05/15/2018ANAHEIM CITY COUNCIL SPECIAL AND
REGULAR MEETING OF MAY 15, 2018
The special meeting of May 15, 2018 was called to order at 2:37 P.M. in the Chambers of
Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and
related materials were duly posted on May 11, 2018.
PRESENT: Mayor Tom Tait and Council Members Jose F. Moreno, James Vanderbilt,
Denise Barnes, Lucille Kring, and Stephen Faessel. Council Member Kris
Murray joined the meeting at 2:54 P.M.
STAFF PRESENT: Interim City Manager Linda Andal, City Attorney Robert Fabela, and Acting
City Clerk Theresa Bass
WORKSHOP:
Fiscal Year 2018/19 Preliminary Budget (Police Department and Fire & Rescue)
Acting Police Chief Julian Harvey presented details of the Anaheim Police Department FY
2018/19 Preliminary Budget including an overview of core services, FY 2018/19 preliminary uses,
FY 2018/19 preliminary expenditure budget by expenditure class and division, personnel, notable
changes, opportunities in terms of community engagement and leveraging technology, and
department highlights. Acting Chief Harvey reported that safety and quality of life were the
foundational cornerstones upon which the department structured their service delivery model and
coordinated efforts. This translated into ensuring the safety of residents, visitors, and businesses
throughout the City and aligning limited resources to best support vibrant and thriving
neighborhoods. Acting Chief Harvey further reported the Police Department's operating budget
accounted for 9% of the total City budget, with an additional approximately $3 million consisting of
the federal Urban Area Security Initiative grant which will be used to fund the Anaheim/Santa Ana
Urban Area for the coming fiscal year. The Department's operating budget is 34% of the City's
General Fund budget. In terms of revenue, the Department is largely supported by the General
Fund, restricted grants, restricted asset forfeiture funds, and user fees. Personnel costs
represent over 84% of the Police Department's operating budget and Chief Harvey displayed the
expenses, including regular full-time, overtime, court time, and part-time payroll costs, of
deploying and meeting the patrol obligation, staffing detective and investigative positions,
community policing, youth services, around-the-clock jail personnel, and critical support divisions.
Acting Chief Harvey 15% of the budget was comprised of "Other Operating" expenses, with some
level of discretionary decision making in terms of equipment purchases and elective training, but
a significant portion going towards mandatory training needs, required equipment repair, and
replacement of items such as tasers, toughbook computers, radios, and uniforms. As for
personnel, Acting Chief Harvey reported that the Department has filled all but a few of its
authorized General Fund funded sworn positions.
As for notable changes, the department held its Annual Planning Review to identify and refocus
department goals, priorities, and strategy and came away with an achievable, measurable, and
impactful action plan for the year that followed. The Emergency Management Bureau was co -
located with Anaheim Fire & Rescue to maximize the ability to better prepare for, prevent, and
respond to planned and unplanned critical events. This will include a mix of ancillary assigned
sworn and professional staff from both departments to include the Mobile Command Post Team
and Tactical Dispatchers. The Orange County Human Trafficking Task Force has added a
supervisor position and has allowed for both long-term investigations and the ability to address
and respond immediately to emergent human trafficking incidents. As the first in the County to
deploy Body Worn Cameras, Acting Chief Harvey explained the Department was now fully-
City Council Minutes of May 15, 2018
Page 2 of 35
equipped and continued to evolve the program to maximize the benefits of these tools both in
terms of the investigative process as well as tailoring training based on lessons learned. Building
on continuing efforts to engage the youth in our community, the Orange County Family Justice
Center established a mentor program pairing detectives with young people exposed to and living
with family violence. In terms of the Traffic Safety Programs, the goal was to reduce injury traffic
collisions citywide.
Acting Chief Harvey further noted hosting Orange County's first multi -service center for the
homeless, increasing officers in patrol to improve response time and service delivery, and
conducting a critical assessment of all positions, both filled and vacant, to ensure deployment of
personnel aligned with the department's core mission and needs of the community.
With respect to opportunities in the coming year, the department will complete work on the Public
Safety Pipeline to connect it at the High School Level, improve customer satisfaction
improvements through technology, such as on-line information, and leverage resources by
installing overt park cameras and real-time dispatch services.
The department conducted 375 Community Meetings, including Neighborhood Watch, Business
Watch, Flashlight Walks, Coffee with Cop, and others. The Community Policing team, in
conjunction with the City Attorney's Office, were successful in a civil abatement project at a
residence on Edithia Avenue, which was responsible for over 200 calls for service.
In reply to Mayor Tait's question regarding the number of police officers currently in the
Policing Team, Acting Chief Harvey stated there were twelve officers assigned to
Community Policing, not including the Homeless Team.
Acting Chief Harvey continued by addressing the Homeless Outreach Team, noting to date, 435
individuals have been relocated to permanent or supportive housing. As the lead agency of the
Orange County Human Trafficking Task Force efforts, the Anaheim Police Department assisted
with 37 victims rescued this past year, including 19 juveniles, and 41 suspects taken into custody.
Mayor Pro Tem Moreno asked about the amount of human trafficking occurring in the
City, to which Acting Chief Harvey reported it is daily, pervasive, and noted if a city has
hotels and motels, it will have a high degree of human trafficking. He added that numbers
keep going up, the number of rescued juveniles keeps going up, and Anaheim has a big
problem which is a function of the number of hotels/motels.
Acting Chief Harvey continued addressing highlights including reducing traffic -related injuries and
deaths. To combat impaired driving, DUI saturation patrols were held along with monthly DUI
Check Points. In addition, "Know Your Limit" educations took place at local bars and restaurants
where officers discuss impaired driving to patrons. He reported on a recent Facebook livestream
by Officer Spielman, with over 9,000 views to date: He reported the department expanded the
child safety seat inspections to make residents and visitors safer.
Acting Chief Harvey reported eight motorcyclists were killed in Anaheim in 2017, so Anaheim
Police partnered with Lifestyle Cycles to host the Coppers and Choppers Motorcycle Safety Event
at Anaheim Stadium. Approximately 300 motorcyclists attended to receive instruction on safe
riding techniques and strategies. He spoke of the Drug -Free Anaheim program, reporting 316
lives have been changed since the inception of the program.
Acting Chief Harvey addressed a five-year analysis of gang -related violent crimes, Part 1 crimes
in Anaheim from 2011-2016, and Part 1 crimes in Anaheim from 2006-2016. He spoke of a long-
term gang investigation that resulted in 49 guns and 4.5 lbs. of narcotics collected and 15 felony
federal indictments. Gang -related aggravated assaults were down 53% in 2016 from 2011.
City Council Minutes of May 15, 2018
Page 3 of 35
Acting Chief Harvey related the reduction in felonious assaults to the Anaheim Police
Department's multi -pronged approach of intervention, suppression, and investigation. In terms of
violent crimes and property crimes over a five year period from 2011-2016, violent crime was
down 5.6% in Anaheim and up almost 12% County -wide. Property crime was up 10.8 % in
Anaheim, which was mainly due to theft. An analysis of the data showed this has been driven
solely by a dramatic increase in the number of thefts being reported. Specifically, staff has
identified a 104% increase in on-line reporting of thefts since 2007. Although a significant
increase, the higher reporting of theft could be in part attributed to the steps Anaheim Police
Department has taken to make it easier to report crimes via the internet. Over a 10 -year period,
violent crime was down in Anaheim almost 21 % versus the County down 13%. Property crime
was up over the 10 years, but again mainly due to the reporting of theft. He further noted that
burglaries were down 22% and auto theft was down 16%.
In response to Mayor Pro Tem Moreno's question regarding concentration of crimes in
specific areas of the City, Acting Chief Harvey reported his staff reviews "heat" maps to
monitor where the reports are coming from. Staff addresses each hot spot weekly and the
resort area accounted for a significant number of those crimes. He commented on the
private sale of cars and stated there was no data in terms of victimization of those
vehicles.
Acting Chief Harvey reported Anaheim is the third safest City in the country in terms of violent
crimes and the eleventh lowest in terms of property crime. He added violent crime continues to
trend downward and addressed Priority 1 Response Times. For the period of July 2017 through
April 2018, the average reduction in response time was 1 minute and 14 seconds.
DISCUSSION: In response to Council Member Vanderbilt's question, Acting Chief Harvey
reported Priority 1 calls were threats to life and property and crimes in progress. He added the
figure was an average of calls and incidents that would fall within that priority. In further response
to a question regarding the overtime budget, Acting Chief Harvey reported many of the events for
which the Department uses overtime were unforeseen and unpredictable. A homicide may run
from $60,000 to $160,000 during the course of an investigation. The majority of events permitted
through the contractual process, pay for Police services but do not cover all of the costs, which
the Police Department would absorb.
Council Member Faessel referenced Priority 1 Response Time and noted the current year FY
2017/18 was significantly below FY 2016/17. He requested additional information in terms of how
this was accomplished. Acting Chief Harvey acknowledged a consistent reduction and explained
the Police Department found the need for more officers on patrol. The Department reviewed
every position and did a cost/benefit analysis and has kept new, hired officers in patrol rather than
assigning them to special assignments. He added overtime expenditures in patrol have been
reduced and addressed augmentation. Response time has been reduced by adding more bodies
and monitoring which began in the fall of FY 2016/17. Additionally, he reported there was a
nexus between response time and the overall decrease in crime.
Council Member Faessel reported it was well known, among adjoining Police agencies, that they
can come to Anaheim for police support in terms of equipment and leadership skills.
Council Member Barnes stated she was interested in the Cadet Program and in young people
being involved in the Police Department. She asked about their duties and whether they were
paid. Acting Chief Harvey reported they are college students, are paid, there is a requirement
that they maintain a certain GPA, and they serve essential functions within the Department.
City Council Minutes of May 15, 2018
Page 4 of 35
Council Member Murray commented positively on the level of personnel achieved during the last
few years and acknowledged the Police Department for going above and beyond to serve the
community. She encouraged residents to watch each of the Police Department live streams and
asked that the City's Public Information Officer capture the videos for easy access through the
City's website and social media channels. She questioned whether increases in crime have a
correlation to AB -109 and Propositions 47 and 57.
Acting Chief Harvey noted without Council's support none of the improvements would have been
possible. He added, even with Propositions 47 ad 57, crime has decreased.
Council Member Kring thanked Acting Chief Harvey for his report and commented positively on
putting officers back in patrol. She asked for increased patrol on the west side, as people do not
feel safe.
Mayor Pro Tem Moreno asked for information regarding Priority 2 response times and Acting
Chief Harvey reported they were down as well, but priorities 3, 4, and 5 have not seen a similar
decrease in response times as the Department's focus must be on Priorities 1 and 2. Mayor Pro
Tem Moreno commented on staffing ratios being stagnant and asked whether there was a plan to
increase staffing.
Acting Chief Harvey reported the Department has not increased its professional/civilian staff since
the recession and noted it was a question of priorities. He noted the need to be mindful of the
needs of other City Departments and professional staff was being asked to do more. He reported
the call volume in the Communication Center was up, and it is one area where the Department
was looking at ways to re -position present staff to some of those positions. Additionally,
efficiency has been improved through the use of technology, but he acknowledged the need for
additional, professional staff to make everything run smoother.
Mayor Tait commented positively on decreased response times and asked about trends in gang
related violent crimes. Acting Chief Harvey noted it continued to trend down in 2017 and believed
it will continue trending down in 2018. The gang area is where the Police Department has the
most effect on crime.
Fire & Rescue Chief Randy Bruegman presented the Anaheim Fire & Rescue proposed FY
2018/19 Budget, including an overview of core services. Chief Bruegman described the
department's mission to ensure the safety and welfare of the public. He reported that they
provide Fire Suppression, EMS, Community Risk Reduction, and Emergency Management and
Preparedness services. Anaheim Fire & Rescue is also fortunate to have a Type I Urban Search
and Rescue Team, which was sent to Houston following Hurricane Harvey with FEMA Task
Force 5, and also assisted following the deadly mudslides in Santa Barbara. They also have a
Type I Haz Mat unit that works with two other teams in the County to provide a coordinated
regional response to these types of incidents. Several members of the HazMat team are also
part of the Task Force 5 team.
In recognition of the department's excellent service delivery, Chief Bruegman reported the
department achieved international accreditation status in 2014 and an ISO Class I rating in 2016,
which means lower insurance rates for Anaheim homes and businesses. Anaheim Fire & Rescue
is one of only 60 agencies in the United States that are both accredited and rated as a Class I
city.
