Loading...
02/07/2017ANAHEIM CIN COUNCIL REGULAR MEETING OF FEBRUARY 7, 2077 11 The regular meeting of February 7, 2017 was called to order at 3:07 P.M. by Mayor Pro Tem Vanderbilt in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on February 3, 2017. PRESENT: Mayor Pro Tem Vanderbilt and Council Members: Kris Murray, Denise Barnes, Jose F. Moreno, Lucille Kring, and Stephen Faessel. Mayor Tait joined the meeting at 3:22 P.M. STAFF PRESENT: City Manager Paul Emery, Acting City Attorney Kristin Pelletier, and City Clerk Linda Andal. WORKSHOP: Mid -Year Budget Review Finance Director Debbie Moreno reported her presentation would review the adopted FY 2016/17 budget with specific focus on the General Fund, beginning with the current adopted budget, an overview of funding sources, an update of citywide projects, overview of FY 2016/17 budget performance, FY 2017/18 budget outlook, neighborhood improvement opportunities, as requested by Council, and would end with the budget calendar and what to expect in the coming months. Overview: Ms. Moreno stated FY 2016/17 revealed strong revenue growth. She explained the adopted $1.7 billion budget was comprised of many different sources of funding, with the biggest portion being restricted for specific activities. Referencing a chart, she reported Enterprise Funds were used to fund operations for the city's water and electric utilities, solid waste and sanitation, golf courses, and the convention, sports and entertainment venues. Special Revenue Funds, she continued, were funds awarded by other governmental agencies for restricted programs, such as the Housing Authority, Community Development Block Grant (CDBG), gas taxes and roads, and workforce development. Capital Project Funds were also primarily funded by other governmental agencies for restricted purposes. Moving on, she explained Internal Service Funds were used to track costs of internal services such as employee benefits and insurance, fleet and facility maintenance and replacement, and information and communication services. She explained the costs of these services were reflected within the other funds and recorded as department expenditures. The rest of the funds, Fiduciary Debt Service and General Purpose Funds, represented five percent of the city's overall budget, with similar restrictions on spending and the remaining General Fund (GF), making up the remaining 17 percent of the total budget, emphasizing this was where the bulk of the city's discretionary funding was found and used to fund the city's core services. Ms. Moreno reported the budget was structurally balanced with recurring revenues at $300.3 million and recurring expenditures at $299.6 million. She explained that other revenues, net of transfers was $57.9 million into the GF, with other funds at $28.5 million and transfers out from the GF to other funds of $85.5 million. The "transfers out," she explained were reflected as a negative revenue thereby reducing the total revenues to less than $1 million. To further clarify and provide greater detail, she presented a separate slide to explain if the "transfers -out" of $85.5 million were removed, it would leave the city with $385.8 million for sources of income, explaining that, TOT makes up 39%, sales tax 21 %, property tax 18%, other revenues 15%, and "transfers - in" completing at 7%. She continued, explaining that if $85.5 million (transfers -out) were moved to ongoing uses, then 77% would be direct services, 20% supporting debt service, 2% capital spending, and 1 % supporting economic development program, emphasizing that labor makes up City Council Minutes of February 7, 2017 Page 2 of 42 76% of the total services budget. As a result, she advised the city was balanced for recurring obligations, net of one-time expenditures. Financial Sources: Ms. Moreno identified Transient Occupancy Tax (TOT), 15% tax on room rates for stays of less than 30 days, as the largest GF resource making up 39% of the total, which is locally controlled and the city keeps 100%. She reported the city expected receipt of TOT in the amount of $150 million this fiscal year, an 87% increase over pre -recession levels, further explaining Anaheim has 20,000 hotel rooms which equates to over seven million room nights available per year, with an 80% occupancy rate the previous year. Ms. Moreno referred to a chart illustrating current trends, showing the adopted budget representing an 8.2% increase over the previous year, and at the half -way point, the city was slightly above the year-to-date (TYD) budget so she expected to be right on target at year's end. Ms. Moreno continued the next revenue sources was sales and use taxes at 21 % or $79.2 million of the GF. She explained that sales tax applied to the sale of tangible, personal property (something you could see, weigh, measure, or touch), including clothing, furniture, food products, vehicles, and gasoline, but excluding entertainment and services, which were not taxable. The tax rate in Anaheim is 7.75% of retail sales as of January 1, 2017, of which the city receives just 1 % of that tax rate. Ms. Moreno reported the sales tax came from a diverse and balanced economy with nearly 30% from retail and the remaining 70% almost equally shared between food, transportation, construction, and business -to -business categories. She showed a slide depicting moderated sales tax growth with a projected 1.8% growth for FY16/17, and expected sales tax revenues right on budget at year-end following one time revenue from second quarter returns partially offset by lower growth during the third quarter of 2016. The last of the "Big Three" revenues, Ms. Moreno reported, was property tax at 18% of the GF, totaling $70.4 million. Property tax of 1% of the full cash value of all real and tangible personal property applied across the state, of which the city receives a portion equal to 20% of the 1 % basic levy. As an example, Ms. Moreno cited a home with an assessed value of $450,000 would have a 1 % basic tax levy of $4,500 with the city receiving approximately 20% or $900. She explained adopted property tax revenues were budgeted to increase by 4% over last year, with revenues trending in line and projecting to be right on target for this revenue as well. Ms. Moreno continued that other revenues, consisting of fees, permits, other charges, and miscellaneous revenues, made up 15% of GF resources at a projected budget of $57.9 million. She explained that the largest portion of these revenues belonged to fees and permits at 37%, further noting such revenues were designated to pay for the services provided and could not exceed the reasonable cost for providing that service. She reported staff was currently conducting a citywide fee study to evaluate GF user and facility rental fees as well as development impact fees, and expected to have a final report in the spring in order to incorporate recommendations into the proposed FY17/18 budget. An additional 22% of other revenues were intergovernmental services charges, representing fees for services provided by one department to another, business license and property taxes made up 14% of the total, and refunds and reimbursement revenue another 13%, with the balance including intergovernmental revenues from other agencies, fines, penalties, and use of money or property in other areas usually called interest and rent. General Fund Uses: Ms. Moreno explained uses of GF revenues includes services, economic development, debt service, and capital outlay with the largest piece being services with 77% consisting of labor/personnel costs, including full time and part time personnel and related benefits costs, as well as other operating expenses including office supplies, equipment maintenance, contract services, and other operating -type expenditures. Debt service expenditures represented prepayment of principal and/or interest on borrowed funds at 20% of City Council Minutes of February 7, 2017 Page 3 of 42 the GF, with the majority of debt service transferred out and paid by restricted debt service funds. Capital outlay represented the purchase of office equipment, furniture, computer hardware, and vehicles, funded by unrestricted sources of $6 million of 2% of the GF and the remaining 1 % equaling $3.4 million for economic development programs. Ms. Moreno showed a slide highlighting the services portion of GF uses with a detailed breakdown by functional group: Keeping Us Safe (Police and Fire): 66%; Ensuring Quality of Life (Planning & Building, Community Development, Community Services, Convention/Sports/Entertainment): 17%; Providing the Necessities (Public Works and Utilities): 7%; Supporting Activities (Finance and Human Resources): 5%; and Administering Effective Government (City Administration, City Attorney, City Clerk): 5%. Five -Year Plan: Ms. Moreno explained the process for developing the five-year plan by looking at revenues, projecting annual growth based on market conditions, looking at expenditures and considering base inflation and anticipated changes in labor costs, transfers to other funds, and long-term obligations to determine recurring base uses, and making sure we have the funding for today's current services levels and what those will cost us in the future. She continued the net of total sources and recurring base equaled the base surplus, which since 2013, had allowed the city to add services strategically up to its maximum capacity while ensuring we could meet obligations going forward. Any revenue over collection or expenditure saving in a single year had been available for one-time projects benefitting the community without creating on-going obligations. In FY16/17, a prior year surplus of $7.3 million was identified and then programmed for one-time projects. Ongoing Service Enhancements: Ms. Moreno stated, with Council's direction and support, the city had been able to add on-going service enhancements over the five years since coming out of the recession, spending $42 million on on-going services in neighborhoods, parks, and public safety programs to positively contribute to the community. Highlights included: the addition of 13 officers in FY13 and FY14, 30 more police officers as part of Council's "40 -in -4" initiative, an additional two police dispatchers, restoration of one fire company, the addition of three firefighters, street improvements, and the expansion of after school, GRIP, and Cops -4 -Kids programs. She explained that approximately 80% of the enhancements were focused on public safety with 20% targeted at other areas of neighborhoods and parks. In conjunction with on-going service enhancements, $26.1 million had been allocated for one-time improvements between FY13 and the current year, funding community infrastructure and neighborhood projects in Public Works, Planning & Building, and Community Services and public safety enhancements in Police and Fire. Debt Service: Ms. Moreno explained debt service comprised 20% of the GF, with the biggest component related to resort improvement bonds. Ms. Moreno provided historical information about the issuance of the resort improvement bonds and the calculations used to determine its payments. Prior to issuance of 1997 bonds, the TOT rate was 12%. The city decided to increase the TOT rate by 3% to help expansion in the Resort without putting the GF at risk, by keeping the original 12% for the GF and allocating the additional 3% toward improvements, so that if revenues did not come in as projected, no negative impact would be felt as the improvements were only tied to the additional 3% rate. Additionally, a base was set in 1995 of almost $11 million for TOT and sales tax on Disney properties, increasable by inflation, but with any additional increment set aside to service the bonds. The slide presented a look at current rates, as follows: 3% of the 15% TOT (i.e. 20% of all TOT) was calculated to be $22 million per year; 100% of the increment above the base of Disney TOT/sales tax at $35.2 million ($10.5 million in 1995), and 100% of Disney property tax over 1995 base now $3.6 million (was $1 million); for a total of $60.9 million. Remaining debt service applied to the convention center expansion. City Council Minutes of February 7, 2017 Page 4 of 42 Council Member Murray asked for confirmation that this formula ensured no risk to the GF, with Ms. Moreno explaining the formula was put into place so only the increment above the 1995 base is transferred to the bond trustee to make the scheduled debt services payments until the completion of the bond, at which time all monies would revert to the GF. Ms. Moreno further explained that should revenues decrease, the requirements to pay the trustee also decreased and only the funding on hand with the trustee would be available to pay the bonds. Ms. Moreno confirmed the money received from taxes does enter the GF and is then used to pay the bonds. Mayor Tait expressed his concern with potential impact to the GF based on these bond payments in conjunction with $15 million for the Convention Center and $35 million approved for hotels, out of the total $380 million GF. Council Member Murray clarified that the bond payments were guaranteed to be paid based on the formula approved by the previous City Council and Disney's contributions. Ms. Moreno confirmed the additional 3% of TOT was dedicated to the bonds, revenues generated about the 1995 base plus CPI inflater for Disney properties were allocated to the bonds, and the formula has served the city well throughout the recession without having to make a fixed bond payment. Council Member Moreno questioned the profits received by Disney as well as various aspects concerning the Mickey & Friends parking structure. Ms. Moreno responded the city did not track profits for the Disney company but that the parking structure was due to be paid off in 2037, and agreed to return with additional information from the bond documents about the future ownership and revenues of the parking structure. Mayor Tait confirmed his vote in 1996 to support the California Adventure expansion through bonds. Ms. Moreno confirmed that, over the base 1995 amounts plus inflation, Disney tax payments currently resulted in approximately $22 million to the GF and $39 million to bonds, adding that the city was obligated to pay the bonds until they were completely paid off but that the formula allowed that if revenues went up, payments went up, and vice -versa. She further stated that if revenues dropped below a certain level, Disney guaranteed payment of 50% of the junior bonds. In response to Mayor Pro Tem Vanderbilt's question about the remaining 50% of the junior bonds, Ms. Moreno explained that if a catastrophic event caused revenues to drop so low, there were a number of factors within the formula to keep the deal intact until the city could make bondholders whole again, which could be extended out for 10 years. She further explained only the September 1St annual payment included both principal and interest, which after the most recent September payment of debt service, the city still had another two years of debt service on hand with the trustee thereby providing a longer term until the balance would drop below zero and impact bondholders or have any impact on the GF or services. Ms. Moreno further clarified for Mayor Pro Tem Vanderbilt that core -level maintenance in the Resort District was paid via the GF, but the enhanced maintenance such as twinkle lights, signage, and additional landscaping was paid by resort properties via the Anaheim Resort Maintenance District (ARMD). Council Member Kring reported the 1995/1996 bonds had been issued to upgrade the entire resort, including undergrounding utilities, monument signs, beautification, and continuity, and good management and structure of the bonds had allowed for payments with no negative impact as well as providing additional monies for park and neighborhood improvements Mayor Tait reported the recession had been felt by the city through the closure of fire stations, fewer police officers, reserves reduced by about $30 million, and discussion of closing City Hall every Friday; continuing that while the bonds were paid and had been fruitful, additional payments regarding the Convention Center and hotels were risky and carried potential negative impacts. City Council Minutes of February 7, 2017 Page 5 of 42 Ms. Moreno confirmed for Council Member Moreno that the current base plus CPI increases was roughly $22 million, about twice what it was in 1995, with the roughly $40 million over that level paid to bond obligations. Ms. Moreno referred to a summary chart of the net impact of the Resort to the GF, with a full report available on pages 143-146 of the adopted budget. Revenues generated by the Resort totaled $160.3 million with outflows to support the Resort totaling $92.7 million. The remaining $70.6 million represented nearly % of the GF services budget available to provide core services across the city, broken down by four neighborhood districts and to be shown across six Council - elected districts in the proposed FY17/18 budget. Accomplishments to Date: Ms. Moreno highlighted accomplishments from the first half of the fiscal year, projects in process, and projects coming soon, as follows: Police Department Community Outreach: o Youth Programs: Public Safety Pipeline, Junior Cadets, Cops 4 Kids o Community Programs: PACE presentations, Coffee with a Cop. o Homelessness: Homeless Outreach Team (HOT) participation in the Anaheim Homeless Collaborative, which to date has assisted 621 homeless neighbors get off the street; HOT, Psychological Evaluation Response Team (PERT), and community policing teams recent participation in a comprehensive census of the homeless population in Anaheim with results available in the near future; key player on the Orange County Sheriff's Department countywide homeless outreach taskforce to develop best practices for consistent application across jurisdictions; preparation for