Loading...
01/28/2020 ANAHEIM CITY COUNCIL REGULAR MEETING OF JANUARY 28, 2020 The regular meeting of January 28, 2020 was called to order at 3:02 P.M. in the chamber of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on January 23, 2020. PRESENT: Mayor Harry Sidhu and Council Members Stephen Faessel, Denise Barnes, Jordan Brandman, Lucille Kring, Jose F. Moreno, and Trevor O'Neil. STAFF PRESENT: City Manager Chris Zapata, City Attorney Robert Fabela, and City Clerk Theresa Bass D106 WORKSHOP: Fiscal Year 19/20 and Preliminary Fiscal Year 20/21 Budget Projections City Manager Chris Zapata introduced the workshop and advised the Anaheim Executive Team had been assembled for a Strategic Priority Setting Meeting to conduct a Strength, Weakness, Opportunities, and Threats (SWOT)Analysis and to provide input for the coming budget process in future years. Mr. Zapata reported Anaheim has worked hard to capture investment in the City and community, which translates to jobs and future revenues. He reported Anaheim has 2,000 full-time employees and 1,000 part-time employees who provide services to Anaheim residents, businesses, and visitors. He reported there are 360,000 Anaheim residents, 25,000,000 visitors and 20,000 Anaheim businesses who generate revenue for Anaheim which can then be used to provide services to Anaheim residents and other visitors. He noted that Anaheim has a competitive edge by running an electric utility and having a Convention Center. He also noted the importance of filling the Director and Deputy Director role on Anaheim's Executive Team and advised there are 15 labor units, where significant progress has been made toward labor negotiations Mr. Zapata reported on Strategic Priorities and noted City staff has listened to many stakeholders, which include residents, staff, non-profits, school representatives, and community groups who have a vested interest in Anaheim's budget. Staff consolidated that input for City Council review and consideration to determine how the budget will be developed. He spoke of and supported City Council's approval of funding for the General Plan update which will be developed within the next two (2)years. He noted Anaheim relies on three (3) revenue streams: Property Tax, Sales Tax and Transient Occupancy Tax (TOT)which need to be supplemented with additional funding such as grants and additional revenue sources. He also believes Anaheim is better served by a two (2)year budget model, which will be implemented beginning in Fiscal Year 21/22. He reported that another strategic priority is keeping residents and visitors safe with stellar public safety. He reported that Anaheim Fire & Rescue has an International Service Organization Class 1 rating which benefits residents and businesses with lower insurance premiums. He reported the Anaheim Police Department is working diligently with various departments to create a Real-Time Public Safety Center to use data more strategically to become more efficient in providing response and service to our residents and businesses. Mr. Zapata shared that another strategic priority is investing in infrastructure such as streets, roads, sidewalks, and updated City Facilities. He reported the need to modernize City Hall for businesses and residents and will soon include a One-Stop-Shop for residents to learn how to open and operate a business in Anaheim. He addressed homelessness and affordable housing, stating these were another strategic priority. He thanked City Council and Deputy City Manager Greg Garcia for City Council Minutes of January 28, 2020 Page 2 of 21 lobbying the State of California for funding and reported Anaheim will receive $8,500,000 from the state. He reported affordable housing is a challenge in many places in California and Anaheim is encouraging developers to provide housing assistance. He reported Anaheim is focused on retaining students who live in Anaheim while attending local schools by attracting employers and jobs that provide life and professional opportunities. Mr. Zapata reported Anaheim wants to embrace innovation and build on the Smart City initiatives to create Anaheim as a model place of work. He also noted the pension challenge needs to be addressed and Anaheim needs to ensure it can sustain for the current workforce now, those that have retired, and those coming into the workforce. Mr. Zapata shared that staff will be presenting the City Council with an information study completed by the Urban Land Institute about potential Santa Ana River development. He reported the Beach Boulevard Specific Plan will be activated after 15 years of hard work. He also reported recent developments in the Platinum Triangle, along with the Anaheim Ducks and Angels Baseball, makes it a huge area of opportunity to take Anaheim to the next level within the next 30 years. He also noted there are challenges in obtaining resources but the City remains optimistic for the future. Finance Director/City Treasurer Debbie Moreno recapped the Fiscal Year 19/2020 budget was $2 billion including transfers. She advised the Anaheim budget is comprised of many different funding sources, but the largest portions are restricted for special activities, including most of Anaheim's Enterprise and Special Revenue Funds. She advised the majority of discretionary funding is in the General Fund, which is just over 20% of the total budget. Ms. Moreno reported the City's adopted General Fund budget includes sources of about $442,000,000 with nearly 80% of the revenues coming from TOT, Sales Taxes, and Property Taxes. The remaining revenues include fees and permits, transfers from other funds, and other revenues. She reported General Fund uses were adopted for $448,000,000 with approximately 80% of the amount funding services to the community, of which the largest portion is for Police and Fire services, with the bulk of the remainder going to departments ensuring the quality of life and providing the necessities. Ms. Moreno reported TOT projections include six (6) new hotels that are expected to open this calendar year and noted new hotel inventory is vital to Anaheim's TOT growth as the occupancy rate in Anaheim is near capacity. She reported in 2013 Anaheim was at 75% average occupancy, which has risen and stabilized at 82% even after several new hotels were added to the supply. She further explained the National Occupancy Rate is at a historical high of 67% with occupancy rates over 80% being considered very high. She reported Anaheim's Tier 1 hotels, which make up the bulk of Anaheim's TOT, have occupancy rates of 86%. Additionally, she reported occupancy exceeds 90% in the summer months. Lastly, she reported she expects occupancy rates to remain stable at 82%, with continued increases to the Average Daily Rate (ADR), which has grown by 42%. She further reported on TOT trending for the current year and noted it is projected to exceed budget by about 1%, which represents an 8.3% growth over last year. She presented a chart displaying the month-to- month collections of TOT and, while historically July, December, and March are Anaheim's biggest months, October 2019 was the highest TOT month in Anaheim's history. Ms. Moreno highlighted that Sales Tax revenue is $89,000,000, or 20% of the General Fund and advised the tax rate in Anaheim is 7.75% of retail sales (as of January 1, 2017). She reported the bulk of Sales Tax goes to the State to fund schools and other state-supported programs with Anaheim City receiving .01 cent of every dollar spent in Anaheim and are paid to the City quarterly. She reported Sales and Use Taxes are projected to exceed the budget by 2.6%, which represents 7.2% growth over last year driven largely by general retail outside the resort area, citywide restaurants, and online sales. Sales Tax from general retail makes up the largest share of sales at City Council Minutes of January 28, 2020 Page 3 of 21 28%, food products at 20%, and construction, transportation, and business to business at 17%. She advised growth is projected in the general retail and food products areas. She advised construction and business to business are relatively flat and transportation has been the weakest sector but does project a rebound in the next year. Property Taxes revenues are $82,000,000 or 19% of the General Fund revenue sources. She reported all real and tangible personal property in the State is subject to a property tax equal to 1% of its value, with the City receiving 20% of the 1% basic tax levy. She advised the balance is shared among other local taxing entities, including the County, schools, and special districts. She projects Property Tax to