Chief Bruegman reported the department's proposed budget for Fiscal Year 2018-19 is $92.4
million and makes up 5% of the total City budget; Fire's budget represents $74.3 million, or 18%
of the General Fund. The difference of $18.1 million represents the three JPAs the department
manages, capital improvement projects, and grants. He explained the department is reimbursed
City Council Minutes of May 15, 2018
Page 5 of 35
for medic support at Ducks and Angels games, the Convention Center, and other venues; and
Disney reimburses the cost of two dedicated medic units 14 hours each day. These
reimbursements, in addition to fees for paramedic response, inspections, and plan checks
contribute over $8.8 million to the General Fund. Labor costs represent more than 81 % of the
total budget. The majority of personnel expenditures are in the Operations and Community Risk
Reduction divisions and include firefighters, community risk reduction officers, and hazardous
materials inspectors. The Support Services division provides equipment for operations and
coordinates with Public Works to maintain and repair 11 fire stations and all Fire vehicles. Finally,
the Emergency Management and Preparedness division maintains 24/7 operational readiness of
the Emergency Operations Center, develops emergency plans, coordinates training exercises for
staff, residents, and businesses, and manages the CERT and RACES volunteers. The
department is supported by 276 full-time personnel and 25 part-time employees. The General
Fund supports 210 sworn and 34 civilian positions. The remaining 32 positions are funded by the
Dispatch and Training JPAs. Chief Bruegman reported between Fiscal Year 2010/11 and Fiscal
Year 2012/13, during the recession, the department lost 24 sworn positions, representing two full
fire companies. Of those 24, only three have been replaced. He explained when these positions
were replaced in the future, a fourth person can be placed back on the 3 -person engine
companies.
As for notable changes, Chief Bruegman reported seeing a trend of increasing call volume and
medical calls. In 2017, the department responded to approximately 39,000 calls; 85% of those
were medical calls. About 38% of the medical calls were low -acuity, meaning they were less
serious and may require a different type of response. In 2015, the Community Care Response
Unit (CCRU) was implemented to respond to these patients more efficiently. The unit provides
medical assistance on scene, eliminating the need to transport some patients to the hospital.
This year, the department began a partnership with Anaheim Police Department (APD) to
respond to the jail. When inmates require medical attention, officers can spend 3-5 hours waiting
with the inmate to receive treatment at the Emergency Room. In just the first five months of the
program, the unit responded to 41 jail calls and 2/3 were treated on site, saving APD officers an
estimated 120 hours. In response to the homeless situation, staff has found that the unit has
helped to augment the healthcare of this population. Medical calls for the homeless often fall into
the Low Acuity category and can be treated on scene by the CCRU. Last year the CCRU treated
147 homeless patients. The number of homeless calls has increased significantly, with 404 calls
from January through March of this year. APD Sergeant Michael Lozeau, Homeless Outreach
Team, summed up the impact of the CCRU in this area, stating: "The Community Care
Response Unit has become an integral partner with the Anaheim Police Department's Homeless
Out Reach Team (HOT) and the Psychiatric Emergency Response Team (PERT). The APD
HOT/PERT Teams have often called the CCRU for assistance to render medical aid to the
homeless population and people in mental health crisis they encounter in the field. When police
officers request CCRU to respond to this population, it helps build credibility for the officers that
we are in fact caring and want to help this population."
Chief Bruegman stated staff continues to transition the former Fire Prevention division to a more
widely -focused Community Risk Reduction division. Last year, new job classifications were
created that required more training and certifications for inspectors. This year, most of the
inspectors have completed the new requirements and are cross -training so they will be able to
conduct both a hazardous materials and a fire inspection in the same visit, thereby improving
customers' experience. Community engagement is very important and they look for opportunities
to engage with the public beyond the 911 call. So far this year, staff has participated in more
than 125 activities, reaching over 100,000 residents, businesses, and visitors. With the Home
Safety Visit program, they have been able to provide personal assistance to over 100 households
and have installed almost 250 smoke alarms. They continue to distribute helmets to Anaheim
children and teens with the Wear Your Helmet Like a Pro campaign to reduce head injuries and
City Council Minutes of May 15, 2018
Page 6 of 35
have distributed over 6,000 helmets to date. Anaheim Fire and Police collaborate to present the
Every 15 Minutes program at local high schools. A mock traffic collision is staged in front of the
campus and students are engaged in a scripted presentation that imagines the deaths of
classmates in a drunk -driving fatal collision. The department is excited to create opportunities for
young people in Anaheim; they coordinate with schools to visit classrooms and talk about careers
as fire fighters, community risk reduction officers, and support personnel and also teach in the
Public Safety Pathways program for middle school students. This year, they hosted the first Fire
Career Bootcamp for students from Anaheim High School. Students spent the day at North Net
Training Center learning about the academic requirements necessary to start the career path to
become a firefighter. They also were able to engage in hands-on activities that exposed them to
the job of a firefighter.
Chief Bruegman reported they are finding new ways to take advantage of data and technology to
become more efficient and best use City resources to meet community needs. They use actual
call data to create models for the Standards of Cover document and to drive decision-making
about staffing and equipment needs and the locations for capital improvement projects. They are
working with First Watch to create a real-time data dashboard that will ultimately be available at
Anaheim.net as part of a commitment to transparent government. Chief Bruegman reported
construction of Fire Station 5 at 2540 E. La Palma Ave. was nearly complete and the company
will move in early August. Station 5 is being moved from its current location on Kraemer because
call data showed the new location on La Palma would improve service and reduce response
times.
Chief Bruegman reported last year's fire season was particularly destructive. From Napa to
Ventura to Anaheim's Canyon Fires, fire agencies throughout California and beyond shared
resources to fight these devastating fires. For the Canyon Fires, Anaheim was supported by
more than 3,000 firefighters from agencies throughout the state. Fire season now seems to last
all year, and the Community Risk Reduction division is focused more than ever on prevention
activities. Chief Bruegman stated City Council received the Canyon After Action report and
approved the purchase of specialty vehicles for wildland fire fighting and contracts to increase
brush clearance along the high risk wildland interface. The Orange County Conservation Corps
will assist later this fall, but the goats will also return in the next few weeks to assist with brush
clearance.
Chief Bruegman stated the department was proud to be the managing partner of the North Net
Regional Training Center, Metro Net Communications Center, and OCCHMERA JPAs. North
Net, located on Orangewood across from the stadium, has been providing a high level of training
and education since 1976 to personnel from Anaheim, Orange, and Garden Grove. Many other
organizations, public and private, rent the conference room, classrooms, training tower, and
outdoor props. The Metro Net Communications Center was formed in 1997. Metro Net is
located at Anaheim West Tower and serves eight partner cities, providing 911 and EMS dispatch
service to more than 1.2 million people in an area of about 200 square miles. Last year, Metro
Net received almost 300,000 emergency 911 calls.
He further reported the department will be taking delivery of new equipment in the upcoming year.
They will be replacing a Tractor Drawn Aeriel truck that has reached the end of its useful
operating life. They expect to take delivery on a water tender, which is used to provide water to
Fire apparatus when hydrants are not available, such as in wildland fires. Two engines are
scheduled for delivery in August — ordered in last year's budget and staff is excited to get them
into service. They will also continue installing Emergency Vehicle Preemption devices to control
traffic signals, with installations at 123 intersections so far and up to ten more in the upcoming
months.
City Council Minutes of May 15, 2018
Page 7 of 35
To close his presentation, Chief Bruegman stated how proud and excited he is about the future of
Anaheim Fire & Rescue. The 2018 class of new firefighters will graduate on Friday morning at a
special ceremony at the Grove of Anaheim, to which the City Council has been invited. Due to
the high rate of retirees projected over the next five years, the department addressed staffing
needs and "building the bench" through 2022 in the recent Strategic Plan update. In the next
year, the department will recruit and test for the 2019 Fire Academy and will conduct promotional
testing for Engineer, Captain, and Battalion Chief vacancies as well. In addition to career
outreach at schools, the Explorer and Cadet programs help prepare young adults for the process
of entering the Fire Service if that is their goal, and just as importantly, teach them the character,
attitude and work ethic required for success in any career.
DISCUSSION: Council Member Faessel expressed appreciation for the Department's strategic
plan, commented on the CCRU, and wondered whether there should be more than one. Chief
Bruegman reported the strategic plan identified six units and agreed there need to be several
units to cover the demand. Council Member Faessel commended the Chief on their Explorer and
Cadet Program and shared he was saved after a fall, several years ago, by the Station 7 Team.
He looked forward to the opening of Fire Station 5.
Mayor Tait expressed his appreciation, referenced the Explorer and Cadet Program, and asked
about the percentage of Anaheim residents in the 2018 class of new firefighters. Chief Bruegman
did not believe any were from Anaheim, however, there were many Anaheim talented young
people involved in the Explorer and Cadet Program. He noted if the City wants to grow its own
talent, a different approach will be needed giving Explorers a pathway to being hired as a
firefighter. Currently, there is no career pathway and it will take a major investment on the City's
part as many go through the program and end up working for other fire agencies.
Mayor Tait asked Acting Chief Harvey how many upcoming Academy graduates were from
Anaheim, to which Acting Chief Harvey responded he did not currently have that information but
noted neither the Fire nor Police Departments hire enough people from Anaheim. He addressed
the Sycamore program, adding it has been in place for a couple of years and there was not yet
enough data to determine how many in the program will become Police Officers. He added they
have yet to connect to the high-school level but are working on it. Many times, officers are hired
by other agencies and then laterally transfer to the Anaheim Police Department.
Mayor Tait asked for additional information on the topic as well as a plan offering a career
pathway for Anaheim youth.
Mayor Pro Tem Moreno asked about the proportion of calls related to fire versus paramedic calls
and Chief Bruegman reported medical calls account for approximately 85% of total responses,
fire call account for about 4%, and service calls for 6%. He added the information was analyzed
by district with an increase of calls in the west. Mayor Pro Tem Moreno thanked Chief Bruegman
for the Department's response to calls related to issues with his daughter at school. He asked
about trends in the number of calls related to the homeless.
Acting Chief Harvey reported the number of homeless calls for service has remained constant at
approximately 15,000 calls per year or 8% of the total calls for service. There are other
communities in the county that have a higher percentage, but they do not have the call volume
that APD does. He added there was a significant impact on the Department and officers respond
to a problem for which there may not be an immediate solution. The costs could reach several
million dollars, at a minimum.
Fire Chief Bruegman reported last year, the Fire Department received over 1,600 calls for service
for the homeless population. He added the same people call multiple times and many times the
City Council Minutes of May 15, 2018
Page 8 of 35
reason for the call was lack of medication. He believed by providing education regarding levels of
healthcare, calls for service may be reduced. Chief Bruegman noted there was no specific team
to handle calls for service from the homeless and these occur throughout the City.
Council Member Murray thanked Chief Bruegman for the incredible work and services provided to
the community. She asked regarding the number of sworn personnel, pre -recession. Chief
Bruegman reported it was 234. Council Member Murray noted the Department was still below
pre -recession levels and the population has grown. Chief Bruegman reported it was
approximately 33% less than the current levels and, as the population increases, the volume of
calls will increase. He added the resort area pays for the Police and Fire resources provided by
the City. Council Member Murray reported personnel for the Police and Fire Departments are still
below the level of ten -years ago, and Chief Bruegman addressed the need for additional
personnel in the future including inspection staff. He added that the staffing plan presented last
year will be updated to reflect their need for additional staff.
Mayor Tait reported Anaheim has an average of 68,000 visitors, per day, seven days per week
and commended Acting Chief Harvey and Chief Bruegman for their successful operation of the
departments.
Council Member Faessel expressed concerns regarding the small number of Anaheim residents
going through the Explorer and Cadet Program with a career pathway to becoming a Firefighter.
He asked Mayor Tait if he would agree to direct staff to hold a workshop to study the matter and
Mayor Tait agreed.
Council Member Kring asked why there was so much focus on middle schools and not high
schools and felt focusing on middle schools might not be as appropriate. In terms of the Platinum
Triangle, she asked regarding considering placing a Fire Station there. Chief Bruegman agreed a
station will be needed there, and it should be considered within the next twelve -to -twenty-four
months. Since the City owns the property, it will take approximately fourteen months to build,
once the project is approved.
PUBLIC COMMENTS ON WORKSHOP:
Robert Williams commented on fentanyl training to ensure the safety of first responders and
suggested two Police Officers per unit/vehicle. Additionally, he suggested giving the Police
Department more resources to get out into the community and build rapport and trust.
Jim Ramirez, Vice President, Anaheim Firefighters Association, commented on their loss of fire
apparatus and personnel in 2009 and 2011, and stated they were still not yet at full recovery. He
spoke about the importance of having proper staffing in order to serve the community
appropriately and asked this be accomplished sooner rather than later.
ADDITIONS\DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
CLOSED SESSION — SPECIAL MEETING: At 4:25 P.M., Mayor Tait recessed to closed session
for consideration of the following items:
1. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of the California
Government Code Section 54956.9: One potential case.
City Council Minutes of May 15, 2018
Page 9 of 35
2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) 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, Acting Human Resources Director
Name of Employee Organizations: Anaheim Firefighters Association, Local 2899
4. CONFERENCE WITH LABOR NEGOTIATORS
(Subdivision (a) of Section 54957.6 of the California Government Code)
Agency Designated Representative: Jason Motsick, Acting Human Resources Director
Name of Employee Organizations: Service Employees International Union
5. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code Section 54957.6)
Designated Representative: Jason Motsick, Acting Human Resources Director, and a
Representative from Avery Associates
Position: City Manager
6. PUBLIC EMPLOYEE APPOINTMENT
(Government Code Section 54957)
Title: City Manager
At 5:35 P.M., Mayor Tait reconvened Anaheim City Council.
