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06/18/2019 ANAHEIM CITY COUNCIL SPECIAL AND REGULAR MEETING OF JUNE 18, 2019 The special meeting of June 18, 2019 was called to order at 2:01 P.M. in the Council Chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on June 13, 2019. MEMBERS PRESENT: Mayor Sidhu and Council Members Kring, Moreno, Faessel, and O'Neil. Council Member Brandman joined during closed session. MEMBERS ABSENT: Council Member Barnes ADDITIONS\DELETIONS TO CLOSED SESSION: City Attorney Robert Fabela announced Closed Session Item No. 1 involved anticipated litigation by the ACLU related to the City's procedural rules and public comment at Council meetings and Closed Session Item No. 2 involved threatened litigation by The Phoenix Club German Association of Orange County related to the lease of property located at 1370 South Sanderson Avenue. PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None CLOSED SESSION: At 2:02 P.M., Mayor Sidhu recessed to closed session for consideration of the,following: 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of California Government Code Section 54956.9: One potential case 2. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of California Government Code Section 54956.9: One potential case 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: F.E.V. v. City of Anaheim, Orange County Superior Court Case No. 2015-00770859 4. CONFERENCE WITH LABOR NEGOTIATORS (Subdivision (a) of Section 54957.6 of the California Government Code) Agency Designated Representative: Linda Andal, Human Resources Director and Angel Ho, Employee Relations Manager Name of Employee Organizations: Anaheim Police Management Association At 3:15 P.M., Mayor Sidhu reconvened and adjourned the special meeting of the Anaheim City Council. City Council Minutes of June 18,2019 Page 2 of 38 At 3:15. P.M., Mayor Sidhu called to order the regular meeting of the Anaheim City Council. MEMBERS PRESENT: Mayor Sidhu and Council Members Kring, Brandman, Moreno, Faessel, and O'Neil. MEMBERS ABSENT: Council Member Barnes STAFF PRESENT: City Manager Chris Zapata,.City Attorney Robert Fabela, and City Clerk Theresa Bass. D106 WORKSHOP: Proposed Fiscal Year 2019/20 budget (Public Utilities, Public Works, Planning & Building, Community & Economic Development, and Convention, Sports & Entertainment) City Manager Chris Zapata introduced the workshop and advised it is the fourth and final workshop in the budget series. He noted that the public hearing would be held later in the meeting to consider adoption of the proposed budget and fee changes. He also noted that Anaheim is one of a few Orange County cities that will be able to balance its budget without cutting services or raising taxes. Public Utilities Department Public Utilities General Manager Dukku Lee presented the Public Utilities budget which totals $637,000,000 and included both operation and capital expenditure costs, increasing by 2.5% from the prior year. Nearly two-thirds of the operating budget is for essential water and power supplies. Overall, operating budget is increasing by just under 4%, in order to integrate more sustainability initiatives and to comply with statewide mandates. Mr. Lee presented Public Utilities Core Services which include Electric Initiatives, Water Initiatives, Community Engagement, and Improving Quality of Life. He reported that as part of the Solar for Schools Program, nine solar shade structures were dedicated to Anaheim public schools. The program alleviates the maintenance burden on schools and provides communities with clean renewable power. In addition, the program provides students and educators with a hands-on, STEM-based curriculum involving resource conservation and solar monitoring. Mr. Lee further stated that electric transportation is becoming more important as a method of reducing tailpipe emissions and greenhouse gases. There are currently about 2,000 personal electric vehicles and 200 public chargers in the city, and staff is developing a program to encourage the transition from diesel to electric school buses. Staff is in the process of completing Harbor Substation. This is the Department's 14th high voltage substation and provides much needed operational flexibility to serve ongoing and future development in and around the Platinum Triangle. With regard to water initiatives, Mr. Lee stated the department continues to replace aging pipelines, and will have 23,000 feet of pipeline installed this fiscal year. Staff is targeting another 21,000 feet next year, and will continue to coordinate these replacements with other roadway projects to minimize disruption to residents and businesses. Staff is also planning to make improvements to the Linda Vista Complex, the city's largest pumping facility. Previously, the department installed a four-million gallon storage tank at the facility, and the next phase includes replacing aging pumps, motors, and electrical equipment. Water bottle fill stations are extremely City Council Minutes of June 18,2019 Page 3 of 38 popular right now, and staff developed a rebate program to help schools acquire them. So far, eight stations have already been installed at various elementary schools in Anaheim, and an additional 10 stations are expected to be installed in the summer. The rebate is being extended to other schools and as well as to city facilities. Mr. Lee reported that community engagement is a vital part of how the department delivers services to customers. During the year, staff partnered with Anaheim Union High School District and Katella High School for a mentorship program, helping 21 of their students refine their resume-writing, presentation, and interviewing skills. In April, staff partnered with Anaheim Hills Elementary School who hosted an Earth Day tree planting ceremony at their campus. As part of community outreach efforts, some of Public Utilities' employees participated in a volunteer effort to help the GOALS Academy with cleanup and wiring for a community clubhouse at the ABC neighborhood. On June 22, they will be hosting the OC Green Expo, an event featuring a test driving experience for residents interested in electric vehicles. They will also have a solar car competition for 5th- 8th grade students, and 50 booths showcasing sustainability initiatives and products, as well as activities for children. Mr. Lee shared that about 5,000 LED street light fixtures have been installed this fiscal year to help improve visibility in areas prioritized by Anaheim Police Department, Code Enforcement, and Neighborhood Services. Earlier in the year, staff hosted a community art day. Over a hundred community members participated, painting 100 inspirational messages of hope for Anaheim's temporary homeless shelters, including the 224-bed Salvation Army Temporary Shelter that was dedicated on January 31St. Staff is working with UC San Diego to acquire the equipment and schedule installations of wildfire cameras in coordination with Anaheim Fire & Rescue. Public Works Department City Engineer Carlos Castellanos presented the Public Works budget of$234,000,000, which makes up 12% of the city's total budget. One-time capital projects account for 5% of the citywide cost while recurring operating costs account for 7%. Funding for the capital improvement program comes from a combination of grants and restricted funds. Mr. Castellanos reported that the operating budget funds four divisions within the Public Works Department, including Operations and Maintenance, Engineering, Construction, and Finance and Administration. The Public Works Department plans improvements that will provide the necessary roadway, storm, and sewer capacity, and promote alternative modes of mobility. To maximize these efforts, staff seeks grant opportunities from a wide range of sources to leverage local funds. Efforts also include the implementation of new environmental policies to meet changing regulations ranging from water quality to recycling. Mr. Castellanos stated the department manages all aspects of roadway maintenance such as pothole repairs and slurry sealing, pipeline, and landscape maintenance within the street right-of- way. Other preservation activities include the upkeep of the City's fleet and facilities, which are critical to the operation of all City departments. The current and planned projects will benefit more than 30,000 residents, which include projects to close sidewalk gaps and install curb ramps for accessibility. Mr. Castellanos reported the city secured $4,000,000 in state grant funding to address missing sidewalks on multiple school routes. Engineering is scheduled for Fiscal Year 19/20, with City Council Minutes of June 18,2019 Page 4 of 38 construction beginning in Fiscal Year 20/21. The department continues to invest in the arterial roadway system to provide for a well-maintained network and meet OCTA eligibility requirements for Measure M2 funding. For Fiscal Year 19/20, seven (7) projects have been identified with segments on Broadway, Ball, and Euclid. In addition to Capital Improvement Projects (CIPS), the department is responsible for the maintenance and upkeep of facilities throughout the City. For example, to enhance safety response times and keep the community safe, staff will replace the roll up garage doors at Fire Station 1 with modern high speed units. Improvements will also take place at Energy Field, Eucalyptus, Twila Reid, Riverdale, and Reagan Parks. Mr. Castellanos highlighted that the department will also renovate Stoddard Park's parking lot and pathways, making its amenities more accessible, safer, and inviting to all. In October 2018, the City Council approved $1,000,000 in one-time funding for community improvements. These improvements address traffic calming, permit parking and neighborhood beautification. Of the 61 permit parking petitions in the queue, the department is on track to complete half by August, with the remaining by early 2020. As for traffic calming, of the 63 petitions they are scheduled to complete half by fiscal year end. Mr. Castellanos stated that this upcoming year, the department will begin Phase 4 of the Arterial Sidewalk Repair Program to repair 14 linear miles. In 2018, Anaheim developed the Smart City Roadmap. The core of this initiative involves upgrades to the telecommunication infrastructure with 5G implementation, which is underway and will conclude in early 2020. The City's technology network, businesses, and residents will experience faster internet and communication. When the network is complete, it will create new opportunities for enhanced service delivery. With the integration of the City's Project ViewFinder with Andy's Map, Mr. Castellanos reported residents are now able to view both private development and public projects concurrently on the same map, and identify the general scope of the project, timeline, and points of contact. The department continues to engage the community. As part of Public Works Week in May, they hosted students from Olive Elementary, which is across the street from the maintenance yard on Vermont. Mr. Castellanos stated that Public Works is committed to planning, building, and preserving the city's infrastructure to enhance the quality of life for Anaheim residents. Planning and Building Department Deputy City Manager David Belmer presented the Planning and Building budget for Fiscal Year 19/20 is roughly$26.1 million, which equates to 1% of the total City budget and 5% of the General Fund budget. The department is largely supported by the General Fund, along with restricted grants and fees. With respects to non-general fund sources, Community Block Grants are the department's single largest funding source. Mr. Belmer reported the core serves of the department include Planning Services, Building Division, and Community Preservation/Licensing. The department consist of 76 full time and 39 part time employees, equating to 104 full time employees. Mr. Belmer presented notable changes to the budget which include Animal Control efforts, the Community Development Block Grant, and the Coyote Outreach Program. He shared the Community Development Block grant funds code enforcement activities and CDBG eligible areas decreased by$75,000. The Coyote Outreach Program was augmented by$85,000 to fund a part time position to help in monitoring and working with the community in regards to the Coyote City Council Minutes of June 18,2019 Page 5 of 38 Outreach and about $50,000 for miscellaneous expenditure, which will include public information and additional trapping services, as needed. Mr. Belmer highlighted the Minor Conditional Use Permits program which helps residents and businesses seeking entitlements through a quick and less expensive process. He also highlighted the Historic Preservation program. The program currently has 366 Mills Act properties, making it the third largest Mills Act program in the State. The department is in the process of creating Architectural Style Guides to promote the preservation of Anaheim's historic resources by providing historic property owners an easy to understand tool to assist in the preservation of their properties. Mr. Belmer stated that Andy's Map is a great tool the department uses to communicate with the community with regard to development projects, with over 20,000 views since its release. To assist with design and architectural issues and ensure compatibility with the conjoining properties, the CoLab (Anaheim Urban Design Collaborative)was created in partnership with the Community and Economic Development Department. Mr. Belmer highlighted in-fill housing projects around Anaheim which would bring over 460 new housing units. He provided an update on the Platinum Triangle which includes a new development around the Honda Center, the JPI housing development with 1,100 new housing units, and 15,000 square feet of retail space, and the Lennar project with two new for sale projects with will include 238 for-sale units. Mr. Belmer also highlighted the opening of Star Wars Galaxy's