the opening of the county's multi -service center in 2017, perhaps as soon as April; and the opening of a transitional storage center in June 2016 at Anaheim Community Church on Ball Rd. near Beach Blvd to provide a location where homeless neighbors on the west end of the city can store their belongings while seeking outreach services. • Anaheim Fire & Rescue: o Installation of 29 traffic signal emergency vehicle preemption devices to reduce response times by halting traffic and providing right-of-way to emergency vehicles o Community Care Response Unit (CCRU) program fully operational, pairing a nurse practitioner with a paramedic mobile unit to provide medical service directly in a patient's home. Community Services neighborhood improvements: o Olive Hills Dog Park, opened August 2016, including one acre of open space, new restroom building, and expanded parking lot o New skate parks, including a 9,000 square foot skate park at Ponderosa park and two skate parks at Palm Lane and Schweitzer Parks as part of a $500,000 donation by Disney o STARS (study -time, arts, recreation, and sports) after-school program expanded from nine to eleven sites o Restoration of the arson -damaged Manzanita Park building o Renovation and re -opening of the Euclid and Sunkist branch libraries o Little People's Park new gazebo, picnic areas, basketball court, and other improvements City Council Minutes of February 7, 2017 Page 6 of 42 o On-going construction of the 22,000 square foot Ponderosa Park and Family Resource Center o Imperial Park playground, one of five Kaboom! funded playgrounds o Overt Surveillance Park Camera Project initiated in November 2016 with phases 2 and 3 to follow. Council Member Moreno questioned whether all the aforementioned projects were paid by the GF or if some were paid by grants from Federal, State, County, or other agencies, to which Ms. Moreno replied that most were paid from other sources than the GF, including park developer fees. Council Member Moreno recognized the work staff performed to aggressively seek out the grants to maximize opportunities and projects but requested clarification on the proportion of funding that came from each various source. Council Member Faessel referred to page 134 of the adopted budget where it showed over $12 million of the GF funding on-going and one-time service enhancements, including park improvements and projects. Ms. Moreno clarified that projects were not always completed on the same time -frame so the highlights were from the recent months but that about $20.6 million was spent from the GF over the last five years, with roughly half toward parks and neighborhoods. Council Member Murray clarified that maintenance and core funding also came from the GF, along with the discussed capital improvements, with Ms. Moreno replying that roughly 20% over the same time period was added back to parks and neighborhoods from the GF Mayor Tait reiterated his concern regarding $15 million per year for the Convention Center and $35 million for luxury hotels, yet roughly $2 million per year from the GF for capital projects in parks and neighborhoods in city of 350,000 people. Council Member Kring responded that the Convention Center expansion was paid by refinancing current bonds and would result in additional conventions and attendees for NAMM, National Products, and the American Heart Association, among others whose attendees would then stay in Anaheim hotels and provide additional revenues to the GF. Ms. Moreno continued that the Resort provided a net surplus of $70 million that could be re- directed to neighborhoods, paid by tourists rather than residents. In response to additional questions from Mayor Tait and Council Member Murray, Ms. Moreno reported the net surplus from the Resort in 1995 was approximately 11 % and was now close to 25% of the GF. Mayor Tait requested the actual numbers be provided for review. City Manager Emery clarified that the numbers currently presented included net revenue, net expenses, and bond payments to more accurately depict the entire budgetary picture, rather than just gross numbers and percentages. Future Proiects: City Manager Emery explained Community Services Director Brent Dennis would outline possible neighborhood improvements that could be made with the availability of certain resources of the balance of the current fiscal year along with staffs recommended prioritization but requested Council direction prior to returning for appropriations. Mr. Dennis reported staff had recently focused on revitalizing recreational and sports fields and was working with the Trident, South, and Sycamore campuses to improve their fields in exchange for some community access, with hopes of expanding that relationships and accomplishing more in the coming years. Additionally, there was an increased focus on custodial services for the conditions and cleanliness of restrooms, along with improved lighting and security considerations, working in conjunction with the Public Works and Public Utilities Departments. He continued that out of 35 restrooms existing across the city's 57 parks, seven has been identified in need of total replacement, and with a budget for major capital investments of $3.5 million, the focus would be on facilities deemed antiquated and in need of essential upgrades, including some smart design City Council Minutes of February 7, 2017 Page 7 of 42 improvements through collaboration with the Police Department to make the restrooms easier to maintain, secure, and more inviting for the community through a combination of cosmetic improvements, fixture updates, and ADA compliance improvements. He announced the seven parks with recommended renovations: • Boysen Park, District 4: $35,000 for renovation of one restroom facility along with collaboration with Roosevelt School's master plan to address the other restroom facility • John Marshall Park, District 2: $97,000 in renovations • Brookhurst Park, District 1: just under $58,000 for south restroom renovation and upgrades • Pearson Park, District 3: about $62,000 for the west facility improvements • Maxwell Park, District 1: $56,000 for western facility renovations • Peralta Park, District 6: about $88,000 for necessary improvements, • Edison Park, District 5: about $115,000 in renovations. Mr. Dennis concluded that these top seven park projects totaled slightly more than % million dollars in investments and renovation that would be justifiable and bring great improvements to the communities to use their parks and have cleaner, well-maintained restrooms. He then reported staff has looked at various ways to approach a system -wide assessment of the park system, noting that issuing an RFP to hire a consultant to undertake the assessment would take 18-24 months at a cost of $800,000 to $1,000,000. Staff was confident they could undertake a similar assessment in-house, building off a foundation created in coordination with Cal State Fullerton graduate students, in approximately 12 months for about $120,000 through a robust community engagement process. A third area identified by the community as a most noticeable and desired improvement, per Mr. Dennis, was field improvements. He cited potential timing issues for re -seeding fields worn from adult sports activities, as warmer weather was needed such as in late April/early May, in order for the seed to germinate, but would then require closure of the fields for 3-4 months and the need to work closely with the user groups on scheduling field time. He presented the top five fields for renovation, as follows: • Edison Park, District 5: identified as the most immediate need, $22,000 • Schweitzer Park, District 1: begin May/June, $70,000 • Pioneer Park, District 5: least costly at $16,000 • Riverdale Park, District 6: infields, $20,000 • Modjeska Park, District 2: being phase 1 in July, $70,000 Mr. Dennis reported the total cost of the field renovation work totaled just under $200,000 to address those most beneficial for the park system, user needs, and to address wear and tear. He further stated policies may be brought forward for Council consideration regarding permits for pick-up play and number of participants to help address future impacts to the fields. In response to Mayor Pro Tem Vanderbilt, Mr. Dennis stated the list of parks for renovations was 3-4 times as long as those presented, exclusive of dog parks; however noting the large dog area of La Palma Park was being researched for possible use of decomposed granite to assist with heavy wear. Other areas for future consideration and renovation through the system -wide assessment would be basketball courts, tennis courts, sand volleyball courts, dog parks, trails, and connectivity. He continued that other field renovations would likely be less costly than the City Council Minutes of February 7, 2017 Page 8 of 42 $16,000470,000 range presented and would include a total figure in a comprehensive, prioritized list. In response to Council Member Faessel, Mr. Emery explained the proposed restroom repairs and infrastructure was estimated to cost $510,176, with approximately $800,000 in unappropriated funds that we could be used for balance of this fiscal year to address priorities expressed by Council and the community about the needs in parks, maintenance, fields, and restrooms. Ms. Moreno informed Council staff would bring back recommendations for park maintenance at the next meeting for further discussion, with the total amount around $830,000 resulting from land remnant sales that occurred late last year and not available during the budget planning process. She then presented the upcoming budget calendar for next few months: departments were currently working on preparing their FYI 7/18 budget proposals, proposals would be reviewed with the City Manager over the next few months along with the strategic plan, review with the executive team in April, proposed budget document available online late May, budget workshops in June, with adoption anticipated for the June 20"' Council meeting. Council Member Moreno requested a summary of the proposed budget as soon as possible to allow public input by engaging residents through neighborhood district meetings. Additionally, he shared his observation of not hearing about any expansion of the park system or additional open space and requested information on staffing ratios and how that affects the services provided to assist residents. Council Member Murray thanked staff for breaking the budget down by neighborhoods and highlighting revenue sources, and reported the six-year stretch of structurally balanced budgets with restored cash reserves and increases to resident services. She also requested information on the median salaries for hotel workers, their benefits, and how many were Anaheim residents as well as a list of tax providers by industry, residential, and commercial. With no further comments offered, Mayor Tait concluded the workshop. ADDITIONS\DELETIONS TO CLOSED SESSION: Acting City Attorney Kristin Pelletier reported the two Closed Session items related to anticipated litigation related to unpaid Transient Occupancy Tax (TOT) owed by hotels under a recent court decision and to unpaid TOT from a Short -Term Rental (STR) that had gone out of business. PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None. CLOSED SESSION: At 4:31 P.M., Mayor Tait recessed to closed session for consideration of the following items: 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: One potential case. 2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: One potential case. 3. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick Name of Employee Organizations: Anaheim Municipal Employees Association Part - Time Unit City Council Minutes of February 7, 2017 Page 9 of 42 At 5:16 P.M., the council session was reconvened. INVOCATION: Reverend Kim Skilling, Anaheim First Presbyterian FLAG SALUTE: Council Member Dr. Jose F. Moreno PRESENTATIONS: Recognizing Andy Alison for his donation to the Heritage Center of the Anaheim Public Library (Dr. James Hovey Bullard M.D. Collection) Jane Newell, Heritage Services Manager, introduced Andy Alison and described the collection of materials he donated to the Heritage Center of the Anaheim Public Library on behalf of his family and early Anaheim residents, Theodore Schmidt and Dr. James Hovey Bullard, including diaries and medical journals. Mayor Tait presented Mr. Alison with a recognition on behalf of the City and another from Assemblywoman Sharon Quirk-Silva's office. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming February 19-25, 2017, as National Engineers Week Public Works Director Rudy Emami accepted the proclamation on behalf of the city's engineering staff, reporting engineering advances had added 30 years to the human lifespan. Proclaiming February 28 - March 5, 2017, as Peace Corps 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 AGENDA: City Clerk Linda Andal announced Item No. 27 was a duly noticed public hearing for an abandonment, with staff requesting the public hearing be continued to February 28, 2017. With no objection, Public Hearing Item No. 27 was continued to February 28, 2017. No further action taken. PUBLIC COMMENTS (all auenda items): 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 offered comments regarding Star Wars Land at Disneyland. Mark Daniels described the experience his group had spending the night outdoors on the steps of City Hall to bring attention to the plight of the homeless and requested the city seek assistance from the federal government to address this far-reaching issue. R. Joshua Collins read from the Bible, expressed concern for homeless individuals arrested at Maxwell park, disagreed with comments that personal property was not removed for 24 hours, requested an agenda item for him to share information, requested repeal of the camping ordinance, and shared information from a report by the National Law Center on Homelessness and Poverty that only 34% of 187 cities surveyed had a ban on camping in public. Additionally, he described a solution from Miami Dade County, FL, whereby a 1% tax on food and beverage City Council Minutes of February 7, 2017 Page 10 of 42 sales was dedicated to funding for homeless services and submitted a copy of the report to Council. Renee B. stated the homeless issue was an emergency that needed to be immediately addressed via safe zones in advance of the shelter opening in April. She requested repeal of the camping ordinance, defunding of the Homeless Outreach Team, and provision of mental health counselors and social workers, and separately, for the city to not hire Steve Lodge. William Fitzgerald, Anaheim HOME, commented on alleged false remarks about the removal of personal property and lack of action by the Council on homeless issues. Regarding Item No. 15, he requested the release of public records regarding water contamination in Anaheim. Jeanine Robbins submitted documents and referred to a Department of Justice report where it stated the homeless could not be criminalized if they had no shelter beds available and claimed beds in Fullerton and Santa Ana did not apply to Anaheim. She requested an audit of policies related to homelessness, repeal of the camping ordinance, information on how Homeless Outreach officers were trained, a safe zone on the Karcher lot, and a special workshop where updates could be provided. Bart Williamson informed Council about an increase in loud automobile exhaust pipes. Mayor Tait requested Acting City Attorney Kristin Pelletier look into the issue and provide information to Council. Mike Robbins cited an Orange County Register article that reported 200 homeless people died on the streets of Orange County in 2016, requested repeal of the camping ordinance, sought additional information on total costs to address homelessness including from the Fire Department and local emergency rooms, and requested facilities be set up on the Karcher property. Linda Lehnkering, Anaheim Poverty Task Force, advocated for the 'Housing First' approach of permanent supportive housing with wraparound services, requested interim assistance through bathrooms and showers, and asked for a city audit of costs and a special workshop on this issue to address questions. Lou Noble quoted the Bible, shared the experiences of various homeless individuals, and asked for camping sites to allow for safety and survival. Phillip Schwartze, spoke to Item No. 19, requesting experience be considered during appointments to boards and commissions, particularly the Planning Commission due to its effect on businesses, and suggested not replacing all commissioners at the same time but implementing a phased approach. Jim Cain, Anaheim Hills Community Council (AHCC), regarding Item No. 26, provided historical information about the city's Fourth of July celebration events and funding sources, stating any change to the current agreement with the Honda Center which resulted in $40,000 for the event could cause a loss of funding and potential cancellation of the events. In response to Council Member Moreno, Mr. Cain confirmed the Chamber of Commerce had provided approximately $250,000 over the past five years. City Council Minutes of February 7, 2017 Page 11 of 42 "The Cameraman" wished everyone a happy Black History Month and requested repeal of Ordinance No. 6281, as in his view money was being wasted trying to enforce a failed ordinance pertaining to marijuana. 