11/01/2016ANAHEIM CITY COUNCIL REGULAR AND REGULAR ADJOURNED
MEETING OF NOVEMBER 1, 2016
The regular meeting of November 1, 2016 was called to order at 3:00 P.M. and adjourned to
3:30 P.M. for lack of a quorum. The regular adjourned meeting of November 1, 2016 was called
to order at 3:34 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 October 28, 2016.
PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Lucille Kring, Kris
Murray and James Vanderbilt.
STAFF PRESENT: City Manager Paul Emery, Acting City Attorney Kristin Pelletier, and City
Clerk Linda Andal.
WORKSHOP: Home Sharing - Discussion regarding a proposed home sharing
ordinance
David Belmer, Director of Planning & Building, explained this workshop focused on home
sharing, a specific and limited type of short term rental (STIR), and would provide a status report
on efforts to bring forward an ordinance that would allow home sharing in the city subject to
rules and regulations, as well as opportunities to receive public input.
Mr. Belmer provided background information related to STRs: He reported STRs were first
permitted and regulated by ordinance in 2014; currently there were approximately 367 primarily
non -owner -occupied STRs, with less than 5% of the permitted STRs operating under the home
sharing model. In response to complaints regarding incompatibility and other impacts to
neighborhoods, in 2015 Council adopted a moratorium on STIR permits followed by an almost 6 -
month process of engaging the community about issues and options pertaining to STRs.
Further, in February 2016, staff presented a workshop with a 3 -part action plan, including a ban
of new STRs and stricter regulations to address and ameliorate the incompatibility issues, a
potential new type of permit to allow home sharing in residential neighborhoods, and exploring
the potential for allowing STRs in non-residential, mixed use, and commercial zones. At that
time, he advised, Council directed staff to proceed with the action plan with additional direction
to amortize existing STRs. He stated part one of the action plan was currently in progress
following adoption of two ordinances on July 12, 2016 generally known as the "ban and
regulate" ordinance. The first ordinance prohibited new STRs in residential neighborhoods and
established new operating and enforcement criteria and the second ordinance, the
"amortization" ordinance, phased out all existing STRs over an 18 -month period, with
consideration of potential hardship extensions that applicants could apply which would extend
their permit.
Mr. Belmer continued the city was moving into phase two of the action plan pertaining to home
sharing, where the home was owner -occupied, the owner continued to reside there and was
present at all times during the sharing of the home. He stated home sharing was an
accessory/occasional use with the primary use of the property remaining single-family
residential occupancy for primary, permanent occupants. He explained staff researched best
practices in other cities and that home sharing was the preferred model for STRs, as opposed to
non -owner occupied STRs, to maintain compatibility within neighborhoods and monitoring of
guest behaviors. Mr. Belmer noted, however, that most existing ordinances were new and did
City Council Minutes of November 1, 2016
Page 2 of 18
not have a significant testing period. Additionally, staff continued outreach efforts by developing
an extensive Frequently Asked Questions ("FAQ"), emailing the FAQs to residents and STR
operators for input, and running an ad in the Anaheim Bulletin inviting public comment. In
general, most comments received were positive and indicated the model could potentially work
but concerns were raised that the home sharing model had the potential to be abused and to
morph into the recent experiences with non -owner occupied STRs. In response, Mr. Belmer
explained staff refined the ordinance concepts to four parts: 1) how to define home sharing; 2)
what operational criteria would be needed to ensure maintaining compatibility with surrounding
neighborhoods; 3) how would it be permitted, by permit or by other means; and 4) how would it
be enforced. Mr. Belmer explained the goal was to propose regulations only as required to
ensure maintaining compatibility and that the homes were being operated as intended. With
regard to the definition, the verified legal owners of the property would have to reside there and
homeowners would be asked to identify all persons who resided on the property. For
operational criteria, Mr. Belmer stated they needed to be reasonable and focused to show home
sharing operated as an occasional and accessory use of the primary residence and highlighted
specific criteria such as the limited portion of a home that could be shared as the lesser of 50%
of bedrooms or no more than two bedrooms, limited occupancy per bedroom of two people, and
a limited number of 150 nights per year that home sharing could be used as an accessory use.
Mayor Tait expressed concerns about potentially over -regulating the process and negatively
impacting families with long-term renters due to the high cost of housing. Mr. Belmer explained
that home sharing was considered short term, less than 30 days.
Continuing with operational criteria, Mr. Belmer explained occupancy limits were recommended
at the same limits as the "ban and regulate" ordinance to alleviate over -crowding with a
maximum of 11 people, continuing that with a maximum of two guests per two bedrooms,
permanent residents could number seven. Additional criteria would include a quiet time
provision limiting outdoor activity after 10 P.M. and before a specified morning hour; basic life -
safety provisions such as smoke detectors, fire extinguishers, and pool safety gates, with the
owner to self -certify compliance; and reasonable parking restrictions. Existing second units,
granny flats, or accessory units would be appropriate for home sharing and would be allowed
under the ordinance subject to all criteria and home exchanges would not be precluded, using
the Laguna Beach ordinance as a model.
Mr. Belmer reported a limited number of administrative home sharing permits was considered,
however to avoid the expectation of vested rights, staff recommended having STR owners who
wished to home share register by completing a simple form and agreeing to abide by the terms
of the ordinance, as well as the payment of Transient Occupancy Tax (TOT). He further
recommended a sunset clause in the ordinance that the program would automatically terminate
18 months after the effective date. Staff would return to Council in 12 months to report on how
the program was working, propose modifications to the ordinance if needed, or recommend
repeal. Benefits of the sunset clause would make all stakeholders aware of the process, allows
for disclosure and testing of the program, provides protection to neighbors, and avoids the
possible claim of property investments.