Edge and noted there are five hotel projects underway in the Resort Area. With regard to major projects, he spoke of the Beach Boulevard Specific Plan which is now in the implementation phase. He stated that this was an interdepartmental effort and shared that marketing videos are being created to inform residents, businesses, and developers of the opportunities that exist along Beach Boulevard. He spoke of the CTRCity Corridor Plan along Anaheim Boulevard and Harbor Boulevard which was awarded a Southern California Association of Governments grant. Staff is currently conducting an existing conditions and opportunities analysis which will set the stage for new things along Anaheim Boulevard and Harbor Boulevard. Mr. Belmer reported that the last General Plan update was conducted in 2004. The department is seeking grants to help kick start the Citywide General Plan Update. The Code Streamlining and Improvement Program, which has received several awards, is the City's effort to make it easier to do business in Anaheim. The Brew City initiative is under way with 20 breweries set to open in 2020. Community and Economic Development Department Community and Economic Development Director John Woodhead presented the Community and Economic Development Department's budget for Fiscal Year 2019/2020. He reported that the department has a Fiscal Year proposed financial uses budget of$226.2 million, making up 11% of the citywide proposed financial uses budget. The Department receives less than 1% of resources from the General Fund, with $2.2 Million used for the city's economic development priorities and obligations. The Department primarily relies on Non-General Fund Resources, including: 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 City Council Minutes of June 18,2019 Page 6 of 38 with AIDS Program, as well as funding from the State via the federal Workforce Innovation and Opportunity Act. In addition to restricted grants, non-general fund resources utilized by the Department include funding from the former Redevelopment Agency's affordable housing assets and the Redevelopment Property Tax Trust Fund for the unwinding of the former Redevelopment Agency's affairs. Mr. Woodhead reported that the department's operating budget is $185.5 Million, 2.1% of which is allocated to administrative costs with the remainder allocated to delivering the department's services. Those services generally consist of preserving, improving, and expanding the supply and accessibility to affordable housing options in the City, providing a wide range of job training services and employment opportunities to our residents, promoting business growth and expansion in Anaheim, and leveraging non-discretionary funding for investment in our communities. Mr. Woodhead highlighted one of the core functions of the department, which is to assist individuals and families to live in decent, safe and affordable housing in Anaheim. He stated that in Orange County, the Anaheim Housing Authority has led the way in addressing the housing needs for some of the most vulnerable populations and was acknowledged for doing so by the newly elected Governor, who stated in a recent press release that Anaheim was an example of a City"doing things the right way". Mr. Woodhead reported that the department is actively working on several affordable housing deals in various stages of discussion and development. The plan includes the expansion of Permanent Supportive Housing (PSH), a specific type of housing that combines rental units with comprehensive social services specifically for persons exiting a chronical homeless situation. This type of housing is critical to continue addressing and reducing homelessness in the City. PSH units will be included at the following new developments; El Verano, Manchester/Orangewood, and the EconoLodge. In total, these new sites will add over 150 new PSH housing options to an already existing inventory of 95 PSH units in Anaheim, bringing the total PSH count to 245 in the near future. This count does not include units which may come on line at the Salvation Army site on Lewis, which has the potential to put Anaheim's PSH inventory count at or above 495 units. The ACC-OC has called upon all cities in Orange County to do their part in addressing homelessness in the region and as part of their regional allocation plan, has suggested that Anaheim develop 303 PSH units over the next few years. Mr. Woodhead stated the department is also looking to add to the stock of affordable housing for families by initiating development of Housing Authority owned parcels at Manchester/Orangewood, Karcher Way, and continuing neighborhood revitalization efforts in the Avon-Dakota Neighborhood. The department is exploring a new housing development model to bring forth mixed-use, mixed-income developments at key corridors, including Beach and Lincoln in West Anaheim. The Department also continues the Section 8 Housing Choice Voucher program, a critical resource in addressing affordability issues. The Section 8 program provides assistance to approximately 6,000 households, which represent 3,624 children, 3,445 seniors and 2,748 persons with a disability. The Section 8 Program is preparing to open the tenant- based waiting list for the first time since 2014. Extensive planning is currently underway to ensure that the community is aware of the opportunity to apply. City Council Minutes of June 18,2019 Page 7 of 38 Mr. Woodhead reported that under the umbrella of Business Attraction, Retention, and Workforce Development, the Economic Development team launched an Entrepreneurship Academy in partnership with the Orange County Small Business Development Center. The eight-week academy included business fundamentals, leadership, and management training. Throughout the training, the City's Economic Development Team, comprised of Economic Development, Workforce Development, Planning & Building, and Public Utilities, provided presentations on starting and growing a business in Anaheim. Given the success of the inaugural training, the second entrepreneurship academy will begin in September 2019. In a continued effort to build on Anaheim's position as a global business destination, the department recently developed a branding and marketing campaign which highlights the Economic Development Team as a one-stop business resource to locate, grow, or expand in Anaheim and reinforces Anaheim as a proactive business partner. In recognition of their efforts, the Anaheim Economic Development Team received the Community Excellence City award at the 2019 Small Business Week Awards Program for its 2018 efforts to assist Anaheim businesses. The team assisted more than 100 businesses with locating expansion sites, assisted thousands of job seekers with training and job placement opportunities, streamlined approvals for over 800 businesses, and issued $1.5 million in commercial utility rebates and incentives. Mr. Woodhead further reported that this year, the Workforce Division revamped its name in an effort to better serve our Anaheim partners, businesses, and job seeking community. The Workforce Division is now called the Anaheim Workforce Connection. Due to the strength of the current job market, the department did not host the long standing job fair for the general labor force. However, on June 1st, the Workforce team hosted the Youth Job Fair with over 500 youth in attendance. The department continued its commitment to this event as part of efforts to address the needs of youth as a Citywide priority and this event in particular, continues to grow in popularity and attendance. Currently the Workforce Division has been conducting industry sector round tables with the four largest industries in Orange County, which include Hospitality and Tourism, Manufacturing, Healthcare, and Information Technology. The purpose of these roundtables is to better understand the future of the local workforce and industry needs. In the area of Economic Development, Mr. Woodhead shared that the department continues to work on strategic development. This past January, FRAN (Free Rides Around the Neighborhood) made her debut. This new micro-transit service was launched in partnership with the Anaheim Transportation Network. Riders are able to request a ride through the CTRCity phone application, where electric vehicles pick up residents and visitors at local hotspots. Starting this summer, it is anticipated that FRAN will begin providing service to Center City residents at their front door. The FRAN fleet is comprised of all electric GEM vehicles, made here in Anaheim by Polaris. This past May, the shell and core of Leisuretown, operated by the esteemed Modern Times Brewery, was completed. This brewery compound will feature a production brewery, restaurant, restored Craftsman home, and beautifully designed gardens with a leisure pool. Leisuretown is scheduled to open by the end of the year. Mr. Woodhead stated that there is significant progress in the construction of The Westin Hotel (formerly the Anabella Hotel), which closed escrow in December of 2018. The Westin Development included an exchange of property owned by the City and the developer which generated $4,665,450 in revenue for the City. Once completed, the Westin Hotel will have: 618 rooms, two ballrooms, nine meeting rooms, rooftop bar/lounge area, and signature restaurants. It is estimated that this project will create 1,969 temporary construction jobs and 514 permanent jobs. The total project cost is $325 million dollars. In addition to the Westin, construction commenced on the Radisson Blu Hotel in March 2016. The Blu will host 326 rooms and a City Council Minutes of June 18,2019 Page 8 of 38 rooftop pool and restaurant. It is estimated that this project will create 300 temporary construction jobs and 140 permanent jobs. The total project cost is $180 Million dollars. Both hotels are expected to be completed by summer 2020. And finally, the JW Marriot Hotel, also under construction, will host 447 rooms, a signature restaurant, and a rooftop bar and lounge where guests can enjoy the nightly firework shows. This project is estimated to create 1,800 temporary construction jobs and 500 permanent jobs. The total project cost is $283 million dollars. The Department has a number of exciting opportunities that will present themselves in Fiscal Year 2019-2020. It is continuing to makeprogress on the Northgate Property. The department has been actively working with two separate non-profit organizations to continue to evolve the vision for the site, identify funders, and begin to activate the space with youth focused programming. As currently envisioned, the site will be a safe place for youth to explore entrepreneurial interests and passions, be exposed to alternative career pathways, and be given opportunities for leadership development as well as mentorships. They are moving forward in the implementation of the Parking Guidance System. This guidance system will collect real time parking availability and display the number of available spaces on monument signs in front of each parking structure for the substantial parking assets in Center City. This data will also be available via the CTR City Anaheim mobile application, available on Google Play Store or the Apple Store, allowing visitors to easily and quickly navigate to the available parking. This technology coupled with FRAN, the City's free micro-transit system, should alleviate the need to circle the destination looking for a parking space. Mr. Woodhead shared that for the past several months, the developer of 39 Commons has been actively negotiating with prospective tenants for the project, including discussions with grocery market chains. During these discussions, it became apparent that the markets were more inclined to consider the project site if new residential units were planned to be built on or near the site. To that end, staff was able to modify the Beach Boulevard Specific Plan to allow for a three acre parcel at 39 Commons to be designated for residential use. The developer has refined the site plan to incorporate this change, and has re-engaged with lease negotiations. The site plan changes also resulted in developing new construction cost estimates to reflect the added cost of building on the former landfill. The combination of these efforts will result in modifications to the Development Agreement; but most importantly, we now have a viable mixed-use site plan to offer to the community. The City and developer are committed to expeditiously implementing the new plan and be under construction in early 2020. Convention, Sports & Entertainment Department Convention, Sports & Entertainment Executive Director Tom Morton presented the Convention, Sports & Entertainment budget which totals a little more than $91 million, of this total $5 million will be used to fund Capital Projects, or other non-operating. The department's operating budget makes up approximately 4% of the total City budget and 3% of the City's General Fund. The general fund expenditures includes $14 million of debt service. Mr. Morton reported that the Convention, Sports & Entertainment Department is an enterprise fund that is responsible for generating revenues to offset expenses necessary for operations. The department manages the day-to-day operations of the Anaheim Convention Center and administers the agreements for Visit Anaheim, ARTIC, Angels Baseball, Honda Center, and the City National Grove of Anaheim. The Convention Center itself represents over 70% of this budget, which includes mostly labor and debt service. Labor, which includes only 85 fulltime City Council Minutes of June 18,2019 Page 9 of 38 employees and a large event driven part-time pool. Visit Anaheim, the City's destination marketing organization, receives approximately 20% of the budget by way of pass-through funding from a self-assessment district of hotels in the Anaheim Resort and Platinum Triangle. Mr. Morton advised that in operating through the Anaheim Way philosophy, both of the