'He provided suggestions for regulating dispensaries by controlling business permits when State law went into effect in 2018. Gretchen Shoemaker thanked the Council for recognizing Andy Alison and his generous donation regarding Anaheim's history. Bob Donelson offered comments on three issues: 1) Regarding Item No. 26, he recommended profits from fireworks sales should be evenly distributed amongst the non-profit groups; 2) He requested a homeless workshop at the community center to provide information and clear up misunderstandings about the types of services offered; and 3) disagreed with hiring Steve Lodge. Evelyn Nuno, William C. Velazquez Institute education and outreach coordinator, explained the Institute focused on research, surveys, and increasing the political and economic participation of Latino and underrepresented communities and was currently focused on climate resiliency projects such as revitalizing the Los Angeles River, exploring water conservation policies, and encouraging more local water sources, sharing more information could be found on their website: www.wcvi.orq/groagua2016. Trevor O'Neil, AHCC Chairman, spoke to Item No. 26, explaining the Fourth of July events were coordinated through private funding without city subsidy and provided events for over 30,000 residents. He further explained that 60% of the event's funding came from sponsorships and corporate donations and 40% came from the agreement with the Honda Center regarding citywide fireworks sales, requesting any changes to the current method of sales should include a mechanism to support the Fourth of July traditional events. In response to Mayor Tait, Mr. O'Neil explained the entire event cost approximately $100,000, fireworks being about $25,000 alone, and funding was received from private donations, about $10,000 from sponsorships and runner fees for the 10k race, and $40,000 from the Honda Center through the Anaheim Community Foundation as part of the current fireworks sales agreement. Tamara Jimenez, Anaheim Lighthouse, thanked Council, the Police Department, and the Fire & Rescue Department for supporting and implementing the Drug Free Anaheim program, noting their organization was proud to have served the first program participant. Vern Nelson expressed disappointment that a special meeting had not yet been called to address homelessness, questioned disparities in statements regarding confiscation of property, described his experience camping at City Hall, and shared his wish that additional assistance for the homeless would have been presented at the State of the City address. Donna Acevedo -Nelson informed Council she came to meetings to stand up to bullies, questioned where homeless individuals could find shelter and restrooms in the middle of the night, and addressed officer -involved shootings. Martin Lopez questioned why camping before Black Friday or a large parade was allowed but not allowed for homeless people; requested a special meeting or workshop on the issue, repeal of the camping ordinance, and provision of safe zones and restrooms; and expressed opposition to hiring Steve Chavez Lodge. City Council Minutes of February 7, 2017 Page 12 of 42 Theresa addressed the homeless issue by sharing she did not see movement by the city within the 10 -year plan to end homelessness, reported a lack of affordable housing developments, a 7 - year waiting list for Housing Authority vouchers, and encouraged Council to experience homelessness firsthand. Mayor Tait highlighted City actions including the Coming Home Anaheim initiative through which about 680 people were no longer living on the streets, the opening of Rockwood Apartments in conjunction with Jamboree Housing, the Drug Free Anaheim program to address addiction, a forthcoming emergency shelter similar to Potter's Lane, and support and financial contributions to the first County homeless shelter. Victoria Michaels, District 3, invited anyone interested in the homeless issue to the next meeting of the Anaheim Republican Assembly meeting on February 15, 2017 at 7 P.M. at the Phoenix Club for a panel discussion by Tim Houchen, Lou Noble, Kristine Ridge, Lt. Craig Friesen, and a representative from CityNet. David K. brought Council's attention to an alleged epidemic of hit-and-run accidents in Anaheim and throughout southern California, which in his view had drastically increased over the last three years. Nancy West described her experiences camping at City Hall and requested the city stop criminalizing homeless people. Brian Chuchua, regarding Item No. 26, suggested allowing non -profits to distribute or post their flyers at the sales stand to increase their fundraising efforts. Brian Kaye submitted documents and described his interactions with the Police Department. Luis Zuniga, District 3, shared his view regarding Item No. 26 that fireworks were bad for the environment and affected air and water quality. Regarding the homeless, he suggested the Harbor Blvd. site as a temporary safe zone to help alleviate camping in the parks. Greg Diamond echoed Mr. Chuchua's comments to let non -profits share the fireworks fundraising, asked Council to investigate the removal of property from homeless people and allow them to sleep overnight in ARTIC, suggested postponing Item No. 21 regarding agendizing power until November 2018 to allow for review of previous Council comments on the issue, and suggested a possible conflict of interest with hiring Steve Lodge due to his work for Hill International. Esther Wallace, WAND Chairperson and Magnolia School District Trustee, spoke to Item No. 19 and suggested retaining some commission members to provide history and experience. Regarding Item No. 25, she claimed both Maxwell Park and Brookhurst Park were shared between District Nos. 1 and 2 due to their physical location on the district boundaries of Magnolia Avenue and Crescent Street, effectively reducing the number of park acres specific to District No. 1, and submitted written comments with more details. COUNCIL COMMUNICATIONS: None. City Council Minutes of February 7, 2017 Page 13 of 42 CITY MANAGER'S UPDATE: Paul Emery, City Manager, highlighted upcoming workshops: Review of the Public Safety Board and Introduction of the Sunshine Ordinance tentatively scheduled for February 28; and the Fire Department Strategic Plan tentatively scheduled for March 7. He reported a County representative would be requested to attend the next meeting to address homelessness and he also provided an update on the conditions of Beach Blvd. and Ball Rd., including the former Lyndy's Motel which was experiencing a problem with its lender and a reciprocal access agreement with the adjacent gas station, noting, however, that Code Enforcement and the City Attorney's office were working with the property owner on clean-up, security, and fencing issues. At 7:13 P.M., Mayor Tait recessed the City Council to address the Anaheim Housing Authority agenda and reconvened the City Council at 7:22 P.M. CONSENT CALENDAR: At 7:22 P.M., the consent calendar was considered with Council Member Moreno pulling Item Nos. 05 and 10 for further discussion and Mayor Pro Tem Vanderbilt pulling Item No. 09. Council Member 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 to each city council member and as listed on the consent calendar, seconded by Council Member Faessel. Approved Vote: Ayes — 7: (Mayor Tait and Council Members: Vanderbilt, Murray, Barnes, Moreno, Kring, and Faessel). Noes — 0. Motion Carried. 8105 4. Receive and file minutes of Sister City Commission meetings of October 24, 2016 and November 28, 2016 and Public Utilities Board meeting of December 14, 2016. 6. Authorize a Hearing Officer to hear and opine on Public Contract Code and other D175 construction contract -related disputes, with the exception of financial claims formally filed with the City, appoint the Purchasing Agent as Hearing Officer and the Audit Manager as alternate Hearing Officer, and delegate authority to manage and oversee the duties and functions of this appointment to the Director of Public Works, or designee, with support and guidance from the City Attorney's Office. D180 7. Accept the bid from Mr. Window Cleaning, in an amount not to exceed $92,360, to provide interior and exterior window cleaning services at various sites throughout the City, 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 #8763. 8. Approve an agreement with Virtual Hold Technology, LLC, in the total amount not to AGR- exceed $32,000 for the first year and $27,000 per extension year, for a virtual hold 10453 customer queueing and call back software system for one year with five one-year optional extensions 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 February 7, 2017 Page 14 of 42 C280 11. ORDINANCE NO. 6394 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2014-00275; DEV2014-00130) (5055 East Short Street; rezoning from the Transition Zone to the RS -3 Single -Family Residential Zone) (Introduced at meeting of January 24, 2017, Item No. 17). C280 12. ORDINANCE NO. 6395 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2016-00296; DEV 2016-00027) (1525 South Euclid Street; rezoning property from Transition Zone to the RM -3 Multiple -Family Residential Zone) (Introduced at meeting of January 24, 2017, Item No. 18). M142 13. ORDINANCE NO. 6396 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM establishing the campaign contribution limit for the election cycle commencing January 1, 2017, pursuant to Anaheim Municipal Code Section 1.09.050 ($1,900 to $2,000) (Introduced at meeting of January 24, 2017, Item No. 19). D114 14. Approve minutes of the City Council meeting of October 18, 2016. END OF CONSENT CALENDAR 7:22 P.M. D116 5. Approve proclamations recognizing Honor Guards of America for their community engagement efforts in Anaheim, Young Kim, former 65th District Assemblywoman, for her years of service to the residents of Anaheim, Peter Surowski, owner of Pete's Music Shop, for 30 years of business in the City and his contributions to youth music programs in the community, Sister Johnellen Turner and Sister Sandra Rees for 50 years of service to St. Catherine's Academy, and the House of Blues Grand Opening. City Manager Paul Emery announced this was a recurring item to approve Council requests to recognize individuals, groups and organizations for their achievements and/or contributions to the Anaheim community. DISCUSSION: Council Member Moreno voiced his concern about providing a proclamation to Assemblywoman Young Kim as he believed some proclamations were taking on a political/electoral tone as well as that proclamations should be presented to those who had served their community for several years, not just two years as in this instance; further stating he would not support this proclamation. Council Member Murray reported the Council acknowledged elected officials and volunteers in the past and this was simply an official thank you for Ms. Kim's service to her community during her tenure in office. Mayor Pro Tem Vanderbilt questioned if other Assembly Members, such as Assemblymen Don Wagner or Chris Norby, have received proclamations with Deputy City Manager Greg Garcia explaining it was not the practice to automatically recognize former members but that Lou Correa has been recognized for his service in the State Senate upon the request of a Council Member. Council Member Murray stated she would be agreeable to drafting a proclamation for former Assemblyman Don Wagner as well the other assembly members who left office in the last cycle. City Council Minutes of February 7, 2017 Page 15 of 42 MOTION: Council Member Kring moved to bifurcate the item and approve all recognitions with the exceptions of the proclamation recognizing former 65"' District Assemblywoman Young Kim, seconded by Council Member Murray. APPROVED VOTE: 7-0. Motion carried. DISCUSSION: Council Member Barnes stated her concerns as the proclamations were signed by all Council Members, thus the perception that they all advocated for the proclamation. In response, Council Member Murray confirmed the proclamations were a way of saying thank you for their services to the community. Council Member Moreno clarified he was not singling out any individual but preferred to assign deeper meaning to proclamations and avoid any political motivations, further explaining each Council Member could issue their own certificates of appreciation and gratitude to anyone they chose. MOTION: Council Member Kring moved to approve the recognition of former 651' Assemblywoman Young King, seconded by Mayor Tait. APPROVED VOTE: AYES — 6 (Mayor Tait and Council Members Vanderbilt, Barnes, Kring, and Faessel); NOES —1 (Council Member Moreno). Motion Carried. AGR- 9• Award the contract to the lowest responsible bidder, Asplundh Construction Corporation, 10454 in the amount of $7,139,000 for the Anaheim Resort Electric Line Extension Project and authorize and direct the Finance Director to execute the Escrow Agreement pertaining to contract retentions. RESOLUTION NO. 2017-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the Mitigated Negative Declaration and Mitigation Monitoring Plan No. 2016-006 for the Anaheim Resort Electric Line Extension Project supported by those findings required by the California Environmental Quality Act. Council Member Barnes declared a conflict and left the dais at 7:34 P.M. Dukku Lee, Public Utilities General Manager, reported the project consisted of construction of high-voltage lines that would serve the Disneyland Resort expansion, with reimbursable construction costs of the bid amount of $7.1 million for construction, electrical materials, engineering, inspection, permits, etc. He further explained that developers could choose between two options to obtain electrical services; 1) Public Utilities would install the infrastructure in public roadways and be reimbursed, as chosen in this current project and recently with the Kaiser Hospital on La Palma, or 2) the developer would construct the infrastructure themselves and transfer ownership to the City upon completion, inspection, and approval. He added by utilizing public contracting the City could exercise better control over the contractor and could withhold payment if the construction did not meet utility standards or public works roadway specifications, assess liquidated damages for non-performance, address public concerns and customer issues more expeditiously, ensure that prevailing wage was paid, and validate that the contractor has posted the requisite bonding and insurance to perform the work. Mr. Lee concluded that construction work for this project was expected to be completed in approximately 21 months. DISCUSSION: Mayor Pro Tem Vanderbilt questioned the use of various substations as depicted on Attachment No. 6 to the staff report to increase reliability and provide back-up, with Mr. Lee clarifying that Switching Stations No. 13, 14, and 15 on the map were not new substations but scaled-down versions on Disney's own property to serve as the points of connection within the City Council Minutes of February 7, 2017 Page 16 of 42 Disney Resort to transfer power to their attractions. Mr. Lee further explained the switching stations took power from existing substations and were not dependent on a new substation, but a new substation was currently in the bid process, would serve all the major developments in the Platinum Triangle, including the new load from LT Platinum, and would provide operational reliability. MOTION: Council Member Faessel moved to approve Item No. 9, including a RESOLUTION to adopt the Mitigated Negative Declaration and Mitigation Monitoring Plan No. 2016-006 for the Anaheim Resort Electric Line Extension Project supported by those findings required by CEQA, seconded by Council Member Murray. APPROVED VOTE: AYES — 6: (Mayor Tait and Council Members Vanderbilt, Murray, Moreno, Kring, and Faessel); ABSTAIN —1 (Council Member Barnes). Motion Carried. Council Member Barnes returned to the dais at 7:40 P.M. 10. Approve the Lease Agreement with Orange County Water District, Lease Agreement AGR- with Orange County Flood Control District, and License Agreement with Southern 10455 California Edison to develop a nine -acre passive recreation/nature park as the northern extension of Anaheim Coves located west of the Santa Ana River between Lincoln AGR- Avenue and Frontera Street; authorize the Community Services Director, or his 10455.1 designee, to act as the agent on all matters concerning the Lease and License Agreements and to take such actions as are necessary, advisable or required to AGR- implement and administer the Agreements and authorize de minimis changes that do 10455.11 not substantially change the terms and conditions of the Agreements approved hereby, as determined by the City Attorney's Office; authorize the Community Services Director and the Planning Director, or their designees, to waive the cost of staff time and associated fees for a General Plan Amendment/Rezoning request by the Orange County Water District; and approve in the naming of the entire park as Anaheim Coves (continued from January 24, 2017, Item No. 14). RESOLUTION NO. 2017-016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Mitigated Negative Declaration and Mitigation Monitoring Plan No. 341 for the Anaheim Coves Northern Extension Project and making the required environmental findings pursuant to the California Environmental Quality Act (CEQA) (continued from January 24, 2017, Item No. 14). Mayor Tait declared a conflict and left the dais at 7:40 P.M. Brent Dennis, Community Services Director, reported Anaheim had worked on this multi -agency initiative for two to three years to address park shortages by adding an additional nine acres to the existing 14 acres known as Anaheim Coves through three separate agreements: 1) Southern California Edison —1.2 acres; 2) Orange County Flood Control District —1.5 acres; and 3) Orange County Water District — 6 acres. He highlighted community use and enjoyment of the area and acknowledged the city would inherit some maintenance responsibilities of the additional acres with budgetary impacts reflected in the staff report. He explained some professional courtesies were negotiated throughout the cooperative process with the other agencies including fee waivers. Mr. Dennis thanked staff for obtaining nearly $2 million in grants to help fund the development, further stating the project needed to start in late spring to meet certain stipulations