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10/23/2018ANAHEIM CITY COUNCIL REGULAR MEETING OF OCTOBER 23, 2018 The regular meeting of October 23, 2018 was called to order at 3:07 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on October 19, 2018. PRESENT: Mayor Tom Tait and Council Members Jose F. Moreno, Kris Murray, Denise Barnes, Lucille Kring, and Stephen Faessel. Council Member James Vanderbilt joined during closed session. STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela and City Clerk Linda Andal ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None CLOSED SESSION: At 3:08 P.M., Mayor Tait recessed to closed session for consideration of the following items: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Orange County Catholic Worker, et al., v. Orange County, et al., USDC Court Case No. 18 CV -00155 -DOC (KESx) 2. 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) 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Section 54956.8 of the California Government Code) Property: Assessor Parcel Number: 232-072-06: 2626 E. Katella Ave, Anaheim, CA 92806; Assessor Parcel Number: 253-601-02: 1621 S. Douglass Rd, Anaheim, CA 92806; Assessor Parcel Number: 253-521-16 and 253-521-17: 2695 E. Katella Ave, Anaheim, CA 92806 Agency Negotiator: Chris Zapata, City Manager; Linda Andal, City Clerk; and Tom Morton, Executive Director of Convention, Sports & Entertainment Negotiating Parties: Anaheim Arena Management and City of Anaheim Under Negotiation: Price and Terms of Payment 4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Section 54957 (b) (1) of the California Government Code) Title: City Clerk 5. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Jason Motsick, Acting Human Resources Director Name of Employee Organizations: Anaheim Police Management Association and Anaheim Municipal Employees Association, General and Clerical Units City Council Minutes of October 23, 2018 Page 2 of 22 At 5:29 P.M., Mayor Tait reconvened the Anaheim City Council. INVOCATION: Pastor Greg S. Arbues, Eastside Christian Church FLAG SALUTE: Council Member Denise Barnes PRESENTATIONS: Recognizing Miss Anaheim Beautiful and Court 2018-2019 Mayor Tait recognized Miss Anaheim Beautiful and Court and introduced Community Preservation and Licensing Manager Sandra Sagert, who spoke of the organization which helps participants develop leadership skills by working alongside local organizations, through community service and volunteer opportunities, as well as provides academic scholarships for their service. Recognizing Pete Bowen for 14 years of service as President of Servite High School Mayor Tait thanked Mr. Bowen for his service and provided a brief history of Mr. Bowen's achievements, which included graduating from the University of Notre Dame, serving as an officer in the United States Marine Corps, and obtaining his master's degree from Duke University before his tenure at Servite High School. Mr. Bowen thanked the Mayor and City Council for the special honor. Acceptance of Other Recognitions (To be presented at a later date): Proclaiming October 21-27, 2018, as Childhood Lead Poisoning Prevention Week Jenafer Forester, Orange County Health Care Agency, thanked City Council for their support in promoting lead poisoning awareness and advised that lead poisoning was still prevalent in the area and that homes built prior to 1978 still have lead poisoning issues. Proclaiming November 1, 2018, as Extra Mile Day Proclaiming November 5, 2018, as Complex Regional Pain Syndrome Awareness Day ADDITIONS/DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS (all agenda items): Prior to receipt of public comments, a brief decorum statement was provided by City Clerk Linda Andal. Cecil Jordan Corken, Outreach Homeless Ministries, reported on his outreach efforts and his opinions on why Disney was cancelling the building of Disneyland Hotel. Jim Cain, Chairman of the Anaheim Hills Community Council, addressed Anaheim's business climate and spoke about Disney's announcement to its new hotel in Orlando, feeling that was taking jobs away from Anaheim. Mr. Cain also spoke in opposition to Measure M. City Council Minutes of October 23, 2018 Page 3 of 22 Mayor Tait addressed a connection between the Anaheim Hills Community Council, the Chamber of Commerce, and advocacy for hotel incentives. Mayor Tait advised that 16 hotels have been constructed or were in construction since 2016 without an incentive or subsidy package. Council Member Murray advised that Anaheim Hills Community Council was comprised of volunteers and were not being paid to make comments. Amelia Castro expressed her opposition to Measure L and stated that the City has witnessed tremendous loss of jobs due to the threat of this measure. R. Joshua Collins, Homeless Advocates for Christ, reported on his outreach efforts, encouraged Council to look into laws that impact the homeless population, and work to protect the property of the homeless. Mr. Collins further spoke of the homelessness activity at Maxwell Park. Lil Forry expressed concerns for the senior parking at the Anaheim Senior Center impacted by the River Arena Church and advised that the parking garage across the street from the Anaheim Senior Center was not a good option as the elevators did not work and they were forced to park on the fourth floor. Peter Warner spoke of the contracted bus drivers for Mercy House and Midnight Mission, advising that they were not stopping at train tracks as mandated and were not properly trained with Class B vehicle licenses and passenger endorsements. Paul Hyek spoke of the Mercy House drivers and their practices and supported the homeless using the Maxwell Park parking lot. Marcia Cook, President of the California Gables Homeowners Association and a resident of the Kroger -Melrose Historical District, spoke of the activity at Next Up and clarified that the issues were not with the organization, but rather with the skate park that operated during the week and weekend without supervision and the criminal issues at this location. Ms. Cook stated that John Machiaverna, Executive Director of the Boys and Girls Club, advised that the skate park was an issue at all hours when they occupied the location and she requested the skate park be relocated. Mayor Pro Tem Moreno clarified that his comments at the last City Council meeting were around the noise and not the criminal element in the area. Steve Holder applauded Council Members Kring and Murray for voting no on the renewal of the Next Up Foundation lease. Mr. Holder spoke of the community outreach meeting and expressed his opposition to the skate park. Bob Prichard, member of the Executive Board of the Anaheim Senior Center, spoke regarding Item No. 13, Parking License Agreement with the River Church USA, and advised that the Anaheim Senior Center opposed the agreement which they believe will impact parking for its participants, especially those who are handicapped. William Fitzgerald, Anaheim Homeowners Maintaining Our Environment, spoke about Measures J and K and urged residents vote no against them. Mr. Fitzgerald further urged residents to vote for his organization's preferred candidates. City Council Minutes of October 23, 2018 Page 4 of 22 Mike Hadley spoke regarding the arrest of his daughter and asked City Council to look into the situation. Caroline Scott spoke about Item No. 13 and was concerned that she was not advised, as part of the local advisory board. Ms. Scott requested that City Council table this item for further review and discussion. Eric Benitez, Business Development & Marketing Administrator, Boys and Girls Club of Anaheim, spoke about their experience at the skate park location at Olive and Broadway and nuisance mitigation steps they were taking at their new location, Manzanita Park, which will include a skate park. Mr. Benitez thanked City Council for the support for the Boys and Girls Club and for their support for their community garden. "The Cameraman" spoke of the Angels lease termination and expressed his opposition to Measures J and K and his support of Measure L. He expressed his support for specific candidates for mayor and City Council. "Time to Stand" advised that he was detained by Sargent Starkey in the past and believed him to be a corrupt officer. He