mega- annual conventions, NAMM and Natural Products, experienced record attendance of 115,000 and 86,000 respectively as they expanded into ACC North. At the beginning of this month, Anaheim hosted the super bowl of international travel trade shows, IPW. This event brought over 6,000 travel tour operators and media, from over 70 countries to book their future US travel. History has showed that the host city has experienced an increase in travel between 700,000 to 1,000,000 guests over the next three years. Visit Anaheim has already re-booked events such as the Helicopter Association International, Hilton's and Marriott's National Meetings, and ensured the return of D23, WonderCon, and VidCon which have now grown into ACC North. Furthermore, the Star Wars Celebration, an event last held in Anaheim in 2015, will return in 2020. In addition, Visit Anaheim has taken advantage of the flexible space in ACC North to secure high demand medical conventions like the American Association for the Study of Liver Diseases, Association of Operating Room Nurses, Society of Critical Care Medicine, and the American Society for Microbiology and American Association of Nurses to name a few. Mr. Morton reported that Angels Baseball surpassed 3,000,000 fans for the 15th straight year last year. Prior to the start of this year's season, arguably the game's best player, Mike Trout, signed a 12-year contract which will assure his presence in an Angels uniform well into the future. One of baseball's great stories last year, Shohei Ohtani returned to action in early May. His strong performance on the mound and in the batter's box led to American League Rookie of the Year honors in 2018. This year the Angels are seeking to extend their streak of 16 consecutive seasons drawing at least 3,000,000 fans and finding their way to back to a World Series title. Mr. Morton highlighted that the Honda Center projects to host 115 events/concerts/shows with an attendance of over 1.2 million. This year, fans enjoyed concerts by Justin Timberlake, KISS, • Pink, and sporting events such as the NCAA West Regional, Four Continents Figure Skating Championships, the Los Angeles Lakers and, of course, Anaheim Ducks hockey.. As part of the many venue enhancements throughout the years, Honda Center is currently in the process of replacing the seating in the upper bowl and remodeling the concert club and locker rooms and just this past November, City Council approved a set of agreements and amendments that will keep Anaheim Ducks hockey in the Honda Center for at least another 25 years. Mr. Morton further reported that the City National Grove of Anaheim projects a total of 221 events this year with over 110,000 guests. The venue, purchased by the City of Anaheim in 2002, is celebrating its 20th anniversary as a concert venue and in 2018, was voted as the Orange County Favorite for the Live Music Venue category by the readers of the Los Angeles Times. The Honda Center City Council action in November of last year, ATCM, an affiliate of H&S Ventures, assumed day to day management of ARTIC on February 1 and will also assume the City's annual general fund operating obligation of$2.5M beginning July 1. DISCUSSION: Mayor Sidhu thanked all the departments for their budget and planning efforts. Mayor Pro Tern Kring thanked the departments for their presentations and for their continued efforts in providing quality services to the visitors and residents of Anaheim. City Council Minutes of June 18,2019 Page 10 of 38 In response to Council Member Faessel's inquiry, Mr. Lee advised that some wireless providers such as Verizon and AT&T will install their own towers with the City's assistance which is why it is listed as a separate project. Council Member Faessel expressed his support for the Anaheim Workforce Connection and the Northgate Market Project. Council Member Moreno thanked staff for their budget process which includes support for the residents. In response to Council Member Moreno's inquiry regarding residents' involvement in the budget process, Mr. Lee advised that resident participation can help affirm that initiatives make sense and noted their feedback is very beneficial in decision making. Mr. Castellanos also noted that funding for traffic calming and parking permit petitions has been well received by the community. Mr. Belmer noted the public has received the affordable housing elements very well. Mr. Woodhead noted the public received the public parking system and FRAN very well. Mr. Morton advised the public forum allows his department to convey plans to the public. In response to Council Member Moreno's inquiry, Mr. Castellanos advised there is not a long term in funding for traffic safety. However, he noted that$400,000 of the $1,000,000 remains for traffic calming efforts and the process includes several departments. He also noted the process is going as fast as possible. In response to Council Member Moreno's inquiry, Mr. Woodhead advised the Willdan Building would require significant planning before it can be used for performing arts non-profits. Council Member Moreno would like to see budget augmented to include the rehabilitation of the Willdan Building to house arts programs, provide gap funding for the completion of the Downtown Anaheim Community Center Park, and to access for a stand-alone senior center. Council Member Brandman expressed his support for rehabilitation of the Willdan Building and the completion of the Downtown Anaheim Community Center Park. City Manager Chris Zapata thanked City staff for making sure that Anaheim stays green through its watering efforts which he attributes to the long-term vision and great maintenance. Mayor Sidhu opened the public comments and seeing no speakers, closed the public comments. At 4:19 P.M., Mayor Sidhu recessed the Anaheim City Council meeting and reconvened at 5:02 P.M. MEMBERS PRESENT: Mayor Sidhu and Council Members Kring, Brandman, Moreno, Faessel, and O'Neil. Council Member Barnes joined the meeting at 8:56 P.M. STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk Theresa Bass. Senior Assistant City Attorney Kristin Pelletier participated in the Public Comment portion of the meeting and the discussion of Item No. 29. INVOCATION: Pastor Edward Wiafe, Messiah Pentecostal Ministry City Council Minutes of June 18,2019 Page 11 of 38 FLAG SALUTE: Council Member Jose F. Moreno PRESENTATIONS: Recognizing Anaheim Public Utilities 2019 Bottled Water Label Art Contest Winners Andrew Markis, Resource Program Specialist, Anaheim Public Utilities, provided a brief history of the program and presented proclamations to the two winners Zetchenka Gonzalez, entering fourth grade at Benito Juarez Elementary, and Isabella Carvajel, entering fourth grade at Acaciawood Preparatory Recognizing U.S. Service Academy Appointments Kyle Villacorta and Jacqueline S. Yeo Mayor Sidhu recognized the appointment of both Kyle Villacorta to the U.S. Air Force Academy and Jacqueline Yeo to the U.S. Merchant Marine Academy. Both nominees spoke about their experience and the application process. Council Member Brandman congratulated the honorees and presented them with their proclamations. Recognizing the Anaheim Elementary School District's "Make Music Day Anaheim" Mark Anderson, Music Curriculum Specialist, Anaheim Elementary School District, spoke briefly about the event, encouraged the public to attend on June 21, and accepted the proclamation from Mayor Sidhu. Acceptance of Other Recognitions (To be presented at a later date): Recognizing June 20, 2019, as World Refugee Day Recognizing July 2019, as National Parks and Recreation Month Pamela Galera, Parks Manager, thanked City Council for the recognition. At 5:25 P.M., Mayor Sidhu called to order the Anaheim Public Financing Authority, Anaheim Housing and Public Improvements Authority, and Anaheim Housing Authority(in joint session with the City Council). ADDITIONS/DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS: Prior to receipt of public comments, an outline of new rules for public comments and a brief decorum statement was provided by City Clerk Theresa Bass. Cecil Jordan Corkern, Outreach Homeless Ministries, expressed his concern regarding safety at schools and at the new Star Wars: Galaxy Edge. Richard Rowan, STR owner, encouraged City Council to pass Item No. 29 as his property brings about$20,000 a year in TOT to the city. City Council Minutes of June 18,2019 Page 12 of 38 Cathryne Warnock, rental owner, expressed her support for Item No. 29 and encouraged City Council to pass the item. Zhong Luo spoke in support of short term rentals as they provide affordable options for family vacations. Kandee Beas encouraged City Council-to pass Item No. 29 because it provides alternatives for visitors who prefer to stay at a home over hotels at a discounted price, helps downtown restaurants and eateries, and supplements income for retirees. Art Beas spoke in support of short term rentals, noting that STR owners have abide to all rules and regulations and in some instances they have enhanced property value. Talmadge Price commented that moratorium was set by previous Council Members and David Belmer conducted a thorough study that lead to the strictest rules and regulations. He reported that it has been difficult for STR owners within the last three year and currently there are now less than 300 STR operating and there will be less than 200 after August 11. He further stated that in 2015, there were over 800 notices of violations. After rules and regulations were put in place only 48 fines on STR in 2018, which has have worked remarkably well. Randy Lahr spoke in support of Item No. 29 and encouraged City Council to pass the item. Roke Ghodsi commented that guests prefer to stay at short term rentals due to medical conditions. He stated that he previously leased his property and would only receive complaints, as result he encourages Council to support short term rentals. Kori Egland spoke in support of short term rentals and shared her neighbor's homes is well kept, guest are respectful and there are no late parties or loud music. Rachel Garcia stated that the short rental properties increase property value and properties are taken care of. George Goglanian reported that he operates a short term rental (STR) in full compliance with no complaints. He shared that professional manager screen guests to ensure all rules are followed and that STRs provide employment to local residents and small businesses, options to families, and brings millions of tax revenue to city year after year. Everett Ybarra shared that he diligent in observing all STR ordinances, pays all required taxes, which equates to about$20,000 a year, and has never had an incident at his property. Matt Biel shared statistics and expressed that STR important part of Anaheim. Millennials views cities that ban STR as unfriendly and unwelcoming, which is not Anaheim. Howard Kung shared that he became a STR owner after living next to STR. The owner did a great job remodeling house which improved the look of neighborhood and he invested in a STR to provide supplemental income for his family. He has never had a problem with city or his neighbors and stated that he took a neglected house and made it the nicest house on the street. City Council Minutes of June 18,2019 Page 13 of 38 Shari Watson manages STRs and shared that she checks cameras every night. She stated that her guests are compliant and follow the rules, and has never received a call from neighbors with any complaints. Mike McNally commented that STRs are positive effect to neighborhood and stated that Anaheim is tourism Emily Stamets, STR owner, expressed support for Item No. 29 and shared that she moved to San Diego and now rents her property as a whole vacation home. Her neighbors are thrilled on how everything has been run. Tyler Stamets expressed his support for Item No. 29 and encouraged City Council to pass the item. John Noteboom, STR owner and 22 year resident, expressed his support for Item No. 29 and encouraged City Council to pass the item. Ana Maria expressed her support for Item No. 29 and encouraged City Council to pass the item, as Anaheim is a welcoming city. Adam Waugh stated that STR when run well, are just like long rentals, but serve as more tax revenue for Fire, Police, roads etc. He supported higher tax revenues, a small number of well-run STRs that are valued members of neighborhood, and a working system to ensure it stays that way. Frances Noteboom, Co-founder of ARA, urged for equal protection under the proposed ordinance that is fair,just and lawful to all stakeholders. Eric Froberg expressed his support for Item No. 29 and encouraged City Council to pass the item. Maria Estrada is an employee for an STR and stated that it helps support her family. Cecila Wade expressed her support for Item No. 29 and encouraged City Council to pass the item. Pete Fischer shared his has owned an STR since 2013 and believed STRs provide a private, open, clean and safe environment to visitors. He stated that visitors with serious cognitive disabilities require a space that hotels cannot provide, such as full access to a kitchen and space for medical equipment. Paul Hyek encouraged City Council to support homeless efforts. Paula Ziberman commented that STR owners are responsible, reliable and caring people that keep properties well-maintained properties. She stated that STRs are an asset to the city and neighborhood. Vali Nitu expressed his support for Item No. 29 and stated that STRs are family oriented and provide options to families that cannot afford hotels and require special accommodations. City Council Minutes of June 18,2019 Page 14 of 38 Elisabeth Acevedo urged Council to support for Item No. 29, as STRs help her support her and her family Hannah Ramirez urged Council to support for Item No. 29 and shared that her parents work for vacation rentals to support the household. Hilary Ramirez expressed her support for Item No. 29 and shared that she works for vacation rental to support her