INVOCATION:
FLAG SALUTE:
PRESENTATIONS:
Pastor Rudy Trejo, Calvary Apostolic Church
Council Member Lucille Kring
Recognizing the 5th Annual Community Pride Poster Contest City -Wide
Winners
Sandra Sagert, President, Anaheim Beautiful, announced the organization's Rock -Around -the -
Clock Gala on June 6th, at 6:00 P.M. at Highway 39, where the Mayor will receive an honor and
presented the Contest City -Wide Winners including Elias Leon III, 1st Grade; Schweitzer
Elementary, Analina Marquez, 2nd Grade, Centralia Elementary; Gemma Garza, 3rd Grade,
Thomas Jefferson Elementary; Briana Lindsey, 4th Grade, Imperial Elementary; Kassandra
Prieto, 5th Grade, Peter Marshall Elementary; and Arlette Florencio, 6th Grade, Walter
Elementary and, thanked the 2018 event sponsors.
Recognizing the Anaheim Poet Laureate
Mayor Tait commented on the importance of the arts in Anaheim and introduced the City's First
Poet Laureate Grant Hier.
Grant Hier thanked the City, Council, staff, members of the community, and others instrumental in
choosing him as the City's Poet Laureate. He addressed the importance of literature and poetry
in making better citizens, thanked members of his family, spoke about his and his family's history
in Anaheim, referenced his book, and explained his goal is to encourage Anaheim residents to
read and write. He presented Mayor Tait and Council with copies of his new book.
City Council Minutes of May 15, 2018
Page 10 of 35
Reconizing the Lord Baden-Powell School for their Act of Kindness
Magnolia School District Superintendent Frank Donavan reported there was a student with
normal cognition, but with physical needs, at Lord Baden-Powell Elementary School. Sixth -grade
students attended an outdoor education retreat in the mountains, and it was hard for the
physically -challenged students to get around in her wheelchair. The students held a kindness
drive to raise funds to buy her an off-road wheelchair. They raised over $2,000 and bought the
wheelchair for the student. The following year, the students donated the wheelchair to the
Outdoor Education Program for use by other challenged students. Mr. Donavan noted it was a
true, intrinsic act of kindness, as the students did not tell anyone of their actions, not wanting
notoriety.
Principal Rudy Aguila recognized the teachers who were instrumental in this effort, Laura Cox,
Grace Han, and Sophara Wrathall, Para -Educator Martha Pelachik and students, Lezlie Moreida,
Ariana Martinez, Jerry Aguayo -Perez, and Andrew Rodriguez and thanked them, Mayor Tait,
Council, and the City for the honor.
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Proclaiming May 19, 2018, as Kids to Parks Day
Ryan Spagg, Community Services Department and Oak Canyon Nature Center, Part Time Senior
Program Specialist, addressed services provided by the Oak Canyon Nature Center, accepted a
proclamation declaring May 19, 2018, as Kids to Parks Day, and thanked Council and the City for
the recognition. He invited residents to enjoy the City's parks and trails and noted additional
information may be obtained at www.anaheim.net/parks.
Proclaiming May 20-26, 2018, as Public Works Week
Director of Public Works Rudy Emami accepted a proclamation declaring May 20-26, 2018, as
Public Works Week. He thanked Council and the City for the proclamation and addressed
services provided by the City's Public Works Department and its mission.
Mayor Tait thanked him and the Public Works Department for a job well done.
Proclaiming June 2018, as Men's Health Month
Proclaiming June 1, 2018, as Say Something Nice Day
ADDITIONS/DELETIONS TO THE AGENDA:
Acting City Clerk Theresa Bass announced Item No. 14 was withdrawn by staff.
PUBLIC COMMENTS (all agenda items, except public hearings): Prior to receipt of public
comments, a brief decorum statement was provided by Acting City Clerk Theresa Bass.
Cecil Jordan Corkern, Outreach Homeless Ministries, read a passage from the Bible and reported
he was working on publishing a Bible magazine.
Duane Roberts disputed the assertion that any attempt to raise the minimum wage of Disney
hotel workers above their current levels offered strong disincentives for businessmen to build
hotel properties. He commented on propaganda issued by the Chamber of Commerce that
raising the minimum wage will cause the end of hotels being built in the City. He referenced a
report stating the Los Angeles hotel market was suffering because of having to raise the minimum
City Council Minutes of May 15, 2018
Page 11 of 35
wage and noted hotels in Los Angeles were thriving, many were being remodeled, and many
others were being constructed. Mr. Roberts stressed paying higher wages to hotel workers does
not stifle upscale hotel development.
Carol Latham acknowledged and thanked Council for the recognition for the City's new Poet
Laureate. She announced the Anaheim Arts Council was holding its 26th Annual Children's
Festival at Pearson Park on Saturday, May 19, 2018, from 11:00 A.M. to 4:00 P.M. Additionally,
she announced the next exhibit at the Muzeo would be works by artist, Jeffrey Mitchell, entitled
"Ghost Stories and Fairy Tales". It will run from May 19th to July 15th and a VIP reception will be
held Friday evening.
Council Member Murray thanked Ms. Latham for being the inspiration for the
original request to have Council consider establishing a Poet Laureate for the City.
R. Joshua Collins encouraged the public to give their lives to Jesus and spoke about his friend,
Patsy, who was homeless and recently passed away. Additionally, he reported taking a video of
an Anaheim Police Officer taking people's property and noted the problem continued. He stated
there are people on the streets with serious health conditions that must be treated better than
they have been and have their rights protected.
Bob Donelson spoke in support of Item No. 23 and encouraged voters to approve it. He reported
workers seeking wage increases work for companies that get a lot of money from the City in
terms of incentives. He believed, as they reap the benefit of being in Anaheim, they must share
the wealth with their workers. Mr. Donelson agreed with Mr. Roberts's comments, noting the City
of Los Angeles was not suffering because they raised the minimum wage. Additionally, he
believed Disney was a job killer, as they have closed various businesses at Downtown Disney
and approximately 700 people were losing their jobs. He believed Council should censor Council
Member Murray and alleged she violated the Brown Act trough previous comments about the
initiative when it was not on Council's agenda.
Council Member Murray addressed Mr. Donelson's statements and reported she
shared facts with Anaheim residents.
Colin Womer, Drug Free Anaheim, provided a brief update on the Drug Free Anaheim program
noting the clearing of the Santa Ana River bed dispersed many people that he would have been
able to offer services to in one central location. He reported finding new ways to do more
outreach and so far, this year, the program has placed 106 participants in treatment facilities
throughout Orange County.
Mayor Tait commented positively on the Drug Free Anaheim program and thanked
Mr. Womer and the Anaheim Police Department for their great work.
Gloria Ma'ae referenced Item No. 23 and thanked Council Members for their consideration and
comments on the matter. She stated poverty was a national problem, not exclusive to resort
workers, and believed this was a political issue because of incentives provided by the City. She
opined this was a labor dispute and the City should not be involved.
Jill Kanzler, Executive Director, SOAR, spoke in opposition to Item No. 23 because she believed
it will hurt the Anaheim Resort District and was a job -killing initiative. She added SOAR will
educate residents about the dangers of the initiative and opined, if enacted, the measure will cost
3,000 construction jobs and over $300 million over the next three decades. Ms. Kanzler spoke
about job opportunities in the Anaheim Resort District and about the initiative hurting Anaheim
residents.
City Council Minutes of May 15, 2018
Page 12 of 35
William Fitzgerald, Home Owners Maintaining Our Environment, noted more than 15,000 Disney
workers are paid starvation wages and taxpayers pay to subsidize them through welfare,
subsidized housing, medical care, school lunches, food stamp,s and earned income tax credits.
He added Disney has spent almost $400,000 fighting the initiative. He opined Council Members
will take steps to stop it from being on the November ballot.
Jeanine Robbins listed statistics from the Standard University California Poverty Measure
including that 20% of Orange County residents live in poverty, 25% of Orange County children
live in poverty, only 35% of Orange County jobs pay enough to afford a one -bedroom apartment
for a one -income family, and more children are living in overcrowded housing due to stagnant
wages. She commented on arguments threatening to take away jobs every time the City or its
residents attempt to make any demands of the resort. She reported certain words have been
used to scare underpaid and desperate residents and felt consideration should be given to the
jobs that will be "killed". She opined construction will not be cancelled and Disney will not start
firing people. She spoke in support of Item No. 23 and noted it was time to allow Anaheim
residents to carve a path towards the future. She reported someone she knows just got a job at
Disney's costuming department and requirements included five years of theater experience, not
including high school, and a college degree, with a starting wage of $12 an hour.
Mike Robbins, Housing is a Human Right, OC, did not believe those from outside Anaheim
should come speak about wages. He referenced the La Palma Check-in Center, noting it
provides a valuable service to the homeless population and reported City staff has now
developed a concept to relocate it The Church, in District 5, with unknown services. He
wondered if it will provide storage, food, health care, job or housing placement and will be a
replica of the West Anaheim Check-in Center, which services only 15 people, while the present
La Palma Check-in Center services more than 90 people. He alleged the homeless population
increases each day, and this was not the time to cut or reduce services, but rather increase
services, open a Check-in Center in District 5, and keep La Palma open as well. Additionally, he
believed CityNet should be involved in providing services at the La Palma Check-in Center and
hoped the City will increase the service level for people on the streets.
Jose Trinidad Castaneda thanked Council for its continued support of the LGBTQ community and
spoke in support of Item No. 02. He thanked the City for recognizing Harvey Milk Day and
LGBTQ Pride Month and spoke about the American values of inclusivity and diversity.
Mikey Trujillo, Disney Ambassador, commented on the partnership of Disneyland and First Book
to distribute books to children in need and invited the children in the community to the Anaheim
Public Library, from 10:00 A.M. to noon, on Saturday, June 9, 2018 where there will be a book
distribution. A special VIP hour will be held for educators, between 9:00 A.M. and 10:00 A.M.,
and he invited community leaders and City Council to the event.
Andrea Manes announced the Children's Festival by the Anaheim Arts Council and the City at
Pearson Park on May 19th, from 11:00 A.M. to 4:00 P.M. Additionally, she announced the
upcoming St. John's Greek Festival on June 18, from 3:00 P.M. to 10:00 P.M. and throughout the
weekend.
Simone greeted Council in several languages.
Kenneth Batiste stated the more languages people speak, the more bridges can be crossed. He
spoke about the Pledge of Allegiance and the Golden Rule. He referenced Item No. 23 and the
number of Disney workers and children who are food insecure. He reported the Hilton and
Sheraton both pay $16/hour minimum with full benefits and without government subsidies. He
City Council Minutes of May 15, 2018
Page 13 of 35
opined if they can pay those wages, Disney can as well. He spoke about those who work to help
the homeless, noting they fight for those who cannot fight for themselves.
Cathy Dutton referenced Item No. 23 and stated she believed minimum wage jobs were entry-
level positions requiring low job skills and providing an opportunity to learn on the job, continue
education, and move up the ladder to a living wage. She shared her career growth and
commented on others who began at entry-level and worked their way up. She expressed
concerns with unintended consequences of the ballot initiative and lost opportunities for high
school/college students with the loss of entry-level jobs. Ms. Dutton opined it was a mistake to
encourage the initiative.
Adam Wood, BIA/OC, referenced Item No. 10 in terms of an increase in park development fees.
He believed voting on this matter tonight undermined the process in determining what those rates
should be set at. He requested that Council continue this item or strike the recommendation
related to increasing park development fees, the item should not be on the Consent Calendar,
and offered to work with the City to develop real solutions in the midst of the current housing
crisis.
Martin Lopez referenced Ms. Dutton's comments, the Clarion hotel's employment practices, and
his family's experience. He referenced comments made by Council Member Murray at a previous
Council meeting regarding unions not approaching developers, and stated over 21,000 Anaheim
workers signed the petition in favor of the initiative and noted the impact on the local economy
when the wage floor is increased has been demonstrated to be positive. When workers have
more money in their pockets, they spend it locally, creating jobs, and strengthening the local
economy. Mr. Lopez commented on a living wage initiative approved in Long Beach and
reported the small business community thrived. He urged Council to ensure Item No. 23 makes it
to the November ballot and let voters decide.
Council Member Murray stated Mr. Lopez represents the union that has brought
the initiative forward. She reported they did not meet with developers until after
the agreement was adopted and she never received a call from them.
Janette McGill & Thailer Powell, Euclid Shopping Center, expressed concerns with loitering by
transients, drugs, crime, vandalism, and trash. She reported the Police Department was not
quick to respond, as they have higher -priority issues to address. She added tenants were
becoming concerned for their safety, their employees, and their patrons' safety. She reported the
shopping center has spent approximately $70,000 for security measures, spoke in support of
hiring more Police Officers, and offered to work with the City to resolve the problem.
In response to Council Member Vanderbilt, Ms. McGill addressed the location of
the shopping center and noted it was 100% leased.
Nancy Davis expressed concern over the new ordinance prohibiting RVs from parking on City
streets, reported there were many people who are disabled and unable to move, and noted
parking in RV parks is expensive. She understood the City was considering allowing RVs in
specific, vacant lots, and stated she was very stressed because she will have nowhere to go.
She hoped the City of Kindness will extend its kindness to RV owners.
Council Member Kring stated this is one of the unintended consequences of the
ordinance and asked City staff to consider the matter and look into what can be
done to help.