also believed that Anaheim Police Department was issuing false tickets to its residents. Gloria Ma'ae expressed her opposition to Measure L and asked Anaheim residents to vote against it. Charles Harris, Senior Vice President of Marketing at Visit Anaheim, spoke about their marketing tactics and believed that four -diamond hotels were key to their marketing. Mr. Harris believed Measure L diverted the work of tourism professionals in the area and believed that the local economy would suffer if passed. Brenda Vaughan spoke her opposition to the Parking Agreement with River Church and supported the building of a new Senior Center with its own parking facility in the future. Trevor O'Neil, District 6 candidate for Anaheim City Council, expressed his opposition to Measure L and advised that there was ambiguity around the contractors and lessees of these properties. Mr. O'Neil expressed his concern of stalled development in the area and believed that Anaheim was at a crossroads of economic development. Wes Jones expressed his support of Measure L, spoke in opposition of Measures J and K, and urged residents to vote against these measures. Mr. Jones further encouraged residents to vote for non -Disney supported candidates. Ross McCune, Chairman, Anaheim Chamber of Commerce, spoke of their opposition to Measure L and opined that it would eliminate over 3,000 jobs and would make Anaheim non- competitive for business. Vern Nelson spoke about the Anaheim Angels scare tactics for leaving the Anaheim area and believed that they will not be leaving the area. Mike Robbins stated his support of Measure L and believed that politics would overtake this measure. City Council Minutes of October 23, 2018 Page 5 of 22 Jeanine Robbins, homeless advocate, spoke of the candidate forums she had attended, expressed concerns about criticism of the length of City Council meetings, and felt that it did not respect the concerns of the residents. Ms. Robbins urged all District 3 residents to vote for Mayor Pro Tem Moreno in the election. David Duran, homeless advocate, spoke about homeless issues and his concerns around the 200 homeless residents who have died on the streets this year. Bryan Kaye spoke of the progress in public safety. Tim Schindler spoke about the lease termination with the Anaheim Angels and believed that it was time for the City to sever its ties with the Angels organization and allow the private sector to develop it. Daniel Darling, River Church, addressed the Parking Agreement with the City and noted that they have made every effort to accommodate everyone's needs, including those of the Anaheim Senior Center. Tim Paone, Attorney for River Church, spoke of the Parking Agreement and noted they were sensitive to the needs of the Anaheim Senior Center. He further advised that the agreement allowed for a certain section on the ground floor that can be dedicated to the Anaheim Senior Center and they were more than willing to move forward on that basis. Jerome Keith, Anaheim Fire Department, expressed concerns reagarding Fire Chief Randy Bruegman's leadership and stated members were campaigning for the need to improve their EAP for mental health challenges. Mr. Keith requested the Fire Chief voluntarily leave the department as a result of their no -confidence vote. Dr. Patricia Adelekan encouraged all residents to vote as it was their right and responsibility. Cynthia Ward, mayoral candidate, thanked City Attorney Fabela for his response to the Garden Walk property and stated she did not believe that the Disney Hotel would impact tourists staying in Anaheim. She spoke about the Anaheim Angels lease termination and asked City Council to work to ensure that area businesses be safe to develop without entering the political arena. Kenneth Batiste thanked to Mayor Pro Tem Moreno, Council Member Barnes, and Council Member Vanderbilt for their service. Mr. Batiste spoke of Measure L and Disney's influence in obtaining residents' votes. COUNCIL COMMUNICATIONS Council Member Faessel requested the meeting adjourn in memory of fallen Georgia Police Officer, Antwan Toney, and spoke of the Boys and Girls Club community garden at Manzanita Park and the partnership with LT Global. Council Member Barnes announced the Veterans Day Ceremony to be held on November 10 at 11 am at the Anaheim Veterans Monument, highlighted City Net's grand opening of its new west Anaheim office location, congratulated Mayor Tait for receiving the Senior Care Hero Humanitarian Award from SeniorSery as well as Higher Ground Advocate of the Year Award, and announced the next Police Review Board meeting on November 8th at Gordon Hoyt and City Council Minutes of October 23, 2018 Page 6 of 22 encouraged residents to attend. She further spoke of her attendance at OCSD's 65th Anniversary Breakfast meeting highlighting their 5 -Year Strategic Plan (2019-2015) and pension program. Council Member Kring announced the 94th Fall Festival Parade to be held on October 27 at 6pm, the Cops4Kids 2nd Annual Anaheim Confidential Fundraiser on November 2 at 5pm at River Church, and the Veterans Day Ceremony. Council Member Murray congratulated the Honda Center on their 25th Anniversary, highlighted Disney's Aspire program offering front line employees full tuition reimbursement, announced the Halloween Parade and Veterans Day Ceremony, and announced the City Clerk's Office would be hosting, in partnership with the Orange County Registrar's Office, an Early Voting Center from October 27 through November 5 as well as serve as a precinct on Election Day. She further requested the meeting adjourn in memory of fallen Georgia Police Officer, Antwan Toney, and journalist Jamal Khasoggi. Mayor Pro Tem Moreno announced the Fall Festival on Center Street Promenade on October 27, 11am-4pm, and requested an update on the Dearden property located on La Palma and Euclid. Council Vanderblit announced his purchase of a lotto ticket for the City, to be filed with the City Clerk. Mayor Tait thanked SeniorSery and Higher Ground for their recognitions, announced the ribbon cutting of Chrysalis on November 13, and the Veterans Day Ceremony on November 10 at 11 am. CITY MANAGER'S UPDATE: None CONSENT CALENDAR: At 7:44 P.M., Council Member Kring pulled Item Nos. 02 and 13, Mayor Tait pulled Item No. 11, Council Member Murray pulled Item Nos. 03 and 05, Council Member Barnes pulled Item No. 01, and Council Member Faessel pulled Item No. 12 for further discussion. MOTION: Council Member Kring moved to adopt the balance of the consent calendar as presented, in accordance with reports, certifications, and recommendations furnished each city council member and as listed on the consent calendar, seconded by Council Member Faessel. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel) NOES — 0. Motion carried. E127 4. Receive and file supplemental report on Measure L, the Anaheim minimum wage initiative. 6. Approve proclamation recognizing Frankie Hernandez for 35 years of service to the City D116 of Anaheim. 7. Accept the bids of Gall's LLC and GRP2, in a combined not to exceed amount of D180 $247,000 plus applicable tax, to provide uniforms and accessories for the Anaheim Police Department 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 #9192. City Council Minutes of October 23, 2018 Page 7 of 22 8. Accept the bid of Bound Tree Medical, in the amount of $204,703.09 plus applicable tax D180 and a 25% contingency, for the purchase of medical 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 #9191. 9. Accept the bid from Pacific Towing, Inc., in the amount of $66,015 plus a 15% contingency, to provide towing services for City owned vehicles for a one year period with four one-year optional renewals and authorize the Purchasing Agent to exercise the D180 renewal options, in accordance with Bid #9198. 10. Award the contract to the lowest responsible bidder, Excel Paving Company, in the amount of $4,111,793, for the State College Boulevard and La Palma Avenue AGR- Intersection Widening Improvements Project and authorize the Finance Director to 11267 execute the Escrow Agreement. 14. Approve the Final Map and Subdivision Agreement with Bonanni Development/JB Construction IV, LLC for Tract No. 18097, located at 2730 W. Ball Road, for 42 attached AGR- residential units for condominium purposes with public street access and amenities 11269 including two community open space areas with children's play equipment and/or tables with a trellis. 