family. Valerie Van de Zilver expressed her support for Item No. 29 and encouraged City Council to pass the item. Adam Wood, Building Industry Association of Orange County, expressed his opposition for Item No. 34 and encouraged City Council to reject the item, as rent control is not supported by City of Anaheim and reduces supply of housing, which closes the door on future generations. Jan Matson, 22-year resident from District 4, expressed her opposition for Item No. 29 and shared she lives next door to a STR that when occupied is noisy and Ubers stops in front of house at all times. She expressed that living next to a STR is no different than leaving next to a Motel 6. Victor Cao expressed his opposition for Item No. 34 and encouraged City Council to reject the item. R. Joshua Collins, Homeless Advocates for Christ, expressed his support for Item No. 34 and encouraged City Council to pass the item to support seniors that are facing rent increase. Michael Connelly commented that STRs rules and regulations are in place and have worked remarkably well, resulting in a decrease in complaints and fewer violations. He remarked that Code enforcement is available to respond day and night. Sharon Martin shared she lives in Rancho La Paz where they are experiencing increases in rent, parking and RV storage spots and felt that John Saunders does not care to negotiate the terms with its residents. Cheryl Moi expressed her support for Item No. 34 and shared that there have been two deaths related to tension and fear, there are approximately 50 houses for sale at Rancho La Paz, and the property is falling apart. She urged Council to provide some support and assistance. Teresa Raridan, resident in Rancho La Paz, reported that rents increased by 44% and it is impacting all mobile park owners. Linda Nguyen expressed her opposition for Item No. 29 and encouraged City Council to reject the item.. Tony Nguyen expressed his support for Item No. 29 and stated STRs are better than long term rental. Dan Firestone expressed his support for Item No. 29 and encouraged City Council to pass the item. Owner and supports STR. City Council Minutes of June 18,2019 Page 15 of 38 Mike Robbins expressed his opposition for Item No. 29 and his support for Item No. 34. He reported that rent control measures are in place in many cities that protect workers and the elderly. With regard to STR, he stated that he supported neighborhoods not stranger hoods Genoveva Garcia DeVera, Rancho La Paz resident, expressed her support for Item No. 34 and shared that people are sad and suffering of stress, leaving their homes. She urged Council to pass the item to support seniors and veterans with a favorable solution. Maria Carpio expressed her support for Item No. 34 and encouraged City Council to pass the item. Sharon Curry expressed her support for Item No. 34 and urged for Rancho La Paz rent stabilization. Leonel Velazquez expressed his support for Item No. 34 and encouraged City Council to pass the item. Mark Richard Daniels expressed his support for Item No. 34 and urged Council to help those people in need. Martin Lopez, Anaheim Resident, expressed his opposition for Item No. 29 and his support for Item No. 34. He urged Council to continue the ban on STRs and to do what is right on protecting the residents of Rancho La Paz. Olivia Chavez expressed her support for Item No. 29 and shared that she works cleaning rental house to support her family. Shannon Luo expressed her support for Item No. 29 and encouraged City Council to pass the item. Min Chen expressed her support for Item No. 29 and encouraged City Council to pass the item. Rosa Bond, Anaheim resident, urged Council to pass Item No. 34 in order to support families that cannot afford high rent cost. Vincent Zhong expressed his support for Item No. 29 and encouraged City Council to pass the item. Peter W. Page expressed his opposition for Item No. 29 and encouraged City Council to end STRs. Maria Ruiz expressed her support for Item No. 34 and urged Council to stop the rent increases. Jose Paolo Magcalas expressed that families cannot afford to live in this community and funding in school is decreasing. He urged Council to support rent control. Bobby Donelson expressed his opposition for Item No. 29, stating the City made a commitment and the original ordinance should be honored. City Council Minutes of June 18,2019 Page 16 of 38 Duane J. Roberts expressed his support for Item No. 34 and encouraged City Council to pass the item. He also expressed his opposition to Item No. 29 and encouraged City Council to reject the item. Need rent control. Terri Lavoot expressed her opposition to Item No. 29 and encouraged City Council to reject the item. Leonard Alcala II expressed his support for Item No. 29 and encouraged City Council to pass the item as he supports vacation rentals. Jacquelyn Lang expressed her support for Item No. 29 and encouraged City Council to pass the item as she has been a STR owner since 2016, generates tax revenue for the city, and has not had any problems. William Fitzgerald, Homeowners Maintaining Our Environment, expressed concern regarding Anaheim's support of the LGBTQ Community. Paul Wilfong expressed his opposition to Item No. 29 and encouraged City Council to reject the item, stating residential zones were not for businesses. Adam Oitke expressed his opposition to Item No. 34 and encouraged City Council to reject the item as rent increases were sometimes necessary. Lynn expressed her opposition to Item No. 29 and encouraged City Council to reject the item as there was too much foot traffic in her community which was meant to be for single family residences. Jim Drake expressed his opposition to Item No. 29 and encouraged City Council to reject the item. •He believed visitors would still come to Anaheim and stay in hotels and suggested STR owners get together to buy a hotel to recuperate their money. Joan V. Miller expressed her opposition to Item No. 29 and encouraged City Council to reject the item, citing the need for peace and quiet. Lorena Ceja expressed her support for Item No. 34 and encouraged City Council to pass the item. Genoveva Camarillo expressed her support for Item No. 34 and encouraged City Council to pass the item to support residences, stop unfair rent increases, and provide housing with dignity for all. Julie Brunette expressed her support for Item No. 29 and commented that workers and cleaners of STRs have disabled children and earn their living from this. Renee Mazeroll expressed her support for Item No. 34 and encouraged City Council to pass the item, stating a Lives on Veteran's pension. It's a nice place to live. Obligation to seniors. 44% increase in a year was untenable. Cecile Eveland expressed her opposition to Item No. 29 and encouraged City Council to reject the item. She believed property, civil, and human rights had been violated. City Council Minutes of June 18,2019 Page 17 of 38 - Laura Nelson expressed her support for Item No. 34 and encouraged City Council to pass the item as a step to addressing homelessness. Luis Loera expressed his opposition to Item No. 29 and encouraged City Council to reject the item and stick to the initial ban of STRs. Keith Christian expressed his support for Item No. 34 and encouraged City Council to pass the item. He also expressed his opposition to Item No. 29 and encouraged City Council to reject the item. John Hodges expressed his support for Item No. 34 and encouraged City Council to pass the item, sharing his rent increase. Veronica Moran expressed her support for Item No. 34 and encouraged City Council to pass the item to assist families. Martha Rodriguez expressed her support for Item No. 34 and encouraged City Council to pass the item to provide fair housing at fair prices and allow families to focus on the education of their children. Thomas Fielder expressed his support for Item No. 34 and encouraged City Council to pass the item to help people to stay in their homes. Alejandra Capistran expressed her support for Item No. 34 and encouraged City Council to pass the item to provide dignity and respect to all families. Alma Chavez expressed her support for Item No. 34 and encouraged City Council to pass the item. Bill Bailor, Muzeo Chief Executive Officer, expressed his support for Item No. 32 and encouraged City Council to pass the item. Liz Zheng, STR owner, expressed her support for Item No. 29 and encouraged City Council to pass the item. Christina Irigoyen expressed concern regarding actions of the Anaheim Police Department and expressed concerns of sexual harassment by the officers. Mayor Sidhu asked City Manager Zapata to follow up on Ms. lrigoyen's concerns. James Su expressed his support for Item No. 29 and encouraged City Council to pass the item as his family frequently stays in STRs when on vacation. Cynthia Guerra expressed her support for Item No. 34 and encouraged City Council to pass the item to assists renters and not cause additional homelessness. Roger Brannen expressed his support for Item No. 34 and encouraged City Council to pass the item. City Council Minutes of June 18,2019 Page 18 of 38 Christine Schachter expressed her support for Item No. 34 and encouraged City Council to pass the item. Bill Christiansen, Vice-President, Apartment Association of Orange County, expressed his opposition to Item No. 34 and encouraged City Council to reject the item, stating the City has done a fantastic job with increasing multi-family housing. Jeanine Robbins expressed her support for Item No. 34 and encouraged City Council to pass the item. She also expressed her opposition to Item No. 29 and encouraged City Council to reject the item. Isa Bahu encouraged City Council to defer consideration of Item No. 28 to allow the appellant to consider additional options regarding the property. Kristine Parriagua expressed her support for Item No. 34 and encouraged City Council to pass the item as rent increase were leading families to homelessness. Esther Gomez expressed her support for Item No. 34 and encouraged City Council to pass the item. Jennifer Vicktoria Rodrigues expressed her support for Item No. 34 and encouraged City Council to pass the item. Fred Cornejo expressed his opposition to Item No. 29 and encouraged City Council to reject the item and asked Council to not let STRs operate in residential neighborhoods. Steve Acterman expressed his opposition to Item No. 29 and encouraged City Council to reject the item and uphold their commitment, stating STRs do not provide jobs or create tax revenue. Stephanie Torres expressed her support for Item No. 34 and shared the impacts to families due to rent increases. Adam Overton commented that unjust rent increase and poor wages results in an increase in homelessness. Trina Tran shared she has operated an STR with no complaints or violation and stated that STRs enhances the neighborhood and provide extra income to families and the city. James Luo commented that owners of STRs are civil and long term residents that provide a positive contribution to community. Robert Luo expressed his support for Item No. 29 and stated that STR serve as Tax revenue that benefit schools and neighborhoods. Judy Dai expressed her support for Item No. 29 and encouraged City Council to pass the item. Vern Nelson expressed his support for Item No. 34 and his opposition to Item No. 29. City Council Minutes of June 18,2019 Page 19 of 38 Michael Juarez expressed his opposition for Item No. 29 and shared the issues he has had with Noise, traffic and rudeness of guests that do not follow rules. STRs are not in the best interest of the community. Carlos Rodriguez expressed his support for Item No. 34 and shared he received a $360 rent increase. Dave Duran expressed his support for Item No. 34 and was concerned with taxpayer's money being spent in negotiations with Angels. Pat Davis expressed her opposition for Item No. 29 and encouraged Mayor Sidhu to refrain from appointing himself to the Orange County Housing Trust Board. Rebecca expressed her opposition for Item No. 29 and encouraged City Council to reject the item. Wes Jones expressed his opposition for Item No. 29 and his support for Item No. 34. Jackie Wan, Business owner and resident of Anaheim, stated she has no problems with STRs. They are the best houses in neighborhood, which are well-maintained and brings value to neighborhood. Siriboto Rareba expressed his support for Item No. 29, but rrresponsible owners with STRS should be banned. Kenneth Batiste expressed his opposition for Item No. 29 and support for Item No. 34. He stated that STRs destroy neighborhoods with a new neighbor every 2-3 days. It felt that STRs are not safe, robes from funding to school districts, and contributes to homelessness. John Nguyen stated his support for Item No. 29 and it provided extra money from travelers. Robin McCormick expressed her support for Item No. 29 and encouraged City Council to pass the item. Tim Pham expressed his support for Item No. 34 stating the economy has changed and wages do not keep with living cost. CITY MANAGER'S UPDATE: In response to Council Member Moreno, City Manager Chris Zapata reported no meetings with the Angels were held over the last two weeks. At 9:55 P.M., Mayor Sidhu recessed the City Council to consider the Anaheim Housing and Public Improvements Authority, Anaheim Housing Authority, and Anaheim Public Financing Authority agendas, reconvening at 10:03 P.M. CONSENT CALENDAR: At 10:03 P.M. the Consent Calendar was considered with Council Member Brandman pulling Item No. 10; Mayor Sidhu pulling Item Nos. 28 and 29; and Council Member Moreno pulling Item No. 30 for separate discussion and consideration. City Council Minutes of June 18,2019 Page 20 of 38 MOTION: Mayor Pro Tern 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 Barnes. ROLL CALL VOTE: AYES — 7: (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES—0. Motion carried. 