2008/02/26ANAHEIM CITY COUNCIL
REGULAR MEETING OF
FEBRUARY 26, 2008
Mayor Pringle called the regular meeting of February 26, 2008 to order at 3:16 P.M. in
the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard
A copy of the agenda for the Anaheim City Council meeting was posted on February 22,
2008 on the kiosk outside City Hall.
PRESENT: Mayor Curt Pringle and Council Members: Lorri Galloway, Bob Hernandez,
Lucille Kring and Harry Sidhu.
STAFF PRESENT: City Manager Dave Morgan, City Attorney Jack White, and City
Clerk Linda Andal.
WORKSHOP - HOUSING ELEMENT UPDATE:
Introduced by Planning Director Sheri Vander Dussen, David Barquist of RBF
Consulting, informed Council on the progress in updating the City's Housing Element.
He pointed out the Housing Element had specific legal requirements to meet the state's
goal of providing decent, suitable housing for California residents and without
certification from the state, a city could be exposed to legal challenges or become
ineligible for the various housing grant programs available.
He remarked the Housing Element was a representation of the City's vision for the
community in the long term, and the Regional Housing Needs Assessment (RHNA) was
an important component of that update. Southern California Association of
Governments (SCAG) determined growth needs through this regional housing needs
assessment process and defined those needs for the next planning period, 2006 to
2014. A chart which identified the 2006-2014 RHNA allocation for four income
categories was provided to Council. Mr. Barquist pointed out the growth needs for
Anaheim over that period was 9,500 units. He also mentioned there was new legislation
which required jurisdictions to look at extremely low income, or those individuals earning
30 percent or less of median family income. This would translate to 50 .percent of the
City's very low income required for 1,971 units which would be assigned to extremely
low income households. He added based on Anaheim's current policies, the projects
that had been developed or were in the planning stages through the affordable housing
overlay would far exceed the need identified by the RHNA process. Another chart
presented Anaheim's past RHNA allocations for the period 1998 - 2005. During the last
Housing Element phase, Mr. Barquist stated Anaheim had exceeded its goals by 30
percent, which he emphasized, was an impressive accomplishment especially compared
to the rest of the county.
Discussion was held on the existing housing needs which had been identified. Mr.
Barquist remarked approximately 20 percent of Anaheim's total household population
spent more than 30 percent of their income on housing. Another 24,000 households
were considered to be living in overcrowded conditions, 1,800 households lived in
February 26, 2008
Page 2 of 11
substandard units, 2,800 households lived in level 3 defined neighborhoods and 561
households lived in level 4 neighborhoods. Mayor Pringle asked how substandard was
defined and if there was a list of the 1,800 substandard homes. Mr. Barquist replied
substandard conditions referred to inadequate facilities for plumbing or other life and
safety issues and the 1,800 households were derived from census data; no list was
available for distribution during the meeting. Jonathan Borrego, Planning Department,
remarked the level 3 and 4 households were assessments based on the City's
neighborhood improvement programs and identified those areas for Council. Mr.
Barquist interjected that the numbers presented were not a cumulative total as they
overlapped. For example, 90 percent of the units in level 4 households would also be
considered substandard.
The update process entailed five phases; Phase 1 reviewed existing conditions and set
the framework for understanding the issues, Phase 2 reflected the public participation
program, Phase 3 referred to preparation of the draft document and Phase 4 referenced
.the environmental analysis required. The final phase was adoption of the Housing
Element. He explained the ad hoc committee appointed by Council would make its final
recommendation on the draft and the document would be considered by the Planning
Commission and the City Council prior to submittal to the state for their review. The
deadline for adoption of housing elements was June 30, 2008.
Mr. Barquist outlined in detail the community outreach efforts which had taken place. He
pointed out the ad hoc committee had begun discussing potential policy direction in
January and February of 2008. One of t he overarching themes revealed the idea of
quality of fife, the concept of creating a community and having a place to be in Anaheim.
Council Member Galloway, referencing the new legis{ation which placed attention on the
extremely low income category, asked what that annual figure would be. The response
given was $20,800 annually for an individual working $10 per hour, 40 hours per week.