Regarding the enforcement component, Mr. Belmer explained few complaints under the current
ordinance, pertained to those operating under the home sharing model. Additionally, as only
5% of current STRs were still operating, demand could be limited for this type of use and
neighborhood impacts could be minimal. He added, enforcement actions could be taken through
citations and civil or criminal prosecutions by the City Attorney's office.
City Council Minutes of November 1, 2016
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Mr. Belmer concluded his presentation by explaining the next steps were to receive Council
input, continue to collect public comments, and return to Council within 60 days with an
ordinance.
Mayor Pro Tem Kring questioned how the 5% of current operators was determined and whether
there may be more people interested in home sharing. Mr. Belmer explained the information
was gleaned through public outreach and open dialogue and stated he believed the demand
was low if the city focused only on home sharing. He added the ordinance was being
recommended on a trial basis stating concern that as non -owner occupied STRs were phased
out, some may try to enter the home sharing model without truly living in the home.
In response to Council Member Vanderbilt, Planning Services Manager Jonathan Borrego
explained the law changed regarding construction and leasing of a secondary unit on a
property. While previously the second unit had to be occupied by a family member, owners
could now rent to non -family members but are required to record a covenant agreeing they
would reside in one of the two units on the property. Mr. Belmer continued that building second
units specifically for the purpose of home sharing was a concern and staff had discussed
potentially differentiating between existing and new structures but that recent changes to State
law diminished the ability of the City to regulate second units.
Mayor Tait referenced his previous comments in support of a shared economy and shared his
belief that this was a socially positive way for social interaction and making friends while
incorporating into the culture of a neighborhood while disagreeing with the need for registration
or the collection of TOT, as more business -like in nature.
With City Council consensus, Mayor Tait received public comments.
PUBLIC COMMENTS ON WORKSHOP:
Bob Donelson expressed concerns that an owner could be on-site when a guest arrives but
then leave, believed long-term renters were a better option, and recommended a 45 -day limit on
home -sharing rather than the proposed 150 days, citing specific concerns about noise and
parking.
Mayor Tait questioned whether Mr. Donelson had encountered any problems with home
sharing to which Mr. Donelson replied he had no direct contact with that model in his
area.
Kandee Beas, with an STIR home sharing permit, explained her property included two houses
on the lot — a relocated historic home and a newly built residence where they rented out the
historic home and stayed in the other unit. She described her experiences and expressed her
belief that the only regulation needed was verification of property ownership and living on-site.
She agreed with 150 days as 45 days could quickly be utilized due to holidays, spring break,
and summer vacations.
In response to Mayor Tait, Ms. Beas confirmed they leave all their antiques, furnishings,
etc. in the main house when they stay in the other unit, their guests typically included
multi -generational families meeting in Anaheim from various geographic areas so a hotel
would not allow the desired family interaction. She responded no noise complaints were
received despite guests often using the outside areas and their property included plenty
of parking.
City Council Minutes of November 1, 2016
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In response to Council Member Vanderbilt, Ms. Beas agreed with the 5% estimate of
home sharers as she had only met a few and more people were renting long term due to
specific financial needs.
Emily Stamets reported she had been a home sharing host since before the STR ordinance was
effective, subsequently became permitted, and expressed her hope that she could continue.
She explained they rent out a guest room and bathroom in their 3 -bedroom, 2 -bath house and
enjoy the company of their guests.
In response to Mayor Tait, Ms. Stamets responded she has only received one complaint
for non -retrieval of her trash cans, nothing to do with guests and home sharing. She
expressed her frustration with website listings operating outside the standards and
guidelines and questioned what mechanisms would be in place to ensure everyone
knew about the rules and registration. Additional conversation ensued regarding how
often she had guests, how she received inquiries from guests wishing to stay at her
home, her property value, as well as guest access to living space throughout the house.
Jeanine Robbins encouraged Council to eliminate any potential loopholes such as current
investors adding a distant relative to the title owned by a corporation and ending up with a site
similar to non -owner occupied STRs.
Martin Lopez expressed his concern about entering this phase when the STRs were still in the
amortization process and supported Mr. Donelson's recommendation of a 45 day limit or no
more than 90 days. He requested information about monitoring online hosting websites and
enforcement methods.
Mr. Lopez confirmed for Mayor Tait that long-term renters did not have a negative impact
on his community in Sherwood Village and believed an occasional home share may not
be a problem either.
Ada Tamayo expressed her belief that as long as home sharing was controlled and the integrity
of neighborhoods was maintained, she would not oppose home sharing.
Without objection by Council, Ms. Beas returned and reported she had tried to bring home
sharing into the previous STR discussions to address all issues at once but was consistently
told that home sharing was not the issue at hand. While indicating there may not be a rush to
address home sharing, she reported she and others who wished to continue were required to
pay $1000 for a STR permit in order to continue their current practices.
Mike Robbins questioned the timing of the workshop and requested an evening meeting with
Code Enforcement, expressed concern about the amount of money expended so far on this
endeavor, and believed it unfortunate that such rules and regulations were required due to the
actions of certain investors.
Without objection by Council, Mr. Donelson returned and reported he had no issues with long-
term renters that acted differently than those staying at STRs as vacationers.
David Kirby described working out of his home for 20 years to not be a nuisance to the
neighbors and how he carried that over into home sharing for the past year, despite not having
a permit due to the moratorium. He questioned the need for registration and any limits on
minimum lengths of stay and maximum days per year and described his experiences with his
guests.
City Council Minutes of November 1, 2016
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With no further comments offered, Mayor Tait closed the public comment portion of the
workshop.
Mayor Tait expressed concerns about over -regulating the use of a private home but noted the
need to regulate when uses approached a more business -like degree, overall believing home
sharing was a good thing for home owners, visitors, and the community.
