbilt for purposes of discussion.
DISCUSSION: Council Member Vanderbilt questioned differences between the 2014 and 2016
proposed bonds specifically regarding the allocation of funds to each school, expressing
concern that Canyon High School may not receive an equal allocation as specific language was
not included in the 2016 version.
Council Member Murray invited OUSD Assistant Superintendent of Business Services, Joe
Sorrera, to the podium to address technical questions. Mr. Sorrera stated the bond proceeds
would be divided equally between the four district high schools with each receiving $72 million
for construction, confirming the language from 2014 was carried over with both assessing $39
per $100,000 assessed property value resulting in proceeds of approximately $280 million to be
divided four ways among the high schools.
Council Member Vanderbilt expressed his concern about not seeing that guaranteed language
and wanting to make sure Anaheim residents received their fair share of the bond proceeds.
Mayor Tait agreed improvements were needed at the OUSD school campuses but saw this as a
tax increase and not in the purview of the City Council as it was a political decision that the
voters should make, expressing concern that staff provided a recommendation. While he may
support or endorse the measure personally, he opposed the City Council weighing in on a
political decision as a governmental body.
Council Member Murray confirmed there was legal jurisdiction and the action was allowable and
believed it was important that the City stand with OUSD in supporting this effort, to show
citizens and students that the Council supported investing and upgrading community schools.
She recognized Council Member Vanderbilt's questions as germane and suggested a possible
continuance to allow additional review, stating Council had previously taken action on several
City Council Minutes of August 9, 2016
Page 13 of 21
Federal issues and noting the importance of this issue of health and safety affecting local
residents.
Mayor Pro Tem Kring referenced a vote by the Anaheim Union High School District board to
involve another governmental agency by requesting a line item in the City budget to support the
schools and believed action by the City Council was appropriate.
Council Member Brandman reported on previous Council votes regarding the public petition
process involved with the Palm Lane charter school, on which he voted no, believing that may
have set precedent for Council involvement in a public process.
SUBSTITUTE MOTION: Council Member Vanderbilt moved to continue the item, seconded by
Mayor Tait. ROLL CALL VOTE: 4-1 (AYES: Mayor Tait and Council Members Murray,
Brandman, and Vanderbilt; NOES: Mayor Pro Tem Kring.) Motion to continue carried.
The following discussion and action occurred following the conclusion of the scheduled
public hearings, Item Nos. 36, 37, 38, and 39:
Following the conclusion of the public hearings, Council Member Murray moved to reconsider
Item No. 34 based on facts in question now available for review and discussion, seconded by
Mayor Pro Tem Kring. APPROVED VOTE: 5-0. Motion Carried.
DISCUSSION: Council Member Murray provided copies of the proposed bond measures
outlining the specific language included and asked for support of the resolution as a statement
of support, not advocacy for or against the proposed bond, as an appropriate bond measure to
place before the voters. Mayor Tait stated while not personally opposed to the bond, he
opposed the Council as a governmental entity taking a position on a political issue.
MOTION: Council Member Murray moved to approve Item No. 34, RESOLUTION NO.
2016-159 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM supporting
the 2016 Orange Unified School District Bond Measure known as the "District Classroom &
Facility Safety, Modernization and Renovation Measure," to modernize and improve school
facilities serving students in the district, including Anaheim residents, as amended; removing
language "including Anaheim residents" from Section 1 and adding language to Section 2
requiring an Anaheim resident be appointed to serve as a member of the citizens' oversight
committee, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: 3-2 (AYES: Mayor Pro
Tem Kring and Council Members Murray and Vanderbilt; NOES: Mayor Tait and Council
Member Brandman). Motion Carried.
D113 35. Nominate and appoint a voting delegate and up to two voting alternates to the League of
California Cities Annual Conference, to be held on October 5-7, 2016 in Long Beach,
California.
APPOINTMENT: Council Member Brandman
Mayor Tait nominated Council Member Vanderbilt (ROLL CALL VOTE: 2-0-3; AYES:
Mayor Tait and Council Member Vanderbilt; ABSTAIN: Mayor Pro Tem Kring and
Council Members Murray and Brandman).
Council Member Brandman expressed interest in nomination (ROLL CALL VOTE: 4-1;
AYES: Mayor Pro Tem Kring and Council Members Brandman, Murray, and Vanderbilt;
NOES: Mayor Tait).