of the grants and critical deadlines and shared illustrations of park amenities such as the children's park or playground, focus on the environment and native habitats along the river and City Council Minutes of February 7, 2017 Page 17 of 42 waterway corridor, healthy aspects for recreational walking and biking, and commuter capabilities. He concluded staff requested Council approval of three lease agreements, with increased maintenance responsibility for the department expected to cost $65,000 annually and annual lease payments of $7,500 to Orange County Flood Control District and $1,356 to Southern California Edison. DISCUSSION: Council Member Moreno thanked staff for their inter -agency work to bring more open space and amenities to residents and explained he had pulled this item to obtain additional clarification about this project and any relation to the Ball Road Basin property and the maintenance of open space and/or a sports complex in lieu of commercial zoning. Mr. Dennis explained any re -zoning would go through the standard process with any final decision made by Council, and that one sports park proposal along the corridor could include at least four soccer fields with the possibility of underground parking and other important amenities, provided enough funding was secured. City Manager Paul Emery further explained the current actions did not preclude any future action for what was considered at the Ball Road Basin and included waiving fees for the Orange Counter Water District to process their application. He confirmed for Council Member Moreno that the waiver of fees did not create an expectation that re -zoning would be approved not preclude any future action by either the Planning Commission or City Council. Mayor Pro Tem Vanderbilt confirmed no zoning change was required for the bike trail as open space and questioned whether the City should also currently re -zone the surrounding area to open -space to facilitate the proposed soccer fields. Mr. Emery explained any re -zoning would call for separate Council action and the current action had no bearing on what the ultimate zoning would be, only for fees to be waived so that the property owner could process an application. He further explained should Council desire to have a more robust discussion on the future of the Ball Road Basin and what would be entailed in developing it as a sports park, that would have to be addressed separately from the current actions of approving lease agreements and waiving of fees, which he stated, the applicant could undertake with or without Council action at tonight's meeting. Mayor Pro Tem Vanderbilt expressed concerns with a provision in the staff report of a waiver of $37,000 worth of staff time to process the OCWD application regarding the Ball Road Basin in exchange for the bike trail area. Mr. Emery explained the fee waiver request was for the consideration process as any property owner could seek zoning amendments and did not dictate what ultimate decision would be made. He further noted staff was working professionally with the other agency to waive fees, taking into account the terms of the proposed lease and the long- term needs of the Anaheim Coves area. Mayor Pro Tem Vanderbilt explained the challenge in considering the sequence of proposed events regarding the lease agreement and fee waiver and stated his belief that it was counterproductive to offer a credit on processing an application for re -zoning that did not match the Council's interest in retaining open space for soccer fields. Mr. Emery responded the information has been included in the staff report for transparency and recommended an agenda item at a future meeting to discuss fiscal implications and opportunities in relation to the Ball Road Basin. Acting City Attorney Pelletier stated re -zoning of the Ball Road Basin was not relevant under the City Council Minutes of February 7, 2017 Page 18 of 42 current agenda item, but could possibly be discussed during Item No. 24 regarding full assessment of city parks and could be specifically agendized for a future discussion of what the city's intent was with respect to the Ball Road Basin project. In response to Mayor Pro Tem Vanderbilt, Mr. Dennis explained one extension had been granted for the active transportation grant as awarded in 2014-2015, but such extensions were difficult to seek and obtain. Additionally, in terms of urgency, Mr. Dennis explained continuation of the item by Council would change terms of the agreement and require OCWD to pull the item from their agenda, which was set for consideration the following week, and cause everything to be moved back onto meeting calendars for both agencies. Mr. Dennis suggested Council at least consider approval of the CEQA portion which would allow important parts of the project to move forward and support the efforts and hard work of the staff over the past several years. MOTION: Mayor Pro Tem Vanderbilt moved to approve Item No. 10 as recommended by staff, with the exception of paragraph 4 regarding the fee waiver, seconded by Council Member Barnes. DISCUSSION: Mr. Emery clarified for Mayor Pro Tem Vanderbilt that Item No. 4 had to do with costs of the reimbursement component but under previous action items there was the agreement with OCWD and, without the cost reimbursement agreement, the lease agreement could not take place. In response to Council Member Murray, Mr. Dennis explained a delay would cause staff to request another extension on the grant funding which could affect long-term credibility, an increase in time -frame, additional financial terms that may need to be re -negotiated with OCWD, and approximately eight weeks to be placed back on their agenda for consideration. He further explained the sensitivity in the terms with OCWD and staffs cooperative work to yield the terms and solutions currently being presented. Council Member Murray expressed concerns that by not moving forward, the agreement would be null and void, the process would re -set, and the County could reconsider the project in its entirety Council Member Faessel disagreed that waiving staff time regarding the proposed general plan amendment in any way caused the City to lose the Ball Road Basin as anything else other than a park, and the agreement with OCWD provided a courtesy whereby they had the opportunity to come before the City's Planning Department and move towards a rezoning, with ultimate decision to be made by Council. He stated his support for the recommended actions. While the sports complex was not currently under consideration, he hoped the City could find a way to support and afford it when it was ultimately proposed. He concluded that he did not support the current motion of excluding Item No. 4 as he believed it would jeopardize the plan and project to support the community. AMENDED MOTION: Council Member Faessel moved to approve Item No. 10, as presented, including, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Mitigated Negative Declaration and Mitigation Monitoring Plan No. 341 for the Anaheim Coves Northern Extension Project and making the required environmental findings pursuant to the California Environmental Quality Act (CEQA), seconded by Council Member Kring. DISCUSSION: Council Member Moreno requested assurances from the other Council Members that the site would remain open space in order to make it clear to staff and OCWD that the Council had no interest in rezoning that space from open space to anything else. Acting City Attorney Pelletier advised such discussion and action would require a public hearing under a separate agenda item and waiving fees did not preclude any future action on this and were City Council Minutes of February 7, 2017 Page 19 of 42 unconnected and said a vote should not be taken on the ultimate disposition of that property as it was against the Brown Act. Addressing Council Member Moreno, Council Member Faessel stated the plan for the property as a sports complex or open space was not currently clear nor budgeted for, stating action needed to be taken on the current item under consideration. Council Member Murray requested Mayor Pro Tem Vanderbilt, as the City's representative on OCWD, share the tone and temperament of the Council's discussion at the OCWD meeting; believed it worthwhile to have a future agenda item on what Council would like to see on the available parcels at a later date; and expressed her support for the item as a lot of time, energy, expense, and worthwhile public value was invested in its approval. In response to Mayor Pro Tem Vanderbilt, Planning Services Manager Jonathan Borrego explained discussion with OCWD included potential trade-offs of space through a proposed amendment to the general plan to ensure no net loss to the City of any open space. He further explained staff discussions included consideration of open spaces on other properties, including designations within the Coves project, highlighting work on the Northeast Area and Anaheim Canyon Specific Plans where several existing basins were re -designated to open space. He further stated no commitments had been made and staff had been careful all along not to make any commitments with respect to the Ball Road Basin and consideration of the fee credit as it related to the Ball Road Basin application in no way impacted the Planning Commission and City Council's decision on the Ball Road Basin. Mayor Pro Tem Vanderbilt expressed concerns with potential future arguments that open space had been conveyed even though it was already open space and a resultant loss of net acreage. He also requested assurances for public access to designated open spaces, and questioned the original zoning of the Coves, with Mr. Borrego replying it was a combination of water use and open space. Additionally, he explained any trade of open -space would likely be equal but no commitments have been made, noting previous gain of open spaces during previous work with OCWD in the Canyon, including an installation of a public trail around the water basin recently developed on the Pannatoni site. MOTION: Council Member Kring moved to call the question, seconded by Council Member Faessel. VOTE: AYES — 4 (Council Members Murray, Barnes, Kring, and Faessel); NOES — 2 (Mayor Pro Tem Vanderbilt and Council Member Moreno); ABSTAIN -1 (Mayor Tait). Motion carried. AMENDED MOTION: Council Member Faessel moved to approve Item No. 10, as presented, including RESOLUTION NO. 2017-016, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a Mitigated Negative Declaration and Mitigation Monitoring Plan No. 341 for the Anaheim Coves Northern Extension Project and making the required environmental findings pursuant to the California Environmental Quality Act (CEQA), seconded by Council Member Kring. APPROVED VOTE: AYES — 5 (Council Members Murray, Barnes, Moreno, Kring, and Faessel); NOES -1 (Mayor Pro Tem Vanderbilt); ABSTAIN —1 (Mayor Tait). Motion carried. Mayor Tait returned to the dais at 8:35 P.M. City Council Minutes of February 7, 2017 Page 20 of 42 D182 15. Receive and discuss information on groundwater quality. Michael Moore, Public Utilities Assistant General Manager, explained the City provided about 20 billion gallons of water each year to its customers, sourced from less than 1 % recycled water produced at the Recycled Water Plant for irrigation, 30% imported through Metropolitan Water District from outside the region, and 70% produced locally through 19 groundwater wells that pump water from ground basin. He said that the amount of water that is taken out of the water basin is managed by the Orange County Water District (OCWD), and Mike Wehner, Orange County Water District Assistant General Manager, would explain how the basin is managed in terms of supply and quality of the water that comes out of it. Mr. Wehner explained OCWD managed ground water quality through replenishment, by putting water in the ground, and by managing how much water could be extracted from the ground. He said they monitor and protect ground water quality of both the water that goes into the ground from the various sources of replenishment and the quality of the water at the various wells, monitoring wells and production wells that serve the users of the groundwater basin. He said the basin serves about 2.4 million people and provides about an average of 75% supply, holding about 20 trillion gallons of water but with a limited operating range of about 500 billion gallons of water, which this gives them the ability to try and avoid problems like subsidence from over drafting the basin. He explained how the operations of OCWD control the quality of water going into the ground through percolation basins in Anaheim and Orange and through reliance on the soil aqua treatment process, a natural process to purify the water from the Santa Ana River, imported water, and rainfall. He continued that advanced purification of recycled water required minerals be added back into the water, prevented seawater intrusion, and improved groundwater quality by removing bacteria, protozoa, micro-organisms, viruses, and chemicals; further tested by the Advanced Water Quality Assurance Laboratory. DISCUSSION: In response to Mayor Tait's question about the quality of water received by Anaheim homeowners and businesses, Mr. Wehner explained they had extensive monitoring systems and were regulated by the State Water Resources Control Board, the Regional Board, and the Division that regulates drinking water supply. Dukku Lee, Public Utilities General Manager, added that in addition to the OCWD testing, the City performed its own testing on the City's water system and the pipes through which water flowed to customers, with the information posted in the Annual Water Quality Report. Mr. Lee confirmed for Mayor Tait that all water supplied to customers was tested by OCWD, tested by the City, and also disinfected by the City. Regarding MWD water imported from the Colorado River for the California Water Project, Mr. Lee stated it was treated and that any untreated water that was purchased went to the filtration plant for treatment and disinfection. Mr. Wehner stated OCWD monitored the ground water quality extracted from the basin with Anaheim providing disinfection and managing the distribution system. He added chloroform testing was done to look at the microbial quality of the water in the distribution system as well as other testing like disinfection for by-products, lead, and copper. In response to Mayor Tait, Mr. Lee addressed the issue surrounding the dental clinic and reported the Orange County Health Care Agency indicated there was something on the dental clinic side as they provided another set of filtrations for their purposes and that was when their issue arose. He continued that there were minerals in the drinking water which may not be pertinent for dental clinics which may need to be removed to meet dental standards, but the water supplied by the City was disinfected and tested. Mr. Lee reported the water testing system for both OCWD and City Council Minutes of February 7, 2017 Page 21 of 42 the City met the Federal and State standards and the testing procedures must be reported and be audited. Mr. Lee responded to Mayor Tait's question regarding a request for public records, that the request sought records pertaining to information within the dental clinic as referenced in an article from the Orange County Register, and as the City did not have information regarding systems inside the dental clinic, there were no records to provide in that respect but that water quality information which had a summary of City's testing procedure and testing results was produced. He continued that reports from within the clinic itself could be obtained from the County Health Agency and the American Dental Association. Mayor Pro Tem Vanderbilt asked if water was also tested randomly from customer's faucets in homes or businesses, to which Mr. Moore answered that over 44,000 tests were done each year, some of which were conducted daily and some monthly, with most tests taken at 50 static stamping sites throughout the city, but also on-site residential tests performed for lead and copper at select homes and analyzed at no cost to the residents. In response to Council Member Faessel, Mr. Lee answered the City was not aware of any additional dental clinics with water quality issues. Mr. Wehner reported no other dental clinics has reported similar problems to the Health Agency. Mr. Moore further confirmed for Council Member Faessel that the City's water supply was the same in the vicinity of the dental clinic as provided throughout the city. Mayor Tait reported no action was needed as this item was a discussion for public information. D114 16. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the City Manager to enter into certain agreements for and on behalf of the City when the amount does not exceed fifty thousand dollars and amending Council Policy 4.1 accordingly (continued from January 24, 2017, Item No. 20). DISCUSSION: Council Member Faessel reported his research that the Metropolitan Water District has a $250,000 authority for their general manager to approve contracts without board consideration and then questioned, if this item was approved, what would occur with professional services agreements for contracted Council aides which exceeded $50,000, to which City Manager Emery replied the agreements would have to come before Council for review. Council Member Faessel stated his concurrence with the current cap for City Manager authority at $100,000. Council Member Kring reported the each council member currently had a budget up to $71,000 for aid purposes; stated RFPs over $20,000 were posted on the website for transparency purposes; noted the Purchasing Manager had an approval limit of $100,000; and provided her opinion that reducing the City Manager's authority from $100,000 to $50,000 was not warranted and would negatively impact City business. Mayor Tait responded that his vote would be about policy, rather than an individual City Manager, and thought it reasonable to have a $50,000 limit to allow more public review of larger contracts. In response to Mayor Tait, City Manager Emery reported he had signed 31 contracts between $50,000 and $100,000 over the past year which would average about three items monthly that would come before Council for consideration if the limit was reduced. Mayor Tait referred to an approximately $70,000 contract pertaining to a proposed performing arts center on the Stadium parking lot which was executed by the City Manager but for which he had no prior knowledge and City Council Minutes of February 7, 2017 Page 22 of 42 believed public debate and awareness was not unreasonable, further stating most contracts would likely come forward as part of the consent calendar. Mayor Pro Tem Vanderbilt stated he had not previously considered Council Member Faessel's question regarding Council aide contracts and thought it may be possible to remove that type of contract from this policy. He referred to the data of how many contracts may be considered by Council and stated he believed it provided transparency and, like any other issue, thought the policy should be discussed and decided by Council. Council Member Kring reported the consultant contract for the Performing Arts Center was approved in 2014, prior to Mayor Pro Tem Vanderbilt's election to the Council, referenced several consent calendar items which had been pulled recently and resulted in lengthy discussion, and reiterated she did not support lowering the signing amount for the City Manager. MOTION: Council Member Kring moved to deny Item No. 16, seconded by Council Member Murray for discussion purposes. DISCUSSION: Council Member Murray stated she understood Mayor Pro Tem Vanderbilt's concern with reviewing and establishing public policy, and further stated that this comes down to the process whereby the City has a charter in place that dictates a Council -Manager form of government with Council setting the budget and general policy and hiring and entrusting staff to run the day-to-day operations of the City and with that comes authorization in order to do so. She expressed her support of Council Member Kring's motion because she felt there was not a high enough bar of objectionable issues with the existing authority that was set to necessitate a wholesale policy change. Council Member Moreno thanked Mayor Pro Tem Vanderbilt for bringing this item forward and stated his support, referencing a lower authority limit at the school district which did not interfere with the work being done. He believed this action did not mean a lack of trust in the City Manager but would provide appropriate oversight by the Council in their service to the public and did not believe three additional staff reports per month was excessive, further believing the Council aide contracts should be agendized for public awareness. MOTION: Council Member Kring moved to deny Item No. 16, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the City Manager to enter into certain agreements for and on behalf of the City when the amount does not exceed fifty thousand dollars and amending Council Policy 4.1 accordingly, seconded by Council Member Murray. VOTE: AYES — 3 (Council Members Murray, Kring, and Faessel); NOES — 4 (Mayor Tait and Council Members Vanderbilt, Bames, and Moreno). Motion failed. MOTION: Mayor Pro Tem Vanderbilt moved to continue Item No. 16 to February 28, 2017 to allow discussion of making an exception for Council aide contracts, seconded by Mayor Tait. APPROVED VOTE: 7-0. Item No. 16 was continued to February 28, 2017. D175 17. Review and discuss Resolution No. 88R-124, which delegates authority to the Director of Public Works to execute change orders on behalf of Public Works and establishes limitations in an amount not to exceed $10,000 or 10% of the total contract price, whichever is greater, and provide direction to staff regarding matters related to the authority granted within said resolution (continued from January 24, 2017, Item No. 25). Rudy Emami, Public Works Director, reported Council previously unanimously approved Resolution No. 88R-124 that delegated authority to the Public Works Director to execute change City Council Minutes of February 7, 2017 Page 23 of 42 orders up to the greater of $10,000 or 10% of the contract award under the premise that change orders were necessary and desirable for public safety and benefit, formalizing an established administrative practice that was already in place for 30 years to avoid delay costs to the city and impact and delay on completing the construction. Mr. Emami continued that the Public Works Department administers and manages diverse construction projects for city infrastructure and consistent with California Public Contracting Code, and shared survey data that other California cities with public utilities showed a contingency range of 10% to 25% implemented for change order authorization. He also shared an analysis of Anaheim's projects completed in the past year and information on checks and balances currently in place thorough documentation of the change order and three -party review prior to approval of the change order. Additionally, he reported the department was subject to both internal and external audits by State and Federal regulatory agencies for funding reimbursement and no findings were detected on the administrative procedures for change order approval. He explained before the change order was presented to the Director of Public Works, it was reviewed by staff at various levels who were involved in the project, with benefits of the current process helping the city to act in a timely and efficient manner to avoid potential delays, unnecessary costs, and negative impacts that would be caused by such delays. Mr. Emami concluded his presentation by offering suggestions to limit individual change order signing authority to $250,000 to $400,000, posting all change order information on line, and additional review and approval by the City Manager over the Director's limits. DISCUSSION: Council Member Moreno explained this was brought forward following concerns expressed by a resident and thanked staff for reviewing the topic with him and providing a thoughtful set of solutions to modify this resolution and maintaining it at 10% overall project limit but if a change order went over a certain amount, the limit could be discussed by Council, recommending $50,000 as a low threshold. Council Member Faessel suggested a cap of $250,000 in similar fashion to the Metropolitan Water District. Dukku Lee, Public Utilities General Manager, explained the current cap was 10% on a contract award and the recommendation by Mr. Emami was a $250,000 individual change order limit and, if exceeded, such change order would have to be brought before the City Council. Mayor Pro Tem Vanderbilt requested additional clarification, citing for example a $10 million dollar project where 10% would be $1 million. Mr. Emami explained staff was seeking authority for the Public Works Director to approve individual change orders up to $250,000 and should there be four change orders of that amount then anything after that, even $1, would have to be brought to Council for approval. Additionally, after the first two change orders were approved and hit $500,000, additional approval by the City Manager would be required so that the City Manager was aware that they were getting at the halfway mark of the contingency. Mr. Emami further confirmed for Mayor Pro Tem Vanderbilt that the focus was on excessive change orders and large projects in order to keep projects moving efficiently but providing for Council awareness of momentous changes, clarifying that in the previous example a change order of $260,000 would require Council approval. Council Member Moreno expressed concern that under the current policy on a $10 million project, the Public Works Director had the authority to do a change order of $1 million with no Council awareness, to which Mr. Emami restated the checks and balances process that was undertaken before it came to the Public Works Director for approval. Council Member Moreno explained that some change orders needed to be implemented within a brief period to avoid raising the cost of the project, so if it was over a certain limit, approval could sought from the City Manager who City Council Minutes of February 7, 2017 Page 24 of 42 would then report it to Council at the next meeting, which would avoid delay of the project and require two authorized signatures to approve change orders of this limit. Mr. Emami explained staffs recommendation for additional approval was in the range of $250,000 to $400,000 and what the Council was comfortable with, where if the minimum of the range was selected for the Director's authority of $250,000, anything above $250,000 up to $400,000 would require City Manager approval, but anything above $400,000 or once the 10% threshold was reached, would have to come to Council for approval. This, he said, would give a tiered approach but recommended that anytime 50% of the contingency was reached, staff would notify the City Manager and a report would be made to Council as well. Acting City Attorney Pelletier recommended memorialization of the discussion via future action and City Manager Emery suggested Council had provided enough communication through the discussion for staff to bring back options in terms of moving forward. No additional action was taken by Council. 8105 18. Appoint or reappoint representatives to serve on the Anaheim Union High School District Foundation, for a one year term ending December 31, 2017 (currently held by Mayor Tait, Mayor Pro Tem Vanderbilt, and staff, Tom Morton) (at least two appointments, no more than three). APPOINTMENT: Mavor Tom Tait APPOINTMENT: Mavor Pro Tem Vanderbilt MOTION: Council Member Kring moved to appoint Mayor Tait and Mayor Pro Tem Vanderbilt to serve on the Anaheim Union High School District Foundation, seconded by Mayor Tait. DISCUSSION: Mayor Tait questioned whether three appointments could be made with Mayor Pro Tem Vanderbilt explaining the Foundation Board was considering modifying their bylaws to reduce the total number of members so they were more likely to have a quorum for their meetings and said he had received requests from a few people that he would like to nominate. City Clerk Linda Andal explained the Foundation reorganized their Board. Currently the Anaheim City Council had three appointments to that Board and the Foundation did not want to remove an appointment from this Council and instead left it up to the Council to decide, so that by appointing two members the Council would signal to the Foundation their acceptance of having just two appointments and the transfer the third appointment to the Foundation and the Foundation would subsequently amend their bylaws accordingly. Mayor Pro Tem Vanderbilt explained he struggled to understand how Council made appointments to a private foundation and thought Council Members could be appointed independent of formal action. He suggested if he could nominate a couple of individuals who expressed an interest for the two seats so they could move forward and he could approach the Foundation separately and ask if they would be interested in putting him on the Board as a private citizen not a member of Council. Mayor Pro Tem Vanderbilt explained it wasn't that he wasn't interested in serving on the board but that he was concerned with Council appointing to a private entity. Mayor Tait suggested moving forward with the current appointments so the Foundation could continue to meet but acknowledged good points raised by Mayor Pro Tem Vanderbilt that could City Council Minutes of February 7, 2017 Page 25 of 42 be considered at a later date. Ms. Andal confirmed an appointment was necessary but recommended Mayor Pro Tem Vanderbilt still meet with the Foundation Board as he recommended. She further explained the Board restructured their Foundation to assist with obtaining a quorum at their meetings and were hopeful that this Council would release one of their appointments and also removed the mandate that one of the appointments be a sitting Council Member. She said at this juncture, the Council could appoint any resident or city employee, per Council policy, whereas previously the Foundation's bylaws required that the representative be a member of this Council. MOTION: Council Member Kring moved to appoint Mayor Tait and Mayor Pro Tem Vanderbilt to serve on the Anaheim Union High School District Foundation, seconded by Mayor Tait. APPROVED VOTE: 7-0. Motion carried. 19. Review the composition of all City Council appointed boards and commissions, which includes discussion and direction to staff relating to the terms of office, the manner in B105 which members are appointed by Council, eligibility requirements, duties and any other actions related to changes to city boards/commissions, including dissolution of the Community Center Authority and the transition of members, as applicable (Budget, Investment and Technology Commission, Community Center Authority, Community Services Board, Cultural and Heritage Commission, Housing and Community Development Commission, Library Board, Parks and Recreation Commission, Planning Commission, Public Utilities Board, and Sister City Commission) (continued from January 24, 2017, Item No. 22). DISCUSSION: Mayor Tait explained he brought forward discussion of the way Boards and Commission members were appointed in response to the Measure M vote of the people who voted for district elections, as roughly 70% of the people voted for district elections in every single precinct, and he thought for consistency in governance it made sense to allow each Council Member to appoint someone from their district to serve on each board and commission. He continued, for the next two years, the remaining at -large council members and mayor could appoint the remaining members with the process finalized after the 2018 election. He added the board and commission members would serve at the pleasure of their appointing council member with a coinciding term of service. Council Member Faessel expressed his concern was doing the right thing while ultimately arriving at representation from each district, but he was not supportive of removing all members simultaneously and preferred a transitionally, phased approach. He presented Council a proposal that displayed the current positions held by members on each Commission, which districts they fell under, when their terms would expire, and a proposed cycle of them being replaced by new appointees. He explained by combining the vacancies that would come in 2017 and 2018 and vacating those positions would give them across the 10 commissions at least four slots that could be immediately appointed while keeping three individuals in place for some institutional memory, as in his opinion, there was a steep learning curve on certain boards especially the Budget, Investment & Technology, Public Utilities, and Planning board and commissions. He detailed the process for each commission, stated he did not have a clear plan for the Sister City Commission, and asked Council to consider his proposal to retain institutional knowledge while meeting the mayor's desire to have each member appoint someone from their district. Mayor Tait thanked Council Member Faessel for his proposal and the thought behind it, but said this was a simple question of whether the Boards and Commissions would reflect the will of the people to govern by districts, especially to allow representation from areas of the city that had City Council Minutes of February 7, 2017 Page 26 of 42 historically been under represented. Mayor Tait said he would encourage every board and commission member to reapply and suggested leading contenders could be appointed by any Council Member. MOTION: Mayor Tait moved to change the method in which Boards and Commissions were appointed as follows, exempting the Sister City Commission and Library Board: each district council member shall have one appointment; priority review shall be given to incumbents, if the incumbent is within the member's district, second priority shall be given to district applicants, thereafter review of applicants regardless of district residency; remaining seats on each commission shall be appointed by a majority vote of the entire Council; adjust all commissions to seven member commissions; increase membership of the Housing and Community Development to nine to account for two tenant member seats, create term limits to coincide with the elected, appointing member; and allow all current commission members to reapply, seconded by Council Member Barnes. DISCUSSION: Council Member Moreno thanked Council Member Faessel for his thoughtful alternative proposal and requested modification of two items to the motion on floor to exempt the Sister City Commission and for assurance that every Council Member gave a priority review to existing Commission Members if they were in their districts to keep continuity, both of which were incorporated by Mayor Tait in his preceding motion. Council Member Murray questioned the timeline of changing the current membership of the boards and commissions. City Clerk Linda Andal responded that the Code provided that Council could remove a member at any time or release them from service and that after any action at this meeting staff would need return with various ordinances to ensure that the elements that were outlined in the motion were considered, which could occur as early as March 7th. She continued, with the ten commissions, it would take work to articulate the specific language and ensure that the transition was affected properly, if introduced on March 7th the ordinance could be adopted on March 21St with an effective date of April 201h and appointments made as early as April 251. She also sated