In response to Council Member Vanderbilt, Mr. Belmer confirmed the number of nights was a
large discussion item with Los Angeles increasing from 90 to 180 nights per year. He
acknowledged the difficulty in determining when home sharing ceases being an accessory use
and turns into the primary use and would work with the City Attorney's office.
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
CLOSED SESSION: At 4:41 P.M., Mayor Tait recessed to closed session for consideration of
the following items:
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Section 54957 (b) of the California Government Code)
Position Title: City Manager
2. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code)
Agency Designated Representative: Jason Motsick
Position Title: City Manager
At 5:19 P.M., the City Council session was reconvened.
INVOCATION: Pastor Holland Lewis, Anaheim First Love Church of the Nazarene
FLAG SALUTE: Council Member James Vanderbilt
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Proclaiming November 7-18, 2016, as City of Anaheim Annual Giving
Campaign
Finance Director Debbie Moreno accepted the proclamation on behalf of Anaheim employees,
who each year take two weeks in November to give back and improve the quality of life for
others through donations of time and finances, explaining the theme this year was "Care to Give
and Give to Care."
Proclaiming November 14-20, 2016, as Global Entrepreneurship Week
Proclaiming November 15, 2016, as America Recycles Day
Proclaiming November 16, 2016, as International Day of Tolerance
Proclaiming November 16, 2016, as GIS Day
City Council Minutes of November 1, 2016
Page 6 of 18
Jean Ibalio, Deputy Finance Director, accepted the proclamation on behalf of the City's GIS
team.
Proclaiming November 6-12, 2016, as Veterans' Appreciation Week
At 5:28 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 the following: i) Continuance of Public Hearing Item No. 2 to
December 20, 2016, as requested by Brookfield Anaheim Community Square, LLC, advising no
action would be required by the City Council or Housing Authority on this item; ii) Item No. 13 be
removed from the agenda as requested by staff per the provided memo; and iii) Item No. 20,
second resolution pertaining to the environmental action, be continued to November 22, 2016,
to allow staff to re -notice the action.
PUBLIC COMMENTS (all agenda items, except public hearing): Prior to receipt of public
comments, a brief decorum statement was provided by City Clerk Linda Andal.
Cecil Jordan Corkern, Outreach Homeless Ministries, read from the Bible and discussed various
passages.
Bob Donelson, regarding Item No. 8, offered comments pertaining to the current election and
campaign activities and believed the appointment of the Interim City Attorney should wait until
the new council was elected.
R. Joshua Collins, Homeless Advocates for Christ, read from the Bible and offered his
perception of Council's actions towards the homeless, in particular laws prohibiting sleeping
bags, tarps, and other property from parks and other public spaces.
Bryan Kaye described his previous actions pertaining to an apartment fire and questioned why
he had not received responses from the City.
Daniel Luevanos reported One Legacy was an organ procurement organization that connected
patients to transplant centers and explained one person could save the lives of eight people
through organ donation and enhance the lives of 50 or more through tissue and cornea
donation. He provided statistics and announced various community activities to raise
awareness and invited Council to dedicate a rose on the One Legacy float in the Rose Parade.
Jeanine Robbins offered comments relating the current election, actions by various candidates,
and expenditures by political action committees (PACs).
Daniel Robbins expressed his viewpoints regarding Mayor Pro Tem Kring's priorities.
William Fitzgerald offered comments regarding the rainbow flag, Council Member Brandman,
and current election spending.
Mayor Tait explained the microphone was privileged and although Council requested
speakers act with decorum and civility it could not be required even when speakers
made false statements.
City Council Minutes of November 1, 2016
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Council Member Murray further responded to Mr. Fitzgerald's comments as false and
denigrating.
John Dunton thanked Council for their responsiveness and actions regarding the shooting of
Ximena Meza, ROP programs, PTA meetings, Manzanita Park and the new Boys & Girls Club,
and Cops 4 Kids.
Mark Daniels, District 1 candidate, described his experience with district elections and offered
his opinion on other candidates.
Cynthia Ward spoke on Item Nos. 14, 15, and 11, questioning how organizations were selected
to receive exclusive negotiating agreements in Item Nos. 14 and 15 and regarding Item No. 11,
she expressed concerns with transparency and accountability by outsourcing City Treasurer
responsibilities to FTN Advisors and recommended Council order a comprehensive audit of city
financials.
Mike Robbins expressed his views on public service and various candidates in the current
election.
Peter Telegin, on behalf of Jack Leung, described a situation their swimming team experienced,
the denial of use of the Pearson Park pool, temporary use of the Salvation Army pool, and the
need for additional pool time for the youth athletes to practice, requesting city assistance.
Mayor Tait reported he had received a letter from a sixth grader about this issue and
requested Mr. Telegin meet with Community Services Director Brent Dennis to discuss.
"Time to Stand" commented on lack of accountability and transparency at the Police
Department and explained his encounters with the police regarding video recording their actions
and responses to public records requests.
Mayor Tait explained profanity was allowed at the public microphone with Acting City
Attorney Pelletier further explaining it would have to disrupt the meeting to be halted.
Lou Noble read from the Bible and offered comments regarding city council candidates and
police officer actions.
Vern Nelson offered comments on the campaign activities of various District 5 candidates.
Donna Acevedo -Nelson, District 5 candidate, discussed actions by her opponents and
referenced her positions related to district elections, police accountability, and opposition to
hotel subsidies.
Esther Wallace, regarding Item No. 13, stated west Anaheim was densely populated and poor in
park space and expressed concern that a portion of Brookhurst Park could be given to a private
group with no input from the Parks and Recreation Commission. She continued that existing
parks were heavily used by residents and opposed the use of park land by any group for its own
purpose at minimal cost and with no public input.