grow at 1% over the prior fiscal year. Ms. Moreno provided an overview of General Fund Uses and noted the largest portion is Services which, at almost 80% which consists of personnel costs, including full-time, part-time, and related benefit costs, as well as other operating expenses, which include office supplies, equipment maintenance, contract services, and other day-to-day expenditures. She reported Debt Service expenditures represent the repayment of principal and/or interest on borrowed funds and make up 20% of the $448,000,000 and make up less than 1% of General Fund uses. She explained Capital Outlay represents the purchase of office equipment, furniture, and computer hardware which are funded by unrestricted sources. Lastly, she noted the remaining $2,200,000 is used for Economic Development Programs, which is less than 1% of the General Fund. Ms. Moreno further detailed the Services portion of the General Fund use and provided a breakdown by functional groups with the largest share relating to Keeping Us Safe and includes Police and Fire, with the bulk of the remainder going to the department's ensuring the quality of life and providing the necessities. Ms. Moreno provided a review of the adopted General Fund Forecast which states Total General Fund Sources of$441,500,000 for Fiscal Year 19/20 and Total General Fund Operating Uses of $439,100,000 which results in an adopted surplus of$2,400,000. She advised operating uses included the new Platinum Triangle Fire Station, 12 additional firefighters in Fiscal Year 21/22, and the new Emergency Operations Center. She also noted, with the inclusion of the homeless shelters and other one-time uses, there was a total draw on Reserves in the amount of$6,500,000. Ms. Moreno reported the City expects TOT and Sales Tax to exceed budget with Property Taxes projected to be right on target based on preliminary projections. She also noted other revenues and transfers from other funds are trending higher and become the basis for the preliminary proposed budget for Fiscal Year 20/21. She further reported on the preliminary Fiscal Year 20/21 Five-Year Forecast and noted the City is projecting Total Operating Sources of$449,000,000, which includes the updated revenue projections for TOT, Sales, Property Tax, and EMS revenues. She advised Total Operating Uses are projected to be $444,000,000. Ms. Moreno presented updated expenditure assumptions for the labor agreements, pensions, and benefits. She reported on one-time projects and noted the City projects to receive additional Grant Revenue of about $8,500,000 for homelessness programs. She noted the forecast includes the approved budget amendments for the Northgate Project and the Public Art Plan. She reported the Police Department does not anticipate they will need the $1,500,000 approved for over hiring in the current year, so it was moved out to Fiscal Year 20/21. Lastly, she reported the City expects to receive $1,300,000 of Land Sale Revenue that was not budgeted, which would lead to a slight surplus in reserves of$200,000 this year. She advised the forecast continues to fund current staffing levels and includes the addition of 12 firefighters for the new Platinum Triangle Station beginning in Fiscal Year 21/22. Lastly, she noted if revenue and expenditure assumptions remain the same, the City would need to use reserves to fund operating expenses next year and would fall below the City's Reserve Policy of 7-10% by FY 2021/2022. City Council Minutes of January 28,2020 Page 4 of 21 Ms. Moreno presented on neighborhood improvements and highlighted a number of planned park improvements. She reported libraries also received improvements such as the Central Library Outdoor Space Phase 1 construction, which has been completed. She noted planning for Phase 2 has begun and is expected to continue into Fiscal Year 20/21. Lastly, she reported City Council also approved the budget for park repair and maintenance for athletics fields at Brookhurst, Modjeska, Reagan, and Schweitzer Parks, which are expected to be completed by the end of this fiscal year. Ms. Moreno reported the City completed the pruning of 3,300 trees, the replacement of 17,000 square feet of sidewalk throughout the city, and the completion of the Cerritos sidewalk gap closure including improvements at the Cerritos/Euclid intersection. She also noted the City also progresses on its mission to address various Neighborhood Rehabilitation, Street Rehabilitations, and Capital Improvement Projects throughout the City. Ms. reported Anaheim Public Utilities completed construction of its new Harbor Substation serving the Platinum Triangle and surrounding areas, which will help meet existing and future power demands in the area. She highlighted community events held by Anaheim Public Utilities over the past year. Ms. Moreno reported the Anaheim Police Department utilized Urban Areas Security Initiative (UASI) Grant Funding for the procurement of a Force Option Training Simulator, which provides a cost- effective, foundational component in police use of force training and reported on their community outreach initiatives including: "Coppers and Choppers Motorcycle Safety" events, the Public Safety Academy anchored at Sycamore Junior High School which has now expanded to Anaheim High School, and many other efforts to address car seat safety, bike, and pedestrian safety. Ms. Moreno shared that Anaheim Fire & Rescue purchased a new Water Tender and contracted for both mechanical and natural brush clearance in order to clear vegetation in City parks. The Department is also set to deploy new Patrol Trucks as part of the Canyon Fires After Action Plan, with the delivery of the trucks anticipated by the end of this fiscal year. She also highlighted continued recruitment efforts. Ms. Moreno provided an overview of the Budget Calendar. She reported staff is the process of working with departments on their current year projections and the Capital Improvement Program (CIP) and advised they will begin submitting their proposals within the next two (2) months. She noted the Proposed Fiscal Year 20/21 CIP will be presented to City Council in March. She also advised the City Manager will review departments' budget proposals in April, which will also begin Community Outreach Meetings. She noted these meetings provide residents with an opportunity to meet with executives from operating departments, which include Community Services, Police, Fire & Rescue, Community& Economic Development, Public Works, Planning & Building, Convention, Sports & Entertainment, and Public Utilities. She advised at the end of May, the City will publish the City Manager's Proposed Budget for review by the City Council, the Budget, Investment and Technology Commission, and the community. Lastly, she advised a Budget Workshop will take place in June and concluding with the Budget Adoption on June 23. DISCUSSION: Mayor Sidhu thanked staff for their presentation. In response to Mayor Sidhu's inquiry, Ms. Moreno clarified the Projected Budget has increased from the Adopted Budget due to budget and labor amendments. She also clarified the City expects to be over budget by 1% or $1,900,000 for TOT, $2,300,000 for Sales and Use Tax, and slightly under budget for Property Taxes. She clarified the City is projecting $7,500,000 more in revenue, which is being depleted by Labor Agreements. In response to Mayor Sidhu's inquiry, Ms. Moreno clarified new hotel revenue is included in the Projected Budget. Mayor Sidhu expressed concern regarding the Fiscal Year 20/21 reserve shortage. In response to Mayor Sidhu's inquiry, Deputy City Manager Greg Garcia advised they are City Council Minutes of January 28, 2020 Page 5 of 21 looking at a wide variety of other revenues through new programs and initiatives. He noted the online TOT could conservatively bring $2,000,000 per year of revenue to the City but the City is also looking at land sales, additional development around the city, and other programs and initiatives for additional revenue to the City. In response to Mayor Sidhu's inquiry, Mr. Zapata advised when the budget was brought forward last year it was made clear to the community, staff, and City Council that labor negotiations had not been completed and those settlements were zeroing out increased revenues. He also noted the City projects a surplus of$200,000 at the end of this year, but this will be a challenge in subsequent years. In response to Council Member Barnes' inquiry, Mr. Garcia clarified the ongoing TOT dispute has been with the larger online travel agencies, as they are not remitting the full TOT to the City. He noted there has