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12/06/2018.specialANAHEIM CITY COUNCIL SPECIAL MEETING OF DECEMBER 6, 2018 The special meeting of December 6, 2018 was called to order at 3:37 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on December 5, 2018. PRESENT: Mayor Harry Sidhu and Council Members Jose F. Moreno, Jordan Brandman, Lucille Kring, Stephen Faessel, and Trevor O'Neil ABSENT: Council Member Barnes STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk Linda Andal ADDITIONSIDELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEMS: William Fitzgerald, Paul Hyek, R. Joshua Collins, John Dunton, Mike Murray, and a male speaker commented on the Closed Session agenda items. CLOSED SESSION: At 3:48 P.M., Mayor Sidhu recessed to closed session for consideration of the following: CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9 Number of potential cases: One 2. 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., USDCCourt Case No. 18 CV -00155 -DOC (KESx) At 4:28 P.M., the City Council session was reconvened ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: R. Joshua Collins, Homeless Advocates for Christ, expressed his gratitude for City Council's actions for the homeless shelter. He encouraged City Council to leverage the homeless community to come up with out of the box ideas for housing. He strongly supported housing as a right. Peter Warner expressed concern for public health and safety issues when new shelters were opened. He also suggested the City investigate obtaining Carl Karcher Enterprises property for future shelter use. City Council Minutes of December 6, 2018 Page 2 of 6 Paul Hayek suggested the City investigate obtaining the Carl Karcher Enterprises property for future shelter use, as the parking lot could be used for RVs. He also expressed concern for appropriate licensing for bus drivers transporting the homeless. William Fitzgerald, Home Owners Maintaining Our Environment, expressed concern that non- profits were profiting from the temporary shelters. Mark Richard Daniels noted that more homeless shelters will need to be set up and it was an issue that needed to be shared across the districts. Jody Mosley expressed her support for the temporary homeless shelter. John Dunton spoke about the rules of the Brown Act regarding public comments. Bill Taormina expressed his support for the temporary homeless shelter and thanked everyone who supported the initiative. Jay Burress, CEO of Visit Anaheim, spoke about Visit Anaheim Cares, their separate 501(c)(3) and reported that, to date, they have received $300,000 from local business in support. Greg Tucker, Hope Community Church of Anaheim, expressed his support for the temporary shelter and thanked City Council for their efforts. "The Cameraman" expressed his support for the temporary shelters and his concern for the homeless community's health and welfare. Chris Burt, attorney representing The George, expressed concerns for the legal process that City Council was using to authorize the temporary shelter and requested City Council postpone action. Deborah Castro expressed her concerns for the health of workers who come into contact with human blood and tainted needles in their restrooms due to the homeless population. Lou Noble spoke about alternative locations for the homeless community including large parking lots. Mike Robbins provided unemployment and homeless statistics for Orange County and spoke about the financial impacts of leaving homeless in place versus permanent supportive housing. Jeannine Robbins spoke about her concerns that the homeless shelters will have warehouse conditions and hoped to hear that homeless needs were addressed. Wes Jones, People's Homeless Task Force, expressed gratitude and support for the temporary shelter and wanted the shelter to be successful. Rebecca, Buena Park resident, recommended that members of the homeless community be involved in the planning, so the emergency shelter can be useful for their needs. City Council Minutes of December 6, 2018 Page 3 of 6 Cynthia Ward expressed her concerns for the environmental and zoning concerns, the construction timeframe, and the no -bid process that was included in building the temporary homeless shelter. Bryan Kaye expressed his concern around the Anaheim Police Department's treatment of the homeless community and their use of body cameras. A male speaker spoke about dealing with the homeless with compassion and believed the first step was to decriminalize the homeless. Pat Davis expressed concerns for homeless who live in their vehicles or RVs and how they fit into the temporary shelter. She was also concerned about storage availability at the site. George