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06/19/2018ANAHEIM CIN COUNCIL SPECIAL AND REGULAR MEETING OF JUNE 19, 2018 The special meeting of June 19, 2018 was called to order at 2:06 P.M. in the Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on June 15, 2018. PRESENT: Mayor Tom Tait and Council Members Jose F. Moreno, James Vanderbilt, Denise Barnes, and Stephen Faessel. Council Members Kris Murray and Lucille Kring joined the special meeting during the workshop. STAFF PRESENT: Interim City Manager Linda Andal, City Attorney Robert Fabela, and Acting City Clerk Theresa Bass WORKSHOP: Fiscal Year 2018/19 Proposed Budget (Convention, Sports & Entertainment, Community & Economic Development, and Planning & Building) Convention, Sports & Entertainment Executive Director of Convention, Sports & Entertainment Tom Morton, presented the Fiscal Year 2018/19 Convention, Sports & Entertainment operating budget and capital improvement plan. He stated that the Convention, Sports & Entertainment department is an enterprise fund that is responsible for managing the day-to-day operations of the Anaheim Convention Center. Additionally, the Department administers the agreements for Angel Stadium of Anaheim, the Honda Center, the City National Grove of Anaheim, ARTIC, and Visit Anaheim. The departmental operating budget totals almost $128 million; of this total amount, $3.5 million will be used to fund Capital Projects. The department's budget is 20% of the City's General Fund, with this year the Convention Center debt service of $16 million, ARTIC annual operating loss of $2.4 million, and the entire Anaheim Resort LPMR transfer of $64 million. In regards to expenditures by classification, with the inclusion of LPMR debt and ACC debt, these two items make up almost 50%. While labor is at 19.5%, when ACC debt service and capital is removed, the percentage is actually 63%. Most of the expenses in the department are associated with the Convention Center, as this year included the convention center debt service and the Anaheim Resort LPMR debt service. Visit Anaheim is next as it receives almost $15 million in restricted Anaheim Tourism Improvement District (ATID) marketing funds. ARTIC follows with expenditures totaling $7.4 million, which is a combination of debt service and annual operating expense. Mr. Morton reported that for fiscal year 18/19, the department is budgeted at 85 full time employees and 252 full time equivalents. The 252 full-time equivalents equate to a part-time pool of 515 employees, which consists mainly of facility services, security, crowd control, and parking. Mr. Morton highlighted some notable changes for this year, with the largest being the opening of Betterment VII or ACC North. The 900,000 square foot expansion cut its ribbon on September 26, 2017 and had its first event move in on October 1St. This new addition to the Anaheim Convention Center campus added 200,000 square feet of leasable, flex space; replaced the previously existing 1,350 parking spaces; added a climate controlled bridge connection to the existing facility; and added a 12,000 square foot kitchen and a 10,000 square foot terrace that has fireworks viewing opportunities every night of the year. Mr. Morton stated that with the opening of ACC North, they have had an exceptional opportunity to market and sell the facility, retain large annual events, attract new meeting -intensive groups City Council Minutes of June 19, 2018 Page 2 of 38 they could not previously accommodate, and secure concurrent events, which maximized exhibit hall space in conjunction with the existing and new flex space. Additionally, next June, Anaheim will host the U.S. Travel Association's IPW event. This event is the leading international inbound travel trade show driving $4.7 billion in future travel to the United States and these 7,000 travel/tour operators will get to see Anaheim as that potential destination. Both of the mega, annual conventions, NAMM and Natural Products, expanded into ACC North, experienced record attendance, and both have signed long-term agreements. Visit Anaheim has already re -booked events such as Keller Williams, Gamestop, and the Association of Health System Pharmacists, groups that would have outgrown the facility without ACC North. In addition, Visit Anaheim has booked over 115 future events that will use ACC North along with ACC; including Best Buy, their very first event to utilize the new expansion, as well as Oncology Nursing, the American Rental Association, Nutanix, and Society of Critical Care Medicine. Mr. Morton reported that in the 2017 season, Angels baseball celebrated their 15th consecutive year with over 3 million tickets sold. Additionally, Mike Trout was selected as the ESPY award winner for the best major league baseball player, Albert Pujols became the 32nd player to reach the 3,000 hit club, and the Angels signed one of the most sought after free agents in recent history, Shohei Ohtani. The Honda Center is celebrating its 25th anniversary this year as it debuted the new South Entrance expansion, which added close to 10,000 square feet to the Arena's concourse. He highlighted that on this date in 1993, the Honda Center opened to a sold out Barry Manilow concert. The Arena will host over 185 events with an attendance of 1.2 million. The Ducks rallied to make the playoffs this year, but unfortunately were not able to make it out of the first round. Finally, the City National Grove of Anaheim hosted 210 events in calendar year 2017 with over 116,000 attendees. He concluded with highlighting that the venue hosted notables such as David Crosby, Ann Wilson, and STYX. In 2017 the Grove was ranked 14th in the country for venues under 2,000 seats by Venues Today magazine. DISCUSSION: Mayor Tait addressed debt service for the Convention Center for Capital Improvements and Mr. Morton clarified what was included in the budget. Mayor Tait asked regarding City costs and revenues related to the Convention Center and Mr. Morton stated the most recent debt service was $16 million and have revenue sources attached. Finance Director/City Treasurer Debbie Moreno stated debt service was still outstanding in terms of the Convention Center expansion and the expansion is approximately a third -and -a -half of the actual debt. Staff will need to review the LPMR piece and Ms. Moreno reported it was between $11 and $13 million. Mayor Tait asked for a breakdown of the Convention Center itself, including operations and debt service. Ms. Moreno stated the LPMR has more revenue than just fees they get from hoteliers because it contributes towards transient occupancy tax (TOT) and offered to prepare something separately for Council. Mayor Pro Tem Moreno asked regarding revenues from the Convention Center and Mr. Morton listed the sources of revenue from the Convention Center and reported the only reason the expansion was able to happen was the creation of the Anaheim Tourism Improvement District (ATID) because it freed up the dollars that allowed the City to expand. The money used to go to Visit Anaheim through the General Fund. The debt service does not consider any of the TOT from people attending conventions. In response to an inquiry from Mayor Pro Tem Moreno regarding the additional revenue the expansion is generating, Mr. Morton noted that would flow through Finance Director/City Treasurer Moreno on the TOT projections, which show increasing year -over -year. He added Visit Anaheim tracks that information, but he does not have the current report available now. Staff is projecting revenues from the expansion from $33 million to $39 million. City Council Minutes of June 19, 2018 Page 3 of 38 Mayor Pro Tem Moreno referenced the budget for ARTIC and asked whether there was still an operating deficit. Mr. Morton stated $3.5 million is debt, which is paid through Measure M2, $3.9 million is the annual operation ($1.5 million of which is associated with revenue), and the annual operating loss is at $2.4 or $2.5 million. Mayor Tait stated he would like the same type of analysis done for the Convention Center. Council Member Faessel asked regarding the total LPMR transfer and Mr. Morton stated it was $63.9 million. Additionally, $39.1 million of that is the actual debt amount. He stated an opportunity to clarify would present itself in the additional information requested by Mayor Tait. Mayor Tait commended staff on their report and Mayor Pro Tem Moreno recognized staff for including the information on ARTIC in the report. Community & Economic Development Community & Economic Development Director John Woodhead presented the Community and Economic Development budget for Fiscal Year 2018/19, stating their core services consisted of preserving, improving, and expanding the supply of affordable housing in the City; providing a wide range of job training services and employment opportunities to residents; promoting business growth and developing marketing resources for the business community; and leveraging non -discretionary funding for investment in the community. The Department has a Fiscal Year 2018/19 proposed use of $194.8 million, making up 15% of the citywide budget and receives less than 1 % of the city's general fund, with the vast majority of funding coming from non -discretionary funding sources such as restricted grants from the federal government under the Section 8 Rental Assistance Program, the HOME Investment Partnership Program, the Emergency Solutions Grant Program, the Community Development Block Grant Program, and the Housing Opportunities for Persons with AIDS Program, as well as funding from the State via the federal Workforce Innovation and Opportunity Act, the former Redevelopment Agency's affordable housing assets, and funding from the Redevelopment Property Tax Trust Fund for the unwinding of the former Redevelopment Agency's affairs. Mr. Woodhead reported the Department's operating budget is $163.4 million, 6.8% of which is allocated to personnel costs with the remainder allocated to other operating costs, capital outlay, and debt service. The operating budget is allocated among the Department's divisions, which include $112 million to Housing, with $84.7 million for the Section 8 Rental Assistance Program and $27.3 million for Affordable Housing Development; $31.8 million for Community Investment; $12.3 million for Grants; $3.7 million for Administration; and $3.6 million for the Workforce Division. The Department's budget accounts for 73 full time staff and 17 part time staff or 9.3 full time equivalents. Mr. Woodhead highlighted several notable changes, reporting that the Department completed the consolidation of the housing subsidy (Section 8) program and the workforce program,. Anaheim Jobs, in May 2018. The center includes a spacious computer resource center and an improved interview area. Additionally, several community partners including the Employment Development Department, State Department of Rehabilitation, Senior Employment Resources, and the North Orange County Community College District will be co -located in the remodeled space, thus making the offices on the second floor at Anaheim West Tower a true "one-stop" shop for housing and employment resources. Through their partnership with the Anaheim Union High School District, the Housing Assistance Pilot Program (HAPP) for homeless families has assisted over 500 individuals, consisting of 198 adults and 327 children, with over 90 households obtaining permanent housing. In July 2017, the Department launched another unique, Anaheim -specific, pilot program to assist chronically homeless individuals experiencing homelessness. The target City Council Minutes of June 19, 2018 Page 4 of 38 population to be served by CHIPP, and the related supportive services, were all informed by the results of an Anaheim specific homeless census that took place in November of 2016. The homeless count revealed that a large portion of the homeless in Anaheim are single, adult males who have been living on the street for an extended period of time. The CHIPP program is administered in partnership with Mercy Housing and the Illumination Foundation, two agencies with extensive experience serving the homeless. Currently, there are 20 chronically homeless individuals participating in the program, with 10 individuals already housed and the remainder enrolled in case management and engaged in preliminary housing search services. Mr. Woodhead further highlighted the Residential Rehabilitation Program providing income - eligible homeowners with home improvement grants and/or loans at a zero percent interest rate with repayment deferred until sale, transfer of title, owner occupancy cessation, or cash -out refinancing. The goal of the program is to improve the quality of life for Anaheim residents by assisting with property repairs and improvements necessary to make their homes decent, safe, and attractive. The city partners with Habitat for Humanity of Orange County to administer the program. Currently, the program has a budget of approximately $2 million and is funded by the Community Development Block Grant Program. Habitat just recently completed the first extensive rehabilitation project and has another three actively under construction. An additional nine projects are in the pipeline. Finally, the City's new Business Attraction, Development, and Retention Program includes business assistance meetings to facilitate business expansions, relocations, and commercial site selection with features in the monthly Anaheim Business Connection eNewsletter. Mr. Woodhead shared the Department has a number of exciting opportunities for Fiscal Year 2018/19. The department will continue to leverage affordable housing assets to develop a 54 -unit affordable housing development for seniors at the site of the Sandman Motel and a shipping container project for Anaheim's homeless veterans. In addition, they received proposals for the development of over 100 units of workforce housing for Anaheim residents at the southeast corner of Manchester and Orangewood and will be bringing forward that project for Council consideration soon. In West Anaheim, the city entered into an agreement to acquire the Americana Motel and hopes to bring forward an agreement to purchase adjacent properties at the southeast corner of Lincoln Avenue and Beach Blvd. Staff will continue to position Anaheim as a premier business destination with upcoming efforts that include the creation of a dedicated economic development website, a video marketing series, and collateral materials. They will also continue to brand the Beach Boulevard corridor in collaboration with neighboring cities. Mr. Woodhead reported the department will be introducing an agreement with local schools and taxing entities to leverage the assets of the former Redevelopment Agency to provide a funding source to pursue continued community investment opportunities including partnerships with local public schools and youth programs. They will also endeavor to develop a plan for a partnership with the Anaheim Union High School District and other local partners to create a Learning and Resource Center at the site of the original Northgate Market. Mr. Woodhead highlighted that the department served over 12,000 job seekers at the Anaheim Jobs Center and 390 youth at the Youth Summer Job Fair. They launched a new business attraction, development, and