been unsuccessful litigation on this item going back 10 plus years and the City continues to look for solutions. He advised it would not change the budget numbers but could mean more revenue for the City on the TOT side if and when the City arrives at a solution that works. Mayor Pro Tern Faessel expressed support for the two-year budget cycle. In response to Council Member Moreno's inquiry, Mr. Garcia advised this is only a projection and things can change month-to-month and year to year. He confirmed the City would need to dip into reserves if things stay as they are, but staff is always looking for new revenue and savings opportunities in order to shrink the number. In response to Council Member Moreno's inquiry, Ms. Moreno confirmed the projections include the six (6) new hotels coming online. Council Member Moreno requested that future presentations include trends in distributions of resources and expenditures. In response to Council Member Moreno's inquiry, Mr. Zapata confirmed the homeless shelters will go offline within the next two (2) years when the Center of Hope opens. In response to Council Member Moreno's inquiry, Ms. Moreno reported staffing projections account for 12 additional firefighters but staffing is consistent everywhere else for Fiscal Year 21/22. Council Member Moreno would like to see additional detail moving forward for infrastructure and park maintenance needs so budgeting decisions can be made by City Council. In response to Council Member O'Neil, Ms. Moreno confirmed increased CaIPERS payments are included in the budget expenses. She clarified the increase is approximately $7,000,000 per year. In response to Council Member Barnes' inquiry, Mr. Garcia confirmed long-term discretionary expenses like funding staff positions are covered by the General Fund. He further confirmed Restricted Funds cannot be used to hire staff. He also confirmed the workshop is to discuss General Fund monies for future operating budgets with Capital Improvements Projects from Restricted Funds being reviewed in March. Council Member Barnes presented a PowerPoint listing the mid-year budget requests for District 1 including completing a Needs Assessment and Strategic Plan for seniors, requesting grant funds to replace park amenities, partnering with schools for pools, upgrading public signage, staffing of a proactive code enforcement, improve the quality of life for our residents, and improve the property values in Sales Tax. Council Member Kring thanked staff for their hard work making the presentation. She noted she is on the Board of Directors for the Anaheim YMCA and reported they teach every third grader in the City of Anaheim how to swim. Council Member Barnes advised the YMCA has reported they do not City Council Minutes of January 28, 2020 Page 6 of 21 teach every third grader and asked Council Member Kring to inquire about swimming lessons for all third graders. Council Member Moreno expressed his support for a two (2) year budget and feels it is a less onerous process for staff. In response to Council Member Moreno's inquiry, Mr. Zapata confirmed there is no formal process to discuss each Council Member's budget requests but there is a firm budget adoption date. He advised City Council is free to add meetings to discuss budget requests and provide additional information to staff. Council Member Moreno asked Mayor Sidhu to consider adding discussion time to the budget process. Council Member Moreno requested staff continue to work towards increasing resident participation in the budget process. Ms. Moreno confirmed staff will be working towards that goal. Council Member Kring expressed her support for Council Member Moreno's suggestion for additional meetings to discuss budget requests. In response to Council Member Barnes' inquiry, Ms. Moreno confirmed the TOT growth includes an almost 10% increase in Anaheim's hotel supply and feels it is a reasonable expectation. Council Member Barnes expressed concern regarding using projected numbers versus real numbers in the TOT scenario. Mr. Zapata advised every budget is a projection and staff uses various consultants to help with these projections and feels they have historically come very close to the actual numbers. In response to Council Member Barnes' inquiry, Ms. Moreno reported there are approximately 2,400 additional hotel rooms between 2017 and what will come online by the end of the calendar year. She also clarified the 82%-83% range seems to be about our practical capacity for occupancy. She also confirmed the big driver has been the ADR. In response to Council Member Barnes' inquiry, Ms. Moreno confirmed January and February are consistently Anaheim's lowest month for TOT collection and the Convention Center activity definitely helps those months that are not peak time for tourists. Mr. Garcia confirmed there was a slow start to the year but is pleased with the numbers considering where things are today and confirmed Anaheim is above its budget projections in terms of TOT. Ms. Moreno clarified there is a 30-day lag in reporting from hoteliers and further clarified TOT projections are 8.3% over last year. Council Member Barnes requested a Sales Tax report be provided to City Council that breaks down the resort revenues for future budget discussions. In response to Council Member Barnes' inquiry, Ms. Moreno clarified the increase in Property Tax revenue is due to the various development activity. She also clarified if Anaheim did not change anything about how it did business today and all else remained the same, the City would use Reserve Funds to balance the budget. Mr. Garcia clarified the Anaheim First spending plan was not included in the budget projections. In response to Council Member O'Neil's inquiry, Ms. Moreno confirmed hotels whose openings are too far out were not included in the projections. She also confirmed land sales revenue from the Angels Stadium property deal and anticipated development revenue from the Honda Center are also not included in the projections. Council Member O'Neil expressed his support for discussing budget priorities but feels the Anaheim First survey needs to be reviewed before those discussions take place. In response to Mayor Pro Tern Faessel's request, Ms. Moreno clarified Average Daily Rate (ADR) is the average price per hotel room and has grown from $137 per night to $194 per night. She clarified the City receives $775,000 in the General Fund after paying Lease Payment Measurement Revenues (LPMR). She feels the ADR increase is due to the interest of tourists visiting Anaheim. She also clarified the Occupancy Rate is the total rooms sold divided by the total rooms that are available. City Council Minutes of January 28, 2020 Page 7 of 21 In response to Council Member Moreno's inquiry, Ms. Moreno clarified the City would be able to pay its refinanced Resort Bonds by 2027. She reported the City recently paid down $84,000,000 in Resort Bonds which saved the City $25,000,000. In response to Council Member Moreno's inquiry, Mr. Zapata confirmed funds from the Angels Stadium deal would not be available to be used until after closing which would be 2025 at the latest. He further explained those numbers would not be projected until there was some certainty the deal would close. Council Member Moreno suggested the City work on restoring Reserves from the Angels Stadium property revenues when the deal closes. In response to Council Member Moreno's inquiry, Mr. Garcia clarified when a visitor books a room through an online reservation service, the City believes it does not receive its full share of TOT. He clarified there is the possibility the City is receiving its full remission of TOT when visitors use intermediaries such as Expedia. In response to Council Member Moreno's inquiry, Mr. Garcia explained timeshares are different from hotels and an agreement will be put in place in lieu of a TOT Agreement. Ms. Moreno reported current timeshare agreements result in $4,000,000 in revenue to the City today. Council Member Moreno requested a memo from staff explaining the formula used in the agreements for timeshares. Council Member Kring expressed concern that Anaheim is losing a great deal of money during events like NAMM because there are no Four Diamond Hotels except at the Disneyland Resort. Ms. Moreno confirmed this is an area of concern. Council Member Brandman reminded residents and City Council a significant source of revenue could be made from cannabis regulation for its manufacturing, distribution, and retail, pending City Council approval. Mayor Sidhu asked Ms. Moreno to provide residents a brief synopsis of budget projections