8105 9. Receive and file the Budget, Investment and Technology Commission's recommendation letter dated June 12, 2019 regarding the fiscal year 2019/20 proposed budget. D117 11. Approve the Investment Portfolio Report for May 2019. AGR-11572 12. Award the contract to the lowest responsible bidder, HYM Engineering, Inc., in the amount of$148,877.50, for the Nohl Ranch Road and Nohl Canyon Road Intersection Improvements Project, determine said project is categorically exempt under the California Environmental Quality Act pursuant to Sections 15301, Class 1, and 15302, Class 2, of Title 14 of the California Code of Regulations, and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 13. Award the contract to the lowest responsible bidder, Alfaro Communication Construction, AGR-11573 Inc., in the amount of$338,679.40, for the Anaheim Boulevard and Water Street Traffic Signal Installation Project, determine the project is categorically exempt under the California Environmental Quality Act under Sections 15301(c) and 15303(d) of the California Code of Regulations and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 14. Award the contract to the lowest responsible bidder, Asplundh Construction, LLC, in the AGR-11574 amount of$434,254.50, for the Alberta, Ohio, Redondo, Pioneer and Turquoise Match Fund Street Light Project, determine said project is categorically exempt from the California Environmental Quality Act pursuant to Sections 15302(c), 15303(d), and 15303(e) of Title 14 of the California Code of Regulations and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. 15. Award the contract to the lowest responsible bidder, Caliagua, Inc., in the amount of AGR-11792 $9,600,897, for the construction of the Linda Vista Complex Pump Station Improvement Phase 2 Project(project), determine said project is categorically exempt from the California Environmental Quality Act pursuant to Sections 15301(b), 15302(c), 15303(d), and 15304(b) of Title 14 of the California Code of Regulations, and authorize the Finance Director to execute the Escrow Agreement pertaining to contract retentions. AGR- Approve the First Amendment to Agreement with AKM Consulting Engineers, Inc., 11141.1 increasing compensation from $986,478 to $1,595,158, to provide for inspection services during construction for the project and authorize the Public Utilities General Manager to execute the amendment, and any other related documents, and take the necessary actions to implement and administer the agreement as amended. 16. Approve Amendment No. 1 to Cooperative Agreement C-3-2084 with the Orange County AGR-7968.1 Transportation Authority, in partnership with the cities of Placentia, Brea, Orange, and Santa Ana, extending the agreement until June 30, 2019, for coordination of Kraemer Boulevard/Glassell Street/Grand Avenue as part of Measure M2 Traffic Signal Synchronization Program. City Council Minutes of June 18,2019 Page 21 of 38 AGR-11575 17. Approve an Engineering Services Agreement with GHD, Inc., in an amount not to exceed $235,000, for the design of the La Palma Avenue (west of East Street) Sanitary Sewer Improvement Project. AGR-11576 18. Approve Professional Services Agreements with seven consultant companies, each in an award amount not to exceed $250,000 per work order package with a total not to exceed AGR-11577 contract amount of$1,000,000 per contract year per consultant, for as-needed pavement AGR-11578 reports and design and potholing investigation services to support the Design Services AGR-11579 Section of the Department of Public Works for a three year term with two one-year AGR-11580 optional renewals; authorize the Public Works Director to execute, administer and take AGR-11581 the necessary actions to implement the agreements; and authorize minimal changes to AGR-11582 the agreement that do not substantially change the terms and conditions of the AGR-11583 agreements, so long as such changes are determined to be minimal by the City Attorney's Office (Dynatest North America, Inc.; Geo-Advantec, Inc.; GMU Geotechnical dba GMU Pavement Engineering, Group Delta Consultants, Inc., Leighton Consulting, Inc.; Twining, Inc.; and Kana Subsurface Engineering). AGR-11584 19. Approve Professional Services Agreement with eight consultant companies, each in an AGR-11585 award amount not to exceed $250,000 per work order package with a total not to exceed AGR-11586 contract amount of$1,000,000 per contract year per consultant, for as-needed AGR-11587 environmental services to support the Design Services Section of the Department of AGR-11588 Public Works for a three year term with two one-year optional renewals; authorize the Public Works Director to execute, administer and take the necessary actions to AGR-11589 implement the agreements; and authorize minimal changes to the agreements that do not AGR-11590 substantially change the terms and conditions of the agreements, so long as such changes are determined to be minimal by the City Attorney's Office (Albert A. Webb Associates; Chamber Group, Inc.; Dudek, ECORP Consulting, Inc.; Endemic Environmental Services, Inc.; LSA Associates; Michael Baker International, Inc.; and PSOMAS). AGR- 20. Approve a Workforce Innovation and Opportunity Act Agreement with Foster Assessment 9225.D Center&Testing Services, Inc. dba FACTS, in the amount of$50,000, for the provision of skills assessment services through June 30, 2020, and authorize the Director of Community and Economic Development to execute and the Workforce Development Manager, or designee, to administer the agreement. AGR-11053.A 21. Approve Workforce Innovation and Opportunity Act (WIOA) agreements, in substantial AGR-9234.B form, for the provision of occupational skills training and on-site job training; and AGR-9625.B authorize the Director of Community and Economic Development to execute and the AGR-9506.B Workforce Development Manager, or designee, to administer agreements with the AGR-9227.8 following training contractors and their respective contract amounts: 1)WIOA AGR-9226.8 Agreements, each in an amount not to exceed $25,000 (Anaheim Transportation Network AGR-9230.6 dba Anaheim Resort Transportation; Apollo Athletics, Inc.; British American Tool & Die, AGR-9230.B AGR-9233.B LLC dba Craftsman Cutting Dies; Daly Movers, Inc.; Exim Engineering, Inc. dba AGR-10963.A American Luminaire; Machining Timesavers, Inc. dba Haas Factory Outlet—Anaheim; AGR-9222.B One-Way Manufacturing, Inc.; and Stache, Inc. dba The M & M Group); 2)WIOA AGR-9240.B agreement, in an amount not to exceed $40,000 (Compressed Gas Systems, LLC); 3) AGR-9220.8 WIOA agreements, each in an amount not to exceed $50,000 (Career Networks Institute AGR-9217.8 dba CNI College; IEC US Holdings, Inc. dba US Colleges; Inter-Coast International AGR-9221.B AGR-9235.B City Council Minutes of June 18,2019 Page 22 of 38 AGR-9236.B Training, Inc. dba InterCoast Colleges; and RWM Fiber Optics, Inc.); 4)WIOA AGR-9237.B agreements, each in an amount not to exceed $100,000 (America Truck Driving School; AGR-9223.B American Career College, Inc.; Brownson Technical School, Inc.; California Truck Driving AGR-9420.B Academy, LLC; Dialysis Training Institute, LLC; E. Cubics, LLC dba QBICS Career AGR-9247.B College; Emazing Lights, LLC; Instrument Personnel, Inc. dba College of Instrument AGR-9219.6 Technology; KD Education, LLC dba Healthstaff Training Institute; QPE Technical AGR-9242.B Institute, Inc.; Reborn Cabinets dba Reborn Cabinets/Reborn Bath Solutions; Southern AGR-9245.6 California Education Corporation dba Southern California Institute of Technology; and AGR-9248.B United Education Institute dba UEI College); and 5)WIOA Agreement, in an amount not AGR-9218.B to exceed $400,000 (Career Development Solutions, LLC dba New Horizons Career AGR-9886.B Development Solutions). AGR-10581.A Approve California Work Opportunities and Responsibility to Kids (CaIWORKs) AGR-9438.B Agreements, in substantial form, for the provision of occupational skills training and on- AGR-11594 site job training; and authorize the Director of Community and Economic Development to AGR-7682.0 execute and the Workforce Development Manager, or designee, to administer the AGR-9419.B agreements with the following training contractors and their respective contract amounts: AGR- 1) CaIWORKs agreements, each in an amount not to exceed $100,000 (American Career 10183.6 College, Inc.; California Truck Driving Academy, LLC; and QPE Technical Institute, Inc.); AGR-7162.D 2) CaIWORKs agreements, each in an amount not to exceed $150,000 (Dialysis Training Institute, LLC; and United Education Institute dba UEI College); 3) CaIWORKs agreement, in an amount not to exceed $300,000 (E. Cubics, LLC dba QBICS Career College). 22. Approve and authorize the City Manager to execute a subscription agreement with West AGR- Publishing Corporation, a Thomson Reuters business, in the monthly amount of$3623.38 10739.A with a 5% increase over the term, for continued access of legal publications, online legal research, and legal document applications for a three year period. 23. RESOLUTION NO. 2019-054 A RESOLUTION OF THE CITY COUNCIL OF THE P124 CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim certain real properties or interests therein (City Deed Nos. 12281, 12282, and 12283; sewer lateral maintenance access easements in conjunction with the Ball Road Sanitary Sewer Improvement Project). 0154.1 24. RESOLUTION NO. 2019-055 A RESOLUTION OF THE CITY COUNCIL OF THE D154.2 CITY OF ANAHEIM adopting the Master Salary Schedule covering all unrepresented, Anaheim Municipal Employees Association, General and Clerical Units, and Anaheim Police Association Employees effective July 1, 2012 through June 30, 2020. D114 25. RESOLUTION NO. 2019-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending Resolution No. 2018-139 which establishes the days and times of regular meetings of the City Council for the 2019 calendar year(rescheduling the October 8, 2019 meeting to October 22, 2019). 26. RESOLUTION NO. 2019-057 A RESOLUTION OF THE CITY COUNCIL OF THE R100 CITY OF ANAHEIM authorizing the destruction of certain City records more than two years old (City Administration, City Attorney, City Clerk, Community & Economic Development, Community Services, Finance, Fire & Rescue, Human Resources, Planning & Building, Police, and Public Works). City Council Minutes of June 18,2019 Page 23 of 38 E150 27. RESOLUTION NO. 2019-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving amendments to the Conflict of Interest Code for the city and various city agencies. D114 31. Approve minutes of the Council meeting of October 9, 2018. Prior to consideration of the pulled consent calendar items and the off-consent calendar items, Mayor Sidhu considered Public Hearing Item No. 35. PUBLIC HEARING: 35. Public hearing on the Fiscal Year 2019/20 budget, budget appropriations limits for the D106 City and its Community Facilities Districts, and changes in various fee schedules. A. RESOLUTION NO. 2019-060 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting the fiscal year 2019/20 budget. B. RESOLUTION NO. 2019-061 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, adopting the annual appropriations limit for the fiscal year 2019/20. RESOLUTION NO. 2019-062 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 2019/20. RESOLUTION NO. 2019-063 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 2019/20. C. RESOLUTION NO. 2019-064 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. D. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM establishing fees to be charged for Community Services Department programs and services. Item No. 35-D. Withdrawn by staff; no action taken. E. RESOLUTION NO. 2019-065 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, 2019. F. RESOLUTION NO. 2019-066 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. 2018-077. City Council Minutes of June 18,2019 Page 24 of 38 RESOLUTION NO. 2019-067 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. 2018-078. G. RESOLUTION NO. 2019-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM relating to fees and penalties in connection with implementing the Unified Hazardous Waste and Hazardous Material Management Regulatory Program Act and rescinding Resolution 2013-102. H. RESOLUTION NO. 2019-069 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. I. RESOLUTION NO. 2019-070 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. J. RESOLUTION NO. 2019-071 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. 2019-072 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. K. RESOLUTION NO. 2019-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM adopting new fee schedules for the Public Works Department of the City of Anaheim. L. RESOLUTION NO. 2019-074 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. 