Grachen expressed support for the temporary shelter and Illumination Foundation. He voiced his concerns for City Council partnering with a group that made campaign contributions to a recent candidate and hoped that the individual recused themselves moving forward for transparency purposes. CONSENT CALENDAR: 1. Approve a Reimbursement Agreement, in substantial form, with Visit Anaheim Cares, Inc., in an amount not to exceed $600,000, for the purposes of providing an interim AGR -11316; emergency homeless shelter to be located at 2040 and 2050 S. State College Blvd., to serve up to 200 individuals for at least 60 days, and authorize the City Manager to execute and administer the Agreement, and other documents as may be necessary to implement the Agreement, on behalf of the City. AGR -11317 Waive Council Policy 4.1 and authorize the City Manager to enter into an agreement with Illumination Foundation, in an amount not to exceed $805,000, to operate an interim emergency homeless shelter for start-up costs and services for a 90 -day period, subject to preconditions being satisfied and review and approval by the City Attorney. Determine this action to establish and operate an interim temporary homeless shelter during a shelter crisis is categorically exempt from CEQA pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15301 (categorical exemption for existing facilities), 15303 (categorical exemption for new construction or conversion of small structures), 15304 (categorical exemption for minor alterations to land), and 15332 (categorical exemption for in -fill development projects). Additionally, none of the exceptions to the categorical exemptions identified in CEQA Guidelines Section 15300.2 apply; and Increase City Administration FY 2018/19 budget by $1,405,000 for the Reimbursement Agreement and Operating Agreement of the interim emergency homeless shelter. Mayor Sidhu thanked prior City Council for their hard work and diligence in getting Anaheim to this point. The permanent shelters are expected to open in February 2019; however, the need for temporary shelters have reached a crisis point. He also expressed concerns of the homeless being in the elements during the winter months. City Council Minutes of December 6, 2018 Page 4 of 6 Mayor Sidhu thanked Mr. Taormina for his dedication to Anaheim and recapped the steps Mr. Taormina took to bring this temporary shelter to fruition. He thanked Mr. Burress for bringing together the Angels, Anaheim Ducks, Disney, LT Global, Republic Services, and others to donate over $300,000 to offset City costs to open the temporary shelter within the space of a week. City Manager Chris Zapata reported that the homeless crisis has been hard on the residents of Anaheim and staff remains steadfast in providing a 325 bed permanent homeless shelter by February 2019. He reported that the current recommendation included a private partner investment, a very aggressive timeline, and was viable only if there was a balanced approach of services, beds, and enforcement. Mr. Zapata reported that Public Works Director Rudy Emani would be leading the project. Mr. Emani advised that pre -construction teams have begun, with the contractor and his entire team dedicated to meeting the deadline. He also reported that there was a full-time inspector onsite to facilitate real time results. Mayor Pro Tem Moreno expressed concern about the legal ramifications of moving the process so quickly. In response to Mayor Pro Tem Moreno's inquiry, Mr. Zapata advised that funds were only pledges at this time. He also recommended that City Council give approval for up to $1.4 million and deduct pledges from those funds first. Mr. Zapata advised that Visit Anaheim Cares will lease the building instead of the City because of the aggressive timeline, allowing Visit Anaheim Cares to handle the building lease and staff available to work on the rest of the project. Mayor Sidhu clarified that the $600,000 funding is to build showers, restrooms, and other needs for the building. In response to Mayor Pro Tem Moreno, Paul Leon, Illumination Foundation, advised that he was notified of this project approximately 48 -hours prior to this meeting. Mr. Leon advised that a large part of the expense is to bring in temporary showers, toilets, and sinks and to prepare the building for habitation. Mr. Leon reported that Illumination Foundation will provide some services including social workers, but limited services will be provided. He advised that the goal was to provide a safe and humane place for shelter and to mitigate public health issues with the impending winter weather. He is dedicated to providing as many services as possible within a short period of