during Community District Meetings. PUBLIC COMMENTS ON WORKSHOP: Cecil Jordan Corkern, Outreach Homeless Ministries, expressed concern regarding budget projections and would like to see City Council spend money on the safety of homeless residents. Jeanine Robbins expressed concern regarding the fiscal irresponsibility of the City Council majority and expressed concern that Anaheim is heading for bankruptcy. She stated she disagreed with Council Member Moreno's assumption that shelters will close with the opening of the Center of Hope. Council Member Moreno clarified he was hoping the homeless shelters will close when the Center of Hope opens. Mike Robbins expressed concern regarding the City's $550,000,000 net deficit and felt Anaheim may be heading for bankruptcy. He also expressed concern that Anaheim is 80,000 units behind in affordable housing. William Fitzgerald, Home Owners Maintaining Our Environment, expressed concern regarding a $13,200,000 litigation settlement concerning the Anaheim Police Department and encouraged City Council to cover part of the settlement. Mike Chastain, Board member, Downtown Anaheim Senior Center, requested an in-depth Senior Needs Assessment be completed and included in the upcoming budget discussions. Peter Warner encouraged City Council to look at potential revenue sources from Amtrak, Greyhound, and Mega Bus which serve Anaheim and offer vacation packages and hotel deals. City Council Minutes of January 28,2020 Page 8 of 21 Paul Hyek encouraged City Council to work with local bus services to allow homeless seniors to purchase a discounted bus pass for $7 per month. At 5:01 P.M., Mayor Sidhu took a brief recess and reconvened the City Council meeting at 5:13 P.M. INVOCATION: Pastor Kyle Cleveland, Saddleback Church Anaheim FLAG SALUTE: Council Member Trevor O'Neil PRESENTATIONS: Orange County Business Council recognizing the City of Anaheim Planning and Community Development Teams recently awarded for work on Motel Conversion Ordinance Connor Medina, Government Affairs Specialist, Orange County Business Council, presented the Turning Red Tape into Red Carpet Award and The Real Estate Reuse and Revitalization Award to the City of Anaheim Planning and Community Development Teams. Recognizing January 11, 2020, as Human Trafficking Awareness Day Sergeant Juan Reveles, Anaheim Police Department, accepted the proclamation on behalf of the Orange County Human Trafficking Task Force and thanked City Council for the recognition. Recognizing January 20, 2020, as Martin Luther King Jr. Day Dr. Patricia Adelekan accepted the proclamation and thanked City Council for the recognition. Recognizing January 27, 2020, as World Holocaust Remembrance Day Michael Mermelstein and Edie Mermelstein accepted the proclamation on behalf of Mel Mermelstein, founder of the Auschwitz Study Foundation, and thanked City Council for the recognition. Recognizing February 2020, as American Heart Month Recognizing February 2020, as Black History Month Dwayne Shipp, President of the Orange County Heritage Council, thanked City Council for the recognition and invited City Council to attend the 40th Annual Orange County Black History Parade and Cultural Faire on Saturday, February 1, 2020 Recognizing February 2020, as Career and Technical Education Month Terri Giamarino, Superintendent, North Orange County Regional Occupational Program, accepted the proclamation and thanked City Council for the recognition. Gail Kairis, Administrator, Instructional Programs provided a brief overview of the Public Safety Academy for City Council. City Council Minutes of January 28, 2020 Page 9 of 21 ADDITIONS/DELETIONS TO THE AGENDAS: None PUBLIC COMMENTS: Mayor Sidhu noted public speakers wishing to speak on Item No. 14 should submit a public speaker card to be heard during the general public comment portion of the meeting. Agenda Item No. 14 is a continued Public Hearing from the January 14, 2020 Council meeting, where the public comment potion of the hearing was opened and closed. Prior to receipt of public comments, an outline of the rules for public comments and a brief decorum statement was provided by City Clerk Theresa Bass. Cecil Jordan Corkern, Outreach Homeless Ministries, expressed concern regarding the state of Anaheim after the 2012 riots and the Disneyland Resort. Howard Kummerman, Executive Director of the Cypress College Foundation, thanked City Council for its support of Cypress College and invited the City Council and residents to attend the 45th Annual Americana Awards on February 29, 2020, at the Disneyland Hotel, where they will recognize Bill Taormina, Man of the Year, and Cathy Dutton, Anaheim Citizen of the Year, along with other award recipients. William Fitzgerald, Home Owners Maintaining Our Environment, expressed concern regarding Items Nos. 3 and 14 and believed the City Council was looking out for its own self-interests. R. Joshua Collins, Homeless Advocates for Christ, expressed concern regarding recent homeless shelter removal policy and encouraged City Council to investigate the issue. Sandra Collier expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, and shared her concerns with dangerous and unsafe traffic conditions, pollution, and evacuation safety plans with this project. Lawrence Collier expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal; he believed space and traffic conditions were not safe for this project. Bud Schults expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal. He shared Serrano businesses provide close to home personal services, and expressed his concerns for an increase in traffic. Rick Moyer, Director Santiago Geologic Hazard Abatement District (GHAD), expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal because there are landslide dangers. Kaye Dabbs-Moyer, Santiago Geologic Hazard Abatement District, expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, shared her concerns for landslide dangers, and believed this area should remain a commercial zone. William Leming expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal. He believed this project was too large for this parcel and will shut down the Serrano Center utilize by residents. Rick Farano expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and believed this was a bad project with several violations. City Council Minutes of January 28, 2020 Page 10 of 21 Dennis Betschel expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal, stating many owners will lose their businesses and expressing concerns for an evacuation plan. Craig Schill expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal. He stated area is not stable and he preferred to keep the community the way it is. Council Member O'Neil requested a point of privilege regarding Mr. Schill's comments regarding Santiago Geologic Hazard Abatement District. Mayor Sidhu denied the point of privilege. Council Member O'Neil advised Mr. Schill he will meet with him after the City Council meeting. Genny Johnson expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, and stated this area was already congested, an emergency evacuation plan was needed, and shared her concern for the safety of the community. Moses Johnson, Assistant City Attorney, City of Anaheim, expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal. He stated a third story building was not compatible and he believed this was unfair to current residents in the area and it violated the General Plan. Francis Halaka expressed his concern regarding Items Nos. 03 and 14 and encouraged City Council to oppose Item No. 03 and deny the appeal for Item No. 14. He supported low affordable housing, and believed an amendment to the American Disability Act was needed. Jessica Herrera expressed her opposition to Item No. 14 and encouraged City Council to deny the appeal, as this site does not make sense for this project. Wes Jones expressed his support for Item No. 14, encouraged City Council to overturn the Planning Commission's ruling, and stated he was in favor of affordable housing. Sean Vandat expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and spoke in support of local businesses in Serrano and building more recreational areas instead. Mike Robbins expressed his support for Item No. 14 and expressed concern certain members of City Council were looking out for their own self-interests. Jeanine Robbins expressed her support for Item No. 14, encouraged City Council to overturn the Planning Commission's ruling in support of housing, and she believed the masterplan should not be changed. Alex Valentine expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and believed the