15. Approve the Standard Inter -Agency Instructional Services Agreement with Rancho AGR- Santiago Community College District, in an amount not to exceed $126,000 per fiscal year, for reimbursement for fire service training provided by Anaheim Fire & Rescue 6333.6 personnel, for a five year term with a one year optional renewal. 16. Approve an agreement with Golden West Medical Corporation, in an amount not to exceed $86,264, for physical examinations and related services to Fire & Rescue AGR- Department personnel for the term of January 1, 2018 through July 31, 2018; and 1956.D authorize payment for services received following expiration of the prior agreement. 17. Approve an agreement with Hoag Executive Health, in the amount of $147,000, to provide up to thirty medical exams per year for the Fire & Rescue Department Hazardous AGR- Materials Response Team for a three year term with the option to renew for one 11270 additional year. 18. Approve Cooperative Agreement No. C-8-1798 with the Orange County Transportation Authority for the Katella Avenue Regional Traffic Signal Synchronization Project (73 signalized intersections along Katella Avenue from the intersection of 1-605 Off Ramp in AGR- the City of Los Alamitos to Santiago Canyon Road and Jamboree in the City of Orange); 11271 and increase the Public Works restricted transportation funding expenditure appropriation by $542,562. 19. Approve the Second Amendment to the Anaheim Canyon Commuter Rail Station Easement Agreement with Pac Center Acquisitions Partners, LLC and Pac Center Acquisitions Partners 11, LLC, conveying to the City of Anaheim an easement with rights AGR- necessary for the beneficial use of the Anaheim Canyon Metrolink Station; and authorize 5727.1.2 the City Manager to execute the agreement and accept the easement (Commuter Rail Line adjacent to property located at 1041 and 1065 North Pacificenter Drive and 1081 North Tustin Avenue). City Council Minutes of October 23, 2018 Page 8 of 22 A123 20. Approve a form Memorandum of Understanding (MOU), in substantial form; authorize the City Manager to enter into MOUs with City partners to receive contributions to offset costs associated with Chrysalis Enterprises; and authorize the City Manager to make minor revisions to accommodate each City partner, on a case -by case basis, so long as such revisions are approved by the City Attorney. 21. RESOLUTION NO. 2018-131 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Fire Chief or his designee to submit a grant R100 application on behalf of the City of Anaheim to the Office of Domestic Preparedness of the Department of Homeland Security for the Fiscal Year 2018/2019 Assistance to Firefighters Grant Program and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget for fiscal year 2018/2019 accordingly ($707,105 in grant funds with a 10% local match). 22. RESOLUTION NO. 2018-132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ratifying the submission of a grant application and the acceptance of R100 a grant on behalf of the City of Anaheim for the Fiscal Year 2018-19 NCS -X Implementation Assistance Program: Support for Local Law Enforcement Agencies, authorizing the City Manager, or his designee, to execute all required grant documents, and amending the budget for fiscal year 2018-19 accordingly ($96,400 in grant funds). 23. Approve minutes of Council meeting of June 12, 2018. D114 END OF CONSENT CALENDAR: 8105 1. Receive and file report from the Library Board dated August 20, 2018; minutes of the Parks and Recreation Commission meetings of May 23, 2018, June 27, 2018 and July 25, 2018; minutes of the Community Services Board meetings of June 14, 2018 and August 9, 2018; and minutes of the Cultural and Heritage Commission meetings of June 21, 2018, July 19, 2018, August 16, 2018, and September 20, 2018. DISCUSSION: Council Member Barnes requested additional detail in the Boards and Commission minutes. In response, Community Services Director Larry Pasco stated that additional detail can be provided minutes, but did advise that audio recordings of the meetings were available. Council Member Barnes asked if the Parks and Recreation Commission minutes and the Library Board minutes be provided in further detail so they can have the information for the public. Director Pasco agreed to provide that information. MOTION: Council Member Faessel moved to receive and file report from the Library Board dated August 20, 2018; minutes of the Parks and Recreation Commission meetings of May 23, 2018, June 27, 2018 and July 25, 2018; minutes of the Community Services Board meetings of June 14, 2018 and August 9, 2018; and minutes of the Cultural and Heritage Commission meetings of June 21, 2018, July 19, 2018, August 16, 2018, and September 20, 2018, 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. City Council Minutes of October 23, 2018 Page 9 of 22 2. Receive and file report on the approved License Agreement with Next Up Foundation AGR- providing afterschool education and youth skateboarding programs on a month-to-month basis at the Downtown Anaheim Recreation Facility and Skate Park located at 305 and 11253 311 E. Broadway. Community Services Director Larry Pasco provided a staff report, beginning with an informational video provided by the Next Up Foundation to provide an understanding of the program. Mr. Pasco advised that Next Up was established in 2010 with the mission to prevent at -risk youth from dropping out of school, getting involved with drugs, and participating in gangs and gang violence. Next Up seeks to inspire youth to recognize and believe in their talents to pursue individual goals and dreams. Mr. Pasco advised that there have been varying security concerns at the green space, with problems increased in 2016 by the void left by the Boys and Girls Club that relocated to Manzanita Park. Due to the increased problems, the Next Up Foundation was asked to provide programming at the facility and the park to help mitigate these issues and were given an agreement. The Next Up Foundation asked for exclusive use of the skate park, including the recreation building, Monday through Friday from 3:00 p.m. to 6:00 p.m., to give them the ability to more tightly control the environment around the facility and curtail issues with non -participants. Mr. Pasco reported that the area has experienced some security concerns in recent years but not all of which were related to the skate park. He discussed a security plan which included having the skate park opened daily in the mornings by recreation staff and closed by either Next Up staff or Park Rangers, newly installed fabricated locking mechanisms which will be more durable and user friendly for staff, newly installed park signage, upgraded security lighting with LED technology, and increased patrols of the area including the park, recreation building, and the skate park by the Police and Park Rangers on a daily basis. Mr. Pasco reported that some of the security issues were common with municipal urban parks and they were working on a safe space while addressing the concerns of the local neighborhood. DISCUSSION: Vinicius °Vina" Tinoco, Next Up Foundation, spoke about the Next Up Foundation and its underlying programming. He provided his background working with at -risk youth in various communities and hoped to continue that work that the Next Up Foundation. Council Member Kring asked if the Santa Ana and Long Beach programs included a skate park. Mr. Tinoco advised that they were providing a skateboarding program and mentorship, but no actual skate park at those locations, and have since discontinued the Santa Ana and Long Beach programs. Council Member Kring expressed concerned about what was happening at the skate park but would support the program if there was proof that the security changes that were being implemented were working. Mr. Tinoco asked if offenders could be issued citations as he felt that would be a deterrent to some of the nuisance activities. Council Member Faessel stated he was mainly concerned with the concerns of the local residents and he was alarmed by the Community Park Planning meetings during the public