2018-093 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). City Manager Chris Zapata introduced the public hearing and advised that this is a public hearing to consider the adoption of the city budget, proposed fee changes, and the budget appropriation limit for the City and its Community Facility Districts. He shared this is result of four budget, three community meetings, and budget preparation. He reported that at its meeting of May 12, 2020 and June 12, 2020, the Budget, Investment Technology Commission reviewed the proposed budget and believes it to be fiscally sound. He highlighted the proposed service enhancements, which includes $1.5 million for over hiring Sworn Officers, $600,000 for Park Restroom Upgrades, Library Materials and Security Gates, Sports Field Turf Renovations and Landscape Improvements, and $170,000 for the General Plan Update, of which $70,000 will be allocated to the City Council Budget as a CPI increase. Finance Director/City Treasurer Debbie Moreno provided a brief recap of the Fiscal Year 19/20 Proposed Budget, including increases for the recommended supplementals, the appropriation limits and proposed fee changes. The Proposed Fiscal Year 2019/20 Budget includes Citywide City Council Minutes of June 18,2019 Page 25 of 38 uses totaling $2.0 billion. She noted the largest portion of the proposed uses of$2.0 billion belongs to the enterprise funds at 41%, which the bulk of the enterprise funds are from restricted sources and the majority of unrestricted funds are in the general fund, which makes up 23% of Citywide uses. The proposed expenditures are $1.8 billion with an additional $2.3 million for recommended service enhancements. Ms. Moreno reported the General Fund Five-Year Forecast is based on maintaining current levels of service and current revenue projections, given what we know today. The five year forecast includes the revenue increases associated with the new Emergency Medical Services (EMS) model, which has allowed to include staffing for the new Platinum Triangle fire station in years 3-5 and still remain structurally balanced. Ms. Moreno summarized the operating sources and uses which includes the commitment to homeless shelters, funding needed to complete the EOC (Emergency Operations Center), and recommended supplemental requests. The ending reserves in the proposed budget are estimated to be $41.1 million, or 12% of ongoing expenditures. She also noted that projected reserve remain within 7-10% of available expenditures according to policy. Ms. Moreno presented the annual appropriations limits for fiscal year 2019/20 for the City and its two community facilities districts and noted that in accordance with the California state constitution, each local agency must establish an appropriations limit prior to the commencement of each fiscal year. The limits are based upon the appropriations limits for fiscal year 2018/19, adjusted for the growth factors in City population and California per capita personal income growth. The expenditures in the proposed budget you are considering this evening continue to be substantially below the expenditure limits established by the state constitution. She also presented the proposed fee changes, which include increases to user fees, which are generally a 3.2% increase based on the Consumer price Index(CPI), or less. She noted that staff is withdrawing the Community Services recreation fee changes. Enterprise fees at the Convention Center are related to facility rental rates, meeting room re-sets, and increases to personnel, technical services and facility equipment rates. Solid Waste Collection fees are proposed to increase by 2.3%, which is less than CPI, to offset increasing operational costs and contractual payments to the City's waste hauler, Republic Services, and payments to the County landfill system for disposal. A 3% increase is also being proposed for wastewater fees. Even with this increase, Anaheim will still have the lowest flat rate of any city in Orange County. DISCUSSION: In response to Council Member Moreno's inquiry, Ms. Moreno advised the $250 million for neighborhood improvements is distinct and different from the budget thus, it would not be reflected in the budget. Mr. Zapata further advised that the funding will come through carry- forward funds and through SB-1 funding to obtain $20 million for the first year and will provide a report of the projected revenue stream for the pledge. Council Member Moreno presented a proposed budget request for District 3, which included the rehabilitation/renovation of the Willdan Building to house cultural and performing art non-profits; gap funding to complete the Downtown Anaheim Community Center park; Northgate Academic Learning Center Tenant Improvements; provide funding for Youth, Senior, and Cultural and Heritage Commissions; a standalone Senior Center in District 3, funding to convert empty lots to small for building development to community amenities (e.g. Dog parks community gardens, pocket parks), funding to improve staffing ratios across all departments; increased funding for Public Works Speed Mitigation Petitions. (e.g. Speed Bumps, Crossing Guards, Pedestrian City Council Minutes of June 18,2019 Page 26 of 38 Safety); and explore a rental assistance/down payment assistance program for renters or first time home buyers In response to Council Member Moreno's inquiry, Mr. Zapata advised that if City Council supports passing the renovation of the Willdan Building, the City will find the funding to complete the request, perhaps through the General Fund Reserve. City Attorney Robert Fabela advised Council Member Moreno on how to introduce the renovation of the Willdan Building per his request. In response to Council Member Moreno's inquiry, Ms. Moreno advised that $1 million has been budgeted from CIP to complete the Downtown Anaheim Community Center Park. Council Member Moreno requested the budget be augmented to accelerate the completion of the park. In response to Council Member Moreno's inquiry, Ms. Moreno advised that funding for a stand- alone senior center has not been allocated in the CIP. Council Member Moreno would like the item to come back and be considered by City Council. In response to Council Member Moreno's inquiry, Mr. Zapata advised that the CIP and Parks Master Plan can be reviewed to align funds with Council Member Moreno's request to convert empty lots too small for building developments to community amenities such as dog parks, community gardens, etc. In response to Council Member Moreno's inquiry, Ms. Moreno advised there has been no increase to full-time staffing across the board. She further advised that if full-time staffing wants to be added, there will need to be a reduction in other areas to maintain a balanced budget over the next five (5)years. In response to Council Member Faessel's inquiry, Ms. Moreno advised that the reserves seem to increase each year due one-time land sale revenues. Council Member Faessel would like to see maintenance crews increased in the Parks Department and asked Mr. Zapata to investigate for further review. Council Member O'Neil disagreed with Council Member Moreno's request to add items into the budget and believes that the items need to be approved for certain dollar amount and need to be addressed separately. Council Member Barnes would like to see any additions to the budget be added in January of each year so it can be vetted by City Council before a vote takes place. Council Member Moreno advised that he made these requests several weeks ago, in response to Council Member O'Neil's earlier comments. Mayor Pro Tern Kring reported that Council Member Brandman did read Council Member Moreno's requests into the record at the last City Council meeting. Mayor Sidhu opened the public hearing. Mike Robbins expressed concern regarding the budget and would like to see more funding applied to additional police officers, investment in parks, and critical city infrastructure. He would also like to see more money from the Resort Industry being invested in the City. City Council Minutes of June 18,2019 Page 27 of 38 Jeanine Robbins expressed her concern regarding the budget and feels residents are receiving fewer services than the previous year's budget. Mark Richard Daniels thanked Council Member Barnes for standing up for residents. He expressed his support for a stand-alone senior center and improving City infrastructure. Martin Lopez suggested that City Council stop giving developers tax-subsidies to create revenue for the City through TOT tax. He also believes revenue can be created by charging Angels Baseball for renting the stadium. Bobby Donelson encouraged City Council to move the additional $70,000 allocated for City Council District budgets to invest in the Park System. He also expressed concern regarding providing funds to the Chamber of Commerce and would like to see Angels Baseball pay the fair- market value in rent to the City to create revenue. William Fitzgerald, Homeowners Maintaining Our Environment, expressed his concern regarding increased service fees and funding to the Chamber of Commerce. Bryan Kaye expressed concern regarding corruption with the Anaheim Police Department. Mayor Sidhu closed the public hearing. DISCUSSION: Mayor Sidhu expressed his support for the approving the balanced budget. He thanked Mr. Zapata and staff for their hard work during the budget process. He encouraged the City Council to adopt the budget as presented. MOTION: Mayor Sidhu moved to approve Item No. 35 as presented with the exception of Item No. 35-D, which was withdrawn by staff, seconded by Mayor Pro Tem Kring. SUBSIDIARY MOTION: Council Member Barnes moved to amend the motion to remove the $70,000 recommended supplemental to the City Council budget, to be considered at a later date, seconded by Mayor Pro Tern Kring. DISCUSSION: Council Member Brandman expressed his support for keeping the $70,000 supplemental to the City Council budget. Council Member Moreno stated that he supports the motion to remove the$70,000 supplemental to the City Council budget. SUBSIDIARY MOTION: Council Member Barnes moved to amend the motion to remove the $70,000 recommended supplemental to the City Council budget, to be considered at a later date, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES - 4 (Mayor Pro Tern Kring and Council Members Barnes, Moreno, and O'Neil; NOES -3 (Mayor Sidhu and Council Members Brandman and Faessel). Motion carried. DISCUSSION: Council Member Brandman expressed his support for the rehabilitation of the Willdan building to house arts programs and for providing gap funding for the completion of the Downtown Anaheim Community Center Park. City Council Minutes of June 18,2019 Page 28 of 38 Council Member Faessel expressed his support for providing gap funding for the completion of the Downtown Anaheim Community Center Park and to assess a stand-alone senior center. He expressed concern about the rehabilitation of the Willdan building as he feels that all building options should be considered. In response to Council Member O'Neil's inquiry, Mr. Zapata advised that City Council can provide direction to bring an item back in the future, but this is not the appropriate time to consider the item. Council Member O'Neill reported that he requested the Anaheim First team conduct a senior- needs assessment which would include assessing the need for a stand-alone senior center. Council Member Moreno stated that the Willdan building is owned by the City and has the space to accommodate performing arts. He feels the building is a good fit for accommodating the needs of the non-profits. Mayor Sidhu stated he will not be supporting the amendment as it is not the appropriate time to bring a wish list to the budget without any funding model. Mayor Pro Tem Kring stated that she will not be supporting the amendment and feels a needs assessment needs to be completed for the Anaheim Ballet. SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to direct staff to return with budget amendments to assess the rehabilitation of the Willdan building to house arts programs, provide gap funding for completion of the Downtown Anaheim Community Center Park, and for a stand-alone senior center, seconded by Council Member Barnes. ROLL CALL VOTE: AYES —3 (AYES: Council Members Barnes, Brandman, and Moreno; NOES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil). Motion failed. SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to include up to $250,000 to assess the rehabilitation of the Willdan building to house arts programs, provide gap funding for completion of the Downtown Anaheim Community Center Park, and to assess for a stand-alone senior center, seconded by Council Member Barnes. ROLL CALL VOTE: AYES—3 (AYES: Council Members Barnes, Brandman, and Moreno; NOES—4(Mayor Sidhu and Council Members Kring, Faessel, and O'Neil). Motion failed. DISCUSSION: In response to Council Member Faessel's inquiry, Mr. Zapata advised that the items requested by Council Member Moreno could be brought back as directed by City Council at a later date. Council Member Barnes supports bringing back the items at a later date. AMENDED MOTION: Mayor Sidhu moved to approve the item as presented with the exception of Item No. 35-D, which was withdrawn by staff, and the amendment to remove the $70,000 recommended supplemental to the City Council budget, to be considered at a future date, seconded by Mayor Pro Tem Kring. ROLL CALL VOTE: AYES —7: (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES—0. Motion carried. City Council Minutes of June 18,2019 Page 29 of 38 END OF CONSENT CALENDAR Mayor Sidhu took the agenda out of order and considered Item Nos. 28, 29 prior to Item No. 10, with no objection from Council. C220 28. RESOLUTION NO. 2019-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY C250 OF ANAHEIM denying Conditional Use Permit No. 2015-05835, Variance No. 2017- 05091, and Public Convenience or Necessity No. 2019-00144 and making certain findings in connection therewith (DEV2015-00116; 5706 East La Palma Avenue) (June 4, 2019 Public Hearing, Item No. 34). DISCUSSION: Mayor Sidhu stated that he opposes this item in the interest of public safety. Council Member Faessel feels uncomfortable with the number of variances given to the proposed project. In response to Council Member Barnes' inquiry, City Attorney Robert Fabela advised that there are many findings that could be supported by the record and would not preclude City Council from considering the item. In response to Council Member Barnes' inquiry, Mr. Fabela advised that the applicant could pursue a claim based on a public comment regarding the appellant and the Mayor, but the allegation would be difficult to prove. Council Member Moreno noted that residents who came to City Council regarding 39 Commons did not receive the same time considerations that the opposition received. He also expressed concerns regarding the number of variances in both projects and felt the resident's interests are not being addressed. MOTION: Mayor Sidhu moved to approve RESOLUTION NO. 2019-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM denying Conditional Use Permit No. 2015-05835, Variance No. 2017-05091, and Public Convenience or Necessity No. 2019-00144 and making certain findings in connection therewith, seconded by Mayor Pro Tern Kring. SUBSIDIARY MOTION: Council Member Moreno moved to postpone indefinitely, seconded by Council Member Barnes. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno; NOES—5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil). Motion failed. DISCUSSION: Council Member Brandman expressed concern regarding a statement and false accusations towards Mayor Sidhu by a paid lobbyist. He stated that the public hearing was made above reproach. Council Member O'Neil expressed his support of allowing the Applicant more time by postponing indefinitely. He also noted that the timeframe given for public speakers to comment during the 39 Commons public hearing was limited to three (3) minutes on Council Member Moreno's direction. Council Member Moreno clarified that he simply misunderstood the new public speaking process and negotiated for three (3) minutes instead of the two (2) minutes proposed by Mayor Sidhu. City Council Minutes of June 18,2019 Page 30 of 38 MOTION: Mayor Sidhu moved to approve RESOLUTION NO. 2019-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM denying Conditional Use Permit No. 2015- 05835, Variance No. 2017-05091, and Public Convenience or Necessity No. 2019-00144 and making certain findings in connection therewith, seconded by Mayor Pro Tern Kring. ROLL CALL VOTE: AYES - 5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil; NOES—2 (Council Members Barnes and Moreno). Motion carried. M142 29. ORDINANCE NO. 6466 (ADOPTION)AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 4.05 (Short-Term Rentals) of Title 4 (Business Regulation) of the Anaheim Municipal Code to modify the termination and amortization process and period for certain defined pre-moratorium short-term rentals, and finding and determining that this ordinance is not subject to the California Environmental Quality Act(CEQA) pursuant to Sections 15004, 15060(c)(2), 15060(c)(3), 15061(b)(3), 15301 and 15332 of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because it involves operation, permitting, licensing, and/or leasing of existing private structures or facilities involving negligible or no expansion of existing or former use, because there is no possibility that it may have a significant effect on the environment, because it is not a project, as defined in Section 15378 of the CEQA Guidelines, and because it is also the subject of categorical exemptions from CEQA(Introduced at Council Meeting of June 4, 2019, Item No. 31). DISCUSSON: Mayor Sidhu feels the resolution provides a workable way forward. Mayor Pro Tern Kring provided a brief recap of the history of STRs at Sherwood Village and noted the Homeowners Association approved STRs at the site. She supports the item and feels it is a win-win situation. In response to Council Member Faessel's inquiry, Deputy City Manager David Belmer advised that Sherwood Village STR owners will have to cease operation by December 2022. Between now and that time, owners have the ability to relocate the permit one time only through the Minor Conditional Use Permit Process process or by receiving written consent by neighbors within 75 feet of the new property. In response to Council Member Faessel's inquiry, Mr. Belmer reported there are STRs that are an issue not necessarily due to a bad operator, but due to the locations where residents are sensitive to noise, or work an unusual schedule and are impacted by the STRs. Council Member Barnes reported that 60% of Anaheim residents are paying higher rent then they can afford. She feels that reducing the inventory of STRs will increase the number of affordable homes that are available in Anaheim. Council Member O'Neil clarified that this ordinance is only dealing with those that filed hardship extensions. He is open to revisiting the STRs in the future and even adding additional permits. He also noted that STRs are only taking up a fraction of a percent of the housing market and would not make a huge impact in housing affordability. In response to Council Member Moreno's inquiry, Community Preservation, and Licensing Manager Sandra Sagert advised that a yard sale permit could be issued as an exemption to have a yard sale. She also noted that yard sales can happen 4 days per year. Council Member Moreno equates having a yard sale as the business in a residential neighborhood the same as City Council Minutes of June 18,2019 Page 31 of 38 having an STR as a business in a residential neighborhood and cannot support the continuing of STRs. In response to Council Member Moreno's inquiry, Mr. Belmer advised the total revenue of STRs is approximately$28 Million annually. Council Member Faessel supports the ordinance as presented but will not support additional STRs. He also feels that STRs need to be eliminated from Sherwood Village. In response to Council Member Moreno's inquiry, Senior Assistant City Attorney Kristin Pelletier advised that the five (5) minute speaking rule was being implemented voluntarily and the timing is up to the Chair. Council Member Moreno is concerned that some residential neighborhoods are teeming with STRs and should be renamed Hospitality Districts. He expressed concern that some members of the dais have had conversations with STR owners while the City is in the midst of a lawsuit. Council Member Moreno expressed concern that STR owners were given an opportunity to prepare for the City Council meeting while opposers had no idea this would be on the agenda. He stated that he supports home sharing but not the STRs. Council Member Moreno presented STR Campaign Contributions to Mayor Sidhu, Council Member O'Neil, and PACs which showed a Total Election Spending of$93,117. He stated he will not be supporting the item. Council Member O'Neil expressed concern that there is an innuendo that he and Mayor Sidhu were returning favors for campaign contributions. He noted that he and Mayor Sidhu received support from a broad representation from business interests, community groups, and individual citizens as well. Council Member Brandman recapped his history with STRs and advised he will not support the ordinance. MOTION: Mayor Sidhu moved to adopt ORDINANCE NO. 6466 (ADOPTION)AN ORDINANCE OF THE CITY OF ANAHEIM amending Chapter 4.05 (Short-Term Rentals) of Title 4 (Business Regulation) of the Anaheim Municipal Code to modify the termination and amortization process and period for certain defined pre-moratorium short-term rentals, and finding and determining that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15004, 15060(c)(2), 15060(c)(3), 15061(b)(3), 15301 and 15332 of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because it involves operation, permitting, licensing, and/or leasing of existing private structures or facilities involving negligible or no expansion of existing or former use, because there is no possibility that it may have a significant effect on the environment, because it is not a project, as defined in Section 15378 of the CEQA Guidelines, and because it is also the subject of categorical exemptions from CEQA, seconded by Council Member O'Neil. ROLL CALL VOTE: AYES -4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil; NOES —3 (Council Members Barnes, Brandman, and Moreno). Motion carried; ordinance adopted. City Council Minutes of June 18,2019 Page 32 of 38 D116 10. Approve proclamations recognizing 2019 International Widows Day, the Anaheim Japan Fair and event organizer Rocky Yoneyama, and Palm Lane Charter School. MOTION: Council Member Brandman moved to bifurcate the item to consider Palm Lane Charter School separately from the first two proclamations, seconded by Mayor Sidhu. ROLL CALL VOTE: AYES—7: (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES —0. Motion carried. MOTION: Council Member Brandman moved to approve proclamations recognizing 2019 International Widows Day and the Anaheim Japan Fair and event organizer Rocky Yoneyama, seconded by Mayor Sidhu. ROLL CALL VOTE: AYES — 7: (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil). NOES—0. Motion carried. MOTION: Council Member Brandman moved to approved proclamation recognizing Palm Lane Charter School, seconded by Mayor Sidhu. ROLL CALL VOTE: AYES- 5 (AYES: Mayor Sidhu and Council Members Kring, Barnes, Faessel, and O'Neil; NOES—0; ABSTENTION -2: Council Members Brandman and Moreno). Motion carried. AGR- 30. ORDINANCE NO. 6467 (ADOPTION)AN ORDINANCE OF THE CITY OF ANAHEIM approving Amendment No. 5 to the Second Amended and Restated 1463.2.5 Development Agreement No. 99-01 by and between the City of Anaheim and Westgate Resorts Anaheim, LLC and making certain findings related thereto; and authorizing the Mayor to execute and the City Clerk to attest said agreement for and on behalf of the City (Introduced at Council Meeting of June 4, 2019, Public Hearing Item No. 35). Determine that the previously approved Disneyland Resort Specific Plan Environmental Impact Report No. 311, Pointe Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda, are the appropriate environmental documentation for this request. DISCUSSON: Council Member Moreno stated that he pulled the item to record his abstention on the item. MOTION: Mayor Pro Tern Kring moved to adopt ORDINANCE NO. 6467 (ADOPTION)AN ORDINANCE OF THE CITY OF ANAHEIM approving Amendment No. 5 to the Second Amended and Restated Development Agreement No. 99-01 by and between the City of Anaheim and Westgate Resorts Anaheim, LLC and making certain findings related thereto; and authorizing the Mayor to execute and the City Clerk to attest said agreement for and on behalf of the City; and determine that the previously approved Disneyland Resort Specific Plan Environmental Impact Report No. 311, Pointe Anaheim Initial Study and Mitigated Negative Declaration (IS/MND), and associated Addenda, are the appropriate environmental documentation for this request, seconded by Council Member Faessel. ROLL CALL VOTE: AYES—6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O'Neil; NOES—0; ABSTENTION — 1 (Council Member Moreno). Motion carried; ordinance adopted. City Council Minutes of June 18,2019 Page 33 of 38 AGR- 32. Approve and authorize the Director of Community Services to execute and administer Amendment No. 4 to a Property Operating Agreement with the Muzeo Foundation 4839.4 extending the current financial arrangement for a period of five years expiring June 30, 2024 and providing an additional Capital Working Line of Credit, in an amount not to exceed $150,000 per fiscal year. In accordance with Government Code §1091.5, City Clerk Theresa Bass reported Council Members Brandman and Faessel, as well as Community Services Director Larry Pasco, serve on the Muzeo Board of Directors and can participate in the discussion and vote of the item. DISCUSSION: Mayor Sidhu expressed his support for the Muzeo Foundation and encouraged City Council to support the item. MOTION: Mayor Pro Tern Kring moved to approve and authorize the Director of Community Services to execute and administer Amendment No. 4 to a Property Operating Agreement with the Muzeo Foundation extending the current financial arrangement for a period of five years expiring June 30, 2024 and providing an additional Capital Working Line of Credit, in an amount not to exceed $150,000 per fiscal year, seconded by Council Member O'Neil. Director of Community Services Larry Pasco advised that the item is a request to approve Amendment No. 4 to a Property Operating Agreement between the City of Anaheim and the Muzeo Foundation to assist in the operations of the Muzeo for a period of five (5)years with an annual loan amount of$250,000. In addition, the agreement allows for a Capital Working Line of Credit (CWLOC)for up to $150,000 annually as a means to aid cash flow and he explained the terms of the agreement. Lastly, he spoke about the importance of the Muzeo's impact on the community. DICUSSION: Council Member Barnes expressed concern that the original mission of the Muzeo was to display the artistry of local talent and would like to understand how the Muzeo is reaching out to the youth. Director of Community Services Pasco advised that Muzeo has always been focused on youth participation. Council Member Brandman advised his family was a founding donor to the Muzeo Foundation. He advised that serving the youth and providing space for local artists was always core to the mission of the Muzeo. Mayor Pro Tern Kring also advised she and her husband were founding members of the Muzeo and noted that special events at the Muzeo used to pay for the youth to visit the Muzeo. In response to Council Member Moreno's inquiry, Mr. Pasco advised that the Muzeo records had been located as of last week. Council Member Moreno expressed concern about the records and noted those numbers should be entered in an annual report to be filed with the City as it provides statistical information that can be used for information purposes. Council Member Moreno expressed his concern regarding that the City's support of the Muzeo was intended to help the Muzeo start out so it could run on its own. He presented a recap of payment history to the Muzeo and he feels that support to of the Muzeo has come at a cost to the youth of Anaheim. He briefly outlined what the funding that went to the Muzeo could have funded over the last five (5) years. He noted he will support the lease but cannot support continuing General Fund expenditures to the Muzeo. City Council Minutes of June 18,2019 Page 34 of 38 Council Member Barnes expressed her support of residents and feels the City has missed the mark in many ways. She expressed her support for the item. In response to Council Member O'Neil's inquiry, Mr. Pasco advised that many students from Anaheim attend the Muzeo from the local school district. Council Member Moreno expressed concern that the support of Muzeo has been ongoing for 12 years and feels it is not fiscally prudent. He suggested that the Cultural and Heritage Commission be involved in this process. He feels the money can be better served being used for park improvements for the youth of Anaheim. In response to Mayor Pro Tern