City Council Minutes of May 15, 2018
Page 14 of 35
Todd Ament, Anaheim Chamber of Commerce, "No on the Anaheim Job Killer Initiative
Coalition", urged Council and voters to reject the initiative considered under Item No. 23. He
opined it will impact all hoteliers, restaurants, and businesses in the Anaheim Resort District and
asked Council that the analysis be robust and completed by a reputable, trusted, and unbiased
consultant. He submitted a letter advising Council to look at specific issues in the fiscal analysis
and stated the City should examine the impact of the job -killing initiative on Anaheim's ability to
attract and retain business and employment, and perform an assessment based on available
economic literature, on impacts of similar wage increases elsewhere, to include loss of hours, and
elimination of jobs, on both impacted businesses and adjacent businesses. He recommended
looking at the LAX and Long Beach hotel living -wage ordinances as well as Seattle and local
minimum -wage ordinances. Additionally, he believed the City should examine the impact of the
initiative on City revenue short- and long-term and on the City's ability to pay off long-term bond
debt; evaluating the benefit, or lack thereof, of the initiative to Anaheim workers and residents;
and the impact on entry-level jobs for Anaheim youth.
Trevor O'Neil opposed Item No. 23 and listed issues that Council should discuss regarding the
potential impact of the measure. He reported data from the U.S. Department of Labor showed
the median hourly wage among hospitality, food service, and janitorial workers in the Los
Angeles, Long Beach, and Anaheim Metro Area ranged from $11.02 to $13.52, depending on the
specific occupation. If a select group of employers is mandated to pay upwards of 50% more
than the market wage, he wondered if neighboring businesses would be able to attract and retain
a workforce and whether landlords will need to increase rents. He asked about long-term
employment and development impacts across the City, and opined if it is enacted, the true barer
of the burden will be the people of Anaheim. He opined the measure will cause job losses and
cancellation of four -diamond hotel projects and will cost millions of dollars to the City in new
Transient Occupancy Taxes (TOT). The City will not have money to increase its Police and Fire
force, to invest in Anaheim neighborhoods, and to pay off its bond debt and unfunded liabilities. .
Danielle Wilson, Research Analyst, Unite Here, Local 11, spoke regarding Item No. 23. She
reported the policy will only apply to hospitality employers in the Resort Area that have benefitted
from public subsidies and listed the qualifications an employer would need to comply with, to be
covered under the initiative. She encouraged everyone to read through the ordinance,
specifically the definition section.
Council Member Murray asked Ms. Wilson to address the definition of "adjacent
to" businesses. Ms. Wilson stated "adjacent to" is not a definition but wording
within the definition of hospitality industry.
John Araujo thanked the City and Council for its continued support of Harvey Milk Day and
LGBTQ Pride Month.
Wendi Evans thanked Council for recognizing Harvey Milk Day, noted Anaheim is an openly
diverse city, and hoped the City will continue recognizing and supporting its LGBTQ residents.
She listed organizations with which she works, reported they will continue promoting LGBTQ
family events, and hoped the City will jump on board with those projects. Additionally, she spoke
in support of living wages and shared that her mother-in-law worked for Disney for many years
and struggled with multiple jobs to make ends meet.
Laura Kanter, Director of Advocacy and Youth Programs, LGBTQ Center in Orange County,
thanked Mayor Pro Tem Moreno for his continued effort in lifting up the story of Harvey Milk. She
noted within each population impacted by social and economic inequities, LGBTQ people fare the
worst and LGBTQ people and trans women of color are the most victimized by hate crimes.
Additionally, she hoped the City will support the living -wage initiative.
City Council Minutes of May 15, 2018
Page 15 of 35
Wes Jones, Anaheim People's Homeless Taskforce, thanked Council for its support of Harvey
Milk Day and Pride Month and stated his belief that the relocation of the La Palma Check-in
Center to District 5 was not a good fit. He spoke in support of keeping it in its current location.
Regarding Item No. 23, he noted it was a matter of democracy, for the people to decide.
"The Cameraman" noted the Primary Election will be held on June 5th and Council Member Kring
is running for Supervisor in District 4. He shared his opinion of her qualifications and stated it is
the responsibility of every voter to look deeper into candidates. Additionally, he spoke about the
ticketing machine in the Police Department and the length of time needed to resolve citation
issues. He opined there need to be more options in order to make the process more efficient. He
referenced previous comments by Council Members and addressed responses to same.
Ryann Higgins, President, North Anaheim Little League, provided a brief history of the
organization and reported, due to closures at Sunkist Elementary School, they do not have a field
on which to play. In speaking with the school district, she found there were no future plans for a
multi -use baseball field. She reported that until Sunkist Elementary School reopens, they will play
on a field at Pioneer Park and stated having a multi-purpose field for soccer and other sports in
the La Palma Park area, would benefit the organization tremendously.
Jonathan Walker reported Disney workers bring magic and hard work and are not receiving their
share of Disney's success. He reported many cast members live in poverty and are often food -
challenged, cannot afford decent housing, and some are homeless. Mr. Walker added they just
want a living wage and urged Council to help in the time of need.
Jordan Brandman asked Council to vote in favor of Item No. 02, spoke about the importance of
recognizing Harvey Milk Day, and urged Council for its support.
Mark Richard Daniels quoted from the U.S. Constitution that "all men are created equal" noting it
does not exclude the poor, minorities or anyone. He spoke about the importance of the initiative
relative to Item No. 23 qualifying and passing, because Anaheim is the City of Kindness and will
lead the way.
Jeff LeTourneau, Vice Chair, Democratic Party of Orange County, spoke in support of Item No.
23 and felt any thought that the construction of hotel projects will be cancelled, and jobs will be
eliminated was untrue. He addressed Item No. 02 and thanked Mayor Pro Tem Moreno for
bringing the matter forward and taking the lead.
Bryan Kaye referenced Mayor Tait's previous comments regarding the public's right to speak at
Council meeting and referenced the Anaheim White House, reporting he helped build it by
donating approximately $8,000 in time and materials. Additionally, he commented on donations
to Council Members by the Police Department and Disney and how that affected their decisions.
Vern Nelson thanked Council for bringing forward Item No. 02 and recognizing Harvey Milk Day
and Pride Month. He urged Council to keep the La Palma Check-in Center open and restore the
services it provided and asked that Council direct staff to agendize the matter for a future Council
meeting. He addressed Item No. 23, noting the measure will proceed with or without a fiscal
impact study, commented on subsidies received by Disney from the City, and addressed
comments by Council Members.
Lou Noble noted if you repeat a lie sufficient times, it will be believed. He reported people are
living in their RVs, cars, or in the streets, are being oppressed, and die every day. He opined
services at the La Palma Check-in Center should be restored and the City should provide a
campground or other facility for them to stay and store their things.
City Council Minutes of May 15, 2018
Page 16 of 35
Pat Davis spoke regarding Item No. 23 and asked for Council's support of a living wage. She
spoke regarding Item No. 02 and opined the matter should be a matter of course going forward.
Ms. Davis reported homelessness has not been solved and reported the referenced "unintended"
consequences of the parking initiative and noted people came to the Council meeting where it
was discussed and told everyone what would happen if the ordinance was passed. She stressed
the need for Council to see what was going on at the different homeless centers and felt some of
the deaths could have been avoided.
David Duran held a moment of silence for the homeless and commented the recent death of a
homeless person and felt it should give Council thought. He felt Council was out of touch with
what was occurring in the City in terms of homelessness and invited them to a ride -along to learn
some of the challenges being faced by the homeless.
Reyna Handley, Unitarian Universalist Church, thanked Council for its service, expressed
excitement at Council's chance to make history, and prayed that each child in Anaheim has a
safe, warm bed to sleep in, has food to eat every day, has a parent who can buy them a book,
has a schedule so they can read to their child, and knows where each child is.
COUNCIL COMMUNICATIONS/AGENDA REQUESTS:
Council Member Kring requested an agenda item in June to address options on city -owned or
business -owned properties for RV parking and stated Council had recognized Harvey Milk Day
and LGBTQ Month for several years.
Mayor Pro Tem Moreno thanked speakers for sharing their views and requested three agenda
items in June, as follows: 1) a report by the City Attorney regarding State campaign disclosure
laws and their application to local elections; 2) a proclamation on June 12th for Refugee Day; and
3) a full briefing on the ACC -OC and local legislators' suggested Orange County Housing Trust.
Council Member Faessel acknowledged National Police Week, expressed his gratitude to the
Anaheim Police Department, and highlighted their hard work on apprehending suspects from an
armed robbery at Walgreens on May 11th. He also requested a proclamation honoring the 23rd
anniversary of the Flag Day parade and celebration.
Council Member Vanderbilt requested that the upcoming discussion on RV parking be expanded
to include widening the boundaries of areas where on -street car sales were prohibited.
Council Member Murray requested an agenda item for the first meeting of June opposing the OC
Mobile Needle Exchange, individual department budget workshop videos be captured and posted
on the city's website and distributed via social media, and a Closed Session item to discuss the
recruitment and appointment process of the Chief of Police.
CITY MANAGER'S UPDATE:
Interim City Manager Linda Andal reported nearly 200 city employees and their families
participated in the first Big Give event last Saturday and provided highlights of the nine projects
that were completed to benefit the community.
At the request of Mayor Tait, regarding the Police Chief recruitment, Ms. Andal summarized the
process thus far: In January she received direction from Council to move forward with a
recruitment for the Chief of Police; an outside recruitment firm was hired upon recommendation of
the Human Resources Department; staff and the recruiter met with three labor groups and held
two community and two employee meetings to obtain feedback and suggestions; the recruitment
flier was advertised; the recruiter conducted initial interviews in April and presented her with final
City Council Minutes of May 15, 2018
Page 17 of 35
candidates in early May, for which interviews were scheduled this week and any final selection
would be presented to Council.
CONSENT CALENDAR: At 8:35 P.M., the Consent Calendar was considered with Council
Member Murray pulling Item Nos. 02 and 10, Council Member Faessel pulling Item Nos. 07, 15,
and 20, and Mayor Tait declaring a conflict of interest on Item No. 06.
MOTION: Council Member Kring moved to waive reading in full of all ordinances and resolutions
and to adopt the balance of the consent calendar as presented in accordance with reports,
certifications, and recommendations furnished each City Council Member and as listed on the
consent calendar, seconded by Council Member Faessel. . ROLL CALL VOTE: AYES — 7:
(Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel).
NOES — 0. Motion carried.
B105 1. Receive and file minutes of the Sister City Commission meeting of March 26, 2018.
3. Accept the lowest responsive bids of Vulcan Strength Training Systems, Coast Fitness,
D180 and Extreme Training Equipment Factory Outlet Inc. and authorize the Purchasing Agent
to issue three Purchase Orders, in the respective amounts of $16,213, $17,600 and
$70,352 plus applicable tax, for the purchase of fitness equipment, in accordance with Bid
#9109.
4. Accept the lowest responsive bid of California Waters Development, Inc., in the amount of
D180 $95,036, to provide maintenance and repair services for water features, including weekly
cleaning service, supply of needed chemicals, quarterly and semi-annual inspections of
pumps and piping, and winterization service during down months (bid items #3432 only)
at Colony, Ponderosa, and Miraloma Parks and Anaheim Police Department's main
station 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 #9099.
5. Accept the bid from Roy Allan Slurry Seal, Inc., in the amount of $1,022,320, to provide
D180 slurry seal and crack seal repairs for streets and alleys 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 #9118.
6. Award the contract to the lowest responsible bidder,R. J. Noble Company, in the amount
AGR- of $447,975.59, for the Kraemer Boulevard and Orangthorpe Avenue Rehabilitation
11108 Project; authorize the Finance Director to execute the Escrow Agreement; determine the
project is categorically exempt under the California Environmental Quality Act; approve
AGR- the Joint Participation Agreement with the City of Placentia for partial funding of design,
11108.1 construction, and administration of the Project and periodical land surveying services on
Chapman Avenue and Orangethorpe Avenue.
Mayor Tait reported a potential conflict of interest on Item No. 06. ROLL CALL VOTE: AYES — 6:
(Mayor Pro Tem Moreno and Council Members Murray, Vanderbilt, Barnes, Kring, and Faessel)
NOES — 0. ABSTENTION — 1: (Mayor Tait). Motion Carried.
City Council Minutes of May 15, 2018
Page 18 of 35
D182 8. Approve and adopt the 2018 Integrated Resource Plan (IRP) for the City of Anaheim
(Anaheim), including the Renewable Energy Procurement Plan and Enforcement
Program, that ensures Anaheim achieves a 50% renewable energy resource target by
2030, greenhouse gas emission targets established by the California Air Resources
Board, and all other Senate Bill 350 mandates; and authorize the Public Utilities General
Manager, or designee(s), to take all actions as are necessary or advisable to implement
the IRP, consistent with the mandates of California State law including, but not limited to,
de minimis revisions to the IRP to address any California Energy Commission
recommended revisions, periodic updates to IRP Appendix A, and data disclosures, as
well as prepare, execute, certify, deliver, upload, and update any and all documents,
information, data, declarations or affidavits, certifications, notices, consents, disclosures,
plans, reports, filings, and compliance submittals.
D180 9. Waive the sealed bidding requirement of Council Policy 4.0 and authorize the Purchasing
Agent to issue master agreements to Academy Electric, Inc. and Kourtis Industries Ltd., in
a combined not to exceed amount of $60,000, to perform as needed electrical repair work
for the period May 16, 2018 through July 31, 2018.