project was wrong for this area. Ben Stuelke expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and spoke in favor of affordable housing and preserving limited retail space. Jaclyn Kornely expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, spoke in favor of preserving Serrano businesses, and believed this was not a good project for the area. City Council Minutes of January 28,2020 Page 11 of 21 Bridget HoII expressed her opposition to Item No. 14 and encouraged City Council to deny the appeal, as she believed the project does not fit in the small corner of Anaheim Hills, increases traffic, and puts businesses and their employees at risk. Dawn Orlow Townsend, business owner, expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, and spoke in favor of preserving the commercial location. Ted Reynolds, retired Assistant City Attorney, expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and spoke in regards to the dangers and the compatible permits involving the approval of this project. Thomas Fielder, Housing as a Human Right Orange County, expressed his support for Item No. 14 and encouraged City Council to overturn the Planning Commission's ruling, and spoke in favor of approving affordable housing to deal with the homelessness crisis. Elizabeth Hansburg, People for Housing — Orange County, expressed her support for Item No. 14, encouraged City Council to overturn the Planning Commission's ruling, and read an article from the Orange County Register by Columnist Jonathan Lasner concerning the housing crisis. Ilene Corbett expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, and believed changing the zoning would affect negatively businesses. Jeff Walton expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal. He believed this was not the right place or time for this project and was in favor of keeping local businesses. Leila Heydari expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, and spoke in favor in keeping local businesses that her kids use. Dana Cisneros expressed her opposition to Item No. 14, encouraged City Council to deny the appeal, and stated residences can be severely impacted if this project is approved. Steve Campbell expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and stated businesses are an investment that provide services to the community. Paul Hyek expressed his opposition to Item No. 14 and encouraged City Council to deny the appeal due to a lack of bus service. He also encouraged City Council to review bus service provided by Mercy House. Jay Cole, Americana Hotel resident, explained the property was recently purchased by the Housing Authority and expressed concern the City was not allowing open bible studies. Peter Warner expressed his concern with a lack of bus services. Mazatl Tecpatl Tepehyolotzin thanked City Council for approving Indigenous Peoples' Day. Diana Chillin thanked City Council for approving Indigenous Peoples' Day and extended an invitation to Council to participate in the celebration on October 12. City Council Minutes of January 28, 2020 Page 12 of 21 Dr. Patricia Adelekan thanked City Council for approving Indigenous Peoples' Day. She asked City Council for a moment of remembrance for the late Kobe Bryant. Melinda Subia expressed her concern regarding her 911 call that was not responded to by the Anaheim Police Department. Mayor Sidhu asked Police Chief Jorge Cisneros to speak with Ms. Subia regarding her concerns. David Klawe encouraged City Council to look at affordable housing sites throughout Anaheim. He also requested the City Council meeting close in remembrance of all those who died in the recent Kobe Bryant helicopter crash. Steve LaMotte, Executive Officer, Building Industry Association of Orange County, expressed his support for Item No. 14 and encouraged City Council to overturn the Planning Commission's ruling. He spoke in regards to the housing crisis, affordable housing, and the components of this project. Bryan Kaye expressed concern that City Council is not listening to its residents. Kenneth Batiste expressed concern regarding the homeless crisis and felt affordable housing needs to be shared by all of the districts. Sunti Kumjim, President, Building Industry Association of Southern California, expressed his support for Item No. 14 and encouraged City Council to overturn the Planning Commission's ruling. Mr. Kumjim spoke in regards to supporting housing and believed the project lacks political will. George Atalla, People for Housing Orange County, expressed his support for Item No. 14, encouraged City Council to overturn the Planning Commission's ruling, and spoke in favor of affordable housing hoping he can someday take advantage of an opportunity of this type of project. Brandon Clemets expressed his support for Item No. 14, encouraged City Council to overturn the Planning Commission's ruling, and believed moderate-income housing was needed in the community. Camilo Cisneros expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and asked Council to consider the environmental damage. Ugochi Anaebere-Nicholson, Directing Attorney, Public Law Center Santa Ana, encouraged City Council to look at affordable housing sites throughout Anaheim and to not discriminate against the needs of individuals in need. A resident expressed his opposition to Item No. 14, encouraged City Council to deny the appeal, and believed homes have out passed shopping center and business centers for the community. Michael Battaglia expressed his support for Item No. 14 and encouraged City Council to overrule the findings of the Planning Commission. Sharon Ellis, Habitat for Humanity Orange County, expressed her support for Item No. 14, encouraged City Council to overrule the findings of the Planning Commission, and spoke in favor of maintaining affordable housing units. City Council Minutes of January 28, 2020 Page 13 of 21 CITY MANAGER'S UPDATE: None CONSENT CALENDAR: At 7:44 P.M., the consent calendar was considered. Council Member Moreno pulled Item Nos. 11 and 13 for separate discussion and consideration. MOTION: Council Member Kring moved to waive reading of all ordinances and resolutions and to adopt the balance of the consent calendar as presented, in accordance with reports, certifications, and recommendations furnished each City Council member and as listed on the consent calendar, seconded by Council Member O'Neil. ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Faessel, Barnes, Brandman, Kring, Moreno, and O'Neil). NOES — 0. Motion carried. B105 1. Receive and file minutes of the Library Board meeting of December 9, 2019. D117 2. Approve the Investment Portfolio Report for December 2019. D106 3. Approve an increase to the City Council budget for Fiscal Year 19/20, in the amount of $35,000, for the purposes of staffing, constituent work, training opportunities, and supplies. D129 4. Authorize the Fire Chief, or designee, to accept a donation of$1,000 from the Trust of Marvin Kelly to the Fire & Rescue Department and amend the Fiscal Year 19/20 budget by increasing revenues and appropriations in the Fire & Rescue Department budget by $1,000 to purchase safety equipment. D180 5. Accept the bids of ERMCO and ABB c/o Pacific Utilities, in the respective amounts of $244,884 and $335,882, plus applicable tax, for the purchase of various models of transformers per City approved specifications, and authorize the Purchasing Agent to issue Purchase Orders in accordance with Bid #9368. 6. Waive the sealed bid requirement of Council Policy 4.0 and authorize the issuance of a D180 purchase order to Enterprise Fleet Management, in the amount of$43,823.77, to purchase ten vehicles whose leases have recently expired and authorize the Purchasing Agent to sign the necessary paperwork. 7. Award the construction contract to the lowest responsible bidder, Sequel Contractors, Inc., in AGR- the amount of$4,194,071.70, for the construction of Residential Street Improvement Project— 11961 Lindacita, Valdina, and Crescent Parkwood — Group 12; determine that the 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. 