comment portions of the City Council meeting. Mr. Pasco stated that skateboarders did come to the Community Planning meetings but he could not say for sure if they were City residents or not. He advised that there were breakout sessions and each group was not overly dominated by skateboarders. He also advised that the pictures provided by the local residents were outdated and some of the conditions did not exist at this City Council Minutes of October 23, 2018 Page 10 of 22 time. In regards to noise, Mr. Pasco believed the security measures will help with skating after dusk and should mitigate the noise, noting the City was trying balance the needs of the kids, the neighbors, and the program itself. Mr. Tinoco advised that he has attended two community meetings and the youth that attended were, in fact, Anaheim residents. Mr. Pasco also advised that statistics showed the nuisance issues have recently decreased. Council Member Vanderbilt asked Mr. Tinoco about the ratio of indoor activities to outdoor skating activities and Mr. Tinoco advised that the indoor programs take place from 3:00 p.m. to 4:00 p.m. and 5:00 p.m. to 6:00 p.m. with one (1) hour in the interim dedicated to outdoor skating. Council Member Vanderbilt asked if there was possibility to limit the activities at the skate park to give assurances to the residents that the skate park was secure. Mr. Pasco it can happen but noted that the responsibility goes to the City to make sure that the park was secure. Mr. Pasco advised that hundreds of neighborhood notifications went out for the Community Park Planning meetings and advised that most were not hugely opposed to the skate park. Mayor Pro Tem Moreno advised that darkness was the most concerning for public safety and felt that there was proof that LED lighting and security measures could help this situation. He displayed the crime mapping tool for the last five (5) to six (6) months for the site and noted the issues were no greater or less than that of the surrounding area. He also encouraged the public to call in issues so that they can be reported and displayed on the crime map. Mayor Pro Tem Moreno advised that this was a month-to-month agreement and that this agreement provided some structure for youth for a few hours per day. Council Member Kring advised that residents were voicing their concerns about the noise problems and feels they needs to be addressed. Council Member Murray agreed the concern was the noise and she appreciated the work of the Next Up Foundation and asked staff to continue to work on the noise abatement issue. She asks staff to look at relocating the skate park and/or making changes that mitigated the noise. Mr. Tinoco thanked staff for their assistance and their support for the Next Up Foundation. He further advised that skateboarding would be making its debut at the 2020 Olympics and he felt that it would explode once it was exposed across the world. He also advised that they were interested in an all -in -one facility that housed the entire program inside. Council Member Murray asked City Manager Chris Zapata to have the item come back to make sure the public was aware of how the noise will be mitigated. MOTION: Council Member Faessel moved to receive and file report on the approved License Agreement with Next Up Foundation providing afterschool education and youth skateboarding programs on a month-to-month basis at the Downtown Anaheim Recreation Facility and Skate Park located at 305 and 311 E. Broadway, seconded by Council Member Kring. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel) NOES — 0. Motion carried. City Council Minutes of October 23, 2018 Page 11 of 22 3. Receive and file status report on the Quality Rental Housing Program, which includes the D159 recently adopted Quality Motel Inspection Program. Community Preservation and Licensing Manager Sandra Sagert presented the item and advised that the inspection component allowed the City to identify and work with owners to correct code violations, such as unsanitary, unsafe, and unhealthful living conditions, threats to the structural integrity of buildings, and deferred maintenance of structures. She further advised that the mission was to make sure that everyone has decent, safe, and sanitary housing. The Quality Rental Housing Program has five (5) phases over five (5) years and the City is currently in the 411 year of the cycle. Ms. Sagert advised that, to date, there were 3,600 rental properties and 32 hotels in the program and that Community Outreach Programs were operated regularly to participants. Ms. Sagert presented photographs showing what staff regularly experiences in the program. DISCUSSION: Council Member Murray thanked Code Enforcement for their hard work. She spoke about the inception of the program, that it was created out of a ride along, and advised that it took a lot of effort but was an overall success. She asked staff to identify the specific individuals who made this happen within Code Enforcement so that they could be recognized by the end of the year. Council Member Faessel asked staff if they were aware of property owner changes within neighborhoods in District 5, to which Ms. Sagert deferred to staff. Council Member Faessel addressed Hotel Tampico as he believed it received some of the highest calls for service by the Anaheim Police Department and asked if they were involved in the program, advising that it can be included in the program based on calls for service. Council Member Vanderbilt noted that the first run were properties that were two (2) or more units and wondered if the threshold could become any rental unit. Ms. Sagert noted that the program was primarily geared towards absentee owners. She also noted that staff receives a new inventory of rentals per year and they go back to the properties that were added into the program. Council Member Vanderbilt asked about the self -certification program and Ms. Sagert advised that they do some verification through an exterior inspection and that a code violation in the past year would create an automatic fail. Planning and Building Director David Belmer advised that if single family homes that were being rented were included, there would be a significant staff cost increase. Mr. Belmer further advised that singe family rental homes was not where staff sees the greatest issue but with the multi -family residences. He further advised that they do investigate single family rental properties when an issue arises. Council Member Faessel spoke about the concerns that some residents who occupy sub- standard rental housing were worried about being evicted from their properties. He asked Ms. Sagert if that was still a concern today about engaging Code Enforcement for fear of being evicted and she felt that community outreach has made a difference to mitigate the fear. Mayor Pro Tem Moreno commended the program and Council Member Murray for pushing for this program. He stated he continued to hear concerns that residents were hesitant to report issues due to immigration concerns and being told that rents may increase as a result of improvements. Mayor Pro Tem Moreno staff to provide a report on residences that were City Council Minutes of October 23, 2018 Page 12 of 22 improved and how they correlated to rent increases. He has also heard that new investors have come in, rehabbed the properties, and have recalibrated the rents to meet the market and would like a staff report in the future. Council Member Kring thanked Council Member Murray for bringing it forward. She asked Ms. Sagert about owners purposely lowering rents so they would not have to fix substandard housing. Ms. Sagert advised that there was not information available but staff could obtain some information now that the first phase was almost completed. MOTION: Council Member Murray moved to receive and file status report on the Quality Rental Housing Program, which includes the recently adopted Quality Motel Inspection Program, 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. 