11. Approve the Anaheim Tourism Improvement District Fiscal Year 2016/17 Annual Reports
T108 for the marketing and transportation component funds.
12. Approve an agreement with Automated Cash Management Systems, Inc. (ACMS) for the
AGR- installation, operation and maintenance of automated teller machines (ATMs) at the
11110 Anaheim Convention Center for a three year term with two additional one-year optional
renewals in which ACMS will charge $3.25 per approved transaction to ATM users and of
that amount ACMS will pay to the City a $2.00 per transaction fee which will result in an
estimated revenue in the amount of $26,000 annually and an additional one- time signing
bonus payment in the amount of $2,000 will also be remitted to the City; and authorize the
Convention Center Executive Director to administer the agreement and execute any
optional renewals under the terms in the agreement.
13. Approve the Final Map and Subdivision Agreement with Anaheim Townhomes, LLC for
AGR- Tract No. 18046 located at 2726 West Lincoln Avenue to establish a one -lot 34 -unit
11111 airspace residential subdivision.
14. Approve and authorize the Community Services Director to execute an agreement with
the Orange County Flood Control District (District) adopting a strategy to process
encroachment permits allowing the City to design, construct and maintain bikeways on
District maintenance roads throughout the City as funding becomes available, and
determine that the agreement is not subject to the California Environmental Quality Act
pursuant to Sections 15060(c)(2), 15060(c)(3) and 15061(b)(3) of Title 14 of the California
Code of Regulations because there is no possibility that these actions may have a
significant effect on the environment and because these actions do not constitute a project
as defined in Section 15378 of Title 14 of the California Code of Regulations (continued
from Council meeting of May 8, 2018, Item No. 13).
Item No. 14 withdrawn by staff. No action taken.
City Council Minutes of May 15, 2018
Page 19 of 35
16.
Approve and authorize the City Manager to execute and administer Professional Services
AGR -11112
AGR -11113
Agreements with KSA Design Studio, Inc., KTGY Group, Inc., M. Arthur Gensler, Jr. &
AGR -8098.A
Associates, Inc., RRM Design Group, Seibert Perkins Design, Urban Arena, Inc., Urban
AGR -11114
Field Studio, LLP, and RDC -S111, Inc., each in an amount not to exceed $100,000 and
AGR -8060.A
AGR -9584.A
each for a one-year term beginning January 1, 2018, with two one-year extensions for on -
AGR -8782
call architectural consulting services.
AGR -11115
17. Approve and authorize the Human Resources Director to execute and administer
AGR -6700.A agreements with ICMA-RC, as the Defined Contribution Plan Provider, for the 457(b),
401(a), Part -Time Seasonal, and Retiree Health Savings Plans for a five-year period with
two optional one-year extensions.
18. Determine that SCE Contract No. 9.1798 and SCE Contract No. 9.1579 (collectively the
AGR -1955.D License Agreements) with Southern California Edison Company (SCE) for existing Public
AGR -1976.0 Utilities Department electric facilities and infrastructure remaining within the SCE right-of-
way are categorically exempt from the California Environmental Quality Act pursuant to
Section 15301(b) of Title 14 of the California Code of Regulations; approve electric
transmission and fiber optics right-of-way license agreement between the City and SCE
(SCE Contract No. 9.1798) and an electric overhead and underground distribution right-of-
way license agreement with SCE (SCE Contract No. 9.1579), in the amounts of $8,716.58
and $12,867.11, respectively, for the first year with 3% annual escalations for each of the
four remaining years thereafter; and authorize the Public Utilities General Manager to
execute the License Agreements and related documents and to take such actions as
reasonable or necessary to implement and administer the License Agreements.
C350 19. RESOLUTION NO. 2018-050 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM adopting the Mitigated Negative Declaration and Mitigation Monitoring
AGR- Plan No. 2018-001 for rehabilitation and expansion of the Lenain Water Treatment Plant
10495.1 supported by those findings required by the California Environmental Quality Act.
AGR -
10495.11 Authorize the Public Utilities General Manager, or designee, to negotiate and execute a
AGR- Lake and Streambed Alteration Agreement (LSA Agreement) and any related documents
10495.111 with the California Department of Fish and Wildlife (DFW), in an amount not to exceed
$7,000, for rehabilitation work requiring DFW approval, and take such actions as are
AGR- necessary to implement and administer the LSA Agreement; award the construction
10495.1 contract to the lowest responsible bidder, Pacific Hydrotech Corporation, in the amount of
$15,508,000, for the construction of the Rehabilitation and Expansion of Lenain Water
Treatment Plant Project (Project) and authorize the Finance Director to execute the
Escrow Agreement pertaining to contract retentions; approve and authorize the Director of
Public Works to execute an agreement with MNS Engineers, Inc., in the amount of
$983,012 plus an additional 10% for as -needed extra services, for construction
management services; and approve and authorize the Public Utilities General Manager to
execute the First Amendment to Agreement with GHD Inc., increasing compensation from
$943,188 to $1,401,571, for additional engineering services for the design of the Project.
21. RESOLUTION NO. 2018-053 A RESOLUTION OF THE CITY COUNCIL OF THE
P124 CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real
properties or interests therein (City Deed No. 12188, 12189, and 12190; for public right-of-
way purposes).
City Council Minutes of May 15, 2018
Page 20 of 35
22. Approve minutes of City Council meetings of September 12, 2017, September 26, 2017
D114 and October 6, 2017 (special meeting).
END OF CONSENT CALENDAR: 9:33 P.M.
2. Approve recognitions recognizing Immigrant Heritage Month (June 2018), LGBTQ Pride
D116 Month (June 2018), Acaciawood Preparatory Academy students who placed in a
statewide history paper competition, the 60th Anniversary of St. Justin Martyr Church
(May 27, 2018), and Harvey Milk Day (May 22, 2018).
DISCUSSION: Council Member Murray reported Council has recognized Harvey Milk Day since
2013 and acknowledged and thanked former Council Member Brandman for authoring it. She
asked that it be recognized, indefinitely, as part of the City's ongoing recognition program.
Acting Assistant City Manager Greg Garcia noted the City revised its Council Policy relative to
proclamations and recognitions, did away with the annual calendar of proclamations, and if there
was a proclamation or resolution requested, it needs to be requested by a Council Member during
a Council meeting.
Council Member Murray would like Council to reconsider the policy, as there are specific
programs recognized every year which should be automatic.
MOTION: Council Member Murray moved to approve recognitions recognizing Immigrant
Heritage Month (June 2018), LGBTQ Pride Month (June 2018), Acaciawood Preparatory
Academy students who placed in a statewide history paper competition, the 60th Anniversary of
St. Justin Martyr Church (May 27, 2018), and Harvey Milk Day (May 22, 2018), seconded by
Council Member Faessel. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members
Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried.
Mayor Pro Tem Moreno asked staff to issue the proclamation as soon as possible, so Council
Members can sign it by May 22, to acknowledge the day with community members. He looked
forward to considering the matter through the budget process as well.
7. Award the contract to the lowest responsible bidder, All American Asphalt, in the amount
of $396,233, for the Slurry Seal Group 2 Project, authorize the Finance Director to
AGR- execute the Escrow Agreement, and determine the project is categorically exempt under
11109 the California Environmental Quality Act.
DISCUSSION: Council Member Faessel recognized actions taken on Items No. 05, 06, and 07,
noting they total almost $2 million of road repair. He commended the City's Public Works
Department for the fine job the department is doing.
Mayor Tait congratulated Public Works staff for a job well done.
Mayor Pro Tem Moreno asked whether any of the funds are SB 1 monies, and Public Works
Director Rudy Emami responded affirmatively, noting the department tries to stretch money as
much as it can and takes advantage of good contractor pricing.
Council Member Murray asked regarding the possibility of adding signage indicating projects are
funded by SB 1, as is done with Measure M funds. She felt it would be helpful for residents to
know where the source of funding comes from. Mr. Emami reported posting project information is
a City requirement to inform the public of the dates of construction and the source of funding.
City Council Minutes of May 15, 2018
Page 21 of 35
MOTION: Council Member Faessel moved to award the contract to the lowest responsible
bidder, All American Asphalt, in the amount of $396,233, for the Slurry Seal Group 2 Project,
authorize the Finance Director to execute the Escrow Agreement, and determine the project is
categorically exempt under the California Environmental Quality Act, seconded by Council
Member Kring. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno,
Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried.
10. Approve the Anaheim Parks Plan.
D150 Community Services Director Larry Pasco reported last February, the City Council approved
funding for an Anaheim Parks and staff was asked to evaluate the City's park system, including
maintenance and conditions, look to see where Anaheim's parks and facilities rated when
compared to other cities and national standards, provide recommendations, and to delve into our
needs and some of the costs associated. The Park and Recreation Commission recommended
approval of the Parks Plan on April 11, 2018. Over the past 12 plus months, staff conducted a
highly successful survey of park users and took input from a number of important groups,
including, the City Council Work Group of Council Member Faessel, Council Member Barnes, and
Council Member Vanderbilt; the Technical Advisory Group made up of City staff from various
Departments, and a Steering Committee made up of various community groups and
organizations. Staff also met with key stakeholders and the community at large. The input
provided from all of these groups was vital to ensure a broad perspective of views from the
community. Major points and revelations came to light in the survey and with the research, also
in some cases the data validated the direction the Department has been embarking on with
respect to new parks and amenities. The direction staff has pursued for additional park space is
very consistent with the community, swimming pools were highly rated, Family Recreation
Centers such as Community of Family Resource Centers are very important, and of course,
picnic and passive areas where users can recreate where no formal programming exists such as
turf areas under trees. Based on the survey and research, it is important that the City continue to
reinvest in park restrooms to ensure they are well maintained and have newer amenities, in
playgrounds to make sure they are safe, challenging, and exciting for kids of all ages, and in
general research provided the validation that our parks must be safe and well maintained. Park
restrooms were rated highest in importance. There are 59 restrooms and the national average for
a city of our size would be 89. Trees and landscaping were rated high by our users and it is
apparent that well landscaped, interesting parks with diverse features are very noticed by park
users. Children's play areas were also rated as very important. In the City's park system, there
are 51 play areas and the national averages indicate that there is a need for as many as 23 play
lots per 100,000 people, so that would equate to the need for 26 more in our city. Picnic areas
and facilities are always in demand and users placed them high in their ranking of importance. In
Anaheim, there are a total of 11 existing community buildings. National statistical averages
indicate we should have about 13.4 community centers in Anaheim. Over the last few decades
splash pads have grown in popularity. In Anaheim, there is one at Miraloma Park and the new
one at Ponderosa set to open next month, will be the second. Based on national statistics,
Anaheim should have eight splash pads, so this is an area to focus on.
Mr. Pasco reported public art was an item that had support and interest from the public. City
leaders are having a larger discussion on how the City will emphasis public art, but with respect
to parks, the City has made great strides in incorporating art in many recent projects, such as
Anaheim Coves, Brookhurst, and Ponderosa Park. In the Parks Plan, swimming facilities were
also identified as being important both by users as well as what the research told us. In Anaheim,
there is one pool that the City owns and controls at Pearson Park. National standards state that a
city the size of Anaheim could have as many as eight pools, so this is another area where further
discussion is warranted. The high use of athletic sports fields and the waiting list of sports groups
City Council Minutes of May 15, 2018
Page 22 of 35
who wish to reserve fields, told staff that the city simply needs more fields, primarily for soccer
use, which has exploded over the past few decades. There are separate national averages for
both baseball/softball fields as well as fields dedicated to soccer. Anaheim currently has 48
baseball/softball fields and national standards indicate the city should have 59. With respect to
dedicated soccer fields, Anaheim has 40 fields and the standards indicate 59.
Mr. Pasco summarized the major recommendations contained within the document, highlighting
the importance of joint use agreements, pursuing sport complexes, utilizing land from other
agencies, increasing Park Development Fees, acquiring and developing private land, continuing
to redevelop existing facilities, increased maintenance and safety capabilities, increased public
swimming opportunities/aquatic center, updating the General Plan, and completing a
comprehensive strategic plan. He added the goal is to use the plan as a guide in the development
of future budgetary requests to maintain, revitalize, and add to the City's park system and deliver
those resources to the public.
DISCUSSION: Council Member Murray reported bringing the item forward to let the public know
what the City was doing in terms of parks and recreational facilities. She referenced the fee
adjustment mentioned in the recommendations and asked if it can be part of the budget process.
Mr. Pasco reported as far as the recommendations in the Parks Plan, he was aware there was a
separate initiative Council considered as part of the budget process. The recommendations in
the Parks Plan are things identified to increase revenue and it will be up to Council, at a future
meeting, to decide if and when specific recommendations would move forward.
Council Member Faessel agreed with Mr. Pasco regarding park development fees and sees it as
the same issue. He stated the Parks Plan is one of the first requests he made after being elected
and the condition of City parks is very important to him. He looked forward to working with
colleagues and staff to find additional income streams to continue park maintenance. The
condition of existing parks is more important to him than additional parks and he would like to see
an enhancement of City parks. He thanked Mr. Pasco and his team for the excellent work.