City Council Minutes of August 9, 2016
Page 14 of 21
ALTERNATE: Mayor Pro Tem Kring
ALTERNATE: Council Member Vanderbilt
Mayor Pro Tem Kring and Council Member Vanderbilt were unanimously appointed as
alternates.
PUBLIC HEARINGS: At 8:47 P.M, the public hearings were considered.
36. This is a public hearing in accordance with Section 147(f) of the Internal Revenue Code
of 1986 regarding the proposed issuance by the Anaheim Housing Authority of its
multifamily housing revenue bonds in an aggregate principal amount not to exceed
13137.1 $43,000,000, to finance the acquisition, rehabilitation and equipping of the multifamily
rental housing project known as Hermosa Village Apartments Phase I, located at 1515
S. Calle Del Mar (295 -unit plus two Manager's Units, portion of the Hermosa Village
Neighborhood).
RESOLUTION NO. 2016-160 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM pursuant to section 147(f) of the Internal Revenue Code of
1986 approving the issuance of bonds by the Anaheim Housing Authority for the
Hermosa Village Apartments Phase I.
John Woodhead, Community & Economic Development Director, explained this was the first of
three TEFRA hearings to issue conduit bonds. He provided background information that on
June 15, 1999, the Anaheim Housing Authority (AHA) approved the Jeffrey Lynne
Neighborhood Revitalization Plan, designated as a Level 4 priority neighborhood with
overcrowding, code violations, deferred maintenance, deteriorating buildings, and gang
violence. AHA subsequently entered into phased affordable housing agreements with Related
Companies of California to implement the plan for the neighborhood, now known as Hermosa
Village, which provided for the acquisition, ground leasing, and substantial rehabilitation of
properties within the neighborhood. The Hermosa Village project was carried out in four phases
with a total of 517 affordable units, with the Hermosa Village Apartments Phase I consisting of
297 units in a multi -family rental development. Hermosa Village Phase 1 Housing Partners has
requested the AHA issue tax-exempt bonds to finance the developer's acquisition and
rehabilitation of the Hermosa Village Apartments Phase 1. Mr. Woodhead explained bond
financing has been used periodically to assist in the improvement of existing affordable housing
projects and in the preservation of at -risk projects by extending the term of affordability.
Through this financing mechanism, affordable housing developers were able to address the
needs of aging housing stock by providing facade and interior improvements, new landscaping,
and implementation of energy efficiency upgrades to comply with current standards. The AHA
adopted a resolution stating its intention to issue such bonds on June 14, 2016.
Mr. Woodhead explained the recommended action by City Council would authorize the AHA to
provide bond financing for the project as required by State and Federal law, the proposed action
would fulfill federal tax law requirements under the Tax Equity and Fiscal Responsibility Act
(TEFRA), and notice of the public hearing was published in the Anaheim Bulletin on July 21,
2016. In order to move the project forward and complete the California Debt Limit Allocation
Committee (CDLAC) application process, staff requests approval of this resolution in
accordance with Section 147(f) of the IRS Code. He reported the proposed bond issuance is in
an amount not to exceed $43 million, bonds would be repaid from project revenues with no risk
City Council Minutes of August 9, 2016
Page 15 of 21
of default to the city or AHA, and AHA will receive 1/8 of 1 % of the total bond amount at
issuance, and annually, to monitor the project and the affordable units.
Mayor Tait opened the public hearing.
William Fitzgerald, Anaheim HOME, offered comments on the lack of state and federal taxes via
the issuance of tax-exempt bonds and how that may affect Anaheim residents and questioned
who profited from bonds. He disputed the per-unit cost of refurbishment and commented on the
affordability provisions of the apartments.
Brian Chuchua asked who would own the facility once the bond money was used and what
would happen if there was not enough revenue to repay the bond.
Greg Diamond stated the per-unit cost seemed high and questioned the total repayment amount
of the bonds and the potential impact on the City and AHA budget.
Victoria Michaels inquired who the developer and his supporters were based on the amount of
money involved.
Lou Noble asked about considerations for the homeless in such affordable housing as many
wait four to five years for HUD housing and suggested establishing safe zones with facilities to
assist the homeless.