Mayor Pringle remarked if resources were used to buy down the affordability issue, then
those limited resources would be less available for other categories. Council Member
Galloway concurred but remarked this would address those single parents having a
difficult time making ends meet. Council Member Kring asked how those numbers were
derived. Mr. Barquist responded it was based on population, growth, economics, and
regional transportation.
ADDITIONS/DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
At 3:53 P.M., Mayor Pringle recessed to closed session for the following items:
CLOSED SESSION:
1. LIABILITY CLAIMS
Claimants: Jean Margaret Gandy and Carole Gandy
2. LIABILITY CLAIMS
Claimants: Catherine Whitehouse, Christopher Whitehouse, Cornelia Cline,
Christopher Whitehouse, Jr. and Desirae Whitehouse
February 26, 2008
Page 3 of 11
3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Approximately 50.20 acres generally northerly of Angel Stadium of
Anaheim in the Platinum Triangle Stadium District, 2000 Gene Autry Way,
Anaheim, California
Agency negotiator: Dave Morgan, Joel Fick
Negotiating parties: City of Anaheim and Archstone-Smith Operating Trust
Under negotiation: price and terms
At 5:13 P.M., Mayor Pringle reconvened the Anaheim City Council meeting.
Invocation: Dr. P. Wayne Palmer, Freedom Bible Church
Flaa Salute: Mayor Pro Tem Bob Hernandez
Acceptance of Other Recognitions (To be presented at a later date):
Recognizing Larry Zabel, Western and Wildlife Artist
Recognizing Vic Dominguez on his service to the Anaheim Police
Activities League -Kathy Dutton, President of PAL, introduced
founding chairman Vic Dominguez who was recognized for his
service on behalf of the non-profit youth league.
ADDITIONS/DELETIONS (to any of the agendas). Staff requested Item No. 19 be
withdrawn to allow for the preparation of additional information.
PUBLIC COMMENTS:
Reid Royalty, Orange County Taxpayer's Association, requested proposed Ordinance
No. 6098 articulated in Item No. 25 be introduced and placed on the next agenda for
adoption.
Craig Ferrell, resident, referencing Item No. 25, also supported adoption of the SOAR
Initiative through Council action.
Jim Adams, LA/OC Building & Construction Trade Council, lent his support to Item No.
25 and asked Council to adopt the initiative to protect the Resort area.
Carl Ridala, resident, supported adoption of the SOAR Initiative.
Gloria Mejai, resident, supported Council adoption of the SOAR Initiative.
Taylor Ray and Taisha Sweet, Orange County Links Debutante Leadership program
spoke of the benefits of the Debutante program and the upcoming ball to be held at the
Anaheim Marriott.
Stan Polowski, resident, supported Council adoption of the SOAR Initiative.
Bill LaMarr, resident, supported Council adoption of the SOAR Initiative.
February 26, 2008
Page 4 of 11
Bob Ball, resident, urged Council to preserve the resort district as was originally intended
by adopting the SOAR Initiative.
Jimmy Kennedy, resident, remarked the cost of a ballot initiative would be $250,000 and
urged Council to adopt the SOAR Initiative and save those expenditures.
Maryann Decker, resident, supported adoption of the SOAR Initiative.
Larry Slagle, Visitor & Convention Bureau, urged Council to adopt the SOAR Initiative
stating this action was an opportunity to protect tax revenues for City services and
infrastructure and opportunity to fulfill the vision of the resort district.
Tom Daly, resident, urged Council adopt the SOAR Initiative.
Kim Wright, resident, pointed out the students speaking on behalf of the Debutantes
organization were seniors at Canyon High and residents of Anaheim Hills.
Todd Ament, Chamber of Commerce, spoke as co-chair of the SOAR Coalition,
remarking on the numbers of residents supporting this initiative.
Eric Altman, OCCORD, indicated the last year was remarkable for the degree of public
participation on this issue and he believed letting the residents decide by ballot was the
best way to go forward.
Carolyn Carpenter, Anaheim YMCA, announced the YMCA would be holding its 45th
annual Good Friday breakfast on March 21St at the Marriott hotel at 7:15 a.m.
Caesar Covarrubias, Kennedy Commission, addressed his comments to the SOAR
Initiative.