Council Member Kring referenced a letter and comments by a representative of the building
industry and reported there are so many fees, many Council Members are concerned about fees
and added costs on a house. She stated she would like to see more cooperation among different
entities and will not support additional fees on the building industry, especially during the current
housing crisis.
Council Member Vanderbilt referenced the survey results and noted the plan includes things that
have already taken place, such as added safety measures. He asked for staffs opinion regarding
the current safety of City parks. Mr. Pasco reported parks are safer, especially with the various
improvements completed to ensure it and staff will continue to promote safety in any way it can.
Mr. Pasco added that clean and well-maintained parks make people feel safer.
Council Member Barnes thanked City staff for the plan and noted people had a perception they
were being left behind because of the condition of parks. She urged the City to stick with the plan
and not deviate. She hoped that the City can have a budget that reflects the needs in the plan
and noted the need to improve parks and have safe, clean, and well-maintained parks. She
commended staff for the plan, addressed actions taken to increase safety, and noted the
importance of improving park staffing, both part-time and full-time. She commended staff for
looking at other agencies for options for recreational facilities and stated continued maintenance
should be a focus.
City Council Minutes of May 15, 2018
Page 23 of 35
Mayor Pro Tem Moreno agreed with Council Member Barnes in terms of addressing staffing
levels, expressed his appreciation to staff for the plan, and asked about funding opportunities and
the 48 acres of undeveloped open space in the City for future development of public recreational
use. He asked whether there is a map illustrating the location of the area. Mr. Pasco reported
was is no map and that the land was owned by the Community Services Department. The
majority of the land is in the east end of town and he stated the City's intention to develop once
funding is available. Mayor Pro Tem Moreno referenced the Neighborhood Enhancement Fund
and asked how much is in the fund and whether Council should consider increasing it. Mr. Pasco
stated the fund has $250,000 and staff uses it, routinely, for park improvements but could always
use more. Mayor Pro Tem Moreno requested highlighting additional budget requests that are
reflected in the plan during the budget process.
Council Member Faessel referenced comments by Council Member Kring in terms of adding
development costs to the development community and a recent Council workshop on
development fees and asked about their current range. Mr. Pasco reported they range from
$4,000 to $8,000, depending on the area. Council may be considering a 15% increase, which
would still put Anaheim in the lower third, when compared to other cities in the county. Raising
fees is not unreasonable and Council Member Faessel felt it will not put an undue strain on the
development community, but the City needs to develop a more robust funding stream. He added
he would not like to be held captive by expanding the park system only through the use of joint
use agreements.
Council Member Barnes referenced the Southern California Edison (SCE) lease agreement and
asked for a status update. Mr. Pasco reported staff has communicated with SCE and has
identified pieces of land the City would like to obtain. They have committed to giving the City
those lands and it is a matter of executing the agreements. Council Member Barnes noted the
importance of moving the plan forward.
Council Member Kring stated there is no such thing as a "developer fee" as developers pass the
costs to the ultimate users. She believed the recommendations presented are a "wish list" and
there was no way the City can put the plan into effect immediately. She suggested going after
grant money or partnering with the business community for sponsorships. She stated the City
was desperate for housing and increasing developer fees was not the way to obtain more
housing. If Council considers increasing developer fees, it should have a strong conversation
with representatives of the Building Industry.
MOTION: Council Member Faessel moved to approve the Anaheim Parks Plan, seconded by
Council Member Barnes. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members
Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried.
15. Approve a Memorandum of Understanding (MOU) with Los Angeles SMSA Limited
Partnership, d.b.a. Verizon Wireless (Verizon) for the purpose of continuing Verizon's use
AGR- of their existing telecommunication tower at Lincoln Park until May 31, 2019 and allow the
1709.1 Director of Community Services to extend the terms of the MOU, on a month- to -month
basis, should conditions develop requiring an additional extension to the MOU.
Mayor Tait declared a potential conflict and left the dais at 9:26 P.M.
DISCUSSION: Council Member Faessel noted there was a fee associated with the item, which is
not allocated to Community Services, and asked if it was allocated to Community Services,
suggested the fee should go towards maintaining parks. He asked whether it was earmarked and
City Council Minutes of May 15, 2018
Page 24 of 35
Community Services Director Larry Pasco reported it goes into the parks account as revenue in
the Community Services Department Budget.
MOTION: Council Member Faessel moved to approve a Memorandum of Understanding (MOU)
with Los Angeles SMSA Limited Partnership, d.b.a. Verizon Wireless (Verizon) for the purpose of
continuing Verizon's use of their existing telecommunication tower at Lincoln Park until May 31,
2019 and allow the Director of Community Services to extend the terms of the MOU, on a month-
to-month basis, should conditions develop requiring an additional extension to the MOU,
seconded by Council Member Kring. ROLL CALL VOTE: AYES — 6: (Mayor Pro Tem Moreno
and Council Members Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0.
ABSTENTION — 1: (Mayor Tait). Motion carried.
Mayor Tait returned to the dais at 9:28 P.M.
20. RESOLUTION NO. 2018-051 A RESOLUTION OF THE CITY COUNCIL OF THE
T106 CITY OF ANAHEIM initiating proceedings for the annual levy of assessments in, and
accepting an Assessment Engineer's Report for, the Anaheim Resort Maintenance
District.
RESOLUTION NO. 2018-052 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM declaring its intention to provide for an annual levy and collection of
assessments in the Anaheim Resort Maintenance District and setting a time and place for
Public Hearing thereon.
DISCUSSION: Council Member Faessel referenced the Engineering Report noting there was a
$200,000 transfer from the General Fund and asked why and whether the City still needed that
transfer. Public Works Director Rudy Emami reported in 1999, there was an amount of $193,000
the City spent on maintaining the area of the Resort District, and the resort assessment pays for
that enhanced maintenance above and beyond a based need. In 2001, it was rounded up to
$200,000 and has been constant since. Council Member Faessel suspected that amount will
increase gradually. Mr. Emami stated it will be raised by the allowable CPI rate. In reply to the
question as to whether the City still needed that money, Mr. Emami reported affirmatively
because even though the assessment has been increasing, actual costs have been assessed
beyond the CPI rates. There are additional investments needed to upgrade those areas and
those tasks have begun.
MOTION: Council Member Faessel moved to approve RESOLUTION NO. 2018-051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM initiating proceedings for
the annual levy of assessments in, and accepting an Assessment Engineer's Report for, the
Anaheim Resort Maintenance District, and RESOLUTION NO. 2018-052 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM declaring its intention to
provide for an annual levy and collection of assessments in the Anaheim Resort Maintenance
District and setting a time and place for Public Hearing thereon, seconded by Council Member
Kring. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray,
Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried.
City Council Minutes of May 15, 2018
Page 25 of 35
23. Receive presentations regarding the economic impacts of minimum wage policies on local
jurisdictions and discuss the initiative measure to increase the minimum wage payable by
E127 hospitality industry employers located in the Anaheim Resort or Disneyland Resort that
have tax rebate agreements with the City, submitted on May 1, 2018 and accepted for
filing by the City Clerk on May 3, 2018 (the "minimum wage initiative").
DISCUSSION: Council Member Murray reported asking two speakers to attend tonight's meeting
to advise residents of the impacts of these types of policies in other communities as well as what
the potential impacts would be in Anaheim. She introduced Ruben Gonzalez, Senior Advisor of
Strategic Affairs for the Los Angeles Chamber of Commerce, and Bradley Hertz, Sutton Law
Firm, an elections law expert.
Ruben Gonzalez thanked Council for the opportunity to weigh in on this issue, noting he was not
here representing the Chamber of Commerce, but rather because he has been working on this
issue for about fifteen years. He urged Council to learn from the mistakes of Los Angeles, noting
they have made it more expensive to service the hospitality industry and have made it harder to
find employment because of wage and labor regulations that have been put in place.
In response to Mayor Tait's question, Mr. Gonzalez stated his position does not necessarily
represent the position of the Los Angeles Chamber of Commerce.
Council Member Murray asked whether the Los Angeles Chamber has supported the living -wage
measures in Los Angeles County and Mr. Gonzalez stated it has not; they oppose them.
Mr. Gonzalez reported on his journey on wage issues and addressing the economic impacts of
minimum wage policies in Los Angeles, discussed a study by Chris Thornburg and Beacon
Economics, a globally renowned economist, and was paid for by the City of Los Angeles. He
claimed jobs grew in all areas of Los Angeles, except the specific district covered in the initiative.
He added you cannot look to increase labor costs significantly in the hospitality industry, and not
expect the need to cut hours, cut positions, or automate. He alleged there will be an increased
loss of human capital, a lack of jobs, and the increased use of kiosks. He stated for every dollar
of wage increase, labor costs increase by $4.00. He offered to respond to questions and noted
the need to raise the quality of life for service industry workers and to build affordable housing,
but, he opined this initiative was not the solution.
Bradley Hertz, The Sutton Law Firm, commented on his experience practicing election law and
believed the way the measure was drafted creates more problems than it solves. He displayed a
PowerPoint presentation addressing legal consequences of the Anaheim Resort Living Wage
Initiative (ARLWI), problematic sections of the AWLI, and likely/possible unconstitutional
provisions. His position was not favorable from a Constitutional law perspective.
Council Member Murray directed questions to Mr. Gonzalez, noting he mentioned the initiative
was broader than it originally was and asked him to explain.
Mr. Gonzalez reported the movement in the LAX corridor was a "foot in the door", and later, Unite
Here Local 11 decided to extend it citywide. He reported that during that time, poverty rates have
not decreased and stated raising the quality of life for those living in poverty and the working poor
is a challenge that needs a comprehensive approach. He reported none of the claimed benefits
of the initiative have been realized and there were confirmed reports that hours were cut. He
added the data shows these measures do not meet the promised goals and damage employment
opportunities and the local economy.
City Council Minutes of May 15, 2018
Page 26 of 35
Council Member Murray asked Mr. Hertz, based on his legal understanding, whether the initiative
only applies to Disneyland. Mr. Hertz felt the name of the measure was a misnomer in terms of
"beneficiaries of City subsidies," noting when considering definitions, the measure is much
broader and has a ripple effect to those affiliated with those directly receiving subsidies and those
adjacent to businesses in the Resort District. He added it could eventually impact non -profits.
Mr. Hertz opined the initiative was far too broad and there was an objective way to determine who
received direct subsidies or if there is a deal in place for them to receive direct subsidies, in the
future.
Council Member Murray thanked the speakers and noted concerns regarding the scope of the
initiative.
In response to Mayor Tait's question, Mr. Hertz reported his client, in this matter, is the Anaheim
Chamber of Commerce. Mr. Gonzalez reported he has no clients in relation to this matter, was
here on his own time, and was not being paid to present.
In response to Council Member Vanderbilt's inquiry, City Attorney Robert Fabela reported he has
preliminary thoughts on the interpretation of the initiative, however, an impartial analysis would
done by a vote of Council authorizing him to do so. He stated it would not be proper for him to
preliminarily give his thoughts. He stated he feels comfortable in independently doing an
impartial analysis and he could seek a reality check from experts in the field.
In response to Council Member Vanderbilt's question regarding adjacent businesses, Mr. Hertz
felt that a business across the street or on another corner could be interpreted to be adjacent.
There would have to be an analysis in terms of what the courts and legislature say with regard to
the term "adjacent", the express wording of the measure, and the intent of the measure. He
added that based on his experience, when there are interested parties on either side, there was
often litigation. The Elections Code and the Constitution give opportunities for litigation; it is not
uncommon to have imperfect drafting of ballot measures that lead to litigation.
Council Member Kring stated she was not bothered by the information that Mr. Hertz's client is
the Chamber of Commerce. She directed herself to Mr. Gonzalez, noting his comments were
very telling and reported on various public speakers who have listed similar concerns regarding
the initiative. In reply to her question as to whether both the original measure and the subsequent
measure in Los Angeles were voted on, Mr. Gonzalez reported both measures were passed by
the City Council. She asked why the citywide measure was considered if the original measure
had negative consequences, and Mr. Gonzalez stated it was a political decision. Council
Member Kring expressed concerns with possible automation of services and the loss of
employment. She asked if the presentations could be placed on the City's website and City
Attorney Fabela responded they may not as it might be considered advocacy.
Council Member Faessel reported there are other cities that have enacted living wage initiatives
and asked about other studies specific to LAX, Los Angeles County, and other cities that may
lead to other conclusions. Mr. Gonzalez reported there are other studies and he would be happy
to share them with staff to share with Council. Council Member Faessel asked for his opinion
regarding other regions that have brought about similar regulations. Mr. Gonzalez stated he does
not have the data available and would not feel comfortable responding at this time.
Council Member Faessel shared his experience in business and reported San Diego
implemented a minimum wage initiative. He listed some of the consequences and noted they
found that the percentage of labor -to -sales remained the same.
City Council Minutes of May 15, 2018
Page 27 of 35
Mr. Gonzalez reported the increase in wage laws in San Diego and Sacramento was much less
than has been prescribed in Anaheim's ballot measure. He added part of the reason was that
business and industry were engaged in the conversation. He opined it was "apples and oranges"
to compare wages across a community, as opposed to industry -specific wages and
industry/geographic-specific wages.