staff may need to return to Council to have them relieve current commission members from their seats unless such members chose to resign and following introduction of the ordinances in March, the City Clerk's office could reach out to individual commission members and share the Council's actions. Council Member Murray stated she did not support this action, viewing it as unappreciative of volunteer efforts and a loss of historical knowledge and efficiency of government due to the need for members to become acquainted with their duties and functions. She expressed her appreciation for the time Council Member Faessel spent on his proposal as a middle ground and questioned the extent to which districting governing could be taken, referencing the budget and capital improvements, stating the Council still had an obligation to govern holistically on behalf of all residents and to lookout for the welfare of the city and the functioning of the city as a whole. Mayor Tait responded this was in consideration of the will of the people and to get geographic representation, specifically citing the Planning Commission which currently had representatives from only District Nos. 3 and 6 while deciding land use for the entire city. Council Member Vanderbilt said he would consider Council Member Faessel's proposal as empowering the district -elected council members especially if there might be consensus. Council Member Kring stated she could not support the mayor's proposal, expressed concern with finding volunteers for the at -large and District No. 3 positions as they would only have two- year terms, offered support for Council Member Faessel's proposal as a transition and middle ground, and did agreed with dissolving the Community Center Authority as it had outdated itself. City Council Minutes of February 7, 2017 Page 27 of 42 Council Member Faessel stated that under his proposal each commission would have an appointment from District Nos. 1, 3, 4 and 5 with their anniversary dates consistent with the newly elected members of the Council, and the only difference that his proposal had from the Mayor's was a suggestion to keep three members on most commissions to keep institutional knowledge with terms considered in 2018. Council Member Barnes questioned the efficacy of the Budget, Investment & Technology Commission as she believed they met infrequently due to a lack of quorum and suggested it possibly be disbanded, expressing concerns with the posting of meeting dates. Council Member Moreno stated under the current system District No. 3 greatly benefitted but he believed in the intent of district elections. Ms. Andal confirmed for Council Member Moreno that applications were kept on file for two years at which time applicants were contacted to determine continued interest in being considered for appointment. He expressed concern with Council Member Faessel's proposal as applying to only half the board and commission members as well as not allowing the mayor any appointments, and offered support for the mayor's motion. Council Member Murray stated Council Member Faessel's proposal kept members with longer terms and was structured in a manner to allow the new district elected representatives an immediate appointment, while allowing some continuity. She disagreed with the assertion that voters meant to apply district -based decisions to all aspects of the city, further stating the vote was 70% of the electorate in the election not 70% of the total population. She further stated there should be policies in place which were enforced regarding attendance and that as the Boards and Commissions needed to serve the people and if time did not permit them to participate, they needed to be gracious and step down and give an opportunity for another person to step into that role. She said, in her opinion, Council Member Faessel's proposal was well structured, well thought out, and an effective middle ground approach that allowed newly elected members to have an appointment and allow some continuity and offered her support. Mayor Pro Tem Vanderbilt questioned the next steps in the process to which Ms. Andal responded that staff would return to Council in March with ordinances to be introduced and additional modifications could still be made. Ms. Andal confirmed with the Mayor provisions of his motion to include increasing the membership of the Housing and Community Development Commission to nine members to include two tenant members appointed at -large in accordance with the Health and Safety Code requirements as well as dissolving the Community Center Authority, as the debt had been retired as of 2014 and there was no longer a need to keep that commission. Council Member Moreno suggested some use of facilities by the Anaheim Union High School District may be nullified and requested that action not be currently included. MOTION: Mayor Tait moved to change the method in which Boards and Commissions were appointed as follows, exempting the Sister City Commission and Library Board: each district council member shall have one appointment; priority review shall be given to incumbents, if the incumbent is within the member's district, second priority shall be given to district applicants, thereafter review of applicants regardless of district residency; remaining seats on each commission shall be appointed by a majority vote of the entire Council; adjust all commissions to seven member commissions; increase membership of the Housing and Community Development to nine to account for two tenant member seats, create term limits to coincide with the elected, appointing member; and allow all current commission members to reapply, seconded by Council City Council Minutes of February 7, 2017 Page 28 of 42 Member Barnes. VOTE: AYES — 4 (Mayor Tait and Council Members Vanderbilt, Barnes, and Moreno); NOES — 3 (Council Members Murray, Kring, and Faessel). Motion Carried. At 10:47 P.M., Mayor Tait recessed City Council and reconvened at 10:54 P.M. With the consent of Council, the agenda was taken out of order and Public Hearing, Item No. 28 was considered next. 5:30 P.M. PUBLIC HEARING C350 28. MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PLAN NO. C280 339 GENERAL PLAN AMENDMENT NO. 2015-00603 ZONING CODE AMENDMENT NO. 2015-00127 MISCELLANEOUS CASE NO. 2016-00636 CONDITIONAL USE PERMIT NO. 2016-05877 TENTATIVE TRACT MAP NO. 17994 DEVELOPMENT AGREEMENT NO. 2016-00004 (DEV2014-00124) APPLICANT: Eric Nelson, Trumark Homes, LLC, 450 Newport Center Drive, Suite 300, Newport Beach, CA 92660 OWNER: Brumleu Investments, LP; 18301 Von Karman, Suite 250, Irvine, CA 92612 LOCATION: 1700 South Lewis Street REQUEST: The following land use entitlements are requested to permit development of an 153 -unit attached single-family residential project: 1) a General Plan Amendment to change the property's land use designation from Office -Low to Mixed Use, increase the total amount of residential development permitted in the Platinum Triangle Mixed -Use land use designation to 17,501 dwelling units, and decrease the total amount of office development permitted in the Platinum Triangle Office -High and Office -Low land use designations to 4,309,486 square feet; 2) a Zoning Code Amendment and an amendment to the Platinum Triangle Master Land Use Plan to establish the Lewis District and associated development standards and reflect the change in development intensity described above; 3) a Conditional Use Permit to permit a 153 -unit attached single-family residential project with modified setbacks between buildings; 4) a Tentative Tract Map to create a 31 -lot, 153 unit residential subdivision for condominium purposes; and, 5) a Development Agreement to allow development of the proposed project described above. Environmental Determination: The City Council will consider whether a Mitigated Negative Declaration is the appropriate environmental documentation for this request under the California Environmental Quality Act. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended City Council approval of the following: Mitigated Negative Declaration (PC2017-003); General Plan Amendment No. 2015-00503 (Resolution No. PC2017-004); Zoning Code Amendment No. 2015-00127 (Resolution No. PC2017-005); Miscellaneous Case No. 2016-00636 (Resolution No. PC2017-006); Conditional Use Permit No. 2016- 05877 (Resolution No.PC2017-007); Tentative Tract Map No. 17994 (Resolution No. PC2017-008); Development Agreement No. 2016-00004 (Resolution No. PC2017-009) with modification to the Development Agreement adding a condition of approval to state "Prior to issuance of the first building permit the property shall enter the Platinum Triangle Community Facilities District (CFD). To begin the annexation process the applicant shall submit a request to the Public Works Department, Development Services Division, requesting to annex the property into the CFD." (VOTE: 6-0; Chairperson Caldwell and City Council Minutes of February 7, 2017 Page 29 of 42 Commissioners Carbajal, Dalati, Henninger, Lieberman and Seymour voted yes. Commissioner Bostwick was absent. (Planning Commission meeting of January 9, 2017). RESOLUTION NO. 2017-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting a Mitigated Negative Declaration, along with Mitigation Monitoring Plan No. 339, for proposed amendments to the General Plan and the Platinum Triangle Master Land Use Plan, and for approval of a new Tentative Tract Map, Conditional Use Permit and a Development Agreement with Trumark Homes, LLC for the Trumark Homes Project. (General Plan Amendment No. 2015-00503; Development Agreement No. 2016-00004; Conditional Use Permit No. 2016-05877; Zoning Code Amendment No. 2015-00127; Miscellaneous Case No. 2016-00636; Tentative Tract Map No. 17994; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-018 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the General Plan of the City of Anaheim and making findings in connection therewith (General Plan Amendment No. 2015-00503; DEV2014- 00124) (1700 South Lewis Street). ORDINANCE NO. 6397 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending certain sections of Chapter 18.20 (Platinum Triangle Mixed Use (PTMU) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code (Zoning Code Amendment No. 2015-00127; DEV2014-00124). RESOLUTION NO. 2017-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the Platinum Triangle Master Land Use Plan, and making findings in connection therewith (Miscellaneous Case No. 2016-00636; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2016-05877 to permit a 153 - unit attached single-family residential project with modified setbacks between buildings, and making certain findings in connection therewith (Conditional Use Permit No. 2016- 05877; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 17994 (Tentative Tract Map No. 17994; DEV2014-00124). ORDINANCE NO. 6398 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016-00004 by and between the City of Anaheim and Trumark Homes LLC and authorizing the Mayor to execute said agreement for and on behalf of the city (DEV2014- 00124). At 10:55 P.M., Mayor Tait declared a potential conflict and left the dais. Mayor Pro Tem Vanderbilt and Council Members Barnes and Faessel reported ex parte meetings with the applicant prior to the public hearing. The public hearing was considered with Planning and Building Director David Belmer presenting the item. City Council Minutes of February 7, 2017 Page 30 of 42 BACKGROUND: Mr. Belmer reported the proposed project by Trumark Homes project was presented to the Planning Commission at a public hearing on January 7, 2017 and subsequently unanimously recommended to the City Council for approval. The project consisted of an approximately 8 -acre site located on the east side Lewis Street, north of Katella Avenue, within the Platinum Triangle boundaries, adjacent to recently completed and under construction residential projects on Katella Ave., including the Katella Grand with the Coral Tree Park project. Mr. Belmer continued the site was currently improved with an industrial user who would be relocated. The project recommended for approval included 153 for -sale, 3 -story, attached townhouses, consisting of six different floor plans ranging in size from 1,600 sq. ft. to 2,100 sq. ft. Outdoor spaces included private decks/balconies on the smaller units, rooftop decks on the larger units, an on-site pocket park, larger recreation area, and landscaped paseo to facilitate resident movements and connect the units to each other and to the open space. In terms of parking, he reported the project exceeded the Platinum Triangle requirements of approximately 371 spaces by proposing 435 spaces within garages, assigned spaces, and open guest spaces. Since the initial approval by the Planning Commission, an additional condition had been added to the project to further address potential spillover parking by requiring garage spaces be available and used for parking by residents and a provision to preclude residents from parking parallel to their garages and blocking access to the development. Mr. Belmer further stated the project included a number of requested or required entitlement applications including a Mitigated Negative Declaration, a General Plan Amendment, a Master Land Use Plan Amendment for the Platinum Triangle, a Zoning Code Amendment, a Conditional Use Permit, a Tentative Tract Map, and a Development Agreement in the standard form as proposed for residential developments within the Platinum Triangle. Additionally, he reported this project would be annexed into the Community Facilities District (CFD) to ensure it would contribute its fair share of improvements in the Platinum Triangle. Mr. Belmer concluded his presentation that staff and the Planning Commission viewed this as a carefully designed and planned project that implemented the vision of the Platinum Triangle, provided a quality living environment for residents, added residential units through a logical extension of the adjacent residential developments to the south, found all required findings for the entitlement applications could be met, including all environmental review to ensure any impacts were mitigated to a level of insignificance, and recommended the project for approval. DISCUSSION: Council Member Moreno questioned the provision of any affordable housing components and financing of the pocket park, with Mr. Belmer confirming there were no covenants or restrictions requiring low or moderate income housing and the pocket park and all on-site amenities were at the developer's expense in addition to the required park in -lieu fee. In response to Council Member Moreno's question about school impacts, Mr. Belmer reported school fees were required to mitigate any issues and impacts to schools were analyzed in the Mitigated Negative Declaration as part of the CEQA review. Jonathan Borrego, Planning Services Manager, explained there were no direct conversations with the school district, but they were notified of the project as a responsible agency and received a copy of the environmental document including the school analysis, to which they did not comment. Mayor Pro Tem Vanderbilt opened the public hearing for comments. Eric Nelson, Trumark Homes, applicant, stated he would forego his formal presentation to answer questions. He informed Council they had contacted the schools to ensure capacity to confirm information for their potential homebuyers, stating the project was predicted to generate 25 students at total build -out, with the product mix targeting young professionals, baby boomers, those wishing to downsize from homes with yards, and essentially anyone. He further noted that current residents renting in the Platinum Triangle could move to the project, as rent for a 2-3 bedroom apartment approximated a mortgage payment City Council Minutes of February 7, 2017 Page 31 of 42 William Fitzgerald questioned having seven separate resolutions and ordinance in one public hearing and alleged a violation of the Brown Act by not having the agenda online. Regarding the project itself, he expressed concerns with inadequate parking due to Platinum Triangle requirements and lack of a proposed office building parking structure and suggested the project may switch to subsidized rental apartments in the future. Brian Chuchua questioned where the open parking spaces were on the site plan and expressed concern with security if residents had to walk a distance to their homes. Greg Diamond questioned the effect of a delay in approving the project, suggesting it return to the Planning Commission for review after implementation of the recently -approved change to the process for appointing board and commission members. Gretchen Shoemaker asked that parking be considered due to many families have 3-4 cars. Mr. Nelson returned to the podium for closing remarks and reported the project exceeded standards by including 65 more spaces than required by code through 2 -car garages with additional room for trashcans and storage and parking areas along the north boundary and throughout the development. He added that the Homeowners Association (HOA) would proactively enforce the use of garages for parking through annual inspections via the new condition added to the project and through their CC&Rs. Additionally, he stated Trumark Homes built for -sale, housing products, which provided additional housing even if not solving homelessness and, as a policy, does not make campaign contributions when they had a proposed project. With no other comments offered, Mayor Pro Tem Vanderbilt closed the public comment portion of the hearing. DISCUSSION: Council Member Kring asked about any phasing of the project, pricing, and outdoor spaces. Mr. Nelson explained it would be developed as one project with phased construction of approximately 20 units per phase, estimated to be completed in 2019, with homes priced from the low $500,OOOs to mid $600,OOOs based on their size and amenities. He explained