8. Approve the Senate Bill 859 Sales Agreement with the Southern California Public Power AGR Authority for the Roseburg Biomass Project for approximately $157,000 annually over five 11894 years and authorize the Public Utilities General Manager, or designee, to execute the agreement and any related agreements and documents, and take the necessary or advisable actions to implement and administer the agreement. City Council Minutes of January 28, 2020 Page 14 of 21 AGR- 9• Approve an agreement with Richard Heath & Associates, Inc., in an annual amount not to 11895 exceed $301,812.86 with a 20% contingency, for the Commercial Energy and Water Efficiency Assessment Program and related services for a three year term with up to two one- year extensions; and authorize the Public Utilities General Manager, or designee, to execute the agreement and any related documents and take the necessary or advisable actions to implement and administer the agreement. AGR- 10. Approve two License Agreements with the County of Orange Registrar of Voters for the 11892; installation, operation, and maintenance of an Official Ballot Drop Box for a five year term at AGR- East Anaheim Community Center(8201 E. Santa Ana Canyon Rd.) and the Anaheim 11893 Regional Transportation Intermodal Center(2626 E. Katella Ave.). R100 12. RESOLUTION NO. 2020-009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting the City of Anaheim Title VI Plan and authorizing its submittal to the California Department of Transportation; and determining this action is exempt from California Environmental Quality Act(CEQA) pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined in Section 15378. END OF CONSENT CALENDAR R100 11. RESOLUTION NO. 2020-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Public Works or designee to submit an application to the California Natural Resources Agency for grant funds for the Green Infrastructure Grant Program for the Central Anaheim Greening Initiative Project and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget accordingly (Sabina Neighborhood Phase III Project; application for up to $1,700,000 of grant funds). Public Works Director Rudy Emami reported the item is to approve filing a grant application to the California Natural Resources Agency under the Green Infrastructure Grant Program for the Central Anaheim Green Infrastructure Initiative— Sabina (also referred to as the Northeast Anaheim Colony District) Neighborhood Phase III Project. He advised the neighborhood needs significant infrastructure improvements and grant funds will be used to install additional curb and gutter improvements and will also make improvements to the sidewalks, driveways, and residential streets. DISCUSSION: Council Member Moreno reported he pulled the item to highlight the work of the Public Works Department. In response to Council Member Moreno's inquiry, Mr. Emami confirmed Gas Tax and Measure M are restricted transportation funds which are used for match to obtain competitive grants to leverage funding further. He further explained that a combination of state, federal, and local funds are used for Public Works projects. In response to Council Member Moreno's inquiry, Mr. Emami reported the project consists of five (5) phases and this funding will allow Public Works to begin the third phase of the project, which would begin in fall 2020. MOTION: Council Member Moreno moved to approve RESOLUTION NO. 2020-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Public Works or designee to submit an application to the California Natural Resources Agency for grant funds for the Green Infrastructure Grant Program for the Central Anaheim Greening Initiative Project and if awarded, authorizing the acceptance of such grant on behalf of the City and amending the budget City Council Minutes of January 28, 2020 Page 15 of 21 accordingly, seconded by Mayor Pro Tern Faessel. . ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Faessel, Barnes, Brandman, Kring, Moreno, and O'Neil). NOES —0. Motion carried. R100 13. RESOLUTION NO. 2020-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Community Services or his designee to submit an application on behalf of the City of Anaheim to the California Department of Parks and Recreation for funding necessary for the Center Greens Project and if awarded, authorizing the acceptance of such grant on behalf of the city and amending the budget accordingly (311 East Broadway; application for up to $1,000,000 of grant funds through the Land and Water Conservation Fund Program). Community Services Director Larry Pasco advised the item is requesting the approval of a resolution to apply for up to $1,000,000 of grant funds through the LWCF Program for the Center Greens Improvement project. He noted that Center Greens is approximately three-acres in size and is located at 311 E. Broadway, adjacent to a residential neighborhood and the Downtown Anaheim Community Center and Youth Center. The park's current amenities are limited and include a dilapidated skate park, aged basketball court, fitness equipment, and large open green space. Mr. Pasco reported staff met with area residents over the last year to develop a Master Plan which includes a fenced skate park, tot lot, youth play area, upgraded basketball court, splash pad, shaded plaza, fencing, walking paths, and landscaping. He anticipated the National Park Service will announce LWCF grant recipients in July 2020. DISCUSSION: Council Member Moreno expressed his excitement for the project and provided a brief history of the area. In response to Council Member Moreno's inquiry, Mr. Pasco clarified LWCF stands for the Land and Water Conservation Fund (LWCF) Federal program and the City has successfully applied for and receive grants from the program in the past. Council Member Moreno thanked Community Services for their work in identifying and obtaining the grant funds. MOTION: Council Member Moreno moved to approve RESOLUTION NO. 2020-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Director of Community Services or his designee to submit an application on behalf of the City of Anaheim to the California Department of Parks and Recreation for funding necessary for the Center Greens Project and if awarded, authorizing the acceptance of such grant on behalf of the city and amending the budget accordingly, seconded by Council Member Kring. . ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Faessel, Barnes, Brandman, Kring, Moreno, and O'Neil). NOES —0. Motion carried. PUBLIC HEARING At 7:59 P.M., Council Member O'Neil recused himself from Public Hearing Item No. 14 due to a conflict of interest due to his public comments at the Planning Commission meeting and position regarding the project and left the dais. City Council Minutes of January 28,2020 Page 16 of 21 C330 14. ENVIRONMENTAL IMPACT REPORT NO. 2018-00351 C410 GENERAL PLAN AMENDMENT NO. 2017-00515 C280 RECLASSIFICATION NO. 2017-00309 C220 CONDITIONAL USE PERMIT NO. 2017-05931 MISCELLANEOUS CASE NO. 2017-00654 VESTING TENTATIVE TRACT MAP NO. 18104 SPECIMEN TREE REMOVAL PERMIT NO. 2018-00006 (DEV2017-00039) OWNER/APPLICANT: Robert H. Kim, 6509 Serrano L.P., 4040 MacArthur Boulevard, Suite 300, Newport Beach, CA 92660 PROJECT LOCATION: This 3.03-acre property is located at 6501 through 6513 Serrano Avenue, generally the northeast corner of Serrano Avenue and Nohl Ranch Road. REQUEST: Approval of the following land use entitlements: (i) amend the General Plan land use designation from Neighborhood Center Commercial to Low-Medium Density Residential; (ii) a Zoning Reclassification from the C-G (General Commercial)to the RM-3 (Multiple-Family Residential) zone; (iii) a conditional use permit to permit the construction of 58 attached, two and three story, single-family residential units with modified development standards; (iv) a Density Bonus and Tier II density bonus incentives to permit affordable units for moderate income occupants; (v) a vesting tentative tract map to establish a 1-lot, 58-unit condominium subdivision; and (vi) a specimen tree removal permit to remove Pepper trees in the Scenic Corridor(SC) Overlay Zone. ENVIRONMENTAL DETERMINATION: The City Council will consider whether to certify Environmental Impact Report No. 2018-00351 (SCH# 2018121031) and adoption of a Mitigation Monitoring and Reporting Program, and Findings of Fact. ACTION TAKEN BY THE PLANNING COMMISSION: Denial of the request for a continuance of the item as requested by the applicant at the public hearing. VOTE: 4-3 (Commissioners Meeks, Mulleady, Vadodaria, and White voted yes to deny a continuance. Chairperson Lieberman and Commissioners Armstrong and Keys voted no). Continuance denied. Denial of the proposed project (PC2019-045). VOTE: 7-0 (Chairperson Lieberman and Commissioners Armstrong, Keys, Meeks, Mulleady, Vadodaria, and White voted yes). Project denied. (Planning Commission meeting of October 28, 2019) (Appealed by 6509 Serrano, LP, represented by Bob Kim) (Continued from City Council meeting of December 17, 2019, Public Hearing Item No. 37). Continued from City Council meetings of December 17, 2019, Public Hearing Item No. 37, and January 14, 2020, Public Hearing Item No. 