With no further comments offered, Mayor Tait closed the public hearing
DISCUSSION: In response to Mayor Tait, Mr. Woodhead confirmed there was no risk to the City
or the AHA as the bonds were not issued on the full faith or credit of the City or the AHA and the
only recourse anyone would have would be against the project and its revenues. Mr. Woodhead
explained that the AHA owned the land since starting to acquire properties in the Hermosa
Village area in 1999 and Related Companies owned the units, with such syndication so the
developer had tax equity, tax credit partners, other partners, tax credit financing, commercial
financing, and assistance from the City/AHA. He explained the dollar figure was high in order to
acquire the units and then rehabilitate them. He continued that this proposal would extend the
affordability by entering into a new 55 -year agreement following the first 15 years of the existing
agreement and tenants could remain in the units with no change to the rent structure in
accordance with HUD standards. The approximately $40,000 per unit included rehabilitation,
kitchen and bathroom work, energy efficiency upgrades, and site improvements with HUD
oversight of the borrowing amount to ensure no excessive profits on behalf of the developer.
He concluded that the City would receive substantial benefit through rehabilitated units with zero
risk and regulatory agreements that allow for enforcement of maintenance obligations and
affordability provisions.
MOTION: Mayor Pro Tem Kring moved to approve Item No. 36, RESOLUTION NO. 2016-160,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to section
147(f) of the Internal Revenue Code of 1986 approving the issuance of bonds by the Anaheim
Housing Authority for the Hermosa Village Apartments Phase 1, seconded by Council Member
Vanderbilt. APPROVED VOTE: 5-0. Motion Carried.
City Council Minutes of August 9, 2016
Page 16 of 21
37. This is a public hearing in accordance with Section 147(f) of the Internal Revenue Code
of 1986 regarding the proposed issuance by the Anaheim Housing Authority of its
multifamily housing revenue bonds in an aggregate principal amount not to exceed
B137.1 $17,000,000, to finance the acquisition, rehabilitation and equipping of the multifamily
rental housing project known as Sea Wind Apartments, located at 1925 West Greenleaf
Avenue (90 -unit plus one Manager's Unit, apartment complex).
RESOLUTION NO. 2016-161 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM pursuant to section 147(f) of the Internal Revenue Code of
1986 approving the issuance of bonds by the Anaheim Housing Authority for the Sea
Wind Apartments.
At 9:20 P.M., Council Member Vanderbilt declared a potential conflict of interest as he lived in
the area and excused himself from the dais.
John Woodhead, Community & Economic Development Director, explained this was the second
of three TEFRA hearings for Council to consider giving their authority for the Anaheim Housing
Authority (AHA) to issue conduit bonds for the Sea Wind Apartments, an existing 91 -unit multi-
family rental housing complex located at 1929 West Greenleaf Avenue. Sea Wind 26 LP has
requested the AHA issue tax-exempt bonds to finance their acquisition and rehabilitation of the
site. The AHA adopted its resolution of intent to issue such bonds on June 14, 2016; the
recommended action by City Council would authorize the AHA to provide bond financing for the
project as required by State and Federal law, the proposed action would fulfill federal tax law
requirements under the Tax Equity and Fiscal Responsibility Act (TEFRA), and notice of the
public hearing was published in the Anaheim Bulletin on July 21, 2016. In order to move the
project forward and complete the California Debt Limit Allocation Committee (CDLAC)
application process, staff requests approval of this resolution in accordance with Section 147(f)
of the IRS Code. The proposed bond issuance is in an amount not to exceed $17 million, bonds
are to be repaid from project revenues with no risk of default to the city or the AHA, and the
AHA will receive 1/8 of 1 % of the total bond amount at issuance and annually to monitor the
physical condition of the project and the affordability of the units.
Mayor Tait opened the public hearing.
William Fitzgerald, Anaheim HOME, offered comments on the lack of state and federal taxes via
the issuance of tax-exempt bonds and how that may affect Anaheim residents and questioned
whether Disney employees received priority over the homeless in renting these affordable units.
Brian Chuchua questioned the lease amount of the property by the developer and stated
concerns regarding the lack of new, low-cost housing and revenue.