retention program that includes an Economic Development Team with inter -departmental representation, a business seminar series, Commercial Broker and Property Management workshops, and a Youth Entrepreneurship Forum. He further highlighted the City Council recently approved the Disposition and Development Agreement for the 326 -room Radisson BLU hotel on a former Redevelopment Agency parcel on Anaheim Blvd. with expected construction to begin in the fall. City Council Minutes of June 19, 2018 Page 5 of 38 DISCUSSION: Council Member Faessel referenced a community investment of $31.8 million and asked what that consisted of. Mr. Woodhead reported much of it pertains to former Redevelopment Agency (RDA) contracts and the City is receiving significant money from the State to make good on those contractual obligations, accounting for $25 million; for business retention and expansions, the City is funding at approximately $1 million, and the City has a number of physical investments it may make in the community, including required projected public improvements. He added much of it pertains to preparing sites for future development and much investment is done on the affordable housing side as well. Council Member Kring asked how people can get involved in Habitat for the Homeless. Mr. Woodhead reported people can visit haps://www.habitatoc.org or the City's webpage for more information. The City has allocated significant dollars for that program and it is still in its infancy, funded through the CDBG program. Council Member Kring asked about the status of the Orangewood and Manchester property and Mr. Woodhead reported there were a number of proposals received in response to the RFP and staff has evaluated them and chosen a winner which will be presented for Council's consideration in the future. Council Member Kring congratulated Mr. Woodhead and his staff for their work. Mayor Pro Tem Moreno asked about the income level associated with the project on Orangewood and Manchester, to which Mr. Woodhead responded it will be for those with extremely -low and very -low income and 100% of the units will be classified as such. The land is from former RDA housing assets and the City contributed it into the deal and housing vouchers will be provided for a number of units in the project. He added the winning applicant will go after 9% tax credits which will contribute more cash into the deal. Mayor Pro Tem Moreno commented on the City being dependent on Federal housing vouchers to provide affordable housing and asked about projections for Federal funds. Mr. Woodhead reported the City's housing assets come from many different sources and Federal funding from the last year was stable. It is hard to deduce where the Federal Government was going, particularly with the Section 8 program, and reported staff has heard there will be drastic cuts to the program. Staff anticipates there will be a stringent work component eventually adopted for the program, which is why the City moved forward with combining the workforce and housing programs. Mayor Pro Tem Moreno suggested the City develop its own funding stream to address potential cuts in Federal funding. Mr. Woodhead reported there was no recommendation, at this time, to do so. Council Member Vanderbilt referenced the Successor Agency Networking program and asked about when buy -in was expected from the school districts. Mr. Woodhead stated it was difficult to say but he has had successful conversations with all school districts and felt confident they will go along with the program. He commented on negotiations with the County and hoped to bring a report to Council in September. Council Member Vanderbilt added there are times when property is used for short-term rentals and asked regarding its inclusion in the list of priorities. Mr. Woodhead reported it was passive income and noted the City knows that vacant properties tend to be vandalized. If the City has an asset, it protects it by having it occupied, but it does not actively pursue renting it. Council Member Murray reported meeting with a representative of Housing and Urban Development in Washington D.C. and reported the Federal budget for this year included an $800 million increase for deferred rehabilitation needs to preserve apartments that could be used for extremely -low and low-income individuals. There was also an increase of $400 million in the Home Investment Partnerships program for additional housing and CDBG funding was increased by $300 million and a 12.5% increase in Low -Income Housing tax credits. Additionally, there is a proposal for additional Section 8 funding to help the disabled homeless. She confirmed the County is applying that funding and asked the City reach out to ensure its share, wherever possible. City Council Minutes of June 19, 2018 Page 6 of 38 Planning & Building Acting Deputy City Manager/Planning & Building Director David Belmer presented the Fiscal Year 2018/19 budget for the Planning and Building Department, stating the Department's Mission is to enhance the City of Anaheim by developing and implementing land use policies that reflect the goals of the community; ensuring safe and code compliant development and properties; attracting and retaining business that contribute towards a healthy economy; and providing exceptional services. The Department's core services include the administration of the City's business license functions and the City's Planning efforts and community preservation, which include animal control services and graffiti abatement services. The proposed overall Planning and Building budget for Fiscal Year 2018/19 is roughly $24.8 million, which makes up 1 % of the total City budget. With regard to General Fund, the department's budget is $22.5 million, which is 5% of the General Fund budget. Labor is 55.8% of the budget and other operating at 41 %, which include the administered contracts such as animal control and graffiti services. Operating budget by division shows Community Preservation and Licensing has the largest due to animal control and graffiti abatement contracts. He reported the Department's budget accounts for 76 full time staff and 39 part time staff, or 27.9 full time equivalents. Mr. Belmer highlighted notable changes, stating the City receives Community Development Block Grant, which is used for code enforcement services throughout the city in targeted areas. He stated that HUD is getting more restrictive on how funds are used which resulted in a $73,000 reduction in code enforcement personnel. Staff will be looking on how to offset with other sources. Graffiti removal is a priority for the community and administered by the department via contract. A year ago, a one year contract was award to the current vendor to provide those services; at that time staff informed Council that primarily due to prevailing wage issues as a result from a ruling from the State of California those costs increased significantly. As result, staff was looking at creative ways to provide this service including a possibility of bringing those services in house and concluded that the best option was to continue to contract the services. Similarly, animal control services are contracted with the County and staff is also looking at creative ways to reduce costs and improve services. Mr. Belmer highlighted Andy's Map, an online access tool furthering the Council's goal of transparency. The public can log -on to the map and see the projects under consideration including the addition of displaying projects being processed by the Public Works Department. The City's GIS team helped in creating this on-line tool and they are looking into enhancing this tool in the coming year. He highlighted the Building Express Lane, which cut customer wait time by half, and the Rapid Revision Review Process. Mr. Belmer also highlighted the first Minor Conditional Use Permit applicant for the EI Pollo Norterio. He spoke of the Mills Act Program, which is the 3rd largest in the State of California, the Anaheim Urban Design Studio, which is a is a partnership between the Planning & Building and Community & Economic Development Departments working with young interns from various colleges and universities to assist in their designs and projects, and the new specific plan for the CTR City Corridor, which is along Anaheim Boulevard and Harbor Boulevard between 5 Freeway and the 91 Freeway. Mr. Belmer spoke of the Code Streamlining Program, which has received two awards, stemming from the Mayor's Regulatory Relief Task Force. Staff will continue to evaluate codes and streamline development processes. He highlighted the projects in the Platinum Triangle, which included A -Town, JPI project on Gene Autry and State College, The George, and the Trumark project, which is bringing 153 for -sale townhomes to the Platinum Triangle. As for the Resort, he highlighted the recently completed hotels and the Disneyland Star Wars Land, the new parking structure, and Paradise Pier revitalization. The department is working with the various City Council Minutes of June 19, 2018 Page 7 of 38 departments on the Beach Boulevard Specific Plan and anticipates holding the public hearing to adopt the plan mid -summer. The City of Anaheim has 15 open breweries and he highlighted the recently opened Golden Road Brewery on Orangewood Avenue. DISCUSSION: Council Member Murray asked regarding the graffiti abatement program and asked regarding the amount needed to maintain the same level of service, to which Mr. Belmer reported the contract is $1.6 million. Council Member Murray stated she would like to see park maintenance brought back in-house and asked regarding the number of units involved in the Quality Rental Housing program and the Motel program. Mr. Belmer stated the City is well into Phase 4 of the program and thousands of units are involved. The City will eventually work its way back to Phase 1. Council Member Murray asked for another update in the future. Council Member Kring stated residents love the graffiti abatement program as it adds to their quality of life as well as businesses. She asked regarding animal control, noting the shelter is quite far from Anaheim and asked what the City's intentions were. Additionally, she referenced animal abuse and asked who was in charge of those violations. Mr. Belmer reported the animal cruelty component was administered through the County. Additionally, he stated many people who previously required visiting the animal shelter are having to do so much less, because of improvements in technology. He added staff is considering working with local clinics for people who cannot travel long distances to the shelter. Council Member Kring requested including instructions on the City's website relative to animal care and control. Council Member Barnes asked about educational programs in local schools and incentivizing to discourage graffiti by promoting artist creativity in other parts of the City and generating a "wall of shame" for violators. Mr. Belmer reported Sandra Sagert administers the program and staff goes out into the community and includes that information as part of a continuing dialogue. The Police Department is also part of that process as part of continuing education. In terms of a "wall of shame," the contract includes that offenders contribute to community services. Council Member Vanderbilt believed the Anaheim Police Department has a program dealing with penalties for people participating in graffiti. He commented on part of education being providing information to individuals/property owners in terms of addressing graffiti themselves. He suggested staff consider existing programs that might need minor adjustments versus developing new programs. Mayor Pro Tem Moreno expressed concern and frustration regarding the growing graffiti problem in the City. Mr. Belmer stated he does not know, for sure, if the City has a bigger graffiti problem than other surrounding cities. He believed others in the City would have a better perspective about how neighboring cities are faring in that regard. Mayor Tait believed the issue is much better than in previous years and reported the City's challenge is how to do more with less hours. He asked staff to keep a close eye on the subject. Council Member Murray acknowledged staff and commended them for their excellent work. Mayor Tait thanked staff for their presentations and their work and commented on the City's business -friendly environment. He suggested generating a list of all the extraordinary things the City does to promote a business -friendly environment. PUBLIC COMMENTS ON WORKSHOP: None Mayor Tait adjourned the special meeting of the Anaheim City Council and called to order the regular meeting of the Anaheim City Council at 3:29 P.M. City Council Minutes of June 19, 2018 Page 8 of 38 ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None CLOSED SESSION: At 3:29 P.M., Mayor Tait recessed to Closed Session for consideration of the following items: CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representatives: Jason Motsick, Acting Human Resources Director and Representative of Avery Associates Position: City Manager 2. PUBLIC EMPLOYEE APPOINTMENT (Section 54957 (b)(1) of the California Government Code) Position: City Manager 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Jarret Young v. City of Anaheim, et al., Orange County Superior Court Case No. 30-2018-00966666-CU-OE-CXC 4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Orange County Catholic Worker, et al., v. Orange County, et al., USDC Court Case No. 18 CV -00155 -DOC (KESx) 5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: People's Homeless Task Force, et al., v. City of Anaheim, USDC Court Case No. 8:18-cv-00642 DOC (KESx) 6. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the Government Code) Property: Assessor Parcel Numbers: 253-473-01: 1200 S. Phoenix Drive, Anaheim, CA 92806; 253-631-32: 1200 S. Phoenix Club Drive, Anaheim, CA 92806; 253-631-39: 1200 S. Phoenix Club Drive, Anaheim, CA 92806 Agency Negotiator: Greg Garcia, Acting Assistant City Manager Negotiating Parties: Orange County Water District and City of Anaheim Under Negotiation: Price and Terms of Payment 7. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of California Government Code Section 54956.9: One potential case. At 5:29 P.M., Mayor Tait reconvened the Anaheim City Council meeting. INVOCATION: Pastor Darrin Sheek, Prince of Peace Lutheran Church FLAG SALUTE: Council Member James Vanderbilt City Council Minutes of June 19, 2018 Page 9 of 38 PRESENTATIONS: Recognizing Mills Act Recipients Acting Deputy City Manager and Planning & Building Director David Belmer explained the Mills Act program to encourage historic preservation and addressed the application process. He thanked Mayor Tait and Council for their support of the program, thanked participating property owners and staff, and presented recipients with commendations. Recipients included Shaheen Sadeghi, Gaspar Medina, Camilo Velazquez, Joaquin and Josefina Bastida, Evelyn Kay Williams -Burr, Mauricio and Jaylene Ventresca, Luis and Lauren Lopez, Giovanni and Elizabeth Recinos, Seaver Sizemore and Kelly Ostrand, and Ricardo Llajaruna and Giovanna Murillo-Llajaruna. Recognizing Detective Bruce Linn and local businesses on their Acts of Kindness Mayor Tait invited former Anaheim Police Department and OCDA Investigator Bruce Linn to the podium. Mayor Tait related the story of Augustin Villegas who was shot as he rode as a passenger in a vehicle. Bruce Linn was assigned to the case and was inspired to give back to the Villegas Family by restoring the family's vehicle to its original condition and working with various vendors to complete the job. Vendors who contributed their services included Mark Herron with Frazier Auto Upholstery, Craig Haller and Josh Mussche with Exclusive Truck & Automotive, Rady Beckett with Boss Paint and Body, Anthony Giusiana with Linex Orange County, Darren Priest with Auto Fetish Inc., Chris Bohenski with Auto Hub, Roman Escheveste with Farmers Insurance, and Javier Garcia with JC Auto Repair. Recognizing Westgate Community Canvas Competition Winners Mayor Tait reported the Community and Economic Development partnered with Zelman Development to sponsor a digital art project for Anaheim Union High School District students. Fifty-eight digital art submissions were received, and Mayor Tait addressed the theme, judges, and process of evaluation and invited Paul Casey of Zelman Development to the podium. Mr. Casey announced the winners as 1 st Place, Rhea Dimaandal, from John F. Kennedy HS; 2nd Place, Juyeon Kim, from Cypress HS and 3rd Place, Lizbeth Esquivel of Western HS. ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date): Proclaiming June 10 — 16, 2018, as National Flag Week Proclaiming June 2018, as Muslim Heritage Month Adele Achmed introduced her colleagues and thanked the Mayor and City for the proclamation. Proclaiming July 2018, as National Parks and Recreation Month Brian Harper, Supervisor, Recreation, Human and Neighborhood Services Division, Community Services Department, accepted a proclamation declaring July 2018, as National Parks and Recreation Month. At 6:02 P.M., Mayor Tait called to order the Successor Agency to the Redevelopment Agency and Anaheim Housing Authority (in joint session with the City Council). City Council Minutes of June 19, 2018 Page 10 of 38 ADDITIONS/DELETIONS TO THE AGENDAS: Acting City Clerk Theresa Bass announced that staff requested to withdraw Item No. 03 from the Housing Authority agenda. Additionally, she reported the appellant in Public Hearing Item No. 32 submitted a letter withdrawing their appeal and noted the removal of that item from the agenda. 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. Prior to the receipt of public comments, Mayor Tait announced the speaker time limt would be two (2) minutes. Cecil Jordan Corkern, Outreach Homeless Ministries, read a passage from the Bible and commented on Disney's use of sexual themes in their animation. R. Joshua Collins, Homeless Advocates for Christ, addressed homelessness and expressed concerns regarding the seizure of the property and criminalizing poverty. Todd Ament, President/CEO, Anaheim Chamber of Commerce and Chairman of the "No on the Job Killer Initiative Coalition", urged Council to select Option C on Item No. 30, opining the initiative was not good for Anaheim and urged Council to do an economic study to show what the impacts of the initiative will be to the community. Trevor O'Neil urged Council to select Option C on Item No. 30 and request a robust, in-depth economic analysis of the impacts of the minimum -wage initiative. He listed flaws in a previously referenced study and opined this was not just about Disney but would negatively affect other employers in the Resort District. He listed some suggestions and distributed a list for Council's review. Additionally, he opined the initiative will have a direct impact on the low tax and utility rates and high-quality services people receive as Anaheim residents, and will have budgetary impacts on projects currently in development. Mark Richard Daniels noted the minimum -wage initiative qualified within three weeks and opined if it makes it to the ballot, it will pass, overwhelmingly. He played the song, "When you wish upon a star" and thanked Council for its consideration. Ernesto Medrano, Los Angeles and Orange County Union and Building Trades Council, stressed the importance of doing an economic analysis of the impacts of the minimum -wage initiative. He stated the current language in the initiative was flawed and set back current and future hotel projects and labor agreements. He invited Council Members to visit one of their training centers and felt if the initiative succeeds, 3,000 jobs were as risk. He urged Council to support the economic analysis study. John Dunton commented on the Anaheim Fire Department saving his life after he collapsed several years ago. He addressed on the loss of many Military personnel, Police Officers, and a sixteen -year-old girl who recently lost her battle with colon cancer. He addressed comments between himself and the mayor and staff, opined that people have lost confidence in the City, and urged Council to approve the minimum -wage initiative. Jeanine Robbins urged Council to approve the minimum -wage initiative so that Anaheim residents will no longer experience food insecurity and can afford to rent in Orange County. She alleged Disney has abused its employees, the City, and its residents. City Council Minutes of June 19, 2018 Page 11 of 38 Mike Robbins referenced Item No. 32, noting the proposal is for a hotel and there are no City subsidies attached to the project. He requested an investigation of political action committees (PACs) and their effect on Anaheim politics and construction projects. Duane Roberts applauded Mayor Tait for embracing diversity instead of fear and welcomed the thousands of Trade Union Members, noting most of them do not live in Anaheim. He stated the Anaheim Chamber of Commerce and the Disney Company have done an excellent job in getting people out, tonight, to oppose the minimum -wage ordinance and addressed the working class opposing its own members. Tamara Jimenez, Anaheim Lighthouse and the Orange County Recovery Collaboration, referenced Item No. 28 and noted the services provided by Access California were vital to the community and desperately needed. She addressed services they provide and urged Council to do the most good for the residents of Anaheim and approve the expansion plan. Jerry Amante, Executive Director, Anaheim and Orange County Hotel and Lodging Association, referenced Item No. 30 and urged Council to select Option C on Item No. 30 and request a robust, in-depth economic analysis of the impacts of the minimum -wage initiative so citizens can be informed about the impacts associated with the initiative. Ron Miller, Executive Secretary, L.A. and Orange County Building Trades, spoke in opposition to Item No. 30 and urged Council to approve a robust, in-depth economic analysis of the impacts of the minimum -wage initiative. He opined the initiative will put an end to hotel projects and kill many jobs. Jerry Alder, General Manager, Anaheim Garden Walk, commented on the long commute of many employees and the lack of affordable housing in the City. He opined Anaheim can be part of the solution including a climate conducive to the construction of additional affordable housing and a serious effort towards reliable and economical transportation alternatives to and from areas having affordable housing. He spoke in opposition to Item No. 30 and feared it will worsen the problem, making fewer jobs available. "The Cameraman" referenced previous comments regarding Daron Wyatt. He thanked APD personnel for providing traffic safety during the recent March to Disneyland event. He commented on Disney and believed they could do better in terms of paying their employees a livable wage. Finally, he spoke about fireworks and the lack of resources to enforce the prohibition of illegal fireworks, and addressed the costs of Disneyland fireworks. Guy Setian, Local Iron Workers 433, shared his career experience and referenced Item No. 30, urging Council to conduct an economic analysis of the potential impacts of the initiative. Shannon Johnson, Disney employee, noted she cannot routinely eat three meals a day and had to move outside the City because he could not afford the rent. She added people will spend money in the community but cannot do so if they do not make it. Martin Lopez, UNITE HERE Local 11, noted hotels and development were thriving in Los Angeles and Long Beach, even after they implemented a living -wage initiative. He believed ordering an economic impact study was a waste of time and urged Council, if it will not vote to adopt the measure, to place it on the ballot for residents to choose. Marysol Flores, Operating Engineers Union Local 12, shared her career experience and urged Council to request a robust, in-depth economic analysis of the impacts of the minimum -wage initiative under Item No. 30. City Council Minutes of June 19, 2018 Page 12 of 38 William Fitzgerald, Home Owners Maintaining Our Environment, alleged City Council Members were corrupt and self-serving and commented on their attack on free speech at Council meetings. He addressed Council Member Vanderbilt's military service and voting record. Anthony W. Novello, United Association Plumbers and Pipefitters, Local 182, commented on the negative impacts of the minimum -wage initiative and asked Council to conduct an economic analysis of the potential impacts of the initiative. Dawn Zrinski, RV owner, expressed concerns regarding the recent RV parking ordinance and asked what the City has decided to do as tomorrow is the deadline for RVs to be off City streets. She reported she was recently cited for no registration tags, that she had paid for them, and was expecting them in the mail. She opined the City was targeting RV owners and claimed Council was violating her civil rights. Nancy Davis reported many people were selling their homes and purchasing RVs; that it was becoming a lifestyle. She was unsure if the deadline to remove RVs from the street is tomorrow but noted they have nowhere to go and most are good people. Mark Whisenant, RV owner, expressed the same concerns as the previous two speakers and urged the City to help them find an adequate place to park their RVs. Mayor Pro Tem Moreno reported that prior to approval of the ordinance, at least three Council Members asked staff to identify how the City might be helpful in other ways in relation to RV owners. Nancy VanValkenburgh, RV owner, expressed concerns with the RV parking ordinance and asked Council to help them with a solution or allow them more time to find a place to move to. She stated the deadline to move is tomorrow and they have no other place to go. Jennifer Ayres reported some people choose RV lifestyles and the ordinance will negatively impact them as well. She felt the ordinance was un-American and violated civil rights. She noted many people have medical conditions and have no way to help themselves and asked Council to help. Lorenzo noted many in the homeless population are veterans with mental illness. Many experiencing homelessness were professional and hard workers and expressed concerns with the recent RV parking ordinance. Jill Kanzler, Executive Director, SOAR, referenced Item No. 30 and felt that the people of Anaheim deserve a robust, in-depth economic analysis of the impacts of the minimum -wage initiative and that it would expose the truth about this job -killing initiative including loss in revenue and 3,000 good jobs. Armando Gonzalez, Disney employee, stated workers were not asking Disney to buy them homes or pay their car bills, but rather for a decent wage for decent work. He referenced the petition and noted the people of Anaheim have spoken. He urged Council to approve the matter, make it retroactive, and not wait for the November ballot. Dara Maleki, The Pizza Press, spoke in opposition to the living -wage initiative and expressed concerns with the collateral damage to small business owners in the Resort District. He urged Council to request a robust, in-depth economic analysis of the impacts of the minimum -wage initiative under Item No. 30. City Council Minutes of June 19, 2018 Page 13 of 38 Cathy Dutton referenced Item No. 30 and asked Council to approve a robust, in-depth economic analysis of the impacts of the minimum -wage initiative. She expressed concerns the initiative will negatively affect entry-level jobs for young people. She worried about a lost opportunity if the measure is enacted and urged Council to protect the people's interests and not blindly approve the initiative. Natalie Meeks referenced Item No. 30 and spoke in support of a thorough, economic review that studies all of the impacts of the minimum -wage initiative and the broader impact it will have on Anaheim residents and businesses. Paul Vicknair, Senior Commissioner, District 3, spoke regarding Anaheim's housing shortage and resulting homelessness. He reported Judge Carter's attempts will not resolve the entire problem and other options must be considered including building more mobile home parks. He addressed differences in costs and noted Anaheim has the land but is only building market -rate housing. He urged Council to address this matter in the City budget. Ross McCune, Anaheim Chamber of Commerce, referenced Item No. 30 and urged Council to order a fiscal impact report, expressing concerns with the possible elimination of jobs. He reported this was not an emotional decision, but rather a business decision based on calculated macro, statistical data and business information. He used an example of a Long Beach restaurant that closed its doors because of increased labor costs. Mirvette Judeh referenced Item No. 30 and noted it was time Anaheim supported a fair wage for employees in the City, as Anaheim is home to a big, profitable corporation and it was time they pay their employees a living wage. She hoped Council would make history and pass it as an ordinance or let the people vote. She spoke positively about the services provided by Access California, reported they need space in which to operate, and felt Anaheim should lead the way. Hazem Allsustani spoke in support of Access California (Item No. 28) and urged Council to help them expand their operation and continue their important and needed services. Patricia Cota spoke in support of Item No. 28 and the services provided by Access California. She shared her personal experience with the agency which has helped many people in the community. Vidal Arce shared his story growing up in EI Salvador and coming to this country to escape a civil war. He referenced Item No. 30 and urged Council to order an independent economic study regarding the minimum -wage initiative. Grant Henninger commented on the Statue of Liberty and the generations of immigrants who have come into our country. He quoted the poem at Liberty's feet and urged Council to talk with representatives in Congress to stop the current practice of separating children from their parents at the southern border. Mery Wangundo thanked Council for its support and urged its continued support of the expansion of Access California. Adam Wood, BIA/OC, expressed concerns over the continued conversation of inclusionary zoning, noting that it will not work. He reported the City needs to focus on resolutions that remove barriers to development and work in cooperation with the City. He referenced comments made at the past Council meeting and noted inclusionary zoning