Item No. 25 was considered by Council after fhe public comment session.
25. This is a policy decision relating to the SOAR Initiative.
E127
ORDINANCE NO. 6098 CITY COUNCIL OF THE CITY OF ANAHEIM,
CALIFORNIA, adopting an initiative measure pursuant to the provisions of
Section 1303 of the Anaheim City Charter and Section 9214 of the Elections
Code of the State of California generally prohibiting residential development
within the Anaheim Resort without environmental and economic analyses, City
Council approval, and City voter approval at a City election.
Mayor Pringle introduced Ordinance Number 6098. Council Member Galloway related
background information on decisions she had made regarding this issue and discussions
she had held with opponents and proponents of the initiative. She ended her statement
by saying that so many thousands of people had asked for the opportunity to vote on this
issue and it was her belief that Council adoption of the ordinance would take away that
opportunity.
February 26, 2008
Page 5 of 11
After discussion with the City Attorney and with the consent of Council, Mayor Pringle
requested Item No's. 1, 3 and 8 be considered simultaneously as they were related.
8. Approve revisions to the Homebuyer Downpayment Assistance Programs:
axAi~~ HOME Investment Partnerships, American Dream Downpayment Initiative and
Building Equity and Growth in Neighborhoods (Related to Agency Item #01 and
Housing Item #03).
Bertha Chavoya, Housing Manager, remarked the City currently provided for several
individual homebuyer loan programs approved under the Housing Authority, the
Redevelopment Agency and the City specifically designated for low and moderate
income households. Although the current market conditions showed a decline in
housing values, she stated the appreciation of homes in Orange County exceeded the
increase of the area median wage for low and moderate income households and staff
was recommending revisions to the current maximum program loan amounts.
Specifically, the $75,000 for low income households and $65,000 for moderate income
households would be increased to $125,000 and $100,000 respectively, She added
staff was also recommending homebuyers be allowed to participate in the secondary
mortgage financing market which provided below market interest rates and more
favorable terms. The third revision, she stated, would create some consistency in the
affordability resale restrictions in specific projects. She explained that with these
proposed changes, staff felt better able to assist more families to purchase affordable
housing in the City and within specific projects where there was a development and
disposition agreement (DDA) with the developer.
Mayor Pringle was supportive of the increased down payment assistance and with
participation in the secondary mortgage market. He expressed concern over the
revision addressing affordable resale restrictions. He remarked that with many of the
City's affordable housing projects, a 55-year deed restriction was in place which meant if
the City assisted a homebuyer with moving into a home, when that property was sold
and there was a net equity value resulting from that sale, the proceeds must be split with
the City. This revision, he pointed out, would require a deed restriction for any property
with a DDA agreement even if a homebuyer purchased the home at market rate and was
provided down payment assistance through the City. He expressed concern that this
revision would impede rather than help families get into housing and recommended
approving the first two revisions while allowing for more research on the deed restriction
issue; staff concurred. Mayor Pringle also suggested having an annual review of the
maximum loan limits should the housing market turn around,
Council Member Kring concurred in the annual review, and remarked she felt the equity
split between the homeowner and the City was fair.
Mayor Pringle moved to approve the maximum aggregate loan amount increases,
subject to annual review, to approve the secondary trust deed revision and to continue to
a later date the DDA resale restriction revision; seconded by Council Member Kring.
Roll Call vote: Ayes - 5; Mayor Pringle, Council Members: Galloway, Hernandez, Kring
and Sidhu. Noes - 0. Motion Carried.
CONSENT CALENDAR: With the consent of Council, Mayor Pringle continued Item No.
15 to the March 4, 2008 meeting. Council Member. Hernandez requested Item No's. 16
February 26, 2008
Page 6 of 11
and 17 be removed from the consent calendar for further discussion. Council Member
Galloway moved to waive reading in full of all ordinances and resolutions and to adopt
the balance of the consent calendar in accordance with the reports, certifications and
recommendations furnished each council member and as listed on the Consent
Calendar, seconded by Council Member Kring. Roll Call vote: Ayes - 5; Mayor Pringle,
Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried
5. Reject certain claims filed against the City.
ciis
6. Approve the Investment Portfolio Report for January 2008.
nii~
7. Increase the FY 07/08 Convention, Sports & Entertainment budget by
D106 $65,308.98 to further support City activities from monies raised through
Sesquicentennial sponsorships and merchandise sold during FY 07/08.