Greg Diamond examined the per-unit rehabilitation cost and the overall repayment amount of
the proposed bonds. He also questioned whether the City would allow this partial -asset of the
City to go into default, and if not, the effect that could have on the City's budget.
Victoria Michaels asked what would happen if the City lost property tax on this project and
inquired about the developer.
With no further comments offered, Mayor Tait closed the public hearing.
DISCUSSION: In response to Mayor Tait, Mr. Woodhead stated the non -profits were typically
exempt from paying property tax and that this project differed from the previously -discussed
Hermosa Village project in that the City did not own the land for the Sea Wind Apartments but
City Council Minutes of August 9, 2016
Page 17 of 21
the developer owned the land, units, and entire project which would be the source for all
repayment in the event of default. He continued that there would be no future issue with credit
ratings as the AHA was the issuing entity and the City's only involvement was complying with
federal tax law requirement by conducting this TEFRA hearing. With respect to the AHA, the
financial world understood this was a conduit financing and AHA had never pledged anything to
the project, so the only recourse for any bond holders and anyone involved in the financing of
the project would be the project itself. Mayor Tait asked whether cities ever stepped in to back-
fill during defaults, with Mr. Woodhead confirming that could happen through default re -funding
for new bonds to get the project under different financial footing. However, he added, that
scenario would depend on the reasons and circumstances of a particular default and if they
could be reasonably corrected. He continued that AHA had a number of wait lists for affordable
housing with preference given to homeless and veterans, but no employer preference.
MOTION: Mayor Pro Tem Kring moved to approve Item No. 37, RESOLUTION NO. 2016-161 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to section 147(f)
of the Internal Revenue Code of 1986 approving the issuance of bonds by the Anaheim Housing
Authority for the Sea Wind Apartments, seconded by Council Member Murray. ROLL CALL
VOTE: 4-0-1 (AYES: Mayor Tait and Council Members Kring, Murray, and Brandman;
ABSTAIN: Council Member Vanderbilt). Motion Carried.
Council Member Vanderbilt returned to the dais at 9:43 P.M.
38. This is a public hearing in accordance with Section 147(f) of the Internal Revenue Code
of 1986 regarding the proposed issuance by the Anaheim Housing Authority of its
B137.1 multifamily housing revenue bonds in an aggregate principal amount not to exceed
$10,000,000, to finance the acquisition, rehabilitation and equipping of the multifamily
rental housing project known as Cobblestone Apartments, located at 870 South Beach
Boulevard (63 -unit, plus one Manager's Unit, apartment complex).
RESOLUTION NO. 2016-162 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM pursuant to section 147(f) of the Internal Revenue Code of
1986 approving the issuance of bonds by the Anaheim Housing Authority for the
Cobblestone Apartments.
John Woodhead, Community & Economic Development Director, stated the developer owned
the land, apartments, and all associated with the proposed project and requested approval of
bond issuance not to exceed $10 million for acquisition of the project and rehabilitation.
Mayor Tait opened the public hearing.
William Fitzgerald, Anaheim HOME, referred people online for the names of developers,
questioned the per-unit cost of the rehabilitation, believed Disney employees received
preference in renting, and offered his views on certain Council Members.
Greg Diamond questioned what was being purchased through the acquisition component of the
three projects, stated Anaheim was known to use bonds to promote public-private partnerships,
and questioned the understanding of Council Members regarding their votes.
With no further comments offered, Mayor Tait closed the public hearing.
City Council Minutes of August 9, 2016
Page 18 of 21
MOTION: Mayor Pro Tem Kring moved to approve Item No. 38, RESOLUTION NO. 2016-
162 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM pursuant to
section 147(f) of the Internal Revenue Code of 1986 approving the issuance of bonds by the
Anaheim Housing Authority for the Cobblestone Apartments, seconded by Mayor Tait.
DISCUSSION: Mayor Tait asked for clarification on conduit financing with Mr. Woodhead
explaining the big distinction was who received the proceeds, and as the issuer of bonds on
behalf of a developer, AHA would not receive proceeds except for the 1/8 of 1 % regulatory fee
for monitoring the project to ensure its quality and affordability.
APPROVED VOTE: 5-0. Motion Carried.
39. This is a public hearing to consider a resolution amending and establishing certain fees,
charges and rates in connection with the administration of Chapter 4.05 (Short -Term
M142 Rentals) of the Anaheim Municipal Code.