will harm the City and its people. City Council Minutes of June 19, 2018 Page 14 of 38 A male speaker spoke on behalf of Safatuallah Safat who had to leave the meeting. He read a letter from Mr. Safat commenting positively on the services provided by Access California and urging Council to approve their expansion under Item No. 28. Wes Jones distributed documents to staff, referenced the Homeless Policy Taskforce, its opposition by certain members of the public, and a subsequent petition that was circulated. He asserted UNITE HERE collected 120,000 signatures in support of a living wage and noted the need to pass the initiative. He expressed disappointment the Construction and Plumbers Unions were not standing with their brothers and sisters. Asmaa Ahmed, Council on American/Islamic Relations, referenced Item No. 28 and commented positively on the services provided by Access California and urged Council to support them in the work they do. Regarding item No. 30, she reported Disney employees were some of the hardest working individuals she has ever met and Disney should pay them a living wage. Nehad Mibar shared her testimony in relation to the great services provided by Access California and urged Council to approve their expansion. Michael Morgan, Union Gardner, referenced Item No. 30, reported he was the product of an apprenticeship program, and urged Council to take action that would strengthen good construction jobs. Bob Donelson reported more than 16,000 verified signatures were collected in support of the living -wage initiative and urged Council to place the initiative on the November ballot. He stated he will vote for the initiative in November and felt the City will waste a lot of money having an economic feasibility study commissioned. He hoped everyone will support the initiative and commented positively regarding the services provided by Access California. Kenneth Batiste commented on the "No Tolerance" law that was recently implemented and addressed impacts to poor people. He mentioned Disney employees and those living in motorhomes and noted the latter have nowhere to go if they cannot park on City streets. In terms of Disney, they made $4.4 million in one quarter. He reported one in six children in Anaheim are at risk of hunger, half of children in public schools receive free lunches, and 129,000 kids may go hungry on weekends and summer vacations. Additionally, he reported Chef Bruno feeds 30,000 motel and homeless children per week. He stressed people need to be paid a sufficient wage to feed their children and urged Council to adopt the living -wage initiative. Jorge Iniestra, Disney employee and member of UNITE HERE, thanked Mayor Tait for standing up against a proposal giving millions of dollars to Disney. He stated Disney does not need millions in tax subsidies but those who do need it are those who are working yet struggling to pay their rent and buy food. He urged Council to put the initiative on the November ballot. Dave K. commended the Anaheim Police Department for their great work and expressed concerns with the living -wage initiative because of unintended consequences. He believed people will visit hotels that have not received City subsidies because they would pay less wages and therefore, the rooms would be cheaper. He feared a loss of good jobs and felt the initiative is unconstitutional. Furthermore, he commented on the use of illegal fireworks in Anaheim and suggested allocating more resources to the issue, implementing a Neighborhood Watch Program, and providing a hotline for residents to report the use of illegal fireworks. Ynas Eldah spoke on behalf of Access California and commented on the value of their services to the community. She spoke in support of expanding their operation for continued efforts helping the residents of Anaheim. City Council Minutes of June 19, 2018 Page 15 of 38 Cesar Covarrubias addressed Item No. 29 and commented on the increasing crisis of housing throughout the State and homelessness. He urged Council to do whatever it can to provide affordable housing in the City. June Mekken spoke in support of the living -wage initiative and stated she believes that it will have a positive effect in that people will be able to eat and grow and stimulate the local community with the additional dollars earned. Nahla Kayali, Access California, expressed her gratitude for the continued support and consideration from the Mayor, Council, and staff. She asked Council to lease a defined site and construct a new building at Brookhurst Park and direct staff to negotiate terms of a lease agreement with Access California Services to expand their services. Karen Romero Estrada, OCCORD, referenced Item No. 29 and stated support for the City addressing its housing needs through an affordable housing ordinance., as without it, the City will encounter the same problems of building housing without any protection for the people most impacted. She urged Council to think outside the box and develop options to help Anaheim residents. Karen Rodriguez reported she canvased for the living -wage initiative, noting people are eager to give people what they deserve. She promised the group will not stop its efforts in fighting for people who deserve a living -wage and a decent place to live. Glynndana Shevlin, Disney employee, reported she has been homeless three times in the last two years. She directed comments to other building, trade, and construction unions present and noted they are all in the same boat. She wants them to build with union labor, but inside that hotel, there needs to be living -wage, union workers as well. She reported having many conversations with residents as she canvased, that the people spoke and supported the initiative, and urged Council to move forward in approving it. Nora Whittington reported she canvassed for the living -wage initiative and had many conversations from residents who also feel Disney should pay their employees a living wage. She believed when the initiative passes, these employees will bring money back into the community where they live. Shakeel Syed stated he does not have data in terms of businesses in the City, but, he has data on families without enough to eat. He felt shame for those who value money more than people and urged Council to support the living -wage ballot initiative and let the people decide for themselves and he addressed a clear intersectionality between affordable housing and a living wage. The living wage will help, but the policies of the City must include affordable housing development to help those working in Anaheim to live in Anaheim. Jeff LeTourneau, Northern Vice Chair of the Democratic Party of Orange County, addressed Item No. 28, Access California Services, noting it is an incredible program offering needed services to many and spoke in support of expanding their operation. Regarding Item No. 29, he stated based on the wages paid in Anaheim, people have a difficult time finding an affordable place to live. He urged Council to work on getting real affordable housing for Anaheim. He commented on the Pride Flag being posted in City Hall and thanked Council, noting it means a lot to many people. Regarding Item No. 30, he asked Council to place the matter on the ballot and let the people decide what is good for them. David Duran spoke in support of the expansion of Access California Services, noting the good it does for the community. He spoke in support of the living -wage initiative and asked Council to either adopt it as an ordinance or place it on the November ballot. Additionally, he asked the City City Council Minutes of June 19, 2018 Page 16 of 38 to stop ticketing RVs and reconsider the Mercy House report that the La Palma Check-in Center should be closed as many people depend on that service and there is no reason why it should be closed. Ada Tamayo, Union Organizer and Housing Commissioner, referenced Item Nos. 29 and 30 and spoke in support of an affordable housing ordinance. She added that a living -wage is necessary and noted Hilton and Sheraton pay their employees a living wage and if they can do it, so can Disney. Veronica Chavez, Disney employee, thanked residents and those who support a living -wage initiative as employees make the magic for Disney and workers deserve a living wage. Robert Williams referenced Item No. 14 and spoke in support of promoting Acting Chief Harvey as Anaheim's Chief of Police. He asked Council to consider the fiscal impacts on the City of someone already doing a good job and hiring someone else to replace him. He mentioned Item No. 15 and suggested hiring private security partners, under contract, to watch the parks for the City. He concluded by saying the City is spending a lot of money in the budget and suggested not duplicating services that are already being provided. Pam Donelson spoke in support of Item Nos. 28 and 30 and urged Council to approve the living - wage ordinance or place it on the November ballot. She shared her experience at the opening of the Ponderosa Water Park and thanked the City. Greg Diamond reported the same people that want a study now on the living -wage initiative are those who will use the study as campaign material in their efforts to defeat the initiative in November and the same people prevented an assessment of the Anaheim Angel's Stadium. He opined the study that was used to justify the subsidies of the hotels was terrible and offered to debate the two people who presented it. He stressed that a study now is not needed and people calling for one are hypocritical. COUNCIL COMMUNICATIONS/AGENDA REQUESTS: Council Member Faessel recognized Fire Chief Randy Bruegman on receiving the Howard Rayan Distinguish Service Award 2017 for developing Anaheim's first Community Based Strategic Plan and Standards of Cover. He requested that the meeting be adjourned in the memory of Mike Tucker and Marie Lenain, two community leaders. Mayor Pro Tem Moreno requested Interim City Manager Linda Andal to coordinate a meeting with him and any interested Council Members to meet with Public Works Director and staff, leaders from trades councils, the school district, and local businesses to discuss the promotion of local hiring, local contracting, and exploring pipeline approaches through apprenticeship programs. Council Member Faessel expressed interest in joining the proposed meeting. Council Member Murray thanked the public for their respectful involvement during the meeting. She addressed the minimum wage item, reminding residents to take the time to understand the breadth and scope of what is proposed. Council Member Kring reported her previous visit to the Iron Works Facility on La Palma and highlighted benefits of the apprenticeship program. Council Member Vanderbilt stated that he had the opportunity to visit two trade facilities and is interested to see the outcome of Mayor Pro Tem Moreno's proposed meeting. City Council Minutes of June 19, 2018 Page 17 of 38 CITY MANAGER'S UPDATE: None At 8:32 P.M., Mayor Tait recessed the Anaheim City Council to address the Successor Agency to the Anaheim Redevelopment Agency and Anaheim Housing Authority agendas, and reconvened at 8:51 P.M. CONSENT CALENDAR: At 8:51 P.M., the consent calendar was considered with Mayor Tait pulling Item No. 14, Mayor Pro Tem Moreno pulling Item No. 05, Council Member Faessel pulling Items Nos. 12 and 15, and, Council Member Murray pulling Item No. 22 for separate discussion and consideration. 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 Barnes. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried. 6. Approve recognition recognizing Working Wardrobes' 28th Anniversary and Tony Lopez D116 and Joshua Burciaga for their Act of Kindness. D117 7. Approve the Investment Portfolio Report for May 2018. 8. Accept the bids from Pivot Interiors, Inc. and Goforth & Marti, Inc., in the amounts of D180 $10,372.23 and $223,668.28 respectively plus applicable tax, to provide lobby and outdoor furniture from two specified manufacturers for the Anaheim Convention Center, in accordance with Bid #9138. 9. Accept the bids from Action Door Repair Corporation and All American Lock Corporation, D180 in the combined not to exceed amount of $187,721, for as needed roll -up door maintenance and repair for a one year period with up to four one-year optional renewals; accept the bids from E -Z Automated Systems and Action Door Repair Corporation, in the combined not to exceed amount of $54,363, for as needed automatic door maintenance and repair 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 #9129. D180 10. Accept the bids from Bound Tree Medical and McKesson Medical -Surgical, Inc., in a combined amount of $146,821.04 plus applicable tax, for the purchase of pharmaceutical supplies for a one-year period with four one-year optional renewals and authorize the Purchasing Agent to exercise the renewal options, in accordance with Bid #9136. 11. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing D180 Agent to issue a Master Agreement to Accela, Inc., in the amount of $50,137.20, for the purchase of 50 additional software licenses for the License & Case Management module of the Accela Civic Platform software program, which includes annual support for the new licenses in conjunction with existing software license and support agreements. City Council Minutes of June 19, 2018 Page 18 of 38 AGR- 13. Authorize the Finance Director to deliver a written notice to exercise the purchase option 1464.IV under the Lease -in, Lease -out Transaction of the Sublease with Facility to U.S. Bank National Association for the Honda Center located at 2695 E. Katella Avenue, and take the necessary actions in connection therewith. 16. Approve and authorize the City Manager to execute CalWORKs Training Vendor AGR- Agreements with Brem Industries, Inc., DBA California Career Schools, in the amount of 7158.0 $100,000, and KD Education, LLC, DBA Healthstaff Training Institute, in the amount of $200,000, for the provision of occupational skills training effective July 1, 2018 through AGR- June 30, 2020; and authorize the Workforce Development Manager, or authorized 10231.A representatives, to administer the Agreements. 17. Approve the First Amendment to Agreement with Anaheim Transportation Network (ATN) AGR- granting ATN the right to provide additional public transportation services along the 8758.1 current ATN public route system on an as -needed basis for attendees of events at the Anaheim Convention Center (ACC); increasing the number of optional renewals at the City's sole option by four, for a total of five optional one-year renewals bringing the overall term of the Agreement to six years; increasing the hourly rate payable to ATN by $2.62 per hour for a total of $54.78 per hour for the first additional one-year renewal with a 3% annual increase for each vehicle requested for ACC attendee shuttles; and increasing the total compensation by $550,000, for a total not to exceed amount of $850,00; and authorize the Executive Director of the Convention, Sports & Entertainment Department to execute the agreement, any other related documents, and take the necessary actions to implement and administer the agreement. 