5. Receive and file the lease termination letter from Angels Baseball. AGR- DISCUSSION: Council Member Murray addressed this as the first time in more than 50 years 1433.0.7 that the Angels have elected to terminate their lease and noted it should concern the City Council. She also refuted public comments regarding allegations that a former court case did not seek any fees but noted they did seek $200,000 in attorney fees which the Court rejected. She further advised that the Angels attempted to have a good faith agreement. Council Member Murray felt the City could come together with the Anaheim Angels and the community and negotiate and asked City Manager Chris Zapata to make sure that the City has that opportunity moving forward. Mayor Tait asked Mr. Zapata to clarify that the Anaheim Angels did file a lease termination letter to which he affirmed. Council Member Faessel mentioned that Angels baseball has been a proud resident of Anaheim since 1966 and he would like to keep the Angels in Anaheim. He asked staff for a report on the infrastructure condition of the Stadium and what part has been deferred and what the estimated cost of repairs may be. Council Member Vanderbilt asked City Clerk Linda Andal if there was any progress in the Angels negotiation during her tenure as Interim City Manager and she advised that there was not. Council Member Murray stated that there was ample opportunity to reach out to the Angels to get to a productive place. Council Member Kring stated that the amount of money to rehab the stadium was $150 million approximately three (3) to four (4) years ago. She also clarified that the Angels organization had until December 16, 2018 to send that letter in or they would have had to wait ten years so she believes that it was not politically driven. Mayor Pro Tem Moreno communicated with John Carpino, President of the Angels, and he was concerned about the suggestion that the Angels wanted the $1 per year framework but it was the City who approved that framework. Mayor Pro Tem Moreno advise that owner Arte Moreno advised in February 2017 that they would work with the City to stay until the next option in the future. City Council Minutes of October 23, 2018 Page 13 of 22 Mayor Pro Tem Moreno also advised that when he spoke with Mr. Carpino, he was advised that their decision was not a result of a hostile business environment, but was a business decision to keep all of their options open. Council Member Murray believed the letter sent to the City says that they have good faith to work with the City but there are a lot of unknowns that November holds. Council Member Barnes agreed with Council Member Faessel that City Council was not privy to the contract with the exception of the letter and agreed that there was not a good understanding of how to maintain the property and where does the responsibility fall. She requested City Council review the contract. Council Member Murray noted that all contracts are public records and are available to City Council as well as the residents. Mayor Tait advised that the stadium is the largest asset that the City owns, is very valuable, and feels that the obligation to maintain the facility falls on the Angels. Anaheim litigated that the naming loophole should be closed and that the name moving forward should be the Anaheim Angels not the Los Angeles Angels of Anaheim. He disagreed strongly with Council Member Murray's recollection of the $1 per year notation in the Memorandum of Understanding. Council Member Murray noted that a Memorandum of Understanding was not a contract negotiation and inquired if Mayor Tait tried to renegotiate. In response, Mayor Tait advised that they did reach out to Mr. Carpino regarding negotiations within the last six (6) months. MOTION: Council Member Kring moved to receive and file the lease termination letter from Angels Baseball., 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. 11. Authorize the Purchasing Agent to waive Administrative Regulation 425 and donate City Equipment #1024, a 1991 GMC aerial bucket truck; City Equipment #1041, a 1991 D175 International aerial bucket truck; and City Equipment #6611, a 1995 Spartan/Saulsbury fire engine pumper, to the City of Guaynabo, Puerto Rico for use in its recovery from Hurricane Maria and thereafter in its daily operations. DISCUSSION: Mayor Tait commended Public Works Director Rudy Emami for his hard work with the U.S. Conference of Mayors and FEMA to donate City fire equipment to Guaynabo, Puerto Rico for their use after a devastating hurricane in the area. Mayor Tait advised that the population of Guaynabo was approximately 90,000 and is the fourth largest city in Puerto Rico. Mr. Emami thanked the Public Utilities Department and the Fire Department for their work in donating the equipment. City Council Minutes of October 23, 2018 Page 14 of 22 MOTION: Mayor Tait moved to authorize the Purchasing Agent to waive Administrative Regulation 425 and donate City Equipment #1024, a 1991 GMC aerial bucket truck; City Equipment #1041, a 1991 International aerial bucket truck; and City Equipment #6611, a 1995 Spartan/Saulsbury fire engine pumper, to the City of Guaynabo, Puerto Rico for use in its recovery from Hurricane Maria and thereafter in its daily operations, 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. 12. Approve funding for traffic calming projects, permit parking implementation, and other D175 neighborhood improvements; and increase the Public Works Fiscal Year 2018/19 Community Improvements fund expenditure budget by $1,000,000. Public Works Director Rudy Emami presented the item and stated that through a new agreement between the City and the County, staff found an opportunity for funding to put back in Anaheim neighborhoods. He further advised that two (2) areas with the most need were permit parking and traffic calming and staff was asking City Council to approve the funding. DISCUSSION: Council Member Faessel thanked Mr. Emami for investing in Anaheim neighborhoods and asked what was the game plan to fund the permit parking backlog. Mr. Emami advised that once the policy was approved, it will be broken into phases which his staff will implement and they should finish the backlog by the end of next year. Council Member Faessel asked about streetscape improvements and what criteria was used, to which Mr. Emami advised that most of the improvements come from building opportunities and they can use this funding as opportunities arise. Mr. Emami advised that sixteen out of the eighteen neighborhoods did not achieve the approval rate for parking permits. Mayor Pro Tem Moreno thanked Mr. Emami for his hard work and asked staff to provide a report on how much time it takes to obtain the parking permit once the policy is approved. Mr. Emami advised that there is a public map that advises the residents where they are at in the process. MOTION: Mayor Pro Tem Moreno moved to approve funding for traffic calming projects, permit parking implementation, and other neighborhood improvements; and increase the Public Works Fiscal Year 2018/19 Community Improvements fund expenditure budget by $1,000,000, 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. 13. Approve a Parking License Agreement with the River Church USA, Inc., in the monthly AGR- fee payment of $7,000, for the use of 753 parking spaces within Center City parking 11268 facilities identified as Car Park 1 (adjacent to City Hall), Car Park 2 (across the street from the Downtown Community Center) and Car Park 3 (adjacent to Anaheim West Tower), for a ten year term with two five-year optional renewals and authorize the Director of the Community and Economic Development Department, or his designee, to execute and administer the agreement. DISCUSSION: Director of Community & Economic Development John Woodhead presented the item, advised that the Anaheim Senior Center was not impacted by this agreement, and showed that even at peak demand, not all of the parking was taken. He further advised that at a worst case scenario there were 50 parking spaces available in the flat parking structures. D155 City Council Minutes of October 23, 2018 Page 15 of 22 Mr. Woodhead advised that the parking directly across from the entrance of the church would be used on an interim basis and would address handicapped parking. Mayor Tait clarified that the parking was open to the public but agreed that an operation agreement helps mitigate any issues moving forward. He also clarified that the use was mainly on Sundays. Mayor Tait was happy that the voice of the Anaheim Senior Center