Jonathan, District 3 resident, proposed the creation of Indigenous Peoples Day to replace
Columbus Day.
Jeff LeTourneau spoke against earlier comments by Mr. Fitzgerald, expressed his opinion on
the selection of the Interim City Attorney and questioned the timing of the appointment just
before the election, and offered comment related to campaign contributions and expenditures.
City Council Minutes of November 1, 2016
Page 8 of 18
Martin Lopez addressed special interest money in elections, the actions of litigants and Council
regarding district elections, the approval of developments and giveaways, and encouraged
Council to delay the appointment of a new city attorney until after the election to avoid potential
conflicts of interest and distrust.
Victoria Michaels, District 3 resident, expressed concern with Council's actions in terms of city
residents versus other organizations and read from a Voice of OC article regarding election
spending.
David K. commented that PAC donations were legal, offered support to the Police Department,
and spoke to the potential effects of the legalization of marijuana for recreational use.
Nancy West offered comments regarding citizen distrust of the Police Department, residency of
a city council candidate, and the selection of the Interim City Attorney.
Greg Diamond disagreed with provisions in the proposed agreement with the Interim City
Attorney, Arturo Fierro, expressed concerns about potential actions that could occur,
recommended against approval of the contract, and referred to a plan to seek a protective order
to avoid destruction of documents prior to litigation.
A female speaker addressed parliamentary procedures, compared meeting attendance rates by
a current candidate and the current OCWD representative, and referred to articles in the Voice
of OC and Orange County Register regarding election activities.
Larry Larsen submitted an article from the Voice of OC.
Jose Moreno refuted items he had seen in advertisements against him regarding his school
board meeting attendance and protesting activities. He requested Council postpone the two
items that would reduce park space until after the election and offered comments regarding
campaign financing.
Council Member Brandman, as a point of personal privilege, discussed campaign
funding sources.
COUNCIL COMMUNICATIONS:
Council Member Murray responded to comments directed toward Mayor Pro Tem Kring and
Council Member Brandman.
CITY MANAGER'S UPDATE: None
At 7:02 P.M., the City Council was recessed to consider the Anaheim Housing Authority
agenda. At 7:07 P.M. the Anaheim Housing Authority was adjourned and the City Council
reconvened.
JOINT PUBLIC HEARING:
At the request of Brookfield Anaheim Community Square, the joint public hearing, Item No. 2,
was continued to December 20, 2016. No further action was taken by the City Council or
Housing Authority.
Al 23 2. This is a joint public hearing of the Housing Authority and City Council to approve a
Disposition and Development Agreement, in substantial form, between the Authority and
City Council Minutes of November 1, 2016
Page 9 of 18
Brookfield Anaheim Community Square, LLC for the sale and development of a housing
project (located to the east of the City Hall parking structure and the Community Center,
and bounded by Broadway to the south, Center Street to the north and Olive Street and
the alley to the east) and a Cooperation Agreement between the Housing Authority and
the City for the relocation of the current Broadway skate park with a new skate park
located adjacent to the Anaheim Cultural Arts Center, located on Lincoln Avenue.
Anaheim Housing Authority Action:
RESOLUTION NO. A RESOLUTION OF THE ANAHEIM HOUSING
AUTHORITY authorizing the sale of a 3.03 -acre (approximate) parcel of real property
located to the east of the City Hall parking structure and the Community Center, and
bounded by Broadway to the south, Center Street to the north and Olive Street and the
alley to the east in the City of Anaheim to Brookfield Anaheim Square LLC; making
certain findings in accordance with Health & Safety Code Section 33433; determining
that said conveyance of real property is exempt from the provisions of the California
Environmental Quality Act (CEQA) under section 15004(b)(2) of the State CEQA
Guidelines; and approving and authorizing the execution and delivery of a Disposition
and Development Agreement and any and all documents necessary to complete the
transaction and implement this resolution (sale amount: $7,107,695; construction of a
100 -unit for -sale townhome development).
Approve a Cooperation Agreement between the City and Anaheim Housing Authority
providing for the relocation of the current Broadway skate park with a new skate park
located adjacent to the Anaheim Cultural Arts Center, located on Lincoln Avenue.
City Council Action:
RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the sale of a 3.03 -acre (approximate) parcel of real
property located to the east of the City Hall parking structure and the Community Center,
and bounded by Broadway to the south, Center Street to the north and Olive Street and
the alley to the east in the City of Anaheim pursuant to that certain Disposition and
Development Agreement between the Anaheim Housing Authority and Brookfield
Anaheim Square LLC; making certain findings in accordance with Health & Safety Code
Section 33433; and determining that said conveyance of real property is exempt from
the provisions of the California Environmental Quality Act (CEQA) under section
15004(b)(2) of the State CEQA Guidelines (sale amount: $7,107,695; construction of a
100 -unit for -sale townhome development).
Approve a Cooperation Agreement between the City and Anaheim Housing Authority
providing for the relocation of the current Broadway skate park with a new skate park
located adjacent to the Anaheim Cultural Arts Center, located on Lincoln Avenue.
CONSENT CALENDAR: At 7:07 P.M, the consent calendar was considered with Council
Member Vanderbilt pulling Item Nos. 8, 14, and 16 for discussion and Mayor Tait pulling Item
No. 11.
MOTION: Mayor Pro Tem Kring then moved to waive reading in full of all ordinances and
resolutions and to adopt the balance of the consent calendar as presented, in accordance with
reports, certifications and recommendations furnished each city council member and as listed
on the consent calendar, seconded by Council Member Brandman.
City Council Minutes of November 1, 2016
Page 10 of 18
ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members: Kring, Murray, Brandman,
and Vanderbilt.) NOES — 0. Motion Carried.