18. Approve an agreement with Western AV, in the total amount not to exceed $186,815.67 AGR- plus an additional 15% for as -needed extra services, for audio and visual upgrades of four 11140 conference rooms at Anaheim West Tower; and authorize the Public Utilities General Manager, or designee, to execute the Agreement, and any related documents, and take the necessary actions to implement and administer the agreement. 19. Approve an agreement with AKM Consulting Engineers, Inc., for a total amount not to AGR- exceed $968,478 plus an additional 10% contingency for extra services, if needed, to 11141 provide design engineering services for the Linda Vista Complex Pump Station Improvements Phase 2 Project; and authorize the Public Utilities General Manager, or designee, to execute the Agreement, and any other related documents, and take the necessary actions to implement and administer the agreement. 20. Approve a Direct Payment — Letter of Instruction Agreement No. 17Y-1406 (Agreement) AGR- with the State of California, Department of Community Services and Development to 1865.F.0.1 receive Low -Income Home Energy Assistance Program (LIHEAP) federal grant funding to be applied to the accounts of eligible Public Utilities Department electric customers; and authorize the Public Utilities General Manager, or designees, to execute the agreement, and any related documents, and take the necessary actions to implement and administer the agreement, and any prior acceptance and disbursement of LIHEAP funds to eligible electric utilities customers is hereby ratified. City Council Minutes of June 19, 2018 Page 19 of 38 AGR- 21. Approve Amendment No. 1 to Agreement No. 7185 with PSOMAS, in an amount not to 7185.1 exceed $30,000 increasing the total not to exceed amount to $533,000, for the design and engineering services for the Anaheim Boulevard and Ball Road Intersection Improvements Project. 23. RESOLUTION NO. 2018-063 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (Audit Division, City Administration, City Attorney, City Clerk, Community & Economic Development, Community Services, Convention, Sports & Entertainment, Finance, Fire & Rescue, Human Resources, Planning & Building, Police, Public Utilities, and Public Works). E127 24. RESOLUTION NO. 2018-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2018, for the election of certain officers required by provisions of Article XIII, Section 1300 of the City Charter. RESOLUTION NO. 2018-065 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM requesting the Board of Supervisors of the County of Orange to consolidate a General Municipal Election to be held on November 6, 2018 with the Statewide General Election to be held on that date pursuant to Sections 10403 and 10418 of the Elections Code. RESOLUTION NO. 2018-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 6, 2018. 25. ORDINANCE NO. 6438 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapters 18.10 (Industrial Zones); 18.14 (Public and Special - Purpose Zones); 18.36 (Types of Uses); 18.38 (Supplemental Use Regulations) 18.92 (Definitions) and 18.120 (Anaheim Canyon Specific Plan No. 2015-1 (SP 2015-1)) of Title C280 18 (Zoning) of the Anaheim Municipal Code and finding and determining that this ordinance is exempt from the requirements to prepare additional environmental C420 documentation per California Environmental Quality Act (CEQA) Guidelines, Section 15060(c)(2) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment (Zoning Code Amendment No. 2018-00148; Specific Plan Adjustment No. 2015-00001 F; DEV2018-00028) (to allow outdoor storage of oversized and recreational vehicles within the Transition, Open Space, and Industrial Zones and within Development Areas 1 and 2 of the Anaheim Canyon Specific Plan, subject to the approval of a Conditional Use Permit) (Introduced at Council meeting of June 12, 2018, Item No. 30). ORDINANCE NO. 6439 (ADOPTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2018-00312; DEV2018-00028) (to reclassify property located at 2720 West Lincoln Avenue from the Multiple Family Residential (RM - 4) to Open Space zone) (Introduced at Council meeting of June 12, 2018, Item No. 30). City Council Minutes of June 19, 2018 Page 20 of 38 Determine that the proposed Zoning Code Amendment, Specific Plan Adjustment, and Reclassification are exempt from the California Environmental Quality Act under Section 15060(c)(2) of Title 14 of the California Code of Regulations. 26. ORDINANCE NO. 6440 (ADOPTION) AN ORDINANCE OF THE CITY OF C280 ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal Code relating to zoning and making findings in connection therewith (Reclassification No. 2018-00311; DEV2018-00020) (to reclassify specified park properties owned by the City of Anaheim from the zones they are currently in to the Public Recreation (PR) Zone) (Introduced at Council meeting of June 12, 2018, Public Hearing, Item No. 38). Determine that the proposed ordinance is exempt from the California Environmental Quality Act under Section 15060(c)(2) of Title 14 of the California Code of Regulations. D114 27. Approve minutes of Council meetings of October 24, 2017. END OF CONSENT CALENDAR: 9:39 P.M. 5. Receive and file the Budget, Investment and Technology Commission's recommendation 8105 letter dated June 13, 2018 regarding the fiscal year 2018/19 proposed budget. Finance Director Debbie Moreno reported the item was an annual review and letter by the Budget, Investment and Technology Commission. The commission supports the budget, but expressed areas of concern in the long -run and was interested in looking at ways to cut costs or raise revenues. DISCUSSION: Mayor Pro Tem Moreno reported the Chair of the Commission addressed Council last year and referenced his request to staff for a report on what Commissions and Boards do and the role they play in advising Council. He noted the Commission's prior recommendations and asked if there was anything in the budget that was changed as a result of their recommendations. Finance Director Moreno reported this budget is the City Manager's recommended budget, so the Commission would not necessarily be making changes to the City Manager's budget but may make suggestions to Council; the items they listed in their letter are items they may wish to explore next year. Council Member Faessel thanked Mayor Pro Tem Moreno for bringing the item forward, noted City finances are very complex, and felt it would take some time for the Commission to understand it, but expected to see something more than the letter presented. MOTION: Mayor Pro Tem Moreno moved to receive and file the Budget, Investment and Technology Commission's recommendation letter dated June 13, 2018 regarding the fiscal year 2018/19 proposed budget, 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. City Council Minutes of June 19, 2018 Page 21 of 38 AGR- 12. Waive the sealed bid requirement of Council Policy 4.0 and approve an agreement with 7240.A Superior Property Services, Inc., in an amount not to exceed $1,685,000 per year, for graffiti removal services for a two-year period beginning in July 2018 with three one-year optional renewals; and authorize the Purchasing Agent to implement and administer the agreement and exercise the renewal options. Deputy City Manager and Building & Planning Director David Belmer presented the report, addressing the importance of curtailing and removing graffiti in the City and how the City went out to bid in 2017 for those services. The City received two proposals, both of which exceeded the City's budget capacity and caused the City to award a one-year extension to the current vendor, while staff reviewed service models to better align with the City's budget capacity, while not compromising the intensity of core services. After much discussion and negotiations, it was decided to continue the contract, as it will provide the best possible service for the best possible price and the best vendor for that is Superior Property Services. DISCUSSION: Council Member Faessel noted increasing costs over the years and expressed concerns with the amount of money it entailed. In response to his inquiry, Community Preservation Manager Sandra Sagert noted two responses to the RFP were received, one of which was the current vendor, Superior. Council Member Faessel asked if Clean City participated in bidding and Ms. Sagert reported they were not qualified as they had to meet specific/contract requirements, including paying prevailing wages. Superior provides a good service to the City and participates in many community projects for seniors and veterans. Council Member Faessel expressed concerns with the increasing contract costs for graffiti removal. MOTION: Council Member Faessel moved to waive the sealed bid requirement of Council Policy 4.0 and approve an agreement with Superior Property Services, Inc., in an amount not to exceed $1,685,000 per year, for graffiti removal services for a two-year period beginning in July 2018 with three one-year optional renewals; and authorize the Purchasing Agent to implement and administer the agreement and exercise the renewal options, 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. 14. Approve the appointment of Jorge Cisneros to the position of Chief of Police subject to AGR- pre-employment processes and approve the associated employment agreement. 11139 Interim City Manager Linda Andal presented the appointment of Jorge Cisneros to the position of Chief of Police and addressed his career experience. DISCUSSION: Mayor Tait thanked Ms. Andal for running the evaluation and selection process, thanked Acting Chief Julian Harvey for his service, and welcomed Chief Cisneros to the City. Chief Cisneros thanked the City, the Mayor, Council, and staff for their consideration and looked forward to working with the City of Anaheim fighting crime through prevention, intervention, and enforcement and building confidence in the Department. He commented on his experience in law enforcement and working in the community. Council Member Faessel noted there have been residents, during the last several months, who have been critical of the process and commended Ms. Andal for the fair and professional evaluation and selection process and welcomed Chief Cisneros on board. Council Member Murray wished Chief Cisneros the best and noted she was not supportive of conducting a search for a new Chief while the City conducted a search for a City Manager, City Council Minutes of June 19, 2018 Page 22 of 38 adding that person should have a role in the process. She added that was not a reflection on Chief Cisneros as an applicant, but rather she believed a City Manager should have been hired first, for the sake of the Department and the position. She reported she would vote no in opposition to the process and not specifically in opposition to Chief Cisneros. She thanked Acting Chief Julian Harvey, who has served honorably for decades and wished him well. Mayor Pro Tem Moreno thanked Acting Chief Harvey and his staff for the excellent work including his support in navigating the Civilian Oversight Board, and the Police Department for its patience. He congratulated Chief Cisneros and reported he is excited to work with him in the future and commented positively on his diverse experience. Council Member Kring expressed her best wishes and agreed with Council Member Murray that the City should have waited to choose a Police Chief until after the hiring of a City Manager and reported there was a lot of community support for hiring Acting Chief Harvey. Council Member Vanderbilt commented positively on the work of Chief Harvey and noted there are many YouTube videos on Chief Cisneros. Council Member Barnes welcomed Chief Cisneros to Anaheim and thanked Interim City Manager Andal and Acting Chief Harvey for their help and service. MOTION: Mayor Tait moved to approve the appointment of Jorge Cisneros to the position of Chief of Police subject to pre-employment processes and approve the associated employment agreement, seconded by Council Member Barnes. ROLL CALL VOTE: AYES — 6: (Mayor Tait and Council Members Moreno, Vanderbilt, Barnes, Kring, and Faessel). NOES —1: (Council Member Murray). Motion carried. 15. Approve an agreement with the Savanna Elementary School District to continue providing AGR- Park Ranger patrols of school facilities for a two-year period, beginning July 1, 2018 5576.H through June 30, 2020. DISCUSSION: Council Member Faessel asked to discuss this item with staff and asked whether the City was not already providing the services. Community and Economic Development Director John Woodhead addressed the scope of work in the agreement. MOTION: Council Member Faessel moved to approve an agreement with the Savanna Elementary School District to continue providing Park Ranger patrols of school facilities for two- year period, beginning July 1, 2018 through June 30, 2020, seconded by Mayor Pro Tem Moreno. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried. 22. Approve and authorize the City Manager, or designee, to execute a Memorandum of Understanding and License Agreement, in substantial form, by and between the City of AGR- Anaheim and the Successor Agency to the Redevelopment Agency, in the amount of 11138 $1.00 annually, for office and program space on the first floor of 290 S. Anaheim Boulevard for the Chrysalis Employment Program for a two year term with an option to renew for two additional one-year terms and provide back -stop funding, only as necessary, in an amount not to exceed $100,000 annually. City Council Minutes of June 19, 2018 Page 23 of 38 DISCUSSION: Council Member Murray reported she pulled this item because there has been discussion about the City doing things for $1 per year with non -profits and stressed there are very important programs where the City has a history and precedent of partnering with other organizations. She expressed her support of Chrysalis and thanked staff for their excellent work on this matter. MOTION: Council Member Murray moved to approve and authorize the City Manager, or designee, to execute a Memorandum of Understanding and License Agreement, in substantial form, by and between the City of Anaheim and the Successor Agency to the Redevelopment Agency, in the amount of $1.00 annually, for office and program space on the first floor of 290 S. Anaheim Boulevard for the Chrysalis Employment Program for a two year term with an option to renew for two additional one-year terms and provide back -stop funding, only as necessary, in an amount not to exceed $100,000 annually, 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. 