balconies and roof decks had been incorporated to allow outdoor spaces in an urban environment, as well as pocket parks to allow for dog walking and other outdoor enjoyment. Council Member Kring expressed her support for the project. Mr. Nelson confirmed for Council Member Faessel that the project proposed 435 parking spaces, including the garages, which was in excess of the required 370. Council Member Faessel questioned how much parking would be required if the project was located elsewhere in the City rather than the Platinum Triangle, with Senior Planner Scott Koehm estimating it would be fairly similar to what was proposed, noting Platinum Triangle parking requirements were reduced due to anticipated transit uses through ARTIC. Mr. Nelson reconfirmed the condition of using garages for parking and enforcement by the HOA and said all parking was standard garages and stalls, not tandem parking. Council Member Barnes questioned what size cars would fit in the garages, with Mr. Nelson responding the garages were standard size for California and could fit vehicles similar to normal parking stalls. Council Member Moreno expressed concerns regarding school impacts and the number of proposed students. Mr. Nelson explained the generation rates for projected students were provided by the school district for use by the CEQA consultant in the analysis of the project, the developer would pay nearly $1 million in school fees, and the three schools for potential attendance were not near their full capacity. Mr. Borrego added the student generation rates City Council Minutes of February 7, 2017 Page 32 of 42 used for the environmental document were included in the Environmental Impact Report (EIR) for the General Plan for the Platinum Triangle and a conversation did occur with a district representative regarding the figures in the context of a planned school on the Howell site. In response to Council Member Moreno's inquiry regarding affordable housing, Mr. Nelson responded there was no system of mandatory requirements or in -lieu contributions regarding affordable housing for this project site. He further highlighted Trumark Homes' involvement in the community and participation with Charity Water, whereby this project would provide funding for 5- 10 drinking water wells to be built in third -world countries. Mr. Belmer added there was no requirement for a percentage of affordable housing in the Platinum Triangle and the city took a broader approach to pursue affordable housing inventory through the former Redevelopment Agency and Anaheim Housing Authority and partnerships with affordable housing developers. He continued the housing types in the Platinum Triangle were a diverse mix of housing types, ranging from studio apartments to 3 -bedrooms, rental and for -sale, all of which contributed to overall housing for the city. Council Member Moreno expressed concern with a 6-7 year wait for affordable housing vouchers and the concentration of affordable housing development in certain portions of the city, causing potential economic segregation. Council Member Murray appreciated the provision of quality workforce housing with an active lifestyle component, noting the difficulties with developing affordable housing in the wake of the dissolution of redevelopment agencies, and offered her support. In response to Mayor Pro Tem Vanderbilt, Mr. Nelson stated the project provided approximate 2.9 parking spaces per unit and that census data reflected an average of three cars per home in southern California. Mr. Belmer explained the garages measured 21 ft. by 21 ft., which exceeded the standard garage size of 20 ft. by 20 ft. and the standard commercial parking stall of 18 ft. by 18.5 ft. Mayor Pro Tem Vanderbilt closed the public hearing MOTION: Council Member Kring moved to approve Item No. 28, including the following, seconded by Council Member Murray: RESOLUTION NO. 2017-018 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the General Plan of the City of Anaheim and making findings in connection therewith (General Plan Amendment No. 2015-00503; DEV2014- 00124) (1700 South Lewis Street). ORDINANCE NO. 6397 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending certain sections of Chapter 18.20 (Platinum Triangle Mixed Use (PTMU) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code (Zoning Code Amendment No. 2015-00127; DEV2014-00124). RESOLUTION NO. 2017-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the Platinum Triangle Master Land Use Plan, and making findings in connection therewith (Miscellaneous Case No. 2016-00636; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2016-05877 to permit a 153 - unit attached single-family residential project with modified setbacks between buildings, and making certain findings in connection therewith (Conditional Use Permit No. 2016- 05877; DEV2014-00124) (1700 South Lewis Street). City Council Minutes of February 7, 2017 Page 33 of 42 RESOLUTION NO. 2017-021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 17994 (Tentative Tract Map No. 17994; DEV2014-00124). ORDINANCE NO. 6398 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016-00004 by and between the City of Anaheim and Trumark Homes LLC and authorizing the Mayor to execute said agreement for and on behalf of the city (DEV2014- 00124). Ordinance introduced. APPROVED VOTE: AYES — 6: (Mayor Pro Tem Vanderbilt and Council Members: Murray, Barnes, Moreno, Kring, and Faessel). NOES — 0. ABSTAIN —1 (Mayor Tait). Motion Carried. Mayor Tait returned to the dais at 11:51 P.M. END OF CONSENT CALENDAR D116 20. Receive an update on the Mayoral Task Force on the Welcoming Anaheim initiative and discuss and potentially provide direction related to the Task Force's work, membership, transparency measures and any other areas that may involve the work and development of the Task Force (continued from January 24, 2017, Item No. 23). Mayor Tait explained this item related to a mayoral task force, not a Council taskforce, and as a mayoral taskforce he could determine its membership, meeting method and schedule; further stating any decisions made by the task force would have no effect until brought forward to Council for consideration and discussion, at which time the Council could weigh in on any kind of issues, decisions, or recommendations, viewing Council discussion at this meeting as inappropriate and stating he would move to table this item. Council Member Murray stated she had requested this agenda item to allow for a discussion on her requested transparency measure and public improvement in the process of this task force. MOTION: Council Member Murray moved to accept the transparency measures. Motion failed for lack of a second. MOTION: Mayor Tait moved to table Item No. 20, seconded by Council Member Barnes. VOTE: AYES — 3 (Mayor Tait and Council Members Barnes and Moreno); NOES — 4 (Mayor Pro Tem Vanderbilt and Council Members Murray, Kring, and Faessel). Motion Failed. DISCUSSION: Council Member Murray shared her view that while the taskforce has been deemed a mayoral taskforce, it has been formed by a vote of the Council and therefore should have more public input about the objectives of the taskforce and how the meetings would be conducted, and believed there should be full transparency for any discussion that would affect the potential governance of the city and in any changes in how it was governed. She noted Anaheim's diverse population and shared Council's previous actions supporting comprehensive immigration reform and urging acceptance by the Federal government of refugees from around the world, and its collaboration with ACCESS California to assist with the integration of refugees into Anaheim. She noted there was great interest in what this taskforce might discuss and recommend and believed public participation was essential to the process, citing concerns with the proposed meeting time of 8:30 A.M. City Council Minutes of February 7, 2017 Page 34 of 42 MOTION: Council Member Murray moved to direct staff to publicly notice, videotape and record all taskforce meetings and deliberations, and post all data and related agenda materials on the city's website, seconded by Council Member Kring. Council Member Kring proposed that, for consistency with all boards and commissions, each Council Member appoint a representative to the Mayoral taskforce to ensure all districts were represented. Mayor Tait explained the differences between a mayoral taskforce and Council -appointed boards and commissions and stated current boards and commissions were not recorded or video-taped, and questioned why this was being requested at this time. Council Member Murray believed Anaheim had always been a welcoming city, that she understood the Welcome America program would be reviewed in greater detail, referenced public interest in what this taskforce would be discussing, and noted prior public noticing and transparency elements of the Advisory Committee on Election and the Charter Review Commission. She noted recent comments and efforts by the Council to provide greater transparency and sunshine ordinances to ensure access of the people to all city transactions and questioned why that should not apply to this area with discussion. Council Member Moreno cited concerns with the politicization of issues and specific intent, questioning why Council Member Murray had not requested all boards, commissions, and taskforces be videotaped during the earlier discussion for overall transparency. He continued that, as a mayoral task force, it was under the mayor's purview and was not required to have Council input or appointments. He expressed concerns with possible effects the requested actions could have on sensitive conversations, sharing personal experiences, and expert witness testimony; cited his belief that the taskforce would engage in robust outreach to obtain information through honest and forthright conversation; and believed certain things said could be published or shared in potentially negative ways. Further, he stated this was not a governing board that could change the governing of the city in any way and did not believe it contradictory to greater transparency to provide space for honest discussions and candor around sensitive political issues that impacted people's lives. Regarding the timing of the meeting, he stated only the first meeting had been scheduled for 8:30 A.M. and future meetings could be scheduled differently by the taskforce members, however citing many parent meetings at schools that were well -attended in the morning hours as many had afternoon and evening work commitments. Council Member Murray responded that she had requested transparency methods for all boards and commissions, believed they should be publically available, and hoped Council would continue to ensure such efforts. She shared that no sensitivity was apparent in the first staff report where representatives from Welcoming America would be presenting, asked for meetings to be scheduled at the most convenient times for the members and to ensure access to information and robust and involved dialogue on this issue. In her view, many items discussed on the Welcoming America website has been already accomplished in Anaheim, as it had reached out and embraced the immigrant and refugee communities over the past decade. She shared that many individuals, including the youth, had publically shared their faith, experiences, and pride in public settings, some even in somewhat hostile environments, and believed accommodations could be made for anyone who preferred some anonymity even while ensuring overall greater transparency. She repeated her motion on the floor and said she would bring back a separate item regarding the same transparency measures for all boards and commissions. City Council Minutes of February 7, 2017 Page 35 of 42 Council Member Kring stated full anonymity was not possible as everyone now had a mobile phone and could record at any time and said she would be more comfortable if church members, pastors, imams, and different types of people were asked to participate on the taskforce. Mayor Tait repeated he could choose how to run a mayoral task force, and if he chose to videotape the meetings that would be his decision, not a mandate of the overall Council. Council Member Faessel, that while honored by his appointment and happy to serve, offered his seat on the taskforce to another council member if that would help move the project ahead and provide a greater sense of transparency. Mayor Tait acknowledged Council Member Faessel's generous offer but stated he did not wish to change the membership at this time, needed to ask the taskforce itself about making its meetings and actions public while being aware of the sensitive nature of possible discussions, and stated the taskforce did not have the power to make laws or changes, any suggestions or recommendations would publically come before Council for discussion and decision. In response to Council Member Faessel, Council Member Murray responded that for her public transparency meant the public being able to participate across the board through the series of meetings, the creation of the taskforce was publically discussed, and believed it may be subject to Brown Act considerations. Acting City Attorney Kristin Pelletier stated she had reviewed the previous discussion and actions regarding the Welcoming Anaheim taskforce and believed, in an abundance of caution as there had been a Council vote to initiate the taskforce, the Brown Act did apply. She explained the requirements of the Brown Act included public noticing, meetings open to the public, and some form of action minutes but not videotaping or other requested actions. Mayor Tait referred to the Transportation Liaison and Audit Committees which did not have noticed or recorded meetings, to which Council Member Murray replied those were ad-hoc committees consisting of less than a majority of the Council without any public members which was a different type of entity than one formed by an act of the Council. Mayor Pro Tem Vanderbilt questioned whether the Council's previous action could be undone to allow the mayor to move forward with an individual taskforce, to which Acting City Attorney Pelletier replied the action could be agendized to rescind. Mayor Tait believed it would be best served to be a true mayoral taskforce and stated he would agendize it for the next meeting to rescind the Council action. Council Member Moreno explained that he originally agendized it and brought it to Council hoping it would be endorsed by the Council as an initiative and to send a signal to the community to reaffirm the values already expressed, but not to be controlled by the Council. He asked his colleagues to reject the motion on floor, not in regards to transparency but rather acknowledging the integrity of the mayor's office. Council Member Murray responded that the motion on the floor was not to remove power from the mayor but to provide direction to encourage engagement and participation of the public and provide openness and transparency on bringing the community together and integrating residents. Mayor Tait offered his view that the motion was less about giving direction but rather about effecting control over a taskforce that should be under his decision alone. City Council Minutes of February 7, 2017 Page 36 of 42 Council Member Kring recommended support for the motion on the floor to ensure compliance with the Brown Act, noting the mayor would bring the item back to correct the manner in which it had been agendized. Ms. Pelletier responded that the basic Brown Act provisions applied to the taskforce as the initial discussions resulted in a vote of the Council to launch the taskforce, but that if that action was undone, then the mayor had within his power to establish a mayoral taskforce. She clarified that the motion on the floor went beyond basic compliance with the Brown Act and included additional requirements. In response to Council Member Faessel, Council Member Murray stated the motion went beyond basic Brown Act provisions to allow greater public participation, even if they could not attend the meetings in person, and moved toward full transparency and oversight of city business. Council Member Moreno shared his understanding of a difference between council members who chose to be in the public view and share ideas for public consumption, and sometime critique, versus the residents who were invited, rather than applied, to share their ideas on potentially highly sensitive issues and were asked them to give of themselves. MOTION: Council Member Murray moved to direct staff to publicly notice, videotape and record all taskforce meetings and deliberations, and post all data and related agenda materials on the city's website, seconded by Council Member Kring. VOTE: AYES — 3 (Council Members Murray, Kring, and Faessel); NOES — 4 (Mayor Tait and Council Members Vanderbilt, Barnes, and Moreno). Motion Failed. No further action taken. 21. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF D114 THE CITY OF ANAHEIM amending Policy 1.6 of the City Council Policy Manual relating to the manner in which members of the City Council may place matters on the agenda of a regular City Council meeting and rescinding Resolution No. 2016-241 (continued from January 24, 2017, Item No. 24). Council unanimously continued Item No. 21 to February 28, 2017. No further action taken. D159 22• Receive and file report regarding Short Term Rental program enforcement (continued from January 24, 2017, Item No. 26). Council unanimously continued Item No. 22 to February 28, 2017. No further action taken. D150 23. Discuss and provide direction to staff regarding the transition of the former Neighborhood Council Districts to the proposed Neighborhood Services District Community meetings (continued from January 24, 2017, Item No. 28). Community Services Director Brent Dennis reported this item was presented by staff in response to Mayor Pro Tem Vanderbilt's request on January 10th to present an overview of the transition from the former Neighborhood Council District meetings to the proposed Neighborhood Service District Community meetings. Mayor Pro Tem Vanderbilt stated the intent was to discuss this two weeks ago, but due to continuance, this discussion was now closer to the actual proposed schedule of meetings. He thought it was important for Council to discuss both a long-term and short-term plan but as he felt there needed to be opportunity for discourse rather than abrupt implementation but due to a proposed schedule already in place for the next year, now recommended a more appropriate action would be to use this period to see how it worked and if there were any adjustments City Council Minutes of February 7, 2017 Page 37 of 42 necessary to re -visit it in a year. He expressed his personal opinion it might be helpful to join certain districts together, such as District Nos. 1 and 2 representing West Anaheim, as had been done in the past and which could reduce staff time and might ensure greater participation. Council Member Faessel stated he had initial concerns when this change was first brought up, particularly in regards to leadership development through the chairman and vice-chairman positions, but that he was now comfortable with updated plan. He reported a preview -type meeting has recently been held in District 5 which went well and included positive communication between the neighbors and city staff and supported the overall proposal, with a few requested date changes for meetings later in the year. Council Member Moreno asked for the rationale behind the proposed changes as he believed the meetings were well -attended and participated in and the only substantive change was the removal of the ability for residents to serve as the chair and vice -chair, set the agenda and be part of the meeting leadership. Mr. Dennis explained the initial genesis of the meeting was formed when there was an allocation of central CDBG funds but that those funds had waned over time and the meetings had transitioned to connecting neighborhood concern with available resources, largely orchestrated and presented by city staff, with the chairs and vice -chairs serving primarily in welcoming roles. He said recent communication regarding the changes with the neighborhoods had been well- received and understood by the community to reflect the district environment. Council Member Moreno expressed his preference for resident -driven and resident -owned leadership with support from staff and suggested an open conversation of whether we should stay with the current model should remain or change to the proposed model. Anaheim Sporn, Community Services Superintendent, explained the intent was to still be the first stop for residents to see what the city was, gain connection to staff, other residents and neighbors, and provide opportunities to get involved via traffic community meetings, neighborhood watch, and working with departments on various topics of concern. She further noted staff would continue to keep a list of community leaders to invite to provide input on various project and initiatives. She said staff still wanted to have back -and -forth communication with the community about topics within the neighborhoods, not merely staff -driven and would make sure the transition was most fitting for the community. Council Member Moreno explained he would be more at ease if the next community meeting agendas included a discussion of the potential changes in the leadership model and expressed his preference that the community identify leaders or individuals stepped up to lead, rather than rely on staff identifying such leaders. He appreciated the work by staff and asked for a report back on what the residents said about the change in the meeting models. No action was taken by the Council. D150 24• Discuss and provide direction to staff on a request to review and improve park conditions, park programming, sports fields and other park areas within District 1 and to conduct a full assessment of all City parks (continued from January 24, 2017, Item No. 30). Community Services Director Brent Dennis stated this report focused on District 1 parks and facilities as the request of Council Member Barnes and presented a map showing the boundaries of the district, stating there were 92.7 acres of parks in District 1, primarily within three major City Council Minutes of February 7, 2017 Page 38 of 42 parks: Brookhurst Park, Maxwell Park, and Twila Reid Park. He also stated District 1 included a Community Center at Brookhurst Park, the Haskett Library at Haskett Park, and the West Anaheim Youth Center. He continued that all six districts faced existing challenges that ranged from aging infrastructure, changing demographics, an aging population with different senior citizen demands, an increase in density, and intense usage by adult leagues, particularly soccer, causing high wear and tear on some fields. Additionally, the parks and facilities faced common urban issues such as vandalism and graffiti. Mr. Dennis reported the city was always looking for opportunities to expand parks, parkland, and open space, and over the last five years, had invested a little over $10 million on various improvement projects in District 1 with consideration given earlier in the year to a park assessment with consideration for seeking additional park land and being more proactive with developing collaborations, noting staffs excellent job in pursuing grant funding opportunities. DISCUSSION: Council Member Barnes shared images of the poor conditions of recreational facilities in District 1, requesting a head start to ensure such conditions were not present the following year. She requested a more comprehensive approach, the establishment of a standard for all city parks, and an evaluation compared to other cities in the county regarding fields, field conditions, landscaping, amenities such as pools and tennis courts, exercise equipment, picnic areas, bathrooms, parking lots, playgrounds, community facilities, and setbacks from residential homes. Specific to West Anaheim, she requested a staff update regarding the current acreage of West Anaheim parks when those fenced off by school districts and other property that was no longer publically accessible was factored in; target numbers for park acreage per person and how far are the city was from that mark; the need for new recreational areas in West Anaheim as new homes, townhomes, and apartments were built; and the process for scheduling the soccer fields, particularly for youth groups, as well as an indication of usage and fees paid along with whether the groups were based in Anaheim. Council Member Barnes then displayed photos of Haskett Library, citing the need for its exterior to be well -cleaned and replacement of exterior lights. She asked staff to fully evaluate the condition of the library's exterior and report back to her with the plan for repairs and clean up, questioning whether library staff could be accountable for the exterior of the building as well as the interior, and requested staff provide the disposition of the park developer funds over the last 10 years. She further shared photos of bathrooms in several West Anaheim parks in West Anaheim, expressed her disappointment with their condition. While acknowledging and appreciating the work of staff with available resources, she stated parks needed to be at the top of the city's priorities. Mayor Pro Tem Vanderbilt informed all that staff and Council had already started working on improving park conditions, with certain items subject to budget approval. Mr. Dennis reported staff had received Council Member Barnes list of specific requests and the future process in the district environment would be to generate a similar summary of items applicable to each district along with action plans to address issues system wide, primarily via the aesthetics of the parks, the condition of the fields, and the restrooms which were a major concerns. Mayor Tait stated this item was not meant as a criticism of Mr. Dennis nor his staff and appreciated that they had been working on the restrooms in West Anaheim and the other districts across Anaheim, particularly with the limited resources they had to work with. He told the City Manager that this was a priority not just for him but the entire Council. Council Member Murray stated this has been the entire Council's priority for several budget cycles as the City started to recover from the recession and that she had requested several times to restore park maintenance to in-house staff to help ensure needs were handled in a timely manner. She said there was tremendous usage of restroom facilities at the parks and that was City Council Minutes of February 7, 2017 Page 39 of 42 part of the reason staff had recommended closing the bathrooms at night, as they were damaged to a significant degree. Mayor Tait thanked Mr. Dennis for the report and Council member Barnes for bringing this forward and said he hope to hear more on this in the next two months, to which Council Member Barnes said they could not wait that long and asked for immediate action regarding the restrooms. City Manager Paul Emery replied that the appropriation of resources as part of the budget adjustment had been discussed during the workshop and proposed action would be forthcoming, as well as that Mr. Dennis had been provided direction to enhance the cleaning schedule and a report on those efforts would be presented shortly as well as item next month in terms of appropriating funds for parks improvements. No action was taken by Council. 25. Receive and file status report regarding the Beach Boulevard Specific Plan and D159 associated Environmental Impact Report (continued from January 24, 2017, Item No. 29). Council unanimously continued Item No. 25 to February 28, 2017. No further action taken. D116 26. Discuss and direct staff to move forward with the development of the 2017 fireworks program that will allow Anaheim non -profits the opportunity to raise funds for their organizations through fireworks sales. Council unanimously continued Item No. 26 to February 28, 2017. No further action taken. 5:30 P.M. PUBLIC HEARINGS: Pilo 27. Staff requests continuance to February 28, 2017. Public hearing to vacate certain public streets, highways and easements (Abandonment No. ABA 2016-00342) (portion of Alro Way adjacent to 200 and 205 West Alro Way, and a portion of "Old" Manchester Way adjacent to 200 West Alro Way). Item No. 27 was continued to February 28, 2017 at the request of staff. No action taken. C350 28. MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PLAN C280 NO. 339 GENERAL PLAN AMENDMENT NO. 2015-00503 ZONING CODE AMENDMENT NO. 2015-00127 MISCELLANEOUS CASE NO. 2016-00636 CONDITIONAL USE PERMIT NO. 2016-05877 TENTATIVE TRACT MAP NO. 17994 DEVELOPMENT AGREEMENT NO. 2016-00004 (DEV2014-00124) APPLICANT: Eric Nelson, Trumark Homes, LLC, 450 Newport Center Drive, Suite 300, Newport Beach, CA 92660 OWNER: Brumleu Investments, LP; 18301 Von Karman, Suite 250, Irvine, CA 92612 City Council Minutes of February 7, 2017 Page 40 of 42 LOCATION: 1700 South Lewis Street REQUEST: The following land use entitlements are requested to permit development of an 153 -unit attached single-family residential project: 1) a General Plan Amendment to change the property's land use designation from Office -Low to Mixed Use, increase the total amount of residential development permitted in the Platinum Triangle Mixed -Use land use designation to 17,501 dwelling units, and decrease the total amount of office development permitted in the Platinum Triangle Office -High and Office -Low land use designations to 4,309,486 square feet; 2) a Zoning Code Amendment and an amendment to the Platinum Triangle Master Land Use Plan to establish the Lewis District and associated development standards and reflect the change in development intensity described above; 3) a Conditional Use Permit to permit a 153 -unit attached single-family residential project with modified setbacks between buildings; 4) a Tentative Tract Map to create a 31 -lot, 153 unit residential subdivision for condominium purposes; and, 5) a Development Agreement to allow development of the proposed project described above. Environmental Determination: The City Council will consider whether a Mitigated Negative Declaration is the appropriate environmental documentation for this request under the California Environmental Quality Act. ACTION TAKEN BY THE PLANNING COMMISSION: Recommended City Council approval of the following: Mitigated Negative Declaration (PC2017-003); General Plan Amendment No. 2015-00503 (Resolution No. PC2017-004); Zoning Code Amendment No. 2015-00127 (Resolution No. PC2017-005); Miscellaneous Case No. 2016-00636 (Resolution No. PC2017-006); Conditional Use Permit No. 2016- 05877 (Resolution No.PC2017-007); Tentative Tract Map No. 17994 (Resolution No. PC2017-008); Development Agreement No. 2016-00004 (Resolution No. PC2017-009) with modification to the Development Agreement adding a condition of approval to state "Prior to issuance of the first building permit the property shall enter the Platinum Triangle Community Facilities District (CFD). To begin the annexation process the applicant shall submit a request to the Public Works Department, Development Services Division, requesting to annex the property into the CFD." (VOTE: 6-0; Chairperson Caldwell and Commissioners Carbajal, Dalati, Henninger, Lieberman and Seymour voted yes. Commissioner Bostwick was absent. (Planning Commission meeting of January 9, 2017). RESOLUTION NO. 2017-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting a Mitigated Negative Declaration, along with Mitigation Monitoring Plan No. 339, for proposed amendments to the General Plan and the Platinum Triangle Master Land Use Plan, and for approval of a new Tentative Tract Map, Conditional Use Permit and a Development Agreement with Trumark Homes, LLC for the Trumark Homes Project. (General Plan Amendment No. 2015-00503; Development Agreement No. 2016-00004; Conditional Use Permit No. 2016-05877; Zoning Code Amendment No. 2015-00127; Miscellaneous Case No. 2016-00636; Tentative Tract Map No. 17994; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-018 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the General Plan of the City of Anaheim and making findings in connection therewith (General Plan Amendment No. 2015-00503; DEV2014- 00124) (1700 South Lewis Street). ORDINANCE NO. 6397 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending certain sections of Chapter 18.20 (Platinum Triangle Mixed Use (PTMU) Overlay Zone) of Title 18 (Zoning) of the Anaheim Municipal Code (Zoning Code Amendment No. 2015-00127; DEV2014-00124). City Council Minutes of February 7, 2017 Page 41 of 42 RESOLUTION NO. 2017-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the Platinum Triangle Master Land Use Plan, and making findings in connection therewith (Miscellaneous Case No. 2016-00636; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2016-05877 to permit a 153 - unit attached single-family residential project with modified setbacks between buildings, and making certain findings in connection therewith (Conditional Use Permit No. 2016- 05877; DEV2014-00124) (1700 South Lewis Street). RESOLUTION NO. 2017-021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Tentative Tract Map No. 17994 (Tentative Tract Map No. 17994; DEV2014-00124). ORDINANCE NO. 6398 (INTRODUCTION) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving that certain Development Agreement No. 2016-00004 by and between the City of Anaheim and Trumark Homes LLC and authorizing the Mayor to execute said agreement for and on behalf of the city (DEV2014- 00124). Public Hearing Item No. 28 was considered earlier in the agenda, see discussion following Item No. 19 (Page 28). REPORT ON CLOSED SESSION: None. COUNCIL COMMUNICATIONS: Council Member Member Faessel spoke of his attendance at the Black History event and highlighted the community support for Bruno Serato. Mayor Pro Tem Vanderbilt shared appreciation expressed by Richard Delgado for the city's work during the storms and announced the Anaheim Union High School District Bike-a-thon to be held on April 8. Council Member Barnes announced the CityNet meeting at the Downtown Central Library on February 8 and Potter's Lane Open House. Council Member Moreno thanked Chief Quezada, Sergeant Gonzalez and Rocio Burress for working with the Mayfair community regarding parking restrictions, Public Works and Neighborhood Services for providing information to residents, and Cathy Woodward for her work in organizing the Black History Parade. He congratulated Mayor Tait on an amazing State of the City. In response to inquiries he received regarding the Downtown Community Center, he confirmed no proposal or decisions have been made regarding the senior parking lot. He further requested a resolution welcoming refugees. Council Member Kring spoke of her attendance to the Black History Parade and Cultural Fair and spoke of the community support for Bruno Serato and his staff. Council Member Murray thanked the businesses and community for their support of Bruno Serato, Public Works' staff for keeping the community safe during the storms and Anaheim Police City Council Minutes of February 7, 2017 Page 42 of 42 Department for their quick response to a shooting in front of Gilbert High School. She requested a proclamation thanking Assembly Member Don Wagner for his service to Anaheim and spoke of her attendance at the Black History event. Mayor Tait spoke of the Black History event and announced a Go Fund Me site in support of Bruno Serato. ADJOURNMENT: With no further business before the City Council and without objection, Mayor Tait adjourned the meeting of February 7, 2017 at 1:23 A.M. Respectful) submitted, Theresa Bas , CMC Acting City Clerk