Kring's inquiry, Mr. Pasco advised that funding for YMCA is provided by the General Fund. SUBSIDIARY MOTION: Council Member Moreno moved to amend the motion to approve with the removal of$1.25 million General Fund expenditure, seconded by Council Member Brandman. ROLL CALL VOTE: AYES — 1 (Council Member Moreno); NOES-6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O'Neil). Motion failed. DISCUSSION: Council Member Brandman expressed concern that records were not available from the Muzeo but feels some structure is required for reporting. Council Member O'Neil suggested that the annual report be filed by June 30 of each year. Council Member Faessel suggested that Bill Bailor, Chief Executive Officer, Muzeo Museum, be present during the presentation of the annual report each year. Mr. Bailor agreed to Council Member Faessel's request. Council Member Moreno expressed concern that two (2) members of City Council sit on the Board of Directors of the Muzeo are making a decision on the item. SUBSIDIARY MOTION: Council Member Brandman moved to amend the agreement to require the annual report be filed with the City by June 30 of each year, seconded by Council Member O'Neil. ROLL CALL VOTE: AYES—6 (Mayor Sidhu and Council Members Kring, Barnes, Brandman, Faessel, and O'Neil; NOES— 1 (Council Member Moreno). Motion carried. AMENDED MOTION: Mayor Pro Tem Kring moved to approve and authorize the Director of Community Services to execute and administer Amendment No. 4 to a Property Operating Agreement with the Muzeo Foundation extending the current financial arrangement for a period of five years expiring June 30, 2024 and providing an additional Capital Working Line of Credit, in an amount not to exceed $150,000 per fiscal year, as amended requiring the annual report be filed with the City by June 30 of each year, seconded by Council Member O'Neil. ROLL CALL VOTE: AYES - 5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil; NOES —2 (Council Members Barnes and Moreno). Motion carried. City Council Minutes of June 18,2019 Page 35 of 38 B105 33. Nominate and appoint one (1) Council representative to serve on the Orange County Housing Trust Board, for a two year term. APPOINTMENT: Mayor Sidhu Mayor Sidhu nominated himself. ROLL CALL VOTE: AYES - 5 (AYES: Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil; NOES—2 (Council Members Barnes and Moreno). Council Member Moreno nominated Council Member Barnes. ROLL CALL VOTE: AYES -2 (Council Members Barnes and Moreno); NOES—3 (Mayor Sidhu and Council Members Faessel and O'Neil); ABSTENTIONS—2 (Mayor Pro Tem Kring and Council Member Brandman). Mayor Sidhu was appointed to serve on the Orange County Housing Trust Board 34. ORDINANCE NO. (ADOPTION)AN URGENCY ORDINANCE OF THE CITY M142 OF ANAHEIM limiting rent increases for specified apartment units in the City to five percent plus the annual percentage change in the Consumer Price Index, and providing that annual rent increases may not exceed ten percent(A copy of the full text of the proposed ordinance is available for review in the Office of the City Clerk). or alternatively: ORDINANCE NO. (INTRODUCTION)AN UNCODIFIED INTERIM ORDINANCE OF THE CITY OF ANAHEIM limiting rent increases for specified apartment units in the City to five percent plus the annual percentage change in the Consumer Price Index, and providing that annual rent increases may not exceed ten percent. Determine that the approved ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 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 it will have a significant effect on the environment, and it is not a "project", as defined in Section 15378 of the State CEQA Guidelines. City Attorney Robert Fabela advised that during the May 7, 2019 City Council meeting, several residents from the Casa Grande apartments spoke out about rental increases. He advised that while limitations on apartment rent increases have not previously been a subject of regulation in the City of Anaheim, the City, under the authority of the City Council, has the ability to enact and enforce ordinances and regulations for the peace, health and welfare of the City and its residents. Mr. Fabela advised, that at the request of Council Member Moreno, the City Attorney's Office prepared an urgency ordinance, as well as an alternative interim ordinance, which are attached to the staff report. He noted that both ordinances would impose a temporary restriction on apartment rent increases and would remain in effect for one hundred and eighty days while the City evaluates permanent rent control measures. Mr. Fabela advised that if one of the ordinances is adopted, a rental restriction would apply to existing tenancies in non-government owned or controlled apartment buildings in Anaheim occupied before February 1, 1995. He further advised that if one of the ordinances is adopted, City Council Minutes of June 18,2019 Page 36 of 38 apartment rents may not be increased more than five percent(5%) plus the change in the Consumer Price Index, but not to exceed ten percent(10%) annually. He also stated that an owner of a residential rental unit who believes the limit on rental increases would prevent him/her/it from receiving a fair and reasonable return on the property may petition for a rent increase in excess of the cap. DISCUSSION: Council Member Moreno expressed his support of residents who have come to City Council for relief. He noted that the average amount of rent in District 3 is $1973/month and presented on renter statistics in Anaheim. He encourages City Council to support a six-month rent increase moratorium and encouraged City Council to support the item. Council Member Barnes noted that she represents the residents and their welfare is her primary concern. She feels the rent increases directly impact the quality of life. Council Member O'Neil presented rent comparisons and noted the average rent per unit near Casa Grande is $1,489 and the average unit at Casa Grande is $1,536. He stated that he will be opposing the item. Council Member Barnes appreciated Council Member O'Neil's rent comparisons but does not feel it is representative of the affordability of the apartments at Casa Grande. She is concerned that rent increases will potentially increase homelessness in Anaheim. Mayor Pro Tern Kring feels that the rents at Casa Grande rents have been below market for some time. She noted other cities who have stopped rent control due to a variety of issues. She will not be supporting the item. Council Member Moreno thanked Council Member Barnes for her comments and support of residents. He strongly suggests that City Council approve the six (6) month moratorium so the issue can be properly debated. He also noted that some members of City Council refuse to have discussions on the matter. Council Member Brandman stated this issues is happening all over California due to the gross housing shortage and believes it needs to be debated in Sacramento. He also stated that the Renter's Tax Credit is moving through Sacramento and should create some relief for low-income residents. He encouraged City Council to come together for the larger conversation. He will not be supporting the item. • Council Member Faessel would like to make sure there are safe, secure and quality rentals in Anaheim but he also believes it needs to be debated in Sacramento. MOTION: Council Member Moreno moved to adopt AN URGENCY ORDINANCE OF THE CITY OF ANAHEIM limiting rent increases for specified apartment units in the City to five percent plus the annual percentage change in the Consumer Price Index, and providing that annual rent increases may not exceed ten percent, seconded by Council Member Brandman. ROLL CALL VOTE: AYES -2 (Council Members Barnes and Moreno); NOES—5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil). Motion failed. DISCUSSION: Council Member Moreno strongly urged City Council to consider the uncodified interim ordinance and feels that Anaheim needs to take care of its residents instead of waiting for City Council Minutes of June 18,2019 Page 37 of 38 the state to pass legislation. Council Member Moreno asked his colleagues if they had alternative solutions. Council Member Barnes noted that many cities are watching Anaheim on this item and believes the residents are owed a voice and a solution. Council Member O'Neil reminded City Council that the Ad Hoc Housing Committee has been meeting regularly to discuss potential solutions and ideas will be coming back to the City Council in the next few months. Mayor Pro Tem Kring believes that Anaheim supports affordable housing for its residents including working with affordable builders and not-for-profits to assist with affordable housing. She noted that 6600 households receive housing vouchers in Anaheim. Council Member Moreno responded that regardless of all the efforts of Anaheim to assist with affordable housing, rents continue to increase. He also noted that the item today will help prevent future homelessness. MOTION: Council Member Moreno moved to introduce AN UNCODIFIED INTERIM ORDINANCE OF THE CITY OF ANAHEIM limiting rent increases for specified apartment units in the City to five percent plus the annual percentage change in the Consumer Price Index, and providing that annual rent increases may not exceed ten percent. Determine that the approved ordinance is not subject to the California Environmental Quality Act(CEQA) pursuant to Sections 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 it will have a significant effect on the environment, and it is not a "project", as defined in Section 15378 of the State CEQA Guidelines., seconded by Council Member Brandman. ROLL CALL VOTE: AYES -2 (Council Members Barnes and Moreno); NOES—5 (Mayor Sidhu and Council Members Kring, Brandman, Faessel, and O'Neil). Motion failed. REPORT ON CLOSED SESSION ACTIVITES: None PUBLIC COMMENTS (non-agenda items): None Council Member Barnes left the meeting at 2:39 A.M. on June 19, 2019. COUNCIL COMMUNICATION/AGENDA REQUESTS: Mayor Sidhu addressed the negotiations with the Anaheim Angels and reported no formal negotiations have taken place. He assured any future agreements will benefit residents and neighborhoods. He spoke of his meeting with West Anaheim residents regarding the future of Beach Boulevard and Lincoln and reported a development team is ready to move forward with the 39 Commons Project, a shopping center/restaurant development. He requested staff to return with a development agreement for the project within 4-6 weeks. He wished everyone a safe 4th of July. Council Member Moreno thanked Latter Day Saints Church for continuously hosting District 3 meetings to engage with residents in the Westmont area, Victoria Michaels for hosting a District 3 meeting in the Central/Northeast Colony, and Chief Cisneros for providing updates on public safety in the city. He also thanked Anaheim Public Utilities General Manager Dukku Lee for City Council Minutes of June 18,2019 Page 38 of 38 providing lighting to areas that need it most and Barbara and Greg from Anaheim Brewery for hosting Agenda discussion meetings. He announced the EV Expo hosted by Public Utilities on June 22 in downtown and the Neighborhood Cleanup and BBQ event on June 22 from 10am- 1 pm on Vine, Rose, and Bush Street. He requested that he and Council Member Barnes be included on the Angels negotiation team if required place on a future agenda for discussion and action. He further requested a workshop on Angels baseball regarding the appraisal and a standing agenda item for Council representatives to provide Regional Board Agency reports (concurred by Council Member Brandman; requests failed for lack of the second concurrence). Council Member Brandman announced the GOALS Clubhouse open house to be held on June 21 from 10 am to 6 pm and the Orange County Pride Parade & Festival on June 22. He spoke in response to an OC Weekly published story regarding Jeff Flint and recognized Mr. Flint as an ally of the LGBTQ community. Council Member Faessel spoke of his attendance at the Anna Drive community event in partnership with River Arena Church, showcased a video highlighting the event, and thanked Yesenia Rojas for the invite. He recognized Anaheim SeniorSery as the 2019 Nonprofit of the Year, thanked ART for providing bus transportation to Anna Drive kids to Higher Ground from June 10 -August 2, and recognized Joanna Lopez and Lacey Terrain for their work with the Fun on Wheels program. He thanked everyone in attendance at the North Coves Expansion dedication;He spoke of his work with the Anna Drive community to improve the location of a bus stop and reported his attendance at the Annual Flag Day Ceremony at Pearson Park. Mayor Pro Tem Kring wished everyone a happy and safe 4th of July and announced the Anaheim Hills 4th of July Parade and Dog Show. She stated that, as the representative on the Vector Control Board, she provides updates on items of interest. She highlighted that Bruno Serato, as a non-profit, provides rental assistance to families and spoke of her attendance at the North Coves Expansion event. She spoke of an incident involving a student who was approached by a man when walking home and requested the recognition of Marisol Molina, the eight police officers and three sergeants who aided in the arrest of the perpetrator. She further requested a proclamation recognizing Anaheim RV Park on its 60th Anniversary, both requests concurred by Mayor Sidhu and Council Member O'Neil. She spoke of her attendance at Palm Lane Charter School's first 6th-grade graduation and the Thank You card she received from Principal Dr. Angela Miller and the 52 students. Council Member O'Neil requested an agenda item to appoint the Mayor, City Manager, and City Attorney to the negotiation team between the City and Angels, concurred by Mayor Sidhu and Mayor Pro Tern Kring. ADJOURNMENT: With no further business before the Council, Mayor Sidhu adjourned the meeting of June 18, 2019 at 3:03 A.M. on June 19, 2019. i" ..- `�ully submitted, - - eres. Bass, CMC City Clerk