was heard and they can be reassured that their parking will remain available. Mayor Pro Tem Moreno thanked Mr. Woodhead for his work on this project and asked if there were monies being used in Car Park 1 to improve parking for the Senior Center. Mr. Woodhead said that was was the plan but would be dependent on funding and there was currently not a need. Council Member Faessel addressed the broken elevators and asked if there were plans to fix them. Mr. Woodhead advised that the elevator age was one issue and that another concern was that the financial backstop was going to be the Redevelopment Agency and that there was no funding for the elevator repair. He advised that part of what they want to do is to set aside a responsible capital replacement reserve to repair those elevators. Council Member Faessel asked that Mr. Woodhead craft a memorandum to the participants of the Senior Center to reassure them that they will not be impacted by the Parking Agreement. Mayor Pro Tem Moreno asked if the public could use Car Park 1 on Sundays. Mr. Woodhead advised that the public was not prohibited but it was probably the most useful lot in the area and also advised that there would be a validation system for River Church congregants. MOTION: Council Member Kring moved to approve a Parking License Agreement with the River Church USA, Inc., in the monthly fee payment of $7,000, for the use of 753 parking spaces within Center City parking facilities identified as Car Park 1 (adjacent to City Hall), Car Park 2 (across the street from the Downtown Community Center) and Car Park 3 (adjacent to Anaheim West Tower), for a ten year term with two five-year optional renewals and authorize the Director of the Community and Economic Development Department, or his designee, to execute and administer the agreement, seconded by Mayor Tait. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel) NOES — 0. Motion Carried. 24. Receive and file a project status report on the Westgate Shopping Center site on the corner of Beach Blvd. and Lincoln Ave. DISCUSSION: Director of Community & Economic Development John Woodhead presented the item and advised that the City had a 25 -acre site that the Redevelopment Agency had acquired over a long period time with a number of development proposals and environmental remediation of three (3) former landfills had to be completed before the City could develop the property. Mr. Woodhead also advised that the site was made development ready approximately one (1) year ago when the gas extraction system to remove the methane out of the ground was finally completed. Shortly thereafter, there was an opportunity to acquire an adjacent five (5) acre site by Westgate Investment Group, which owed the City for their fair share of running the gas system, and they agreed to sell the property to the City, and now the entire thirty -acre site is known as Westgate. City Council Minutes of October 23, 2018 Page 16 of 22 Mr. Woodhead realized that a number of the economics had changed dramatically and the idea of obtaining a big box retailer was no longer a viable option and a medium box retailer proposal was not well received. A site plan that was proposed by the developer includes a "Main Street' that runs parallel to Beach Boulevard and starts to make a turn east up Lincoln. He further advised that in order to make the area more viable, limited for sale housing was introduced. The City looked into modifying the Specific Plan that they may carve out a four (4) acre site to be developable for residential housing. The Main Street would have dining opportunities and places to gather and a green belt would be adjacent to this residential pocket that would be on the eastern edge of the Lincoln frontage. Mr. Woodhead also advised that they were working with a couple of brewers that were interested in building a fairly significant campus space there. Mr. Woodhead noted that the Specific Plan should be in front of City Council within the next thirty days and staff will be bringing forward a modification to the Disposition and Development Agreement (DDA) to account for the five (5) acres to be added to the development site and to provide for the residential opportunity. Mayor Tait stated that he was excited about this opportunity and felt it was important that "positive energy" was created in some of these areas. Council Member Murray noted that, according to the Staff Report, Zelman Development entered into a development agreement with Anaheim in 2002 and still the site was still empty. She asked what it would take for Zelman Development to ultimately perform under their contract and what would Greenlaw Partners Inc. be able to do that Zelman has not been able to do. Mr. Woodhead clarified that Zelman Development is not a residential developer, so they formed a joint venture with Greenlaw Partners, Inc. to complete the development. He further advised that site development has not been completed through no fault of their own and it could not be completed until the gas extraction system was in place and tested and that only happened with the last year. The City did not anticipate the time this took to complete. Mr. Woodhead advised that there would not be any excuses moving forward and the City would no longer be an impediment before they can development and they will be held to a short time period in which they need to develop the project. Council Member Murray if the DDA that Zelman Development has held can give them negotiation rights to sub -contract to an alternative developer. Mr. Woodhead advised that the City allowed for that to occur provided the primary developer remained the managing partner of the venture. He advised that Greenlaw will not be the developer on the landfill. Council Member Murray asked if these adjustments have been included and voiced publicly and Mr. Woodhead affirmed they were. Council Member Barnes thanked Mr. Woodhead for allowing the public to understand that there was a future for this plan. MOTION: Council Member Kring moved to receive and file a project status report on the Westgate Shopping Center site on the corner of Beach Blvd. and Lincoln Ave, 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. City Council Minutes of October 23, 2018 Page 17 of 22 25. Approve a negotiating framework involving the City of Anaheim and Anaheim Arena Management, LLC (AAM), which would keep the Anaheim Ducks in Anaheim through D116 2048, increase annual General Fund revenue and contemplate the sale of City -owned property for purposes of development in and around Honda Center and the Anaheim Regional Transportation Intermodal Center (ARTIC) in accordance with the May 2004 Platinum Triangle Master Land Use Plan, and direct staff to continue with negotiations with AAM based on the framework. DISCUSSION: Tom Morton, Executive Director, Convention, Sports & Entertainment Department, presented the item and advised that in January 2018, staff advised City Council of Anaheim Arena Management, LLC's (AAM) interest in developing options around the Honda Center. City Council authorized staff to enter into discussions with AAM and they have been in active negotiations since that time. Mr. Morton advised that the primary goal has been to develop a framework for agreements that are mutually beneficial to all parties and the Anaheim community as well. Mr. Morton advised that the goals are to secure the future of hockey and entertainment, benefit the residents by creating more general fund revenue, and to develop a partner with AAM to develop the Platinum Triangle. He advised that advancing the City's vision of the Platinum Triangle was important to the City's vision to energize an area that has been awaiting development for 14 years. The City was only just beginning to realize the area's potential and it hoped to develop a unique, integrated, urban, walkable environment where all development would be harmonious, reinforcing transit opportunities around ARTIC. City Clerk Linda Andal reported that the Honda Center and the ARTIC sit in the heart of the Platinum Triangle with much of it surrounded by City -owned property which is quite restricted with significant parking obligations. The proposed framework includes discussion on extended agreements, land cells, and extended ARTIC operations. It is the