time. City Attorney Rob Fabela advised that because there will be available beds, the City would be in a position to enforce the anti -camping ordinance. He reported that moving this quickly opened the door to risk and that an injunction was possible should an entity pursue litigation. Mr. Zapata read a letter from Council Member Barnes regarding the conditions at Maxwell Park, as she was unable to be at the special meeting. She stated the conditions there were a crisis that needed to be addressed, acknowledged actions by the City Council on shelters and the Police Department on enforcement activities, and trusted her colleagues to make a prudent decision on behalf of the entire city. Council Member Brandman expressed his gratitude for everyone coming together to make this possible. City Council Minutes of December 6, 2018 Page 5of6 Council Member Kring stated that this was a win-win for both the neighborhoods and the homeless. She reported that there was a great sense of urgency to complete this project as soon as possible. Lastly, she thanked Mr. Taormina for being a champion for this process. Council Member O'Neil expressed his support for this item and noted that understanding when the anti -camping ordinance could be fully enforced as critical. Council Member Faessel thanked Mayor Sidhu for bringing this item forward. He reported the he toured the Santa Ana shelter and that residents seemed genuinely happy to be there and noted that the Anaheim model provided even more privacy. He thanked Mr. Burress for developing a non-profit component of Visit Anaheim and stated that the City was committed to seeing this through. Lastly, Council Member Faessel again noted that all of the shelter beds will be in District 5 and he believed that District 5 had done more than its share. He could not support this action, as he has heard no other alternatives to these locations. Mayor Pro Tem Moreno spoke about the homeless responsibility being shared across the City. Mr. Fabela spoke about the remedies available should the facility not be opened before the Salvation Army. He advised that the remedy language can be developed to be more explicit. Mr. Taormina advised that the City is not the lessee in order to keep the City out of a place of risk. He also advised that this plan was put into motion when Mayor Sidhu recently returned from India and further advised that the Illumination Foundation contract was a per diem cost and was less than the Piano Store. He also reported that Santa Ana's 200 -bed emergency shelter begat a legal settlement and allowed them to enforce their anti -camp enforcement in advance of their 450 -bed requirement and believes the temporary shelter beds will allow Anaheim to enforce its anti -camping ordinance. Mr. Taormina offered to reimburse the City of Anaheim any legal fees that it incurs should it be sued by The George. Mayor Pro Tem Moreno noted that it was important that the contractor on this project is Ross McCune, Chairman of the Board of the Anaheim Chamber of Commerce, and stated that it is very important to note that since it is a no -bid process. He advised that it is very critical for City Council to be transparent in public-private partnerships. Mr. Taormina offered the City a guarantee that any dollar amount the City spends, should this project fail, will be returned to the City, including any legal fees to the City should The George sue the City. He agreed to sign legal paperwork with the City Attorney's Office to indemnify that guarantee. Mr. Fabela clarified that Section 3 of the reimbursement agreement with Visit Anaheim Cares and the City of Anaheim does contain provisions for accounting, audit, and refund of unused monies, per Council Member O'Neil's inquiry. Council Member Kring moved to approve Item No. 1, seconded by Council Member Brandman. APPROVED VOTE: 5-1 (AYES: Mayor Sidhu and Council Members Moreno, Brandman, Kring, and O'Neil; NOES: Council Member Faessel; ABSENT: Council Member Barnes). Motion carried. City Council Minutes of December 6, 2018 Page 6 of 6 REPORT ON CLOSED SESSION ACTIVITES: None. COUNCIL COMMUNICATION: Council Member O'Neil thanked staff and community representatives for their warm welcome and professionalism. Mayor Pro Tem Moreno thanked Mayor Sidhu for his work on the emergency shelter and expressed his interest to be transparent in the process. Mayor Sidhu thanked every homeless advocate and public supporter involved in the shelter, recognized the public-private partnership, and thanked them all for putting humans first. ADJOURNMENT: At 6:24 P.M., with no objection, Mayor Sidhu adjourned the special meeting of December 6, 2018. Respectfully submitted, eresa Ba s, CMC City Clerk