9. Authorize the Purchasing Agent to issue purchase orders, in the amount of
nigo $277,280 (plus applicable taxes and fees), for vehicles for the Public Utilities
Department and Fire Department.
10. Award the contract to the lowest responsible bidder, Haitbrink Asphalt Paving,
sioa Inc., in the amount of $122,382.49, for the Mohler Drive Street Improvements
Project, from Santa Ana Canyon Road to 250' South of Santa Ana Canyon Road
and authorize the Finance Director to execute the Escrow Agreement pertaining
to contract retentions.
11. Approve Contract Change Order No. 1 with Sialic Contractors Corp., dba
4313.0.01 Shawnan Inc., in the amount of $269,000, for additional demolition and removal
work for the State College Boulevard Median and Landscape Improvements
Project.
12. Approve an agreement with RDK Consulting, Inc., in the amount of $365,047, for
sios project representative services during the design and construction of Fire Station
No. 12, and increase the Department of Public Works' expenditure appropriation
for FY 2007/2008 by $365,047.
13. Approve an agreement with Spot Focus, LLC granting Spot Focus the exclusive
as6~.A right to install, sell advertising, program, and maintain the digital displays in the
Anaheim Convention Center's main lobby and 2nd and 3rd floor levels; atwo-
yearexclusive right to sell advertising sponsorship packages for the exhibit halls
and ballrooms; and anon-exclusive right to sell fixed interior and exterior
advertising.
14. Approve and authorize the Chief of Pofice to execute the Lease Addendum with
4374.0.02 Mobile Modular Management Corporation, in the rental rate of $752.20, to extend
the lease of the Police Activities League Center and authorize the Chief to
execute any future lease agreements with Mobile Modular under the same terms
and conditions with the exception of the lease amount which shall not exceed
10% of the rental rate for the year immediately preceding such future lease.
February 26, 2008
Page7of11
15. Approve and authorize the Public Utilities General Manager to execute a
cons-n~ea Consulting Services Agreement with the Delphi Group, in an amount not to
exceed $75,000, for a Business Process Management Study to map frequently
used customer processes.
18. Approve and authorize the Public Utilities General Manager to execute the First
3478.1 Amendment to the Ormat Geothermal Power Sales Agreement with Southern
California Public Power Authority for additional geothermal electrical capacity.
19. Staff requests this item be withdrawn to prepare additional information.
RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM adopting a policy to fulfill the post employment benefit
obligations of the City of Anaheim (continued from the meetings of January 29,
2008, Item #30 and February 12, 2008, Item #15).
Withdrawn by staff fo prepare additional information.
20. RESOLUTION NO. 2008-013 A RESOLUTION OF THE CITY COUNCIL
nis2 OF THE CITY OF ANAHEIM authorizing the destruction of certain City records
more than two years old (Public Utilities Department}.
21. RESOLUTION NO. 2008-014 A RESOLUTION OF THE CITY COUNCIL
nips OF THE CITY OF ANAHEIM authorizing the Public Works Director or her
designee to submit a grant application on behalf of the City of Anaheim to the
County of Orange, for grant funding for the Regional Recycling and Waste
Diversion Programs and recognizing the County of Orange for its regional
leadership in solid waste management, and if awarded, authorizing the
acceptance of such grant on behalf of the City and amending the budget for
Fiscal Year 2008-09 accordingly.
22. RESOLUTION NO. 2008-015 A RESOLUTION OF THE CITY COUNCIL
C430 OF THE CITY OF ANAHEIM adopting the "Master Plan of Storm Drainage for
Stanton Channel Tributary Area November 2007."
23. ORDINANCE NO. 6097 (INTRODUCTION) AN ORDINANCE OF THE
c2so CITY COUNCIL OF THE CITY OF ANAHEIM amending the zoning map referred
to in Title 18 of the Anaheim Municipal Code relating to zoning (Reclassification
No. 2007-00212).