City's intent to maintain ownership of the Honda Center with AAM bearing all operating costs and capital expenditures. Additionally, the agreement calls for 25 -plus more years of Ducks hockey, extending the agreement to 2048 with five (5) extensions of five (5) years each. This framework will also increase the City's ability to share in profits by reducing the current profit sharing threshold, which will increase to a fair 50-50 split. Ms. Andal spoke about the land cells which include Parking Lots 1, 3, 4, and 5. Currently lots 1, 3, and 4 surround the Honda Center with lot 5 a vacant lot known as the Douglas lot, which can park 1,000 vehicles. The Honda Center would be required to inherit the City's requirement for 3,900 parking spaces for Honda Center attendees. Any property sale will be sold at appraised value and will add a value protection clause to protect the City. Ms. Andal advised that they opened discussions to include an enhanced partnership at ARTIC and any agreement at ARTIC would run concurrently with any agreement at the Honda Center. The ARTIC agreement would relieve the City of ARTIC operating costs, which currently stand at $2.5 million annually, and could save the city up to $70 million. Additionally, she advised that the agreement would allow for a spectacular digital messaging board with all revenues going back into ARTIC. Finally, it will provide for profit sharing with the City receiving 60% of net proceeds. Mayor Tait noted that there were key provisions including sale at appraised value and that the City was required to provide 3,900 parking spaces. City Council Minutes of October 23, 2018 Page 18 of 22 Mr. Morton clarified for Mayor Tait that in order to develop the site, the 3,900 parking spaces would be required per the Environmental Impact Report and would need to be adjacent to the property in some fashion, which could include a parking structure. Mayor Tait believed there as tremendous potential for the Honda Center and can really energize the area. Mr. Morton clarified that if the properties were not consolidated, legally, there would be no ability to move forward with developing the area. Council Member Faessel thanked the Anaheim Ducks for being a great steward of the Anaheim Arena and for partnering with the City of Anaheim. He wanted to make sure that the deal was advantageous for the Anaheim Ducks and the City but was concerned with awarding a lease to the ARTIC without a Request for Proposal (RFP). Council Member Faessel noted his concern that this plan included the loss of the second City Council suite which was used quite a bit for non-profit use and was a significant source of income for the non -profits. Mr. Morton advised Mayor Pro Tem Moreno that property tax, sales tax, and occupancy tax would all be a part of a revenue stream coming back to the City. Mayor Pro Tem Moreno asked if there was an estimate of what that revenue stream would look like for the City and Mr. Morton advised that those numbers would not be available until a development plan was presented. Mayor Pro Tem Moreno asked if this precluded Anaheim from trying to recruit a National Basketball Association (NBA) team and Mr. Morton advised that this enhances the attractiveness to the NBA and that AAM was also interested in that possibility. Mr. Morton explained the two (2) profit sharing opportunities made available by this plan; one with the Honda Center where there is an existing agreement and one with ARTIC which would be a new agreement. He further advised that the Honda Center threshold would drop from $12 million dollars to $6 million, of which the City would receive 50% of the net profits over $6 million. He further explained that the new ARTIC agreement would allow the City to receive 60% of net profits from dollar one. Council Member Murray thanked staff for the time they have put in on this project for the last year and the Anaheim Ducks for their negotiations over the last two (2) years. She agreed that this as a great opportunity, questioned why there was not an agreement to consider, and whether there was a drive to complete this by the end of the year or was this being handed over to the next City Council. Mayor Tait noted that this was an attempt to be transparent with the public and he would like to see it completed by the end of the year but realized that it may fall to the next City Council to complete. Ms. Andal and Mr. Morton believed that this could be completed by the end of the year. Council Member Vanderbilt understood that the slowdown was to bring City Manager Chris Zapata up to speed on this project. Mr. Zapata advised this was a critical transaction and appreciated all of the hard work that has happened on this project and advised that the timeline depended on the legal framework. City Attorney Robert Fabela stated that great progress had been made on some of the legal negotiating points and felt that they were on target for completing this by the end of the year. D160 City Council Minutes of October 23, 2018 Page 19 of 22 Council Member Kring thought this was a great plan but she was upset about relinquishing the City Council suite. She also supported AAM being awarded the contract and did not feel that there was another vendor who was willing to do this so an RFP was not necessary. Council Member Murray agreed that there is a community partner that is ready to go but felt this could have been completed months ago. Council Member Barnes disagreed with Council Member Murray and advised that she was not presented with this plan prior to a few months ago. She appreciated the hard work moving this forward and hoped that this would be completed by the end of the year. Council Member Faessel expressed concern about not going out for RFP and simply wanted to make sure that the City as receiving the best possible deal. He asked staff to provide an update regarding the City Council suite and potential RFP. Council Member Murray responded to Council Member Barnes and advised that these parameters were discussed earlier in the year. Mayor Pro Tem Moreno did not recall the discussions that Council Member Murray as speaking about earlier in the year and felt that this was the time to present it to the public. He felt the benefits of an RFP were that it can provide agreements, but did not believe the City can get a better deal than what was presented in this framework. Council Member Murray asked Mayor Pro Tem Moreno to clarify his position on approving this item and he clarified that he was comfortable with approving the framework but would still like public input. Mr. Fabela advised that when the contracts were ready to be approved, they would presented to the City Council like all other agreements. Council Member Kring advised that there were several meetings in closed sessions about the parking facilities at the property. She advised that the deal should have been completed months ago and did not feel that an RFP was necessary. Council Member Murray also advised Council that there were months of community outreach while negotiating with the Angels and she did not feel that there as a timeline for that in this case. MOTION: Council Member Murray moved to approve a negotiating framework involving the City of Anaheim and Anaheim Arena Management, LLC (AAM), which would keep the Anaheim Ducks in Anaheim through 2048, increase annual General Fund revenue and contemplate the sale of City -owned property for purposes of development in and around Honda Center and the Anaheim Regional Transportation Intermodal Center (ARTIC) in accordance with the May 2004 Platinum Triangle Master Land Use Plan, and direct staff to continue with negotiations with AAM based on the framework, 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. 