D116 3. Receive and file information related to the Audit Division's planned audit projects related
to internal controls, including disbursements and cash handling.
D180 4. Accept the lowest responsive bid of Allstar Fire Equipment Inc., in the amount of
$1,007,155 plus applicable tax, for the purchase of self-contained breathing apparatus
and related accessories for the Fire and Rescue Department and authorize the
Purchasing Agent to execute the purchase order, in accordance with Bid #8792.
5. Approve minutes of the City Council meeting of August 9, 2016 and special meeting of
D114 August 10, 2016.
D180 6. Accept the bid from Pioneer Chemical Co., in the amount of $40,135, to provide as -
needed floor cleaning equipment repair services for the Anaheim Convention Center, 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 #8795.
D116 7. Approve recognitions to be presented at a later date recognizing Miss Anaheim Fall
Festival Scholarship Program Court and Andy Alison for his generous donation of the Dr.
James Bullard, M.D. Collection, a historic collection of photographs and materials
spanning five generations to the Heritage Center of the Anaheim Public Library.
D128 9. Approve carryover expenditure appropriations of $49,977,317 from FY 2015/16 to FY
2016/17 for projects previously approved by the City Council but not yet completed.
10. Amend the FY 2015/16 budget by increasing appropriations in the City Attorney's Office
D106 by $345,000 for outside legal costs and the Police Department by $2,600,000 for labor
costs for which the City was fully reimbursed.
12. Approve an agreement with Knowledge & Intelligence Program Professionals, in an
AGR- amount not to exceed $21,900, for training services which are reimbursed by the Urban
10356 Areas Security Initiative funding and authorize the Chief of Police to administer the
agreement.
13. Approve a Lease Agreement, in substantial form, with Access California Services for the
construction of a new building at Brookhurst Park located at 2271 West Crescent
Avenue, in the approximate lease amount of $1.00, per year, for 35 years with an option
to renew; authorize the Director of Community Services, or his designee, to execute the
agreement and any related documents and to take such actions as are necessary to
implement and administer the agreement; and authorize only those modifications to the
agreement as may be necessary and as approved by the Risk Manager and the City
Attorney's Office.
Item No. 13 was withdrawn by staff. No action was taken by the Council.
City Council Minutes of November 1, 2016
Page 11 of 18
AGR- 15. Approve and authorize the Director of Community and Economic Development to
10358 execute and administer an Exclusive Negotiation Agreement, in substantial form, with
Anastasi Development Company, LLC for the development of an approximate 6.13 -acre
site located on Lincoln Avenue, east of Euclid for the development of hospitality and
commercial uses.
D175 17. Authorize the Director of Public Works or his designee to accept and manage an
approved grant for the local Bridge Preventative Maintenance Program, in the amount of
$182,372, and a local match of $23,628 and increase the Public Works Department's FY
2016/17 revenue and expenditure appropriations in restricted transportation funds by
$182,372.
18. RESOLUTION NO. 2016-212 A RESOLUTION OF THE CITY COUNCIL OF
AGR- THE CITY OF ANAHEIM authorizing the Director of Community Services or his
10359 designee ("Director") to accept all grants from KaBOOM! on behalf of the City of
Anaheim for the installation and maintenance of the playground equipment at Willow
Park and authorizing the Director to execute all required grant documents (funding
contribution in the amount of $42,643).
Approve and authorize the Director of Community Services, or his designee, to execute
a Community Partner Playground Contract with KaBOOM!, Inc. and Anaheim Family
YMCA, and 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 Willow Park.
19. RESOLUTION NO. 2016-213 A RESOLUTION OF THE CITY COUNCIL OF
AGR- THE CITY OF ANAHEIM approving the revised "Master Agreement Administering
1654.0 Agency - State Agreement for Federal Aid - Projects Agreement No. 12-5055F15" with
the State of California, acting by and through the California Department of
Transportation and rescinding Resolution
No. 2007-012.
R100 20. RESOLUTION NO. 2016-214 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM ratifying the Director of Community Services or his designee to
submit an application on behalf of the City of Anaheim to the Department of Parks and
Recreation for grant funds from the Habitat Conservation Fund Program for funding
necessary to construct the Gramercy Trail, and if awarded, authorizing the acceptance
of such grant on behalf of the City and amending the budget accordingly (application for
$147,394 in grant funding).
RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting the Mitigated Negative Declaration and Mitigation
Monitoring Plan No. 338 for the Gramercy Park Trail Project and making the required
environmental findings pursuant to the California Environmental Quality Act (CEQA).
The second resolution of Item No. 20, adopting the Mitigated Negative Declaration and
Mitigation Monitoring Plan No. 338 for the Gramercy Park Trail Project was withdrawn for the
City Council Minutes of November 1, 2016
Page 12 of 18
purpose of re -noticing the action for the November 22, 2096 City Council meeting. No action
was taken by the Council.
AGR- 21. RESOLUTION NO. 2016-215 A RESOLUTION OF THE CITY COUNCIL OF
1666.1.1; THE CITY OF ANAHEIM approving an amendment to a three-year Cooperative Fire
AGR- Protection Agreement with the California Department of Forestry and Fire Protection,
1666.J and authorizing the Anaheim Fire Chief to execute the Operating Plan and any other
documents required in connection with that agreement.
RESOLUTION NO. 2016-216 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving a Cooperative Fire Protection Agreement with the
California Department of Forestry and Fire Protection, and authorizing the Anaheim Fire
Chief to execute the Operating Plan and any other documents required in connection
with that agreement.
END OF CONSENT CALENDAR
AGR- 8. Approve the interim appointment and employment agreement with Arturo Fierro to the
10355 position of City Attorney for a six month period, effective November 4, 2016.