Mayor Pro Tem Moreno asked whether there are benefits of such ordinances and Mr. Gonzalez
stated there are specific micro benefits to the employees who receive higher wages, but often
times, the increases in wages bump them to a higher income level and hinders their ability to get
subsidies. In response to Mayor Pro Tem Moreno's question, Mr. Gonzalez reported that
personally, he opposes the initiative. Mr. Hertz added he has not formed a legal opinion on the
initiative other than it is legally flawed. Mr. Gonzalez added that his opinion is based on the facts
presented. He reported that unemployment in Los Angeles has gone down, but it is across all
industries.
Mayor Pro Tem Moreno asked if the hotels in LAX received subsidies and Mr. Gonzalez reported
they received public benefit. He did not know if those hotels specifically received City subsidies
when they were built. Mayor Pro Tem Moreno indicated proponents of the initiative have been
very clear that the goal is to require the hotels that receive public taxpayer dollars to be built, to
pay a minimum wage of $15. The intent specifically speaks to subsidized entities which seems
different than the LAX case study. He added that other hotels, around those affected by the
measure, are paying higher wages already.
Mr. Gonzalez reported the same proponents of the LAX initiative support the Anaheim initiative.
Mayor Pro Tem Moreno noted Unite Here, Local 11, is one group but there is a coalition of 12
unions supporting the initiative in Anaheim. Mr. Gonzalez felt the effort is a conclusion in search
of a rationale and stated there are no extra margins because of the subsidies but is simply the
reason used by proponents to push this regulation forward. Mayor Pro Tem Moreno noted Mr.
Gonzalez was now venturing into opinions without seeing the agreements made with the
subsidized hotels. To the extent the businesses make their own decisions, sometimes fits within
a framework and sometimes it does not. Mayor Pro Tem Moreno noted the importance of
distinguishing between opinions and facts.
Mayor Pro Tem Moreno referenced the LAX study and asked about the effects on occupancy.
Mr. Gonzalez understood rates stayed the same. Mayor Pro Tem Moreno asked if the hotels cut
jobs when rates and occupancy stayed the same and Mr. Gonzalez thought that was correct but
stated he does not have the data in front of him. Mayor Pro Tem Moreno stated hotels would not
want to cut back too much on their employees as their first job is to provide high-quality customer
service. He speculated that hotels cut jobs due to decreased occupancy rates. Mr. Gonzalez
stated he does not have enough data to answer that question. Mayor Pro Tem Moreno asked if
the Thornburg study has data that addresses the economic impacts of wages being higher and
Mr. Gonzalez stated the study did not go down to that level. Mayor Pro Tem Moreno reported in
Long Beach, the Small Business Association supported the wage increases and felt the local
economic impacts would benefit them. One of the perspectives on the pro side of the initiative is
that if wages had kept up with the CPI, over the last eighteen years, out of just Disneyland, would
have been a $1.2 billion infusion into the local economy through wages. He added there seems
to be no benefit at the macro level and asked if there is data in the LAX region where there is a
macro -level benefit around the local impact of people making more money. Mr. Gonzalez stated
it is hard to track because many employees do not live in the same area.
Mayor Pro Tem Moreno reported when he agendized the study by two professors regarding
wages at Disneyland, the public had the opportunity to fully read the report and formulate their
own decisions based on the data, as produced by the authors. Regarding this matter, Council
City Council Minutes of May 15, 2018
Page 28 of 35
had no idea what would be presented as the data was not provided ahead of time. He wondered
if Council was going into a difficult legal space as a Council because Council Members are not
supposed to take positions on referendums; especially as petitions are being counted and the
process is active.
Mr. Fabela reported his memo to Council stated as long as it was a publicly noticed meeting,
courts have allowed Councils to take positions on referendums, as long as it is in the course of a
publicly noticed meeting. What is prohibited is using public resources for campaigning, one way
or the other.
Mayor Pro Tem Moreno stated he felt very uncomfortable that what was heard this evening was a
position from one person who opposes the initiative outright, and another who is hired by the
opponents as an attorney. He wondered if the City can invite the attorney who wrote the petition
to share their intent, and invite people who may have a more -balanced perspective of different
studies and benefits. He worried the City Attorney is supposed to be impartial and has publicly
received one view of the opposition. That would seem the opposition had his ear publicly and the
others may not get the chance to air their perspective.
Mr. Fabela stated that would be at Council's discretion and confirmed he will do his analysis
independently and will not be influenced by arguments on one side or the other.
Mr. Hertz stated, with regards to intent, there are no whereas clauses or findings and
declarations.
Council Member Kring commented on people losing their jobs and work hours relative to the Los
Angeles case and asked if Unite Here and the Los Angeles City Council realize what had
happened and debate whether to do something to rectify the situation. Mr. Gonzalez stated they
did not. He added the Los Angeles measures included an exemption for collective bargaining.
She reported one hotel currently being built is receiving $158 million and stated if the measure
passed, three developers have claimed they will not develop the next project. She opined people
who visit four -diamond hotels tip better and expressed concerns regarding the loss of hotels and
related jobs.
Council Member Vanderbilt expressed concern regarding Council Members bringing in more and
more speakers on this subject. If the petition signatures are validated and the item is placed on
the ballot, then Council has served its purpose. He wondered about how many more study
sessions will be needed and when there will be an end to this matter. He added Council has
many more issues to address and questioned whether another discussion on this item was
necessary.
Mayor Pro Tem Moreno clarified there has been one discussion and presentation on a study
done on wages, where he insisted on not having a discussion regarding the petition that evening.
He stated there has only been one discussion about the petition, which was in opposition to the
initiative and felt that was unfair to voters.
Council Member Vanderbilt hoped Council will reach a point where everyone has stated their
position and move on to the November election.
Council Member Murray commented on the initial study being presented by paid proponents of
the initiative and did not feel it was independent or objective. She claimed millions of dollars were
spent getting 21,000 signatures and felt Council has an obligation to present the breadth and
scope of what is being proposed. She acknowledged and thanked Mr. Gonzalez and Mr. Hertz,
and stated her intent was for residents to have balanced information about the subject.
City Council Minutes of May 15, 2018
Page 29 of 35
In response to Mayor Tait's question, Mr. Hertz confirmed he is an attorney representing the
Chamber of Commerce and reported he was asked to look at the measure and, as an election
attorney, give his opinion. Mr. Gonzalez stated he is a political consultant.
Mayor Tait noted the initiative targets three developers who received massive subsidies from the
City of close to $700 million over twenty years. Mr. Gonzalez explained the LAX case was a
wage requirement for hotels in the district, which then expanded citywide. He added Anaheim
saw a benefit in the hotels being built and, to entice them to set up shop in Anaheim, the City
negotiated and came to an agreement to provide a rebate; the original deal did not include
requirements for a living wage.
Mayor Tait called for a recess at 11:13 P.M. The meeting was reconvened at 11:15 P.M. with all
members present.
Mayor Tait thanked the speakers for their presentation and noted the importance of knowing
whether this was an independent analysis or a source for advocacy or opposition. He noted Mr.
Hertz is an attorney for the Chamber of Commerce and Mr. Gonzalez is a policy analyst and a
registered lobbyist in the City of Los Angeles. Mayor Tait stressed the importance of the public
hearing both sides of the argument to make a balanced and informed decision and agreed with
Mayor Pro Tem Moreno in terms of placing a presentation by proponents of the measure on a
future Council agenda.
No action was taken on this item
PUBLIC HEARINGS: 11:17 P.M.
24. This is a public hearing to consider a resolution pertaining to the approval of a Disposition
and Development Agreement, in substantial form, with Greenlaw Anaheim Hotel, LLC
AGR -10357.1 (Developer), regarding certain real property generally located at Anaheim Blvd. and the
Interstate 5 Freeway in the City of Anaheim in which the City will convey the property at
the appraised fair market value of $3,650,000 and the Developer will construct a 12 -story,
326 -room Radisson BLU hotel with ground floor and rooftop restaurants and pool
amenities (APN 082-220-09 and adjacent remnant property) (continued from Council
meeting of May 8, 2018, Item No. 21).
RESOLUTION NO. 2018-054 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM approving a Disposition and Development Agreement with Greenlaw
Anaheim Hotel, LLC, authorizing the Director of Community and Economic Development
to finalize such Disposition and Development Agreement; authorizing the Director of
Community and Economic Development to implement such Disposition and Development
Agreement; determining that no further environmental review is required; and making
certain other findings in connection therewith.
Community & Economic Development Director John Woodhead presented the report and stated
the City owns approximately 3.3 acres of real property at the northwest corner of Anaheim
Boulevard and Interstate 5, comprised of two irregularly shaped vacant parcels. One parcel is a
remnant from the widening of Interstate 5, acquired by the former Redevelopment Agency. The
other parcel is an adjacent City -owned remnant parcel from the widening of Anaheim Boulevard.
The combined parcels create the development site. The approved Long Range Property
Management Plan (LRPMP) for the former Redevelopment Agency identified the Successor
Agency's Parcel for private redevelopment purposes in accordance with the Anaheim
City Council Minutes of May 15, 2018
Page 30 of 35
Redevelopment Plan for the Anaheim Merged Redevelopment Project. Greenlaw Partners
entered into an agreement to acquire an approximately 10.25 acre site, immediately north of the
Development site. Accordingly, the City entered into an Exclusive Negotiation Agreement in 2016
with Greenlaw Acquisitions, LLC for the integrated development of the Development Site and the
Anaheim Business Campus. Staff and the Developer have been negotiating the terms of a DDA,
while the project plans have been finalized. The terms of the DDA with Greenlaw Anaheim Hotel,
LLC provide that the City will convey the Development Site at appraised fair market value, and
the Developer will construct and operate a new 12 -story, 326 -room Radisson BLU hotel with
ground floor and rooftop restaurants and pool amenities. The project will also include an
integrated 348 -space parking structure, hotel gym, ancillary retail, and hotel back -of -house areas.
Mr. Woodhead stated Radisson BLU is a popular international hotel brand. The proposed hotel
would be the fourth in the United States and the first on the West Coast. The project will feature a
contemporary design with a high level of architectural quality, landscaping, and hardscape
improvements. The Planning Commission reviewed and approved the land -use application and
design at its April 30, 2018 meeting. The former Redevelopment Agency acquired the parcel
from OCTA for $1.4 million, with no additional expenditures incurred by the City to prepare the
Development Site for development. Caltrans relinquished the frontage parcel at no expense to
the City. Under the DDA, the City is conveying the Development Site to the Developer for
$3,650,000, which is fair market value. The City will receive the transient occupancy tax
generated by the Project, estimated to be approximately $3,063,000 in the third year of operation.
In addition, the City will receive its share of property tax revenues and sales tax revenues
generated by the Project, estimated to be approximately $189,000 and $65,000, respectively, in
the third year of operation. The total development cost to construct the Project is approximately
$168 million, and the project will create roughly 300 high skilled construction jobs and 140 on-
going full time equivalent jobs to operate the hotel. It is anticipated that the Developer will
commence construction in October 2018 and begin hotel operations in January 2021.
Mayor Tait opened the public hearing.
William Fitzgerald, Home Owners Maintaining our Environment, questioned the price for which
Council will sell the land, commented on Council's earlier discussions, and referenced previous
Council consideration of seven acres for a park adjacent to the freeway that was sold for
approximately $1 million/acre at a time when property around the Resort District was going for $3
million/acre. He referenced City property on Beach Boulevard and Lincoln Avenue where the City
paid over $2 million/acre and now the City has prime land, next to the Resort District, being sold
for $1 million/acre. He felt that once purchased, the property will be resold and flipped, and
alleged it is a giveaway to the Disney Corporation.
Don Lamb, representing Greenlaw Partners and Greenlaw Anaheim Hotel, thanked Council for its
consideration and reported the property is not in the Resort District, the plan has had several
revisions, the project has been designed and redesigned, and finally, they have a plan that will
work on the property and sought direction from Council. He added they are not seeking subsidies
from the City and noted receiving excellent customer service from City staff.
Bryan Kaye reported the City and Greenlaw have a long-term plan towards which they are heavily
invested. He commented on lessons he learned from his mother and urged Council to realize
there are many families, lives, and futures at stake. He noted the importance of Council following
rules and urged Council not to overextend into something that will not work. Mr. Kaye added that
people attend Council meetings and provide comments because they care and hoped Council will
make good decisions.
Mayor Tait closed the public hearing.
City Council Minutes of May 15, 2018
Page 31 of 35
DISCUSSION: In response to Council Member Vanderbilt's question, Mr. Woodhead expressed
excitement at the project moving forward, noting the City was able to obtain Fair Market Value
(FMV) for its land and the deal was good for the City.
Council Member Murray asked if an appraisal was conducted and Mr. Woodhead responded
affirmatively, adding that it was within the range of FMV. The purchase price in the agreement
was $3.5 million and Mr. Woodhead reported this has been structured just like a redevelopment
deal and the property is being sold only for a specific development and addressed conditions that
must be satisfied.
Mayor Pro Tem Moreno asked about an environmental impact analysis and Mr. Woodhead
reported a CEQA analysis was conducted in the entitlement process, the Planning Commission
adopted the Mitigated Negative Declaration, and noted the action required by Council.