27. Receive and file report containing crime data including year to date, year over year, five and ten-year analyses along with comparison information. Due to the lateness of the hour, without objection Mayor Tait continued Item No. 27 to the Council meeting of November 13, 2018. City Council Minutes of October 23, 2018 Page 20 of 22 26. Receive and file updated hotel projections. D128 DISCUSSION: Finance Director Debbie Moreno presented the item and advised that a request was made by Council Member Murray for updated information on the five year budget forecast, including the hotel revenue for those hotels which have received a tax rebate from the City and those hotels that have since cancelled their plans to build in the City. Mayor Tait requested that staff also include an analysis on the effect to the five year budget forecast with the assumption that visitors would still come to Anaheim despite the cancellation of those hotel developments. Additionally, it was requested that the staff report include the budget impacts for all of the budgeted four diamond hotels. Ms. Moreno presented the Disney Four Diamond Hotel Impact, the JW Marriott (GardenWalk) Four Diamond Hotel Impact, and the Westin Anaheim (Formerly Anabella Hotel) Four Diamond Hotel impact. Council Member Faessel stated the projections assume that Anaheim guests will stay in a three diamond hotel and that there was enough inventory to support guest stays. He also understood that the $190 million expansion of the Convention Center was tied to the ability to have higher rated, higher grade rooms and he asked Convention, Sports, and Entertainment Director Tom Morton for clarification. Mr. Morton clarified that four diamond hotels allow certain events to come to the marketplace where attendees prefer a four -diamond presence and there are certain types of guests that will only stay at four diamond hotels. Additionally, Mr. Morton, in response to Council Member Faessel's request, believed the current occupancy rate to be in the mid -80 percentile. Mayor Tait presented his analysis and believed that the city gudget actually gets better if the subsidized hotels are not built. He does not believe that people will stop coming to Anaheim because there are not four diamond hotels available. He further presented that since 2012, 16 hotels have been approved/constructed with a total of 3,281 rooms available. Mayor Tait believed that Anaheim is very business friendly and is not a hostile business environment. Council Member Kring believed that the City was lacking a four -diamond hotel presence with the amenities that appeal to a guests who are not looking at attending Disneyland. Council Member Murray expressed concern that the staff report was absent of concrete facts for the public and felt it was important to understand the original policy for the four -diamond hotels about the value of adding four -diamond stock to the Anaheim hotel portfolio. She advised that there were not enough four diamond hotels in direct proportion to Anaheim's annual 25 million visitors . By contrast, she advised that Santa Barbara has four (4) Four Diamond hotels with 6 million annual visitors, Santa Monica with 8 million visitors has five (5) Four Diamond hotels, Phoenix with 19 million has seven (7) Four Diamond hotels, Denver with 15 million has eight (8) Four Diamond hotels, and Las Vegas with 42 million visitors has 13 Four Diamond hotels. Council Member Murray had concerns about the staff report as it had a limited view on net value and that discount was not very clear, does not give the overall picture, and does not negate the fact that we will need to pay back those bonds. Ms. Moreno clarified that her report was based on the net impact to the five (5) year forecast of the General Fund only. City Council Minutes of October 23, 2018 Page 21 of 22 Council Member Murray stated that for the benefit of the public, that the total net value would have still been $133 million, the City would have just used a significant portion of that to pay bonds earlier. Ms. Moreno indicated that the breakeven was not meant to look at the impact on lease payment measurement revenues (LPMR), it was strictly to look at the General Fund. Council Member Murray clarified for the public that LPMR were bond payments that Anaheim residents have been paying back since 1996. Ms. Moreno again clarified that this was strictly an exercise in looking at the General Fund. Council Member Murray hoped that the future study will take all of this into consideration and provide the true total picture of the impact. Council Member Murray requested a report on the revenue impact to the City of Anaheim now that the Disneyland Hotel will not be built. Ms. Moreno stated she could not provide an opinion on that at this time because she needed the completed study from the consultant to do the analysis. Mayor Tait responded to Council Member Murray that the City of Anaheim was better off because it does not have to pay the Disney Corporation $260 million. Council Member Faessel asked Mr. Morton if the Radisson Blu received a reduced property cost. Community & Economic Development Director John Woodhead advised that the City was selling the property at fair market value based on an appraisal and that the property had some issues which resulted in deductions on the property appraisal for it being a challenged site. Council Member Faessel asked Mr. Morton if there were statistics that show if any convention attendees stayed outside of Anaheim and he responded that he would need to compile that information from other sources. Mr. Morton did advise that there are some attendees that are looking for four diamond hotels that Anaheim cannot currently offer and there are risks of not having conventions in Anaheim due to not having four diamond hotels. Council Member Murray noted that Anaheim will see millions of new visitors with Star Wars land at Disneyland and that four diamond hotels would have generated additional revenue to the City. Additionally, she does not think it was fair to overlook the requirements and value the City needs to pay off those bond payments and will be asking all City consultants to compliment the reports to provide the complete picture to residents. Mayor Pro Tem Moreno asked Ms. Moreno if all of the calculations in the staff report included LPMR which she confirmed. He also noted that Disney chose not to build the hotel and that it did not need the subsidy in order to build the hotel but that they did not perceive a wide enough profit margin. Mayor Pro Tem Moreno asked Ms. Moreno if there was a scenario where three star property visitors would go up to four-star properties and she advised that it was too early to tell and that she would assess that in a future study. Mayor Pro Tem Moreno asked Ms. Moreno if the City will go into a budget deficit if these hotels are not built. Ms. Moreno advised that she did not have enough information to speculate on that projection. Council Member Kring asked if the Radisson Blu was required to be a four -diamond property and Mr. Woodhead advised that they were not required to be a four -diamond property City Council Minutes of October 23, 2018 Page 22 of 22 MOTION: Council Member Kring moved to receive and file updated hotel projections, 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. REPORT ON CLOSED SESSION: City Attorney Robert Fabela reported that Item 3 was removed entirely. COUNCIL COMMUNICATIONS: Council Member Murray requested a full economic impact be agendized to include all revenue sources of proposed hotels, impact of lost jobs, impact to the Visitors Convention Bureau, and the other factors she referenced during discussion of the hotel projections staff report Council Member Kring thanked Council for their generous auction items for Cops4Kids. Mayor Pro Tem Moreno requested an update on the Beacon Economic Report. Council Member Barnes thanked Joe Baldo, Higher Ground, Randy Platt, CEO SeniorSery and Holly Hagler, SeniorServ, for their service. Council Member Vanderbilt thanked Chris Zapata, City Manager, for his presentation at the WAND community meeting.. Council Member Faessel thanked Angels Baseball for a meeting with the various little leagues and announced the Angels Foundation and Bank of America event to be held at the stadium for 800 physically challenged children. Mayor Tait requested the analysis being provided by Finance Director Moreno also include the assumption of visitors not staying in 4 -diamond hotels are still booking rooms at other Anaheim hotels. ADJOURNMENT: With no further business before the City Council and without objection, Mayor Tait adjourned the meeting of October 23, 2018 at 1:08 A.M. on October 24, 2018 in memory of Georgia Police Officer Antwan Toney and International Journalist Jamal Khashoggi. Respectful u d, Th esa Bass, CM City Clerk