28. Consider the request by Access California Services to lease a defined site and construct a D150 new building at Brookhurst Park and direct staff to negotiate terms of a lease agreement with Access California Services. Director of Community Services Larry Pasco presented the staff report, stating that Access California Services (AssessCal) is a California non-profit corporation dedicated to help with health, linguistic, economic, and community integration of underserved, low-income, immigrant, and refugee populations. The organization has been based in Anaheim since it was formed in 1998. AccessCal has steadily increased the services it has provided to the community and they currently lease building space in west Anaheim for their operation. However, they have outgrown their current space and seek to construct a facility of their own. The Community Services Department has been in discussions with AccessCal regarding the possibility of granting AccessCal a lease agreement of city -owned land for the organization to construct a building capable of housing its operation. Through the discussions, a portion of land located on city property adjacent to the Brookhurst Community Center has been identified as a desirable site. The site is approximately 0.7 acres in size and located on the northeast corner of Crescent Avenue and Ventura Street at Brookhurst Park. AccessCal proposes to construct a two-story building of approximately 25,000 square feet in size and feature such amenities as classrooms, a computer lab, adult and child daycare rooms, a youth recreation room, a medical clinic room, private case management rooms, and a cafeteria. In fall 2016, approximately 100 residents attended a community meeting at the Brookhurst Community Center to provide interested residents, particularly those who reside in the area immediately adjacent to the park, an opportunity to provide their opinion of the proposed facility. During the meeting, several concerns were raised from the community, including the negative effect of losing existing park space and the increased traffic and parking requirements that could impact the park and adjacent neighborhood. Since the meeting, AccessCal leaders have had discussions with city staff in various departments regarding the concerns expressed by the community. Over the past months, AccessCal has agreed to many of the recommendations of the community with regard to design and functionality of the proposed space. On March 8, 2018, the Parks and Recreation Commission was presented a report on Access California Services and was asked to consider the request to lease a defined site and construct a new building at Brookhurst Park. The Commissioners discussed the issue and asked questions of city staff and AccessCal. The commission voted to not support the project with a vote of two in favor, four against, and one abstention. Under the terms of a potential agreement between the City and AccessCal, AccessCal will bear the responsibility for obtaining all permits and the costs for the design, construction, maintenance, and operational expenses of the facility once constructed. In addition, City Council Minutes of June 19, 2018 Page 24 of 38 under the terms of such an agreement, the City would have joint use of a portion of the new facility, including the use of a multi-purpose room when scheduling allows, for community use at no cost. The term of the potential agreement could be for 35 years with an option to extend the lease for another 20 -year term. The annual rent for the property would be $1.00 per year, which is an accepted standard rental rate charged by governmental agencies to partners who provide a service to residents by use of the leased land. Additionally, under the terms of a potential agreement, the improvements constructed would become the property of the City at the termination of the lease DISCUSSION: Council Member Murray commented positively on Access California and the services they provide and mentioned major objections she has heard including limited park space and that the City should not enter into agreements for $1 per year. She noted the City does this with many other partners in the community to bring quality programs into the City. In terms of park space, there was an opening today of the Ponderosa facility; Manzanita is using critical green space for the Boys and Girls Club; and there are other nonprofits similarly partnering with the City. She believed this warranted a full hearing and public discussion, and therefore, brought this matter forward. Mayor Tait commented positively on Access California and on the wonderful work they do. He agreed with Council Member Murray's comments and expressed support for the item. He voiced concerns about taking up existing park space. Council Member Barnes commented on her agenda to improve City parks and have more and improved park space for residents. In District 1, the need for park space and services has been ignored by the City for too long. She reported she, along with Council Members Faessel and Vanderbilt, worked for over a year on the Planning for Parks Subcommittee. The plan was adopted recently, and she expressed appreciation for that as parks is not a budgeted priority for the City. She commended the work Access California does and has been working to identify properties that would be suitable. However, she opposed the plan to lease park space to them for $1 per year, noting the need to provide more park space (2.5 to 3 acres of park space per 1,000 residents). She opined this plan would only set the City back. Access California provides many needed services, but they cannot be used by all Anaheim residents. She reported the Parks Commission voted 4 to 2 to deny the plan and Council has not heard any new information to cause it to overturn the Commission's position. She stated she would like to move forward, directing staff to look for other space like it did with Creative Identity and other non -profits making similar requests. Council Member Faessel referenced the Parks Plan and noted the number one item voted on by community members was more park space. He commended Access California and their services but stated he as not comfortable with leasing them park space. He reported he will continue to support Access California and would be happy to work with colleagues and staff to find them a suitable location for their expansion. Mayor Tait stated AccessCal would dovetail well into an affordable housing development and agreed with Council Members Barnes and Faessel about the need for more park space. He stated he could not support the item at this time, but will continue to work to seek other feasible options or sites for their operation in partnership with the Community & Economic Development Department. Council Member Faessel noted there is a significant time constraint on this item and wondered if there is anything the City can do, immediately, until an adequate facility is found. City Council Minutes of June 19, 2018 Page 25 of 38 Mayor Pro Tem Moreno noted he was torn between the need for more park space and the need to provide more facilities for services to young people and their families. He agreed with Council Member Murray that there should be no opposition to this based on the $1 per year lease agreement. He mentioned other non -profits with similar agreements and asked whether the City could terminate those agreements if the need for park space increased. Mr. Pasco addressed differences in the terms of some of the agreements and reported the City can make agreements what it wants them to be and can engage in negotiations as directed by Council. Mayor Pro Tem Moreno indicated he was opposed to this project from the beginning, as he would not support taking away an acre of park land. He asked if it was usable space where the City could create more active parks and asked about the long-term vision for the expansion. Mr. Pasco reported staff has not discussed expanding upwards, but rather expanding out. There was a proposal to expand back and discussed about potential for a teen center. Mayor Pro Tem Moreno noted the City was looking to build family resource centers at Twila Reid and Maxwell Parks, which will also take up park space, and commented about the need to protect park space. He questioned whether the City has exhausted every opportunity to look at other options/sites. He proposed to ask staff to seek other options and return to City Council with a report. He would support Access California using the proposed space, only if no other option can be found and it would mean losing their services. Council Member Murray reported Access California has had other space, but they are not conducive to the Day Care Center and the children's services they provide. She believed locating them in a park was a good fit. MOTION: Council Member Murray moved to approve the request by Access California Services to lease a defined site and construct a new building at Brookhurst Park and direct staff to negotiate terms of a lease agreement with Access California Services, seconded by Council Member Vanderbilt. Council Member Barnes reiterated her opposition to the item and noted she was trying to represent her District and do the right thing. Council Member Kring commented positively on the operation and services provided by Access California and listed potential locations for consideration. Mayor Pro Tem Moreno asked if Council Member Murray would consider withdrawing the motion and instead directing staff to seek other sites and options. Council Member Murray understood AccessCal has worked with City staff to look at other sites and asked an AccessCal representative to the podium. Nahla Kayali stated Access California was willing to work with the City to find a more -suitable location in west Anaheim. Council Member Murray withdrew the motion. MOTION: Council Member Murray moved to direct staff to seek other feasible options/sites and return to Council within 45 days with report, seconded by Council Member Vanderbilt. ROLL City Council Minutes of June 19, 2018 Page 26 of 38 CALL VOTE: ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried. 29. Discuss status report on local options that may be used to increase the supply of D155 affordable housing in the City; and provide direction to staff on Councils desire, if any, in pursuing additional actions, including the potential adoption of a policy statement or inclusionary housing ordinance aimed at addressing the City's affordable housing needs. DISCUSSION: Mayor Pro Tem Moreno referenced previous discussions on this topic and felt some of the neighboring cities, like Tustin, did a nice compromise in dealing with the subject. He felt if developers ask for something in the City, the City needs affordable housing for extremely - low and low-income people and should be able to ask for a percentage of the housing to meet the City's need or pay an in -lieu fee. Mayor Pro Tem Moreno displayed a PowerPoint presentation addressing income and housing in Anaheim, 2016 Households by Income, 2010-2014 American Community Services Demographics Household Income by City District, and Housing Statistics per District. He added the city of Tustin included an automatic review of their policy and commented on other cities that have an imposed mandatory inclusionary housing with little effect on development. Council Member Faessel asked about the effect if the City were to replicate what the city of Tustin did. Acting Deputy City Manager and Planning and Building Director David Belmer noted most projects do not require a General Plan amendment or a zone change, but those that do, involve older sections of the community, where there has been a change in land use. Council Member Faessel would like to know what the effect has been in Tustin before deciding on this item. Mr. Belmer addressed options for Council on this matter, including direction to staff. Council Member Kring stated she would never support inclusionary housing or anything that was mandated. Council Member Murray addressed other options discussed previously without including inclusionary housing. She noted she would not support inclusionary housing. Mayor Tait asked staff to return with conceptual options to be discussed at a future meeting. MOTION: Mayor Pro Tem Moreno moved to direct staff to work on a policy/ordinance including exploring a mandatory inclusionary housing when developers request something from the City with an automatic review in two years in addition to incentives, seconded by Mayor Tait. ROLL CALL VOTE: AYES - 3: (Mayor Tait and Council Members Moreno and Barnes). NOES - 4: (Council Members Murray, Vanderbilt, Kring, and Faessel). Motion failed. MOTION: Council Member Kring moved to continue this item to a future meeting, seconded by Council Member Murray. 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 June 19, 2018 Page 27 of 38 30. Initiative Petition for the adoption of an ordinance that would increase the minimum wage payable by hospitality industry employers located in the Anaheim Resort or Disneyland E127 Resort Specific Zones that have tax rebate agreements with the City and would require that service charges imposed by such employers be paid entirely to employees. RESOLUTION NO. 2018-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, accepting the certification of the Orange County Registrar of Voters as to the verification of signatures of the Initiative Petition entitled "An Initiative Measure to Increase the Minimum Wage Payable by Certain Larger Hospitality Industry Employers Located within the Anaheim Resort or Disneyland Resort that have Tax Rebate Agreements with the City, and to Require that Service Charges Imposed by such Employers be Paid Directly to Employees". Approve an increase to the City Clerk's fiscal year 17/18 budget by $55,216 to cover the cost of certification of the initiative petition by the Orange County Registrar of Voters. Upon acceptance of the certification of the Orange County Registrar of Voters as to the verification of signatures of the minimum wage initiative; and in accordance with the requirements of Section 1303 of the City Charter and Section 9215 of the California Elections Code, approval of one of the courses of action: A. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM, CALIFORNIA adopting an Initiative Measure increasing the minimum wage payable by hospitality industry employers located in the Anaheim or Disneyland Resort Specific Plan zones that have tax rebate agreements with the City, and requiring that service charges imposed by such employers be paid entirely to employees, pursuant to the provisions of Section 1303 of the Anaheim City Charter and Section 9215 of the elections code of the State of California. •u B. RESOLUTION NO. 2018-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a general municipal election to be held on Tuesday, November 6, 2018 and ordering the submission to the qualified electors of the City of Anaheim an Initiative Measure increasing the minimum wage payable by hospitality industry employers located in the Anaheim or Disneyland Resort Specific Plan zones that have tax rebate agreements with the City, and requiring that service charges imposed by such employers be paid entirely to employees. In the event the City Council adopts Resolution B above, it is recommended that the City Council also adopt the following Resolution: RESOLUTION NO. 2018-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, requesting the Board of Supervisors of the County of Orange to consolidate a General Municipal Election to be held on November 6, 2018, with the Statewide General election to be held on that date pursuant to Sections 10403 and 10418 of the Elections Code. City Council Minutes of June 19, 2018 Page 28 of 38 OR C. Order a report on the effect of the proposed initiative measure pursuant to Section 9212 of the Elections Code to be presented to the City Council no later than July 17, 2018. City Attorney Robert Fabela presented the report stating that on June 14 the Registrar of Voters notified the City Clerk that the initiative petition had the requisite number of signatures to qualify for the ballot and certified the results. As result of the certification, the City Council must take one of the following actions: (i) adopt the initiative without alteration; (ii) order the submission of the initiative without alteration to the voters at the next regular election on November 6, 2018; or (iii) order a fiscal impact report to be presented to the City Council at the next meeting of July 19, 2018. MOTION: Mayor Tait moved to adopt RESOLUTION NO. 2018-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a general municipal election to be held on Tuesday, November 6, 2018 and ordering the submission to the qualified electors of the City of Anaheim an Initiative Measure increasing the minimum wage payable by hospitality industry employers located in the Anaheim or Disneyland Resort Specific Plan zones that have tax rebate agreements with the City, and requiring that service charges imposed by such employers be paid entirely to employees, seconded by Mayor Pro Tem Moreno. AMENDED MOTION: Council Member Kring moved to order a report on the effect of the proposed initiative measure pursuant to Section 9212 of the Elections Code to be presented to the City Council no later than July 17, 2018. Motion died for lack of a second. DISCUSSION: In response to Council Member Murray's inquiry, Mayor Tait restated his motion. Mr. Fabela explained, per Elections Code Section 9212, the decision to request a report must occur before either action (A or B) was made. Council Member Murray believed Council should discuss the option of conducting an economic analysis to learn the possible effects of the initiative to the City, its businesses, and residents. Mayor Tait noted whether an economic study was done, the matter would still be sent to the voters. He opined a study would be a waste of money and the item should not be delayed by requesting one. Council Member Faessel felt this has potential economic consequences, one way or another, and agreed sending the matter to a vote of the people but would like to see a financial impact report. He stated he would not support the present motion on the table. Council Member Barnes felt the people have spoken, after much discussion and study, and noted an economic study would take months to complete. Council Member Vanderbilt asked whether the City was obligated to conduct an economic analysis and whether it would be part of the sample ballot. Mr. Fabela stated there was no mechanism for making it part of the ballot. An economic study would be made public and subject to discussion before Council makes its decision to adopt the initiative or send it to the voters. It would be an education tool for Council to consider whether to approve the initiative or send it to the voters. Interim City Manager Linda Andal stated a fiscal analysis report was not outlined in the Election Code but indicated Council could direct an impartial analysis to be included in the Sample Ballot City Council Minutes of June 19, 2018 Page 29 of 38 as well as arguments for and against the measure. That would also be an additional cost to the City. Acting City Clerk Theresa Bass reported the estimated cost is $8,500 for adding a measure onto the ballot. Ms. Andal reported adding the fiscal impact report would be another $8,500 as it is not generally included in a Sample Ballot. Mr. Fabela added the reports were supposed to be unbiased. The impartial analysis would be an interpretive device and not necessarily an impact report. He added conducting the report itself was estimated to be $30,000. Mayor Tait stressed Council's job was to put the measure on the ballot and stated a fiscal impact report was not needed to place the measure on the ballot. The other option of approving the ordinance outright was not right, in his opinion, as that is not what the people asked. Acting Assistant City Manager Greg Garcia addressed what would likely be included in a fiscal impact report. He noted extreme time limitations to get a report and within time to place the measure on the ballot and opined there as no way to get a robust and comprehensive report in time. Mayor Tait feared the City would get an inaccurate or rushed report or a wrong report, which were worse than no report. Council Member Kring noted there were many people who have indicated they want a fiscal impact report and felt the City owed it to them to do one. She feared if it passed, there was a possibility that three major hotel projects will never be completed and there was a risk for the loss of 3,000 jobs. Council Member Murray could not understand why Council would not want to do a fiscal impact study to inform residents of the economic impacts of the measure. She believed the City Manager would have to arbitrate in the future for any employee who wants the fee, and if they are not accommodated, they have the right to sue independently or as part of a class action suit. She wondered if Anaheim would be a party to every potential litigation thereafter and opined this was broadly written, vague, and with little definition. She expressed concerns with limiting information and discussion, deception, and reported it was sold as a measure to make Disney pay its fair share, when it will affect small businesses on a far greater scale than Disney or any other hotelier that would receive City subsidies. There is no understanding how this will affect thousands of businesses in the City and she spoke in support of a study, noting she wants residents to be informed and armed with the data. In reply to Council Member Vanderbilt's question, Mr. Garcia reported the City was limited, based on the Elections Code, and other jurisdictions have been in similar situations. Some have chosen to conduct studies months in advance, before qualification, but per the Elections Code, there were only thirty days from the time the Elections official qualifies it for the ballot. He felt the consultant will not provide a wrong report but will provide one that was high-level. Mayor Pro Tem Moreno noted this was agendized early and there was a robust debate, yet Council Member Murray voted against the study asking, instead, to wait for the certification of signatures. He opined a study or economic analysis cannot be done in thirty days. It seems most people who spoke in opposition cite data that there will be a loss of 3,000 jobs, so they have City Council Minutes of June 19, 2018 Page 30 of 38 already made their decisions. He believed there will be two campaigns, one for and one against, and both groups will do their own analysis and be well-informed. Mayor Tait called for a recess at 11:33 P.M. and reconvened the meeting at 11:35 P.M. with all Council Members present. MOTION: Mayor Tait moved to adopt RESOLUTION NO. 2018-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, accepting the certification of the Orange County Registrar of Voters as to the verification of signatures of the Initiative Petition entitled "An Initiative Measure to Increase the Minimum Wage Payable by Certain Larger Hospitality Industry Employers Located within the Anaheim Resort or Disneyland Resort that have Tax Rebate Agreements with the City, and to Require that Service Charges Imposed by such Employers be Paid Directly to Employees" and approve an increase to the City Clerk's fiscal year 17/18 budget by $55,216 to cover the cost of certification of the initiative petition by the Orange County Registrar of Voters, seconded by Mayor Pro Tem Moreno. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members Moreno, Vanderbilt, Barnes, and Faessel). NOES — 2: (Council Members Murray and Kring). Motion carried. MOTION: Mayor Tait moved to adopt RESOLUTION NO. 2018-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, calling and giving notice of the holding of a general municipal election to be held on Tuesday, November 6, 2018 and ordering the submission to the qualified electors of the City of Anaheim an Initiative Measure increasing the minimum wage payable by hospitality industry employers located in the Anaheim or Disneyland Resort Specific Plan zones that have tax rebate agreements with the City, and requiring that service charges imposed by such employers be paid entirely to employees, seconded by Mayor Pro Tem Moreno. ROLL CALL VOTE: AYES — 4: (Mayor Tait and Council Members Moreno, Vanderbilt, and Barnes). NOES — 3: (Council Members Murray, Kring, and Faessel). Motion carried. MOTION: Mayor Tait moved to adopt RESOLUTION NO. 2018-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, requesting the Board of Supervisors of the County of Orange to consolidate a General Municipal Election to be held on November 6, 2018, with the Statewide General election to be held on that date pursuant to Sections 10403 and 10418 of the Elections Code, seconded by Mayor Pro Tem Moreno. ROLL CALL VOTE: AYES — 5: (Mayor Tait and Council Members Moreno, Vanderbilt, Barnes and Faessel). NOES — 2: (Council Members Murray and Kring). Motion carried. PUBLIC HEARING: 31. Public hearing on the Fiscal Year 2018/19 budget, budget appropriations limits for the City D106 and its Community Facilities Districts, and changes in various fee schedules. A. RESOLUTION NO. 2018-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the fiscal year 2018/19 budget. B. RESOLUTION NO. 2018-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the annual appropriations limit for the fiscal year 2018/19. City Council Minutes of June 19, 2018 Page 31 of 38 RESOLUTION NO. 2018-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 06-2 (Stadium Lofts) annual appropriations limit for the fiscal year 2018/19. RESOLUTION NO. 2018-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 08-1 (Platinum Triangle) annual appropriations limit for the fiscal year 2018/19. C. ORDINANCE NO. (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 17.08 (Subdivisions), Chapter 17.34 (Development Fees) and Chapter 17.36 (Public Safety Facilities and Vehicle Equipment Impact Fees) of Title 17 (Land Development and Resources) of the Anaheim Municipal Code and finding and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), 15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment because there is no possibility that it may have a significant effect on the environment and because it is not a project as defined in Section 15378 of the CEQA. Ordinance continued to a future date. RESOLUTION NO. 2018-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a new schedule of fees, charges and rates for building, construction, and National Pollutant Discharge Elimination System (NPDES) permits, services and activities. RESOLUTION NO. 2018-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a schedule of fees for services rendered by the Office of the City Clerk. RESOLUTION NO. 2018-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fees charged for Community Services Department programs and services. RESOLUTION NO. 2018-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing life safety division fees to be charged by the Fire and Rescue Department of the City of Anaheim and rescinding Resolution No. 2013-122. RESOLUTION NO. 2018-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing paramedic fees to be charged by the Fire and Rescue Department of the City of Anaheim and rescinding Resolution No. 2009-116. City Council Minutes of June 19, 2018 Page 32 of 38 RESOLUTION NO. 2018-079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending and restating fee and rate schedules for planning, zoning and environmental petitions, applications, permits, approvals, appeals and inspections. RESOLUTION NO. 2018-080 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending fees to be charged for certain services provided by the Anaheim Police Department. RESOLUTION NO. 2018-081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a schedule of fines for false alarms pursuant to Section 4.95.120 of Title 4 of the Anaheim Municipal Code. RESOLUTION NO. 2018-082 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting new fee schedule for the Public Works Department of the City of Anaheim. RESOLUTION NO. 2018-083 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting the recommendation of the Library Board of the Anaheim Public Library to establish and /or increase fines and fees. RESOLUTION NO. 2018-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a schedule of fees for citywide copy services. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Public Safety Facilities and Vehicle and Equipment Impact Fees. Resolution continued to a future date. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the amount of the Park -In -Lieu Fee and rescinding Resolution No. 2011-085 and Resolution No. 2011-086. Resolution continued to a future date. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the fee schedule for the Community Services Department, Library Division of the City of Anaheim. Resolution continued to a future date. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the fee schedule for the Department of Public Works of the City of Anaheim related to Impact Fees. Resolution continued to a future date. City Council Minutes of June 19, 2018 Page 33 of 38 D. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the schedule of rates, fees and charges for rental of space, parking and for certain labor, equipment and services at the Anaheim Convention Center effective July 1, 2018. Resolution continued to July 17, 2018. E. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a revised schedule of permit parking fees and rescinding Resolution No. 2016-011 and determining such actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), 15060(c)(3) and 15061(B)(3) of the State of California Guidelines for implementation of CEQA (Anaheim Municipal Code Section 14.32.450). Resolution continued to July 17, 2018. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 93R-153 to add civil penalties for violations of Section 14.32.206 of the Anaheim Municipal Code (Parking of Oversized Vehicles -Restricted). Resolution continued to July 17, 2018. Determine that the above actions are not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), 15060(c)(3) and 15061(B)(3) of the State of California Guidelines for implementation of CEQA. F. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting a revised schedule of sanitation fees and charges for wastewater and solid waste and rescinding Resolution No. 2017-108 and determining such actions are exempt from the California Environmental Quality Act pursuant to Public Resources Code Section 21080(b)(8) and Guideline Section 15273(a). Resolution continued to July 17, 2018. Interim City Manager Linda Andal introduced the item and addressed prior budget workshops and user and developer impact fees and adjustments. She deferred to Finance Director/City Treasurer Debbi Moreno for a report. Ms. Moreno presented an overview of the FY 2018/19 Proposed Budget and addressed citywide uses by Department, by Funds, General Fund Five -Year Forecast, Annual Appropriation Limits, Proposed Fee Changes, and Action Items. DISCUSSION: In reply to Council Member Faessel's question regarding fees and their impact on Shopoff, Ms. Moreno reported the goal in this process was to simplify it and ensure that everyone had a level playing field. Therefore, staff consolidated land uses and applied fees citywide. If a developer is building outside the Platinum Triangle, he/she would likely see fee increases because there are new fees that were not being charged previously. The biggest component would be the park fee and that was done based on the maximum fee in the Platinum Triangle, which will now be applied citywide. The City's park fee is in the middle, compared to other Orange County cities, and considers the City's need for more park space. The City is proposing to take a leap and simplify calculations to increase the revenues available for anticipated needs. City Council Minutes of June 19, 2018 Page 34 of 38 It has been a long time since the City made any adjustments and although they are a big step, they will not be in the future. Council Member Faessel noted Anaheim's park fees are in the 30th percentile in the region and the proposed changes will put them at mid-level. Mayor Tait stated Council Member Faessel's reference to Shopoff makes him uncomfortable, as they are a client of his. He asked him to delay comments regarding the firm until later, when the Mayor will recuse himself. He asked colleagues to limit their initial discussions to Items A. and B. Mayor Pro Tem Moreno expressed concerns with staffing and feared the City will lose good employees and asked if there was anywhere in the budget where staffing was being increased. Finance Director/City Treasurer Moreno stated there was nothing significant in terms of staffing increases. Mayor Pro Tem Moreno asked whether there was an opportunity in the budget where the City could implement some staffing recommendations that were made in the Parks Plan. Finance Director/City Treasurer Moreno responded there were not, without making cuts in other areas or having a budget that was out of balance. She added there were some proposed user fees that could possibly be used to address some of those issues. Mayor Pro Tem Moreno stated he has made the request and felt it would be up to staff to present what items can be cut to address it. Finance Director/City Treasurer Moreno reported if Council wanted to make cuts for significant changes in one Department, other Departments would be decimated. He asked that at the mid -budget review, staff present options of where Council can start looking, within the budget, to add staffing. Ms. Andal noted staff has increased the number of budget workshops and in terms of process, in future years, his request could be addressed. In terms of this budget, there was an expectation to approve a balanced budget this fiscal year; staff has made projections and adjustments to continue to maintain balance while funding pension liabilities as well. She agreed, going forward, additional discussions can occur, and staff can look at the process and consider possibly reorganizing rather than making cuts and have Council be more involved in the process. However, staff is very limited in the budget this fiscal year. Mayor Pro Tem Moreno opined what was missing was the deliberative process. Ms. Andal agreed to look at the process and ensure there was more deliberation, going forward, but adding staff at this point would increase the City's liability. Council Member Murray referenced the five-year forecast and asked whether the proposed fees were included, and Finance Director/City Treasurer Moreno stated they were not and reported fees would be added after adoption of the budget. She reported the user fees, as proposed, would generate approximately $1 million the first year. Council Member Kring stated she will support the budget but asked if there were any Department Heads who complained they do not have enough staff. Finance Director/City Treasurer Moreno reported there are not. She wondered what kind of staffing was needed if -there were no complaints. Ms. Andal reported staff was doing a lot more and a full-time position was added at Ponderosa. The City is also spending resources on homelessness and staff is spread a little thin because they are doing more. She felt every organization always needs more staff, but the City is working with what it has. Council Member Faessel commented on the need for more staffing in parks for security, safety, and timelier repairs, and voiced his support. He noted there was no money to make changes but City Council Minutes of June 19, 2018 Page 35 of 38 would like to take another look at park staffing in the future. He voiced his support for the budget but expressed disappointment that the City cannot do some things Council and the community feel are important. Council Member Murray noted it was important not to wait until the budget adoption but to work with staff in advance. She reported park maintenance is a high priority and suggested Council colleagues start working with them now rather than later. In reply to Mayor Pro Tem Moreno's question, Finance Director/City Treasurer Moreno reported the projected four-star hotels were included as part of the projections. Mayor Pro Tem Moreno noted you cannot have it both ways; those hotels are not built and they may not be built. Council Member Kring reported the four-star hotels were included because they were in the planning stages and noted the need for them; but to date, nothing has been given away. Mayor Tait opened the public hearing. Mayor Tait declared a potential conflict and left the Chambers at 12:29 A.M. on June 20, 2018. Adam Wood, BIA/OC, referenced development impact fees, noting they do not conform to the standard of "an increase of at most 15V noting housing impact fees will increase dramatically and opined it represented 100% increase. He urged Council not to increase housing production costs by millions of dollars, as proposed. He added many cities do not charge public service fees such as for Police and Fire services. He asserted Council's vote directly influences the affordability situation within the City and asked that Council not approve the impact fees but give the matter more consideration. James O'Malley, Shopoff Investments, reported the overall design of their project was for obtainable housing and expressed concerns with fee increases. He opined increases were not 15%, but rather 78% for the apartment component of their project and 56% for the for -sale component. He noted that increases in development fees go right to the consumer and asked Council to consider that. He distributed copies of a document for Council's review. Mayor Pro Tem Moreno asked whether cities can charge any fees. Mr. O'Malley reported they agreed to a fee schedule that coordinates with the size of units and the number of units. There is an expanded fee schedule that is being advertised as a 15% increase and urged Council to understand that any increases go to the consumer. Mayor Pro Tem Moreno indicated whenever there is discussion about fee increases developers are opposed but do not offer suggestions or solutions. Adam Wood, BIA/OC, referenced an article stating 32% of a home's cost, nationwide, goes to development fees. He reported it is his job to try to streamline things as much as possible and opined when someone is paying for a house, they should be paying for a house, and not the process. Bryan Kaye distributed copies of his comments and commented on a volunteer graffiti cleanup that changed the culture of the area. He stated Mayor Pro Tem Moreno speaks about making Anaheim safer, but wondered how that is done by ignoring Police reports, like the one he just submitted. He alleged an Anaheim Police Officer set off pipe bombs around the City, stalked his family, and sent him over 700 hate messages. He stated reports and complaints must be addressed immediately and commented on things his mother taught him. He alleged the Police City Council Minutes of June 19, 2018 Page 36 of 38 are violating the law and use forged documents. He added these are expensive to the City's budget. Ryan Balius commented on potential increases in park in -lieu fees and felt the City should not be in the business of subsidizing private development. He suggested the City consider applying the park in -lieu fees in commercial developments as well, as employees and patrons of commercial developments benefit from open space and parks and take away from potential acreage that could be available for future park locations. Additionally, he believed the proposed increases do not come close to what the City needs to recover its costs and asked Council to consider raising fees to market rates with provisions for future CGI increases and reallocate private subsidies for the good of Anaheim residents. Grant Henninger opined the budget does not seem detailed enough and suggested a more - detailed budget in future years. Mayor Pro Tern Moreno closed the public hearing. Mayor Tait returned to the Chambers and took his place on the dais at 12:59 A.M. on June 20, 2018. MOTION: Council Member Kring moved to adopt RESOLUTION NO, 2018-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the fiscal year 2018/19 budget; RESOLUTION NO. 2018-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the annual appropriations limit for the fiscal year 2018/19; RESOLUTION NO. 2018-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 06-2 (Stadium Lofts) annual appropriations limit for the fiscal year 2018/19; and, RESOLUTION NO. 2018-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the Community Facilities District No. 08-1 (Platinum Triangle) annual appropriations limit for the fiscal year 2018/19, 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. Mayor Tait declared a potential conflict on Item No. 31.0 and left the Chambers at 1:01 A. M. on June 20, 2018, MOTION: Council Member Kring moved to continue the impact fees to a future date which include the ordinance and the last four resolutions of Item 31.C, seconded by Council Member Faessel. ROLL CALL VOTE: AYES — 4: (Council Members Vanderbilt, Barnes, Kring, and Faessel). NOES — 1: (Council Member Murray). ABSTENTION — 2: (Mayor Tait - declared a conflict, and Mayor Pro Tem Moreno). Motion carried. At the suggestion of Ms. Andal, Council discussed removing Items 31.D, 31.E, and 31.F to a future agenda. In response to Mayor Pro Tem Moreno's question regarding bringing the items back to a future meeting, Ms. Andal requested bringing them back at a later date, when staff was prepared. Discussion followed regarding the need for additional discussions regarding fees and for additional stakeholder input. City Council Minutes of June 19, 2018 Page 37 of 38 MOTION: Council Member Kring moved to approve Items No. 31.D, 31.E and 31.F, seconded by Council Member Faessel. ROLL CALL VOTE: AYES — 3: (Council Members Barnes, Kring, and Faessel). NOES — 1: (Council Member Murray). ABSTAIN — 3: (Mayor Tait - declared a conflict, and Council Members Moreno and Vanderbilt). Motion failed due to tie vote. Items No. 31.D, 31.E and 31.F were continued to the City Council meeting of July 17, 2018. Mayor Tait returned to the dais at 12:59 A.M. on June 20, 2018. PUBLIC HEARING: 32. CEQA MITIGATED NEGATIVE DECLARATION C220 CONDITIONAL USE PERMIT NO. 2017-05927 VARIANCE NO. 2018-05106 (DEV2017-00035) LOCATION: 1601 South Anaheim Boulevard APPLICANT: Rob Mitchell, Greenlaw Partners, LLC, 8301 Von Karman Avenue, Suite 250, Irvine, CA 92612; Walter C. Bowen, BDC/Anaheim, LLC, 1331 NW Lovejoy Street, Portland, OR 97209 REQUEST: A conditional use permit for the approval of a hotel with a greater building height and higher floor area ratio than allowed by the Code, and a variance for fewer trees along the Interstate 5 frontage than required by the Code. The proposed project includes a 12 -story, 326 -room hotel and a four -level parking garage. The hotel would include amenities on the ground level, including a swimming pool, restaurant, meeting space, fitness room, coffee shop, and gift shop. The 12th floor would include a rooftop pool, sun deck, and restaurant and bar. The roof -top restaurant and bar is proposed for hotel guest use only. Environmental Determination: The City Council will consider whether a Mitigated Negative Declaration is the appropriate environmental documentation for this request under the California Environmental Quality Act. ACTION TAKEN BY THE PLANNING COMMISSION: Approved CEQA Mitigated Negative Declaration, Conditional Use Permit No. 2017-05927 (Resolution No. PC2018-025), and Variance No. 2018-05106 (Resolution No. PC2018- 026). Vote: 4-1 (Chairperson Pro -Tempore Lieberman and Commissioners Armstrong, Carbajal and Gillespie voted yes. Commissioner White voted no. Chairperson Dalati and Commissioner Keys were absent.) Motion Carried. (Planning Commission meeting of April 30, 2018) (Appealed by Ada Tamayo and UNITE HERE Local 11). RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM to adopt a Mitigated Negative Declaration for proposed Conditional Use Permit No. 2017-05927 and Variance No. 2018-05106 (DEV2017-00035; 1601 South Anaheim Boulevard) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Conditional Use Permit No. 2017-05927 and Variance No. 2018-05106 and making certain findings in connection therewith (DEV2017-00035; 1601 South Anaheim Boulevard). RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM denying Conditional Use Permit No. 2017-05927 and Variance No. City Council Minutes of June 19, 2018 Page 38 of 38 2018-05106 and making certain findings in connection therewith (DEV2017-00035; 1601 South Anaheim Boulevard). Item No. 32: Public Hearing was withdrawn by the appellant. REPORT ON CLOSED SESSION ACTIONS: None COUNCIL COMMUNICATIONS/AGENDA REQUESTS: Mayor Pro Tem Moreno wished everyone a Happy Fourth of July and announced the summer public swim hours; requested proclamations for Mental Health Awareness Month and Somos Anaheim; announced that there will be a District 3 Community Meeting on Thursday, June 28th at 6:30 P.M. at the Church of Latter Day Saints, 440 North Loera Street where an update to the homelessness situation will be discussed; and wished everyone a Happy Juneteenth, commemorating the Emancipation Proclamation of 1865. Council Member Vanderbilt requested an item be placed on the future agenda for the City Manager to meet with hoteliers that have been impacted by the initiative to discuss another pathway to an alternate measure that does not include language impacting adjacent businesses and removes the role of the City Manager to serve as the arbitrator in the process, as well as includes language pertaining to an increase in minimum wage closer to the Los Angeles hotel arrangement, and have a component that would accept an offer by the hoteliers to create a community benefit fund directed towards addressing homelessness, affordable housing, and neighborhood improvements. Council Member Faessel requested to recognize Peter Bowen for his service at Servite High School; thanked Public Utilities for installing new street lights in various areas of District 5; highlighted the K9 training that occurred in District 5; reported that there will be a District 5 community meeting follow-up posted soon; and mentioned a presentation by Neal Kelley, Orange County Registrar of Voters, where he discussed voter fraud and security. Mayor Tait reported that last week, he attended the United States Conference of Mayors in Boston, MA and was a guest speaker at the Annual CEO Summit and Mayor's College at Yale University. ADJOURNMENT: With no further business before the City Council and without objection, Mayor Tait adjourned the meeting of June 19, 2018 at 1:25 A.M. on June 20, 2018, in memory of Mike Tucker and Marie Lenain. Res pectf y -submitted, resa Bass C C Assistant City Clerk