Council Member Vanderbilt announced he pulled the item for clarification due to public
comments and media interest.
Mayor Tait explained he would vote against approving the interim appointment and employment
agreement with Arturo Fierro as Interim City Attorney. He stated interim appointments typically
came from staff and the current Acting City Attorney could continue to perform the
responsibilities until a permanent City Attorney could be appointed, which he believed should be
done after the election by the new City Council as they would be the ones working with the new
appointee, among other reasons pertaining to district elections, timing, costs, and potential
conflicts of interest.
Council Member Murray reported the recruitment was a six-month process of hiring a recruiter,
conducting a national recruitment, and interviewing candidates for the position prior to arriving at
this appointment. She described Mr. Fierro's background, experience, and accomplishments
which made him well qualified for the position and expressed her desire to approve the
appointment to fulfill the entire recruitment process as well as consider Mr. Fierro for the
permanent position.
MOTION: Council Member Murray moved to approve the interim appointment and employment
agreement with Arturo Fierro to the position of City Attorney for a six month period, effective
November 4, 2016, seconded by Mayor Pro Tem Kring.
DISCUSSION: Council Member Vanderbilt confirmed the entire process had been thorough and
expressed his hope that through the application and interview process the entire Council could
have agreed upon a candidate.
Mayor Tait stated he had wished to wait until after the election to approve any appointment and
believed other candidates may be concerned with the appointment of a candidate with personal
ties to a Council Member.
City Council Minutes of November 1, 2016
Page 13 of 18
Mayor Pro Tem Kring reported the process began in April 2016, interested candidates were
limited, and Mr. Fierro demonstrated a good background and experience, thereby offering her
support for his appointment.
ROLL CALL VOTE: AYES — 3: (Mayor Pro Tem Kring and Council Members Murray and
Brandman). NOES — 2: (Mayor Tait and Council Member Vanderbilt). Motion carried.
AGR- 11. Approve and authorize the City Treasurer to execute an Agreement and any
9575.A amendments under the terms and conditions, with FTN Main Street Financial Advisors,
LLC, in the amount of $108,000 annually, for portfolio management services for a term
of three years and authorize the City Treasurer to exercise two one-year renewal
options, for a total not—to-exceed contract amount of $540,000.
MOTION: Mayor Tait moved to approve the agreement as amended to a one year term,
seconded by Council Member Vanderbilt.
DISCUSSION: Debbie Moreno, Finance Director, explained that the City Treasurer was
responsible for the administration of the City's investment program which was structured to
meet the short and long term cash flow demands of the city in a manner which provided for the
safety of principal and sufficient liquidity while providing an investment return. She continued
that the City entered an agreement on January 1, 2016 for temporary portfolio management
services with FTN Main Street, a firm specializing in the management and investment of
municipal operating and bond proceed portfolios. As that agreement expired on June 30, 2016
and had been continued on a month-to-month basis, staff conducted a formal RFP with
responses received from six qualified vendors which were narrowed to the top three proposals
through evaluation by subject matter experts who unanimously recommended FTN Main Street.
Ms. Moreno reported that after FTN Main Street was selected as the temporary portfolio
manager, the City's Standard & Poor (S&P) credit rating of AAFS1 was affirmed. She
concluded her report with the agreement terms, including: three year initial term with two
optional one year renewals at the discretion of the City Treasurer; service fees based on current
market value of the city's portfolio (in excess of $460 million) totally $108,000 per year; support
from the Budget, Investment, and Technology Commission; and a 15 day termination clause
while locking in pricing for five years.
Due to the 15 day cancellation policy with no penalty, Mayor Tait withdrew his motion.
MOTION: Mayor Tait moved to approve Item No. 11, seconded by Mayor Pro Tem Kring. ROLL
CALL VOTE: AYES — 4: (Mayor Tait and Council Members Kring, Murray, and Brandman).
NOES — 1: (Council Member Vanderbilt). Motion carried.
AGR- 14. Approve and authorize the Director of Community and Economic Development to
10357 execute and administer an Exclusive Negotiation Agreement, in substantial form, with
Greenlaw Acquisitions, LLC for the development of an approximate 13.5 -acre site
located at northwest corner of Anaheim Boulevard and Interstate 5 for hotels and
commercial usage.
Sergio Ramirez, Community and Economic Development Senior Project Manager, reported the
City owned approximately three acres of real property at the northwest corner of Anaheim Blvd.
and Interstate 5, comprised of two irregular-shaped vacant parcels. He explained one parcel, a
remnant from the 1-5 widening project, had been acquired by the former Redevelopment Agency
City Council Minutes of November 1, 2016
Page 14 of 18
with the intention of combining it with the adjacent city -owned remnant parcel from the widening
of Anaheim Blvd. to create a development site. The Agency had also desired to acquire an
office complex immediately to the north of the site, Anaheim Business Campus (ABC), to
maximize the value of more attractive development site of approximately 13.5 acres but was
never able to complete the transaction.
Mr. Ramirez explained Greenlaw LLC was in negotiations with the current owner of the
Anaheim Business Campus and the two parties had entered into a Letter of Intent (LOI) with
respect to Greenlaw's acquisition of that property and Greenlaw had presented a proposal to
acquire the city -owned site, combine it with the ABC and develop hotels and commercial uses
thereon. Staff proposes to enter into exclusive negotiation agreement with Greenlaw to
negotiate the terms of a definitive agreement pursuant to which the City would sell the site and
Greenlaw would construct the project. He continued that in order to determine the feasibility of
the project, the proposed ENA provided a period of 90 days to negotiate a definitive agreement
for the disposition of the site and development of the project with salient terms in the definitive
agreement including a conceptual site plan, scope of development, construction schedule, fair
market price for acquisition of the site, and a financing plan for the project. He concluded that
the ENA required the developer to present a binding agreement to acquire the ABC, allows for
three 30 -day extensions, and any definitive agreement produced under the ENA would be
brought forth to Council for consideration at a later date.