24. Approve minutes of the Council meeting held February 12, 2008.
February 26, 2008
Page 8 of 11
END OF CONSENT CALENDAR
With the consent of Council, Mayor Pringle requested Item No's 16 and 17 be
considered concurrently.
16. Approve and authorize the Public Utilities General Manager to execute a 3-year
sio6 Agreement with KUBRA America West, Inc., in an amount not to exceed $78,000
per year, to provide electronic presentment and payment of utility bill services.
17. Approve and authorize the Public Utilities General Manager to execute an
4532.A agreement with Enspiria Solutions, Inc., in an amount not to exceed $634,140,
for project management oversight of the Meter Data Management System
implementation and deployment.
Marcie Edwards, Public Utilities General Manager, reported Item No. 16 was a request
for approval for a new electronic bill presentment vendor. She indicated the City had
been doing on-line bill presentation and bill pay for several years and the existing vendor
was no longer able to satisfy expanded services requested by the City. She indicated a
request for proposal was sent to a variety of vendors that provided this service and
KUBRA America West had been selected and was recommended for approval of the
contract.
Item No. 17 was broader in scope, Ms. Edwards explained. Earlier Council had asked
the Department to investigate and move forward with automated billing solutions where
meters were installed at customers' homes which automatically transmitted information
to the Department to provide for a variety of linkups with energy management solutions
which could be installed in the home. The Enspiria Solutions agreement related to smart
grid technology wherein customers worked in concert with the power system to help
manage their own consumption.
Ms. Edwards pointed out at the end of last year, staff had brought to Council an a-meter
proposal, which referred to the centralized hub where all meters would connect and the
City would then begin to buy the technology and the physical infrastructure for the sites.
Together, she remarked, this was roughly a $40 million program spread out over a
number of years. The contract with Enspiria would provide project management
services to insure that that hub component of e-meter, which was the most critical
component to implement this program successfully, was installed correctly. She added
this contract would insure the risk to Anaheim ratepayers of an inappropriate roll out of
such a huge system was minimized.
Council Member Hernandez had pulled these items from the consent calendar to
highlight the sophistication of the City's energy system and its goal to do everything as
efficiently and cost effective as possible and moved to approve Item No's. 16 and 17,
seconded by Council Member Galloway. Roll Call vote: Ayes - 5; Mayor Pringle,
Council Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried
February 26, 2008
Page 9 of 11
PUBLIC HEARINGS:
26. CEQA EXEMPTION PER CEQA GUIDELINES SECTION 15061(b)(3)
ca2o (GENERAL EXEMPTION)
AMENDMENT TO THE ANAHEIM RESORT SPECIFIC PLAN NO. 92-2
(SPN2007-00052)
LOCATION: Approximately 26.7 acres located south of Katella Avenue and
east of Haster Street (Assessor Parcel Nos. 137-321-14, 137-321-37, 137-321-
40, 137-321-48, 137-321-52, 137-321-61, 137-321-62, 137-321-85, 137-321-94,
and 137-321-95).
This is a City Council initiated request to amend the Anaheim Resort Specific
Plan by repealing development standards related to affordable housing that are
included in the Anaheim Resort Residential Overlay and previously approved by
Amendment No. 8 to the Anaheim Resort Specific Plan (SPN2006-00044).
ACTION TAKEN BY THE PLANNING COMMISSION:
Approved CEQA Exemption per CEQA Guidelines Section 15061(6)(3)
(General Exemption) (Vote: 7-0).
Recommended City Council Approval of Amendment to the Anaheim Resort
Specific Plan No. 92-2 (SPN2007-00052) (PC2008-9).
(Planning Commission meeting of January 23, 2008).
MOTION: K/S CEQA EXEMPTION PER CEQA GUIDELINES SECTION
15061 (b)(3) (GENERAL EXEMPTION)
RESOLUTION NO. 2008-016 A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM finding and determining that the
proposed action by the City Council approving Specific Plan Amendment No.
2007-00052 repealing previously-approved Amendment No. 8 to the Anaheim
Resort Specific Plan, does not constitute a "Project" subject to, and within the
meaning of, the California Environmental Quality Act ("CEQA"), and that said
proposed action is exempt from CEQA, and that no further environmental review
is therefore required.