Determine that the adoption of the fee resolution is not subject to the California
Environmental Quality Act pursuant to Sections 21080(b)(8) of the California Resources
Code and 15273 of the State CEQA Guidelines because the fees, rates and charges are
established to meet operating expenses, including employee wage rates and fringe
benefits, purchasing or leasing supplies, equipment or materials, and meeting financial
needs and requirements.
RESOLUTION NO. 2016-163 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM amending and establishing certain fees, charges and rates in
connection with the administration of Chapter 4.05 (Short -Term Rentals) of the Anaheim
Municipal Code.
David Belmer, Planning & Building Director, reported this public hearing concerned new fees for
the implementation of the Short -Term Rental (STR) program. As background, he explained
Council had adopted a moratorium for STRs in September 2015 which prevented the filing of
new applications for short-term or vacation rentals. Following the implementation of the
moratorium, staff performed extensive public outreach culminating in a Council workshop on
February 23, 2016 including staff's recommendation, as informed by the STR Advisory
Committee, to consider the adoption of new fees to ensure the city was adequately recovering
costs of implementing the program. Following the workshop, staff prepared two ordinances
which Council introduced on June 29, 2016 and adopted on July 12, 2016 known as 1) STR
Regulations and Ban on New STRs, with new operational criteria and enforcement protocols;
and 2) STR Amortization, phase out approximately 377 existing STRs.
Mr. Belmer explained there was only one existing fee, $250, applicable at three trigger points: 1)
initial application for a STR permit; 2) change of ownership requiring the filing of a new
application; and 3) annual renewal of the STR permit; stating this fee did not come close to the
city's actual costs of implementing the program. Following detailed analysis, the potential new
fees are the result of staff hours for each required action associated with the processing and
evaluation of each application multiplied by the staff hourly rate. Mr. Belmer clarified that the
fees presented did not address the possible home -sharing ordinance that would come before
Council at a later date and would include their own fees for consideration.
City Council Minutes of August 9, 2016
Page 19 of 21
The first category of fees was deemed mandatory, that every permit holder or pending
application must pay: 1) First renewal for existing permit holder: $1,094; 2) Pending application
processing fee: $1,094; and 3) Annual renewal fee: $536. Non -Mandatory fees would only be
paid if circumstances warranted: 1) Transfer of ownership: $498; 2) Modify current permit for
change of floor plan, etc.: $415; 3) Appeal fee for decisions made by Planning & Building
Director: $469, which does not include the cost of the staff hearing officer to hear the appeal as
that is non-recoverable; 4) Hardship extension application: $1,086, with costs associated with
financial analysis non-recoverable; 5) Appeal fee for hardship extension decisions: $905, not
including cost of City hearing officer which is non-recoverable
In summary, Mr. Belmer explained the proposed fees were developed based on detailed
analysis aimed to recover costs incurred to the extent allowable and presented a revised
resolution that would allow for elimination of duplicative charges and for pro -rating fees during a
second -year renewal if the STIR operating period was less than a full year due to amortization.
Mayor Tait opened the public hearing.
William Fitzgerald, Anaheim HOME, disagreed with the proposed fees and the amortization of
STRs.
Victoria Michaels expressed her disappointment that Council had to listen to certain comments
Greg Diamond questioned the City's potential liability and wondered why a conditional use
permit was not required in the original proposal as commercial enterprises were entering
residential neighborhoods. He also questioned why this was not going before the Planning
Commission, warned of potential liability and takings lawsuits, and wanted to ensure there was
a baseline for determining hardship extension applications.
With no further comments offered, Mayor Tait closed the public hearing.
DISCUSSION: Mayor Pro Tem Kring restated her disagreement with the regulations and
amortization period and believed the fees to be excessive in light of the short operating
timeframe. She suggested a self -certification program for STIR operators, similar to the one in
place for apartment owners, and recommended use of TOT funds to buffer the need for
additional fees.
Mayor Tait stated the ban on STRs was to remove commercial operations from residential areas
with an amortization period to allow owners to be made whole with a hardship extension, if
necessary. Mr. Belmer confirmed for the Mayor that Section 5 of the resolution allowed for
certain fees to be pro -rated in year two to allow for the reduced operating period. Mr. Belmer
explained the fees were based on staff's best professional estimate of the number of hours
times the hourly rate, with a large portion for recouping Code Enforcement activities, and that a
home -sharing proposal would come before Council in September after receiving additional
public comment.