Council Member Vanderbilt questioned whether this transaction included a form of subsidy and
whether, with a proposed hotel, a second subsidy could be sought under the Hotel Incentive
Policy. John Woodhead, Community and Economic Development Director, responded that the
property was proposed to be sold at fair market value without a subsidy on the land transaction
and the proposed hospitality use at the site was not anticipated to return under the Hotel
Incentive Policy.
In response to Mayor Tait, Mr. Woodhead explained Greenlaw had been selected because they
have an LOI with the adjacent property, which was a long-standing practice of the former
Redevelopment Agency in redevelopment plans. He further explained this parcel was still City -
owned as it was being developed in accordance with the Redevelopment Plan, which required
working with adjacent property owners for potentially larger projects. Additionally, Mr.
Woodhead stated the ENA would terminate if Greenlaw was unable to obtain a binding contract
to acquire the ABC.
MOTION: Mayor Pro Tem Kring moved to approve the Item No. 14, seconded by Council
Member Brandman. APPROVED VOTE: 5-0. Motion carried.
AGR- 16. Approve and authorize the Director of Community and Economic Development to
10354 execute and administer a Cooperation Agreement, in substantial form, between the City
and the Anaheim Housing Authority for the transfer of HOME Partnership Investment
Program funds, in the amount of $3,050,000, for the construction of a senior housing
project located at 1248 East Lincoln Avenue (related to Housing Authority Item No. 01).
City Clerk Linda Andal reported Council Member Vanderbilt withdrew his request to pull this
item for discussion as it was previously discussed under the Housing Authority agenda.
MOTION: Council Member Vanderbilt moved to approve Item No. 16, seconded by Council
Member Brandman. APPROVED VOTE: 5-0. Motion carried.
City Council Minutes of November 1, 2016
Page 15 of 18
D116 22• Receive and file an update on the City's collective efforts to combat and address
homelessness within our community.
Kristine Ridge, Assistant City Manager, explained this item was to receive and file an update
regarding city efforts to combat and address homelessness within the community. She
described the City's approach to date had included efforts by external, non-profit, and faith -
based organizations aimed at both improving the lives of the homeless and addressing the
impacts to city businesses and residents. Ms. Ridge provided the following statistics: California
was one of 17 states to see an increase in homelessness (1.6%, 2014-2015); the state
homeless population of 115,738 individuals was the highest population of homeless anywhere
in the country; of the statewide total, 35% was located in Los Angeles County, and Orange
County saw an increase of 4.7% in homelessness in 2013-2015, for a total of 4,452. She noted
that while Orange County's homeless population remained significantly lower in both number
and as a percentage of population than neighboring counties, the County currently lacked the
necessary facilities and services to fully address the issue, offering an example that the majority
of shelter beds were for families although the majority of the homeless population were
individuals. Ms. Ridge stated a count of the homeless in Anaheim was scheduled over an
upcoming three-day period.
Ms. Ridge highlighted department efforts at the local level through programs, actions, and
resources focused on helping homeless individuals find housing, responding to emergencies,
and improving conditions and impacts to properties. In regards to the Police Department, she
reported the department received 15,628 calls for service in the previous year for homeless -
related issues, specially -trained officers in the Homeless Outreach Team partnered with Orange
County Mental Health services, participated in the Anaheim Homeless Collaborative, worked
with the city's prosecution division regarding misdemeanors and infractions, and provided
assistance and advice to business owners on ways they could better secure their properties via
no trespassing signs, fence design, and security cameras.
In regards to the Community and Economic Development Department, Ms. Ridge explained the
Anaheim Housing Authority was one of only four housing authorities in the county and received
entitlement funds for three programs which could be used in whole or in part to support
homeless prevention and intervention activities: Emergency Solutions Grants (ESG), Home
Investment Partnerships Program (HOME), Community Development Block Grant (CDBG).
She further described recent projects such as a partnership with the Anaheim Union High
School District and Illumination Foundation to identify homeless families with children attending
Anaheim schools, job training services for families residing in shelters, and a pilot program with
Illumination Foundation and Mercy House to assist the chronic homeless by combining the
Housing Authority's long-term rental assistance with supportive services to ensure the success
of these individuals at maintaining their housing. In addition, multiple affordable housing
projects had been completed across the City that specifically targeted the homeless and at -risk
populations, such as Colette's Children's Home, Diamond Apartments, Tyrol Plaza, Casa
Allegra, and Rockwood Apartments.
Ms. Ridge continued that the Code Enforcement Division was actively engaged in responding to
calls related to the impacts created by the homeless and worked closely with the Police
Department by picking up and storing property throughout the city; the Fire and Rescue
Department received 807 calls for medical emergencies involving homeless individuals with the
majority resulting in transport to a hospital; and the Public Works Department conducted clean-
up and repairs related to homeless activities on City properties and rights-of-way by repairing
fencing, installing signs, maintaining parking striping and bus benches, and removing debris on
average of two 40 -yard bins per week.
City Council Minutes of November 1, 2016
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Efforts by the Community Services Department included oversight of the CityNet contracted
services including facilitating the Anaheim Homeless Collaborative which now involved over 70
non -profits, 49 faith -based organizations, and other governmental jurisdictions, whose approach
and model had been duplicated in other cities, and which to date had been responsible for
removing 621 individuals from the streets. Community Services also oversees two storage
centers, provides mental health first aid training to library staff to assist patrons, and conducts
the Park Ranger program responsible for clearing reserved park areas and ensuring the proper
closure of parks at night.