ORDINANCE NO. 6090 (INTRODUCTION) AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF ANAHEIM repealing Amendment No. 8 to the
Anaheim Resort Plan No. 92-2, including amending Ordinance No. 5453, as
previously amended, and amending the zoning and development standards set
forth in Chapter 18.116 of Title 18 of the Anaheim Municipal Code (Specific Plan
Amendment No. 2007-00052); and repealing Ordinance No. 6058.
Jack White, City Attorney, announced that on November 27, 2007, Council took action
to repeal the general plan amendment that related to the then pending referendum
concerning all residential development on the SunCal site. With the cancellation of the
election, this technical housekeeping item was necessary to change the Anaheim
Resort Specific Plan and have it conform with the general plan and to remove the
provision that would otherwise allow a fully residential project on the SunCal project.
Mayor Pringle opened the public hearing and receiving no public comments, closed the
hearing.
February 26, 2008
Page 10 of 11
Council Member Kring moved to approve the CEQA exemption, to approve Resolution
No. 2008-016 of the City finding and determining that the proposed action by the
Council approving Specific Plan Amendment No. 2007-00052 repealing previously-
approved Amendment No. 8 to the Anaheim Resort Specific Plan, does not constitute a
"Project" subject to and within the meaning of CEQA and no further environmental
review is required and to introduce Ordinance No. 6090 repealing Amendment No. 8 to
the Anaheim Resort Plan No. 92-2, including amending Ordinance No. 5453, as
previously amended, and amending the zoning and development standards set forth in
Chapter 18.116 of Title 18 of the Anaheim Municipal Code, seconded by Council
Member Sidhu. Roll Call vote: Ayes - 4; Mayor Pringle, Council Members: Hernandez,
Kring and Sidhu. Noes - 1: Council Member Galloway. Motion Carried
REPORT ON CLOSED SESSION: None
COUNCIL COMMUNICATIONS:
Mayor Pringle thanked staff for coordinating the visit of U.S. Secretary of Transportation
Mary Peters. He reported on his discussions relating to ARTIC and Mrs. Peters' interest
in public private partnerships. He also shared the impact of goods movement on
Anaheim and north Orange County and how important grade separation issues were to
the residents.
Council Member Hernandez added that he had discussed with Mrs. Peters' aide the
importance of Anaheim's transportation needs and how the City was addressing those
needs. They had discussed the fact that the ARTIC project represented the only high
rail speed system in the country, other than the one between Washington, DC and New
York and that he would be working to move the ARTIC project forward. Council Member
Hernandez briefly highlighted the Orange County Link organization and its benefits and
discussed the proposed Orange County Sanitation sewer rate increase.
Council Member Galloway announced the success of the grand openings of McCormick
& Schmick's Grille and PF Chang's China Bistro at the Anaheim Garden Walk and
encouraged the community to enjoy their fare.
Council Member Kring congratulated Anaheim's volunteers recognized at a volunteer
dinner last week. She pointed out their contribution to the City amounted to over $1
million in benefits. She announced the rededication of the Little Arena celebrating its
40th anniversary and the Cypress College Americana Awards banquet honoring Frank
Garcia. Council Member Kring also requested staff provide information on
Westminster's new shopping cart ordinance. Mayor Pringle recommended details on the
City's existing shopping cart ordinance be included in a memo along with the
comparison of Westminster's new ordinance.
Council Member Sidhu confirmed Orange County Sanitation Districts would vote on the
proposed sewer rate increase on February 27th. Mayor Pringle remarked if action was
delayed on the proposed sewer rate increase, a public discussion on the matter could
then be scheduled.
February 26, 2008
Page 11 of 11
Council Member Sidhu also requested the City Manager provide Council with briefings
related to any media topic, referencing the Convention Center. He also announced
applications were being accepted for the 2008 Youth in Government Day, the
Homeowner Preservation workshop would be held at the Convention Center and the
Anaheim Beautiful luncheon had been scheduled for March 5'h
ADJOURNMENT:
With the consent of Council, Mayor Pringle adjourned the February 26, 2008 council
meeting at 6:48 p.m.
Respectfully submitted,
Linda N. Andal, City Clerk