30;public testimony portion of the public hearing was opened and closed on January 14, 2020. DISCUSSION: In response to Mayor Pro Tern Faessel's inquiry, Public Works Director Rudy Emami reported he did not see any geologic reason the project could impact any one of the landslides. Mayor Pro Tern Faessel inquired about potential City funding of dewatering activities at which time City Attorney Robert Fabela cautioned against the discussion. In response to Mayor Pro Tern Faessel's inquiry, Kelly Buffa, representing the applicant, clarified the Serrano Center is well-occupied but underperforming from a financial standpoint and requested John Shumway, Senior Principal at the Concord Group, who prepared the Market Analysis for the property speak on the financial viability. Mr. Shumway clarified the size of the center from a retail development perspective is small and is out- performed by larger centers which can be validated through traffic counts. In response to Mayor Pro City Council Minutes of January 28, 2020 Page 17 of 21 Tern Faessel's inquiry, Mr. Shumway clarified the Serrano Center had the potential of obtaining $1.70 per square foot in rent after a total teardown and rebuild of the property. He noted the center would need to receive $2.00 per square foot in rent to be financially viable. In response to Council Member Moreno's inquiry, Ms. Buffa clarified the property owner's profit margins are very weak and the only way to revitalize the area would be to completely rebuild the property for commercial development. In response to Council Member Moreno's inquiry, Ms. Buffa reported the center was built in the 1970s and its design is no longer in use commercially. She noted the signage issued is in alignment with its outdated design. She noted the center cannot attract an anchor to help generate foot traffic and synergy in the area. She advised the professional leasing company stated it cannot get rent above $1.35 per square foot at the center. Lastly, she noted opportunities are very limited at the center. In response to Council Member Moreno's inquiry, Ms. Buffa advised she feels the Keyser Marston reports indicate the project is not financially viable. She clarified on Page 4 of the November 8, 2019 report it states "financial feasibility is uncertain as the rents are relatively low". Council Member Brandman reported his office had ex parte communicates with the applicant. Mayor Pro Tem Faessel and Council Members Moreno and Kring reported direct ex parte communication with the applicant. In response to Council Member Kring's inquiry, Ms. Buffa reported the swim club has found a new location. Ms. Buffa advised the landowner has committed up to $150,000 in relocation assistance to current tenants. She is unsure what will happen to the Serrano Center should the project not be approved. In response to Mayor Pro Tern Faessel's inquiry, Planning and Building Director Ted White confirmed the density of 20-25 units per acre is in alignment with projects using this type of product. He also noted there is no state-mandated density for this project. In response to Mayor Pro Tern Faessel's inquiry, Ms. Buffa reported a change in density for the project is possible and the setback could potentially be pushed back. Ms. Buffa advised if the project were reduced to two-story units the project would not be able to support the construction costs due to a loss of units. She also noted three-story products already exist in the area. Mayor Pro Tem Faessel stated the City is under immense pressure to have additional housing and noted District 5 is doing more than its share in terms of housing and shelters in Anaheim. He supports the item but expressed concern regarding the units per acre. In response to Council Member Kring's inquiry, Ms. Buffa advised the project is on a flat-pad and, because Serrano Avenue slopes down, some units are higher than adjacent properties and some are lower. MOTION: Council Member Kring moved to approve the project by five resolutions and introduce one ordinance, deny the appeal, and overturn the decision of the Planning Commission, seconded by Council Member Brandman. DISCUSSION: In response to Mayor Pro Tem Faessel's inquiry, Ms. Buffa advised that 18 units per acre could be achieved but would change the appearance of the project. Mayor Pro Tern Faessel City Council Minutes of January 28, 2020 Page 18 of 21 suggested a friendly amendment to Council Member Kring's motion which would lower the project to 54 units at 18-units per acre. In response to Council Member Kring's inquiry, Ms. Buffa advised they could make it work at 54 units and would still commit to 20% affordable housing and work with Habitat for Humanity to achieve long- term affordability. In response to Mr. Fabela's inquiry, Mr. White advised there would be value in providing City Council direction as to how final plans would be reviewed and approved. In response to Mayor Pro Tem Faessel's inquiry, Mr. White clarified the change in the number of units means the project would not receive a density bonus but would be asking for a density bonus incentive which is the setback along Serrano Avenue and the minimum lot size. Ms. Buffa advised she would be comfortable with the unit change. In response to Council Member Moreno's inquiry, Ms. Buffa advised relocation conversations have not taken place with current tenants as they are awaiting the City Council's decision. She advised those conversations will take place when appropriate, however, they are committed to assisting tenants with tailored solutions that meet each tenant's needs. She also stated realtor support could be included with the relocation assistance they are willing to provide. In response to Council Member Moreno's inquiry, Ms. Buffa advised they are willing to agree to a condition that commits the project to spend $150,000 in relocation assistance. In response to Council Member Moreno's inquiry, Ms. Buffa advised they could not commit providing a lease gap for one (1) year for tenants who relocate to other properties. She also advised they do not feel comfortable providing business subsidies. Lastly, she believes that nine (9) months is sufficient lead time for tenants to relocate. In response to Council Member Moreno's inquiry, Ms. Buffa advised they would be strongly opposed to landslide responsibility in perpetuity because they are outside the boundary of the GHAD. In response to Council Member Moreno's inquiry, Council Member Kring confirmed she was agreeable to include the applicant's agreement to provide up to $150,000 in relocation expenses to current tenants. In response to Council Member Moreno's inquiry, Ms. Buffa advised the applicant would stand by the $150,000 commitment but would not provide lease gap assistance. She further clarified they would not be able to begin construction until tenants have moved or their lease has expired. She also advised the longest lease ends at the beginning of 2022. In response to Council Member Moreno's inquiry, Ms. Buffa advised the applicant would not be able to provide mixed-use retail space in the new development because it does not work for the property mainly due to the parking impacts. She also advised they have spoken with Parks and Recreation regarding using the adjacent lot for school parking and access to the trailhead. She clarified they are not looking for a density bonus and but are looking for development incentives related to minimum lot size and setbacks. In response to Council Member Moreno's request, Fire Chief Pat Russell addressed residents' evacuation concerns. Chief Russell advised there was not an evacuation plan before the Canyon I and II fires and staff has since worked out a robust evacuation and escape plan with the Anaheim Police Department, Orange Police Department, and the California Highway Patrol. He noted large City Council Minutes of January 28, 2020 Page 19 of 21 scale evacuations are very challenging and complex but feels the plan will meet area needs. He also feels adding 100 vehicles would not be too impactful to the evacuation plan and clarified there are new wildland fire cameras which are being monitored by dispatch for early warning to help with early notification. He also noted that residents need to evacuate when they are asked to evacuate. Council Member Moreno reported he emailed Mr. Emami and was advised the project would not impact traffic. He shared the 2019 Regional Housing Needs Assessment (RHNA) numbers which showed Anaheim permitted 6,502 housing units in 2019. He noted Anaheim is still short on Very Low-Income, Low-Income, and Moderate-Income housing units. Council Member Moreno shared a map