Ms. Ridge announced at the regional level, the County had recently hired a Director of Care
Coordinator, tasked with coordinating County programs and services for the region's homeless.
Director Susan Price has recently provided a 100 -day assessment report and recommendations
including: dividing the County into three service planning areas to ensure each area has a full
complement of services for the homeless; significant upgrades to County technology systems;
increased shelter beds for individuals, and formation of work groups to better coordinate
resources. Ms. Ridge explained more shelter beds were now available due to County use of a
defunct bus terminal with a capacity of 300 along with limited services. Combined with both
armory emergency shelters, the County would have 700 beds available for the winter season.
Ms. Ridge continued that the first year-round shelter and multi -service center was scheduled to
open in Fall 2017 with support and financial assistance from Anaheim, Fullerton, and Brea. She
reported Mercy House has been chosen as the operator, the Orange County Public Works
Department had completed the design of the tenant improvements, and beds would available by
reservation only with a number of beds reserved for referrals from the Police Department.
Ms. Ridge then shared two programs from other cities that could be duplicated in Anaheim: 1)
Potters Lane in Midway City, an eco -friendly housing project for homeless veterans, where
modified steel shipping containers were fabricated offsite then welded together to create 16
480 -square foot units to address the lack of affordable housing in Orange County, particularly
for single adults; and 2) Albuquerque's work program where city funds were used to contract
with a non-profit organization which picks up people by van and provides them jobs for payment
assisting their Public Works Department by pulling weeds, cleaning up litter, etc.
In closing, Ms. Ridge presented the most pressing challenge related to homelessness as the
increased encampments along the flood channels across the city. Efforts to mitigate the
encampments through better fencing and clean-up of debris had not been successful, along
with differing jurisdictional and legal aspects surrounding the properties. Discussions had
occurred with the County Director of Care Coordination, the Orange County Sheriff's
Department, and the Orange County District Attorney's office to move forward on the many
complexities surrounding these areas including jurisdictional authority, improvements in security
barriers, ongoing maintenance, inter -governmental cooperation, and availability of services so
the flood control channels could be addressed followed by the Santa Ana Riverbed.
Mayor Tait requested staff move forward with a work program similar to Albuquerque's to
provide jobs and dignity to those in need while benefitting from a cleaner city, thanked the
community and CityNet for assisting 621 formerly -homeless individuals find permanent housing,
and commended staff and his Council colleagues for working on the year-round homeless
shelter.
Council Member Murray acknowledged staff, CityNet partners, and members of the community
who worked diligently to support the homeless community and recognized the work of
City Council Minutes of November 1, 2016
Page 17 of 18
Jamboree Housing in opening affordable housing developments, hoping to locate additional
development sites for similar projects.
Mayor Pro Tem Kring stated she received the most complaints about the corner of Euclid Street
and Katella Avenue due to homeless activities, commended the efforts of the library in training
their staff related to mental health issues and needs, and looked forward to continued efforts to
reduce homelessness.
Council Member Vanderbilt questioned the process for the homeless census, with Ms. Ridge
explaining the "Federal Point in Time" conducts state counts and a local count would be
performed by CityNet, resulting in specific numbers for Anaheim. Ms. Ridge also explained that
the County would require one comprehensive system of data entry and reservations for shelter
beds so that information would be captured in place, the most vulnerable in the system could be
placed, and efforts could be more strategic and focused.
Council Member Brandman credited the coalition of activists and stakeholders who had kept this
issue a priority since the start of the economic recession and commended Anaheim and north
Orange County for leading the way toward the full, multi -service homeless shelter via continued
work and monetary contributions which spurred additional action in Santa Ana.
Mayor Tait expressed his pride in progress made, acknowledged additional work needed to be
done, and recognized the opening of Rockwood by Jamboree Housing allowing 48 families to
obtain affordable housing.
MOTION: Council Member Brandman moved to receive and file the update, seconded by
Council Member Murray. APPROVED VOTE: 5-0. Motion carried.
REPORT ON CLOSED SESSION ACTIONS: None
COUNCIL COMMUNICATIONS:
Council Member Brandman spoke of his attendance to the Rockwood Grand opening and
encouraged all to come out and vote on Election Day.
Council Member Murray spoke of her attendance at the Fall Festival and Halloween Parade,
highlighted Early Voting at City Hall and Red Ribbon Week. She also welcomed new Interim
City Attorney, Arturo Fierro.
Council Member Vanderbilt spoke of his attendance at the Fall Festival and Halloween Parade,
Dia De Los Muertos celebration, and the CHOC 5k Walk. He spoke of the Early Voting Center
at City Hall and encouraged all to come out and vote early.
Mayor Pro Tem Kring spoke of her attendance at the Fall Festival and Halloween Parade and
reported on the recent passing of on -duty Wisconsin, County Sheriff's Deputy Dan Glaze and
Alaska, Fairbanks Police Sergeant Allen Brandt and requested the meeting adjourn in their
memory. She announced the Veteran's Day celebration on November 11 at 11 am at the
Muzeo's Veterans' Monument.
Mayor Tait spoke of his attendance at the Fall Festival and Halloween Parade and expressed
his enthusiasm about Anaheim Hills Elementary School and Centralia School District's action to
adopt programs of kindness. He encouraged all to come out and vote on Election Day.
City Council Minutes of November 1, 2016
Page 18 of 18
ADJOURNMENT:
At 8:20 P.M., Mayor Tait adjourned the November 1, 2016 meeting in memory of County
Sherriff's Deputy Dan Glaze and Fairbanks Police Sergeant Allen Brandt.
M
ully submitted,
Linda N. Andal, CMC
City Clerk