Additionally, Mr. Woodhead addressed public noticing of the item, noting it complies with all of the
Sunshine Ordinance requirements. He reported a number of the Radisson Hotels in Europe are
four -diamond hotels and stated the subject hotel will be a four-star hotel; the star system is
broader than the diamond system.
In response to Mayor Pro Tem Moreno's question, Mr. Lamb reported they will try to achieve a
four -diamond status. He reported a public labor agreement on the construction site has never
been discussed and reported their minimum wage rate is $14.00/hour. They are having
discussions with Unite Here, Local 11. At this point, there is no interest in a labor agreement on
construction and he addressed local hiring.
In response to Council Member Murray's inquiry, Mr. Lamb reported Greenlaw is a local -based
developer and interested in economic development. He added Radisson Blue is committed
pending approval of the Disposition and Development Agreement and addressed the design and
construction schedule. Council Member Murray asked whether the developer has knowledge of
the upcoming livable -wage initiative and Mr. Lamb reported it does not seem to be a significant
issue for this project.
Council Member Murray asked whether there has been a CEQA challenge and Mr. Woodhead
reported there has been an appeal of the Planning Commission's decision, including the CEQA
analysis; the item will be considered by Council at its second meeting in June. He added Unite
Here filed the challenge.
MOTION: Mayor Tait moved to approve RESOLUTION NO. 2018-054 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Disposition
and Development Agreement with Greenlaw Anaheim Hotel, LLC, authorizing the Director of
Community and Economic Development to finalize such Disposition and Development
Agreement; authorizing the Director of Community and Economic Development to implement
such Disposition and Development Agreement; determining that no further environmental review
is required; and making certain other findings in connection therewith, seconded by Council
Member Kring. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno,
Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried.
AGR -6594.1
City Council Minutes of May 15, 2018
Page 32 of 35
25.
DEVELOPMENT AGREEMENT NO. 2005-00008G
(DEV2013-00034A)
LOCATION: 1404 East Katella Avenue
OWNER/APPLICANT: PT Metro, LLC, 95 Enterprise, Suite 200, Aliso Viejo, CA 92656
REQUEST: To amend the Development Agreement between the City of Anaheim and PT
Metro, LLC for the A -Town Metro Project to add a term extension milestone at the seven
and one-half year mark.
Environmental Determination: The City Council will consider whether the Addendum
No. 4 to the Platinum Triangle Expansion Project Subsequent Environmental Impact
Report No. 339 for the Revised Platinum Triangle Expansion Project, along with Mitigation
Monitoring Plan No. 321, together with other previously approved environmental
documentation, serves as the appropriate environmental documentation.
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved, recommended City Council Approval of Development Agreement No. 2005-
00008G (PC2018-022) Vote: 5-1 (Chairperson Dalati and Commissioners Armstrong,
Gillespie, Keys and Lieberman voted yes. Commissioner White voted no. Commissioner
Carbajal was absent.) Motion Carried. (Planning Commission meeting of April 16, 2018)
ORDINANCE NO. 6437 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM approving Amendment No. 1 to Amended and Restated Development
Agreement No. 2005-00008 by and between the City of Anaheim and PT Metro, LLC and
making certain findings related thereto; and authorizing the Mayor to execute and the City
Clerk to attest said agreement for and on behalf of the City.
Approve the Amendment No. 1 Acquisition and Funding Agreement (Acquisition
Agreement) by and among the City of Anaheim Community Facilities District No. 08-1, the
City, and PT Metro, LLC; and authorize the Director of Public Works to approve request(s)
for payment in accordance with provisions of the Acquisition Agreement and Exhibit B and
take the necessary actions to administer and implement the Acquisition Agreement.
Mayor Tait declared a potential conflict and left the dais at 11: 56 P.M.
Council Member Faessel reported meeting with the property advocate, Donna Mathieson.
Council Member Kring reported she had a conversation with the property advocate, Donna
Mathieson.
Planning & Building Director David Belmer presented the item and reported this was a request to
amend the A -Town Development Agreement and the Acquisition and Funding Agreement relative
to the milestone requirements for development. The A -Town development is generally located
between Katella Avenue, State College Boulevard, and Gene Autry Way. The approved A -Town
project is a mixed-use development of up to 1,746 residential units and 50,000 square feet of
commercial uses, two public parks, and a network of local streets. The first phase of construction
is underway and includes 400 apartments. The Development Agreement includes performance
milestones that allow for extensions of the term of the Development Agreement, based on the
delivery of various project improvements, residential units, and commercial ground floor space.
These milestones and term extensions provide for the development of the A -Town Project over a
20 -year period. The Applicant is requesting to amend the Development Agreement to modify the
performance milestones in Exhibit "G" relative to the timing and completion of residential units
within the first 5 -year term. The request would modify the milestones required by the 5 -year
City Council Minutes of May 15, 2018
Page 33 of 35
anniversary date and create a new 7.5 -year anniversary date. The original 20 -year development
period would not change. The proposed amendment would reduce this amount from 550 to 400
completed units and require a Final Site Plan application for 150 additional residential units. As
part of its approval of the A -Town Project, the City required the Applicant to build public
improvements in certain streets and dedicate street right-of-way along Katella Avenue, State
College Boulevard, and Gene Autry Way. The amendment of the agreement updates the name
of the property owner to PT Metro, LLC, clarifies the timing of payments, and revises agreement
exhibits. In terms of the Acquisition and Funding Agreement, potentially $1.6 million dollars in
reimbursement for right-of-way dedications could be due to the property owner from the
Community Facilities District (CFD) as certain conditions of the agreement are met. The
proposed amendment to the Acquisition and Funding Agreement would allow the City to
reimburse the developer for the value of the dedicated right-of-way for Katella Avenue, State
College Blvd., and Gene Autry Way incrementally, coinciding with the issuance of building
permits for development areas.
Mr. Belmer reported the Planning Commission considered this request at its meeting on April 16,
2018 and recommended City Council approval of the requested amendment to the Development
Agreement. Since the Acquisition and Funding Agreement is not under the purview of the
Commission, it did not provide a recommendation of the requested amendments to that
agreement. Staff believes the proposed amendments to both agreements will continue to provide
surety for the developer based on their current construction schedule and include benefits to the
City, including financial flexibility for the Platinum Triangle CFD and associated reimbursement
schedule for payment of right-of-way dedications for the A -Town Project.
DISCUSSION: Council Member Vanderbilt asked about impact fees and Mr. Belmer reported
they will be deferred. Mr. Belmer added the City is interested in diversifying the housing
opportunities provided and this project will address that.
In response to Mayor Pro Tem Moreno, Mr. Belmer reported the fees would be deferred for 2'/2
years. The project includes a park and the developer will get a credit against their park fees and
the City is getting the benefit of public amenities in the first five-year window. He added none of
the units are affordable housing units. Potentially, the City could make a request in terms of
making some of the units affordable; it would be a negotiated item, at Council's discretion. In
conversations with the developer, they noted this project did not commence as an affordable
housing project or with an affordable housing component required. At this point, it is not
something they are interested in doing. Additionally, Mr. Belmer reviewed actions required by
Council.
Mayor Pro Tem Moreno opened the public hearing.
Donna Mathieson, representing Lennar, asked Council to support approval of the two agreements
and thanked City staff for their help. She offered to answer questions from Council.
Mayor Pro Tem Moreno asked if there was interest in developing some of the units as affordable
housing and Ms. Mathieson stated, at this time, they do not contemplate doing so. She stated
there may be an interest in buyers' incentives but was unsure and stated she cannot make that
representation tonight.
William Fitzgerald, Home Owners Maintaining our Environment, expressed concerns regarding
parking, commented on the City losing money, and alleged Council lies, cheats, and steals from
the people of Anaheim. He addressed various considerations of the project and felt Council gives
away anything developers want.
City Council Minutes of May 15, 2018
Page 34 of 35
Bryan Kaye stressed the importance of open communication and transparency and alleged
Council makes promises and does not follow through. He opined this project will fail unless the
City thoroughly investigates it, vets it, and makes sure it will work.
Mayor Pro Tem Moreno closed the public hearing.
MOTION: Council Member Kring moved to introduce ORDINANCE NO. 6437 (INTRODUCTION)
AN ORDINANCE OF THE CITY OF ANAHEIM approving Amendment No. 1 to Amended and
Restated Development Agreement No. 2005-00008 by and between the City of Anaheim and PT
Metro, LLC and making certain findings related thereto; and authorizing the Mayor to execute and
the City Clerk to attest said agreement for and on behalf of the City, and approve the Amendment
No. 1 Acquisition and Funding Agreement (Acquisition Agreement) by and among the City of
Anaheim Community Facilities District No. 08-1, the City, and PT Metro, LLC; and authorize the
Director of Public Works to approve request(s) for payment in accordance with provisions of the
Acquisition Agreement and Exhibit B and take the necessary actions to administer and implement
the Acquisition Agreement, seconded by Council Member Murray. ROLL CALL VOTE: AYES —
6: (Mayor Pro Tem Moreno and Council Members Murray, Vanderbilt, Barnes, Kring, and
Faessel) NOES — 0. ABSTENTION —1: (Mayor Tait). Motion Carried. Ordinance introduced.
Mayor Tait returned to the dais at 12:21 A.M. on May 16, 2018.
REPORT ON CLOSED SESSION ACTIONS:
City Attorney Robert Fabela reported the following regarding Closed Session: Item No. 1 —
Council unanimously approved the filing of a claim with the State Commission of Unfunded
Mandates to recover costs incurred by the City in complying with new State regulations pertaining
trash and pollution; Item No. 2 - involved a tort claim for personal injuries sustained in a trip and
fall accident and Council unanimously approved an agreement tolling the statute of limitations for
filing civil litigation among other things; Item No. 3 - continued to next Council meeting; Item No. 4
- deferred altogether; and Item Nos. 5 and 6 — no report.
COUNCIL COMMUNICATIONS:
Council Member Faessel reported his attendance at the Second Harvest Food Bank's launching
of Market Park -It, a mobile food bank, at Village Center Apartments; thanked Planning & Building
staff for a tour of District 5; recognized the volunteers at the Big Give; announced he helped
celebrate the 88th birthday of Korean War Veteran Noah Cisneros; and announced the Fairy
Tales & Ghost Stories exhibit at the Muzeo, the Greek Festival, and the 51st Kiwanis Club All-
Star Game on June 5th at 7:00 P.M. at Glover Stadium.
Council Member Vanderbilt thanked staff and their families for participating in the Big Give and
announced his attendance at the Asian Business Association of Orange County event and Mr.
Walker's class at Loara High School.
Council Member Barnes thanked Public Utilities General Manager Dukku Lee for the
comprehensive report for Item No. 8 regarding the Integrated Resource Plan and Community
Services staff for the Parks Plan and moving forward on next steps. She requested a future
Closed Session agenda item regarding future police claims against the city and the Police
Department environment. She recognized the Big Give and addressed emails she receives with
various questions about the state of the city and remarked on the care and prioritization Council
Members give to all city issues.
City Council Minutes of May 15, 2018
Page 35 of 35
Mayor Pro Tem Moreno thanked the Second Harvest Food Bank for their event; expressed
gratitude to staff and volunteers for the Big Give; and announced several upcoming events:
District 3 community meeting at Tony's Deli on Thursday, May 17th, 6:30-8:00 P.M.; a housing
forum at St. Boniface Church on May 24th at 6:00 P.M.; community meeting at the Downtown
Community Center's senior lounge on Tuesday, May 29th at 2:00 P.M.; and a community meeting
at the Central Library's multipurpose room on Saturday, June 2nd at 10:00 A.M. to get input on
the budget. He gave a shout -out to the city's high school graduates and wished them well on
starting their next path, specifically his daughter, Karina, and congratulated Anaheim Elementary
School District trustee, Dr. Jose Paolo Magcalas, for obtaining his Ph.D in education from
Chapman University. He requested an agenda item prior to the November election of the
proponents of the living wage ordinance to share their legal interpretation of what they wrote and
their believed benefits of the ordinance.
Council Member Kring announced the 23rd Annual Taste of Anaheim at the GardenWalk on
Thursday, May 17th, 5:30-10:30 P.M.; the Police Department's recognition of their retiring
professionals on Thursday at The Grove, 5:00-8:00 P.M.; and the Fire & Rescue Department's
promotions on Friday, 9:00-11:00 A.M. She also requested a proclamation for the Anaheim
Regional Medical Center.
Council Member Murray asked time be given to any other economic study of the proposed
initiative on Anaheim; announced the groundbreaking of the Logan Wells Skate Park May 25th
and thanked Community Services staff, the Wells family and the Foundation for their efforts;
reported Taylor's Wish 5k last Saturday at Sycamore Park to raise funds and awareness of
pulmonary hypertension; thanked staff for the Big Give; and reported her attendance last
Saturday at the Muzeo's Trash Art Challenge, recognizing great student work regarding
environmental stewardship
Mayor Tait thanked the Interim City Manager, city staff, and volunteers for the Big Give and asked
for an agenda item to start the design process of how to energize the Santa Ana River,
particularly near the Stadium and Honda Center.
ADJOURNMENT:
With no further business before the City Council and without objection, Mayor Tait adjourned the
meeting of May 15, 2018 at 12:41 A.M. on May 16, 2018.
R e s p e ctf u l ty��
i esa Bass, CMI
Assistant City Clerk