of current affordable housing in Anaheim and noted the lack of affordable housing projects within parts of Anaheim. He referenced the 39 Commons project and noted there was no affordability in the project. He expressed concern that 20 Colony District residents had their public speaking time reduced from ten minutes to three (3) minutes during the March 5, 2019 meeting. He listed approved housing projects that included little or no affordable housing. He expressed his support for community space and noted those spaces are what build communities. Council Member Moreno proposed an Inclusionary Housing Policy for a future agenda that would require a set amount of affordable housing in all new housing developments and asked City Council for their support. Mayor Sidhu advised Council Member Moreno the appropriate time to ask for a future agenda item would be during Council Communication. He also noted his opposition to the item. Council Member Kring reported Mr. Fabela advised the City cannot mandate Habitat for Humanity to make affordability in perpetuity. She stated she did not feel Serrano Center is a true community center and noted she will be supporting the item. Council Member Moreno responded it is a de facto community space and stands behind its importance for the community. Mayor Sidhu thanked residents and the applicant for their input on the project. He recognizes there needs to be more affordable housing in Anaheim. He feels Anaheim has done its fair share to bring housing to Orange County. He stated he cannot support the project at this time. MOTION: Council Member Kring moved to approve the project by adopting the five resolutions and introducing an ordinance, all as revised, to reflect a maximum of 54 dwelling units with 20% reserved for moderate-income affordable units; authorize the Planning & Building Director, prior to approval of final vesting tentative map, to review and approve final project plans reflecting a maximum of 54 dwelling units with an emphasis on modifications to reduce the number of third-floor units and increasing building setbacks along Serrano Avenue as possible; and prior to the issuance of building permits the applicant shall submit proof to the Planning & Building Director of agreement to provide up to $150,000 in relocation expenses to current tenants, seconded by Council Member Brandman. ROLL CALL VOTE: AYES —4 (Mayor Pro Tern Faessel and Council Members Barnes, Brandman, and Kring); NOES —2 (Mayor Sidhu and Council Member Moreno); ABSTAIN -1 (Council Member O'Neil-recorded conflict/recusal). Motion carried; ordinance introduced. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM denying General Plan Amendment No. 2017-00515 and making certain findings in connection therewith (DEV2017-00039) (6501-6513 Serrano Avenue). OR City Council Minutes of January 28, 2020 Page 20 of 21 RESOLUTION NO. 2020-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM to certify final Environmental Impact Report No. 2018-00351 and adopt findings and Mitigation Monitoring Program No. 359 for the residences at Nohl Ranch and related actions (DEV2017-00039) (6501-6513 Serrano Avenue). Approved, as revised. RESOLUTION NO. 2020-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM amending the General Plan of the City of Anaheim (General Plan Amendment No. 2017-00515) (DEV2017-00039) (6501-6513 Serrano Avenue). Approved, as revised. ORDINANCE NO. 6479 (INTRODUCTION) AN ORDINANCE OF THE CITY OF ANAHEIM amending the Zoning Map referred to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification No. 2017-00309) (DEV2017-00039). Introduced, as revised. RESOLUTION NO. 2020-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and adopting proposed Conditional Use Permit No. 2017-05931 and Miscellaneous No. 2017-00654 (DEV2017-00039) (6501-6513 Serrano Avenue). Approved, as revised. RESOLUTION NO. 2020-014 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving vesting Tentative Tract Map No. 18104 (DEV2017-00039) (6501- 6513 East Serrano Avenue). Approved, as revised. RESOLUTION NO. 2020-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving Specimen Tree Removal Permit No. 2018-00006 (DEV2017-00039) (6501-6513 Serrano Avenue). Council Member O'Neil returned to the dais at 9:49 P.M. PUBLIC COMMENTS (non-agenda items): None COUNCIL COMMUNICATION: Council Member Moreno requested an agenda item regarding an inclusionary housing policy (concurred by Council Member Barnes; request failed for lack of a second concurrence). He acknowledged local reactions to the death of Kobe Bryant, reported Vanessa Bryant and her family attended St. Boniface Catholic Church and requested the meeting adjourn in memory of Kobe Bryant and the other eight victims of the helicopter crash. He announced a meeting with Code Enforcement and the Rose Bush Vine neighborhood on January 29 regarding tenant rights and experiences. Council Member Kring reported her attendance at Visit Anaheim's annual meeting and shared information about their work and partnerships. She also announced their Tourism Workforce Initiative started at Anaheim High School to share career opportunities in the tourism industry. She reported her attendance at a press conference by STC Foundation, announcing their partnership with the Disneyland Lunar New Year celebration, highlighting dance performances. She announced a District 4 Anaheim First meeting at Ball Junior High School on January 29, and free tax preparation programs being offered by the Orange County United Way through April, with more information available at www.ocfreetaxprep.com. She offered condolences to the Bryant family and other families of those who died and asked for the meeting to adjourn in their memory. City Council Minutes of January 28, 2020 Page 21 of 21 Mayor Pro Tern Faessel requested the City Manager to investigate an allegation of 30-day kick-outs at the Salvation Army. He asked staff to initiate a visioning document for State College Boulevard. He requested the meeting adjourn in memory of former Principal Traffic Engineer Taher Jalai and long- time resident Barbara Morales. He reported his attendance at Dr. Kott's memorial service, the Police Department's 150th-anniversary program, the tourism/workforce event at Anaheim High School, and a sustainability awards program with Anaheim Public Utilities at Katella High School with the distribution of 30 Chromebooks Council Member O'Neil expressed his disappointment with the outcome of Item No. 14 and committed to ensuring all conditions are met by the developer and to do what he can to mitigate concerns. He also stated he would look at alternative uses for the nearby City-owned vacant site to create a community benefit. Council Member Barnes reported her attendance at a sustainability ceremony at Baden-Powell School with Anaheim Public Utilities, the Police Department's 150th-anniversary event showing an auditorium named after former Chief Jimmie Kennedy, the League of California Cities' policy committee meeting regarding housing in Sacramento, and the Miss Anaheim scholarship competition. She requested recognitions for students, Monce Robs, Jonathan Maldonado, Andrew Arande, Louis Laparra, and Kyle Chen, who helped a senior citizen with a stalled car at the intersection of Broadway and Magnolia Avenue, concurred by Council Members Brandman and O'Neil. She requested a review of impact fees to fund capital projects and related items to which City Manager Chris Zapata responded staff would begin preliminary work on several Council requests and come back for further direction. Council Member Brandman announced a Lunar New Year/Chinese New Year party at the Euclid Library on January 30 and wished all a Happy New Year. He also announced a 3-4-5 Jump 'n Jive Storytime at Euclid Library on January 31. Mayor Sidhu disclosed, under AB1234, that the City paid for his event registration and hotel expenses for the U.S. Conference of Mayors in Washington, DC where he advocated for long-term support for the Salvation Army Center of Hope, facility request for Project-Based Section 8 project vouchers, and low-income housing tax credits. He announced the City's Honda Center partners lit ARTIC purple and yellow in honor of Kobe Bryant and requested prayers for Esther Wallace due to her hospitalization. ADJOURNMENT: At 10:09 P.M. Mayor Sidhu adjourned the January 28, 2020 meeting in memory of the victims of a helicopter crash: Kobe Bryant, Gianna Bryant, John Altobelli, Keri Altobelli, Alyssa Altobelli, Sarah Chester, Payton Chester, Christina Mauser, and Ara Zobayan; Taher Jalai, and Barbara Morales. Resnectfully submitted, - esa ass, CMC- City MSCity Clerk