Council Member Murray agreed with Mayor Pro Tem Kring's proposed self -certification program
with a threshold of number of complaints received by a property to allow for such self -
certification and was concerned about moving forward with fees when additional options may be
available.
MOTION: Mayor Pro Tem Kring moved to postpone the item to allow staff time to return with a
self -certification program, seconded by Council Member Murray.
City Council Minutes of August 9, 2016
Page 20 of 21
DISCUSSION: Mr. Belmer explained the short time -frame for researching such a plan as staff
hoped for fees or policy to be in effect prior to the effective date of the ordinance as renewal
applications would be received soon. He explained the largest share of renewal fees was for
Code costs and was unsure how much those could be reduced. City Manager Paul Emery
reported TOT had already been allocated to enhance Code Enforcement efforts to ensure after
hours, weekends, and evening enforcement.
ROLL CALL VOTE: 2-3 (AYES: Mayor Pro Tem Kring and Council Member Murray; NOES:
Mayor Tait and Council Members Brandman and Vanderbilt). Motion failed.
MOTION: Mayor Tait moved to approve Item No. 39, RESOLUTION NO. 2016-163 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending and
establishing certain fees, charges and rates in connection with the administration of Chapter
4.05 (Short -Term Rentals) of the Anaheim Municipal Code as presented with the caveat of pro-
rated fees on the last year of operation, seconded by Council Member Vanderbilt. ROLL CALL
VOTE: 3-2 (AYES: Mayor Tait and Council Members Brandman and Vanderbilt; NOES: Mayor
Pro Tem Kring and Council Member Murray). Motion Carried.
Following the conclusion of the public hearings, Council Member Murray moved to reconsider
Item No. 34 based on facts in question now available for review and discussion, seconded by
Mayor Pro Tem Kring. APPROVED VOTE: 5-0. Motion Carried. (See Item No. 34, page 13
for discussion of item).
REPORT ON CLOSED SESSION ACTIONS: None.
COUNCIL COMMUNICATIONS:
Council Member Murray announced the opening of the City's 58th park and 2nd dog park, Olive
Hills Dog Park, thanking community members including Friends of K-9 Association, Anaheim
Hills Buzz, Visit Anaheim, Anaheim Chamber, Bomel Construction, Anaheim Colony, and
individual contributors. She noted the unveiling of the second K-9 memorial and requested a
resolution thanking Susan Bahary for her design of the monuments and contributions to the
city. She also recognized staff in the City Manager's office, Community Services Department,
and Public Utilities Department for their work on the dog park. She further requested the
meeting be adjourned in memory of Anaheim student, Austin Caldera.
Council Member Vanderbilt thanked CityNet and police officers for the ride -along to observe
homeless outreach efforts, congratulated the Police Department on a successful National Night
Out where he joined Mayor Pro Tem Kring in recognizing several volunteer watch captains for
their neighborhoods. He also thanked Congresswomen Mimi Walters for conducting an elected
officials meeting to discuss issues affecting residents in her district, which included Anaheim.
Mayor Pro Tem Kring announced a blue mass at St. Anthony Claret church and ceremony at
The Grove at 2pm in remembrance of the 15th anniversary of 9-11. As a Vector Control board
member, she encouraged residents to eliminate standing water to remove breeding zones for
mosquitos and encouraged preventative measures related to the zika virus. She presented a
video created by Fire Station No. 3 in response to the "Dare to Dance" challenge to support
Finely Smallwood, a 3 -year old Riverside County girl with cerebral palsy, announcing $45,000
had been raised toward the goal of $60,000 for surgery.
City Council Minutes of August 9, 2016
Page 21 of 21
Mayor Tait acknowledged the act of kindness of the Anaheim Fire & Rescue Department,
reported his trip to Washington, and commended staff on the opening of the dog park and for
working with the community on its design.
ADJOURNMENT:
At 10:54 P.M., Mayor Tait adjourned the meeting in memory of Austin Caldera.
Pnri
tfully subm' d:
VIO
. Andal, CMC
City Clerk